Copy of Final Report Anurag

8/12/2019 Copy of Final Report Anurag

1/47

A REPORT

ON

ANALYSIS ABOUT CHANNEL

FINANCING OF ESCORTS AGRI-

MACHINERY

BY

ANURAG KALRA

ENROLLMENT NO. 11BSP0151


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A REPORT

ON

ANALYSIS ABOUT CHANNEL

FINANCING OF ESCORTS AGRI-

MACHINERY

ByANURAG KALRA

ENROLLMENT NO- 11BSP0151

ESCORTS LTD

A repor !"#$%e& %' p(r%() *")*%))$e' o*

+e re,"%re$e'! o* PGPM Pror($$e o*

IBS M"$#(%

SUBMITTED TO

FACULTY GUIDE COMPANY GUIDE

Pro*. SURESH SURALKAR MR I/AY NEHRA

F(")y $e$#er ( Te($ M('(er

IBS- M"$#(% F%'('e


3/47

E!or! L&.


4/47

ACKNOWLEDGEMENT

I o")& )%2e o r(e*"))y (2'o)e&e +e o'r%#"%o' o* ()) +e peop)e +o oo2 (%3e p(r

('& pro3%&e& 3()"(#)e !"ppor o $e &"r%' +e o"r!e o* +%! pro4e. To #e%' %+ I o")&

)%2e o o**er $y !%'ere +('2! o 6Mr.%4(y Ne+r( Te($ M('(er-F%'('e 7 *or %3%' $e +e

oppor"'%y o &o $y !"$$er r(%'%' ( 6E!or! Ar% M(+%'ery7. 89%+o" +%!:+er "%&('e

!"ppor ('& 3()"(#)e !"e!%o'! &"r%' +e re!e(r+ +e pro4e o")& 'o +(3e #ee'

(o$p)%!+e&.

My +e(r*e) r(%"&e ()!o oe! o +e e'%re 6F%'('e7 e($ ; Mr. T(r('4ee !%'+ Mr A!+o2

B+e) Mr A"ro#%'&o B%!(!He(& Co$$er%() F%'('e M! S"'pree K("r< %' E!or! Ar%

M(+%'ery C+(''e) F%'('e Dep(r$e' *or +e%r o-oper(%o' ('& %))%''e!! o ('!er ())

$y ,"er%e! ('& pro3%&e 3()"(#)e (!!%!('e.

I ()!o !%'ere)y +('2 6Pro* S"re!+ S"r()2(r7 $y *(")y $e'or ( 6IBS MUMBAI7 +o

pro3%&e& 3()"(#)e !"e!%o'! !+(re& +%!:+er r%+ orpor(e e=per%e'e ('& +e)pe& $e !r%p

+e e=( re,"%!%e!.

L(! #" 'o )e(! I o")& )%2e o +('2 ()) De()er! *or !+(r%' +e%r e=per%e'e ('& %3%' +e%r

3()"(#)e %$e o $e &"r%' +e o"r!e o* $y pro4e.


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TABLE OF CONTENTS

E=e"%3e S"$$(ry

C+(per-1> I'ro&"%o'-

1.1 I'&"!ry O3er3%e

1.1.1 I'&%(' Tr(or I'&"!ry

1.? Co$p('y O3er3%e

1.?.1 E!or! L&.

1.?.? Ar%-M(+%'ery Gro"p

1.?.@ H%!ory o* Ar%-M(+%'ery Gro"p

1.?. Pro&"! o* E!or! Ar%-M(%'ery Gro"p

1.?.5 Co$p(r%!o' o* E!or! %+ +e M(4or Tr(or M('"*("re!

C+(per-?> Pro4e Pro*%)e-

?.1 O#4e%3e! o* +e S"&y

?.? Me+o&o)oy

?.@ C+(''e) F%'('%'

[email protected] Me('%'

?.@.? Be'e*%! o* +(''e) *%'('%'

?.@.@ Proe!! o* +(''e) *%'('%'

?.@. Sope o* +(''e) *%'('%'

[email protected] C+())e'e! *or C+(''e) *%'('%'

?..@. C+(''e) *%'('e ro)e %' *%'('%'

?.@. C+(''e) *%'('e o* E!or! Ar%-M(+%'ery Gro"p

C+(per-@> O#!er3(%o'! ('& A'()y!%!-

@.1 A'()y!%! o* 3(r%o"! &e()er!


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C+(per-> F%'&%'!

C+(per-5> Reo$$e'&(%o'!

A''e="re


7/47

A

EXECUTIV

E


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EXECUTIVE SUMMARY

E!or! L&. %! +e +o)&%' o$p('y o* +e E!or! Gro"p. Po! re!r""r%' Ar% - $(+%'ery

or r(or! +(3e #eo$e +e *o"! (re( o* oper(%o'!. O+er #"!%'e!! +( %! o- +ee)er! ITTe)eo$ o'!r"%o' e,"%p$e' (re o'ro))e& +ro"+ !"#!%&%(r%e! ('& 4o%' 3e'"re. Po!%%3e

o** o* %! p%!o'! #"!%'e!! o ( 4o%' 3e'"re %+ ( *ore%' o))(#or(or E!or! %! *o"!%' o' %!

8ore o$pee'e o* r(or!. E!or! +(3e !ro' +('&! %' +o"!e e'%'eer%' !2%))! ( %&e

&%!r%#"%o':!er3%e 'eor2 ('& #r('& *r('+%!e.

C+(''e) F%'('e %! (' %''o3(%3e op%o' *or e=e'&%' or2%' (p%() *%'('e o &e()er! +o

+(3e #"!%'e!! re)(%o'!+%p! %+ )(re o$p('%e!. C+(''e) F%'('%' %! +e $e+('%!$ +ro"+

+%+ ( *%'('%() %'!%"%o' $ee! +e 3(r%o"! *"'&! re)(e& re,"%re$e'! ()o' +e S"pp)y

C+(%' ( +e !"pp)%er! e'&. T+%! +ere#y +e)p! +e !"pp)%er %' !"!(%'%' ( !e($)e!! #"!%'e!!

*)o ('& (3o%&%' 9or2%' C(p%() re)(e& &%**%")%e!. C+(''e) F%'('e "!"())y o3er!&%!o"'%' o* Tr(&e B%))! &r(' #y ( o$p('y ('& (epe& #y %! &e()er! &%!r%#"or! or

C+(''e) P(r'er!. I ()!o pro3%&e! o3er&r(* *(%)%y o +e &e()er! or &%!r%#"or! +o +(3e

#"!%'e!! &e()%'! %+ )(re Corpor(e.


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INTRODUC

INTRODUC


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1.1 INDUSTRY OVERVIEW

I'&%(! (r%")"r() !eor %! o'e o* +e $o! %$por(' o$po'e' o* +e o"'ry! eo'o$y

()+o"+ %! !+(re %' +e GDP +(! &ere(!e& !"#!('%())y o3er +e ye(r!. A#o" 0 o* I'&%(!

pop")(%o' %! &epe'&e' o' (r%")"re *or %! !"r3%3(). Per*or$('e o* +e (r%")"r() !eor

o'%'"e! o +(3e ( r"%() %$p( o' +e pr%e o* e!!e'%() oo&! ('& $(r2e &e$('& *or3(r%o"! o'!"$er pro&"!. Ar%")"r() E,"%p$e' %'&"!ry p)(y! ( $(4or ro)e %' !"ppor%'

+e per*or$('e o* +e (r%")"r() !eor %' I'&%(. F(r$%' (%3%%e! (re %'re(!%')y e%'

$e+('%e& ('& +e (3(%)(#%)%y ,"()%y ('& per*or$('e o* (r%")"r() e,"%p$e'! +(3e ('

%'re(!%' %$p( o' %$pro3%' +e o"p" ('& pro&"%3%y o* +e (r%")"r() !eor.

Ar%")"re pro3%&e! !"ppor *or eo'o$% ro+ ('& !o%() r('!*or$(%o' o* +e o"'ry. A!

o'e o* +e or)&! )(re! (r(r%(' eo'o$%e! +e (r%")"re !eor ;%')"&%' ())%e& (%3%%e!

FIGURES IN PERCENTAGE (%)

ITEM 2010-11 2011-12

Gr!"# $ GDP $ &'r$*"r+ , &**$+ .+"r. /0 2

S#&r+ $ GDP-&'r$*"r+ & &**$+ .+"r. 1 134

A'r$*"r+ 123 -

Fr+."r5 & *''$' 1 -

F$.#$' 0/ -


11/47

Source: Central Statistical Organization (CSO) and Department Agriculture and Cooperation

T+e (#o3e P%e C+(r e=p)(%'! +( +e !+(re o* Ar%")"re ('& A))%e& !eor! %' I'&%( +(!

re&"e& !%'%*%(')y *ro$ 1. %' ?00-10 o 1@. %' ?011-1?;(! e!%$(e&


12/47

!"%(#)e %$p)e$e'! o pro3%&e +e 'ee!!(ry e'ery *or per*or$%' 3(r%o"! rop pro&"%o'

oper(%o'! %'3o)3e& %' +e pro&"%o' o* (r%")"r() rop!. Tr(or! (re (p%() %'e'!%3e )(#o"r

&%!p)(y%' "!e& (! ( $o&e o* r('!por %' e)er%%y e'er(%o' %' o'!r"%o' %'&"!ry ('& *or

+(")(e oper(%o'. I +(! #eo$e (' %'e3%(#)e p(r o* *(r$ !r""re. T+e (pp)%(%o' o* r(or

*or (r%")"r() (%3%%e! +%+ !ep I'&%( &"r%' +e p(! *e ye(r! +(! +e)pe& +e *(r$er! o

%$pro3e.

Tr(or %'&"!ry %! (' %$por(' p(r (! (r%")"re !eor %! o'e o* +e $(%' o'r%#"or! o

I'&%(! GDP. E(r)%er +ey ere %$pore& o I'&%( ('& )(er o' ere %'&%e'o"!)y $('"*("re&

%+ +e +e)p o* *ore%' o))(#or(%o'!.T+e r(or %'&"!ry %' I'&%( +(! $(&e ( !%'%*%('

prore!! %' er$! o* pro&"%o' ('& (p(%y (! e)) (! %'&%e'%!(%o' o* e+'o)oy.

Tr(or $(r2e %' I'&%( %! (#o" R! 000 rore. O' (' (3er(e (ro"'& 00000 r(or! (re

pro&"e& ('& +e%r !()e %! ?0000.U(r Pr(&e!+ %! +e )(re! r(or $(r2e %' o"r o"'ry. O'e

o" o* e3ery *o"r r(or %! #e%' p"r+(!e& +ere. O'e +%r& o* or)&! Tr(or pro&"%o' %! %'

I'&%(. T+e To() T"r' O3er %! 10000 rore ('& +e To() %'3e!$e' %! 000 rore. 9%+E$p)oy$e' o* ?000 peop)e &%re)y ('& 150000 peop)e %'&%re)y +e Tr(or pop")(%o' %!

@000000 o$p(re& o 00000 %' C+%'(.

T+e I'&%(' r(or %'&"!ry +(! e=per%e'e& !ro' 3o)"$e ro+ &"r%' FY10- FY1? ;*or

$o'+!< &"e o *(3o"r(#)e y)%() ('& !r""r() &e$('& &r%3er!. 9+%)e r(or 3o)"$e!

re$(%'e& ro#"! +ro"+o" FY1? &e!p%e $(ro-eo'o$% +e(&%'&! +e &o$e!% r(or

$(r2e +(! !+o' !o$e !%'! o* e(2'e!! o3er +e )(! o"p)e o* $o'+!.

VOLUMES

FY06 FY04 FY10 FY11 FY12+Do$e!%

E=por

@50 @5? 11 551? 050?

Source: CMIE Database; ICRA Estimates


13/47

Gr!"# 77+"7 $ "r&"r 7&r8+" "$+.9

A*er ( per%o& o* &o'"r' &"r%' FY0 ('& FY0 +e "p-y)e %' +e r(or $(r2e +(!

e=e'&e& o3er +e )(! +ree ye(r! ;FY10-$FY1?


14/47

e=por ro+ *"r+er. E=por o 'e%+#o"r%' o"'r%e! !"+ (! T+(%)('& M()(y!%( ('&

I'&o'e!%( %! !"ppore& #y +e A!%(' Free Tr(&e Aree$e'. F"r+er e=por 3o)"$e! (re

e=pee& o #e'e*% *ro$ +e %'ro&"%o' o* +%+er HP r(or! #y I'&%(' $('"*("rer!. TAFE

MJM ('& /o+' Deere (re +e $(4or r(or e=porer! *ro$ I'&%(.

T+e I'&%('

r(or%'&"!ry +(! 1@ $(%' '(%o'() p(r%%p('! ('& !o$e re%o'() p)(yer! (! e)). T+e $(r2e !+(re

%! +oe3er o'e'r(e& ($o'! +e op-*%3e $('"*("rer! +%+ (o"' *or o3er 0 o*

+e o() !()e! 3o)"$e!. 9%+ re)(=(%o' o* +e Fore%' D%re I'3e!$e' %' (r%")"re o #oo!pro&"%3%y )(re %'er'(%o'() p(r%%p('! !"+ (! AGCO Corpor(%o' CNH G)o#() ('& /o+'

Deere e'ere& +e I'&%(' Tr(or $(r2e *e ye(r! (o. Mo! o* +e!e %'er'(%o'()

$('"*("rer! +(3e o'%'"e& o $(%'(%' +e%r pre!e'e %' I'&%( e%+er +ro"+ +e%r +o))y-

o'e& !"#!%&%(r%e! 4o%' 3e'"re! or +ro"+ e+'%() o))(#or(%o'!. A! +ere (! re)(%3e)y )oe'ry #(rr%er! %' +e r(or %'&"!ry %' er$! o* e+'o)oy o!! %'3o)3e& %' #r('&%'

&%!r%#"%o' 'eor2 ('& !p(re p(r! (3(%)(#%)%y ( (! #(rr%er!.

T+e r(or %'&"!ry +(! %'e!!e& o'!o)%&(%o' %' ?005 ('& ?00 %+ $erer o*

$('"*("rer! !"+ (! E%+er Tr(or! %+ TAFE ('& P"'4(# Tr(or! %+ MJM

re!pe%3e)y.

12 COMPANY OVERVIEW

121 ESCORTS LIMITED

T#+ E.r". Gr: $. &7' "#+ I$&;. *+&$' +'$++r$' '*7+r&"+. !#$# :+r&"+$ "#+ #$'# 'r!"# .+"r. < &'r$-7$+r5= ."r"$ , 7&"+r$&* #&*$'

+>$:7+"= r&$*!&5 +>$:7+" & &" 7:+".H(3%' p%o'eere& *(r$ $e+('%(%o'

%' +e o"'ry E!or! +(! p)(ye& ( p%3o() ro)e %' +e (r%")"r() ro+ o* I'&%( *or $ore +('

*%3e &e(&e!.Be%' o'e o* +e )e(&%' r(or $('"*("rer! o* +e o"'ry % o**er! (

o$pre+e'!%3e r('e o* r(or! $ore +(' 5 3(r%('! !(r%' *ro$ ?5 o 0 HP. E!or

F(r$r( ('& Poerr( (re +e $o! %&e)y (epe& ('& pre*erre& r(or #r('&!.


15/47

I +(! #ee' ( )e(&%' $(er%() +('&)%' ('& o'!r"%o' e,"%p$e' $('"*("rer *or ( &%3er!e

r('e o* e,"%p$e'! )%2e r('e! )o(&er! 3%#r(ory ro))er! ('& *or2)%*!. To&(y E!or! %! +e

or)&! )(re! P%2 ' C(rry Hy&r(")% Mo#%)e Cr('e $('"*("rer. E!or! +(! #ee' ( $(4or

p)(yer %' +e r(%)(y e,"%p$e' #"!%'e!! %' I'&%(.T+e%r pro&" o**er%' %')"&e! #r(2e!

o"p)er! !+o2 (#!or#er! r(%) *(!e'%' !y!e$! o$po!%e #r(2e #)o2! ('& 3")('%e& r"##er

p(r!. I' +e A"o o$po'e'! !e$e' E!or! %! ( )e(&%' $('"*("rer o* ("o !"!pe'!%o'

pro&"! %')"&%' !+o2 (#!or#er! ('& e)e!op% *ro' *or2!.

T+ro"+o" +e e3o)"%o' o* E!or! I +(! #ee' ( +(r#%'er o* 'e e+'o)oy ('& ( pr%$e

$o3er o' +e %'&"!r%() *ro' #y %'ro&"%' %&e r('e o* 'e pro&"! ('& e+'o)o%e! +(

+e)pe& o (2e +e o"'ry *or(r& *or %! #eer$e'.

T+e $(4or re3e'"e *or

E!or! ;(ro"'&

< o$e! *ro$

%! Ar% M(+%'ery D%3%!%o'. T+ere (re o+er o$p('%e! (! e)) +%+ o'r%#"e o +e o3er())

re3e'"e !+(re )%2e Co'!r"%o' e,"%p$e' (o"'! *or 1 R(%)(y e,"%p$e' ('& A"oo$po'e'! (ro"'& @ (ppro=%$(e)y.

122AGRI MAC?INERY GROUP

123 ?ISTORY OF ESCORTS AGRI MAC?INERY

I' 1 E!or! ro"p )("'+e& E!or! Ar%")"r() M(+%'e! L%$%e&. L(er o' %' 15 %

!(re& %$por%' MF r(or *ro$ Y"o!)(3%( *or $(r2e%' %' I'&%(. T+e' %' 10 A

$('"*("r%' p)(' (! !e "p ( F(r%&(#(& #y +e '($e o* E!or! Ar% M(+%'ery Gro"p.

I' 15 +e o$p('y (,"%re& I'&"!r%() )%e'e o $('"*("re URSUS: ESCORT r(or!. I'

1 ( !ep(r(e o$p('y E!or! Tr(or! L&. (! e!(#)%!+e& %+ e,"%y p(r%%p(%o' o*

For& Moor Co. B(!%)&o' UK *or +e $('"*("re o* For& (r%")"r() r(or! %' I'&%(. L(er

o' E!or! !%'e& ( o'r( %+ For& Moor Co$p('y o $('"*("re For& @000 $o&e)

r(or! ('& e!(#)%!+e& ( E!or! I'!%"e o* F(r$ Me+('%!(%o' ;EIFM< %' B('()ore.T+e' %'

1 Be%'%' o* E!or! S%e'%*% Re!e(r+ Ce're ( F(r%&(#(& #y &e3e)op%' %! o'

E'%'e! *or E-? ('& E-@.


16/47

I' 1 +e !()e! "r'o3er ro!!e& +e R!. 50 rore $(r2 +%+ (! +%+)y (pp)("&(#)e.I'

1@ E!(#)%!+e& !(e-o*-+e-(r RJD e're o !pe(r+e(& 'eer #re(2+ro"+! %' F(r$

Me+('%!(%o' ('& o $(%'(%' %'&"!ry )e(&er!+%p. L(er %' 1 E!or! (''"()%!e& "r'o3er

ro!!e& (#o3e R!.100 rore!.

I' 1 ( D%!e'(e$e' o* /o%' 3e'"re %+ Ne Ho))('& oo2 p)(e ('& +e F(r$r(

Tr(or !er%e! ere )("'+e&. I' +e !($e ye(r E!or! Tr(or! L&. *or$())y $ere& %+ %!

p(re' o$p('y E!or! L&.

I' 1 A /o%' e'"re %+ (' I()%(' o$p('y CARRARO (! *%'()%!e& o e!(#)%!+ (

o$p('y %' I'&%( *or $('"*("r%' ('& $(r2e%' o* r('!$%!!%o' ('& (=)e!. A Me$or('&"$

o* "'&er!('&%' *or /o%' e'"re %+ ( Po)%!+ Co$p('y POL-MOT (! !%'e& *or (!!e$#)y

$('"*("r%' ('& $(r2e%' o* F(r$ M(+%'ery.

I' 1 E!or! )("'+e& Poerr( !er%e! o* r(or!.S%'e %'ep%o' E!or! Gro"p +(!

$('"*("re& o3er 1 $%))%o' r(or!. E!or! Ar% M(+%'ery Gro"p +(! +ree reo'%e& ('&

e))-(epe& r(or #r('&! +%+ (re o' &%!%' ('& !ep(r(e e+'o)oy p)(*or$!.

To&(y E!or Ar% M(+%'ery Gro"p +(! ( '(%o'%&e 'eor2 %+ o3er 00 &e()er! 100 p(r!

!o2%!! ('& @0 (re( o**%e!. T+e%r '(%o'() !+(re !('&! ( ?0. T+e o$p('y +(! &e3e)ope& %!

o' %'-+o"!e !(e-o*-+e-(r e+'o)oy RJD *(%)%y. T+e $(%' *o"! o* +e RJD *(%)%y %! o

&e3e)op 'e ('& #eer pro&"! +( (' o**er %$pro3e& per*or$('e %+ )oer *"e)

o'!"$p%o' ('& )e(! $(%'e'('e ('& p(r! re,"%re$e'!.

12COMPANY MISSION AND VISION

Escorts Endea!our"s to trans#orm li!es in rural and urban India b$ leading t%e re!olution in

agricultural mec%anization& modernization o# automoti!e and rail'a$ tec%nolog$& as 'ell as

trans#ormation o# Indian construction industr$

T+e Sr(e% ()"e! &e*%'e +o +e o$p('y %)) (+%e3e %! e'3%!%o'e& *""re. T+e!e 3()"e!

$"! #e e$#e&&e& %'o +e%r $(''er o* +%'2%' ('& (y! o* or2.

C"!o$er Ce'r%%y

A"e !e'!%%3%y o +e 'ee&! ('& e=per%e'e! o* +e "!o$er !+()) "%&e ()) +( e &o.

E=e))e'e

9e %)) !r%3e o (+%e3e ('& !"rp(!! or)& )(!! !('&(r&! %' ()) +( e &o.


17/47

I''o3(%o'

9e %)) "!e +e poer o* e+'o)oy ('& %$(%'(%o' o &e)%3er !o)"%o'! o +e "!o$er

'ee&!.

A%)%y

9e %)) oper(e %' o"r $(r2e! %+ +e (#%)%y o +('e &%re%o' ('& po!%%o' %+

'%$#)e'e!! ('& !pee&.

E!or! L%$%e& p%o'eere& *(r$ $e+('%(%o' %' I'&%( %+ *or(y %' r(or $('"*("r%' %'

10. E!or! L%$%e& $('"*("re! %&e r('e o* r(or! ;*ro$ ?-5 HP


18/47

T+e o() re3e'"e o* +e Ar% M(+%'ery D%3%!%o' +(! %'re(!e& o3er +e p(! *e ye(r! ('& %

+(! #ee' r('%' #eee' ?0000 o @5000 M%))%o' R! ;(ppro=%$(e)y


19/47

E!or >

E!or #r('& o* r(or! (re !y$#o)% o* re)%(#%)%y ('& r"! ('& e'4oy +e o'*%&e'e o* +e

*(r$%' o$$"'%y *or +e )(! 0 ye(r!. I o$e! "'&er +e eo'o$y r('e ('& +e r(or

+(! ? y)%'&er! %+ ? - @5 Hp.

Ne %'3erer r(or>

E!or! )%$%e& #e($e +e p%o'eer %' I'&%(' Tr(or I'&"!ry #y )("'+%' I'&%(! *%r!-e3er

I'3erer Tr(or. T+%! e+'o)oy o**er! +e *(r$er! (' %'er(e& $")%-p"rpo!e 3e+%)e +(

(' #e "!e& (! ( r(or *or Ar%-oper(%o'! ('& %+ +e +e)p o* (' %'-#"%) #(ery !y!e$ %

(' e'er(e e)er%%y +%+ %! +e)p +e *(r$er! %' )%+%' "p +e%r +o$e!.T+%! r(or

)("'+ re(**%r$! E!or! o$$%$e' o(r&! e'+('e& 3()"e propo!%%o' o %!

"!o$er!.I'3erer Tr(or o$e! %' pop")(r E!or! 3(r%('! %')"&%' FT 5 PT @ J PT

@ ('& %! "rre')y (3(%)(#)e (ro!! +e !(e! o* M(&+y( Pr(&e!+ U(r Pr(&e!+ H(ry('(

R(4(!+(' M(+(r(!+r( B%+(r J 9e! Be'() e.

Ne 4(% 2%!!(' !er%e!>

A! +e (&3e' o* 'eer (pp)%(%o'! o* r(or! (ro!! +e o"'ry % +(! #eo$e +e 'ee& o*

+e +o"r *or r(or! o #e $ore C"!o$%e& J Spe%()%e& o $(=%$%e pro&"%3%y ('&

e**%%e'y.T+e pro&" )%'e (! )("'+e& %' +e !(e! o* P"'4(# H(ry('( R(4(!+(' ('&

e!er' UP. T+e /(% K%!!(' Ser%e! o'!%! o* +e *o))o%' r('e o* r(or!>-

()"e$(==>

T+e $o! pop")(r %! +e ALUEMA r(or! +%+ +(! #ee' &e!%'e& o (er o ()) +e

#(!% *(r$ (pp)%(%o'! o* +e%r "!o$er! ('& % +(! ( poer*") ('& eo'o$%() e'%'e.

A)o' %+ +e (#o3e *e("re! % ()!o po!!e!! S%')e C)"+ E(!y Seer D%e!e) Poer ('&

&"() PTO *(%)%y (! e)). T+%! ype o* r(or %! #e! !"%e& o #e "!e& (! ( C")%3(or See&

&r%)) M B P)o"+ H(rro ('& D%! P)o"+.

A$(==>

U'&er +e /(% K%!!(' !er%e! +e !eo'& $o! pop")(r r(or r('e %! +e AGMA r(or!

+%+ (re $('"*("re& o (er o +e e$er%' (r%")"re ('& PTO oper(e& (pp)%(%o'!.

T+%! r('e o* Tr(or! +(! &"() )"+ ('& (&4"!(#)e *ro' (=)e +( %'re(!e pro&"%3%y

('& !(3e! "!o$er! %$e ('& $o'ey. S"+ 2%'& o* r(or (' #e "!e& (! Ro(3(or Sr(

Re(per Po(o D%er T+re!+er #(%)er H(r3e!er ('& Po(o P)('er.


20/47

Lo(&$(==>

U'&er +e /(% K%!!(' !er%e! ('o+er r(or r('e %! +e LOADMA r(or! +%+ (re

e)) e,"%ppe& o (er o +e +e(3y +(")(e (pp)%(%o'! ('& (re #"%) %+ O%) %$$er!e&

#r(2e! ('& er($e())% )"+.= e=r( Tor,"e M(+%'e= @r& Hy&r(")% Le3er %+ Co"p)er.I %! #e! !"%e& *or S%')e A=)e Tro))ey Do"#)e A=)e Tro))ey ('& T%pp%' Tro))ey.

S"per$(==>

U'&er +e /(% K%!!(' !er%e! ('o+er r(or r('e %! +e SUPERMA r(or! +%+ (er!

o #o+ e$er%' Ar% ('& He(3y H(")(e re,"%re$e' o* +e%r "!o$er!. I %! #e! !"%e&*or Ro(3(or L(!er Le3e))er Re(per Lo(&e& ro))ey ('& T%pp%' ro))ey.I ()!o +(! e=r(

*e("re! )%2e O%) I$$er!e& Br(2e! Poer Seer%' e=r( Tor,"e M(+%'e He(3y Hy&r(")%

L%* M")% Spee& Re3er!e PTO F)e=% A=)e B%er Tyre ('& D"() PTO.

I'*r($(==>

U'&er +e /(% K%!!(' !er%e! ('o+er r(or r('e %! +e INFRAMA r(or! +%+ +(!#ee' #"%) o (er o +e %'re(!%' "!e o* r(or %' o$$er%() ('& o'!r"%o'

(pp)%(%o'!. I %! #e! !"%e& *or Lo(&er Doer B(2+oe Lo(&er r(&er e. I ()!o +(!

e=r( *e("re! )%2e Ep%y)% Re&"%o' ? Spee& Sy'+ro$e!+ Sy'+ro S+")e.

12@ COMPARISION OF ESCORTS WIT? OT?ER MAOR TRACTOR

MANUFACTURERS


21/47

E!or! !()e! (re )e!! %' +e ?1-@0HP Tr(or! C(eory +e' o$p(re& o o+er $('"*("rer!

)%2e M(+%'&r( J M(+%'&r( +%+ +(! +e +%+e! !()e! %' +%! (eory.

E!or! !()e! (re 3ery )e!! %' +e @1-0HP Tr(or! C(eory ('& M(+%'&r( J M(+%'&r( +(! +e

+%+e! !()e! o* 0? Tr(or! %' +%! (eory. E3e' +e !()e! o* TAFE ('& So'()%2( ere

$ore +(' E!or!.

E!or! %! ( $(4or !e))er o* 1-50HP Tr(or! ('& o'r%#"e! o ( o() $(r2e !+(re o* @15@

r(or !()e! +%+ %! !)%+)y )e!! +(' !()e! o* M(+%'&r( J M(+%'&r( L&.


22/47

M(+%'&r( J $(+%'&r( %! +e $(4or p)(yer %' +e %'&%(' r(or %'&"!ry ('& +(! !o)& @?

r(or! %' +e A#o3e 51Hp r(or (eory %' ?010-11 *%'('%() ye(r. E!or! ()+o"+ #e%' (

$(4or o'r%#"or o +e o3er()) r(or %'&"!ry &oe!' +(3e ('y !()e! %' +%! (eory %' ?010-

11 *%'('%() ye(r.


23/47

PROJECT

PROFILE


24/47

21 OBECTIVES OF T?E STUDY9

To ('()ye +e proe!! o* $ee%' +e !+or er$ re&% re,"%re$e' o* +e o$p('y ('& +e

&e()er!

To "'&er!('& +e +e *%'('%' er$! %+ +e #('2! ('& +e *%'('%() %'!%"%o'! o* +e

o$p('y ('& +e &e()er!.

To ('()ye +e re(%) ('& +(''e) *%'('%' !y!e$ o* E!or! Ar%-M(+%'ery Gro"p.

To ('()ye +e !+or-er$ *%'('%() po!%%o' ;%.e. )%,"%&%y ('& pro*%(#%)%y po!%%o'< o*

&e()er!.

To "'&er!('& +e #(!%! o' +%+ +e +(''e) *%'('e %! $(&e (3(%)(#)e o +e &e()er.

To e3()"(e +e %$p( o* +(''e) *%'('%' o' +e o$p('y.

22 MET?ODOLOGY9

Re!e(r+ Type> T+e re!e(r+ &e!%' %! De!r%p%3e (! e)) (! E=p)or(ory %' '("re.

Pop")(%o' ('& S($p)e S%e> T+e o() '"$#er o* &e()er! +e o$p('y &e()! %+ %! 10;%.e.

pop")(%o' !%e


25/47

23 C?ANNEL FINANCING9

231 MEANING9

C+(''e) F%'('%' %! (' %''o3(%3e op%o' *or e=e'&%' or2%' (p%() *%'('e o &e()er! +o

+(3e #"!%'e!! re)(%o'!+%p! %+ )(re o$p('%e!. De()er! (re 'o (#)e o )e3er(e +e%r

re)(%o'!+%p %+ rep"e& o$p('%e! %' !o"r%' )o o! *"'&! %+ !"ppor *ro$ +e%r

o"'erp(r!.

C+(''e) F%'('%' %! +e $e+('%!$ +ro"+ +%+ ( B('2 : F%'('%() I'!%"%o' $ee! +e

3(r%o"! *"'&! re)(e& re,"%re$e'! ()o' +e S"pp)y C+(%' ( +e !"pp)%er! e'&. T+ere*ore %+e)p! +e !"pp)%er %' !"!(%'%' ( !e($)e!! #"!%'e!! *)o ('& (3o%&%' 9or2%' C(p%() re)(e&

&%**%")%e!. C+(''e) *%'('%' re)(e! o e'!"r%' +( %'er(e& *%'('%() ('& o$$er%()

!o)"%o' %! (3(%)(#)e o +e e'%re +(%' o* !"pp)y ('& &%!r%#"%o' +( o")& e'!"re +e +e()+ o*

+e *%r$ *%'('e& #y +e #('2.

For(r& ('& #(2(r& )%'2(e! %' ( #"!%'e!! or('%(%o' p)(y ( !%'%*%(' ro)e %' +e !"e!!

or *(%)"re o* +e #"!%'e!! e'%y. For e=($p)e ( $('"*("r%' or r(&%' *%r$ +%)e +e

!"pp)%er! o* r( $(er%() (re %$por(' (! +ey pro3%&e %'p" *or pro&"%o' e,"())y %$por('

%! +e ro)e o* %! &%!r%#"or! +%+ !e)) pro&"! $('"*("re& #y +e *%r$ +ro"+ re(%)er! o

+e ")%$(e o'!"$er. C+(''e) *%'('%' re)(e! o e'!"r%' +( %'er(e& *%'('%() ('&o$$er%() !o)"%o' %! (3(%)(#)e o +e e'%re +(%' o* !"pp)y ('& &%!r%#"%o' +( o")& e'!"re

+e oo& +e()+ o* +e *%r$ *%'('e& #y +e #('2.

T+ro"+ +(''e) *%'('%' +e #"!%'e!! *%r$! (' o"-!o"re ( $(4or p(r o* +e%r or2%'

(p%() 'ee&! +ere#y re&"%' +e%r &epe'&e'e o' #('2 *%'('e. For %'!('e % 'ee& 'o (3(%)

o* re&% *ro$ %! #('2 o p(y o** +e !"pp)%er %* +e !"pp)%er e! +e *%'('e %' +%! o' '($e

*ro$ +e #('2 *or +e r( $(er%()! !"pp)%e& o' re&% %' +e *or$ o* !(y &r(ee #%))! *%'('%'.

T+e #('2 (' ()!o ())o )o(' o +e &e()er *or +e re&% er$ +( +(! #ee' *%=e& #eee' +e

*%r$ ('& +e &e()er %' +e *or$ o* ree%3(#)e *%'('e or *%'('e ((%'! #oo2 &e#! or *(or%'

o* +e ree%3(#)e!. T+%! e'(#)e! +e $('"*("r%' *%r$ o e (!+ %$$e&%(e)y *or +e *%'%!+e&oo&! !"pp)%e&. T+%! *%r$ *"'%o'! (! +e pr%'%p() "!o$er +%+ !"e!! +e '($e! o* %!

!"pp)%er! ('& &e()er! o +e #('2. T+ere(*er +e #('2 $(2e! ( &"e &%)%e'e (!!e!!$e' o* +e

!"pp)%er!:&e()er! !('&%' ('& re&% or+%'e!! ('& &e%&e! o pro3%&e *%'('e o' $er%.

T+e pre ('& po! !()e or2%' (p%() re,"%re$e' o* +e $('"*("r%' o'er' o")& #e

!()e& &o'. S"+ *%r$! (' o'e'r(e $ore o' +e%r ore o$pee'e (re( o* pro&"%o' ('&

$(r2e%' +e%r pro&"! #e!%&e! !(3%' %$e ('& o!! %'3o)3e& %' (rr('%' re&%or! ('&


26/47

$o'%or%' reo3ery. A! re(r&! +e !"pp)%er! ('& &e()er! +e $(4or #e'e*% %! +( +ey e

p(y$e'! pro$p)y +%+ %$pro3e +e%r )%,"%&%y po!%%o' ('& o!. T+%! ()!o +e)p! +e$ (!

e)) (! +e #('2 o " )e3e) o* o"'er p(ry r%!2!.

T+e #('2! ()!o (%' !"#!('%())y *ro$ +e proe!! o* +(''e) *%'('%' +%+ %')"&e %'re(!e&

"!o$er #(!e e**e%3e &"e &%)%e'e ('& !$oo+'e!! o* )e'&%' (%3%y ('& )o(' or%%'(%o'proe!!. Be!%&e! +e #('2! %)) #e (#)e o e'!"re #eer re&% &%!%p)%'e. S%'e +e r%!2 %!

&%3er!%*%e& +ro"+ *%'('e o !"pp)%er $('"*("rer ('& +e &e()er! +e re&% e=po!"re 'or$!

(re #eer o#!er3e&. He'e +(''e) *%'('%' %! ( 3ery o'3e'%e' oo) %' $('(%' +e%r (!!e!

por*o)%o.

C+(''e) *%'('%' &"e o %! &%!%' (&3('(e! o +e #"!%'e!! *%r$! (! e)) (! #('2! +(! #ee'

!"e!e& *or %$p)e$e'(%o' %' 3(r%o"! *or$! #y 3(r%o"! o$$%ee! %' I'&%( !"+ (!

ree%3(#)e *%'('%' #y T('&o' Co$$%ee &r(ee #%))! *%'('%' #y C+ore Co$$%ee ('&

+ro"+ *(or%' #y K()y('!"'&r($ Co$$%ee. C+(''e) *%'('%' ope'! "p $('%*o)&

oppor"'%%e! &"e o +%+ +e #('2! (' $(2e o'!%o"! e**or! ( pop")(r%%' +%! re&%&e)%3ery $e+('%!$.

C+(''e) F%'('%' +(! o (!pe!>

D%!o"'%' o* Tr(&e B%))!> I %')"&e! &%!o"'%' o* r(&e #%))! &r(' #y ( o$p('y

('& (epe& #y %! De()er! : D%!r%#"or! : C+(''e) P(r'er!.


27/47

Pro3%&%' O3er&r(* *(%)%y> I %')"&e! pro3%&%' o3er&r(* *(%)%y o +e &e()er! :

&%!r%#"or! +o +(3e #"!%'e!! &e()%'! %+ )(re Corpor(e.

T+ro"+ +(''e) *%'('%' +e #"!%'e!! *%r$! (' o"-!o"re ( $(4or p(r o* +e%r or2%'

(p%() 'ee&! +ere#y re&"%' +e%r &epe'&e'e o' #('2 *%'('e. C+(''e) *%'('%' ope'! "p

$('%*o)& oppor"'%%e! &"e o +%+ +e #('2! (' $(2e o'!%o"! e**or! ( pop")(r%%' +%!

re&% &e)%3ery $e+('%!$.

232 BENEFITS OF C?ANNEL FINANCING9

To +e Corpor(e>

9or2%' C(p%() F%'('e (' #e $(&e (3(%)(#)e #y +e orpor(e o +e%r +(''e) p(r'er! (

o! )oer +(' "rre' o! o* re&%.

Re)e(!e o* *"'&! *ro$ +e #()('e !+ee re!")! %' #eer ('& %$pro3e$e' %' *%'('%() r(%o!.

C+(''e) F%'('e (' #e "!e& #y orpor(e (! ( $(r2e%' oo) ('& !re'+e'%' +e%r

re)(%o'!+%p ('& )oy()y o(r&! +e%r +(''e) p(r'er!.

I %'re(!e! +e e**%%e'y o* +e ree%3(#)e $('(e$e' ('& (!+ $('(e$e' proe!! o*

+e orpor(e.

I +e)p! %' %'re(!%' !()e! +ro"+ +%+er p"r+(!%' poer *or +(''e) p(r'er! ('& (#%)%y

o %'ro&"e p(y$e' &%!%p)%'e %+ +e%r +(''e) p(r'er!.

Re!")! %' %$pro3e& pro*%(#%)%y.

To +e De()er!: D%!r%#"or! ;%.e. C+(''e) P(r'er!

C+(''e) *%'('e %! ( !e(&y ('& +e(per !o"re o* 9or2%' C(p%() *%'('%' *or C+(''e)

P(r'er!.

Upo er(%' )%$%! % %! ( )e(' *(%)%y o* *%'('%'.

C+(''e) p(r'er! (' %'re(!e +e%r !()e! +ro"+ +%+er p"r+(!%' poer.

S%$p)%%y o* &o"$e'(%o' ('& (ppro3() proe&"re!.

By (3(%)%' (!+ &%!o"'! *ro$ orpor(e +(''e) p(r'er! (' %'re(!e +e%r pro*%(#%)%y.

To +e B('2!>

T+ro"+ +(''e) *%'('%' proe!! (' %'re(!e +e%r "!o$er #(!e


28/47

I e'!"re! !$oo+'e!! o* )e'&%' (%3%y )o(' or%%'(%o'! proe!! o* #('2! (! e)) (!

e'!"re! #eer re&% &%!%p)%'e.

A! +e r%!2 (' #e &%3er!%*%e& +ro"+ *%'('e o !"pp)%er $('"*("rer ('& +e &e()er! +e

e=po!"re 'or$! (' #e #eer o#!er3e&.

I %! ( 3ery o'3e'%e' oo) *or #('2! %' $('(%' +e%r (!!e por*o)%o.

233 PROCESS OF C?ANNEL FINANCING9

Sep1> S"pp)y o* oo&! *ro$ Corpor(e o C+(''e) P(r'er.

Sep?> A&3%!e o B('2 o $(2e p(y$e' *or +e p"r+(!e.

Sep@> P(y$e' #y B('2 *or oo&! p"r+(!e& #y C+(''e) P(r'er.

Sep> Rep(y$e' #y C+(''e) P(r'er o B('2 (! per *(%)%y er$.

23 SCOPE OF C?ANNEL FINANCING9

O*e' o$p('%e! %+ +%+ )e3e)! o* e+'%() e=per%!e (re "'(#)e o re()%e +e *")) poe'%() o*

+e%r (p(#%)%%e! &"e o )(2 o* proper or2%' (p%(). S$(r *%'('%' (' +e)p +e$ o r(#

'e oppor"'%%e! ('& $('(e +e +"e #"!%'e!! ro+ +(ppe'%' o&(y. Se3er() +(''e)

p(r'er! !(r%*%e #"!%'e!! oppor"'%%e! &"e o or2%' (p%() o'!r(%'!. C+(''e) *%'('%'

(' +e)p! (2)e +%! )o!! o* oppor"'%%e!. F%'('e op%o'! ())o $ore r('!(%o'! %+%' (

!%')e re&% y)e +e)p%' +e o$p('y ro *(!er.

C+(''e) F%'('e +(! +e)pe& $('y o$p('%e! o e (re!!%3e %' (2%' #%er re&%e=po!"re!. I +(! ()!o e'+('e& +e%r (#%)%y o !er3%e $ore &e()!. D%!r%#"or! oo (re ((re o*

+e 'ee& *or +(''e) *%'('%' ('& +(3e %'ro&"e& 3(r%o"! pror($! o e'(#)e +e%r 2ey

p(r'er! %+ oo)! o (3(%) $ore *%'('%' op%o'!. A pre!e' #('2! pre*er )(rer o$p('%e!

%+ proper #()('e !+ee! *or #%)) &%!o"'%'. S$())er o$p('%e! (re "!"())y 'o %3e' pr%or%y

('& +(3e o p(y +%+er %'ere! r(e!.

Channel

Partner

Cor orate Bank

1

4

2

3


29/47

e'&or! oo (re &o%' +e%r #% o +e)p +(''e)! $('(e +e%r %'er'() *%'('e! #eer (! e)) (!

e$poer +e$ %+ "!o$er *%'('%' !+e$e!.

23 C?ALLENGES FOR C?ANNEL FINANCE9

T+e *o))o%' (re +e $(4or +())e'e! +( +e!e pro&"! *(e %' I'&%(>

1. 9+%)e +ere (re $ore op%o'! *or orpor(e! o r(%!e *%'('e! +(' e3er #e*ore o')y ( !$())

!e$e' o* +e o$p('%e! %! pre!e')y (3(%)%' +(''e) *%'('%' op%o'!. To #e e)%%#)e *or

+%! *(%)%y #orroer! 'ee& o +(3e !ro' *%'('%()! ('& r('!p(re' repor%' +%+ %!

"rre')y )(2%' ($o' ( )(re '"$#er o* o$p('%e!.

?. L(2 o* *%'('%() p)(''%' %! ('o+er %!!"e o$po"'&e& #y +e )(2 o* ,"()%*%e& ('&

e=per%e'e& per!o''e) o $('(e +e *%'('e!.

@. T+ere %! ()!o ( $%!o'ep%o' +( (3(%)%' )o('! %)) re(e (' %'ere! #"r&e' o' +e

()re(&y &%pp%' #oo$-)%'e. Co'r(ry o +%! 'o%o' (3(%)%' *%'('e %)) ())o ( o$p('y

o (rry o" $ore r('!(%o'! %+%' ( !%')e re&% y)e +"! re&"%' +e o() e**e%3e

oper(%' e=pe'!e %'"rre& per re&% y)e.

. A3(%)$e' o* *%'('%' 'ee!!%(e! !ro' *%!() &%!%p)%'e. O'e *%'('%' op%o'! (re

(3(%)e& o'e +(! o e !$(r %+ +e o3er()) *%'('e $('(e$e'. Fore(!%' o* +eor2%' (p%() 'ee&! #eo$e! p(r($o"' ('& )%e'! +(3e o e'!"re +( #('2er! (re p(%&

o' %$e )e! re&%#%)%y %! )o! ('& +e (#%)%y o r(%!e *""re *%'('e! %! (**ee&. S$(r

*%'('%' e'(#)e! o$p('%e! o %$pro3e +e%r (p(#%)%%e! o #e'e*% *ro$ 'e oppor"'%%e!

('& !pee& "p ro+.

5. E3e' (*er RBI +(! %3e' (ppro3() *or pro&"! )%2e +(''e) *%'('e *(or%' e +ere %! (

)o o* 'o'-ooper(%o' *ro$ +e #('2! re(r&%' %!!"('e o* )eer o* &%!)(%$er ('& Op%'%o'

repor!. F"r+er #('2! o**er $")%p)e pro&"! (! ((%'! )%$%e& *(%)%%e! o* *%'('%'

o**ere& #y $o! o* +e NBFC! +%+ (! (! ( +"r&)e *or +e orpor(e o !%+ o NBFC!

*or +e%r *%'('%' re,"%re$e'.

. T+e orpor(e! &o' pre*er +(''e) *%'('%' (! NBFC! +(3e ( +%+er r(e o* %'ere! +('

+e #('2! &"e o +e%r +%+er o! o* *"'&!. O+er or2%' (p%() pro&"! )%2e o3er&r(*

*(%)%y (!+ re&% (o"' )eer o* re&% e. (rry )oer r(e o* %'ere!.

. A)!o o'e o* +e $(4or +())e'e! +%+ orpor(e *(e %! 'o'-ooper(%o' *ro$ +ere &e#or!

('& re&%or!.


30/47

. L(2 o* ((re'e!! (#o" +e pro&".

23@ C?ANNEL FINANCE ROLE IN FINANCING9

C+(''e) *%'('e %! +e $(4or !o"re *or *%'('%' or2%' (p%() re,"%re$e'! o* ( o$p('y.

C(p%() re,"%re& *or ('y #"!%'e!! (' #e )(!!%*%e& "'&er o $(%' (eor%e! 3%(

F%=e& C(p%()

9or2%' C(p%()

E3ery #"!%'e!! 'ee&! *"'&! *or o p"rpo!e! *or %! e!(#)%!+$e' ('& o (rry o" %! &(y- o-

&(y oper(%o'!. Lo' er$! *"'&! (re re,"%re& o re(e pro&"%o' *(%)%%e! +ro"+ p"r+(!e o*

*%=e& (!!e! !"+ (! p)(' J $(+%'ery )('& #"%)&%' *"r'%"re e. I'3e!$e'! %' +e!e (!!e!

repre!e' +( p(r o* *%r$! (p%() +%+ %! #)o2e& o' per$('e' or *%=e& #(!%! ('& %! ())e&

*%=e& (p%(). F"'&! (re ()!o 'ee&e& *or !+or-er$ p"rpo!e! *or +e p"r+(!e o* r( $(er%()

p(y$e' o* (e! ('& o+er &(y o- &(y e=pe'!e! e.

T+e!e *"'&! (re 2'o' (! or2%' (p%(). I' !%$p)e or&! or2%' (p%() re*er! o +( p(r

o* +e *%r$! (p%() +%+ %! re,"%re& *or *%'('%' !+or- er$ or "rre' (!!e! !"+ (! (!+

$(r2e(#)e !e"r%%e! &e#or! J %'3e'or%e!. F"'&! +"! %'3e!e& %' "rre' (!!e! 2eep

re3o)3%' *(! ('& (re #e%' o'!(')y o'3ere& %' o (!+ ('& +%! (!+ *)o! o" ((%' %'

e=+('e *or o+er "rre' (!!e!. He'e % %! ()!o 2'o' (! re3o)3%' or %r")(%' (p%() or

!+or er$ (p%().

T+"!

I %! +e $%'%$"$ ($o"' o* re!o"re! +( ( o$p('y re,"%re! +"! % +e)p! o

e**e%3e)y o3er +e "!"() o!! ('& e=pe'!e! 'ee!!(ry o oper(e +e #"!%'e!!.

I *(%)%(e! !$oo+ *"'%o'%' o* +e #"!%'e!!.

I e'!"re! ( !o"'& )%,"%&%y po!%%o' o* +e #"!%'e!!.

Deer$%'%' 9or2%' C(p%() Re,"%re$e'>

T+e #(!% *or$")( %')"&e! o *(or!>

C"rre' A!!e! > C"rre' (!!e! (re 2'o' (! !+or er$ (!!e! ('& %')"&e (!+ %' +('&

('& (!+ ( #('2 #%))! ree%3(#)e! !"'&ry &e#or! !+or er$ )o('! ('& (&3('e!

%'3e'or%e! o* !o2 prep(%& e=pe'!e! (r"e& %'o$e! ('& $(r2e(#)e !e"r%%e!.

C"rre' L%(#%)%%e! > C"rre' )%(#%)%%e! (re 2'o' (! !+or er$ o#)%(%o'! o* ( #"!%'e!!

('& %')"&e #('2 o3er&r(* o"!('&%' e=pe'!e! !+or er$ )o('! (&3('e! ('&

&epo!%! !"'&ry re&%or! #%))! p(y(#)e ('& &%3%&e'&! p(y(#)e.


31/47

Wr8$' C&:$"&* Crr+" A..+". Crr+" L$&$*$"$+.

Po!%%3e or2%' (p%() $e('! +( +e o$p('y %! (#)e o p(y o** %! !+or-er$ )%(#%)%%e!

+ere(! 'e(%3e or2%' (p%() $e('! +( ( o$p('y "rre')y %! "'(#)e o $ee %! !+or-

er$ )%(#%)%%e! %+ %! "rre' (!!e! ;(!+ (o"'! ree%3(#)e ('& %'3e'ory

E!or! L%$%e& *(%)%(e& &e()er *%'('e %e-"p! %+ #('2! ('& *%'('%() %'!%"%o'! #y

)e3er(%' +e !re'+! o* %! re)(%o'!+%p! %+ #('2!. A &e&%(e& e($ %! (ppo%'e& o 3%!%

&e()er! %' I'&%( ( re")(r %'er3()! o o'&" +%! %'%%(%3e. I' +e ye(r ?010-11 o$p('y +(!

*or$()%e& (rr('e$e'! %+ o o* +e $(4or P"#)% Seor B('2;!< +o +(& (ree& o e=e'&

+e &r(ee #%)) &%!o"'%' *(%)%y o (re&% &e()er! o* E!or! )%$%e& %+ ( o() pror($$e

!%e o* R!. ?50 rore! ;S(e B('2 o* P(%()( R!. 50 rore ('& P"'4(# N(%o'() B('2 R!. ?00

rore!

O' +e #(!%! o* *%'('%() !o"'&'e!! ('& re&% or+%'e!! o* +e &e()er! +e o$p('y e'!"re! +e

+(''e) *%'('e *(%)%y o +e &e()er!. I %')"&e! *o))o%'>

Se))%' Proe!!>

T+e #(!% proe!! o* !e))%' #y e!or! (! !e))%' o +e &%!r%#"or! ('& +(' o +e &e()er!.

9+ere(! 'o +e o$p('y *o"!e! o' e)%$%'(%' +e &%!r%#"or! ;%.e. $%&&)e $e'< ('& !e))%'

&%re)y o +e &e()er!.

Ne !e))%' proe!!>

Escorts Agri-

MachineryDistributors Dealer


32/47

U'&er +%! !e))%' proe!! +e o$p('y ('& +e &e()er o$e %' &%re o'( %+ e(+ o+er

('& &%re !e))%' %! %'3o)3e& +ere &e()er! (' &%re)y p"r+(!e *ro$ +e o$p('y. T+ere %! (

)%$% o* *%'('e pro3%&e& o e(+ &e()er ('& +ere %! +e $(%' ro)e o* +(''e) *%'('%'. I' +%+

+e B('2! pro3%&e! *%'('e o +e &e()er ((%'! +e #%)) o* e=+('e &r(' #y +e o$p('y

((%'! +e &e()er o' +e %'3o%e ($o"'. T+e o$p('y +(! (ppo%'e& (re( o**%er! ( e(+ (re(

+o (re %' &%re o'( ('& %'er( %+ +e &e()er!.

Sep! %'3o)3e& %' C+(''e) F%'('%'>

T+e (re( o**%er &r(! +e #%)) o* e=+('e %' +e '($e o* +e o$p('y ((%'! +e &e()er

*or +e "'%! o* r(or p"r+(!e& #y +e &e()er

T+e &e()er (ep! +e #%)) o* e=+('e ;+"'&%< ('& !e'&! % #(2 o +e o$p('y ()o' %+

+e po! &(e& +e,"e.

T+e re,"%re& or $(=%$"$ r(&e o* y)e (' #e 0 &(y!.

A*er +e #%)) o* e=+('e %! ree%3e& #y +e o$p('y % ('()y!e! +e *%'('%() !(e$e'! o*

+e &e()er ('& !e'&! +e ('()ye& repor ()o' %+ +e #%)) o* e=+('e *or &%!o"'%'.

T+e #('2 o' +e #(!%! o* o$p('y! ('()ye& repor %! er$! ('& o'&%%o'! ('& (*er

('()y%' +e &e()er! *%'('%() !(e$e'! &%!o"'! +e #%)) o* e=+('e ('& r('! )o(' o

+e &e()er.

D"r%' +e pe(2 !e(!o' ;%.e. Fe#r"(ry or /"'e ('& /")y< +e #('2! ('& o$p('y %'re(!e +e

)%$% o* +(''e) *%'('e pro3%&e& #y +e$.

F%'('%() S(e$e'! re,"%re&>

T+e &e()er 'ee& o pro3%&e +e o$p('y %+ 3(r%o"! *%'('%() &(( +( o$p('y (' ('()y!e

('& o' +e #(!%! o* &e()er! *%'('%() !o"'&'e!! ;%.e. !ro' )%,"%&%y ('& pro*%(#%)%y po!%%o'


33/47

A'()y!%! o* &e()er! F%'('%() S(e$e'!>

T+e ('()y!%! %! &o'e #(!%())y o ('()ye +e !+or er$ *%'('%() po!%%o' o* +e &e()er. T+e

)%,"%&%y ('& pro*%(#%)%y po!%%o' o* +e +(''e) p(r'er %! ('()ye&. Fo))o%' ()")(%o'! ('&

('()y!e! %! (rr%e& o' #y +e o$p('y>

C()")(%o' o* R(%o! >

R(%o! (re "!e& o o$p(re r%!2 ('& re"r' o* &%**ere' *%r$! %' or&er o +e)p e,"%y %'3e!or!

('& re&%or! $(2e %'e))%e' %'3e!$e' ('& re&% &e%!%o'!. S+or-er$ #('2 ('& r(&e

re&%or! (re pr%$(r%)y %'ere!e& %' +e %$$e&%(e )%,"%&%y o* +e *%r$. R(%o! pro3%&e ( pro*%)e

o* ( *%r$ %! eo'o$% +(r(er%!%! ('& o$pe%%3e !r(e%e! ('& %! "'%,"e oper(%'

*%'('%() ('& %'3e!$e' +(r(er%!%!. A%3%y )%,"%&%y ('& pro*%(#%)%y ('()y!%! %! &o'e o*

&e()er! *%r$ o pro3%&e % %+ *%'('e *(%)%y.

A%3%y A'()y!%!> Fo))o%' r(%o! (re ()")(e&>

o I'3e'ory T"r'o3er R(%o

o I'3e'ory Co'3er!%o' Per%o&

o De#or! T"r'o3er Per%o&

o De#or! Co))e%o' Per%o&

o Cre&%or! T"r'o3er Per%o&

o Cre&%or! P(y(#)e Per%o&

L%,"%&%y A'()y!%!> Fo))o%' r(%o! (re ()")(e&>

o C"rre' R(%o

o "%2 R(%o

o 9or2%' C(p%() R(%o

Pro*%(#%)%y A'()y!%!> Fo))o%' r(%o! (re ()")(e&

o Ne Pro*% M(r%'

F"r+er *o))o%' ('()y!%! %! &o'e

Oper(%' Cy)e

Co! o* Goo&! So)& R(%o


34/47

I'ere! Co3er(e R(%o

Co'!or%"$ ()"e

M(=%$"$ B('2 Per$%!!%#)e F%'('e L%$% ;MBPF A! per *o))o%'>

o T('&o' Co$$%ee

o N(y(2 Co$$%ee


35/47

OBSERVATI

ONS AND


36/47

31 ANALYSIS OF VARIOUS DEALERS9

A%3%y )%,"%&%y ('& pro*%(#%)%y ('()y!%! %! &o'e o* &e()er! *%r$ o pro3%&e % %+ *%'('e

*(%)%y.

1. A"$$"5 &&*5.$.9 I e3()"(e! re3e'"e ('& o"p" e'er(e& #y *%r$! (!!e!. A%3%y r(%o!

&e!r%#e +e re)(%o'!+%p #eee' +e *%r$! )e3e) o* oper(%o'! ;"!"())y &e*%'e& (! !()e!

I'3e'ory o'3er!%o' per%o&> % %! &e*%'e& (! (3er(e '"$#er o* &(y! +e %'3e'ory %! %' !o2. I

$e(!"re! (3er(e %$e per%o& (2e' o o'3er +e r( $(er%() o !()e!.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

Inventory Turnover Ratio !ost o" Goo#s $ol# % Average Inventory

Inventory !onversion &erio# 3'( % Inventory Turnover Ratio


37/47

1.5 5?.5 5.??@ 0.@1 ?.5?

C+(''e) F%'('e %! pro3%&e& o +o!e &e()er! o* +e o$p('y +o!e %'3e'ory o'3er!%o'

per%o& %! "po 0 &(y!. A)) +e (#o3e &e()er! (re $ee%' +e re,"%re& r%er%( e=ep M:S S+%3

Moor! +%+ %! +(3%' (' ICP o* 0 &(y!.

De#or! "r'o3er : Ree%3(#)e! T"r'o3er r(%o > I $e(!"re! +e e**e%3e'e!! o* +e *%r$!

re&% po)%%e! ('& %'&%(e! +e )e3e) o* %'3e!$e' %' ree%3(#)e! 'ee&e& o $(%'(%' +e

*%r$! !()e! )e3e). I %! "!e& o e3()"(e +e *%r$! oper(%' per*or$('e.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

1. 15.0 ?.? ?.1 .01

I %! *"r+er "!e& *or ()")(%'>

De#or! Co))e%o' Per%o&> I %! &e*%'e& (! (' (3er(e '"$#er o* &(y! +e ree%3(#)e! (re

o"!('&%'.

ATTITRACTORS

MODERNTRACTORS

MS SAITRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

Debtors Turnover Ratio $ales % Average Debtors )Tra#e

Debtors !ollection &erio# 3'( % Debtors Turnover Ratio


38/47

1.?1 ?@. [email protected] 1@.? 5.@

C+(''e) F%'('e %! pro3%&e& o +o!e &e()er! o* +e o$p('y +o!e De#or Co))e%o' Per%o& %!

"po 0 &(y!. A)) +e (#o3e &e()er! (re $ee%' +e re,"%re& r%er%( ('& M:S S+%3 Moor! +(! (

)oe! DCP o* 1@ &(y! +%+ $e('! +( +e &e#or! (re o))ee& ,"%2)y.

Cr+$"r. "r+r P&5&*+. "r+r R&"$ 9A !+or-er$ )%,"%&%y $e(!"re "!e& o

,"('%*y +e r(e ( +%+ ( o$p('y p(y! o** %! !"pp)%er!. I !+o! +o ( *%r$ $('(e!

p(y%' %! o' #%))!.

I %! *"r+er "!e& *or ()")(%'>

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

.5 1.@ @. 5.@ 5.@@

Cre&%or! P(y(#)e Per%o&> I %! &e*%'e& (! (' (3er(e '"$#er o* &(y! +e p(y(#)e! (re

o"!('&%'. De*%'e& (!>

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

?.5 ?0.@ 10.@ 1.0 .5

!re#itors &ayable &erio# 3'( % !re#itors Turnover Ratio


39/47

C+(''e) F%'('e %! pro3%&e& o +o!e &e()er! o* +e o$p('y +o!e Cre&%or! P(y(#)e Per%o& %!

"po 0 &(y!. T+e (#o3e &e()er! (re $ee%' +e re,"%re& r%er%( e=ep M:S S+%3 Moor! ('&

M:S B+(r(3( Tr(&%' Corp. +%+ (re e=ee&%' +e re,"%re& )%$%.

?. L$>$$"5 &&*5.$.9 I $e(!"re! +e (&e,"(y o* ( *%r$! (!+ re!o"re! o $ee %! 'e(r-

er$ (!+ o#)%(%o'!. T+e !+or-er$ )e'&er! (!!e!! +e (#%)%y o* ( *%r$ o $ee %! "rre'o#)%(%o'!. T+( (#%)%y &epe'&! o' +e (!+ re!o"re! (3(%)(#)e (! o* +e #()('e !+ee &(e

('& +e (!+ o #e e'er(e& +ro"+ +e oper(%' y)e o* +e *%r$. Ge'er())y +e +%+er

+e 3()"e o* +e r(%o +e )(rer +e $(r%' o* !(*ey +( +e o$p('y po!!e!!e! o o3er

!+or-er$ &e#!. U'&er % *o))o%' ('()y!%! %! &o'e>

C"rre' R(%o > I &e*%'e! (!+ re!o"re! (! ()) "rre' (!!e!. I $e(!"re! +e *%r$! (#%)%y o

$ee %! "rre' o#)%(%o'!. T+e "rre' r(%o (' %3e ( !e'!e o* +e e**%%e'y o* (

o$p('y! oper(%' y)e or %! (#%)%y o "r' %! pro&" %'o (!+. T+e +%+er +e "rre'r(%o +e $ore (p(#)e +e o$p('y %! o* p(y%' %! o#)%(%o'!.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

1.5 1.@1? .@5 1.?1 1.?5

T+e %&e() rr+" r&"$%! 1.5>1. T+e +%+er +e "rre' r(%o +e #eer %)) #e +e )%,"%&%y

po!%%o' o* +e o$p('y. M:! S(% Tr(or! +(! ( "rre' r(%o o* .@5 +%+ %! +e +%+e!. A

3ery +%+ r(%o %! ()!o 'o (ppropr%(e #e("!e +e *"'&! o* +e o$p('y (re )y%' %&)e (! (!+.

T+e "rre' r(%o o* /(% Tr(or! %! (p.

"%2 R(%o > I $e(!"re! ( *%r$! (#%)%y o $ee %! !+or-er$ o#)%(%o'! %+ %! $o!

)%,"%& (!!e!. T+e ,"%2 r(%o %! $ore o'!er3(%3e +(' +e "rre' r(%o #e("!e % e=)"&e!

%'3e'ory ('& o+er "rre' (!!e! ;%.e. prep(%& e=pe'!e!


40/47

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

0.5 0.50@ ?. 0.15 0.@

A +%+er r(%o $e('! ( $ore )%,"%& "rre' po!%%o' ('& #eer po!%%o' o* +e o$p('y. T+e

%&e() >$8 r&"$%! 0.@@>1. M:! S(% Tr(or! +(! ( "rre' r(%o o* ?. +%+ %! +e +%+e!.

A3ery +%+ r(%o %! ()!o 'o (ppropr%(e #e("!e +e *"'&! o* +e o$p('y (re )y%' %&)e (! (!+

9or2%' C(p%() R(%o > 9or2%' C(p%() %! ()")(e& #y !"#r(%' "rre' )%(#%)%%e! *ro$

"rre' (!!e!.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

1?1?1 151?@? ?0@1000 @5 ??50

9or2%' C(p%() R(%o %! &e*%'e& (!>

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

/oring !apital !urrent Assets 0 !urrent +iabilities

/oring !apital Ratio /oring !apital % !urrent +iabilities


41/47

0.5 0.@1?? .@ 0.?1 0.?5

H%+er +e r(%o #eer % %! *or +e o$p('y (! % !+o! !ro'er )%,"%&%y po!%%o'. M:S S(%

Tr(or! +(! +e +%+e! Wr8$' C&:$"&* R&"$o* .@.

@. Pr

Ne Pro*% M(r%' > I %! (' %'&%(%o' o* +o e**e%3e ( *%r$ %! ( o! o'ro). I $e(!"re!

+e o3er()) pro*% $(r%' 'e o* ()) e=pe'!e!.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MOTORS

MS B?ARGAVA

TRADING

CORPORATION

1 0.? 0. 0. 0.1@

A +%+er pro*% $(r%' %'&%(e! ( $ore pro*%(#)e o$p('y +( +(! #eer o'ro) o3er %! o!!

o$p(re& o %! o$pe%or!. /(% Tr(or! +(! +e +%+e! Pro*% $(r%'.

O:+r&"$' C5*+9 T+e (3er(e )e'+ o* %$e #eee' +e' ( *%r$ p"r+(!e! %e$! *or

%'3e'ory ('& +e' % ree%3e! p(y$e' *or !()e o* +e %e$!. A )o' oper(%' y)e e'&! o

+(r$ pro*%(#%)%y #y %'re(!%' #orro%' re,"%re$e'! ('& %'ere! e=pe'!e.

ATTI

TRACTORS

MODERN

TRACTORS

MS SAI

TRACTORS

MS

S?IV

MS B?ARGAVA

TRADING

et &ro"it Margin )et &ro"it % $ales* 1((

N+" O:+r&"$' C5*+ I+"r5 C+r.$ P+r$ R++$&*+. C+r.$

P+r$ P&5&*+. D+


42/47

MOTORSCORPORATION

1.15 5.0 1.?5 @1. 1.

A! per +e o$p('y 'or$! +e oper(%' y)e o* &e()er! *%r$ !+o")& #e $(=%$"$ o* 0 &(y!.

A)) +e (#o3e &e()er! o$p)y %+ +e re,"%re$e'! e=ep M:S S(% Tr(or! +%+ +(! (

!)%+)y +%+er Ne Oper(%' Cy)e.

C." < G. S* R&"$9I$e(!"re! o! (! ( pere'(e o* !()e!. Co! o* oo&! !o)&

re*er! o +e %'3e'ory o!! o* +o!e oo&! ( #"!%'e!! +(! !o)& &"r%' ( p(r%")(r per%o&. I

%')"&e! +e o! o* +e $(er%()! "!e& %' re(%' +e oo& ()o' %+ +e &%re )(#or o!! "!e&

o pro&"e +e oo&.

ATTI

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MS SAI

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MS B?ARGAVA

TRADINGCORPORATION

0. .1 @. 1.1 .

T+e r(%o %! e=pre!!e& %' er$! o* pere'(e. A! per o$p('y 'or$! +e COGS o* +e &e()er!

*%r$ !+o")& 'o #e )e!! +(' 0-1 pere'(e o* !()e! 3()"e.

@ I"+r+." C+r&'+ R&"$ T$7+. $"+r+." +&r+9

ATTI

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CORPORATION

!ost o" Goo#s $ol# pening $toc . &urchases . Direct Epenses 0 !losing

!ost o" Goo#s $ol# Ratio !ost o" Goo#s $ol# % $ales


43/47

1.1 1.1 1.5@ 1.? 0.5?

A:&r"

T+%! %! (' (e$p #y +e e'r() #('2 o or('%!e +e B('2 re&%. T+e repor o* +%! ro"p %!

%&e)y 2'o' (! T('&o' Co$$%ee repor.RBI (ppo%'e& ( or2%' ro"p o !"&y ('&

!"e!

Mo&%*%(%o'! %' +e C(!+ Cre&% !y!e$ o $(2e % ($e'(#)e o #eer $('(e$e' o* *"'&!

#y +e B('2er!

A)er'(e ype o* re&% *(%)%%e! o e'!"re #eer re&% &%!%p)%'e ('& o re)(%o' #eee'

re&% ('& pro&"%o'.

Aor&%' o To'&o' Co$$%ee E!or! Ar% M(+%'ery ro"p *o))o! +e *o))o%' 'or$!.

T+e M(=%$"$ per$%!!%#)e #('2%' *%'('e )%$% *or &e()er! %! MIN;=y< +ere

9or2%' C(p%() o* +e &e()er %.e C"rre' A!!e C"rre' )%(#%)%%e!

Y ?5 o* +e To() C"rre' A!!e!

N(y(2 Co$$%ee>

T+e N(y(2 Co$$%ee repor %! (pp)%(#)e o "'%! %+ re&% re,"%re$e'! o* )e!! +(' R!.50

)(!.

Aor&%' o N(y(2 Co$$%ee E!or! Ar% M(+%'ery ro"p *o))o! +e *o))o%' 'or$!.
http://www.banknetindia.com/banking/tandon.htmhttp://www.banknetindia.com/banking/nayak.htmhttp://www.banknetindia.com/banking/tandon.htmhttp://www.banknetindia.com/banking/nayak.htm


44/47

Aor&%' o RBI T+e 9or2%' C(p%() o* +e &e()er! !+o")& #e (! *o))o!>-

9or2%' C(p%() ?0 o* Pro4ee& T"r'o3er o* De()er Co'!or%"$ ()"e;!+or er$

#orro%'!


45/47

T(2%' %' 3%e +e %'&"!ry ('()y!%! % +(! #ee' o#!er3e& +( M(+%'&r( ('& M(+%'&r( +(! +e

)(re! !+(re %' +e I'&%(' r(or %'&"!ry. T+o"+ E!or! %! 'o *(r #e+%'& +(3%' ( $(4or

!+(re. T+e $(%' proe&"re #y e!or! %! +(''e) *%'('e %' +%+ +ere %! 'o &%re &e()%' %+

"!o$er! r(+er % %! %+ &%!r%#"or! ('& &e()er!. T+e #()('e !+ee o* &e()er! (re ('()ye&

('& #(!e& o' 3(r%o"! ()")(e& r(%o! $(=%$"$ per$%!!%#)e re&% )%$% %! &e%&e& *or +e

&e()er!. T+e o$p('y +(! #ee' (#)e o %'re(!e %! re3e'"e #y (ppro= 0 rore! #y pro3%&%'

+(''e) *%'('e *(%)%y. I +e)p! %' %'re(!%' +e (!+ *)o &"e o +e %$e)y p(y$e' #y +e

&e()er! +"! $ee%' +e !+or er$ re,"%re$e'! ('& %$pro3%' +e )%,"%&%y po!%%o' o* e!or!

)&.


46/47


47/47

The strategies followed by Escorts should be more aggressive in order to

compete with its competitors like Mahindra and Mahindra, T!E and "onalika

ltd#

The company should hold regular meetings with its dealers and improving their

relationships#

"tress more on channel financing to improve sales and revenues#

$t should tie%up with more banks and financial institutions to facilitate the channel

financing process#

Documents

Copy of Final Report Anurag