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Perception of customers towards shriram shriram finance co  litd project reprot mba mkt
 

Perception of customers towards shriram shriram finance co litd project reprot mba mkt

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Perception of customers towards shriram shriram finance co litd project reprot mba mkt

Perception of customers towards shriram shriram finance co litd project reprot mba mkt

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    Perception of customers towards shriram shriram finance co  litd project reprot mba mkt Perception of customers towards shriram shriram finance co litd project reprot mba mkt Document Transcript

    • SHRIRAM TRANSPORT FINANCE COMPANY LIMITEDBABASAB PATIL
    • EXECUTIVE SUMMARYOBJECTIVES OF THE STUDY:-  To know the perception of customers towards SHRIRAM TRANSPORT FINANCE COMPANY to improve the quality of services.  To know whether the customers are satisfied with the present services of the company.  Factors considered in selecting SHRIRAM TRANSPORT FINANCE COMPANY to take finance for HCV (Truck).  To study the behaviour of executives of SHRIRAM TRANSPORT FINANCE COMPANY towards customers.  To seek suggestions and opinions from customers regarding the improvement of services.SCOPE OF THE STUDY:-  The study will help the company to know their awareness among the consumers, the perception, brand position of the company.  The company can find out where their competitors stands in the minds of the customers.  The study will help the company to make proper marketing strategy for their weaker areas.  The study covers the customers owning HCV in Hubli city.BABASAB PATIL
    • LIMITATIONS OF THE STUDY:- Not single work is exception to the limitations every work has got itsown limitations, so due to time constraint, my study confines only to Hublicity and it is not possible to make extensive study. It is assumed that thesample selected represents entire population.RESEARCH METHODOLOGY:- Primary (Field Survey) Data source : Secondary data (internet) Area of Research : Hubli city Research instrument : Questionnaire Sample plan : Personal interview Truck owners, Sample unit : Transporters etc. Stratified Random Sampling method : sampling Sample size : 100 customers INTRODUCTIONPERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORTCOMPANY LIMITED.BABASAB PATIL
    • Like any other Financial products, sales of giving finance is largely dependenton how well company plans out their marketing strategies which helps toincrease visibility and build a distinct brand image. Looking at the intensecompetition it is become very necessary for company to make a name forthemselves in consumers mind. So the opinion of customers play an importantrole in making marketing strategies. Hence this study will provide thecompany to what customers perceive about STFC. It will also help to find outthe brand image of STFC in the minds of customers. India is emerging as a global automobile giant. In recent years thisindustry has made pioneering efforts in adopting modern technology andallowing the entry of foreign players. This is well supported by the economicconditions particularly in the financial sector and in foreign direct investment.During the last decade, conscious efforts have been made to fine-tune statepolicy to enable the Indian automobile industry realizes its potential to thefullest. The freeing of the industry from this restrictive environment hashelped it to itself to global development. Increasing competition as result of liberalization has led to continuousmodernization as well as international standards. Moreover, auto finance withaggressive marketing strategies has played a bid role in boosting theBABASAB PATIL
    • automobile demand. Commercial vehicles, widely considered being theeconomy’s barometer, have had a good start for the year. The auto finance industry is expected to grow at 18.6% till ’09. Of thatused vehicle finance is expected to grow at 27% p.a, while new car and UVwould grow at 18.9% and 13.8%. LITERATURE REVIEWThe world is full of stimuli. A stimulus is any unit of input affecting one ormore of the five senses sight, smell, taste, touch, hearing.The process byBABASAB PATIL
    • which we select , organiseand interpret these stimuli into a meaningful andcoherent picture is called perception. In essence, perception is how we see the world around us and how werecognize that we need some help in making a purchase decision. Peoplecannot perceive every stimulus in their environment. Therefore, they useselective exposure to notice and which to ignore. Marketers must recognize the importance of cues or signals, incustomers perception of products. Marketing managers first identify theimportant attributes, such as price or quality, that the targeted customers wantin a product and then design signals to communicate these attributes.Customers also associate quality and reliability with certain brand names.Companies watch their brand identity closely, in large part because a stronglink has been established between perceived brand value and customersloyalty.Customer Perception Audits:Every time you lose a customer, there’s a reason why. Do you really knowwhat your customers think about your business, your offerings, or yourservice? Are they having good or bad experiences? Are you equipped with theBABASAB PATIL
    • insight you need to improve customer satisfaction and loyalty, and make thechanges that matter? Entrepreneurs are often too busy to really take the time totap into what customers are really thinking. But customers hold the key. Theyknow what you need to do to dramatically increase the value you deliver tothem. Why keep this data a secret? Uncovering and understanding it will giveyou what you need to be the best, generate higher sales and referrals and earnrepeat business. Customer Perception Audits by Coach Kevin captures information onthe experiences your customers are having, analyzes the data, and providesmeaningful, actionable recommendations on short-term and long-termimprovements, with the goal of closing the gap between the service that isdelivered and the service that customers expect. Opening of economy and liberalization in trade in the country broughta sea of change in customer’s perception of buyer and seller relationship. Thecustomer today is not only very demanding but also likes to know therelationship between the supplier of goods and services and its relationshipwith the manufacturer or principal and its antecedents. It is on this relationshipdepends the guarantee and warranty terms to which the customer is entitled. Acustomer expects trouble free service during the guarantee period. Thereafterit is expected that a product will last to its full productive life with minimumBABASAB PATIL
    • down time and the vendor will provide the required support service to ensurethe customer is not put to trouble. For adopting Japanese management or for customer orientedmanagement we should first have the willingness and a determination muchabove the petty personal gains. It needs an attitudinal change. Lookingtowards present socioeconomic and political conditions such change is notforeseen in immediate future. Market forces will have to play the game withonly customer in mind if India has to make global presence. There is little timein hand as we are having challenges from all sides. Small nations like Korea,Taiwan, Singapore etc. have already surpassed us. These nations are workingon a vision and resultant plans. It is the right time for market players topamper the customer. As the saying goes, the four deadly sins of corporatemanagement-complacency, blindness, megalomania, and greed. fit everythingelse is overhead!. Remember that a customer always buys a product or service with a lotof expectations which he has derived from the promotional inputs of thecompany or other sources including word-of- mouth . So a customer would besatisfied when Performance is equal to Expectation while would not besatisfied when Performance does not match with Expectations. Now thisBABASAB PATIL
    • expectation is what has been derived from perception. Perception is not goodor bad, right or wrong, it is just the way someone judges an experience basedon their value system of what they believe should happen. Since people areunique, each of their perceptions are unique .On the other hand each situationis a "point of contact" with an employee that will tell the customer a "truth"about the companys idea of customer service. Each situation will createexpections of what the next experience will probably be like.STATEMENT OF THE PROBLEM:- The present day market is flooded with a variety of Non- banking andas well as banking financial institutions as many as if not more thancompanies like SHRIRAM TRANSPORT FINANCE COMPANY, TataFinance, Sundaram finance etc. are marketing their products.BABASAB PATIL
    • Time has become talk of the town therefore the customers give utmostpriority to those financial institutions which gives loans at lower rate ofinterest, quick loans, documentation, percentage of finance etc. which havebeen exerting influence on the playing decision of the consumer. The SHRIRAM TRANSPORT FINANCE COMPANY is the largestNBFC (Non Banking Financial Corporation) in the country exclusivelyengaged in financing for heavy commercial vehicles (HCV) perhaps it is theonly company rendering better performance from a long period of time withthe presence of all these factors. The SHRIRAM TRANSPORT FINANCECOMPANY is making sales as hotcake. The study on hand is directed to understand “the perception ofcustomers towards SHRIRAM TRANSPORT FINANCE COMPANY toimprove the quality of service”PURPOSE OF THE STUDY:-The main purpose of the study is to understand the perception of customerstowards SHRIRAM TRANSPORT FINANCE COMPANY which will helpthe company to make proper marketing strategy to render good services andBABASAB PATIL
    • satisfy the needs of the customers. The study will help the company to makeproper strategies and emphasize on their weaker areas.SCOPE OF THE STUDY :-The scope of the study covers the customers of SHRIRAM TRANSPORTFINANCE COMPANY and other competitive companies in Hubli city Truckowners, Transport companies etc.OBJECTIVES OF THE STUDY:- 1. To know the perception of customers towards Shriram Transport Finance Company Limited to improve the quality of service. 2. To know whether the customers are satisfied with the present services of the company.BABASAB PATIL
    • 3. Factors considered in selecting SHRIRAM TRANSPORT FINANCE COMPANY to take finance for HVC. 4. To study the behaviour of executives of SHRIRAM TRANSPORT FINANCE COMPANY towards customers. 5. To know the awareness level of the customers towards SHRIRAM TRANSPORT FINANCE COMPANY. 6. To seek suggestions and opinions from customers regarding the improvement of services.LIMITATIONS OF THE STUDY:-. a. Because of time constraint, my study confines only to Hubli city and it is not possible to make extensive study. b. By busy schedule of the executives it is difficult to extract more information from them. c. Unwillingness of transporters, truck owners has left us to make random conclusions.BABASAB PATIL
    • CHAPTER – IICOMPANY OVERVIEW:- Established in the year 1974, the Shriram Group, comprising 750Branches and Service Centres, in Indias premier financial services chain. Thiscompany is the largest player in Truck Financing and Chit funds in the Indiansubcontinent.BABASAB PATIL
    • The group, having an annual turnover of Rs. 6,000 crore (USD 1.3billion), has a significant presence in the Insurance Consultancy, ConsumerDurable Finance and Stock Broking businesses. It also have diversifiedinvestments in areas such as Information Technology, Pharmaceuticals,Property Development, Project Engineering, Packaging and AutoComponents. It employ over 11,000 employees across the countries that arecommitted to providing excellent customer service. It also have over 75,000agents nationwide who reach out to its customers in even the most remoteareas. The Shriram Groups business ventures are built on providing the mostefficient and customer-focused services based on the simple principle ofputting people first. This People First business philosophy has earned themunstinted customer loyalty through many generations.HISTORY AND MILESTONE:APRIL 2005: Shriram Group attracts largest Venture Capital Investment in the Indiannon-banking financial sector, from OverseasJULY 2004: UTI Bank picks up equity stake in two Shriram Group companiesBABASAB PATIL
    • 17MARCH 2003: Shriram Investment Limited received the Mother Teresa Award forCorporate Citizenship.DECEMBER2002 Shriram Group enters into strategic alliance with Citicorp Finance andCummins Auto Services31AUGUST2002 Shriram Group ties up with UTI Bank for Retail Truck FinancingScheme to offer low cost loans for purchase of new or used trucks to transportoperators.7MAY2002 Ms. Akhila Srinivasan awarded as the "Outstanding WomanProfessional" for the year 20024FEBRUARY2000 Shriram Recon Trucks incorporated as Indias first corporate network forselling reconditioned used trucks.15DECEMBER1999 Medicorp, the flagship company of Shriram group’s pharmacyBABASAB PATIL
    • division became the first Indian company to win the Indian DrugManufacturers Association27 MARCH1986 Shriram City Union Finance Ltd. Incorporated for cars and two-wheelers.12MARCH198 Shriram Investments Ltd. Incorporated13JUNE1979 Shriram Transport Finance Company Ltd. IncorporatedVISION, MISSION AND VALUES:Helping create wealth, Empowering people through prosperity, Puttingpeople first. The Shriram Group set out with the objective of reaching out to thecommon man with a host of products and services that would be helpful tohim in his path to prosperity. Over the decades, the Group has achievedBABASAB PATIL
    • significant success in executing this objective and has created a tremendoussense of loyalty amongst its customers. Efficiency in operations, integrity and a strong focus on catering to theneeds of the common man, by offering him high quality and cost-effectiveproducts & services, are the values driving the organization. These core valuesare deep-rooted within the organization and have been strongly adhered toover the decades. The group prides itself on its perfect understanding of the customer.Each product or service is tailor-made to perfectly suit the needs of thecustomer. It is this guiding philosophy of putting people first that has broughtthe Group closer to the grassroots and has made it the preferred choice for allfinancing requirements amongst the customers. NON-BANKING FINANCIAL COMPANY (NBFC) – A GENERAL SCENARIO Non-Banking Financial Company (NBFC) is a company registeredunder the Companies Act, 1956 and is engaged in the business of loans andadvances, acquisition of shares/stock/bonds/debentures/securities issued byGovernment or local authority or other securities of marketable nature,BABASAB PATIL
    • leasing, hire-purchase, insurance business, chit business but does not includeany institution whose principal business is that of agriculture activity,industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business ofreceiving deposits under any scheme or arrangement or any other manner, orlending in any manner is also a non-banking financial company (Residuarynon-banking company).DIFFERENCE BETWEEN BANKS & NBFC ?NBFCs are doing functions akin to that of banks, however there are a fewdifferences:i. A NBFC cannot accept demand deposits;ii. It is not a part of the payment and settlement system and as such cannot issue cheques to its customers; andiii. Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. COMMERCIAL VEHICLE It is the funding of products include, trucks, buses, tippers, lightcommercial vehicles, pick ups, 3 wheelers, etc. Range of services: funding of new vehicles, refinance on used vehicles,balance transfer on high cost loans, top up on existing loans, Extend product,working capital loans & other banking products.BABASAB PATIL
    • Who are eligible?Any individual / Partnership firm / company with more than 2 years businessexperience. Ownership of a vehicle is not mandatory. Funding extended toFirst Time User, Transporters and Captive Consumers.How much?Loan amount can vary from a few thousands to crore depending upon thespecific requirement.Funding can be up to the extent of 100 % of the chassis, body funding can beextended on special requirement & on the past experience. Generally undertaken is Hypothecation funding. They are also takingover an old high-interest loan and converting it into low interest loan.Repayment:In general repayment period is of 3 -4 years, however depending on the natureof the deal the tenure can vary from 6 - 60 months.The repayment schedule & the amortization schedule is sent on disbursementof the loan.Interest:BABASAB PATIL
    • Interest is charged on a flat rate based on the scheme applicable for theparticular product.FARM EQUIPMENT LOANSFarm equipment loan has also a big chunk in the vehicle finance.Eligibility :-Agricultural UsersAny individual aged above 21 years at the beginning of the tenure and below65 years by the end of the tenure; involved in agriculture for the last 5 years. Having minimum 2 acres of land with its value at least twice the loanamount. Staying in the same place for at least 3 years. Having an annual income equal to the yearly installment Mortgage of land of 2 to 3 times of the loan amountCommercial Users Any individual aged above 21 years at the beginning of the tenure andbelow 65 years by the end of the tenure; involved in business for the last 3years. Owns at least one tractor or commercial vehicle. Owns either a house or an office or at least 2 acres of land. Has a permanent phone connection either at office or at home.BABASAB PATIL
    • Loan Amount: The loan amount varies from customer to customer depending on thevaluation of the land being mortgaged, income of the customer and tenuredesired. A maximum of 100% of the cost of the tractor, 75% of the cost of thetrailer and 50% of the cost of the implements is funded.Documentation:Agricultural use Application form with photograph of the customer and all co applicants and/or guarantor. Performa Invoice of the asset to be funded from an authorized dealer. Land records of the borrower/s. Land valuation and title search report of the land. Residence proof of the borrower/s. Identity proof of the borrower/s. Signature verification of the borrower/s. Loan agreement, duly signed by the applicants and guarantor. 2 SPDCs(Security Post Dated Cheques) for entire tenure.Commercial Use Application form with photograph of the customer and all co applicants and/or guarantor. Proforma Invoice of the asset to be funded from an authorized dealer.BABASAB PATIL
    • Proof of Income (any of the following) : - Billing statement for the past one year - Latest Income tax Return - Last 6 months bank statement Residence proof of the borrower/s. Identity proof of the borrower/s. Signature verification of the borrower/s. Loan agreement, duly signed by the applicants and guarantor. 2 SPDCs(Security Post Dated Cheques) for entire tenure.Rates & Fees:The rate of interest varies from customer to customer and depends on variousfactors like land holding, loan amount, viability of the proposition and theunderlying collaterals provided.Interest:Interest is charged on a monthly/quarterly/half-yearly reducing balance basisas the case may be. Every installment that is paid has a component of principalas well as interest. Interest is charged on the principal outstanding after everyinstallment payment.TWO WHEELERS:BABASAB PATIL
    • Two wheeler finance is comparably Simple, Friendly and Quick.Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easyinstallments over a period of 6 to 36 months.Eligibility Criteria:1. Salaried Individuals2. Self Employed Individuals3. Pensioners, Housewives & Students4. Partnership Entities5. Private Limited Companies6. Public Limited CompaniesInterest rates:Interest rate is charged on a monthly reducing balance .Documents:Identity ProofsResidence ProofIncome ProofPost Dated ChequesCopy of Credit CardBABASAB PATIL
    • CC billing statementBank passbook/StatementNo objection CertificateAWARDS AND RECOGNITION Recipient of the social responsiveness awards instituted by Businessworld – compaq at national level under the auspices of FICCI, Delhi. Adjudged as the third prize winner for having rended commendableservice in the areas of social welfare and rural development. Ms. Akhila Srinivasan receiving the social responsiveness Awardinstituted by Business World – Company from the Hon’ble Vice – Presidentof India Krishna Kant in the year 1999. Recipient of outstanding woman professional for 2000 – 01 by FICCI– FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixitChief minister Delhi. Mother Teresa award for corporate citizenship instituted by Loyolainstitute of Business Administration (LIBA) Chennai, 2002.BABASAB PATIL
    • SOCIAL WELFARE INITATIVES They have always belived in delivering financial value with a humanface. As a company firmly grounded up a middle class ethos, we take oursocial responsibilities very seriously. Their corporate Social Responsibility (CSR) initiative started with theShriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWTis today active in the following areas. • Orphan and destitute care • Primary education for the rural poor • Micro – credit financing through self- help groups for the marginalized • Empowerment and upliftment of women in villages.OPRHAN AND DESTITUTE CHILDREN:To swiftly help the poor and the needy to be self reliant and live with dignity,not charity. The primary focus and beneficiaries of the Trust’s activities are. a. Abandond neglected and destitute children. b. Juvenile delinquents in need of care and protection. c. Children of poor and illiterate parents.BABASAB PATIL
    • d. Disadvantaged and marginalized section of women, particularly rural womenMICRO CREDIT FINANCING THROUGH SELF-HELP GROUPSFOR THE MARGINALIZED WOMEN IN VILLAGES.a. Launch of Shriram Rural Development Project (SRDP) to create and developb. Social and human capital among the poor.c. Micro credit financing through self help groups in 156 villages in Tamil Nadu, Andhra Pradesh and Karnataka.PRIMARY EDUCATION FOR THE RURAL POOR:The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai,Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. InAndhra Pradesh. Over 2000 children receive free education. Schools offereducation up to class VII and student will progressively move up to highersecondary level.FUTURE PLANS :a. To start six primary schools for the rural poor in the villages of Andhra Pradesh.b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six districts.BABASAB PATIL
    • c. Immediate Plans: to start two schools in Cudapah and Guntur districts in June 2005.LONG TERM BENEFITS OF THE PROGRAM:a. Reduction in rural indebtednessb. Bank/institutional credit for investment in income – generation activities.c. Improved household food security round the year, better nutrition.d. Improved household income.e. Empowerment of Women.f. Greater leverage and status of SHG members in local communities and with the state.THE FUTURE ACCORDING TO SHRIRAM 1. To enlarge the scope of micro credit financing activity through NBFC Shriram Investment Limited. 2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh. 3. To lend credit at low interest rates to 3 lakh women below poverty line in the next 3 years.NATIONAL AWARDS WON • Business World Compaq award fota Social Responsiveness instituted by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant on 1999.BABASAB PATIL
    • • Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of Business Administration (LIBA), Chennai in 2002. PRODUCT PROFILE1.TRUCK FINANCE 1. Shriram Truck Financing Companies. The wheels of progress.BABASAB PATIL
    • 2. Largest NBFC in the country exclusively engaged in financing of heavy commercial vehicles. 3. Monopoly position in financing of used vehicles. 4. All India presence with a branch network of 260 offices and employing over 4000 people. 5. Growing at the rate of 30% per annum. 6. Funds managed – Rs 6000 crores. 7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO Netherlands have added tremendous value and strength. 8. Venture capital firm Chris capital joins as a strategic partner by acquiring 21% equity. We entered the Consumer Durable Finance business in early 2002 throughShriram City Union Finance Ltd., the consumer finance arm of the group.Within a short span of 2 years, we have managed a portfolio of over Rs.584crore.Our monthly business amounts to over Rs.25 crore in individual loans, rangingfrom as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12months to 36 months.Since its inception, we have financed over 2,15,000 white goods and two-wheelers, with over 90% of the business arising out of the non-metro markets.This financing is backed by lines of credit extended by ICICI Bank, UTI Bankand Development CreditBABASAB PATIL
    • THE GROUP COMPANIES ATHAT CATER TO TRUCKFINANCING NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE Shriram Investments Limited in the South Shriram Transport FinanceCompany Limited in the West Shriram Overseas Finance Limited inNorthern/Eastern regions in India.OUR EQUITY PARTNERSCiticorp financial services Ltd. An arm citigroup has taken 14.9% equity stakein Shriram investments Limited and Shriram Transport Financial CompanyLimited in 2002.FMO the Dutch Government owned financial services company has recentlypicked up equity stake in SIL and STFC. The company has extended a longterm debt of 6 million Euros each to the two companies.Reliance Capital has also taken an equity stake in the two companies at apremium.. AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING BUSINESS IN INDIA AREA OF OPERATION ALL INDIABABASAB PATIL
    • Branch offices 260 Employees 4000 Depositors 12.20 lakhs Agency Force 15,000 plus resident representatives 1300. Funds managed Rs. 6000 crores Net worth Rs. 349 crores Major exchanges including the BSE and Stock Listing the NSE.2.CONSUMER FINANCE:- We entered the consumer Durable Finance Business business in early2002. through Shriram City Union Finance Ltd. The consumer arm of thegroup. Within a short span o 2 years, we have managed a profile of over rest684 crores in this business. Our monthly business amounts to over Rs. 25 crores in individualloans, ranging from as little as Rs.8000 to Rs. 100000 and with tenuresranging from 12 months to 36 months. Since its inception we have financed over 215000 white goods andtwo wheelers with over 90% of the business arising out of the non metromarkets. This financing is backed by lines of credit extended byICICI Band, UTI Bank and Development Credit.BABASAB PATIL
    • 3.CHIT FUNDS:-Shriram chits – prosperityShriram chits is the largest chits fund in the country. We have grown tobecome a trusted household investment option. The growth registered byShriram Chits recent years not only indicated the usefulness of this savingsinstrument, but is also a reflection our customers trust in.Chits one of the earliest investment instrument known to man, were foundedby the enlightened communities of India. These have, ever since, worked tothe advantages of communities that are batting scarce capital resource.Shriram chits started its operations in the year 1974 with a single branch thathas quickly grown into trusted household name for making chits a viable formof saving and borrowing to all sections of the social.Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnatakaand Maharastra, where has a reputation for timely disbursement of funds andexcellent customer services which differen tiates it from other companies.Using state of the art computer systems/networks and a transparentaccounting system, Shriram Chits have transformed this contemporary mehodof savings into an attractive personalised to banking system.BABASAB PATIL
    • 4.GENERAL INSURANCE:-Shriram group has adopted a two strategy in this segment. 1. Broking arm – Armour Consultants – floated in year 2002 2. Retail Marketing Arm: Ski Marketing flotred in year 2001.ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCEEXPERTS AT YOUR SERVICEAmour consultant is engaged in insurance broking in corporate insurancemarkets and has already aggregated business volumes in excess of Rs. 200crores ($ 44 million) in premiums.Amour consultant comprises a team of distinguished professionals frominsurance, finance, law and other management discipline, who have vastbusiness and managerial experience. The company has handled major claimsfor renowned clients. There have been several claim cases that were won evenin the arbitration stage. The tern at Armun Consultants begins with an in depth evaluationof the client company’s business environment. The company’ risk profile isthen studied. Based on the results of these evaluations. The team then suggeststhe most cist effective, integrated insurance package that is perfectly suited tothe company’s risk profile.The company plans to extend its customer base of the existing 500000 policyholders to cross the 1 million mark by the end of financial year 2005-06.BABASAB PATIL
    • 5.LIFE INSURANCE:-The shriram group plans to enter the life insurance segment 05. Amapplication has already been filed with the IRDA for the same. We are alsoexploring the possibilities of collaborating with a foreign partner in thisventure. We expect to be a major player in this very fast growing sector, as anatural corollary of business philosophy and expertise.6.STOCK BROKING:-Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It isa member of the National Stock Exchange , India and the Multi CommodityExchange. This unit has expended the network by 150% over the last year andtoday it has more than 230 terminals spread across the length and breadth ofthe country. It has a retail customer base of around 50000.The company launched its new products like Derivatives and commodityTrading in early 2004.A QUICK LOOK AT SOME OF THE SALIENT FEATURES • Limits of all clients are fixed at a pre-calculated level. • This is benefical to them in the long run as it prevents overtrading. • Atimely payments and direct share transfer facility from NSE. • Adequate risk control research support. • The clincher. Proactivate and preventive risk control.BABASAB PATIL
    • ORGANISATION CHART BOARD OF DIRECORS SHIRAM TRANSPORT FINANCE COMPANY LIMITEDBABASAB PATIL
    • R Sridhar Managing Director S. Venkatakrishnan Executive Director Umesh G Revankar Executive Director K.R.C Sekhar Director S. Ranganathan Nominee of Citicorp Finance (India) Ltd. Dr. T S Sethurathnam Nominee of IREDA ltd. Company Secretary & Compliance K. Prakash OfficerSAMPLING:Sample plan to know the perception of customers in this project is throughpersonal interview.SAMPLE UNIT:I have taken the customers who are owning a truck or (HCV).BABASAB PATIL
    • SAMPLING METHOD;I have used Non- probability sampling i.e. Stratified Random Sampling.Sample size for this project is 100 customers who are truck owners.RESEARCH DESIGN:In this research design of this project the study was conducted by the surveymethod.Taking sample of 100 customers owning trucks by commencing samplingusing the research instrument as the questionnaire.Personal interview is considered as the sample plan.For this project area of research is Hubli City.DATA COLLECTION METHOD:I have collected the data from the following sources:A. PRIMARY DATA:  The data collected from the company persons.BABASAB PATIL
    •  QuestionnairesB. SECONDRY DATA:  Interviewing with the owners of trucks  Internet  Magazines, Catloges, etc.MEASURING TOOLS:For preparing this project I have considered questionnaire as measuring toolfor collecting the data.BABASAB PATIL
    • CHAPTER - IIICHAPTER IIIRESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-1) Do you own a HCV? Table: 3.1BABASAB PATIL
    • Number of customers Percentage Yes 100 100% No Nil Nil Total 100 100% The information presented in table3.1 reveals that:- ⇒ Almost all respondents are owning Heavy Commercial Vehicle.The same information is presented in the form of diagrammatically asfollows:- Diagram-3.1 100 100 80 60 Percent 40 20 0 0 Yes No Responses Yes NoBABASAB PATIL
    • 2. Source of finance for your HCV? Table: 3.2 Sources Number of customers Percentage Co-op banks 4 4% STFC 61 61% Tata finance 19 19% Others 16 16% Total 100% 100% The information presented in table3.2 reveals that:- ⇒ 61% respondents have taken loan from STFC . ⇒ 19% respondents have taken loan from tata finance and 4% from co-op banks. ⇒ While remaining 16% have taken from other finance companys.The same information is presented in the form of diagrammatically asfollows:-BABASAB PATIL
    • Diagram-3.2 70 61 60 50 Percent 40 30 19 16 20 10 4 0 Co-op banks STFC Tata finance Others Responses Co-op banks STFC Tata finance Others3. Are you aware of STFC? Table:3.3BABASAB PATIL
    • Number of customers Percentage Yes 100 100% No Nil Nil Total 100 100% The information presented in table- 3.3 reveals that:- ⇒ Almost all respondents are aware of STFC . The same information is presented in the form of diagrammatically as follows:- Diagram-3.3 100 100 80 60 Percent 40 20 0 0 S1 Yes No Responses Yes NoBABASAB PATIL
    • 4) How did you come to know about this company? Table:3.4 Sources Number of customers Percentage Friends 38 38% Agents 24 24% Advertisements 32 32% Others 6 6% Total 100 100% The information presented in table3.4 reveals that:- ⇒ 38% respondents have bought finance from STFC on the advice of their friends. ⇒ 24% will seek the advice of agents. ⇒ While 6% from others and 32% on the basis of Advertisements.BABASAB PATIL
    • The same information is presented in the form of diagrammatically asfollows:- Diagram-3.4 38 40 35 32 30 24 25 Percent 20 15 10 6 5 0 Friends Agents Advertisements Others Responses Friends Agents Advertisements Others5. Do you get the finance quickly from STFC? Table:3.5BABASAB PATIL
    • Number of customers Percentage Yes 84 84% No 16 16% Total 100 100% The information presented in table3.5 reveals that:- ⇒ 84% respondents are in favour of quick finance availability from STFC . ⇒ While remaining 16% of them are not in favour of quick finance.The same information is presented in the form of diagrammatically asfollows:- Diagram-3.5 No 16% Yes 84% Yes NoBABASAB PATIL
    • 6) Are you satisfied with the documentation process at STFC? Table:3.6 Sources Number of customers Percentage Highly Satisfied 28 28% Satisfied 42 42% Neither satisfied/dis- 14 14% satisfied Dis-Satisfied 14 14% Highly dis-Satisfied 2 2% Total 100 100%The information presented in table3.6 reveals that:- ⇒ 28% of the respondents are Highly Satisfied with the documentation process at STFC , 42% of the respondents are Satisfied and from the analysis 14% of them are Neither satisfied/dis-satisfied . ⇒ Nearly 14% of the respondents are dis-Satisfied and 2% of them are Highly dis-Satisfied . The same information is presented in the form of diagrammatically as follows:-BABASAB PATIL
    • Diagram-3.6 50 42 40 28 30 Pecent 20 14 14 10 2 0 Highly Satisfied Neither Dis-Satisfied Highly dis- Satisfied satisfied/dis- Satisfied satisfied Responses Highly Satisfied Satisfied Neither satisfied/dis-satisfied Dis-Satisfied Highly dis-SatisfiedBABASAB PATIL
    • 7) Do you require any changes in the documentation process? Table:3.7 Number of customers Percentage Yes 28 28% No 72 72% Total 100 100% The information presented in table3.7 reveals that:- ⇒ 28% of the respondents require changes in documentation process at STFC . ⇒ While 72% of the respondents are Satisfied with the documentation process at STFC .The same information is presented in the form of diagrammatically asfollows:- Diagram-3.7 Yes 28% No 72% Yes NoBABASAB PATIL
    • 8. What do you feel about the interest rates at STFC? Table:3. 8 Sources Number of customers Percentage Very High 16 16% High 44 44% Moderate 34 34% Low 6 6% Total 100 100% The information presented in table3.8 reveals that:- ⇒ 16% of the respondents are in favour that interest rate at STFC is very high and 44% of them are in favour of High rates. ⇒ While 34% of them are in favour of moderate interest rates and 6% for low interest rates.BABASAB PATIL
    • The same information is presented in the form of diagrammatically asfollows:- Diagram -3.8 50 44 40 34 percent 30 20 16 10 6 0 Very High High Moderate Low Responses Very High High Moderate LowBABASAB PATIL
    • 9) Are you satisfied by the percentage of finance provided bySTFC? Table:3. 9 Number of customers Percentage Yes 88 88% No 12 12% Total 100 100% The information presented in table3.9 reveals that:- ⇒ 88% of the respondents are Satisfied with Percentage of finance given by STFC . ⇒ While 12% of them are not Satisfied .The same information is presented in the form of diagrammatically asfollows:- Diagram-3.9 No 12% Yes No Yes 88%BABASAB PATIL
    • 10). Are you satisfied with the services offered by STFC? Table:3. 10 Sources Number of customers Percentage Completely Satisfied 10 10% Satisfied 32 32% Neither satisfied/dis- 20 20% satisfied Dis-Satisfied 29 29% Completely dis- 9 9% Satisfied Total 100 100% The information presented in table3.10 reveals that:- ⇒ 10% of the respondents are completely Satisfied with the service offered y STFC, 32% of the respondents are satisfied and from the analysis 20% o the respondents are Neither satisfied/dis-satisfied . ⇒ Nearly 29% of them are dis-Satisfied and remaining 9% of them are completely dis-Satisfied . BABASAB PATIL
    • The same information is presented in the form of diagrammatically as follows:- Diagram-3.10 35 32 29 30 25 20Percent 20 15 10 10 7 5 0 Completely Satisfied Neither Dis-Satisfied Completely Satisfied satisfied/dis- dis-Satisfied satisfied Responses Completely Satisfied Satisfied Neither satisfied/dis-satisfied Dis-Satisfied Completely dis-Satisfied BABASAB PATIL
    • 11) What are the features that attracted you to borrow loanfrom STFC? Table:3. 11 Sources Number of customers Percentage Low interest rates 6 6% Easy documentation 10 10% Quick finance 84 84% Low EMI Nil Nil Total 100 100%The information presented in table3.11 reveals that:- ⇒ 84% of the respondents are attracted by quick finance. ⇒ 10% of the respondents for easy documentation. ⇒ While remaining 6% for low interest rates.The same information is presented in the form of diagrammatically asfollows:-BABASAB PATIL
    • Diagram 3.11 100 84 80 Percent 60 40 6 10 20 0 0 Quick finance documentatio Low interest Low EMI rates Easy n Responses Low interest rates Easy documentation Quick finance Low EMI 12. How do you rate STFC with respect to other finance companies?BABASAB PATIL
    • Table:3. 12 Sources Number of customers Percentage Tate 12 12% Ashok Leyland 18 18% STFC 26 26% HDFC 18 18% ICICI 14 14% SBI 12 12% Total 100 100% The information presented in table3.12 reveals that:- ⇒ 12% of the respondents rated Tata in the 1st place with other company’s and 18% of them for Ashok Leyland and HDFC in 2nd place. ⇒ 26% of them rated STFC in 3rd place. ⇒ Nearly 14% of them for ICICI in 4th place.The same information is presented in the form of diagrammatically asfollows:-BABASAB PATIL
    • Diagram-3.12 30 26 25 20 18 18 14Percent 15 12 12 10 5 0 Tata Ashok STFC HDFC ICICI SBI Leyland Responses Tata Ashok Leyland STFC HDFC ICICI SBIBABASAB PATIL
    • 13. What is your experience when you approached the executivesof STFC for finance of HCV? Table:3. 13 Sources Number of customers Percentage Very good 22 22% Good 48 48% Neither good/bad 24 24% Bad 4 4% Very bad 2 2% Total 100 100% The information presented in table3.13 reveals that:- ⇒ 22% of the respondents are in favour of very good behaviour from the executives of STFC , 48% of them are in favour of good behaviour. ⇒ 24% of them are in favour of Neither good/bad. ⇒ While 4% of them are bad and 2% very bad. BABASAB PATIL
    • The same information is presented in the form of diagrammatically asfollows:- Diagram-3.13 60 48 50 40 Percent 30 22 24 20 10 4 2 0 Very good Good Neither Bad Very bad good/bad Responses Very good Good Neither good/bad Bad Very badBABASAB PATIL
    • 14. Are your queries cleared quickly? Table:3. 14 Number of customers Percentage Yes 82 82% No 18 18% Total 100 100%The information presented in table3.14 reveals that:- ⇒ 82% of the respondents are in favour that their enquiries are cleared quickly at STFC . ⇒ While remaining 18% of them are telling their queries are not cleared quickly.The same information is presented in the form of diagrammatically asfollows:- Diagram-3.14 No 18% Yes 82% Yes NoBABASAB PATIL
    • 15. Are you satisfied with the repayment system of STFC? Table:3. 15 Number of customers Percentage Yes 64 64% No 36 36% Total 100 100%The information presented in table3.15 reveals that:- ⇒ 64% of the respondents are Satisfied with repayment system at STFC. ⇒ While remaining 36% of them requires changes in repayment system.The same information is presented in the form of diagrammatically asfollows:- Diagram-3.15 No 36% Yes 64% Yes NoBABASAB PATIL
    • 16. Do you recommend STFC to others? Table:3. 16 Number of customers Percentage Yes 68 68% No 32 32% Total 100 100%The information presented in table3.16 reveals that:- ⇒ 68% of the respondents are in favour of recommending STFC to others for taking loan. ⇒ While remaining 32% of them are not in favour of recommending to others.The same information is presented in the form of diagrammatically asfollows:- Diagram -3.16 No 32% Yes 68% Yes NoBABASAB PATIL
    • 17. Do you want to take finance in near future from STFC? Table:3. 17 Number of customers Percentage Yes 60 60% No 40 40% Total 100 100%The information presented in table3.17 reveals that:- ⇒ 60% of the respondents wants to take finance in near future from STFC. ⇒ While remaining 40% of them are not in favour of taking finance from STFC .The same information is presented in the form of diagrammatically asfollows:- Diagram-3.17 No 40% Yes 60% Yes NoBABASAB PATIL
    • CONCLUSIONLess than anticipated growth in the face of intensifying competition and risingcosts, can hardly be expected to get the company foaming. By seeing the observations most of the customers are having positiveperception towards Shriram Transport Finance Company Limited and aresatisfied with their services such as Quick finance, Easy documentationprocess etc. The company is progressing continously in the field of finance asNon-Banking Finance Company to compete with other Financial as well asNon-banking financial institutions. STFC is the Non-Banking Financial Company in the Indian scenarioand it is the leader with monopoly position in financing for HeavyCommercial Vehicles.BABASAB PATIL
    • SUGGESTIONS  The firm should tap the un-tapped locations & market. This will help them in increasing the business. Rural places are advised  The company should bring down their interest rates compared to other competitor rates.  The STFC should increase their seizing period from 3 months to 4 months during slack season if the customers fails to pay their instalments.  The STFC should maintain consistency in customer satisfaction level in future also.  The brand awareness campaigns should be conducted. The firm should work on its Advertisements.  Number of customers complaints should be reduced, because always cost is associated in solving these problems.BABASAB PATIL
    • CHAPTER-4BABASAB PATIL
    • QuestionnaireDear Sir/Madam,1.Do you own a HCV? Yes [ ] No [ ]2. Source of finance for your HCV? Co-op banks [ ] STFC [ ] Tata finance [ ] Others [ ]3. Are you aware of STFC? Yes [ ] No [ ] ( If no go to Question No:- 17 ).4. How did you come to know about this company? Friends [ ] Agents [ ] Self experience [ ] Others [ ]5. Do you get the finance quickly from STFC? Yes [ ] No [ ]6. Are you satisfied with the documentation process at STFC? Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither satisfied/ Dis-satified [ ] Satisfied [ ] Strongly Satisfied [ ]7. Do you require any changes in the documentation process? Yes [ ] No [ ] If Yes specify _______________________________.BABASAB PATIL
    • 8.What do you feel about the interest rates at STFC? Very High [ ] High [ ] Moderate [ ] Low [ ] 9. Are you satisfied by the percentage of finance provided by STFC? Yes [ ] If No specify _________.10. Are you satisfied with the services offered by STFC? Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither satisfied/ Dis-satified [ ] Satisfied [ ] Strongly Satisfied [ ]11. What are the features that attracted you to borrow loan from STFC? Low interest rates [ ] Quick finance [ ] Easy documentation [ ] Low EMI [ ]12. How do you rate STFC with respect to other finance companies ( 1 being highest and 6 being lowest)/ 1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ]13. What is your experience when you approached the executives of STFC for finance of HCV? Very Good [ ] Good [ ] Neither Good/Bad [ ] BABASAB PATIL
    • Bad [ ] Very Bad [ ]14. Are your queries cleared quickly? Yes [ ] No [ ]15. Are you satisfied with the repayment system of STFC? Yes [ ] No [ ]16. Do you recommend STFC to others? Yes [ ] No [ ]17. Name the other finance companies you know? ____________________________________.18. Do you intend to take finance in near future from STFC? Yes [ ] No [ ] 19. Please provide some suggestions in improving the quality ofservice at STFC?_______________________________________________________ ________________________________________________.Please provide the below mentioned information: BABASAB PATIL
    • Name:_______________________________________________________Address:_______________________________________________________Occupation: _____________________________Annual Income ______________________Gender: Male [ ] Female [ ] ** Thank You ** BABASAB PATIL