Acknowledgement Project 2

8/8/2019 Acknowledgement Project 2

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INTRODUCTION

Marketing is changing and if you are stuck in the old patterns of marketing you

may be taking your business down a destructive path. Consumers want more

engagement and interaction from those that they buy from. Our consumers have

faced an overstimulation of marketing messages over the last several years and

now in order to get their attention we have to come with new and innovative ideas

in order to get their focus on the particular product of the company.

Consumer are getting smarter and making choices. We are no

longer telling them what to buy; they are listening to other consumers and paying

attention to word-of-mouth marketing now more than ever.

As consumers we like to buy from people that others

recommend We like to purchase our products and services from people we feel we

have a relationship with.

Thus in short we can say that marketing is an on going process which

has many process which ultimately revolve around customer satisfaction because

in this present world if you can not satisfy the customer than your business is going

to be lacking behind Thus in order to keep the organization on the track the

marketing department undertakes much activity like pricing, competitor analysis

product designing, and packaging etc


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TOPIC REVIEW ABOUT COMPETITOR ANALYSIS

Thus Marketing should include competitor analysis on the part of the competitor

presence in the market. They should see the competitors presence in the market,

What are the customer needs and preferences is an organization competing to meet

and what they are being offered from others and What are the similarities and

differences between their products/services between the competitor and the

competing organization thus we should see what are the strengths and weaknesses

of each of their products and services and what are the prices they are offering to

the prospective customer because prices are the most important factor on which the

marketer has to focuses and we should also see the overall working of the

competitor on day today basis on the basis of which the strategies could be made

because the customer they are dealing we to deal that prospective customer too


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EXECUTIVE SUMMARY

Every student of post graduate diploma in management at Institute of environment and

Management College has an essential requirement to do Six to Eight weeks summer

training in any of the well reputed organization. The purpose of this program is to

acquaint the students with practical applications of theoretical concepts taught to us

during conduct of their PGDM program; it was a nice opportunity to have a close

comparison of theoretical concept in practical field, involving the use of the main

objective of the project.

Thus the main objective of the is to get the full knowledge

of the products of the HBL Power system ltd and what are they doing to get the

customer loyalty, to maintain there market in the respective field in respect of the

competitors presence in the market. This is also to find the preferences of customer

and there market knowledge and product information, information about the

presence of the rivals of HBL power system like Exide, Amaron okaya, Amco etc

and all the other options they have in the market.

What are the techniques they adapt to?

Know about the preferences and changing needs of customer?

HBL is also looking to tap the market in the segment by entering in automotive,inverter batteries.


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And also manufactures products required by many sectors thosecompanied are as follows.

DELTA

ACME

EMERSON

HBL POWER COPORATION Etc are the kind of the companies which

manufactures equipments like PIU (power interface unit) for telecom, IPS

(integrated power supply) for railways etc is some of the equipments which are

being made by them. Thus these are the companies which are manufacturing

batteries used in commercial and non commercial purpose and the companies

manufacturing other Equipments used by other sectors e.g. railways,

telecommunication, defense, industries, are being wholly are the part of theindustries.


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COMPETETIVE SITUATIONCut throat competition prevails in all form of business in todays world whether it

could be any form of business organizations due to changing condition of market

and consumer behavior pattern thus in order to fulfill the requirements of the

consumers the companies always tries to give them better than other which enables

them to compete them with watch other on the bases of different grounds.

Like wise under this industry stiff competition is prevailing the major player

which are manufacturing batteries like Amaron, Exide, HBL and others which are

producing batteries of all the categories e.g. tow wheelers, cars, trucks etc.

Competition is being done one the basis of some factors they are as follows.

1. On the basis of prices.2. On the basis of service provided.3. On the basis of product differentiation.

On the basis of services the competition is being done among each other

on the basis of the after sales services provided by the company to the

prospective customers like warranty, guarantee etc

Some of the company provides warranty for 24 months,

36 months and for a year and also replacement guarantee under some

conditions.

Like - Amaron replaces batteries up to 50%,

Exide replaces batteries up to 5% and,

HBL power system replaces batteries up to 90%.


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And also gives after ales service to their prospective customers related

maintenance of various kinds of batteries like cars bikes trucks inverter

batteries etc.

On the basis of product differentiation- there are number of different

variety of product are being produced by the companies in order to give the

customer the desired range of product so that it can not easily for them to

switch to another companies product.

Like Exide produces 7 or 8 kinds of batteries, Amaron

produces batteries of 10 to 15 and HBL produces more than 20 different

kinds of batteries for different segments of the society.

Apart from other product some of them produce goods for

defense like Exide produces batteries for submarine and HBL produces also

produces various other products used in many other defense armaments.

On the basis of prices- the competition in this industry being also prevails

on the basis of prices because prices of the goods is such which effect

preference of the prospective customers thats why prices is being set up in

such a way that it should be suitable for him and also should be fixed while

watching the cost of the product of the competitor of the industry because if

the prices will slightly high the consumer will switch to another companies

product.

Thus in market the major players which are giving HBL the

competition are Exide, Amaron, Okaya, Amco, luminous etc are some of the

players


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Glimpse about the Players in the Market

LUMINOUS:-

Luminous Power Technologies (P) Limited is a leading global company

delivering high quality power products for home and commercial

applications. The companys portfolio also includes products and services in

telecom infrastructure & renewable energy systems like solar, wind and

hybrid solution

The group businesses include Power Backup, Power Storage, Distributed

Power Generation, Renewable & Alternate Energy solutions and Physical

infrastructure solutions for IT & Telecom, Engineering Design & Support

services, Plug-in Hybrid Electric Vehicles and mobile phones & accessories.

Luminous apart from its dominating position in the domestic market has

strong foothold in over 32 countries worldwide. Its Global Technology


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Centers located in India, United States & China delivers cutting edge

technology that goes into making every luminous product a class apart from

its competitors. Luminous follows its proprietary UGC (Universal Grid

Compatibility) process to ensure consistency & very

High standards of reliability for its products across the globe. Luminous has

been consistently winning awards & accolades for market leadership and

excellent reliability of its products in domestic as well as international arena.

Luminous is the proud recipient of Frost & Sullivan Industry Technological

Leadership Award for market penetration in DC-AC Inverters in Non

Renewable Energy markets in Asia Pacific.


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AMCO

AMCO Batteries Limited of the Amalgamations Group is the leading batteries

manufacturer with a wide spectrum of world class high performance

polypropylene batteries for the automobile industry. AMCO is also one of the

leading manufacturerTwo Wheelers and the preferred choice for the Bikes, Scooters, Cars

and all other passenger vehicles. AMCO also supplies batteries to many companies such as

Hero Honda, TVS, HMSI, Yamaha, Bajaj, Royal Enfield etc. The company has a

track record of supplying 4-wheeler batteries to TAFE Tractors, Eicher Tractors,

Cummins India Ltd, Sonalika Tractors etc.


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OKAYA

We at OKAYA produce World Class Batteries for various Industrial & Domestic

utilities. We have products for any segment be it Telecom, Railways, UPS,

Inverters, Photovoltaic,E

V projects etc. Having five manufacturing plants, eachspecializing in different sphere of the industry has made it possible for OKAYA to

harness the World's latest technology, perfect it and incorporate it in its product

range, for the user's benefit. Through its consistent focus on quality, company

awarded by ISO 9001:2000 and ISO 14001:2004 certifications.


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Exide

Exide Industries Limited, India's flagship of the storage battery industry- is also

the largest Power Storage Solutions Company in South and South East Asia. It

designs, manufactures, markets and sells the widest range of lead acid storage

batteries in the world from 2.5Ah to 20,600Ah capacity, to cover the broadest

spectrum of applications.

Formerly known as Chloride Industries Limited, the company was a part of the

Chloride Group plc, UK. The leader in packaged power technology, Exide today

is India's largest storage battery company with widest range of both conventional

flooded as well as latest VRLA batteries.

It has Six factories strategically located all over India.

Collaborations with Shin Kobe and Furukuwa of Japan and Oldham of UK give it

a global dimension in manufacturing capability.

The company has subsidiaries in the UK, Singapore and Sri Lanka. Exports span

18 countries across five continents in a growing list of overseas customers.

Technology, innovation, quality and country-wide service network are the four


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pillars on which Exide achieves its high pedestal.

The R&D Center, set up in 1976, is counted among the premier battery research

facilities in the world and is recognized by the Department of Scientific &

Industrial Research under Ministry of Science & Technology, Govt. Of India.

Recognition of our pursuit of quality was achieved when RWTUV of Germany

awarded us the ISO 9001. We have also received ISO 14001 Certificate in

recognition of our eco-friendly production process.

For customers all these attributes transcendE

xide from a manufacturing companyto a solution provider. After all who can provide all these benefits together with its

wide range of products, the ability and competence to guide a user to select the

right battery for a particular application, skilled and experienced engineers for

erection commissioning and assured professional assistance throughout the service

life of a battery

Is some of the example of the competitor who all is competition to

HBL power systems in the market.


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COMPANY PROFILE

Background

HBL Power Systems Ltd has more than 30 years of experience and also

being acknowledged in the field of specialized Batteries and DC PowerSystems in INDIA. The company is the result of a merger between

Hyderabad Batteries Limited (1977) and SABNIFE Power Systems Ltd

(1986) in 1999. The company has its Head Quarters in Hyderabad, India

with factories and Sales Offices in various parts of the country. HBL also

has Offices, Distributors and Agents all over the Globe to cope up with its

ever-growing Export Business.

HBL power system is an organization which focus on batteries and

electronics and focus on customers in five major sectors and manufactures

products according to their needs the sectors are as,

INDUSTRY

RAILWAYS

DEFENSE

AVIATION

TELECOM


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Which gives HBL an opportunity to meet diversify customer needs, India.

And also HBL is being listed on BSE (Bombay StockExchange) and NSE

(national stockExchange).

HBL is committed to improving global competitiveness by sharing

knowledge, drive for innovation & growth, and investments in

internationally benchmarked technology & niche products.

INFRASTRUCTURE

The factories and various sales & services offices of the HBL power

corporation are being located in major cities of India nationwide and service

centers more than 100 locations with in the country from where all the

operations of the company are being managed by the dedicated employees of

HBL power system. Various locations of HBL power system factories

situated in India are as follows.

SHAMEERPET


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NANDIGAON

HARIDWAR

BHOOTHPUR


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VISAKHAPATNAM (VSEZ)

VIZIANAGRAM

(Above are some of the sites of the factories of HBL power system ltd in India)


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RECENT ACHIEVEMENTS OFTHE COMPANY

1.HBL Power Systems Ltd. Announces Setting Up Of JointVenture Company in Saudi Arabia to Manufacture

Industrial Batteries

HBL Power Systems Ltd. announced that it is the process of setting

up a Joint Venture (JV) Company in Kingdom of Saudi Arabia (KSA)

with Advance Electronics Company Ltd (a Government Offset Partner

Company) and Abdullah H Al Shuwayer & Sons T&C Co Ltd as local

JV partners. The JV Company will be named as Gulf Batteries

Company Ltd. The proposed JV is to setup a unit to manufacture

industrial batteries (NICAD, VRLA & LMLA) in the eastern province

of KSA at an estimated project cost of about $28 million, which will

be completed in three phases by 2011-12. HBL Power Systems' share

in the equity of JV Company will be about $2.9 million, which works

out to 40% of the total paid up equity Capital of the JV. An agreement

to the above effect was executed by all the partners in January 27,

2009.


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Organizational Structure

Chairman & Managing Director Dr. A J Prasad

Director Battery Technology Mr. Ashok nagarkatti

Director Operations Mr. J K verma

Directors Mr. P Ganapathi Rao

Mr. M S Ramakrishna

Mrs. Preeti Khandelwal

Mrs. M Kavita Prasad

Mr. V V Rao

COMPANY SECRETARY Mr. D Mabu Basha


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PRODUCT RANG

E OF HBLHBL Power system manufactures products for various markets of the industry like

railways, industry, telecom, defense and aviation the products of various sectors

are as follows.

RAILWAYS:-

(In railways signaling and level crossing warning)

-Batteries for Locos, coaches, signaling-

Nickel cadmium

Lead Acid


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Electronics

Train Charting &data logging

HF and Audio Track circuits

Electronics Interlocking Systems

Level crossing gate warning systems

SERVICES

HBL Rail also offers IPS for railways stations and does turnkey

signaling works on contracts including design, installation and

commissioning.

DEFENSE:-

PRODUCTS-

Electronics fuses


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Mines and grenade electronics

Laser weapon sights

Secure communications, Field Telephone Exchanges.

And various kinds of batteries

TELECOM:-

IT MANUFACTURES BATTERIES LIKE

Valve Regulated Batteries

Low Maintenance Lead Acid

Pure Lead Tin VRLA etc


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AVIATION

Nickel Cadmium Sintered Plate

SilverZinc

Pure Lead VRLA etc

INDUSTRY

Pure Lead Tin VRLA

Low Maintenance lead Acid

Valve Regulated Lead Acid

Nickel Cadmium Pocket Plate

Custom built battery charger

AC+DC Distribution Board etc


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THIS ARE THE VARIOUS KINDS OF BATTERIES AND ELECTRONICS ITEMS WHICH

ARE BEING MANUFACTURED BY HBL power system for the market segments stated above


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PRODUCT STATUS OF INDUSTRY

Among the products manufactured by organized sector are Batteries,

automotive Battery, Inverter Battery, UPS Battery, etc.

As the automotive segment of the industry is one of the organized sector of the

industry which constitute of many national and international companies as the

technology is improving in the automobiles sector need of better power source

requires to start up the latest cars, bikes and other commercial vehicles thus new

technology and improvements in the secondary power source which make them

starts and run on the roads like many companies introduced low maintenance

battery in the market under which there is less requirement to change he water in

can be changed in once a year \

Like wise the automotive product of HBL is egnite and Excel which are

the name of the batteries which are used in battery operated operated vehicle bikes

cars commercial vehicles trucks apart from it, it has mf battery for auto segment

means the are water free or dry battery

Liberalization of the economy has led to a flood of new entrants, including MNCs

due to good prospects and abundant supply.


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RESEARCH AND DEVELOPMENT IN BATTERIES

INDUSTRY:

The research and development need to the batteries industry to develop and

survives for long time with better status. The various institute and batteries

companies R&D results provide base for todays industry growth and

development. The research and development of products of battery, like battery

market research and company reports provides insights into product and market

trends, analysis opportunities, sales and marketing strategies will help local battery

unions to develop and spread world wide through obtaining this knowledge.

Specific on market share, segmentation, size and growth in the US and global

markets are also helps industry to expand its market worldwide even small unionalso.


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FINANCIAL POSITION OF THE

COMPANY

NO. Particulars 2008-09 2007-08

1. Net Sales 124390 97276

2. Operating Profit before interest,

Depreciation and 19977 15480

Extra-ordinary items

3. Other Income 509 370

4. Finance Cost 3883 3175

5. Depreciation 2784 1546

6. Extra-ordinary losses/non-recurring cost 136 103

7. Provision for tax & tax adjustment 4372 4075

8. Deferred tax liability 215 242

9. Net Profit 9096 6709


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During the next 18 months. This 18 months plan involves a capex ofRs.340 crores,

including term loans ofRs.250 crores. This is part ofRs.240 crores capex planned

last year.

DIVIDENDS:

Your Directors are pleased to recommend a dividend ofRs.3/- per equity share of

Rs.10/-fully paid up share @30% (Previous Year 15%) for the Financial Year

2008-09, subject to the approval of the members at the ensuing Annual General

Meeting. The proposed dividend including Corporate Dividend Tax will absorb

Rs.852.17 lakhs.


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SHARE HOLDING POSITION OF THE COMPANY

PROMOTEROWNED SHARE 70.19%

PUBLIC OWNED SHARE 14.30%

FII OWNED 7.75%

OTHERS OWNED 7.76%

PROMOTER

OWNED,70.19%

PUBLIC

OWNED, 14.30%

FIIOWNED,7.75%

OTHERS

OWNED,7.76%


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SECTION-2


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PROJECT PROFILE

INTRODUCTION

As the title of the project is competitive analysis of battery market with reference

to the city of Lucknow the focus of the study is to analyze the market condition

prevailing and the competitive situation among the competitor in the market

because as the current scenario is of the cut throat competition in any field of

market and also t becoming hostile because of new entrants in the markets.

As the market is becoming diversified and many companies which act as the giants

in the Indian market of specialized batteries like Exide, Amaron , HBL, AMCO,

luminous etc are ruling the market in meeting the demand by manufacturing

substitute source of energy as batteries which are not being used by house hold as

inverter but also automobiles batteries which is needed as starter also in backing up

computers power by manufacturing ups batteries not only this but also manufacture

the batteries and electronics components which are being used by different sectors

like railways, defense, aviation, telecom sectors of the country.


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The study then goes on to evaluate and analyze the findings so as to present a

clear picture of trends in battery market prevailing in the market.

Because many companies are aiming for high satisfactions who are

highly satisfied are much less ready to switch. High satisfaction creates an

emotional bind with the brand not just a rational preference. The result is highly

customer loyalty. Hence an attempt has been made to identify the customer attitudeand satisfaction on HBL BATTERIES.


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Objective of Studies

As per as the topic of the project report as competitive situation analyses in respect

to HBL batteries in accordance with the Lucknow city which enables us to analyze

the competitive situation of the battery market.

To see the impact which HBL has given to the marketTo see the consumer preference in respect with the other companies batteries

present in the market.

To give suggestion for the improvement and growth of automotive segmentsbatteries to HBL.

To see what sought of policies adopted by the companies attract theconsumer

To see the response of SMF batteries in the marketTo see during the survey who is the good service provider


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Project Methodology

Problem identification


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RESEARCH DESIGN

The Research Design of my project is based on two methods which are as follows:-

Descriptive

R

esearch

Exploratory Research

DESCRIPTIVE RESEARCH:-

As descriptive research includes survey and fact finding enquiries of different from

different kinds of respondents whose data provided could be analyzed and a result

can be achieved.

As we know in this kind of method is used it is termed as most ex post

facto research in which researcher tends to measure such items as preference of the

people, buying behavior etc descriptive research is mainly conducted through

survey under which comparative and correlative measures are being used


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EXPLORATORY RESEARCH:-

This is a flexible design which must provide opportunity for considering different

aspects of the problems and by building hypothesis the result can be predicted and

the interpretation can be give. The research conducted is primarily both

Exploratory as well as descriptive in nature. The sources of information are both

primary & secondary.

A well-structured questionnaire was prepared and personal interviews were

conducted to collect the customers and various dealers and shopkeepers

preferences in using different kinds of batteries which can be said as most

important part of an vehicle whether commercial or personal, because with the help

of an battery the vehicle starts.


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SECONDARY DATA

The secondary data are those which have already been collected by

someone else and which have already been passed through statistical problem. The

methods of collecting primary and secondary data differ since primary data are to be

originally collected while in case of secondary data the nature of data collection work is

merely that of compilation.

Secondary data collected from

Through ReferencesOffice data baseWeb SitesBooks


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SAMPLING PLAN

It contains the following things.

SAMPLING UNIT:-

The respondents who were asked to fill out questionnaires are the sampling units. These

comprise of dealers of batteries of batteries, single proprietor in this business and those who

produce their own battery operate houses like banks

SAMPLE SIZE:-

The sample size was restricted to only certain about to around 95 to 96 units, after rounding of

turns out to be 100 which comprised of mainly peoples from different areas of Lucknow due to

time constraints.

SAMPLING AREA:-

The area of the research was LUCKNOW, UTTARPRADESH

SAMPLING PROCEDURE:-

Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study

was done in order to know the accuracy of the Questionnaire. The final Questionnaire was

arrived only after certain important changes were done. Thus my sampling came out to be

judgmental and continent.


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Limitation of the study

y The area of coverage was limited to the different areas of Lucknow.y Sample size was limited to 110 and respondent turned were around 97.y Some of the respondent hesitated and didnt want to share the information

regarding different product.

y Time was also one of the problems regarding the survey


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Section-3


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THEORITICAL DUSCISSION ABOUT THE TOPIC

The past couple of years have been a roller-coaster ride for players in the Indian

lead acid battery market. From being powered by a virtual monopoly, this market

has witnessed a slew of new product introductions, technology innovations, the

emergence of domestic competition, joint ventures, and corporate consolidations

that have totally altered its landscape.

The lead acid battery market can be divided into two broad market spectrums:

industrial and automotive batteries.

Automotive Battery Segment

Liberalization of the Indian economy in the early 90s brought about a phenomenal

change in the Indian automobile industry. Through joint ventures or completely

owned forays, a number of leading international auto giants have entered India and

established their production bases. Their demand for world-class batteries for their

vehicles urged Indian battery manufacturers to tie up with international players or

buy technology, so as to upgrade their offerings to meet the high standards

expected.

With consolidation and growth being the maxim of most auto players today, we are

seeing increased participation and partnership of battery manufacturers with auto

players in creating battery solutions for new vehicle introductions.


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The automotive segment contributes in excess of 55 percent of the total turnover of

the Indian lead acid battery market. Automotive batteries are SLI (start, light, and

ignition) batteries, though they are expected to fuel a greater number of functions

including in-vehicle entertainment systems, power steering, power locking, power

window systems, etc. Demand for auto batteries can be divided into the OE

(original equipment) market and the aftermarket segments. Growth in the former is

driven by automobile production in a concerned time frame.

This is a difficult segment to service as each automobile manufacturer has different

specifications for which the battery has to undertake mass customization.

Additionally, margins for battery manufacturers are usually thin in this segment

due to the bargaining power of the auto majors. However, inherent advantages

such as a steady source of production and revenue, and strong brand recall during

battery replacement make this an attractive segment for battery manufacturers.

The past couple of years have been bumpy in the automotive sector. This has

reflected in the performance of the battery market. While there has been a drop in

HCV and LCV (Heavy and Light commercial vehicles) segment sales, there has

been an increase in sales in the passenger car and two-wheeler segments. Though

this has not offset the sales loss, it has helped soften the blow.

The replacement market has a sizeable small player component - as this was

traditionally in the realm of the small scale sector. These players have hence been

able to offer new/reconditioned unbranded or lesser known branded batteries at

very attractive rates. The replacement market is where the margins are, and hence

battery majors are now paying a lot of attention to this segment. With the

introduction of sealed long-life batteries by these players in the OE and

replacement market segments, there could be a drop in battery sales in the


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replacement market for relatively new vehicles. However, this market is still

substantial, considering that the discerning Indian vehicle owner is today more

quality and brand conscious and hence willing to pay more to be free from battery

problems.

The market leader in this automotive battery segment is Exide Industries Limited.

The other players include Tudor India and Amoco Batteries. Amara Raja battery

and HBL batteries which are relatively new player in the auto battery segment, has

made very impressive inroads into the market.

Industrial Battery Segment

Compared to the automotive battery market, the industrial market is a steadier,

growing market. Batteries here are used as a rugged high-drain standby source of

power. These can be used for moving power and stationary applications. Moving

power application batteries are used in trains, forklifts, submarines, etc. The

demand for stationary batteries is substantially higher and these are used in

applications such as UPS systems, telecommunication networks, power plants, etc.

Industrial batteries are of three types - conventional flooded (lead acid) batteries,

valve regulated lead acid (VRLA) batteries, and nickel cadmium batteries. VRLA

batteries have, within a very short period of time, gained leadership as the highest

selling industrial batteries, replacing conventional batteries. The VRLA battery

works on the principal of valve venting, by which gas discharge produced in

chemical reactions inside the battery is safely released thereby averting potentialexplosions.

With the emergence of India as an IT super power, and the liberalization of the

wired and wireless telecom sector, there has been a swift rise in deployment of


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computer and communication networks at infrastructural and organizational levels.

This has augmented the demand for industrial batteries, and this trend is only

bound to increase as India continues to develop the service sector that includes call

centers, data centers, banking networks, etc.

The industrial battery market has a few established players as capital investment in

technology and the manufacture of these batteries is considerably high, compared

to investment in the automotive battery industry. The per-unit realization is also

substantially higher than that of automotive batteries, but the frequency of

purchase is limited. This also acts as a barrier for players in the unorganized sector

to enter this market. Amara Raja, HBL Batteries are the strong player in the

industrial battery segment.

OTHER ISSUES

Some of the other issues affecting the Indian lead acid battery market include are

as follows:

ENVIORNMENTAL CONCERN

THREATS OF IMPORT AND DUMPING


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Environmental Concerns

Lead, a major component of the lead acid battery, has to be handled very carefully,especially during smelting, disposal, and recycling. Based on environmental norms

set in the late 90's, today only authorized plants are able to recycle lead. This has

had an adverse effect on the unorganized market.

Threat of Imports and Dumping

With the progressive dismantling of the import norms in 1999 and inclusion of

batteries into the open general license, there is increased threat of cheap substitutes

to the locally available batteries from players in Thailand, Bangladesh, China,

Taiwan, Japan, Korea, etc. These cater mainly to the replacement market where

price sensitivity is critical.

Some local players are importing batteries to cater to segments that are rendered

unfeasible for them to invest in manufacturing. These could be from their foreign

principals or from tie-up partners. Some of the arguments against the import threat

are the high cost of setting up a distribution network, requirement to "tropicalize"

the batteries to meet Indian conditions, and strong brand image of existing brands.

Based on a petition by Exide Industries Limited and Amara Raja Batteries, the

government initiated investigation into certain battery imports from Chinese Taipei

(Taiwan), Singapore, and Hong Kong on the grounds of dumping. Subsequent to

this, the Indian Government has recently declared an anti dumping duty to be

levied on these imports.


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Profile of Major Players

Exide Industries Limited (EIL)

EIL is the overall leader in the Indian lead acid batteries market. Not to be

confused with Exide Corporation of the United States, this organization traces its

origins to Chloride Industries U.K. and is currently owned by the Rajan Raheja

group.

Being one of the oldest players in the market, EIL's biggest strengths include its

strong brand recall, its presence in all business segments of the battery market, and

its wide reach of dealers. With timed acquisitions of the lead acid battery business

of Standard Batteries in India, and recent acquisitions in Singapore and Sri Lanka,

EIL has ensured that it has leadership position in all segments of the market-

especially in the OEM segment of the automotive battery market. EIL has forayed

into the maintenance-free battery segment with the Exide Freedom range of

batteries, which is making impressive inroads into the market. It also acquired a

stake in a charger manufacturer to integrate this segment, and is looking to

backward integrate its operations by manufacturing separators.

EIL entered the VRLA segment of the industrial batteries market later than its

competition, but has been able to catch up. This was facilitated by a tie-up with

Shin Kobe, with whose assistance they have set up a modern production facility at

Mysore in South India recently.

EIL has always adopted innovative marketing and product strategies. Rural and

semi-urban India is still plagued with power shortage. EIL realized this potential

and introduced a range of products to cater to this segment. The company has also


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Tudor India

Tudor India is owned by Exide Corporation of USA through its British subsidiary

CMP Batteries. Tudor is a key player in the automotive battery aftermarket with its

Prestolite range of automotive batteries.

Looking Ahead

Owing to increased domestic competition, Indian lead acid battery manufacturers

will be forced to invest strongly in their product R&D, brand building, competitive

pricing, and a very effective distribution network.

Another area that players would have to continue focusing on is the export market.

Exports would offer opportunities to offset low domestic demand and capacity

under-utilization, despite the fact that export returns may not be as high as

domestic returns. Players would have to leverage their tie-ups and international

acquisitions to capitalize on these opportunities.

By investing in R&D, these players would be able to offer niche products that

propel them ahead of the low-price fiercely competitive segment. On the industrial

front, battery manufacturers would have to constantly upgrade their offerings for

the telecommunication and IT industry, taking into consideration the requirement


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to expand power storage and discharge capacities, while reducing storage spaceoccupied at installations and charge time.

On the automotive front, domestic demand from the automotive sector is bound to

rise. Delphi Automotive Systems Pvt. Ltd., a subsidiary of Delphi Automotive

Systems USA - one of the largest players in the global automotive battery segment,

has entered this market segment following FIPB (Foreign Investment Promotion

Board) approval to commence seed marketing of its range of batteries. It is also in

the process of commissioning its own manufacturing facility shortly. Batteries of

Panasonic, Japan and Varta, Germany are being imported and marketed in India.

Existing battery majors would have to work closely with automobile manufacturers

to retain their market shares in the OE segment, considering increased competition

in this segment.

Innovative attempts in the domestic battery replacement market to de-commoditize

batteries would earn them rich dividends. Supplies to niches such as the electric

vehicle segment could also offer interesting opportunities.

Given their track record so far, it seems certain that the major players in the Indian

lead acid battery market will continue to power their way ahead by tapping the

tremendous potential of this market.


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SECTION 4


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ANALYSISTOPICS

y SAMPLE PROFILEy TABULATION OF DATA COLLECTEDy INTERPRETATIONy SWOTy SUGGESTION, FINDINGSy CONCLUSION


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TABULATION AND INTERPRETATION

To convert the available data into useful information the analysis is done with

respect of usage of graphical method statists method

: - TYPES OF DEALERS DEALING IN DIFFERENT

BATTERIES

COMPANY NAME DEALERS PERCENTAGE

EXIDE 54 54%

AMARON 26 26%

OTHERS 20 20%

DEALERS DEALING IN NO OF COMPANIES

EXIDE

AMARON

OTHERS


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INTERPRETATION

As the graphs shows the market shared by the different players in the automotive

segments of the battery market in respect to Lucknow the major part of the market

is being shared by the Exide batteries is up to 54% of the market area and Amaron

has covered over 26%of the market and 20% of the market is being covered by

another company like AMCO, HBL and other companies

Thus we can see from the above data thatE

xide is one of themajor player in the automatic segment and Amara raja automotive batteries can be

seen as the player which is making its place in the market thus the players which

are as AMCO, HBL, STANDARD etc is also making the statement in the market

Form the above statement we can see that EXIDE is loosing its share

in the market with the other emerging which are giving it the tough competition.


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: - SERVICES PROVIDED BY THE COMPANIES

Comparison is being made on the basis of service provided by EXIDE and HBL

METHODOLOGY USED: -

Chi- square test to compare the better service provider between the two companies

HYPOTHESIS

HYPOTHESIS PARAMETERS

HO-(Null hypothesis) = are customers satisfied with the service of it

HO-(Expected hypothesis) = are customers satisfied with the service of HBL

The data collected is being given below on the basis of which the test will be

applied

Satisfied Not satisfied total

Exide 65 35 100

HBL 80 20 100

140 55 200


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TESTING ON THE BASIS OF HYPOTHESIS

Observed

frequency

Expected

frequency(E)

Q-E (Q-E)^2 (Q-E) ^2/E

65 (100*100/200)=55 65-55 = 10 100 100/55 =

1.818

35 (100*55/200)=27.5 35-27.5= 7.5 56.25 56.35/27.5 =

2.045

80 (100*140/200)=70 80-70 = 10 100 100/70 =

1.428

20 (100*55/200)=27.5 20-27.5 = 7.5 56.25 56.25/27.5 =

2.045

= 7.3361

DEGREE OF FREEDOM

(C-1) (R-1)

= (2-1) (2-1) = 1

SIGNIFICANCE LEVEL =5%

The value of 5% at1 of degree of freedom is 3.841


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INTERPRETATION

Thus from the above analysis after comparing the the value of DOF with the

significance level figure so we can say that the service provided by HBL is better

than that ofEXIDE because some of the respondent were not satisfied with its ater

sales service where as HBL is growing concern the amount of customer which it

had in the market are satisfied with the service because HBL replaces the battery of

the customer which is having problems in their battery more frequently than any

other company does it.


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: - DETERMINING THE VARIOUS MARKETING MIX

ADOPTED IN THE MARKET

PRODUCTS PRICES PROMOTION DISTRIBUTION

EXIDE HIGH QUALITY

AVERAGE

SERVICES

HIGH

PRICES

Newspaper,

TV. adds print

adds

Through wider

network of

dealers

AMARON HIGH QUALITY

PRODUCT,BETTER

SERVICES

UPPER

MEDIUM

PRICES

Newspaper,

TV. adds print

adds

Through wider

network of

dealers

HBL HIGH QUALITY,

GOOD SERVICES

MEDIUM

PRICES

Through

pamphlets

broachers

Not distributed at

large scale of

dealersAMCO AVERAGE

QUALITY

SATISFACTORY

SERVICES

LOW

PRICES

Newspaper ,

magazines etc

Through wider

network of

dealers


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: - CUSTOMER PREFRENCE OVER THE BATTERY PRESENT IN THE

MARKET BASED ON THE FOLLOWING FACTOR

Price

Brand

Service

Brand

RESPONDENTS

Number of respondent were 110 turned on 97 and rounding them of it becomes

100

DATA FORMULATED IN THE TABLE

Response Percentage

Quality 36 36%

Service 42 42%

Brand 30 30%


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: - APPLYINGGRAPHICAL METHOD FOR REPRESENTATION

INTERPRETATION

From the above situation we can see that people generally go toward the

companies which provides good service rather than the brand name or the type and

secondly comes the response of the towards the brand as per the survey many said

the big company do give good product thus they are being preferred by the

customers

33%

39%

28%

prefrence ofpeople

quality

Service

BRAND


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PORTERS FIVE FORCES MODEL

IndustryBargainingpower of

supplier

Substituteproducts

Bargaining

power of

customer

Threat ofnew

Entrants


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SUBSTITUTE PRODUCTS

Substitute product are those which can be used in place of the other product SMF

battery can be the substitute for the battery which requires water to be filled in it.

BARGANING POWER OF CUSTOMER

Customer are the person who has to be satisfied under the facilities which are

being provided to them by the companies which provoked them to buy the product

are like after sales service various discounts offers given to them by various

companies.

BARGANING POWER OF SUPPLIER

This can be said at which rate the supplier is ready to take the goods and ready to

supply the material for the goods to be manufactured comes under this.

THREATS OF NEW ENTRANTS

Some of the local producing unit also came in this market which is becoming

threat to the company because they provide batteries lesser than the other

companies product.

COMPETETION FACED IN INDUSTRY

The competition faced by HBL from other players is quite intense the major

competition got by Exide which is the leading producer in the automotive battery

in the market


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: -MOST BATTERIES OF COMPANIES ARE BEING SOLD BY VARIOUS

COMPANIES

Companies Respondent Response Percentage

Exide 100 46 46%

Amaron 100 32 32%

Others 100 22 22%

Graphical representation of the above stated data

46%

32%

22%

Sales madby variousdealers ofthecity

Exide

Amaron

others


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:-AVABILITY OF HBL BATTERIES IN THE MARKET

Analysis on the basis is as follows

Availability Respondents Percentage

Yes 66 66%

No 44 44%

Presenting the above data in the face of graph

INTERPRETATION

From the above analysis it can be seen that battery is readily available but in come

due to unawareness of the products of the company and also due to less dealership

the battery is not as readily available as it could be in comparison of the other

companys battery in the market.

avaliablity ofthebattery inthe market

yes

no


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SWOT

STRENGTH

Experienced management team work. Strong industrial background in order to backup the automotive segment of

the company.

Comes with innovativeness in this field by bringing SMF batteries forautomotive segments in the market.

Strong and confident sales team of the csg department of the company.

WEAKNESS

Their many strong competitors present in the market. People are less averse of the HBL automotive batteries in the market name

as Egnite and Excel.

OPPORTUNITY

Market is wide open there is much scope for expansion for the business Thus it has introduced SMF batteries in the market which responded

positively.

THREAT

Presence of the competitor in the market which are leaders Wider product range given by other companies. Local batteries are also giving threat to the companies.


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FINDINGS

During the survey we came across some information and those are being

consolidated in under the heading finding they are as.

During the analysis I found out that HBL bears the sound financial condition

because in respect of the recessionary period it generated profit thus by seeing it

with the use of BCG MATRIX HBL will be placed as bellow is as follows.

HBL is being placed in the category of cash cow because it oes not have much

market share in automotive segment but it high growth rate thus it is termed as a

cash cow in my opinion. Thus as in future it had really good chance to grow

because it provides good quality products at reasonable price.


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During the research work we have seen their less dealership in comparison of

Exide, Amaron etc thus it is available but through limited source and also due to

limited dealers dealers services are also being lacking.

We came across to know that most batteries which is sold in the

market is that because customer wants their favorite brand product to buy thus

mostly they sells Exide Amaron and other fall with others category. In the process

of the survey we came through that selling EXIDE does not give much profit

margin to various dealers in comparison of the other company products.

The products which are being preferred is through its service quality than

quality and than brand e.g. if big brands does not provide good service customer

will switch to another company or brand.

The brand products are being sold by dealers is EXIDE, AMARON, than

any other including HBL, AMCO etc.

As the dealers response toward SMF batteries in automotive segment

is on the positive side so we can say the scope fro its market can be good in future.


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SUGGESTION AND RECOMENDATION

As customers are vital for an organization so in order to retain them and to give

them information they should promotion through various media so people can

know about the various products of HBL power system.

As per the survey the availability of HBL automotive batteries is from

selected place so its dealership has to be increased so it can be easily available to

various customers.

As the response toward SMF battery seems to be positive from many

persons so this product should be promoted trough various media.

Occupation of the user influences the purchase decisions. The particular

occupation plays a vital role in deciding the product or services. Men are the

influencer and buyer of the battery. Therefore, it should this factor influencing

from the product and occupation

Apart from the facilities good quality the company should provide some

discounts to the customers and some offers because this thing also attracts the

customer toward their product.

Since HBL power system Ltd is leading with several companies it should be easy for them

to penetrate into the market and secure a good position if they pay greater attention to the service

part provided to their customer and thereby forming a long and trusted relationship.


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CONCLUSION

From the survey conducted in the city of Lucknow I came across that there

is opportunity for the growth in the automotive segment of the market because the

batteries which it provides are of good quality and at a reasonable rate thus all this

things are being backed by the HBL industrial background which will help it to

penetrate in the market in near future.

I conclude that, majority of the customers are being satisfied with the

HBL Batteries in automotive segment named as ignite and excel because of its

good quality, reputation, easy availabilities. Some customers are not satisfied with

the HBL Batteries because of lack of dealer services, spoilage and low shelf life

etc. therefore, if slight modification are needed in the marketing programme such

as dealers and outlets, promotion programmers, product lines etc., definitelycompany can be as a strong market leader player among the older player and will

be able to give them stiff competition in future

HBL has also to take care of its competitors into consideration and more

importantly its customers before making any move.


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APPENDIX ( QUESTIONARE)

ANNEXURE 1

Questionnairefor Research

General Questions

yName ofthe Company

y Name ofcontactperson ..y Designation ofcontactperson .y Contact No. ..

Questionsfor Data Collection

1) Whetherbatteries are installed inyour Institute/Industry?Yes

No

2) What isthe Application UPS/ Inverter/ Emergency Light/ Others.

3) What isthe Brand ofthebattery which is installed inyour Institute/Industry?

Batteryname


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4) Which types ofbatteries is installed inyour institute/industry?SMF (VRLA) Tabular Traction Flatplate

5) What istherating ofthebattery?Volts

A.H

6)

How manybatteries are installed inyour institute?

Quantity ofBattery

7) What isthe application ofthesebatteries?

U.P.S

Inverter

Other

8) What wasthe installationdate ofthesebatteries?Day Month Year


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9) Areyousatisfied with theperformance ofthebatteries?Notsatisfied Somehow

satisfied

Satisfied Fullysatisfied Cantsay

10)Aftersales/Supportprovidedby Company/Distributer/Dealer.

11)Areyousatisfied with theserviceprovidebythecompany?Notsatisfied Somehow

satisfied


12)What isthepresentcondition ofthebatteries?Notgood Somehow good good verygood Cantsay

13)Which manufacturersbattery wouldyouliketo install infuture?Make Rating


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14)Wouldyouliketo suggest anythingregardingthebatteries?..

..

THANK YOU


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Questionnairefor Marketfeedbackfeedbackfrom Business Today

Name of

dealer

Add.

Contact

no.

Person

Avgsale

ofAuto

batteries

Brand

Car Medium

car

HCV Tractor Inverter 2w Inverter

Tubular

1

2

3

4

5

Areyousatisfied with theperformance ofthebatteries?

Notsatisfied Somehow

satisfied



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Areyousatisfied with theserviceprovidedbythecompany-

Notsatisfied Somehow

satisfied


Do youthinknow SMF batteriesshould also be availablefor Automobile-

Yes it is Required Maybe Cantsay

Ifyesthen whatdo youexpectfrom the Battery andthecompany-

THANK YOU


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MANISH PATHAK

PGDM TRIMESTER 3rd

IEM MANAGEMENT COLLEGE,

ANWARI, BARABANKI.


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Documents

Acknowledgement Project 2