Havells India Ltd

Part – A

INDUSTRY PROFILE

(A) ORIGIN AND DEVELOPMENT OF THE INDUSTRY

Bath fitting Industry started around 1960 with the brand called Essco in a car

shed and its owner used to sell his product on bicycle. Then came Jaguar and

some other brands like Crystical, Jupiter, Jale bath fittings in the late 80’s into

the Indian market. Grove Fittings is the largest manufacturer of bath fitting in the

world. This mainly located in organized sectors. But in developing nations it is

located in both organized and unorganized sectors. Both domestic and the

foreign manufacturers are playing major roles in supplying the bath fitting

products.

(B) GROWTH AND PRESENT STATUS OF THE INDUSTRY

Bathroom fitting industry is a booming industry which has huge market of over 15

billion dollars around the world in 2006 and this is expected to grow year after

year. Every year companies are coming up with new products or old products

with new designs and features. As the population of the world is increasing,

people needs more houses. Government sector and also private sector is

investing huge amount of wealth in this sector. Due to rapid urbanization and

growth of number of residential facilities the demand of bath fitting equipment

market is rising. The rising income of the people and the increasing of

Purchasing power has also contributed in the growth of this industry. The third

world countries especially India and China are emerging as major market for bath

fittings.

Atria Institute of technology, Bangalore - 24

Industry Structure

Bathroom fitting industry is a mix of small, medium and large manufacturers.

Small manufacturer products are a low end product that caters to local and small

section of the population. Whereas large scale manufacturers are big MNCs and

corporate houses. The segments in which this industry can be identified are

Industry is mainly located in organized sectors. But in developing nations it

is located in both organized and unorganized sectors.

Both domestic and the foreign manufacturers are playing major roles in

supplying the bath fitting products.

Importers and suppliers of bath fitting equipment market.

(C) FUTURE OF THE INDUSTRY

Economy works on the principle of demand and supply. Every industry is

driven by the market forces and the market forces are affected by various

factors. Key drivers in fact generated demand for the bath fitting industry.

This industry is too like other industries are driven by various market

forces which are as follows:

Rising Income of the people and hence their purchasing power.

The rapid urbanization due to which the demand for bath fitting is growing

More and more investment in the construction sector both by domestic

players and the foreign MNCs.


2. COMPANY PROFILE

a. ORIGIN OF THE ORGANIZATION

Havell’s India commenced operations in 1982. Havells India Ltd, a billion-dollar-

plus organization, and one of the largest & India's fastest growing electrical and

power distribution equipment company, manufacturing products ranging from

Building Circuit Protection, Industrial & Domestic Switchgear, Cables & Wires,

Energy Meters, Fans, CFL Lamps, Luminaries for Domestic, Commercial &

Industrial application and Modular Switches.

Havells owns some of the prestigious global brands like Crabtree*, Sylvania,

Concord, Luminance, Claude, and Sylvania: Linotile, SLI Lighting & Zenith.

With 91 branches / representative offices and over 8000 professionals spread

over 50 countries across the globe, the group has achieved rapid success in the

past few years. Its 20 state-of-the-art manufacturing plants spread over India,

Europe, Latin America & Africa churns out globally acclaimed products like

Switchgear, Luminaries, and CFLs etc. Havells India Ltd is a name synonymous

with excellence and expertise in the electrical industry. Its 20000 strong global

distribution network is always ready to service its clients.

Today Havells and its brands have emerged as the preferred choice for a

discerning range of individual and industrial consumers both in India and abroad.

The essence of its success lies in the expertise of a fine team of professionals,

strong relationship with associates, the ability to adapt quickly, efficiently and

ably supported with the vision to think ahead.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION


Milestones

A look at the milestones in over five decades of QRG journey to excellence,

maps its emergence as a major industrial force in the country and abroad.

1958 : Commenced trading operations in Delhi.

1976 : Set up the first manufacturing plant for Rewireable Switches and

Changeover Switches at Kirti Nagar, Delhi.

1979 : Set up a manufacturing plant for HBC Fuses at Badli, Delhi.

1980 : Started manufacturing high quality Energy Meters at Tilak Nagar,

Delhi.

1983 : Acquired Towers and Transformers Ltd. and turned it into a

profitably manufacturing Energy Meters Company in 1 year.

1987 : Started manufacturing MCBs at Badli, Delhi in Joint Venture with

Geyer, Germany.

1990 : Set up a manufacturing plant at Sahibabad, UP for Changeover

Switches.

1993 : Set up another manufacturing plant at Faridabad, Haryana for

Control Gear Products.


1996 : Acquired a manufacturing plant at Alwar, Rajasthan for Power

Cables & Wires.

Entered into a Joint Venture with Electrums, UK for manufacturing

Dorman Smith MCCBs and Crabtree Modular Plate Switches.

1997 : Acquired Electric Control & Switchboards at NOIDA, UP for

manufacturing customized packaged solutions.

1998 : Introduced high-end Ferraris Meters in Joint Venture with DZG,

Germany.

2000 : Acquired controlling interest in an industry major-Standard

Electricals Ltd.

2001 : Acquired business of Havells Industries Ltd, MCCB of Crabtree

India Limited and merged ECS Limited in the company to

consolidate its area of core competence.

2004 : 1. Set up manufacturing plant at Baddi , HP for manufacturing

of Domestic Switchgear.

2. Set up a manufacturing plant for manufacturing of CFL at

existing manufacturing plant in Faridabad, Haryana

3. Set up a manufacturing plant for manufacturing of Ceiling

Fans at Noida, UP

4. Set-up our own marketing office in London through our

wholly owned subsidiary company Havells U.K. Ltd.

2005 : 1. Set up manufacturing plant in Haridwar, Uttaranchal for


manufacturing Fans.

2006 : 1. Crabtree India merged with Havells India.

2. Added CFL production unit in Haridwar manufacturing plant.

3. Expansion at Alwar manufacturing plant for increase of

production capacity.

4. Expansion at Baddi manufacturing plant and set-up of an

Export Oriented Unit.

2007 : 1. Set-up of Capacitor manufacturing plant in Noida, UP with

the capacity of

6, 00,000 kVAr per month.

2. Acquired the Lighting business of a Frankfurt based

company "Sylvania", a global leader in lighting business and

now the company's turnover crosses US$ 1 Billion.

3. Warburg Pincus, a global private equity firm and one of the

largest investors in India, invested US $110 million in

Havells India Ltd. Havells issued fresh shares to Warburg

Pincus, representing approximately 11.2% of the fully diluted

share capital of the company.

b. Nature of Business


Crabtree manufactures all types of bath fittings which is used for homely

purpose, for apartments, offices etc,. The products produced are used in all over

the world. Its operation is internationalized. The major products are taps, sector

wall mixture, hand showers etc.

Work Culture?

QRG is continuously applying modern management techniques such as Kaizen

to enable employees to improve their day to day functioning in small steps, one

at a time. QRG has also implemented Japanese version of 5S which stands for

"a place for everything and everything in its place". The company has introduced

these techniques as it firmly believes that small changes add up to large results

and the only way for a corporation to grow, is to make its people grow.

The Group is driven by qualified and experienced professionals backed by a

work force of over 4000 employees. All branches and manufacturing facilities are

computerized and networked with each other. An open door policy at all levels

encourages employees to be participative, innovative and creative. Empowering

employees helps the organization in harnessing individual talents to the fullest.

Emphasis is laid on building team spirit which helps employees to realize

collective potential.

Manufacturing Plants


Powerful trends are shaping up industry for the

21st century. Because of rapid spread of advanced technologies complexity of

work is increasing - almost daily. With the state of the art equipments and

manufacturing facilities, QRG group is helping to boost safety in workplaces from

the factory to the offices, domestic buildings to commercial plazas. All the

manufacturing units are ably supervised and controlled by technocrats and

industry specialists.

The group has well managed, well-equipped tool rooms with machines like CCV

Line, CNC Machines, EDM Wire Cut, Spark Erosion Machines, Lathes and

Surface Grinders.

Our strategic alliances with some of the leading technology corporations in the

world of electrical engineering, ensure constant access to the latest

developments in the international markets, which are then adapted to the tough

tropical conditions.

Our manufacturing units are fully equipped with the latest and most sophisticated

facilities in India. And in the hands of our highly qualified technical experts, this

results in some of the most advanced product development in the country.

All our manufacturing plants are ISO: 2000 certified. We are in the process of

attaining ISO: 14001 for all the plants. The first one to get this certification is TTL,

the meter manufacturing plant.

Location


Havells India Ltd and Standard Electricals Ltd

Brand Location Products Manufactured

Havells Haridwar, Uttaranchal Fans and CLFs

---do ---- Baddi, Himachal Pradesh MCBs, CFLs and Switches

---do ---- Samepur Badli, Delhi MCBs, ELCs and DBs

---do ---- Tilak Nagar, Delhi Energy Meters

---do ---- NOIDA, UP Fans

---do ---- Alwar, Rajasthan Cables and Wires

Gurgaon, Haryana Luminaries and lighting

fixtures

Standard Jalandhar MCB D-4 and RCCB

---do---

Haridwar MCB S-7, Rewireable

switches, On load

changeovers, Double Break

Switches, Off Load

Changeovers and Plug and

sockets.

Crabtree India Ltd


Crabtree Gurgaon, Haryana Modular Plate Switches

and Accessories

----do---- Bhiwadi, Rajasthan Bath fittings and

Accessories

TTL,DZG,Duke Arnica Sahibabad, UP Trivector Meters,

Reference Standard

Meters

-----do----- Hyderabad, AP Energy meters


Research and Development

Innovation is the hallmark of every vital development at QRG. New ideas,

inventions deepen scientific knowledge and give its work force a new impetus

towards technical progress.

QRG technological strengths and its endeavor towards continuous research &

development have allowed it to fulfill its responsibilities towards its customers.

The responsibility of providing its customers the best products and zero defect

services to enable them to be comfortable and secure in usage of electricity.

Centre for Research and Innovation (CRI)

Havells has recently invested 20 million dollars in a new center for research

and innovation. This centre has been set-up at the company's H.O. premises

in Noida. The task of this centre is to provide the theoretical & experimental

foundations for all segments of electrical engineering.


C. VISION MISSION AND QUALITY CONTROL

Vision:

"To be a globally recognized corporation that provides best electrical & lighting

solutions, delivered by best-in-class people.

Mission:

To perennially endeavor to sustain excellence in customer satisfaction by

consistently exceeding their expectations.

To promote ethical business practices and values in true spirit of corporate

governance.

To emerge as an global center for design, development and

manufacturing excellence of their products through continuous

improvement by upgrading our quality, reliability, dependability and value

addition in a deliberate and proactive manner.

Quality policy

To sustain the excellence in quality in manufacturer of electrical and

lighting

To delight the customers

To continuously improve.


d. PRODUCT PROFILE OF THE ORGANIZATION

CRABTREE AQUATECH has announced the launch of luxury bathroom

fittings and accessories segment under the Crabtree Frattini brand name. They

are described as exemplifying the brilliance of Italian design and superior British

workmanship. They reportedly ensure hassle-free working even in salt- and

mineral-laden water supply, work at low water pressure, have sensor caps to

prevent water leakage and have an eco-friendly water saving device complete

with electrical back-up for power cuts.


1) AQUAMASTER

Gives new look to complement your

bathroom’s modern aesthetic looks and to

provide special touch to your daily routine

utility.

2) CLOVA

Crabtree introduces the new clova,

contemporary in design and conception. Its

clear contours fits well in all bathrooms are

enhance the décor.

3) MAPEL

The series is a refined complement in a

classic interior decoration, thanks to its elegant

styling. Available in chrome, melt, chrome and

chrorre gold finish.

4) MAESTRO

Aesthetically perfect enough to inspire a

masterpiece. A fine blend of our-of-the-world

styling, precision components and ease of

operation. To make sure your bathrooms have

that special touch


5) VENCIA

The series irresistible to all available in chrome and

chrome hold finishes with bright blue glazed glass,

to blend seamlessly with your bathroom.

6) FLORENCE BEAUTY

The series is produced with the support of the

latest technologies, having classical line

rigorously inspired by tradition. Available in

chrome and more beath taking finishes.

7) PISA

A true architectural marvel. A solution

that fits every sort of bathroom adding a touch

of unmistakable originality. Available in

chrome, matt. Chrome and chrome gold finish.

8) JAZZY

Jazzy provides impressive proof that

simplicity is the central to good technical

solutions. Its smartly designed lever puts

optimum regulation of water flow and

temperature at your fingertips.


9) IMPERIA

The traditional concave and convex lines

accentuate its stunning silhonette, making it fit

for strong personality environments dominated

by sophisticated elegance. Available in

chrome, chrome gold and brush finish.

The other few products produced by Crabtree are given below.

Bath Fittings: Wall Mixers/Single Lever: GEM

Wall mixer divertor hand shower

Pillar cock vence wall mixture 370 16 s/l conc. divertor

30021 pillar cock 30021 pillar cock sector wall mixture


e. AREA OF OPERATION

Havells India Limited has its operation in global, IBD caters its international

clientele spread over 51 countries with offices in Dubai, China, Nigeria and

Distribution networks in all major countries. Despite the intense competition in

the global electrical industry, Havells recorded a three times growth of 8 million

USD in the previous year and targets to cross 22 million USD in the current

year

QRG’s International Business Division ‘IBD’ is a dynamic team of professionals

who are committed to fulfill the aspirations of the organization in the

international markets. This team provides specialized sales, marketing and

technical support along with services to meet the challenging requirements of

the modern day customer.

International Business

Havells International Offices

Nigeria, China, Dubai

Havells Branch

East: Bhubaneshwar, Guwahati, Kolkata, Ranchi

West: Ahmedabad, Indore, Mumbai, Nagpur, Pune, Raipur

North: Chandigarh, Dehradun, Delhi, Haryana, Jaipur, Kanpur

South: Bangalore, Chennai, Coimbatore, Hyderabad, Kochi

Manufacturing and Development Centers Europe and Africa

Erlangen, Germany, St. Etienne, France, Tienen, Belgium, Shipley, UK,

Kairouan, Tunisia, Newhaven, UK Haarlem, The Netherlands, Latam, Inhedo,

Brazil, Bogota, Columbia, San Jose, Costa Rica (1)


Offices Havells Branch Offices

Havells International Offices

Distribution (22)

Manufacturing and Development (10)

Sylvania Lighting Headquarters (Frankfurt)


F) OWNERSHIP PATTERN AND MANAGEMENT

This company has been converted into a full-fledged public ltd

company since 14-02-1997. The authorized, issued, subscribed and paid up

share capital of the company as on date is 200crores (2000000 equity share of

Rs 1000 each). To augment resources for its future infrastructure development,

the company is envisaging a public deposit scheme for since infrastructure

development such as purchase of buildings, go downs, etc, at various places

where the company has established its activities.

BOARD OF DIRECTORS

Q. ROY GUPTHA (Chairman)

Has ardent faith in transparency to the core. He is a cut throat

business entrepreneur and a technocrat, highly professional in finance

and accounts, legal and personnel, advertisements and in circulation or

marketing.

ANIL GUPTHA (junior Managing Director)

Sri. L. RAMANAND BHAT (Director of Havells India limited)

Sri. SURENDRA GOYAL (Chief executive officer)

Sri. PROMOD MISHRA (vice president of finance department)

Director of board at Havells India Limited handles finance and

accounts wing of the group.

Entering Management Team

The top management of the team is a highly proven team in planning

and implementing new plans and consolidating leadership position in their

business. The team has over 20 years experience in running a leading Electrical

products and bath fittings.


Management Responsibilities (ISO 9001- 2000)

Customer satisfaction.

Statutory or regulatory requirement needed to conduct business.

Management requirement

Employee’s satisfaction

g. COMPITITORS INFORMATION

There are lots of competitors for Crabtree, but the major competitors are:

1. Parry ware:

It is company which is one of the closest competitor for Crabtree,

because it has similar type of products with similar technology used to

produce the product. The designs of the products are also of the unique type

as of the Crabtree products

2. Jaguar:

Jaguar products are almost cheaper than parry ware and other

competitors. It also has similar product line and product extension.

These two companies are the main and closest competitors to Havells India

limited in bath fittings.


h. INFRASTRUCTURAL FACITITIES

Company has provided a canteen facility to their employees

Company has provided restroom for each individual department for both

male and female employees

Company has arranged for drinking water facilities in each floor as each

floor as each floor contains separate employees.

As education is becoming costly company has made change in education

allowance as per present/current scenario.

Allowance has provided to the employees can be based on their

performance rather that their experience.

Company has a recreation club for employees to increase their interaction

between various departments.

Company has appointed welfare officer to solve all their interaction

between various departments.

Company has appointed welfare officer to solve all their employees

problems.

Company has provided a resistor space in each department.

Company has internet and intra net facility to communicate with internal

and external organization.

Complete information on local area network (LAN) system for easy

traceability


I. Achievement and Awards

2002

:

1. Standard Electrical Company becomes a 100% Subsidiary of

the company.

2. Attained the IEC certification for Industrial switchgear and CSA

certification for all manufacturing plants.

2005

:

Awarded the KEMA certification by The Dutch Council for

Accreditation, making QRG the only group to attain this

certification.

2006

:

1. First Company to get the ISI Certification for complete range of

CFLs.

2. Started mid-day meal program at Alwar, Rajasthan caters to

10,000 students from 77 schools.

2008

:

1. We are the first Indian CFL manufacturers to have adopted

RoHS, European norms on Restriction of Hazardous

Substances in CFLs.


j. Work flow Model (end to end)

MANUFACTURING PROCESS

Production is considered crucial in

organization. Production is the process by which, raw material and other inputs

are converted in to finished products. The core of a production system is its

conversion sub-system, where workers, materials and machines are used to

convert input into products and services. This process of conversion is at the

heart of production function. The main factors that usually go into the production

department can be summed up as men, material, machinery, and methods. The

organization re-assesses their production methods in such a way that they

remain as productive as possible.

Manufacturing the bath fittings:

The Havell’s India Ltd, thus employs the most modern and highly

sophisticated technology, which to a very large extent, automated. For this

purposes the scrap steel is melted in Ultra High Frequency Electric Arc Furnace.

Three Electric Arc Furnace of 20-23 tons capacity each have been installed.

Before tapping the molten metal at temperatures ranging around 700 Celsius, it

is most essential for the technology that the correct chemistry of molten steel is

established. For this purposes a spectrometer has been installed where the

exact chemistry of the steel sample can be determined. This includes casting of

the specimen test pieces, cutting and polishing.

While the scrap is being melted and refined in the E.A.F, almost

simultaneously or sufficiently well before that, the graphite moulds in which the

bath fittings eventually get cast are prepared. It is quite a sophisticated and long


drawn process to prepare the moulds to get satisfactorily quality of cast steel

bath fittings.

For this purpose, the moulds are pre-heated before pre-mix resin sand to a

specified quality is employed to form the cores and the pads. If the mould is in

one of those, which is getting recycled, it is cleaned with round-grained sand of

specified fitness. Thereafter, the silica flour spray of very exacting quality is used

for spraying to form an insulating and isolating layer of film on the graphite

moulds. Once this is done the necessary stoppers and the allied equipments are

fitted in position. The moulds are then held in furnace in a particular temperature

before the metal is put in them for the casting of the wheels.

At the end of the roller conveyers, When the plant is in full swing of

production, a product drops off the belt almost every 4 minutes. But it must be

appreciated that before drooping off belt the product had passed through a very

long cycle of manufacturing.

After various stages of inspections it has to undergo the process of shot

blasting, peening, checking and rechecking for which ultra modern methods of

magnaglow and from the good ones and those that are acceptable after small

rectification. This process of segregation, rectification and retesting for quality is

highly sophisticated, automated and interesting.


k. FUTURE PLANS OF THE ORGANIZATION

Future Plans

As a part of its growth strategy, Havell’s is taking initiatives to tap potential

markets in the EU. The Company has developed a strong brand presence

through alliances with and the acquisition of leading electrical equipment

manufacturers in the region. It has also initiated various segment-wise growth

plans to drive growth in its overall operations. The company has identified the

housing and power sectors as future growth drivers and plans to tap these

spheres. Havell’s has plans to diversify its product portfolio by venturing into the

electrical motors and power capacitors space. It also aims to leverage its

established brand presence in these segments. The company expects to

increase its exports by approximately 100 per cent from 2005-07. Havell’s also

plans to increase its capacity to ward off cost pressures and reduce development

costs. The company has plans to increase its brand presence and reach in the

EU through strong acquisitions.


Part - B

MCKINSEYS 7S MODEL

Introduction:

The 7s model is better known as Mckinsey’s 7s. This is because the two

persons who developed this model, Tom Peters and Robert Waterman, have

been consultants at MCKINSEY & Co. at that time. They published their 7-S

model in their article. “Structure is Not organization” (1980) and in their books

“The Art of Japanese Management” (1981) and “In Search of Excellence” (1982).

The model starts on the premise that an organization is not just structure, but

consists of seven elements.


1) STRUCTURE

The polices and procedures, which govern the way, in which the organization

acts within itself and within its environment the organization (e.g. hierarchical or

flat) as well as the group and ownership structure are included here. Also

functional excellence can be achieved if there is sufficient integrity and focus

within each business unit and structuring an organization really works, one has to

look beyond the structure as drawn out on a piece of paper. HAVELLS is a

manufacturing concern of a moderately large size. We can see dept based on

function. It facilitates effective utilization of man power and resources and it is

simple, economical and reasonable organization pattern.

The organization structure of Havells consists of 4 levels.

Top Management

Middle management

First line management

Operating employees

ORGANIZATIONAL STRUCTURE AND CHART


FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION

Functional department play a vital role in the organization. Functional

department of global nutrition are:-

Human resource department

Marketing & sales department

Finance department

Research & development department

Finance

Our Finance professionals partner with operating groups to provide financial

support for their initiatives, while managing the overall financial performance of

Havells. Members of the Finance Department also play an integral role in making

key strategic business decisions, such as the evaluation of contractual relationships

with business partners and new business ventures.

Human Resources

At Havells, we're known for our focus on people and Human Resources leads the

way, partnering with our businesses in corporate, divisional and product units. Our

Human Resources department, whether at the divisional or corporate level,

manages training and development, succession planning, compensation, benefits,

recruitment and staffing, and other specialties geared towards attracting, retaining

and developing the best and the brightest.

Marketing

Our Marketing Department is responsible for successfully positioning our products

in the highly competitive marketplace, with a focus on disease management—

managing human health, not just products.

Department members initiate rigorous market and product specific research to

determine how best to launch a new product and create tools to support our sales

force, as well as programmers to educate our customers and consumers.


Research and Development

Innovation is the hallmark of every vital development at QRG. New ideas, inventions

deepen scientific knowledge and give its work force a new impetus towards

technical progress.

QRG technological strengths and its endeavor towards continuous research &

development have allowed it to fulfill its responsibilities towards its customers. The

responsibility of providing its customers the best products and zero defect services

to enable them to be comfortable and secure in usage of electricity.

Organizational chart


Chairman

Joint Managing Director

President President

General Manager

Manager

Asst. Manager

Sr. Executive

Executive

2) STRATEGY:

The strategy is defined as “the way in which competitive advantages will be

achieved.”

The company is committed to quality measures to cut down the overall

expenditure without compromising the quality with international competitors

raising to stay in the global market.

Pricing strategy

Selecting the pricing objectives:

The Company decides the pricing strategy based on the pricing

objectives of the company.

Determining Demands:

The marketing department with the help of sales management determines

the demand for all the products.

Estimating cost

With the help of products and quality department the cost of the products

and quality department the cost of the products are estimated.

Product line pricing

Every design of Crab tree

Discount Pricing:

As the product are sold to buyers at cash and quantity discount when they

buy in large volume

LONG – TERM STRATEGIES ARE:

To perennially endeavor to sustain excellence in customer satisfaction by

consistently exceeding their expectation.

To promote ethical business practices and values in the true spirit of

corporate governance


3) SYSTEM

A firm needs an inventory control system to effectively manage its inventory.

There are several inventory control systems in vogue in practice. They range

from simple systems very complicated systems. The nature of business and the

size dictate the choice of an inventory control system.

A B C ANALYSIS:

A B C Analysis is a basis analytical management tool, which enables top

management to place the effort where the result will be greatest. This technique,

popularly known as “Always Better Control” or the alphabetical approach, has

universal applications in many areas of human endeavor.

The annual consumption analysis of any organization would indicate that a

handful of top high value items less than 10% of the total number will account for

a substantial portion of about 70% of the total consumption value, and these few

vital items are called ‘A’ items, which needs careful attention of material

manager. Similarly, a large number of “bottom” items over 70% of the total

number called the trivial many account only for about 10% of the consumption

value, and are known as the ‘C’ class. The items that lie between the top and the

bottom are called the ‘B’ category items.

As soon as the materials are certified as Good by Crab Tree Quality control

department the stores department raises Goods Receipt note by entering the

quantity and the value of material received. This value includes basis rate plus

excise duty plus tax plus incidental packages less Cen VAT.

WEITHTED AVERAGE PRICE METHOD:

“Weighted Average Price is price which is calculated by dividing the total of

material in the stock in the stock from which the material to be priced could be

drawn by the total quality of materials in the stock”.

WORK - IN – PROCESS:

Work in process is semi manufactured products they represent products that

need further process before they become finished products.


Finished Goods : Finished goods in plant are valued at cost means factory cost

which includes excise duty payable on manufactured goods.

4) SKILLS

The Term skill is defined, as “the distinctive competencies that reside in the

organization can be distinctive competencies of people, management practices,

system and technology.”

A skill refers to the fact that employees have the skills needed to carry out

the company’s strategy.

ON THE JOB TRAINING:

The responsibility for job training falls directly under the control of the office

manager and supervisor. It includes:

Participating in Meeting

Work Books

Skill Training

OFF THE JOB TRAINING

Under this method the trainee is separated from the job situation and focuses on

learning materials. Some of the methods by Havells India Ltd are:

Work Education Scheme

Guest Lectures

Demonstration

Computer Training

Technical Training


5) STYLE:

The term style is defined as “the leadership style of top management and the

overall operating style of organization. Styles impact on the norms people follow

and how they work and interact with each other and with customer.

The style of functioning of Havells India Ltd has all ready inculcated the

culture of total quality management (TOM). Havells India Ltd is encouraging its

entire work force in all the categories to participate in the management decision-

making. Their suggestions towards innovation are given top priorities. For this

involvement, participation, initiation and suitable rewards are bestowed on them

and if found feasible will be recognized with the suitable reward.

Top management and middle management hold periodic shop floor meetings

to exchange vie and to draw action plans. Future, as per the ISO requirement

each department is a customer to the other departments inside the organization.

Hence each department acts as a independent unit or profit center.

Style Refers to the employees shared and common way of thinking and

behaving –UN-written norms of behavior and thought:

Top - Level Management

1. Chairman

2. Joint Managing Director

3. President

4. General Managers

5. Assistant General Managers.

Middle – Level Management

1. Managers

2. Assistant Managers

Junior/Low – Level Management

1. Sr. Executives

2. Executives


6) STAFF:

The term staff is defined as “the people, their backgrounds, and

competencies. The organization’s approaches to recruitment, selection, and

specialization how are trained, socialized and integrated, and how their careers

are managed.

Since Havell’s India Ltd is setup the specific purpose of manufacturing of

electrical products to meet the consumer’s demands. The training is given in

specific categories to meet day – to – day requirement of the customers as per

the ISO standard. Since this is continuous production industry with the

involvement policy. And hence there are no strong or weak leaders of this

organization. All the leaders are strong.

Havell’s is a private India Limited company, so all the employees are

employed as per the selection process of the organization such as Interviews,

Tests, Reference Check, head hunting, HR round etc.,

DELEGATION OF AUTHORITY

Delegation refers to the act of assigning formal and informal responsibility for the completion of specific activities to a sub-ordinate. The delegation of authority by managers to employees is necessary for the efficient functioning of any organization, because no manager can personally accomplish or completely supervises all what happened at an organization.

Delegation of authority is required for efficient functioning of and organization

and managers must delegate responsibilities and authority to employees.

Speed up decision – making and can lead to better decision. To effectively delegate, managers must decide which tasks can be delegated and who should get the assignment, provide feedback.

Authority is a consideration that goes into job design for every position in an

organizational structure and delegation fees managers to accept other

responsibilities and gives growth opportunities to employees. Delegation of

authority and responsibility helps to perform the assigned work more efficiently

and effectively by the employees. This helps to achieve the organization

objectives.


7) SHARED VALUES

The term shared values are defined ad “the core or fundamental values that

are widely shared in the organization and serve as guiding principles that are

important. These values are having great meaning because they focus attention

and provide a broader sense of purpose”.

All the employees of the Havell’s India Ltd including the management are

aware of the organization and its existence to fulfill the requirement of the

customers as an important substitute. Further company has drawn the policies;

their goals and action plan to achieve the same in the next five years.

As a part of this company has having a vision to become one of the world –

class manufacturers of electrical products and it has already drawn up the action

plan to achieve the same in the next five years. From time to time the

management receives necessary suggestion from international experts and the

external agencies and the consultant on the optimum utilization of the factory

capacity and to increase the productivity of existing resources without

compromising the quality.

The company is known towards,

Honesty towards customers, dealers and employees

Appreciation in all business relations and dealings


PART - C

SWOT ANALYSIS

A scan of internal and external environment is an important part of the

strategic planning process. Environment factors internal to the firm can be

classified as strength (s), and weakness (w), and factors external to the firm can

be classified as opportunity (o), and Threat (T). Such an analysis of internal and

external factors is referred as SWOT analysis. The SEOT analysis has been

useful tool for the industry. The process of utilizing the SWOT approach requires

an internal survey of opportunities and threats.

STRENGTHS

Trained skilled and dedicated employees and committed management.

Flexibility in production and supply of products with different product

mixture.

Development of new product as per requirement of the customer with

minimum lead – time.

On time delivery of products as per the specifications or drawings.

Competitive price

Complete information on local area network (LAN) system for easy

traceability.

Adoption of griffin technology in production (it is used for recycling the

scrap materials)

The company has good technical training center (TTC) for the training and

development of staff.


WEAKNESS

Have to face the bureaucracy

Essences of professional HRM: - absences of performance appraisal

system merit rating system.

Hectic Work Schedule, the company is having work schedule of three

shifts of eight hours each and the company is facing worker shortage both

these factors contributes to the additional stress on the present work

force.

OPPORTUNITIES

Backward integration, the companies cease to be dependent on there

need and have integrated backwards; this is explained by the huge

distribution network.

To give maximum employment opportunities in the Karnataka sincere and

hard working people help to build the company marketing share.

Diversification

The company has huge scope in diversifying their business into few other

countries because of good market share in the present trend.

THREATS

Economy showdown

New technology

Government regulations.

Increase competition in this segment / Industry to liberalization there is

increase the competitors in last 5 yrs company has to fight for marketing

share.

Dependent on economy scenario


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH,2008 (Rs in Lakh)

SCHEDULE NO

Year ended 31-03-2008

Year Ended 31-03-2007

INCOME: 1.Freight Receipts 2.Sale of Power 3.Other Income

EXPENDITURE:

1.Operative Cost 2.Employees’ Cost 3.Administrative cost 4.Intrest and Finance Charges 5.Depreciation

Profit before Taxation: .Provision for taxation : a. Current Tax b. Deferred Tax c. Fringe Benefit Tax d. Minimum Alternate Tax Profit after Taxation Prior period expenditures/(Income) Service Tax on Courier Interest on Service Tax Other expenses Depreciation Income Tax (2003-04) (2004-05) (2005-06) (2006-07)Minimum Alternate Tax Credit Entitlement

Net Profit for the year

12

13

Total

14151617

Total

Total

51258.80 2632.12 803.60

43737.84 207.07 349.74

54694.52 44294.65

3624.556363.811100.125392.064300.50

32662.25 4734.84 1324.00 2175.16 2409.25

53441.04 43305.50

1253.48

117.98 283.96 92.80 (117.98)

1238.79

1432.93 4350.61 40.42 (1432.93)

911.72 8247.76

---- ---- (38.38) 192.71 ---- ---- ---- 18.81 0.00

7.58 0.95 57.16 (238.54) 33.19 0.14 (9.60) 0.00 (45.27)

738.58 8442.15


Year Ended31.03.2008

Year Ended31.03.2007

Add: Balance brought forward from previous year.

Profit available for appropriation Transfer to General Reserves Interim dividend Tax on Dividend

Total

811.50

799.85

1550.08 ----- ----- -----

-9242.001150.002000.00 280.50

1550.08 5811.50


BALANCE SHEET AS AT 31ST MARCH, 2008

SCHEDUL

E NO

As At

31.03.2008

As At

31.03.2007

SOURCES OF FUND

1Shareholders. Funds

Share capital

Share Application Money

Reserves & Surplus

2. Loan Funds:

a. Secured Loans

3.Deferred Tax Liability (Net)

APPLICATION OF FUNDS

1.Fixed Assets:

Gross Block

Less: Depreciation

Net Block

Capital Work in Progress

2.Investments:

1

2

3

Total

4

Total

5

7070.00

--

3375.29

43285.18

5858.78

7000.00

700.00

1961.50

39042.20

555.54

59589.25 54255.24

64801.54

12533.50

55988.83

8658.84

52268.04

754.51

47328.99

1569.52

53022.55 48898.51

12.50

7.87


3.Current Assets, Loans and

Advances :

a. Inventories

b. Sundry Debtors

c. Loans and Advances

d. Cash & Bank balances

Less: Current Liabilities and

Provision:

a. Liabilities

b. Provisions

Net Current Assets

6

7

8

9

Total

10

11

Total

633.06

2922.98

1961.89

4497.35

680.09

2260.46

1515.85

3800.13

4655.96 3770.16

3355.96

105.12

6554.20

2627.24

280.43

5348.86

59589.25 54255.24

SUMMARY OF ANNUAL REPORT

The net increase in fixed assets of Havells India Limited is Rs 5348.86

lakhs this is 36.30%.over its previous year .The total fixed assets have increased

from Rs 52268 in lakhs during 2007-2008

2) The net increase in current assets of Havells India limited is Rs 65540-.20

lakhs. This is 23.49% over its previous year.

3) Sundry debtors, loans and advances contribute 66.11% in the current assets,

whereas it was 69.08% for the year 2007-2008

4) The increase in total income of Havells India Limited was Rs 54694.52 lakhs

during 2007-2008.

5) The net increase in total expenditure of Havells India Limited was 30.39% over

its previous year.


6) Operating cost contribute major portion in the total expenditure of Havells India

Limited.

BIBLIOGRAPHY

REPORTS:

Annual report of HAVELLS INDIA LIMITED

Catalogs of HAVELLS INDIA LIMITED

REFERENCE BOOKS:

Author : Terry & Franklin

Title of the book : Principles of Management

Edition of the book : 8th edition

Name of the publisher : AITBS publishers and distributors.

Place of publication : Delhi.

Year of publication : 1990

WEBSITES:

www.havells.com



Documents

Havells India Ltd