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V –GUARD INDUSTRIES LTD AN ORGANIZATIONAL STUDY AT V –GUARD INDUSTRIES LTD A Project report submitted in partial fulfilment of requirement for the award of degree of Master of Business Administration of University of Kerala Submitt ed by NEETHA.K Reg. No. MGT 1005364 UNDER THE GUIDANCE OF Mr. MANOJ KRISHNAN C.G IMK ADOOR Page 1

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Page 1: Neets Project v Guard

V –GUARD INDUSTRIES LTD

AN ORGANIZATIONAL STUDY AT

V –GUARD INDUSTRIES LTD

A Project report submitted in partial fulfilment of requirement for the

award of degree of Master of Business Administration

of University of Kerala

Submitted by

NEETHA.K

Reg. No. MGT 1005364

UNDER THE GUIDANCE OF

Mr. MANOJ KRISHNAN C.G

CO-ORDINATOR, IMK ADOOR

INSTITUTE OF MANAGEMENT IN KERALA ADOOR

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DECLARATION

I declare that the project report entitled “AN ORGANISATIONAL STUDY AT V- GUARD INDUTRIES”

submitted by me for the award of the degree of Master of Business Administration of the University of

Kerala is my own work. The report has not been submitted for the award of any other degree, diploma,

fellowship or any other similar title or prizes and that the work as such has not been published in any

journal or magazine. 

 

 

Place: ADOOR NEETHA K

Date:            MGT 1005364

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ACKNOWLEDGEMENT

I am deeply indebted to Dr. K.S. Chandrasekhar, Head, IMK for his valuable suggestions and for giving

me an over view on how to do the project.

Words can hardly express my gratitude to Mr. John, Hr manager, V GUARD for the valuable guidance and

assistance in completing the work successfully.

I wish to express my heartfelt thanks to Mr. Manoj Krishnan.C.G, Coordinator, IMK, Adoor granting

permission to pursue my project work at V GUARD

I take this opportunity to express my sincere gratitude and thanks to Mrs. SUMA S R Faculty, IMK ADOOR

for providing me with adequate materials for doing the project work.

I wish to place on record my gratitude to all others who have directly or indirectly helped me, my parents and

my friends for their support.

Place:

Date: NEETHA.K

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CONTENTS

CHAPTERS TOPIC PAGE No:

CHAPTER1 INTRODUCTION

OBJECTIVES OF THE STUDY

KEY REGULATION AND POLICIES

RESEARCH METHODOLOGY

LIMITATIONS

08

09

09-11

11

12

CHAPTER2 INDUSTRIAL PROFILE

GLOBAL SCENARIO

INDIAN SCENARIO

ENTRY INTO GARMENTS

REALIZATION OF GREAT DREAM : THEME

PARK

FACTORS GOVERNING THE GROWTH OF

THE INDUSTRY

14 – 18

14-15

15

15-16

16-18

18

CHAPTER3 COMPANY PROFILE

COMPANY PROFILE

HISTORY

MAJOR EVENTS AND BREAKTHROUGH

CERTIFICATE, AWARDS,

19-30

20

20-21

21-23

23

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RECOGNITION

PROMOTERS OF V-GUARD

BOARD OF DIRECTORS

INDEPENDENT DIRECTORS

VISION&MISSION

QUALITY POLICY

PRODUCT PROFILE

23

24

24

25

25

26-30

CHAPTER4 DEPARTMENT PROFILE

DEPARTMENT PROFILE

ORGANIZATION CHART

DEPARTMENT DETAILS

CORPORATE SOCIAL RESPONSIBILITY

32-65

33

34

35-65

66-68

CHAPTER 5

CHAPTER 6

ENVIRONMENT ANALYSIS

SWOT ANALYSIS

PORTERS FIVE FORCE ANALYSIS

69-71

70-71

72-78

CHAPTER7 FINDINGS, CONCLUSION, SUGGESTIONS

FINDINGS

79-82

80

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CONCLUSION

SUGGESTIONS

81

82

BIBLIOGRAPHY 83

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CHAPTER 1

INTRODUCTION

INTRODUCTION

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Organisational study is done in order for the purpose of acquiring practical knowledge of

working and functioning of the company. This shows us how the different departments in an

organisation work and wins as a single unit. I choose to do my project in v guard industries because

it was a company which has created a niche for itself and has been nurtured by quality

consciousness, passion for hard work and will to succeed. The period of study was from 25 th

JULY to 7th AUGUST and was conducted at head office at Vennala.

V GUARD industries being INDIA ‘S prestigious electronically and manufacturing company was

established in the year 1977 from the vision of one man KOCHOUSEPH CHITTILAPPILLY. It

plays a vital role for the economic development of our country. Their untiring commitment for

performance, cutting edge technology, innovative design , dependable service standards have lead

to unrivalled product quality and trusted brand image.

V GUARD ‘S product range deals into various ranges of products which cater the requirements of

consumer durable industry , agriculture and construction sectors of the country. It has a strong

distribution and marketing channel in small towns across India, which helps in tapping the rural and

the interior market.

India being aimed to convert her into developed nation has to make developments in all core sectors

like infrastructure, power; consumer durables etc. and this in turn augment the growth of the

corporate sector of the country as a whole. As the economy is growing in a faster manner , the

disposable income of the people are also increasing and most of the population is brought under the

spectrum for spending for housing and white goods. The aspiration to own luxury goods is also

increasing and this has resulted in a revolution of consumer durables. The company is confident of

capitalizing all these factors and increasing market presence across the country with focus on the

penetrating the rural markets.

OBJECTIVES

1. To study about the functions of various departments and hierarchy of the organisation.

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2. To know about the capital requirements, financial requirements, technical know- how,

plant machineries, raw materials.

3. To look after employees welfare

4. To contribute towards HRD

5. To know the CSR and quality measure adopted by the organisation.

KEY INDUSTRY REGULATIONS AND POLICIES

The relevant provisions of some of the regulations and policies applicable to us are given below:

The Factories Act, 1948

The Factories Act has been enacted to consolidate and amend the law regulating labour in factories. The

Act aims at protecting human beings from being subjected to unduly hours of bodily strain or manual

labour. The Act provides that employees should work in healthy and sanitary condition so far as the

manufacturing process will allow and that precautions should be taken for their safety and the preventions

of accidents.

The Contract (Regulation and Abolition) Act, 1970

The Act applies to every establishment in which 20 or more workmen are employed or were employed on

any day of the preceding 12 months as contract labour and to every contractor who employs or who

employed on any day of the preceding 12 months 20 or more workmen.

The Environment (Protection) Act, 1986

The Act provides for protection and improvement of environment and for matters connected therewith. The

Act aims at prevention of hazards to human beings, other living creatures, plants and property. Under the

Act the Central Government shall have the power to take all measures as it deems necessary or expedient

for the purpose of protecting and improving the quality of the environment and preventing, controlling and

abating environmental pollution.

The Central Excise Act, 1944

The Central Excise Act consolidates and amends the law relating to Central Duties of Excise on goods

manufactured or produced in India. Excisable goods under the Act means goods specified in the Schedule

to the Central Excise Tariff Act, 1985 as being subject to duty of excise .Under the Act a duty of excise is

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levied on all excisable goods, which are produced or manufactured in India as, and at the rates, set forth in

the First Schedule to the Central Excise Tariff Act, 1985.

The Employees Provident Fund Act, 1952

The Act provides for the institution of Provident Funds, Pension Fund and Deposit-Linked insurance fund

for employees in Factories and other Establishments. The Act applies to (a) every establishment which is a

factory engaged in any industry specified in Schedule of the Act and in which 20 or more persons are

employed and (b) any other establishment which the Central Government by Notification specify giving not

less than two months’ notice of its intention to do so in the Official Gazette. Effective from 01.06.2001,

every employee drawing wages and Dearness Allowance up to Rs. 6500/-per month will become eligible

for membership from the very first day of his joining the establishment covered under the Act.

The Employees State Insurance Act, 1948

The object of the Employees State Insurance Act 1948 is to provide for certain benefits to employees in

case of sickness, maternity and employment injury and to make provisions for certain other matters in

relation thereto.. The woman employees also need no longer fear that they would be dismissed or removed

from service in case they expect babies. Such female employees not only retain their jobs but they get

maternity benefits for a period of twelve week before and after confinement.. Failure to fulfil those

obligations exposes an employer to prosecution.

The Payment of Gratuity Act, 1972

The payment of gratuity Act, 1972 was enacted to introduce a scheme for payment of gratuity for certain

employees employed in Industrial and commercial establishment as a measure of social security.

Industrial Disputes Act, 1947

The Act was enacted, with the object, interlay, of settlement of industrial disputes and to achieve industrial

harmony. The Act contains provisions for reference of industrial disputes and their settlement. In addition,

the Act has made provisions relating to lay off and retrenchment to establishments to which the Act applies.

Special provisions have also been made in respect of lay-off, retrenchment and closure in certain

establishments.

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Workmen’s Compensation Act, 1923

The act was enacted to provide for the payment of compensation by certain classes of employers to their

workmen. The act contains provisions for payment of compensation for personal injury caused by accident

or any disease or various kinds of disablement (partial or whole or temporary or permanent etc.), all arising

out of or in course of employment.

METHODOLOGY

Research methodology is a systematic analysis of a problem and reach a conclusion. It may be

understood as a science of studying how research is done scientifically. The study is done through

collecting primary data and secondary data.

1. PRIMARY DATA

Primary data are those data which are directly collected or which are the first hand data.

Primary data are accurate and reliable. These data’s are collected by interaction of staffs,

consumers, interviewing managers.

Primary data are collected by direct interview with department heads.

2. SECONDARY DATA

Secondary data are those which have been collected by some other person for his purpose.

They are usually in shape of finished products. Secondary data consist of catalogue,

manuals, magazine, annual reports, and internets. Secondary data are collected by

Annual reports of V guard industries ltd

Periodical , books published by the company

Official websites of v guard

LIMITATIONS

Limited time schedule for study

Busy work schedules of the employees forced to depend on secondary data.

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CHAPTER 2

INDUSTRY PROFILE

INDUSTRY PROFILE

Like every other industrial sector in India , the Indian electronic industry too is slowly emerging

from out of its “ protective cover” .for far too long has Indian industry remained shackled and

consequently inward looking .Over the past fifty years there was no exposure to global players and

competition , with the result that the industry grew up in a sheltered environment , each of these

interventions was aimed at securing protection for oneself and ensuring growth of one’s own

organisation at the cost of industry and nation at large . Lack of global competition encouraged a

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“cost plus” approach, where every conceivable cost increase was passed on to the customer .There

was thus no motivation to reduce cost.

Since last decade India has witnessed what global players have achieved and what they are

capable of achieving .We are becoming aware of competition on our turf. In this scenario,

every company complains of increases competition, lower order books and shrinking margins The

Indian electrical / electronic industry is of course further besieged by the fact that there is a dearth

of business on account of lack of investment in the power infrastructure.

GLOBAL SCENARIO

There is a sizeable potential market for voltage regulators in Asia, South America, Africa and the

Middle East since their electrical generations and distribution infrastructure is still nascent. While

fluctuation in supply voltage in the United States is about 5 percent, it is around 20 percent in

Mexico and South America and 10 to 15 percent in developing nations of Asia. Such fluctuations

are very damaging, especially because most applications connected to the supply have many electric

components

Countries that lack a basic national power infrastructure generate power for individual

establishments on a small scale using crude facilities. Such plants, especially the ones located near

mines and oil wells, have substantial need for voltage regulation .The drive to modernize industrial

and telecommunications systems in developing countries has to be backed with investments in

voltage regulators to protect the equipment and extend their lives.

While customers readily invest in uninterruptible power supply (UPS) systems to safeguard against

black outs, they seldom feel the need to install voltage regulators because of the invisibility of power

fluctuations .This mind set has to be remedied by emphasizing the importance of controlling

fluctuations to prevent damage to loads connected to the supply . Greater customer advances about

advantages of each voltage regulating technology and the applications they are suited for can also

drive demand.

INDIAN SCENARIO

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Voltage stabilizer are considered to be a necessity in most parts of India to protect consumer

appliances like TV, refrigerators, air conditioners etc as many regions in India face problem of poor

quality power supply fluctuation & high voltage. Though some models of these appliances are sold

with built in stabilizer, many consumers still prefer to employ stabilizer for complete protection.

The total market size for the consumer durables market is about Rs 13600 crore in which CTV is the

largest contributor in this segment and the market has been estimated at 15.15 million units in the

year 2009-2010

(Source: IMRB international survey – august 2007)

The consumer durable sector has witnessed an overall growth of 27.5%in 2009 compared to the

corresponding previous year. The sectors which have recorded excellent growth rates in terms of

quantity produced are air conditioners. Colour TV, and refrigerators which in turn lead to increase in

the growth rate of stabilizers in the market tremendously.

ENTRY INTO GARMENTS

Chittilappilly's empowerment of trusted people to implement projects and run them independently has been

a management practice, which was stretched to his wife Sheela. A garment unit was started and Sheela was

fully delegated to run the business. It was a bold decision to enter a diversified business activity.

Chittilappilly was confident that his wife with her skills in managing home, and interest and involvement in

social projects, could manage this garment unit. "It was her own idea", Chittilappilly remembers with

confidence. Chittilappilly was confident that it was a business suited to her frame of mind. The confidence

is reinforced by the fact that this sector is growing upwardly with much scope for ` exports. However,

Chittilappilly wanted the brand name to be delinked from V-Guard. Therefore, the garment products were

branded as "V Star". At present, the unit sells ladies garments and has a turnover of approximately Rs. 10.5

crones (2003-04). The garment was also outsourced as the management team had become experienced in

running business with complete out sourcing. At present, the unit faces much competition from

unorganized sector, which is virtually exempt from tax burdens. However V Star's products are targeted

towards the brand conscious up segment consumers enabling the price to be higher than the unbranded

garments. V Star products are sold through selected outlets where choosy and finicky women flock in.

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REALIZATION OF A GREAT DREAM: THE THEME PARK

Chittilappilly continuously exercised delegation to his trusted senior management team consisting of Mr.

Vijayan, the GM, Mr. Antony Sebastian, the DGM and Mr. Jayaraj, the AGM, and others. A. major

intention was to set apart his time for creative conceptualization of new projects. Moreover, it enabled him

to get out of the monotony in mundane and routine operations for which his management team is l lore

thorough than Chittilappilly himself. It was his desire to do something unconventional and different from

his main stream of business activity. He used to spend his leisure time in going to amusement parks than

going for shopping. A visit with his family to many such amusement parks in India and abroad created so

much passion for starting an amusement park in Cochin. He said a man to his desire not because of the 18

acres of beautiful land he possessed at Kakannad, the suburb of Cochin, but because he wanted to be truly

creative and unconventional in his new endeavours. Moreover, he was confident that an amusement park of

this kind would generate rich cash inflow due to its attractiveness to a vast majority of fun-loving Keralites.

A market research by V-Guard team showed that more than 50 % of the visitors to parks located in

neighbouring Tamil Nadu are Keralites. Chittilappilly's confidence was strengthened by the belief that this

project with its comparatively lesser portion of variable expense and at current level of fixed cost can

generate higher sales revenue and profit with reasonably higher margin. Without a second thought, he

conveyed his new idea to his management team and separated a set of creative-minded subordinates for

exploring and exploiting this opportunity. Eighteen acres of land was added to the existing property to

convert the land into a beautiful landscape. The team was sent to different amusement parks in India and

abroad and they were energized to go into action.

It took two years of meticulous planning and action for Chittilappilly's team to open the floodgates of V-

Guard amusement park to the public in 2000. While selecting human resources for Veegaland,

Chittilappilly was not particular not to pick up anyone having previous experience in water theme parks,

nor did he choose an architect who had experience in designing theme parks. This was because he was

apprehensive of stereotyping and imitation, which would hamper the creative and innovative culture that V-

Guard team possessed. "A seasoned architect wouldn't accept my ideas", Chittilappilly says. Therefore, a

young and dynamic architect was chosen for this Herculean task. Yet Chittilappilly confesses that some

premature ideas were implemented in the initial stage which had to be rectified later. The visit to leading

theme parks in India and abroad by the selected empowered team and their experiential learning put

tremendous confidence in the team. Chittilappilly was only coordinating their visit and action plans. It is

amazing to note that even the food and beverage team intended to run the restaurants and eat-outs in

Veegaland were from V-Guard Itself. Attention to every detail and precision and the hard labour of the

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team made a highly cherished dream a reality. In 2005, Veegaland is completing its fifth year of operation.

People visit Veegaland just like they go for religious pilgrimage. The beautiful and clean ambience of

Veegaland is a unique experience for the visitors. No wonder many members of the maintenance staff are

engaged in painting and repainting the inside of the theme park to upkeep the fresh outlook. Although

school children constitute the major segment, Gulf malayalies are a niche segment and brand ambassadors

of Veegaland. These NRIs give good word of mouth publicity for the theme park.Guard's strong dealer

network helped very much in promoting Veegaland in distant parts of Kerala and outside. A theme park

like this is affordable and matching with the life style of Keralites.

The investment in the park is comparably so high that the facilities, design, service and amusement level

are unmatchable. Hence, the investment has caused entry barriers for other ambitious business groups to try

their fortune in a theme park. The scale and magnitude of visitors is very encouraging according to the

management team of Veegaland. In the peak months of March, April and May, the number of visitors rises

to as high as 5,000 per day. This unexpected boom in the number of visitors necessitated major

modification and expansion involving doubling of the capital investment. With an entry fee of Rs. 3 50 on

weekend days and Rs. 280 on other days, and 2/3rd of that for children, it is good money that the business

brings. Even with a low figure of 500 visitors per day during lean season, Veegaland was able to achieve a

turnover of Rs.18.5 crore and a net profit of around Rs. 5 crore in 2004. Even with a daily cost of Rs.

30,000 for electricity and nearly 200 permanent staff, the management makes it a point not to shut the doors

for public even on day of leanest traffic.

Encouraged by the positive outcome and personal satisfaction, Chittilappilly enjoys from this venture.

Chittilappilly's vision stretched to Bangalore—making a jewel in Bangalore, a water amusement park

which is expected to be much more attractive than the Vrindavan gardens. The project is underway at the

outskirts of Bangalore. As in the past, a team is cut out from V-Guard, and Veegaland now headed by

Chittilappilly's own Australian-educated engineer son and his wife. The park is to be spread over a large

span of 80 acres when it becomes fully operational. It is comparable to the world-class theme parks. The

investment cost is Rs. 65 crore. Seventy-five percent of the financing is through loan.

FACTORS GOVERNING THE GROWTH OF THE INDUSTRY

Every industry thrives on some supporting factors . in this connection there are few factors

governing the growth of electrical and electronic industry:

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Research and development played an important role to the increased productivity and higher

value added electrical and electronic products.

Foreign investments accelerated growth in production and export as well . to expand their

business ,foreign companies have done huge investments which lead developing countries in

establishing production units

Global industries like medical, telecommunications, industrial and automotive industries

have been cordially supported by electrical and electronic industry.

Increase in income changed living standards of the common mass. As a result , it increased

in the demand of electronics especially consumer electronics product globally

Asia pacific region is emerging as the most spinning place for the consumer electronics

industry, as the market remains still unreached.

Innovation has played importantly in this industry .it led to a consistent demand for newer

and faster products and applications.

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CHAPTER3

COMPANY PROFILE

COMPANY PROFILE

V-Guard Industries Limited is an India-based company. The Company operates in three segments:

electronics, which includes voltage stabilizers, uninterruptible power supply (UPS) and digital home UPS;

electrical/electro mechanical products, which includes polyvinyl chloride (PVC) insulated cables, pumps,

water heaters, fans, LT power and control cables, and others, which includes solar water heaters, gas water

heaters, water level controller and windmill energy. During the fiscal year ended March 31, 2010 (fiscal

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2010), the Company produced 310,403,260 meters of PVC insulated cables; 2,888 kilometres of LT power

and control cables; 18,000 solar water heaters, and 20,000 pumps.

Kochi, 28th May 2010: The Board of Directors of V-Guard Industries Limited, the electronic and electrical

major today considered and adopted the audited financial results Company for the year ended 31st March,

2010.

Backed by a growth in the white goods and electronic and electrical segments, the Company’s net profit

surged by 46.85% to Rs.25.47 Crore for the year ended 31st March, 2010, from Rs.17.35 Crore for the last

year.

HISTORY

. The foundation of the business was laid with the formation of a Partnership Concern viz. by their

Promoter in the year1977 which was engaged in the business of manufacturing and marketing voltage

stabilizers under the brand name “V-Guard”. In the year 1992, Premier Electronics, the partnership concern

was dissolved and Mr. Kochouseph Chittilappilly continued the business as a proprietary concern. Also, in

the year, 1985, Mr. Kochouseph Chittilappilly started another proprietorship concern by the name of M/s

Prompt India for marketing of the products under the brand name of V-Guard. Subsequently, M/s Prompt

India changed its name to M/s V-Guard Industries. On February 12, 1996, our Company was incorporated

under the name of “V-Guard Industries Limited” under the Companies Act, 1956, with the Registration No.

09-10010 of 1996 having its registered office at 44/1037, Little Flower Church Road, Kaloor , Cochin-

682017, Kerala,

India .With effect from 1st April, 1996, their company took over the business of the proprietary concern i.e.

M/sV-Guard Industries, on going concern basis for a lump sum consideration of 234 lakhs and carried on

the business of the firm namely manufacturing and marketing of electronic and electro mechanical

appliances.

With effect from November 15, 2001 their Company was converted into a private limited company and

again got converted into a public limited company on August 1, 2007 and received a fresh certificate of

incorporation in the name of “V-Guard Industries Limited”. Their Corporate Identity Number is

U31200KL1996PLC010010.

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The company now has diversified into a multi-product company which now manufactures and markets

Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors,

Insulated Electrical Cables(House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar

Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way.

MAJOR EVENTS AND BREAK THROUGH

1977 : Mr KOCHUSEPH CHITTILAPPILY set up premier electronics with an investment

of Rs 100000 and with just two employees. Two refrigerator stabilizer were manufacture each day

1980 : Launched AC stabilizer

1982 : Started another unit called “Universal Electronics”

1983 : Started “supreme Electronics”

1986 : Started “prompt India” . Expanded operations outside Kerala by opening of

Tamil Nadu branch, followed by a branch in Karnataka. Prompt India started

Marketing stabilizer in the name of v guard

1987 : Launched Servo-Controlled Stabilizers

1989 : Prompt India converted into ‘v guard industries’

1992 : Launched v guard pumps and started a new branch office in Andhra pradesh

1996 : v guard industries became a public limited company. Launched v guard

Water heaters and wiring cables.

1997 : launched Aquatron, an electronic water level controller for overhead water

Tanks

1998 : launched UPS

1999 : launched digital stabilizer and diversified into electric cables business with

V guard cable manufacturing unit at Coimbatore.

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2000 : turnover crosses INR 1000 Million mark

2001 : Launched compressor pumps. Company is converted into PVT ltd for

Better manoeuvrability

2002 : launched v guard solar water heaters

2003 : solar water heater manufacturing unit and electro mechanical works for

Manufacturing pumps in Coimbatore becomes operational. branch office

Started in Delhi

2005 : launched solar water heaters with evacuated glass tube collected

Technology

2006 : launched v guard fans. Branch office in Bhubaneswar, Pune and Hubli

2007 : new branch offices at Vijayawada. , Bhopal, kalaamb, Vadodara, Kanpur

Nagpur, Raipur, Jamshedpur, Ludhiana, and Jaipur. Turnover crossed

INR 2400 million marks. V guard industries became a public limited

company

2008 : Listed in BSE and NSE. launched inverters & LT cables, new factories at

Coimbatore & Kashipur established.

2009 : new LT cable factories at Kashipur and Coimbatore become operational

2009 : opened manufacturing facility for water heaters and fan at Kalaamb, HP

2010 : turnover crosses 4600 million marks

CERTIFICATION, AWARDS AND RECOGNITION

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Best entrepreneur in Kerala awarded to Kochuseph Chittalllappilly , CMD, V guard

industries pvt ltd.(1993)

Highest individual income tax payer from the state 1993 to 1995.

Vyavasaya jyothi award given by the Ernakulum chamber of commerce. (1996)

Industry excellence award for medium scale industries awarded by the institution of

engineering (India) ,cochin(1998)

Millennium businessman of Kerala awarded by business deepika (2000)

Business man of the year awarded by dhanam magazine (2007)

Kerala no 1 consumer durables product category from dhanam magazine

Fact MKK nayar memorial productivity award for the year 2006-2007 from Kerala state

development corporation

PROMOTERS OF V-GUARD

Mr. Kochouseph Chittilappilly, Post graduate in Science majoring in Physics from Calicut

University.

Ms. Sheela Kochouseph, B.Sc, Home Science graduate from University of Calicut.

BOARD OF DIRECTORS

Managing Director:

Mr. Kochouseph Chittilappilly is a post graduate in Science majoring in Physics from Calicut

University. He started his career as a Supervisor in an electronics company, where he worked for

3 years.

Chairman:

Mr. P.G.R Prasad is a Certified Associate of the Indian Institute of Bankers, Chartered

Financial Analyst and Certified Financial Planner, Financial Planning Standards Board India. He

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was inducted to the Board of Directors of V-Guard as an Independent Director on 16 th August,

2007.

Executive Director:

Mr.Mithun Chittilappilly is a Post Graduate in Finance from University of Melbourne, Australia.

Mr. Mithun after completing his Graduation in Commerce joined V-Guard to be trained in the

various departments of the company.

INDEPENDENT DIRECTORS

Mr. C.J George

Aged 48 years, is a Post Graduate in Commerce, Certified Financial Planner and a Research Scholar

with School of Management Studies of Cochin University of Science and Technology. He joined the

company as an Independent Director on 16th August 2007.

Mr. A.K Nair

Appointed as the Non Executive Director of the Company on 27 th May 2009 Mr. A.K.Nair holds a

Bachelor’s degree in Mechanical Engineering with Masters in Business Administration and has over 45

years of Industry experience.

COMMITIES

Audit Committee

Remuneration Committee

Share transfer/ Shareholders Grievance Committee

IPO Committee

VISION

Let us endeavour to make v guard a trusted household name.

MISSION

1. To offer a range of products at affordable prices, which add to comfort of life through saving

in manual labour time and energy or for entertainment

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2. To make their products meet international quality standards and provide trouble free

performance.

3. To adopt designs, which support timely brand efficient post sales service.

4. To continuously innovate and add value to their products, if needed with technical

collaboration.

Quality Policy / Processess

V-Guard has a holistic, enterprise-wide approach to quality. Utmost care is taken while selecting the

various components that go into production. Sourcing is done from manufacturers of repute. Each

component is checked for quality compliance, and those that do not meet set parameters are rejected.

Various checkpoints along the production line ensure quality standards are adhered to. Post-production

inspection and certification ensures each individual product that moves off the assembly line conforms

to internationally accepted quality and performance benchmarks. It is V-Guard’s commitment to quality

that has made it ‘the name you can trust’.

ISO9001

V-Guard's ISO 9001 certified factory for manufacturing electrical wiring cables is set up at Coimbatore,

Tamil Nadu.

PRODUCT PROFILE

PRODUCTS

Stabilizers

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V-Guard is the largest selling brand of electronic voltage stabilizers across India. 5 Millions Of

customers were experienced the quality of protection of V-Guard stabilizers for their home appliances.

Since 1977 onwards, V-Guard Stabilizer provides reliable and trusted protection from voltage fluctuations

and used to safeguard the electronic home appliances like Television, DVD, and DTH Receiver, Music

system, Home Theatre, Water cooler, Refrigerator, Deep Freezer, Air conditioner and Microwave oven. V-

Guard Stabilizers are designed with significant features like HMC Technology, Fail Safe circuit protection,

High and Low voltage Protections, Time Delay Protection and Built In Thermal Overload Protection.

Cables

These are manufactured in conformity with ISI standards at an ISO 9001 certified manufacturing plant

located at Coimbatore in Tamil Nadu. V-GUARD PVC wiring cables are manufactured in conformity with

ISI standards at an ISO 9001 certified manufacturing plant located at Coimbatore in Tamil Nadu. The HFT

technology used in their production ensures absolute safety from electrical hazards. Multi-core flat/round

cables (up to 3 -core) are available. Each coil has an assured length of 90 meters.

Pumps

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V guard pumps are made according to ISI standards and specifications using high quality components

and meet high performance standards. They are known for their sturdiness, durability and

dependability. The superior technology used in the construction ensures better efficiency and lower

running costs. More than 150 different models are available with capacities ranging from 0.25 HP to 25

HP, and are ideal for domestic as well as for agricultural purposes.

Self Prime & Mini Monobloc Pumps

Centrifugal Pumps 

Open well Submersible Pumps 

Jet Pumps 

Compressor Pumps  

Single phase bore well submersible pumps 

3 Phase Bore well Submersible 

3 Phase Centrifugal Monobloc 

3 Phase Open well Submersible

UPS

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Incredibly Intelligent! The trusted companion for the computer, driven by high end features like

advanced PWM – MOSFET Technology with PID Control, Zero Power Drain Technology to prevent

Deep Discharge of battery, OFF-MODE battery charging and intelligent software shutdown to provide

high quality in power management.

Models available in OFFLINE UPS are:

UPS 60 Royal 

UPS 70 Vismaya Plus 

UPS 120 EB 

Online-UPS - Single Phase to Single Phase 

Online-UPS - Three Phase to Single Phase 

High frequency true online UPS

Electric Water Heaters

V-guard Electric Water Heaters (Geysers) are manufactured in the-state-of-the-art production set up and

comes with ISI mark and Pentad Protection System (PPS). Its outer body is made of rust proof, shock proof

ABS.

The futuristic 'Energy Saving' technology and the 5 unique safety features developed in-house with

R&D excellence, make it the most economical and safest water heater. Fine quality components combined

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with sleek, elegant design in varied colours complement the decor of your bathrooms and kitchen,

perfectly.

Instant Water Heaters 

Instant Gas Water Heaters 

Storage Water Heaters

Solar Water Heaters –

Solar water heaters were launched by the company in the year 2002. The manufacturing base of solar water

heating systems has since been improved substantially with the total number of 49 manufactures securing

Bureau of Indian Standards (BIS) certification for their products,

V-Guard Solar Water Heaters, a truly International quality product manufactured at the use the highly

efficient Evacuated Tube Collector system enabling optimal utilization of solar energy. The PUF insulated

stainless steel storage tank prevents heat loss. V-Guard Solar Water Heaters dramatically cut electricity

bills, help conserve energy and are environment friendly.

They are available in: 100 Lpd, 125 Lpd, 200 Lpd, 300 Lpd, 500 Lpd and 1000 Lpd for domestic use, and are

easy to install and last a life time. V-GUARD ETC solar water heaters are also manufactured for industrial

applications that is for pool heating, large hotels, large hospitals, factories etc. and are available in 2000

Lpd,3000 Lpd,4000 Lpd and 5000 Lpd and also according to the requirements.

Electric Fans –

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V-GUARD fans are sleek and elegant, provide excellent air circulation. Double ball bearings ensure they

keep whirling smoothly for years. The hub and blades have a powder coated finish and rust resistant.

‘HIGH ANGLE’ Technology used in blade design ensures wider coverage. The fans are available in a

range of colours to suit the interior décor.

CW 1548 

CW 2048 M 

CW 3348 

CW 3124 M 

SF 4048 M 

SF 6148 M 

SF 7048 M 

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Chapter 4

Department profile

DEPARTMENT PROFILE

Customer service department

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Electronic and new projects department

Electro mechanical department

Finance and accounts department

Human resource and administration department

Mechanical and electrical department

Marketing department

Supply chain management

Systems department

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ORGANISATION STRUCTURE

s ORGANIZATION CHART

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CUSTOMER SERVICE DEPARTMENT

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This department deals with the relationship that the company maintains with the public . they mainly

deal with providing after sales service to the customers .this helps them in maintaining their

customer base and meeting their expectations.

It has total of 15 employees in this department .the customer service of this company done through

275 service centres in 20 states.

Department chart

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Head of

Department

Manager

Zonal

In charges

Branch in charger

Service in charge

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TYPES OF SERVICES PROVIDED

a) Service at service spot

V guard provides service through service centres located in different states customers who

detect complaints can bring them to the nearest service centre to get the required service.

b) Service at dealers spot

Serviced is provided through the dealers who deal with v guard products . In this case , the

customers can approach the dealers with the defected product and the dealers return the

products after the complaint has been rectified.

c) Service at customers spot

Service is also provided at the spot where the customers are. In this case, technicians are

sent to the customers after the complaint has been reported .According to their policy,

complaints should be rectified within 24-48 hours of registering the complaint.

Levels of service

i. Customer satisfaction

It is ensured that all the complaints are solved within 24 hours of receiving the complaint .

employees are assigned to visit the customers spot for solving issues that might have

occurred while using the product and even replacing the product if required. The service

charges are collected as per the approved manual

ii. Customer care

As per the company policies, all the details regarding the service terms , warranty details ,

service charges etc are to be displayed in front of the service centre. After the service has

been done , feedback from the customers is collected . this improves them in correcting

their flaws in the service provided and to serve them better. Feedback regarding the

quality of the products, after sales service etc is collected by visiting the dealers dealing

with their products.

iii. Customer delight

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V guard ensures that they provide service as per the customers’ demands and expectations

Channels for registering complaints

Various channels have been provided to the customers for registering their complaints. They

are:

Through dealers:

The customers are able to register their complaints with the company through the dealers

dealing with their products.

Directly contact to service centres

Customers can report their complaints by contacting the service centre that is the closest to

them.

Contact through helpline

The customers can contact through their toll free number 1800 3000 1800. Customers

from any state can contact the branch office in the state through this number

Register the complaints through mail

The customer can also register their complaints through mail.

Service efficiency management

The efficiency of the services provided are measured by doing the following

Checking the number of complaints solved within 48 hours

Service audit reports

Feedback received from marketing department

Feedback received from dealers

Feedback received from end users.

ELECTRONICS AND NEW PRODUCT DEPARTMENT

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This department is in charge of coming up with the new and innovative ideas, conducting a study on

feasibility analysis.

A total of 138 employees belong to this department. This included quality controllers who are appointed at

various factories. These quality controllers ensure that the processes are being followed as instructed by the

head office. They ensure that the quality of the product is uniform with that of the products of the other

factories. The quality controller approves the components that are being used in the outsourced factories.

They provide such works to charitable institutions like Cherupushpa electronics, Sengo Paul’s

systems .They produce 1.5lakh stabilizer a month. V guard has about 62 factories in all over India.

Department chart

p

Production:

The production dept is in charge of looking into the production patterns and the processes that is to be followed in all the factories. They make sure that the patterns and products are uniform and according to the requirements

Product development:

The product development department conducts research regarding the feasibility of the new product that may be implemented by the company.

IMK ADOOR Page 38

Electronics

And new product

Production

Department

Product

Engineering

CARC New projects

Product

Development

MRP

Senior manager

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Product engineering:

Product engineering department product standardizes the process that is supposed to follow and the work that is to be done in the factories. The processes that are formed at the head office are given to the quality controllers that are appointed at the various factories. They ensure that the processes are followed as per the orders from the head office.

Component research and approval centre (CARC)

This department is responsible for testing each component that is to be used in the manufacture of a product. The test is done over a period of 21 days in which the suitability and usability of the component is tested .It is checked whether it meets the expectations of the company.

Components as minute as screws, bolts, etc used only after they have been tested at this centre. Suppliers who are interested in supplying their materials to the company are made to submit a sample with the centre. Major suppliers are Keltron and in cap.

New projects

This department concentrates mainly on new and innovative ideas. They initiate new

concepts and if found feasible, hands over it the production department foe making into

reality. Home ups was such one product which was conceptualized couple of years back and

is now one of their top selling product.

ELECTRO MECHANICAL DEPARTMENT

This department coordinates the activities of the outsourced units. It deals with design aspect of

each product. They take the feedback and after analysing it, makes the necessary corrections. It

looks after the production of pumps and motors. The total division consist of 102.they are engaged

in the agriculture, domestic and industrial segment. This department consist of 85 employees

Department chart

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Head of

Department

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FINANCE DEPARTMENT

Business as we know is concerned with the financial activities. In order to ascertain the financial status

of the business every enterprise prepares certain statements, known as the financial statements. Financial

statements refer to two statements which are prepared by a business concern at the end of the year.

These are (i) income statement or trading and Profit and Loss Account which is prepared by a business

concern in order to know the profit earned and loss sustained during a specified period; (ii) position

statement or balance sheet which is prepared by a business concern on a particular date in order to know

its financial position.

Department chart

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Deputy

Manager

Senior

Engineer

Assistant

Manager Executives

CFO

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CURRENT RATIO

Current ratio may be defined as the relationship between current assets and current liabilities. This ratio,

also known as working capital ratio, is a measure of general liquidity and is most widely used to make

the analysis of a short term financial position or liquidity of a firm. It is calculated by dividing the total

of current assets by total of current liabilities.

Current ratio=current assets/current liabilities

Current Ratio

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Head accounts

Secretarial State &

Local tax

Internal audit Costing

Inventory management

Indirect tax & vendor Mgt.

Legal & compliance

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Current Ratio

2005-2006 2006-2007 2007-2008 2008-2009 2009-20100

0.5

1

1.5

2

2.5Current Ratio

current ratio

As a convention the minimum of 2:1 is referred to as a rule of thumb or arbitrary standard of liquidity

for a firm. A ratio equal to or near the rule of thumb is considered to be satisfactory.

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Year Current Assets Current Liabilities

Current Ratio

2005-2006 4,128.06 2,208.16 1.86

2006-2007 7,581.56 3,754.83 2.01

2007-2008 14,878.02 6,514.06 2.28

2008-2009 9,505.26 4,633.57 2.05

2009-2010 19,040.34 8,244.38 2.30

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Here, we see that expect for the financial year 2005-2006, The Company’s current assets are double the

current liabilities. The year shows an unsatisfactory current assets position. The ratio of current assets

over current liabilities is found to be increasing over the period though there has been a downfall in the

year 2008-2009 from 2.28:1 in 2007-2008 to 2.05:1. The current assets are 1.86, 2.01, 2.28, and 2.05,

2.30 times the current liabilities in the financial years 2005-2006, 2006-2007, 2007-2008, 2008-2009,

and 2009-2010 respectively. Hence, it can be inferred that the general liquidity position the firm over a

period of 5 years is satisfactory.

(Note: current liabilities are taken as 1 and current assets are given comparison to it.)

NET PROFIT RATIO

This ratio explains per rupee profit generated by sales.If the cost of sales is lower,then the net profit will be

higher and when we divide it with the net sales,the result is the sales efficiency.if lower is the net profit per

rupee of sales, lower will be the sales efficiency.the concerns must try for achieving for maximising the

ROI.This ratio is very useful to the proprietors and prospective investors because it reveals the overall

profitability of the concern. Net profit ratio establishes the relationship between net profit (after tax) and

sales, and indicates the efficiency of the management in manufacturing, selling, administrative and other

activities of the firm.

This ratio is the overall measure of firm’s profitability and is calculated as:

Net profit ratio= net profit (after tax) / net sales×100

This ratio differs from the operating profit ratio in as much as it is calculated after deducting non-

operating expenses, such as loss on sale of fixed assets etc.,from operating profit and adding non-

operating income like interests or dividends on investments, profit on sale of investments or fixed

assets, etc., to such profits. Higher the ratio, the better it is because it gives idea of improved

efficiency of the concern.

Net Profit Ratio

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Year Net Profit Net Sales Net Profit Ratio

2005-2006 920.48 16,972.86 5.42

2006-2007 1,823.93 22,227.48 8.20

2007-2008 3,742.31 27,811.00 13.45

2008-2009 1,734.65 31,677.67 5.47

2009-2010 2,547.26 45,408.91 5.60

Net Profit Ratio

2005-2006 2006-2007 2007-2008 2008-2009 2009-201002468

10121416

Net Profit Ratio

Series 1

NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The

ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory

return on its investment. Here we find that net profit is sufficient enough for the company. Though in a

low pace, the companies’ net profit if found to be increasing over the years. In the year 2005-2006 the

net profit was 5.42; 8.20 in 2006-2007; 13.45 in 2007-2008; 5.45 in 2008-2009; 5.60 in 2009-2010.This

ratio also indicates the firm's capacity to face adverse economic conditions such as price competition,

low demand, etc.

COMPARATIVE BALANCE SHEET

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For The Year Ending March 2009 And 2010

Comparative Balance Sheet (Rupees in Lakhs)

2009 2010

Increase/

Decrease

(Amounts)

Increase/

Decrease

(Percentage)

ASSETS

Current Assets

Cash in hand and at

bank

Inventories

Sundry debtors

Loans and advances

Total current assets

Fixed assets

Land and building

Plant and machinery

Furniture’s and fixtures

Other fixed assets

Capital work in progress

Total fixed assets

Investments

TOTAL ASSETS

LIABILITIES& CAPITAL

Current liabilities

Sundry creditors

Other current liabilities

409.11

3586.00

4875.33

634.82

9505.26

3687.06

2276.48

50.73

1113.95

2576.82

9705.04

1136.04

20346.34

1704.78

1831.75

741.42

9852.68

7559.92

886.32

19040.34

6001.86

3832.90

159.10

1235.43

288.75

1158.52

457.69

31016.55

2992.38

3909.74

+332.31

+6266.68

+2684.59

+251.5

+9535.08

+2314.8

+1556.42

+108.37

+121.48

-2288.07

+1813.48

-678.35

+10670.21

+1287.6

+2077.99

+81.22

+174.75

+55.06

+39.61

+100.31

+62.78

+68.36

+213.62

+10.90

-88.794

+18.68

-59.71

+52.44

+75.52

+113.44

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Provisions

Total current liabilities

Long term loans

Total liabilities

Equity share capital

Reserves and surplus

TOTAL

1097.04

4633.57

3067.64

7701.21

2984.75

9660.38

20346

1342.26

8244.38

8623.93

16868.31

2984.75

11163.49

s31016.55

+245.22

+3610.81

+5556.29

+9167.1

-

+1503.11

+106070.21

+22.35

+77.92

+181.03

+119.03

-

+15.55

+52.44

HUMAN RESOURCE MANAGEMENT

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DEPARTMENT CHART

HR policy

The basic principles of V-Guard human resource policies include:

Recruitment based solely on merit by following well-defined and systematic selection procedures

without discrimination.

Sustain motivated and quality work force through appropriate and fair performance evaluation,

reward and recognition systems.

Identify training needs within the organization and design and implement those need based training

programmes resulting in continuous up gradation of knowledge, skill and attitudes of the

employees.

Maintain a quality human resource management system plan, design, and train, equip and motivate

the dept staff to meet this standard of expectation.

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Senior officer

Director

Deputy GM

Senior vice president

ExecutiveOfficer Senior executive

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The HR practices

Most of the HR practices of V-Guard industries were a result of the vision of its founder and the culture

that they have been created over the years. The founder advocated simplicity and maintained the culture of

a small company and the employees were encouraged to share their learning experiences too.

Recruitment

V-Guard's greatest asset is its employees. It is committed to attracting, retaining, and developing the highest

quality and most dedicated work force possible in today's market. It strives to hire and promote people on

the basis of their qualifications, performance, and abilities, and is determined to provide a work

environment free of any form of discrimination both direct and indirect, including sexual harassments.

While recruiting new employees V-Guard takes adequate care to identify the right candidates guard focus

on recruiting candidates who display a high degree of learn ability, i.e. candidates who are open to learn

new things and supply the same in new situations we also place significant importance on professional

competence, academic excellence, analytical ability, term work, leadership potential, communication and

innovative skills, along with a practical and structured to problem solving.

Training

V-Guard human resource department believes that quality is the hallmark of any successful venture.

Quality training and development of human resource is realized through Identifying training needs within

the organization and designing and implementing those need based training programs to bring about

continuous up gradation of knowledge, skill and employee attitudes.

The following brief highlights V-Guard's training methodology for the comprehensive development of its

employees

Training plan

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Companies success in today's free market economy, only because their employees perform to their fullest

potential .alive to this home trust, V-Guard draws up on annual training calendar highlighting the training

activities for the year It also includes detailed discussions with the faculty to decide on the contest of the

training programs guard's training plan includes technical/functional programs (mechanical, electrical,

finance related and behavioural programs etc) ,covering a wide cross-selection of employees, as follows:

A week long induction program for fresher’s:

Development of top performer through leadership development programs aimed at bringing up

future leaders

Development of managerial staff through intensive management development programs tailor made

for them providing exposure to holistic understanding of the business, strategic planning, customer

relationship, enhancing share holder value, and financial management.

Sustained effort in training has led to creation of highly skilled and motivational employees ready to

take on higher roles and responsibilities in the company.

Performance appraisal

The first step towards carrying out performance appraisal at V-Guard is the evaluation of

personal skills for the tasks assigned to an employee during the period of appraisal .To evaluate the

performance ,different criteria like timeliness ,quality of work carried out by the employee, customer

satisfaction .peer satisfaction and business potential is considered The personal skill of the employees are

also evaluated based on their learning and analytical ability ,communication skills, decision making,

planning and organizing skills. Each of these criteria is measured on a scale and then evaluated. A

performance appraisal system is a strong tool in the development of human resources in the organisation. It

is considered as a mutual feedback to the management and thereby help to decide the carrier growth,

training needs and other human resources development, interventions required for each of them thereby

aiding their self development.

It is vitally important that every individual has a clear understanding of his or her work, objectives, and

responsibilities, because performance will measure against these.

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• Culture

At V-guard ,we have built a culture in tandem with the vision and values of the organization that makes v

—guard ,a great place to perform where members take pride in being a part of the V-Guard family, are

intellectually and emotionally bound with the organization, feel passionately about their goals and are

committed towards the organization's vision and values .complete ownership of the vision and values

ensures alignment of member's personal vision with organization's vision, thereby achieving focus in all the

endeavours.

Work culture emphasizes

Freedom to experiment

Continuous learning and training Transparency and openness

Quality in all aspects of work

Reward based on performance and potential

Company Policy

All selected candidates are initially placed on probation for a period of 6 months

On completion of probation period and upon recommendation by the head of the department, the

employee shall be absorbed and confirmed onto the rolls

Management cadre employees are directly appointed into the skills

Benefits and Perquisites

The benefits given to the employees are of two types, statutory and non-statutory benefits.

Statutory benefits

• Provident fund

• Employee State Insurance

• Employees Deposit Linked Insurance

• Service Gratuity

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• Labour Welfare Fund

• Bonus

Non-Statutory Benefits

• Reimbursement of travelling expenses

• Leave travel allowance

• Medical reimbursement

• Personal accident insurance and medi claim insurance

• Performance linked bonus

• Reimbursement of telephone/mobile rent

• Incentives to personnel

• Group saving linked performance

• Benevolent fund Expenses for purchase of suitcase

• Concessional loan

• Interest free vehicle loans

• Higher education loans for employees\

• Education allowance to employees' children

• V-Guard award for excellence

• Veegaland /Wonder Ia passes

• Discount offer for V-Guard products

• Suggestion awards

• Reimbursement of credit card renewal fee

• Best Article Award (V and We)

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• Contribution for employee’s marriage

• Performance linked incentive scheme

Types of Leave

Casual Leave

Sick Leave

Annual Leave

Marriage leave

Transfer leave

Maternity leave

Salary components

• Basic pay

• Dearness allowance

• House rent allowance

• Conveyance allowance

. Compensatory allowance

• Special allowance (10% of basic pay and dearness allowance)

• Additional compensatory allowance (based on place of posting)

• Fixed allowance

• Stores allowance

HR initiatives implemented in 2010

HR induction and orientation

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When new candidates are hired, they are invited for a one week induction and orientation programme to

corporate office and where the candidate is acquainted which each and every aspect of the organization. A

through integration with hr &business processes takes place. As part of the induction programme they also

undergo training on motivation, visit to our amusement park and also a visit to our cable factory located in

Coimbatore. All the new joinees have an open interactive session with the top management including our

managing director. A special induction manual was designed for new joinees together with an induction kit

which provide all the necessary details on the company, allowances and the facilities they are eligible for.

Sports & games activities

V-guard believes in "healthy employees bring better productivity". As part of our fitness movement we

have provided adequate infrastructure to conduct various kind of indoor as well as outdoor sports. We have

separate sports facility, which range from table tennis to badminton, gymnasium and tie ups with college

grounds to conduct cricket and football matches. company organizes inter-unit sports competition by

making a sports calendar on yearly basis to keep on promoting the spirit of sportsmanship across our

branches the sports activities will come to an end with the annual sports day scheduled in the month of

January 2010 where individual prizes would be awarded to winners and overall trophy to the department

scoring the maximum points .all the events were coordinated by the recreation club formed for this purpose.

Leadership development program

On the growing trajectory on which V-Guard is today, there is a strong emphasis on developing an effective

organization that uses its skills in leading and driving its growth. Hence, our company identifies future

leaders by identifying members who think holistically about the organization, by considering the big

picture and act for the greater good of the enterprise. These members are made to undergo coaching

sessions for meeting their developmental requirements enabling to become the real leaders to take the

organization to greater echelons!

Executive development program

All managerial cadre employees are nominated for executive development programs conducting internally.

Trainers are experts in the field and duration of the program was 6 months (2 days in a month) .training

methodology used were case studies, in basket techniques, business games etc.

Social welfare fund

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As part of the CSR initiative, we have started a welfare fund to help the ailing cancer patients in general

hospital, Cochin. Every month employees make voluntary contribution to this fund from the salary. Once

the amount collected, the medicines are purchased based upon the requirements of the cancer ward and it's

handed over to the doctor directly by the employees who visit the general hospital every month by taking

turns. This ensures that the medicine reaches the right person. We have contributed Rs 300,000 worth

medicines this financial year.

Departmental tours

As part of the goal setting process for the next financial year departmental tours were organized which

included term building and brain storming sessions. These tips helped the employees to think out of tile box

and give new suggestions in their area.

Employee counselling

Counselling programs were organized for all employees with the help of experienced counsellors from the

respective field.

Unique HR practices

As we all know requirements of training and experienced professional with the desired mindset is the need

of the hour for any organization to survive and grow in this competitive environment .while there is no

dearth of professionals in Indian industry and people are available in dime a dozen, but what is most

important and difficult to get is the right mindset. This can be easily substantiated by the number of

applications for every job listed on the famous jobsites needless to say that selection of the best candidate

with the desired mindset out of such large no of applicants is a very tedious take. With the business goal

being very high the pressure on HR to reduce the time lag for filling a position has substantially reduced.

Normally a position, which was regd. a month to be filled up, has now got to be filled up in 10- 15 days

time .this has made the job still more challenging.

To cope with the growing expectations of business and in order to give the organization a competitive edge

to the business we in v-guard have streamlined the whole system by integrating the HR fundamentals with

information technology and have adopted some practices unique to v-guard.

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Niyukta samaaya

This is our employer engagement programme which we have started in this financial year. The

session is conducted, by inviting employees department wise on a rotational basis every Saturday in the

afternoon, for a period of one hour. Two representatives from the HR department and a person representing

the top management would present in all the meetings. The program starts with a small introduction

followed by an open session where employees will be free to give their suggestions and speak out their

problems the open session is followed by games to promote team building and employees are encouraged

to exhibit their skills many fruitful suggestions were received from the employee's sides which were

implemented successfully.

Online recruitment management system

Under this planed system prospective candidates visit our website and can directly register their CV

for any position listed on the site. Similarly all consultants are also, required to post their CV

through this site. As a result duplication of CV is immediately identified and not accepted the CV

then comes data bank and for short listing /screening both the functional, users and HR dept. has got

the rights. Once a candidate is rejected, immediately information goes to the consultant or to the

candidate. In case this is selected for interview then the information goes for finalization of

interview at specified date and time. This speeds up the whole process as it does the initial screening

of the vital parameters in terms of a g e, qualification, experience, etc.

Meetings with workers

Creative problems solving when it comes to employees is also v-guards forte. The

company has regular line meeting at the manufacturing lines in the factory with the

workers to discuss and solve their problems then and there. Morning meetings are also a

norm at v-guard were the whole management together with the VP's gets together to

discuss the plans for the weeks.

MARKETING DEPARTMENT

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The marketing department is responsible for sales and promotions of products among the people so as to

have a ready market for them. A number of promotional measures are in action to maintain an upward trend

in sales of the company's products. Sales turnover of 5-6% is earmarked for advertising the products to

relevant segments. Both print and TV media are used for brand communication. Local and English dailies

and weeklies are used for advertisements. Stabilizer, pump set and solar and electric water heater

advertisements find their place in women magazines also. V Star, the separate garment division advertises

mainly in women magazines and TV media. The company believes that its dealers and distributors are the

best brand ambassadors. Therefore, a number of dealer incentive schemes are in force to keep the dealers'

momentum upward. Dealer's meet is held in every two years with the main intention of imparting relevant

sales skills and motivation and rejuvenating the social bond with them. The company's distributors are

exclusive stockists for its products and as such the term of appointment stipulates that only V Guard's

goods would be stocked and supplied by the distributor.

V-Guard also gives priority to the service sector. Also in far off areas like Idukki and Wayanad, franchisees

are present so as to reach out to their customers.

Department chart

There are 6 executives under each product in-charge. In case of distribution centers, a manager, sales

persons, van drivers and unloading boys are present. Training to all these persons is given on the basis of

the products they are handling.

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VICE PRESIDENT

KERALA HEAD

Product in charges of various products

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Types of Distribution activities

i) Distributor oriented sale

In this, the products are available only through distributors. V-Guard has 36 distributors and 3248 dealers

all over the country. The company provides their products to the retailers through the wholesalers.

Stabilizers and cables are mainly distributed through this method.

ii) Direct dealer operations

In this, the products are made available to the consumers through authorized dealers. Products like fans and

UPS are mainly distributed this way

iii) Direct end user

In this, the products are distributed directly to the customers. There would be any intermediaries between

the company and the customers. Products like online UPS, LT power cables and project coils are given

directly to the customers.

Credit Policies

V-Guard extends credit policies when needed. Such services are mostly given to the old dealers who have

been associated with the company for a long time. They allow such dealers to purchase products on credit.

They also accept post dated cheques.

Marketing strategies adopted

i. Company--> Distributors –-> Retailers —-> Customers’

In this strategy, the products are made available to the customers through distributors and retailers. The

company provides the products to the distributors who provide them to the retailers at the price set by the

company. Retailers provide the products to the customers as per their demand.

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ii. Company—-> Direct Marketing Association—-> Customers

In this, the products are marketed through direct marketing associations. Products like solar water heaters

and digital UPS's are marketed this way.

iii. Company--> Direct Dealers--> Customers

In this, the company markets their products among their customers only through authorized dealers all over

the country.

Promotions

Every year a budget is set aside solely for advertising expenses. V-Guard gives a lot of importance

in making their presence felt among the public and also making them aware of the various products

that they have to offer. Some of the was in which they promote their products are:

• Electronic and print media

• Dealer meets, Plumber meets and Electricians meets. This is done for the purpose of

product familiarity. Feedback is also collected at such events.

• Hoardings, lite and non- lite boards

• Acrylic boards

• Activities on radio station

Exhibitions in campuses for products like online UPS s

• Exhibitions like Vanitha Ice, Vanitha Utsav, Paarpidam, and Thrissur Pooram Branding

• Dummy displays in showrooms

• Salesmen meet

• Offers and gifts during seasons eg. Towels gifted with water heaters

• Wall paintings e.g. Sabarimala routes

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Research and Development

The research and development team in the marketing department is responsible for conducting surveys

about products. This survey is mainly done among the dealers to get their feedback about the demand

patterns of the customers and also ideas for products which have a potential in the market. They then

discuss with the concerned head of departments, management and technicians for their opinions. After this

they move onto the product enhancement stage.

Product strategy

V-Guard has different demand patterns for their products during the year. During the vacation time i.e.

during April and May, the demand for air conditioners is high and so is the demand for stabilizers. From

the month of November till May, the demand for pumps is high than during the other months of the year. In

the months of June, July, November and December, the demand for water heaters is high. During the

summer season the demand for freezers and coolers is high. During festival seasons like Onam and

Christmas, demand for televisions is high.

MEHANICAL ELECTRICAL DEPARTMENT

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Department chart

This department consist of 50 employees which looks after the corporate planning and also by

controlling its activities.

SYSTEMS DEPARTMENT

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Chief OfficerSenior manager

HOD

Chief Officer

Deputy

Engineer

EngineersAssistant

Deputy engineer

Assistant engineer

Engineers

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The system is responsible for maintaining the data in the organization. The data centre in v guard

is centralized and severs are maintained at the head office. The data recovery centre is maintained at

Coimbatore Semantic and MacAfee are the antivirus software used. .

The department consist of 16 employees

Department chart

. Employees working for companies like HCL and secure solutions are present in the

organization .reports are collected from these companies on daily and monthly basis. Software

development team present in the company handles the MIS activities. Updating format requirement etc

are done by this team

SUPPLY CHAIN MANAGEMENT

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Officers Executives Officers Executives

GM

Senior

Manager

Assistant manager

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SCM can be viewed as a pipeline for the efficient and effective flow of the products, material, services,

and information and financial from the suppliers through the various intermediate organisation or

companies to the customer. The extended enterprise perspective of SCM represents a logical extension

of the purchase and business logistics concepts. It consists of 10 employees.

SCM chart

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CORPORATE SOCIAL RESPONSIBILITY

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SCM

SUPPLY

MATERIAL

PRODUCT DIVISION

PURCHASE INVENTORY &LOGISTICS

STORE

SUPPLY DEVELOPMENT

TRANSPORTATION

SUPPLIER FIXES PRICE

SUPPLIER SELECTION

PO

FOLLOW UP

TRANSPORTATION

OWN GODOWN

RENTED GODOWN

DISTRIBUTION

DEALER

CUSTOMER

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They believe in the amalgamation of corporate management, sustainable development and global

responsibility in working toward a better society and thereby a better world. They are committed to

greening our environment, supporting the less fortunate and nurturing the downtrodden.

ROTARY-BINANI ZINC CSR AWARD

V Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private Sector) by the

Rotary Club of Cochin Metropolis, in association with NIPM Kerala Chapter and ICAI, Ernakulum Branch

for Best Corporate Social Responsibility Initiative by a company in the state of Kerala

Our Joint Managing Director Dr. George receiving the award

The Thomas Chittilapilly Trust

The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, in memory of his late father,

C.O. Thomas. It is an extension of the philanthropic and responsible values espoused at V-Guard. It is

dedicated to extending its reach to areas of health, education and care.

The trust provides health insurance cover for 1314 families from financially backward classes, 922 families

at Tholur Panchayat, Kerala and 105 families in Ramanagaram Taluk in Bangalore, Karnataka.

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It also conducts free health camps at villages and backward areas where the reach of proper health care is

absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur

and Ernakulum Districts in Kerala and Ramanagaram Taluk, Bangalore.

The trust has also made substantial contributions to NGO’s working for various social welfare causes like

Udhavumkarangal and the SOS village. It has also donated generously to many national level causes and

relief funds like the Prime Minister's Relief Fund, Kargil war victims, relief for the earthquake victims of

Latur and Gujarat, victims of the Orissa cyclone and the Tsunami Relief Fund of the Prime Minister as well

as the Chief Minister.

Shantimandiram

An old age home for women, providing shelter and care for those who are unable to care of themselves in

Parappur Village, Trissur, Kerala. It is managed by the Sisters of CMC Nirmala Province in whose able

hands the inmates receive love and care irrespective of caste and community. The facility accommodates 60

inmates at a time and is recognised by the Board of Control for Orphanages and other Charitable Homes,

Kerala.

True to its name, all facilities are provided free of cost and it is a haven of peace and tranquility where the

inmates spend the evening of their lives in dignity and comfort. Shanthimandiram celebrated its first

anniversary on 29th May 2010 along with the Inmates. The function started with the blessings of Fr. Franko

Kavalakkatt, Vicar, and Parappur Forona Church. Various cultural programmes have been performed by

the inmates of Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and

family. The sisters of Shanthimandiram also involved with the cultural programmes.

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Social Welfare Fund- an employee CSR activity

Social welfare consciousness being embedded in V-Guard work culture has motivated the employees to

join hands in reaching out in charity. The Social Welfare Fund was created out of the goodwill of the

employees who collate funds and donate towards cost of medicines for the poor in the cancer ward at the

Ernakulum General Hospital.

Stabilizer SHG activity

Since its inception V-Guard has been providing a mutually beneficial income generating option to women.

Women who have grouped themselves to form SHG’s (Self Help Groups) are distributed assembly kits for

voltage stabilizers. An efficient distribution and collection system networks the women with the company

and has been a resounding success for decades. It provides a stable income for their households and in turn

emancipation from poverty.

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Chapter 5

ENVIRONMENT ANALYSIS

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SWOT ANALYSIS

Overall, the industry’s future remains robust, and interested applicants will benefit from a holistic

learning experience; Many of the research, sales, marketing and advertising related roles will necessitate a

good on-the-job learning of target audiences, who may well be a totally new segment, based in never-

before visited Class II and III towns. In addition, those with technical backgrounds will be able to leverage

their knowledge and experience to constantly develop and innovate the product variants. With more MNCs

growing their Indian businesses, there is great potential to also learn best-in-class systems and management

skills.

SWOT analysis of the consumer durable industry

Strength

Presence of established distribution network in both urban and rural areas

Presence of well known brands

In recent years organized sector has increased its share in the market wise than the unorganized

sector.

Weakness

Demand is seasonal and is high during festive season

Demand of some of the products is dependent on good monsoons

Poor government spending on infrastructure

Low purchasing power of consumers

Opportunities

In India the penetration level of white goods is lower as compared to other developing countries

Unexploited rural market

Rapid urbanization

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Increase in income levels i.e., increase in purchasing power of consumers

Easy availability of finance

Threat

High import duty on raw material imposed

Chief imports from Singapore, China and other Asian countries

The Indian consumer remains one of the most upbeat globally. The Nielsen Global Consumer Confidence

study, conducted by Nielsen, a market research company revealed that Indians are "the most optimistic lot

globally who think that their country will be out of the economic recession in the next twelve months." In

fact, it is widely believed that the Indian market will fuel the growth of multinational companies in the

coming years. While most leading companies are cutting costs in the US and Europe, they see India as a

strategic market, which can fuel their growth.

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CHAPTER 6

PORTER’S FIVE FORCES MODEL ANALYSIS

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Porter's five forces is a framework for the industry analysis and business strategy development

developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization

(IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of

a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive"

industry is one in which the combination of these five forces acts to drive down overall profitability. A very

unattractive industry would be one approaching "pure competition", in which available profits for all firms

are driven down to zero.

Porter referred to these forces as the micro environment, to contrast it with the more general term

macro environment. They consist of those forces close to a company that affect its ability to serve its

customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess

the marketplace given the overall change in industry information. The overall industry attractiveness does

not imply that every firm in the industry will return the same profitability. Firms are able to apply their core

competencies, business model or network to achieve a profit above the industry average. A clear example

of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying

unique business models, have been able to make a return in excess of the industry average.

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Porter's five forces include, three forces from 'horizontal' competition:-

Threat of substitute products,

Threat of established rivals

Threat of new entrants

Bargaining power of suppliers

Bargaining power of customers

THE THREAT OF THE ENTRY OF NEW COMPETITORS

Profitable markets that yield high returns will attract new firms. This results in many new entrants, which

eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be

blocked by incumbents, the profit rate will fall towards zero (perfect competition).

The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which

entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms

can exit easily.

Economies of product differences

Brand equity

Switching costs or sunk costs

Capital requirements

Access to distribution

Customer loyalty to established brands

Absolute cost advantages

Learning curve advantages

Expected retaliation by incumbents

Government policies

Industry profitability; the more profitable the industry the more attractive it will be to new competitors

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THE INTENSITY OF COMPETITIVE RIVALRY

For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of

the industry.

Sustainable competitive advantage through innovation

Competition between online and offline companies;

Level of advertising expense

Powerful competitive strategy

The visibility of proprietary items on the Web

Used by a company which can intensify competitive pressures on their rivals? How will competition react

to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price,

quality, and innovation. Technological advances protect companies from competition. This applies to

products and services. Companies that are successful with introducing new technology are able to charge

higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology

advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a

business' own cost and thereby intensify pressure on its rival.

THE THREAT OF SUBSTITUTE PRODUCTS OR SERVICES

The existence of products outside of the realm of the common product boundaries increases the propensity

of customers to switch to alternatives:

Buyer propensity to substitute

Relative price performance of substitute

Buyer switching costs

Perceived level of product differentiation

Number of substitute products available in the market

Ease of substitution. Information-based products are more prone to substitution, as online product

can easily replace material product.

Substandard product

Quality depreciation

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(THE BARGAINING POWER OF CUSTOMERS BUYERS)

The bargaining power of customers is also described as the market of outputs: the ability of customers to

put the firm under pressure, which also affects the customer's sensitivity to price changes.

Buyer concentration to firm concentration ratio

Degree of dependency upon existing channels of distribution

Bargaining leverage, particularly in industries with high fixed costs

Buyer volume

Buyer switching costs relative to firm switching costs

Buyer information availability

Ability to backward integrate

Availability of existing substitute products

Buyer price sensitivity

Differential advantage (uniqueness) of industry products

RFM Analysis

THE BARGAINING POWER OF SUPPLIERS

The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials,

components, labor, and services (such as expertise) to the firm can be a source of power over the firm,

when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high

prices for unique resources.

Supplier switching costs relative to firm switching costs

Degree of differentiation of inputs

Impact of inputs on cost or differentiation

Presence of substitute inputs

Supplier concentration to firm concentration ratio

Employee solidarity (e.g. labour unions)

Supplier competition - ability to forward vertically integrate and cut out the buyer

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COMPETITION ANALYSIS IN V GUARD INDUSTRIES+

Porter’s five force framework helps to make a qualitative evaluation of a firm’s strategic position. By the

conducting this analysis we should be able to understand that the final external influence upon the

organization is the competitive environment. We should also be able to understand that the competitive

strategy of an organization and the need to secure particular competitive advantage over competitors are

important. We will find that an appraisal of the competitive environment is vital before plans laid down.

Let us see how the Porter’s five forces are applicable in v guard,

COMPETITORS are:

Servomax Logistics Everon Kidson

COMPETITION ANALYSIS

Much of the market in which v guard operates in its unorganised and fragmented of each of the products

from other manufactures in domestic or divisions of large multinational corporations as well as competitors

.They compete with their manufacturers on the basis of product range, product quality, product price after

sales service including factories based on repetition, regional needs and customer convenience. Their

completion varies for each of the products and regions. They compete different players in different products

in different regions. Companies’ major competitors for the stabilizers are vigil, premier, care, Shalimar,

Everest, Safeguard etc.

Major competitors for cables are Finolex , Polycab, anger etc. competitors for pumps are plays such as

Racold, Bajaj, venus ,Kirloskar .Competitors for solar water heaters Tata, BT. They also face competition

from Crompton greaves, Hawells, Polar, and Khaitan for electronic fans and APC for the products ups.

Our competition levels vary from each of the product in each region. In addition, the market share keeps

changing constantly with advent of new technologies and products. In present competitive environment

companies which develop effective, improved or reliable appliances and have strong customer focus in the

form of providing after sales service will be increasingly differentiated from other in the field.

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THREATS OF SUBSTITUTES

In built stabilizer are innovated.

So no need for buying separate stabilizers

Current trend is the use of natural product which is more healthy.

Zone valve can be used instead of pumps.

BARGAINING POWER OF SUPPLIERS

V guard has fixed certain standards in terms of price and quality for their suppliers.

V guard is getting copper wires and inputs from Karnataka, Andrapradesh, and Maharashtra at low

price.

Hence the bargaining power of suppliers is high.

BARGAINING POWER OF CUSTOMERS

Concentration of buyers are more hence the company’s bargaining power is high.

Differentiated products are less as stabilizer can only be used for tvs..

V guard produces high quality products which can overcome the customers bargaining power.

Switching is complicated to the customers because v guard’s brand name and trust. Hence the

power of buyers are low in v guard.

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Chapter 7

FINDINGS CONCLUSION AND SUGGESTION

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FINDINGS

The company made public issue in the year 2008

Several energy conservation measures are undertaken by the company

Continuous efforts are made by the R & D department for reducing the manufacturing costs.

As a result of intensive R & D, the size of the products was reduced conveniently.

Technology, which aids production, was imported in the year 2007 and 2009.

Technology imported in 2007 was not fully absorbed.

39 % of the shares are held by the promoters of the company.

The competition from the unorganized sector is severe

Improper coordination among the superiors and subordinates during certain situation

Increase marketing strategies for the promotion of air conditioners

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CONCLUSION

This organization study report is the result of my work and credible information I have gathered during my

period of association with the organization. I hope that the reality shock which I expect has stimulated me

to gather information to face the actual real time situations in the industry in the future which acts as an

impetus for future career prospectus. The study has also helped in getting an insight on the functions of the

departments in an organization practically.

The details obtained from the company for organization study are very useful for a

professional career and decision making. And the study was a great experience to

know all about the working of an organization.

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SUGGESTIONS

1) As the production is fast increasing, the energy conservation measures should be further improved.

2) New and improved products, which suit the needs of the consumers to the best, should be

developed.

3) R & D has been concentrating more on reducing the cost of production. It should also concentrate

on improving the quality of the company’s products.

4) Technology imported should wholly suit the company’s production needs so that full absorption of

the same is facilitated in future.

5) The company should increase its foreign exchange earnings.

6) At present, the FII’s are only less than a percent of the total shareholders. The company should

popularize itself and the products to attract more FII’s.

7) The rural markets have not been covered yet. The company should take necessary steps for the

same.

8) The company’s product should be made more competitive than the unorganized sector to meet with

the competition.

9) The company should take necessary steps to control the effect of continuous price fluctuation of raw

materials.

10) Stock of raw materials, especially copper, should be adequately maintained to avoid price

fluctuations.

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BIBLIOGRAPHY

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