Embed Size (px)
DESCRIPTION
Citation preview
CHAPTER - 1
INTRODUCTION
2
1.1 GENERAL OVERVIEW
An organization is a social arrangement which pursues collective goals, controls its own
performance, and has a boundary separating it from its environment. The word itself is
derived from the Greek word organon, itself derived from the better-known word ergon.
Organizational structure is a mainly hierarchical concept of subordination of entities that
collaborate and contribute to serve one common aim.
Organizations are a variant of clustered entities. An organization can be structured in many
different ways and styles, depending on their objectives and ambience. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, workgroup and
individual. Individuals in an organizational structure are normally hired under time-limited
work contracts or work orders, or under permanent employment contracts or program orders.
The organisational study was undertaken mainly to study the department functions of V-
Guard Industries ltd. Established in the year 1977,from the vision of one man, Kochouseph
Chittilapilly. V-Guard is nurtured by quality consciousness, passion for hard work and the will
to succeed. 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. V-Guard with its diversified products has a strong distribution and
marketing channel in small towns across India, which helps in tapping the rural and the interior
market.
3
1.1.1 OBJECTIVE OF THE STUDY
Primary Objective:-
The main objective of the study is to have a practical knowledge about the functioning of the
organisation.
Secondary Objective:-
To understand the organisation structure.
To study various functional areas of the organisation.
To understand how theory matches with practice.
To understand the duties and responsibilities of various department heads.
To identify the strengths, weakness, opportunities and threats of the organisation.
1.1.2 METHODOLOGY OF STUDY
The organisation study has been conducted by using qualitative form of analysis. But
enough attention is given for careful and complete observation of organisation and its
functions.
Sources of data collection
The main sources of primary data are:
1. Discussions and interviews with managers and employees of V-Guard Industries Ltd.
2. Observation method.
Secondary Data :
The major source of secondary data includes company manual brochures circulars, annual
report and various other internal documents. In addition to this related Articles from journals,
books, magazines, internet were referred.
1.1.5 LIMITATIONS
The main constraints or limitations for the study were:
Limited time available for the study.
Authorities of all the departments had a busy schedule and hence there was no
scope for detailed interviews or interaction with them.
41.1.5 LIMITATIONS
The main constraints or limitations for the study were:
Limited time available for the study.
Authorities of all the departments had a busy schedule and hence there was no
scope for detailed interviews or interaction with them.
5
1.2 INDUSTRIAL PROFILE
The Indian electrical equipment manufacturing industry is witnessing a sustained growth
momentum, with the industry registering a double digit growth in the financial year 2010-
11, in spite of sustained imports, especially from China and South Korea.
The domestic electrical equipment manufacturing industry clocked a 16.6 per cent growth
during the first quarter of 2011- 2012, the same as in the previous year, according to industry
estimates. The Indian Electrical and Electronics Manufacturers’ Association (IEEMA),an
industry association of manufacturers of electrical, industrial electronics and allied
equipment, has based these growth figures on the production and sales data collected from
its member organizations.
The electronics industry in India took off around 1965 with an orientation towards space and
defense technologies, which was initiated and controlled by the government. This was
followed by developments in consumer electronics mainly with transistor radios, black and
white TV, and other audio products. In 1982, the government allowed thousands of color TV
sets to be imported into the country to coinciding with the broadcast of Asian games in New
Delhi. The year 1985 witnessed the advent of computers and telephone exchanges, which
was succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the
golden period for electronics during which the industry witnessed continuous and rapid
growth.
From 1991 onwards, there was first an economic crisis triggered by the gulf war which was
followed by political and economic uncertainties within the country. Pressure on the
electronics industry remained though growth and developments have continued with
digitalization in all sectors, and more recently the trend towards convergence of
technologies. After the software boom in mid 1990s, India’s focus shifted to software. In
recent years, the electronic industry is growing at a brisk pace. It is currently worth $ 10
billion but according to estimates has the potential to reach $ 40 billion by 2011. The largest
segment is the consumer Electronic Spare Part, which is also the largest export segment of
components.
6
1.2.1 SECTOR OVERVIEW
Due to increased focus on power quality and energy efficiency by utilities, discoms and user
industries, demand for capacitors surged by 35 per cent in 2010-11. Rising demand from
power grid, independent power producer (ipp) and some utilities for high voltage (hv) and
extra high voltage (ehv) switchgear including products like automatic identification system
(ais), geographic information system (gis) resulted in a 28 per cent growth. Pent up demand
of medium voltage breakers for substation projects resulted in huge growth of more than 30
per cent.
A positive high is the increased participation from organized sector visible due to BEE
(Bureau of Energy Efficiency- star labelling programme), rapdrp (restructured accelerated
power development and reform programme) and cea’s (central electricity authority) recent
recommendations for utilities to procure minimum three-star rated distribution transformers.
Presently, Indian exports of electrical equipment are less than 1 per cent of the global trade.
With the electricity sector being a sunrise sector across the entire developing world, there
also exists a significant export potential for the domestic industry.
Industry experts believe the ideal way forward to sustain the growth momentum would be
faster goods and services tax (gst) implementation, creation of level playing field, increased
focus on exports and sme development. This will lead to further acceleration in the
industry’s growth process and contribute significantly reducing the power demand-supply
gap in the country.
1.3 ROBUST GROWTH OUTLOOK FOR CONSUMER DURABLES
IN INDIA
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.
7
The market for consumer durables is estimated at Rs 300 billion and is expected to reach Rs
500 billion by 2015. While the urban consumer durables market is growing at an annual
rateof 9% to 12%, the rural durables market is growing at 30% annually.
India is a power-deficient country with the per capita consumption of electricity at 566KW
as compared to the global average of 2782KW. With the improvement in per capita power
availability and consumption, the demand for electrical and consumer durable goods will
increase.
Factors governing the growth of electrical and electronic industry:
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. To expand their
business, foreign companies have done made 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.
8
CHAPTER – 2
COMPANY PROFILE
9
2.1 OVERVIEW
V-Guard Industries Limited is a house hold name across India, a Kerala based company,
manufacturing and marketing of electrical and electronic products.
Established in 1977, from the vision of one man, Kochouseph Chittilapilly, V-Guard is
nurtured by quality consciousness, passion for hard work and the will to succeed. With a
production of over 1, 25,000 Stabilizers and processing 500 tons of copper every month.V-
Guard Industries Ltd has crossed a gross turnover of Rs. 1000 crores for the financial year
2011-12. A point to be noted is that V - Guard had achieved a turnover of 100 crores in 2000
and has grown by a whopping 10 times in the last 11 years.
India’s largest manufacturer of voltage stabilizer (source: IMRB survey in India) enjoys
brand popularity in all over India and is now making a global presence with its increasing
exports and markets spread over the world.
V-Guard’s success is measured not in terms of financial considerations, but in terms of
customer satisfaction and quality that is built into every product. V-Guard has employee
strength of more than 1300 and over 5500 indirect employees through its SHG initiatives.
With nearly 230 distributors and service centres and above 9500 retailers serving the needs
of a 50 million customers, V-Guard stands as a market leader spread across all states in India
except North East and J&K,with prompt, efficient and courteous after-sale service, that is
the foundation for V-Guard’s excellent customer relations. In fact, millions of satisfied
customers have played a pivotal role in promoting V-GUARD’s image.
Currently V-Guard’s products are Electronic Voltage Stabilizer for TV, DVD, Refrigerator
and Air Conditioner, Digital Stabilizers, UPS, Monobloc / Jet / Compressor / Submersible
Pumps, Electric & Gas Water Heaters, PVC House Wiring Cables, LT Power & Control
Cables, Ceiling/Table/Pedestal/Wall mounting Fans, Solar Water Heaters, Inverters/Digital
UPS, MCB and Switch Boards. The company has electro controls division in a state-of-the-
art facility for the production of stabilizer cabinets, the fully automated, ISO 9001 Certified
Electrical Cable Division located at Coimbatore, facilitating the manufacturing of electrical
cables starting from 0.25sqmm size to 10sqmm size and the Solar Water Heater plant uses
International Manufacturing Technologies with high quality standards.
The ‘V-Guard’ brand name is a household name in India and helped a lot to promote other
products. At V-Guard, Quality is not an accident but a continuous process, beginning with the
10
careful selection of only the finest components through the best sources. From hi-tech product
designs to stringent quality checks at every stage of the manufacturing process, to ensure
world class performance, V-Guard’s passion for perfection gets first priority. Then comes the
service to the customers. At V-Guard success is measured in terms of customer satisfaction.
The pricing of the product also plays a major role in marketing. V-Guard does not believe in
creating an artificial demand for their product. Before a product is advertised it is made
available in the market so as to avoid inconvenience and confusion to the customer. V-Guard
Supply Chain Division is playing an important role in the safe distribution of goods all over
the country with speed.
In the meanwhile V-Guard had another ace up on her sleeve. A 20 crore P.V.C. cable
manufacturing unit at Coimbatore completed with imported machinery, now manufacturing
House Wiring Cables, Flat Cables, Round Cables, Submersible Cables and Power Cables.
V-Guard is also manufacturing Solar Water Heaters (Models ranging from 100 LPD to
10000 LPD) at its own factory located near to Coimbatore.
The company is also introducing two new products - domestic switch gear and induction
cooker in the market in the current financial year. This is the first entry of V-Guard in the
kitchen appliances segment.
2.2 COMPANY HISTORY
The foundation of business was laid with the formation of a Partnership Concern viz.
Premiere Electronics by Promoter Mr.KochousephChittilapilly in the year 1977 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 Chittilapilly continued the business as a proprietary concern. Also, in
the year, 1985, Mr.Kochouseph Chittilapilly 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, Company was incorporated under the name of V-Guard Industries
Limited culling ‘v’ from volt and a kangaroo mascot to indicate protection under the
Companies Act, 1956, with the Registration No. 09-10010 of 1996 having its registered
11
office at 44/1037, Little Flower Church Road, Kaloor, Cochin- 682017, Kerala, India.
With effect from 1st April, 1996, the company took over the business of theproprietary
concern i.e. M/s V-Guard Industries, on-going concern basis for a lump sum consideration
of Rs.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 the Company was converted into a private limited
company and 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.
V – Guard has now 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.
2.3 PROMOTERS OF V-GUARD
• Mr Kochouseph Chittilapilly, Post graduate in Science majoring in Physics from Calicut
University.
• Ms Sheela Kochouseph, B.Sc. Home Science graduate from University of Calicut.
2.4 BOARD OF DIRECTORS
• Managing Director:
Mr Mithun Chittilapilly 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.
12
• Joint Managing Director:
Dr. George Sleeba is a Graduate in Mechanical Engineering with First Class Honours
from Kerala University and M Tech in Industrial Engineering from IIT, Madras. Dr.
Sleeba has a Post Graduate Diploma in Management from All India Management
Association (AIMA) and Doctorate in Social Sciences from the Cochin University of
Science & technology (CUSAT).
• 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 was inducted to the Board of Directors of V-Guard as an Independent Director
on 16th August, 2007.
• Vice Chairman:
Mr Kochouseph Chittilapilly 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.
2.5 INDEPENDENT DIRECTORS
• Mr C.J George
Aged 49 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 27th 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 experience in engineering industry.
13
2.6 COMMITIES
• Audit Committee
• Remuneration Committee
• Share transfer/ Shareholders Grievance Committee
• IPO Committee
2.7 VISION
“Let us endeavour to make v guard a trusted household name.”
2.8 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
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.
2.9 BUSINESS STRATEGY
• Maximise revenue through capacity expansion and increase in efficiency.
• Reduction in cost of borrowing.
• Enhancing production efficiency and minimize process losses
• Reduce operational costs and be cost competitive
• Have a consumer centric approach
• Deliver value for money to our clients
14
• Adopt best practices in all functions and processes
2.10 MAIN OBJECTS OF COMPANY DURING INCORPORATION
To establish and carry on the business of manufacturing, selling, distributing or otherwise
dealing in all types ofelectrical, electro mechanical, and electronic appliances, equipment,
lighting and lighting fixtures, accessories and spares including stabilizers, electric motors,
pump sets, clocks, time pieces, watches, water heaters, washing machines, dish washers,
ovens, mixies, electric irons, refrigerators, television sets, air conditioners, communication
equipment’s photocopying machines, cameras, panel boards, relays, switch gears, switches
and control gears, circuit breakers, transformers, electric meters, water meters, uninterrupted
power supply systems, constant voltage transformers, accumulators and computers, security
alarms, security systems, door locks with or without power, padlocks, other locking devices,
printed circuit boards of all kinds and for all purposes whether populated or otherwise,
insulated cables, insulated and enamelled winding wires of all varieties and uses, all kinds of
tubes, pipes, pipe fittings, hoses, components, accessories, moulded goods of all kinds and
for all purposes including tanks, containers, bottles, toys and all other blown, moulded,
formed or extruded goods and articles, whether made of steel, alloys, stainless steel, PVC,
plastics, rubber or any other metal, or substance or materials, photovoltaic solar energy
devices/systems such as lighting, pump sets, audio-video equipment’s, fans and all kinds of
solar energy systems.
2.11 QUALITY POLICY/PROCESSES
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 manufactures 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 commitment to the quality that has made it ‘the name you can
trust’.
15
MNRE - CRISIL
The Solar Water Heater Division was awarded the prestigious MNRE – CRISIL rating
which indicates High performance Capability and moderate Financial Strength of the
company to undertake off grid projects in Solar Thermal Technology.
BIS CERTIFICATION
The PVC cable factory at Coimbatore bears the Bureau of Indian Standards certification for
quality of the cables produced.
The Pumps and motor factory at Coimbatore (Electro Mechanical Works) bears the Bureau
of Indian Standards certification (Licence CM/L - 3315141 as per IS 14220: 1994) for
quality of the pumps produced.
ISO 14001:2007
V-Guard factories at Coimbatore and Kashipur also bear the ISO certification for
conforming to the highest international standards of environment management systems. This
certification extends over manufacturing of products like PVC sheathed/unsheathed
insulated cables, LT power & control cables and solar water heaters.
ISO 9001:2008
The V-Guard R&D division at Cochin was awarded the ISO 9001:2008 for excellence in
quality management systems in Design and Development of Electronic Equipments proving
the efficacy of the efforts at V-Guard to reinvent products.
OHSAS 18001: 2007
Concern for employee safety has even lead to OHSAS certification of the Coimbatore and
Kashipur factories.
16
2.12 MILESTONES ACHIEVED
1977 Mr.Kochouseph Chittilapilly sets up Premier Electronics with an investment of
Rs. one lakh and with just two employees. Two Refrigerator Stabilizers were
manufactured each day.
1980 Launched AC Stabilizers.
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 Stabilizers in the brand name of V-Guard.
1987 Launched Servo-Controlled Stabilizers.
1989 'Prompt India' converted into 'V-Guard' Industries.
1992 Launched V-Guard Pumps and started 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 (Online & Offline).
1999 Launched Digital Stabilizer, diversified into Electric Cable business with V-
Guard Cable manufacturing unit at Coimbatore.
2000 Turnover crosses INR 1000 Million Mark.
2001 Launched Compressor Pumps. Company is converted into Private Limited for
better manoeuvrability.
17
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 Collector
Technology.
2006 Launched V-Guard Fans. Branch office at Bhubaneswar, Pune &Hubli.
2007 New Branch offices at Vijayawada, Bhopal, Kala Amb, Vadodara, Kanpur,
Nagpur, Raipur, Jamshedpur, Kolkata, Ludhiana and Jaipur. Turnover crossed
INR 240 Million Mark. V-Guard Industries became a Public Limited Company.
2008 Listed in BSE & NSE. Launched Inverters & LT Cables. New Factories at
Coimbatore &Kashipur established.
2009 New LT Cable Factories at Kashipur and Coimbatore became operational.
2009 Opened Manufacturing facility for Water Heaters and Fan at Kala Amb
2010 Turnover crosses 4600 million marks.
2010 New branch office in Madurai.
2011 Turnover crosses 7263.5 million marks.
2011 New branch offices in Ghaziabad, Dehradun, Patna and Chandigarh.
2012 Mr.Mithun Chittilapilly has become the Managing Director of V-Guard
IndustriesLtd. Mr.Kochouseph Chittilappilly continuing in the role of Vice
Chairman of V-Guard Industries Ltd.
The appointment of Mr.V.Ramachandran as Director-Marketing & Strategy
from April 2012 was also announced
Turnover crosses 1000 crore marks.
18
2.13 RECOGNITIONS
Best Entrepreneur in Kerala awarded to Kochouseph Chittilappilly, CMD, V-Guard
Industries Pvt. Ltd. (1993).
Highest Individual Income Tax Payer from the State 1993 to 1995 from the
Government of India.
VyavasayaJyothi Award given by the Ernakulam 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).
Most popular consumer product brand in Kerala awarded by Dhanam publications in 2006.
Productivity award 2006-2007 for medium scale industries by Kerala Productivity
Council.
Best productivity performance award 2007 in the medium industry segment by
FACT MKK Nair Memorial.
Businessman of the Year awarded by Dhanam Magazine (2007).
Award for corporate sustainability 2009, Times of India.
Samoohya Suraksha Award by the National Safety Council, Kerala Chapter (2010).
Award by Energy Management Centre 2010 in appreciation of achievements in
Energy Conservation and management in Kerala.
The Prestigious Management Leadership Award by Kerala Management Association
Award (2012).
19
2.14 PRODUCT PROFILE
PRODUCTS
1. Voltage Stabilizer
V- Guard stabilizers offer the best technology with features like automatic restart, turn-on
delay, time-delay system and high-low voltage cut-off that provide efficient and reliable
protection for electronic appliances against voltage problems.
V- Guard stabilizers are unmatched in every sense. It’s ‘jellybean’ design is registered to
prevent cheap imitations. V-Guard stabilizers come in different capacities for different
applications like Air conditioner, LCD TV, Music system, Refrigerator, washing machine,
microwave oven and treadmill.
2. Wiring Cables
V-Guard cables are manufactured in a fully-automated
ISO 9001 certified factory at Coimbatore and Kashipur.
ISI marked V-guard cables come with HFT Technology,
3-layer insulation and length assurance seal in every 90
meters. Multi-core flat, Round, LT Power Cables and
Control Cables are also available. All cables are available in FR and FRLS variants.
3. Power and Control Cables
V-Guard cables are manufactured in a fully-automated
ISO 9001 certified factory at Coimbatore and comply
Fig 2.2 cables
Fig 2.3 PVC Cable
Fig 2.1 Stabilizers
20
with world-class standards. All cable designs conform to IS: 7098(Part1) for XLPE and IS:
1554 (Part1) for PVC Insulated Cables for working voltages up to including 1.1 KV. These
high quality cables ensure protection against electrical hazards. V-Guard LT Power & control
Cables come in armoured and unarmoured variants.
4. Pumps
Ultra efficient V-Guard Pumps with ‘high-speed
pumping technology can pump water even from the
deepest of wells quickly. V-Guard pumps are made
from top-grade casting, fine components and high-
quality aluminium. With a wide application range, these
pumps are available in more than 400 models ranging
from 0.25 to 25 HP (Including 3-Phase models) for
domestic, agricultural and commercial purposes.
5. Geysers/Water Heaters
V-Guard offers a wide range of instant and storage
model water
heaters. The
latest ‘Energy
Saving
Technology’
with 5-star
rating saves up
to 50% energy
and the ‘Penta Protection system’ assures maximum
user safety.
The outer body is made of high-quality ABS and powder coated
metal.1,6,10,15,25,35,50,80,100 litre capacity water
heaters are available in different models like Electric
water heater, Gas water heater and immersion water
heater to suit bathrooms and kitchens.
Fig 2.4 Pumps
Fig 2.5 Geysers
21
6. Solar Water Heaters
V-Guards solar water heaters with international ETC
(Evacuated Tube Collector) technology are way ahead of the
competition, in terms of quality, technology. Approved by
Ministry Of New and Renewable Energy-Guard solar heaters
are completely eco-friendly and non-polluting. They are
available in 100, 125, 150, 200, 300,
500,1000,2000,3000,4000 and 5000 LPD capacities.
Manufacturing takes place at ISO Certified factory in Coimbatore.
7. Fans
V-Guard Fans with unique ‘High-Angled Technology’
and specially designed blades that facilitate ‘full
coverage’ of cool breeze in the entire room. The sleek
metal painted body and stylish design, add a touch of
class to the interiors. Fans are available in different
models and colours.
8. UPS (Line Interactive and Inline UPS)
V-Guard UPS series starts from 600VA to 60 KVA to match
the wide range of customer requirements from different
verticals. Some of its features are:
Microcontroller/DSP controller based technology
Line interactive and online UPS technology.
Capability to handle various types of loads.
Active power factor compensation design.
Off mode battery charging with HVP protection.
Over voltage protection module.
Generator/Inverter compatibility.
9. Digital UPS, Inverters, Batteries and Trolley
V-Guard digital UPS is equipped with advanced Micro-
controller based line interactive Technology and a host of
Fig 2.6 solar Water Heater
Fig 2.7 Fan
Fig 2.8 UPS
Fig 2.9 Digital UPS
22
features like MOSFET based Power Stage with PWM output, FRCM with UST (Uni Polar
Switching Technology) for uninterrupted back-up during power failure.
10. Switch gears
V-Guard switch gears have been designed with world class tripping mechanisms to ensure
maximum safety. It conforms fully to IEC standards. It has high quality moulded casing
with superior thermal and dielectrically properties. It has got improved and rugged design of
operating mechanism
11. Distribution boards
V-Guards distribution boards are designed with the objective of easy assembling and
inside wiring. It has got high quality surface treatment and superior powder coating and
has enhanced protection against corrosion. It is available in attractive colour shades and
aesthetic design. Phase selector DB’s, Plug and sockets and MCB enclosures are also
available.
23
Fig 2.10 Contribution per Product to Revenue
Table 2.1 Manufacturing and outsourcing facilities of VGIL
24
VGIL’s major chunk of revenue is generated through cables and stabilizer contributing 29%
and 23% respectively. Both the products grew substantially by 37% and 71% yoy. Further,
LT Cables, Digital UPS and fans individually registered triple digit growth at 168%. 146%
and 108% respectively. Other products such as water pumps, water heaters and solar water
heater reported expansion in its sales by 42%, 62% and 31% respectively.
Table 2.2 Product Wise Turnover (In Crores.)
25
0
10
20
30
40
50
60
70
80
90
Q3 FY 2012Q3 FY 2011
There has been tremendous growth by 45% in turnover in Q3 2012. The highest turnover is
for the product segment wires which contributes around 77 crores having growth rate of
47%.The wires is followed by stabilizer’s which accounts 28% growth. The highest growth in
turnover is for Digital UPS, trolley an batteries which accounts 395% respectively. The least
growth is for solar water heaters and electric fan which has growth of 11% and 16%.
2.15 MARKET SHARE
The company’s southern region contributes around 65% to the total revenues. Whereas rest
35% comes from the northern markets. Compared to the previous years the dependency on
the south Indian market has been decreased which is a positive sign for the growth drive of
V-Guard. The company strategy is to penetrate into northern markets and the management
expects around 40% will be northern markets share in FY 13. The company gradually plans
to increase 5% in other markets. With this strategy the management plans to take V-Guard at
a pan India level.
Fig 2.11 Graphical representation of product wise turnover
26
2009 2010 2011 2012
91%85%
70%65%
9%15%
30%35%
South India North India
2.16 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.
Fig 2.12 Region Wise Revenue
Table 2.3 Major Competitors (product Wise)
27
PRODUCT COMPETITORS
Stabilizers Vigil, Premier, V-Care, Shalimar, Everest, Safeguard,
Keeline, Blue Bird, Premier, Logicstat
Cable Finolex, Polycab, Anchor, Havells etc.
Pump Crompton Creaves, Kirloskar, Texmo, etc.
Electric Water Heaters Racold, Bajaj, Venus etc.
Solar Water Heaters Tata BP, Bajaj, Rancold
Electric Fan Crompton Greaves, Havells
UPS APC, Numeric, Emerson
However competition levels vary for each 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 and reliable home
appliances and have strong customer focus in the form providing after sales services will be
increasingly differentiated from the others in the field.
2.17 DISTRIBUTION CHANNELS
The Distribution network:
28
There are 230 distributors, 300 Direct Market Associations and 9000 retailers for the
company. The company follows a distribution dealership models depending upon the
products and how comfortable and economical the company is able to sell. For stabilizers and
pumps, the company follows distributors model and has more than 180 distributors network
largely in South India. For cables, wires and other company follows a mix of distribution and
dealership model. In states other than South India, the company largely follows this
distribution plus dealership models. It does not own a shop or any franchisees. No plans to
open its own shop or mall, given the high cost and lower success ratio in that model.
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.
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.
Fig 2.13 Channels Of distribution
29
III. Company--> Direct Dealers--> Customers
In this, the company markets their products among their customers only through authorized
dealers all over the country.
STATE No. of distributorsAndaman and Nicobar Island 3
Kerala 42Tamil Nadu 31Pondicherry 2
Andhra Pradesh 14Odisha 16
STATE No. of distributorsMadhya Pradesh 4
Gujarat 1Rajasthan 5
Chattisgarh 3West Bengal 3
Bihar 4
New Delhi 6
Haryana 15
Uttarkhand 1
Uttar Pradesh 22
Punjab 7
Himachal Pradesh 2
Jammu and Kashmir 3
Uttaranchal 5Chandigarh 2
STATE No. of DistributorsKarnataka 23
Goa 2
Table 2.4 ZONE 1 Distributors per state
Table 2.5 ZONE 2 Distributors per state
Table 2.6 ZONE 3 Distributors per State
30
Maharashtra 15
2.18 CORPORATE SOCIAL RESPONSIBILITY
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.
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 Panchayath, Kerala and 105 families in Ramanagaram Taluk
in Bangalore, Karnataka.
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.
31
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
tranquillity 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.
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.
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.
CHAPTER – 3
THE ORGANIZATION
32
3.2 DEPARTMENTS IN V - GUARD
Sl No. Departments
1. Supply Chain Management
2. Electronic and New project
3. Electro Mechanical
4. Systems
5. Corporate Communication
6. Mechanical and Electrical
7. Finance
8. Human Resource
9. Marketing
10. Customer Service
Table 3.1 Names of the Departments
CHAPTER – 3
THE ORGANIZATION
33
3.2.1 SUPPLY CHAIN MANAGEMENT
Supply chain management is a cross-functional approach including managingthe movement
of raw materials into the organisation, certain aspects of the internal processing of materials
into finished goods and the movement of finished goods out of the organisation and towards
the end-consumers.
The purpose of Supply Chain management is to improve trust and collaboration among
supply chain partners.There are above 100 employees under this department .The major
threat that SCM faces is duplication of the products of the company .SCM ensures the
coordination among the department through effective communication for achieving the
ultimate goal.
Objectives
To reduce lead time.
To reduce order to delivery cycle time.
To improving On-Time delivery.
To reducing warehouse Cost.
To enhance customer service.
To expand sales revenue.
Functions
The functions of this department can be studied under two heads
1. Inbound material movement function(Purchase Function).
2. Outbound material movement function(Logistics and Distribution).
34
The following are the activities under each function
Failure and Feedback Inventory
management
Vendor development
Vendor Rating Warehousing
Vendor approval
Price negotiations Transportation
Bench marking
Market intelligence Order fulfilment
Quality approval of
Raw materials
SCM
Raw material Purchase
Logistics control
Fig 3.2 Major activities Of SCM
35
DEPARTMENT CHART
VP (PURCHASE AND LOGISTICS MANAGEMENT)
DEPUTY GENERAL MANAGER (RAW
MATERIAL PURCHASE)
DEPUTY GENERAL MANAGER (LOGISTICS CONTROL)
CHIEF OFFICER
OFFICERS
CHIEF OFFICER
OFFICERS
Fig 3.3 Supply chain Management department
36
3.2.2 ELECTRO MECHANICAL DIVISION
The Electromechanical department of V-Guard industries ltd handles the production activities
of its products such as water pumps,electric fan, switch gears, industrial motors and also
electronic mixer and grinder which is in stage of development.
There are around 30 manufacturing units for the production of the products mentioned above.
PRODUCT MANUFACTURING UNIT
Water Pumps Coimbatore, Gujarat, Punjab ,Haryana
Fan Hyderabad, Own unit in Himachal Pradesh,
also imports from China.
Switch gears Completely manufactured in Hyderabad.
Industrial Motors Completely manufactured in Coimbatore.
There are 150 employees working under this department, most of whom are diploma
electronics holders and also engineers.
Objectives
•To provide cost effective and reliable products.
•To provide best quality pumps and motors.
•To provide products that is conforming to international standards
•To provide high power products with energy saving technology
Functions
Satisfying marketing need
- Making production as per requirement of marketing department.
Designing of product and development.
Table 3.2 Manufacturing units (Product wise)
37
Maintaining good quality system.
Auditing of systems and checking for any deviations in quality for taking corrective action.
Sub Functions
1. MARKETING SUPPORT FUNCTION
The electro mechanical department support the marketing department in several ways. The
engineers in electro mechanical department have got a better understanding about the product
and its features. Hence they can provide a better response to the customer’s queries.
2. TECHNICAL SUPPORT FUNCTION
The electro mechanical department also support the service department. When situations arise
where the staffs in service department is unable to handle the complaints of the customer, the
engineers from electro mechanical department supports them. They visit the site and fix the
problem.
3. VENDOR DEVELOPMENT FUNCTION: This function is about finding the right
suppliers for attaining raw materials required for production.
38
DEPARTMENT CHART:
The VP handles the overall activities of the department and is assisted by the deputy manager
and assistant manager. V-Guard industries ltd provides two types of pumps, the single phase
VICE PRESIDENT
DEPUTY GENERAL MANAGER
(PRODUCTION)
DEPUTY MANAGER (PRODUCT
DEVELOPMENT)
ASSISTANT MANAGER (MOTOR)
ELECTRONICS MECHANICAL
EXECUTIVES EXECUTIVES
EXECUTIVES
ASSISTANT
MANAGE
CHIEF OFFICER
S
CHIEF OFIICER
S
EXECUTIVE EXECUTIVE EXECUTIVE
Fig 3.4 Electro Mechanical Division
39
pumps and 3 phase pumps, within each are different categories.DGM (Production) takes
control of the product production activities.DGM(product development) deals with
development of new products. There are two separate divisions under it one dealing with
electronics and other with mechanical product development.The Assistant manager takes
control over the motor production alone.Under every heads there are executives which assist
others.
3.2.3 SYSTEMS DEPARTMENT
An organisation is managed by taking various decisions at the various levels of its
management hierarchy. Information is needed to take these decisions. Quality of decisions
will largely depend on nature and type of information provided for taking decisions.
Therefore, designing of an effective information system is important. The system is
responsible for maintaining the information in the organization. The data centre in v guard is
centralized and servers are maintained at the head office.
Objectives
Providing high availability of IT services.
Integrity of information in complete.
Security of data.
Role Of Systems
Procure system hardware’s, software and services.
Deploy IT services.
Maintain IT equipment.
Components
IT OPERATION TEAM
They procure hardware, software, maintain annual maintenance contract with
vendors.
IT TECHNICAL TEAM
They deal with systems administration, application support in SAP, portal(.net)
SAP FUNCTIONAL TEAM
It consists of specialists in finance, costing, production etc.
40
IT TEAM
IT Operations
PROCUREMENT: Capital Items, spares and consumables.
IT SUPPORT: Desktops, printers, CCTV etc.
SERVICES: Mail, Internet, Disaster recovery.
CORE APPLICATION: SAP, Intranet.
3.2.4 MECHANICAL AND ELECTRICAL DEPARTMENT
Fig 3.5 Systems Department
41
This department mainly deals with products such as:
Electric water heaters
Gas water heaters
Immersion heaters
Room heaters
Solar heater
Induction cooker
Among these products 60% of the manufacturing process of electric water heater is done by
V-Guard and the rest 40% is outsourced. Gas water heater. Immersion water heater, room
water heater and induction cooker are completely outsourced. Manufacturing units are mainly
located in Himachal Pradesh and Coimbatore.
There are ground 60 direct staff and 30-35 indirect staff under this department.
Objectives
To develop the product as per the market requirement.
Improve the quality of the products day by day.
To facilitate innovations in production.
To provide products with consistent performance.
Functions
Support the customer service department through technical assistance in case the
service department fails to solve or couldn’t reply to consumers queries and
complaints.
To design and develop the product as per the required standards.
To understand the requirement of the product in the market.
DEPARTMENT CHART
42
3.2.5 CORPORATE COMMUNICATION
Corporate communication is the message issued by a corporate organization, body, or
institute to its publics. "Publics" can be both internal (employees, stakeholders, i.e. share and
stock holders) and external (agencies, channel partners, media, government, industry bodies
and institutes, educational and general public).There is 7 employees working.
The entire process begins with earmarking the advertisement and promotion budget for the
year. This budget is further divided between the above-the-line activity (ATL) including
mediums like TV, print, radio, and below-the-line activity, which includes outdoor activities
like hoardings, dealer sign boards, collaterals, and plumber, meets and electrician, meets.
A 360 degree engagement is made toward consumers by reaching out them with mass media
and regional focused activity. IPL team of Kerala being sponsored by V Guard is one such
example.70% of the expense is for ATL and rest 30% for BTL.
Objectives
To flesh out the profile of the "company behind the brand" (corporate branding);
VICE PRESIDE
GENERAL MANAGER
(Manufactur
CHIEF OFFICER
(Admn.Gro
DEPUTY MANAGER
(Design)
CHIEF OFFICER(Product
Sr.MANAGER
CHIEF OFFICER
FANS
WATER HEATER
QC ENGINEER
S
QC ENGINEER
S
Fig 3.6 Mechanical and Electrical
43
To minimize discrepancies between the company's desired identity and brand
features.
To delegate tasks in communication;
To formulate and execute effective procedures to make decisions on communication
matters;
To mobilize internal and external support for corporate objectives
Functions
Creative Advertising and Public relations.
Media planning and buying.
Support to activities including design, purchasing mementos.
Printing
DEPARTMENT CHART
3.2.6 MARKETING DEPARTMENT
GENERAL MANAGER
CHIEF OFFICERS SENIOR OFFICERS
IN HOUSE DESIGNER
IN HOUSE DESIGNE
R
EXECUTIVES
Fig 3.6 Corporate Communication
44
This department performs all the business activities that direct the flow of goods and services
from producer to consumer, this may be through advertisements in any of the media or
through the sales promotion measures.V – Guard has got a technically skilled and motivated
sales team who understand changing customer requirements and shifting customer
preferences. They give base level feedback to Company which forms the foundation for
devising various promotional schemes and programmes etc.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.There are 200 distributors, 300 Direct Market
Associations and 9000 retailers for the company.
The company believes that its dealers and distributors are the best brand ambassadors.
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.
Table 3.3 Mode of appointing dealers
PRODUCT MODE
Stabilizer Appliances dealer
Water heater Appliances & electrical dealers
Pump Pump dealers
Wires Electric dealers
Fan Appliances, electrical & pump dealers
UPS Computer dealers
Online UPS Direct dealers
LT Cable Dealer & direct project
SWH/DU DMAs
Switchgear Electrical dealers
Induction cook top Appliances dealers
Dealers Promotion Activities
45
1. Margin
2. Schemes
3. Advertisement policy – press and TV from corporate office.
4. Dealer’s meet- held in every two years with the main intention of imparting relevant
sales skills and motivation and rejuvenating the social bond with them.
5. Below-the-line activity – state head budget
Marketing Strategy
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.
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.
Credit Policy
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.
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,
46
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.
47
DEPARTMENT CHART
The marketing activities are divided across 3 different zones each which has a vice
president(marketing).Under them are the executives of product incharge.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.
MARKETING
ZONE 1 ZONE 2 ZONE 3
M.V Muralidharan
VP- MARKETING
Deepak Augustine
VP- MARKETING
Surya Prasad
VP- MARKETING
PIC-
STABILIZER
PIC – WATER HEATER
DATA SUPPORT
PIC-
UPS
PIC-
SWH
PIC-
PUMP
PIC-
DUPS
PIC-3
PHASE PUMP
PIC-
SWITCH GEAR
PIC-
WIRE
PIC-LTCABLE
PIC-INDUCTION COOK TOP
PIC-
FAN
Fig 3.7 Marketing department
48
STATES AND BRANCHES UNDER THE 3 ZONES
STATE BRANCHES
Kerala Cochin and Palakkad
Tamil Nadu Coimbatore , Chennai
Andhra Pradesh Hyderabad,Vijayawada
Odisha Bhubaneswar
STATE BRANCHES
Madhya Pradesh Bhopal
Gujarat Ahmedabad
Rajasthan Jaipur
Chattisgarh Raipur
West Bengal Kolkata
Bihar Patna
Assam Guwahati
Other states under zone 2 : Delhi, Haryana, Dehradun/Uttarkhand, Uttar Pradesh, Punjab, Himachal Pradesh & Jammu Kashmir.
STATE BRANCHES
Karnataka and Goa Bangalore, Hubli
Maharashtra Mumbai, Nagpur
Table 3.4 ZONE 1 Branches
Table 3.5 ZONE 2 Branches
Table 3.6 ZONE 3 Branches
49
3.2.7 CUSTOMER SERVICE DEPARTMENT
Customers are the strength of every organization. V-Guard aims at making their products as a
trusted household name. For this, the product needs to meet or exceed the customer’s
expectation.This department deals with the relationship that the company maintains with the
public. They mainly deal with providing after sales service to the customers.
It has total of 70 employees spread across India and above 200 service centers across India .
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
1. 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.
2. 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.
50
DEPARTMENT CHART
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
HEAD OF DEPARTMENT
MANAGER
MSC & Help Line
Regional –in- charge
Regional –in- charge
Regional –in- charge
Branch –in- charge
Branch –in- charge
Branch –in- charge
Service-in-charge
Service-in-charge
Service-in-charge
Fig 3.9 Customer Service Department
51
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 official website
The customer can also register their complaints through www.vguard.in
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.
3.2.8 HUMAN RESOURCE DEPARTMENT
This department assure that the organisation will have adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of the enterprise and
which provide satisfaction to individuals involved.Its function is to develop an organizational
culture where superiors, subordinates relations, team work and collaboration among different
sub units must be strong and contribute to organizational, health, dynamism and employees
pride.
HR Policy
The basic principles of V-Guard human resource policies include:
1. Recruitment based solely on merit by following well-defined and systematic selection
procedures without discrimination.
2. Sustain motivated and quality work force through appropriate and fair performance
evaluation, reward and recognition systems.
52
3. 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.
4. Maintain a quality human resource management system plan, design, and train, equip and
motivate the department staff to meet this standard of expectation.
• Provident fund
• Employee State Insurance
• Employees Deposit Linked Insurance
• Service Gratuity
• Labour Welfare Fund
• Bonus
• 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 /Wonderla passes
STATUTORY NON STATUTORY Table 3.7 Statutory and Non statutory benefits
53
• Discount offer for V-Guard products
• Suggestion awards
• Reimbursement of credit card renewal fee
• Best Article Award (V and We)
• Contribution for employee’s marriage
• Performance linked incentive scheme
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. 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
54
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
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 shareholder 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
55
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.
Culture
V-guard 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
Salary components:
Basic pay
Dearness allowance
House rent allowance
56
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
UNIQUE HR PRACTICES
• Niyuktasamaya
This is employer engagement programme which we have started in 2010-
2011financial 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 age,
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
57
the whole management together with the VP's gets together to discuss the plans for the
weeks.
DEPARTMENT CHART
3.2.9 ELECTRONICS AND NEW PROJECTS DEPARTMENT
This department consist of two segments namely Research and development
and Production divisions.
DIRECTOR
ADMINISTRATION
GENERAL MANAGER
ADMINISTRATION
SENIOR GENERAL MANAGER (HR)
DEPUTY GENERAL
DEPUTY MANAGER(H
SENIOR OFFICER
OFFICER
SENIOR EXECUTIVE
ASSISTANT MANAGER
(CIVIL)
EXECUTIVES
ASSISTANT MANAGER (ADMINIST
RATION)
Fig 3.10 Human resource department
58
RESEARCH AND DEVELOPMENT
The ingenuity of the R&D team play a pivotal role in v- guards persistent quest for
innovation.A confluence of design and technological functions, the team relentlessly works
towards creating cutting-edge products. The strength of V- Guard emanates from its dynamic
R&D that painstakingly tests and refines product designs.R&D labs at Cochin and
Coimbatore explore and reinvent existing product technology and design. R&D for electronic
products and electric geysers are carried out in Cochin while electro-mechanical products,
electrical wires and solar water heaters anchor the Coimbatore R&D outfit. There are 22
employees under this division.
Functions:
1. Facilitate innovation in product.
2. Product development as per market requirement.
3. Improvement, modification, replacement of products
4. Supporting customer service department in terms of technical support.
DEPARTMENT CHART
R&D
VICE PRESIDENT
59
PRODUCTION
V-Guards products are manufactured using the latest technology in up-to-the-minute
manufacturing units,under stringent quality control measures, to ensure unmatched quality
and performance.There are 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
MANAGER-STABILIZER SR.MANAGER UPS
CHIEF OFFICER CHIEF OFFICER
SR. ENGINEER SR. ENGINEER
ENGR. ENGR.
ENGR.
ENGR.
ENGR.
ENGR. ENGR.
GENERAL MANAGE
R
POWER ELECTRON
ICS
PRODUCTION
PRODUCT
Fig 3.11 Research and Development
ENGR.
60
Manager (production) is in charge of 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.
Quality Control Lab:
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.
Product costing: This segment deals with the costing of the product after adding the cost of
raw materials and a margin of profit.
3.2.10 FINANCE DEPARTMENT
The finance department of a business takes responsibility for organizing the financial
and accounting affairs including the preparation and presentation of appropriate accounts, and
CHIEF OFFICERMATERIAL RESOURCE PLANNING
MANAGER(PRODUCTION
)
QUALITY CONTRO
L LAB
SR.MANAGER
ONLINE UPS
CHIEF OFFICER
CHIEF OFFICER
ENGINEERS
ENGINEERS
Fig 3.12 Production
61
the provision of financial information for managers.It is responsible for preparing journals,
ledgers, statements like trial balance, balance sheet, cash flow statement. It is also in charge
of the calculations of the income tax and also the payment at the right time.
The finance department had got 40 employees in the corporate office and around 65
employees outside the firm to support their activities. The finance department in V-Guard
Industries Ltd is headed by Mr. Jacob Kuruvila.
V-Guards share value in market ranges from 195 – 200 Rs. /share .V-Guard has implemented
ERP named Lakshya to make easy recording of transactions and better presenting of results
within limited time.
Functions
Managing cash transactions of the organisation.
Managing Accounts payable and Accounts receivables.
Maintaining Journal Voucher.
Remote cheque printing function.
Internal audit
Finalisation, consolidation of accounts.
Secretarial function
Tax remittance.
Scrutiny and approval of funds needed by various departments of the organization
Disbursement of wages / salaries.
V- Guard is expecting a turnover in sales from 1000 to 1350 crores in this financial year. Out
of the total turnover 65% is contributed by south Indian market in which Kerala alone
contributes 40%, thereafter Tamil Nadu and Andhra Pradesh. 35% of turnover is contributed
by northern states.
House wiring cable has the highest sales. Stabilizer’s occupies second position in sales and
Pumps in third position.
VP & CFO
DGM
(SECRETARY ACTIVITIES)
62
.
IMPORTANT RATIOS
YEAR Net Profit Net Sales Net Ratio
DGM(COSTING & APPLICATIO
N)
DGM(ACCOUNTS &
ADMINISTRATION)
DGM
(STATUTORY)
Sr. MANAGER
MANAGER MANAGER MANAGER MANAGER
CHIEF OFFICER
CHIEF CHIEF CHIEF
Sr. OFFICER Sr. OFFICER Sr. OFFICER Sr. OFFICER
OFFICERS & EXECUTIVES
OFFICERS & EXECUTIVES
OFFICERS & EXECUTIVES
OFFICERS & EXECUTIVE
Fig 3.13 Finance Department
Table 3.8 Net Profit Ratio
63
2007-2008 3,742.31 27,811.00 13.45
2008-2009 1,734.65 31,677.67 5.47
2009-2010 2547.26 45408.91 5.60
2010-2011 4263.67 72332.12 5.89
2011-2012 5080.10 98655.97 5.14
YEAR Current Asset Current Liability Net Ratio
2007-2008 14878.02 6514.06 2.28
2008-2009 9505.26 4633.57 2.05
2009-2010 19040.34 8244.38 2.30
2010-2011 33178.01 22178.66 1.49
2011-2012 28663.93 21420.43 1.33
CHAPTER – 4
SWOT ANALYSIS
Table 3.9 Current ratio
64
65
4.1 STRENGTHS
1. Company’s presence in the industry for around three decades.
2. Strong dealer network.
3. Diversified client base.
4. Diversified product base enabling de-risking of the business model.
5. Outsourcing capability.
6. Research and developmental capabilities in product design and technology.
4.2 WEAKNESSES
1. Excessive dependence on copper as it is the primary raw material for cable business
segment of V-Guard.
2. Seasonal demand for the products.
3. Company is subject to restrictive covenants in certain debt facility.
4.3 OPPORTUNITIES
1. Growing middle class consumption in India.
2. Unexploited rural market.
3. The penetration level of white goods is lower as compared to other developing
countries.
4. International consumer markets.
4.4 THREAT
1. Huge presence of unorganized market in segments which VGIL operates.
2. Volatility of raw material prices such as copper, aluminium etc.
3. Slowdown of economy affecting demand.
4. Increased competition in the product lines.
5. Adverse changes in government policies like laws to control pollution, monetary
policies etc.
66
CHAPTER – 5
OBSERVATIONS AND SUGGESTIONS
67
5.1 OBSERVATIONS
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. If the company is not able to
manage competition then it will affect severe growth.
Improper coordination among the superiors and subordinates during certain situation.
This leads to delay in certain orders, or the functioning of certain product
development programmes.
Increase marketing strategies for the promotion of air conditioners. They adopt direct
marketing strategy in order to increase sale and also provides after sales service.
Credit facility is provided for only trusted dealers.
5.2 SUGGESTIONS
1. The rural markets have not been covered yet. The company should take necessary steps for
the same.
2. The Company should frame up the market strategy to combat the competition from the
products in the unorganized sector.
3. The company should stock raw materials especially copper so as to avoid the continuous
price fluctuations.
5. The company should increase its foreign exchange earnings.
6. It’s better to establish own wholesale shops so that intermediaries can be reduced.
68
CHAPTER – 6
CONCLUSION
69
CONCLUSION
V – Guard proves to be a trusted household name due to the quality and support it offers to its
consumers. The company was able to achieve new heights year after year only because of the
understanding and coordination between the management and the staff.
V-guard has been able to develop new products as per the customer’s perceptions and tastes
and offering consistent performance of the products. The company also has a goodwill it has
brought up by the dedicated Social welfare activities it is doing in different parts of the India.
So in a nutshell we can say that the V-Guard is ‘the name which all can trust’. The company
is focussing on its vision for this “let us endeavour to make V guard a trusted household
name.”
70
71
