Organisation Study @ V-Guard Industries Ltd


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Organisation Study @ V-Guard Industries Ltd

  2. 2. 1.1 GENERAL OVERVIEW An organization is a social arrangement which pursues collective goals, controls its own performance, and has a boundary separating it from its environment. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon. Organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under timelimitedwork contracts or work orders, or under permanent employment contracts or program orders. The organisational study was undertaken mainly to study the department functions of VGuard Industries ltd. Established in the year 1977,from the vision of one man, Kochouseph Chittilapilly. V-Guard is nurtured by quality consciousness, passion for hard work and the will to succeed. V-Guard‘s product range deals into various ranges of products which cater the requirements of consumer durable industry, agriculture and construction sectors of the country. V-Guard with its diversified products has a strong distribution and marketing channel in small towns across India, which helps in tapping the rural and the interior market. 2
  3. 3. 1.1.1 OBJECTIVE OF THE STUDY Primary Objective:The main objective of the study is to have a practical knowledge about the functioning of the organisation. Secondary Objective:To understand the organisation structure. To study various functional areas of the organisation. To understand how theory matches with practice. To understand the duties and responsibilities of various department heads. To identify the strengths, weakness, opportunities and threats of the organisation. 1.1.2 METHODOLOGY OF STUDY The organisation study has been conducted by using qualitative form of analysis. But enough attention is given for careful and complete observation of organisation and its functions. Sources of data collection The main sources of primary data are: 1. Discussions and interviews with managers and employees of V-Guard Industries Ltd. 2. Observation method. Secondary Data : The major source of secondary data includes company manual brochures circulars, annual report and various other internal documents. In addition to this related Articles from journals, books, magazines, internet were referred. 3
  4. 4. 1.1.3 PERIOD OF STUDY This study has been conducted at V-Guard Industries Ltd, during the period 2nd May 2012 to 5th June 2012. 1.1.4 SCOPE OF STUDY The study is confined to gain some knowledge about the culture and structure of the organization and the functions of departments of V-Guard Industries Ltd., Cochin. 1.1.5 LIMITATIONS The main constraints or limitations for the study were: Limited time available for the study. Authorities of all the departments had a busy schedule and hence there was no scope for detailed interviews or interaction with them. 4
  5. 5. 1.2INDUSTRIALPROFILE The Indian electrical equipment manufacturing industry is witnessing a sustained growth momentum, with the industry registering a double digit growth in the financial year 201011, in spite of sustained imports, especially from China and South Korea. The domestic electrical equipment manufacturing industry clocked a 16.6 per cent growth during the first quarter of 2011- 2012, the same as in the previous year, according to industry estimates. The Indian Electrical and Electronics Manufacturers‘ Association (IEEMA),an industry association of manufacturers of electrical, industrial electronics and allied equipment, has based these growth figures on the production and sales data collected from its member organizations. The electronics industry in India took off around 1965 with an orientation towards space and defense technologies, which was initiated and controlled by the government. This was followed by developments in consumer electronics mainly with transistor radios, black and white TV, and other audio products. In 1982, the government allowed thousands of color TV sets to be imported into the country to coinciding with the broadcast of Asian games in New Delhi. The year 1985 witnessed the advent of computers and telephone exchanges, which was succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics during which the industry witnessed continuous and rapid growth. From 1991 onwards, there was first an economic crisis triggered by the gulf war which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors, and more recently the trend towards convergence of technologies. After the software boom in mid 1990s, India‘s focus shifted to software. In recent years, the electronic industry is growing at a brisk pace. It is currently worth $ 10 billion but according to estimates has the potential to reach $ 40 billion by 2011. The largest segment is the consumer Electronic Spare Part, which is also the largest export segment of components. 5
  6. 6. 1.2.1SECTOR OVERVIEW Due to increased focus on power quality and energy efficiency by utilities, discoms and user industries, demand for capacitors surged by 35 per cent in 2010-11. Rising demand from power grid, independent power producer (ipp) and some utilities for high voltage (hv) and extra high voltage (ehv) switchgear including products like automatic identification system (ais), geographic information system (gis) resulted in a 28 per cent growth. Pent up demand of medium voltage breakers for substation projects resulted in huge growth of more than 30 per cent. A positive high is the increased participation from organized sector visible due to BEE (Bureau of Energy Efficiency- star labelling programme), rapdrp (restructured accelerated power development and reform programme) and cea‘s (central electricity authority) recent recommendations for utilities to procure minimum three-star rated distribution transformers. Presently, Indian exports of electrical equipment are less than 1 per cent of the global trade. With the electricity sector being a sunrise sector across the entire developing world, there also exists a significant export potential for the domestic industry. Industry experts believe the ideal way forward to sustain the growth momentum would be faster goods and services tax (gst) implementation, creation of level playing field, increased focus on exports and sme development. This will lead to further acceleration in the industry‘s growth process and contribute significantly reducing the power demand-supply gap in the country. 1.3ROBUST GROWTH OUTLOOK FOR CONSUMER DURABLES IN INDIA Voltage stabilizer are considered to be a necessity in most parts of India to protect consumer appliances like TV, refrigerators, air conditioners etc. as many regions in India face problem of poor quality power supply fluctuation & high voltage. Though some models of these appliances are sold with built in stabilizer, many consumers still prefer to employ stabilizer for complete protection. 6
  7. 7. The market for consumer durables is estimated at Rs 300 billion and is expected to reach Rs 500 billion by 2015. While the urban consumer durables market is growing at an annual rateof 9% to 12%, the rural durables market is growing at 30% annually. India is a power-deficient country with the per capita consumption of electricity at 566KW as compared to the global average of 2782KW. With the improvement in per capita power availability and consumption, the demand for electrical and consumer durable goods will increase. Factors governing the growth of electrical and electronic industry: Research and development played an important role to the increased productivity and higher value added electrical and electronic products. Foreign investments accelerated growth in production and export. To expand their business, foreign companies have done made investments which lead developing countries in establishing production units. Global industries like medical, telecommunications, industrial and automotive industries have been cordially supported by electrical and electronic industry. Increase in income changed living standards of the common mass. As a result , it increased in the demand of electronics especially consumer electronics product globally Asia pacific region is emerging as the most spinning place for the consumer electronics industry, as the market remains still unreached. Innovation has played importantly in this industry .It led to a consistent demand for newer and faster products and applications. 7
  9. 9. 2.1 OVERVIEW V-Guard Industries Limited is a house hold name across India, a Kerala based company, manufacturing and marketing of electrical and electronic products. Established in 1977, from the vision of one man, Kochouseph Chittilapilly, V-Guard is nurtured by quality consciousness, passion for hard work and the will to succeed. With a production of over 1, 25,000 Stabilizers and processing 500 tons of copper every month.VGuard Industries Ltd has crossed a gross turnover of Rs. 1000 crores for the financial year 2011-12. A point to be noted is that V - Guard had achieved a turnover of 100 crores in 2000 and has grown by a whopping 10 times in the last 11 years. India‘s largest manufacturer of voltage stabilizer (source: IMRB survey in India) enjoys brand popularity in all over India and is now making a global presence with its increasing exports and markets spread over the world. V-Guard‘s success is measured not in terms of financial considerations, but in terms of customer satisfaction and quality that is built into every product. V-Guard has employee strength of more than 1300 and over 5500 indirect employees through its SHG initiatives. With nearly 230 distributors and service centres and above 9500 retailers serving the needs of a 50 million customers, V-Guard stands as a market leader spread across all states in India except North East and J&K,with prompt, efficient and courteous after-sale service, that is the foundation for V-Guard‘s excellent customer relations. In fact, millions of satisfied customers have played a pivotal role in promoting V-GUARD‘s image. Currently V-Guard‘s products are Electronic Voltage Stabilizer for TV, DVD, Refrigerator and Air Conditioner, Digital Stabilizers, UPS, Monobloc / Jet / Compressor / Submersible Pumps, Electric & Gas Water Heaters, PVC House Wiring Cables, LT Power & Control Cables, Ceiling/Table/Pedestal/Wall mounting Fans, Solar Water Heaters, Inverters/Digital UPS, MCB and Switch Boards. The company has electro controls division in a state-of-theart facility for the production of stabilizer cabinets, the fully automated, ISO 9001 Certified Electrical Cable Division located at Coimbatore, facilitating the manufacturing of electrical cables starting from 0.25sqmm size to 10sqmm size and the Solar Water Heater plant uses International Manufacturing Technologies with high quality standards. The ‗V-Guard‘ brand name is a household name in India and helped a lot to promote other products. At V-Guard, Quality is not an accident but a continuous process, beginning with the 9
  10. 10. careful selection of only the finest components through the best sources. From hi-tech product designs to stringent quality checks at every stage of the manufacturing process, to ensure world class performance, V-Guard‘s passion for perfection gets first priority. Then comes the service to the customers. At V-Guard success is measured in terms of customer satisfaction. The pricing of the product also plays a major role in marketing. V-Guard does not believe in creating an artificial demand for their product. Before a product is advertised it is made available in the market so as to avoid inconvenience and confusion to the customer. V-Guard Supply Chain Division is playing an important role in the safe distribution of goods all over the country with speed. In the meanwhile V-Guard had another ace up on her sleeve. A 20 crore P.V.C. cable manufacturing unit at Coimbatore completed with imported machinery, now manufacturing House Wiring Cables, Flat Cables, Round Cables, Submersible Cables and Power Cables. V-Guard is also manufacturing Solar Water Heaters (Models ranging from 100 LPD to 10000 LPD) at its own factory located near to Coimbatore. The company is also introducing two new products - domestic switch gear and induction cooker in the market in the current financial year. This is the first entry of V-Guard in the kitchen appliances segment. 2.2COMPANY HISTORY The foundation of business was laid with the formation of a Partnership Concern viz. Premiere Electronics by Promoter Mr.KochousephChittilapilly in the year 1977 which was engaged in the business of manufacturing and marketing voltage stabilizers under the brand name V-Guard. In the year 1992, Premier Electronics, the partnership concern was dissolved and Mr.Kochouseph Chittilapilly continued thebusiness as a proprietaryconcern.Also, in the year, 1985, Mr.Kochouseph Chittilapilly started another proprietorship concern by the name of M/s Prompt India for marketing of the products under the brand name of V-Guard. Subsequently, M/s Prompt India changed its name to M/s V-Guard Industries. On February 12, 1996, Company was incorporated under the name of V-Guard Industries Limited culling ‗v‘ from volt and a kangaroo mascot to indicate protection under the Companies Act, 1956, with the Registration No. 09-10010 of 1996 having its registered 10
  11. 11. office at 44/1037, Little Flower Church Road, Kaloor, Cochin- 682017, Kerala, India. With effect from 1st April, 1996, the company took over the business of theproprietary concern i.e. M/s V-Guard Industries, on-going concern basis for a lump sum consideration of Rs.234 lakhs and carried on the business of the firm namely manufacturing and marketing of electronic and electro mechanical appliances. With effect from November 15, 2001 the Company was converted into a private limited company and converted into a public limited company on August 1, 2007 and received a fresh certificate of incorporation in the name of V-Guard Industries Limited. V – Guard has now diversified into a multi-product company which now manufactures and markets Electronic Voltage Stabilizers, Monobloc,Jet, Submersible, Compressor Pumps and Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way. 2.3PROMOTERS OF V-GUARD • Mr KochousephChittilapilly, Post graduate in Science majoring in Physics from Calicut University. • Ms Sheela Kochouseph, B.Sc. Home Science graduate from University of Calicut. 2.4BOARD OF DIRECTORS • Managing Director: Mr Mithun Chittilapilly is a Post Graduate in Finance from University of Melbourne, Australia. Mr Mithun after completing his Graduation in Commerce joined V-Guard to be trained in the various departments of the company. 11
  12. 12. • Joint Managing Director: Dr. George Sleeba is a Graduate in Mechanical Engineering with First Class Honours from Kerala University and M Tech in Industrial Engineering from IIT, Madras. Dr. Sleeba has a Post Graduate Diploma in Management from All India Management Association (AIMA) and Doctorate in Social Sciences from the Cochin University of Science & technology (CUSAT). • Chairman: Mr P.G.R Prasad is a Certified Associate of the Indian Institute of Bankers, Chartered Financial Analyst and Certified Financial Planner, Financial Planning Standards Board India. He was inducted to the Board of Directors of V-Guard as an Independent Director on 16th August, 2007. • Vice Chairman: Mr Kochouseph Chittilapilly is a post graduate in Science majoring in Physics from Calicut University. He started his career as a Supervisor in an electronics company, where he worked for 3 years. 2.5INDEPENDENT DIRECTORS • Mr C.J George Aged 49 years, is a Post Graduate in Commerce, Certified Financial Planner and a Research Scholar with School of Management Studies of Cochin University of Science and Technology. He joinedthe company as an Independent Director on 16th August 2007. • Mr A.K Nair Appointed as the Non-Executive Director of the Company on 27th May 2009 Mr A.K.Nair holds a Bachelor‘s degree in Mechanical Engineering with Masters in Business Administration and has over 45 years of experience in engineering industry. 12
  13. 13. 2.6 COMMITIES • Audit Committee • Remuneration Committee • Share transfer/ Shareholders Grievance Committee • IPO Committee 2.7VISION ―Let us endeavour to make v guard a trusted household name.‖ 2.8MISSION 1. To offer a range of products at affordable prices, which add to comfort of life through saving in manual labour time and energy or for entertainment 2. To make their products meet international quality standards and provide trouble free performance. 3. To adopt designs, which support timely brand efficient post sales service. 4. To continuously innovate and add value to their products, if needed with technical collaboration. 2.9BUSINESS STRATEGY • Maximise revenue through capacity expansion and increase in efficiency. • Reduction in cost of borrowing. • Enhancing production efficiency and minimize process losses • Reduce operational costs and be cost competitive • Have a consumer centric approach • Deliver value for money to our clients 13
  14. 14. • Adopt best practices in all functions and processes 2.10MAIN OBJECTS OF COMPANY DURING INCORPORATION To establish and carry on the business of manufacturing, selling, distributing or otherwise dealing in all types ofelectrical, electro mechanical, and electronic appliances, equipment, lighting and lighting fixtures, accessories and spares including stabilizers, electric motors, pump sets, clocks, time pieces, watches, water heaters, washing machines, dish washers, ovens, mixies, electric irons, refrigerators, television sets, air conditioners, communication equipment‘s photocopying machines, cameras, panel boards, relays, switch gears, switches and control gears, circuit breakers, transformers, electric meters, water meters, uninterrupted power supply systems, constant voltage transformers, accumulators and computers, security alarms, security systems, door locks with or without power, padlocks, other locking devices, printed circuit boards of all kinds and for all purposes whether populated or otherwise, insulated cables, insulated and enamelled winding wires of all varieties and uses, all kinds of tubes, pipes, pipe fittings, hoses, components, accessories, moulded goods of all kinds and for all purposes including tanks, containers, bottles, toys and all other blown, moulded, formed or extruded goods and articles, whether made of steel, alloys, stainless steel, PVC, plastics, rubber or any other metal, or substance or materials, photovoltaic solar energy devices/systems such as lighting, pump sets, audio-video equipment‘s, fans and all kindsof solar energy systems. 2.11QUALITY POLICY/PROCESSES V-guard has a holistic, enterprise -wide approach to quality. Utmost care is taken while selecting the various components that go into production. Sourcing is done from manufactures of repute. Each component is checked for quality compliance ,and those that do not meet set parameters are rejected. Various checkpoints along the production line ensure quality standards are adhered to. Post-production inspection and certification ensures each individual product that moves off the assembly line conforms to internationally accepted quality and performance benchmarks. It is v-guard commitment to the quality that has made it ‗the name you can trust‘. 14
  15. 15. MNRE - CRISIL The Solar Water Heater Division was awarded the prestigious MNRE – CRISIL rating which indicates High performance Capability and moderate Financial Strength of the company to undertake off grid projects in Solar Thermal Technology. BIS CERTIFICATION The PVC cable factory at Coimbatore bears the Bureau of Indian Standards certification for quality of the cables produced. The Pumps and motor factory at Coimbatore (Electro Mechanical Works) bears the Bureau of Indian Standards certification (Licence CM/L - 3315141 as per IS 14220: 1994) for quality of the pumps produced. ISO 14001:2007 V-Guard factories at Coimbatore and Kashipur also bear the ISO certification for conforming to the highest international standards of environment management systems. This certification extends over manufacturing of products like PVC sheathed/unsheathed insulated cables, LT power & control cables and solar water heaters. ISO 9001:2008 The V-Guard R&D division at Cochin was awarded the ISO 9001:2008 for excellence in quality management systems in Design and Development of Electronic Equipments proving the efficacy of the efforts at V-Guard to reinvent products. OHSAS 18001: 2007 Concern for employee safety has even lead to OHSAS certification of the Coimbatore and Kashipur factories. 15
  16. 16. 2.12MILESTONES ACHIEVED 1977 Mr.KochousephChittilapilly sets up Premier Electronics with an investment of Rs. one lakh and with just two employees. Two Refrigerator Stabilizers were manufactured each day. 1980 1982 1983 Launched AC Stabilizers. Started another unit called "Universal Electronics". Started "Supreme Electronics". 1986Started "Prompt India".Expanded operations outside Kerala by opening of Tamil Nadu branch, followed by a branch in Karnataka. Prompt India started marketing Stabilizers in the brand name of V-Guard. 1987 1989 1992 1996 Launched Servo-Controlled Stabilizers. 'Prompt India' converted into 'V-Guard' Industries. Launched V-Guard Pumps and started new branch office in AndhraPradesh. V-Guard Industries became a Public Limited Company. Launched V-Guard WaterHeaters and Wiring Cables. 1997 Launched Aquatron, an Electronic Water Level Controller for overhead water tanks. 1998 Launched UPS (Online & Offline). 1999 Launched Digital Stabilizer, diversified into Electric Cable business with VGuard Cable manufacturing unit at Coimbatore. 2000 Turnover crosses INR 1000 Million Mark. 2001 Launched Compressor Pumps. Company is converted into Private Limited for better manoeuvrability. 2002 Launched V-Guard Solar Water Heaters. 16
  17. 17. 2003 Solar Water Heater manufacturing unit and Electro Mechanical Works for manufacturing pumps in Coimbatore becomes operational. Branch Office started in Delhi. 2005 Launched Solar Water Heaters with Evacuated Glass Tube Collector Technology. 2006 Launched V-Guard Fans. Branch office at Bhubaneswar, Pune &Hubli. 2007 New Branch offices at Vijayawada, Bhopal, Kala Amb, Vadodara, Kanpur, Nagpur, Raipur, Jamshedpur, Kolkata, Ludhiana and Jaipur. Turnover crossed INR 240 Million Mark. V-Guard Industries became a Public Limited Company. 2008 Listed in BSE & NSE. Launched Inverters& LT Cables. New Factories at Coimbatore &Kashipur established. 2009 New LT Cable Factories at Kashipur and Coimbatore became operational. 2009 Opened Manufacturing facility for Water Heaters and Fan at Kala Amb 2010 Turnover crosses 4600 million marks. 2010 New branch office in Madurai. 2011 Turnover crosses 7263.5 million marks. 2011 2012 New branch offices in Ghaziabad, Dehradun, Patna and Chandigarh. Mr.Mithun Chittilapilly has become the Managing Director of V-Guard IndustriesLtd. Mr.KochousephChittilappilly continuing in the role of Vice Chairman of V-Guard Industries Ltd. The appointment of Mr.V.Ramachandran as Director-Marketing & Strategy from April 2012 was also announced Turnover crosses 1000 crore marks. 17
  18. 18. 2.13RECOGNITIONS Best Entrepreneur in Kerala awarded to KochousephChittilappilly, CMD, V-Guard Industries Pvt. Ltd. (1993). Highest Individual Income Tax Payer from the State 1993 to 1995 from the Government of India. VyavasayaJyothi Award given by the Ernakulam Chamber of Commerce (1996). Industry Excellence Award for Medium Scale Industries awarded by The Institution of Engineering (India), Cochin (1998). Millennium Businessman of Kerala awarded by Business Deepika (2000). Most popular consumer product brand in Kerala awarded by Dhanam publications in 2006. Productivity award 2006-2007 for medium scale industries by Kerala Productivity Council. Best productivity performance award 2007 in the medium industry segment by FACT MKK Nair Memorial. Businessman of the Year awarded by Dhanam Magazine (2007). Award for corporate sustainability 2009, Times of India. Samoohya Suraksha Award by the National Safety Council, Kerala Chapter (2010). Award by Energy Management Centre 2010 in appreciation of achievements in Energy Conservation and management in Kerala. The Prestigious Management Leadership Award by Kerala Management Association Award (2012). 18
  19. 19. 2.14 PRODUCT PROFILE PRODUCTS 1. VoltageStabilizer Fig 2.1 Stabilizers V- Guard stabilizers offer the best technology with features like automatic restart, turn-on delay, time-delay system and high-low voltage cut-off that provide efficient and reliable protection for electronic appliances against voltage problems. V- Guard stabilizers are unmatched in every sense. It‘s ‗jellybean‘ design is registered to prevent cheap imitations. V-Guard stabilizers come in different capacities for different applications like Air conditioner, LCD TV, Music system, Refrigerator, washing machine, microwave oven and treadmill. 2. Wiring Cables V-Guard cables are manufactured in a fully-automated ISO 9001 certified factory at Coimbatore and Kashipur. ISI marked V-guard cables come with HFT Technology, 3-layer insulation and length assurance seal in every 90 Fig 2.2 cables meters. Multi-core flat, Round, LT Power Cables and Control Cables are also available. All cables are available in FR and FRLS variants. 3. Power and Control Cables V-Guard cables are manufactured in a fully-automated ISO 9001 certified factory atCoimbatore andcomplywith world-class standards. All cable designs conform to IS: Fig 2.3 PVC Cable 19
  20. 20. 7098(Part1) for XLPE and IS: 1554 (Part1) for PVC Insulated Cables for working voltages up to including 1.1 KV. These high quality cables ensure protection against electrical hazards. V-Guard LT Power & control Cables come in armoured and unarmoured variants. 4. Pumps Ultra efficient V-Guard Pumps with ‗high-speed pumping technology can pump water even from the deepest of wells quickly. V-Guard pumps are made from top-grade casting, fine components and highquality aluminium. With a wide application range, these pumps are available in more than 400 models ranging from 0.25 to 25 HP (Including 3-Phase models) for Fig 2.4 Pumps domestic, agricultural and commercial purposes. 5. Geysers/Water Heaters V-Guard offers a wide range of instant and storage model water heaters. The latest ‗Energy Saving Technology‘ with 5-star rating saves up to 50% energy and the ‗Penta Protection system‘ assures maximum user safety. The outer body is made of high-quality ABS and powder coated metal.1,6,10,15,25,35,50,80,100 litre capacity water heaters are available in different models Fig 2.5 Geysers like Electric water heater, Gas water heater and immersion water heater to suit bathrooms and kitchens. 6. Solar Water Heaters V-Guards solar water heaters with international ETC (Evacuated Tube Collector) technology are way ahead of the competition, in terms of quality, technology. Approved by Ministry Of New and Renewable Energy-Guard solar heaters are completely eco-friendly and non-polluting. They are Fig 2.6 solar Water Heater 20
  21. 21. available in 100, 125, 150, 200, 300, 500,1000,2000,3000,4000 and 5000 LPD capacities. Manufacturing takes place at ISO Certified factory in Coimbatore. 7. Fans V-Guard Fans with unique ‗High-Angled Technology‘ and specially designed blades that facilitate ‗full coverage‘ of cool breeze in the entire room. The sleek metal painted body and stylish design, add a touch of class to the interiors. Fans are available in different models andcolours. Fig 2.7 Fan 8. UPS (Line Interactive and Inline UPS) V-Guard UPS series starts from 600VA to 60 KVA to match the wide range of customer requirements from different verticals. Some of its features are: Microcontroller/DSP controller based technology Fig 2.8 UPS Line interactive and online UPS technology. Capability to handle various types of loads. Active power factor compensation design. Off mode battery charging with HVP protection. Over voltage protection module. Generator/Inverter compatibility. 9. Digital UPS, Inverters, Batteries and Trolley V-Guard digital UPS is equipped with advanced Microcontroller based line interactive Technology and a host of features like MOSFET based Power Stage with PWM Fig 2.9 Digital UPS output, FRCM with UST(Uni Polar Switching Technology) for uninterrupted back-up during power failure. 10. Switch gears 21
  22. 22. V-Guard switch gears have been designed with world class tripping mechanisms to ensure maximum safety. It conforms fully to IEC standards. It has high quality moulded casing with superior thermal and dielectrically properties. It has got improved and rugged design of operating mechanism 11. Distribution boards V-Guards distribution boards are designed with the objective of easy assembling and inside wiring. It has got high quality surface treatment and superior powder coating and has enhanced protection against corrosion. It is available in attractive colour shades and aesthetic design. Phase selector DB‘s, Plug and sockets and MCB enclosures are also available. 22
  23. 23. Table 2.1 Manufacturing and outsourcing facilities of VGIL Fig 2.10 Contribution per Product to Revenue VGIL‘s major chunk of revenue is generated through cables and stabilizer contributing 29% and 23% respectively. Both the products grew substantially by 37% and 71% yoy. Further, LT Cables, Digital UPS and fans individually registered triple digit growth at 168%. 146%and 108% respectively. Other products such as water pumps, water heaters and solar water heater reported expansion in its sales by 42%, 62% and 31% respectively. Table 2.2 Product Wise Turnover (In Crores.) 23
  24. 24. 90 80 70 60 50 Q3 FY 2012 40 Q3 FY 2011 30 20 10 0 wires Stablizer Pump LT Cable Water Heater Solar WH UPS Electric Fan DUPS Others Fig 2.11 Graphical representation of product wise turnover There has been tremendous growth by 45% in turnover in Q3 2012. The highest turnover is for the product segment wires which contributes around 77 crores having growth rate of 47%.The wires is followed by stabilizer‘s which accounts 28% growth. The highest growth in turnover is for Digital UPS, trolley an batteries which accounts 395% respectively. The least growth is for solar water heaters and electric fan which has growth of 11% and 16%. 2.15MARKET SHARE 24
  25. 25. The company‘s southern region contributes around 65% to the total revenues. Whereas rest 35% comes from the northern markets. Compared to the previous years the dependency on the south Indian market has been decreased which is a positive sign for the growth drive of V-Guard. The company strategy is to penetrate into northern markets and the management expects around 40% will be northern markets share in FY 13. The company gradually plans to increase 5% in other markets. With this strategy the management plans to take V-Guard at a pan India level. South India 91% North India 85% 70% 65% 30% 35% 15% 9% 2009 2010 2011 2012 Fig 2.12 Region Wise Revenue 2.16COMPETITION ANALYSIS 25
  26. 26. Much of the market in which v guard operates in its unorganised and fragmented of each of the products from other manufactures in domestic or divisions of large multinational corporations as well as competitors .They compete with their manufacturers on the basis of product range, product quality, product price after sales service including factories based on repetition, regional needs and customer convenience. Their completion varies for each of the products and regions. They compete different players in different products in different regions. Table 2.3 Major Competitors (product Wise) PRODUCT Stabilizers COMPETITORS Vigil, Premier,V-Care, Shalimar, Everest, Safeguard,Keeline, Blue Bird, Premier, Logicstat Cable Finolex,Polycab, Anchor, Havells etc. Pump Crompton Creaves, Kirloskar, Texmo, etc. Electric Water Heaters Racold, Bajaj, Venus etc. Solar Water Heaters Tata BP, Bajaj, Rancold Electric Fan UPS Crompton Greaves, Havells APC,Numeric, Emerson However competition levels vary for each product in each region .In addition, the market share keeps changing constantly with advent of new technologies and products. In present competitive environment, companies which develop effective, improved and reliable home appliances and have strong customer focus in the form providing after sales services will be increasingly differentiated from the others in the field. 2.17 DISTRIBUTION CHANNELS 26
  27. 27. The Distribution network: Fig 2.13 Channels Of distribution There are 230 distributors, 300 Direct Market Associations and 9000 retailers for the company. The company follows a distribution dealership models depending upon the products and how comfortable and economical the company is able to sell. For stabilizers and pumps, the company follows distributors model and has more than 180 distributors network largely in South India. For cables, wires and other company follows a mix of distribution and dealership model. In states other than South India, the company largely follows this distribution plus dealership models. It does not own a shop or any franchisees. No plans to open its own shop or mall, given the high cost and lower success ratio in that model. I. Company--> Distributors --> Retailers —-> Customers‘ In this strategy, the products are made available to the customers through distributors and retailers. The company provides the products to the distributors who provide them to the retailers at the price set by the company. Retailers provide the products to the customers as per their demand. II. Company—-> Direct Marketing Association—-> Customers In this, the products are marketed through direct marketing associations. Products like solar water heaters and digital UPS's are marketed this way. 27
  28. 28. III. Company--> Direct Dealers--> Customers In this, the company markets their products among their customers only through authorized dealers all over the country. Table 2.4 ZONE 1 Distributors per state STATE Andaman and Nicobar Island No. of distributors 3 Kerala Tamil Nadu Pondicherry Andhra Pradesh Odisha 42 31 2 14 16 Table 2.5 ZONE 2 Distributors per state STATE Madhya Pradesh Gujarat Rajasthan Chattisgarh West Bengal No. of distributors 4 1 5 3 3 Bihar 4 New Delhi 6 Haryana 15 Uttarkhand 1 Uttar Pradesh 22 Punjab 7 Himachal Pradesh 2 Jammu and Kashmir 3 Uttaranchal Chandigarh 5 2 Table 2.6 ZONE 3 Distributors per State STATE Karnataka No. of Distributors 23 28
  29. 29. Goa Maharashtra 2 15 2.18 CORPORATE SOCIAL RESPONSIBILITY They believe in the amalgamation of corporate management, sustainable development and global responsibility in working toward a better society and thereby a better world. They are committed to greening our environment, supporting the less fortunate and nurturing the downtrodden. ROTARY-BINANI ZINC CSR AWARD V Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private Sector) by the Rotary Club of Cochin Metropolis, in association with NIPM Kerala Chapter and ICAI, Ernakulum Branch for Best Corporate Social Responsibility Initiative by a company in the state of Kerala. THE THOMAS CHITTILAPILLY TRUST The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, in memory of his late father, C.O. Thomas. It is an extension of the philanthropic and responsible values espoused at V-Guard. It is dedicated to extending its reach to areas of health, education and care. The trust provides health insurance cover for 1314 families from financially backward classes, 922 families at TholurPanchayath, Kerala and 105 families in RamanagaramTaluk in Bangalore, Karnataka. It also conducts free health camps at villages and backward areas where the reach of proper health care is absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur and Ernakulum Districts in Kerala and RamanagaramTaluk, Bangalore. The trust has also made substantial contributions to NGO‘s working for various social welfare causes like Udhavumkarangal and the SOS village. It has also donated generously tomany national level causes and relief funds like the Prime Minister's Relief Fund, Kargil war victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa cyclone and the Tsunami. 29
  30. 30. SHANTIMANDIRAM An old age home for women, providing shelter and care for those who are unable to care of themselves in Parappur Village, Trissur, Kerala. It is managed by the Sisters of CMC Nirmala Province in whose able hands the inmates receive love and care irrespective of caste and community. The facility accommodates 60 inmates at a time and is recognised by the Board of Control for Orphanages and other Charitable Homes, Kerala. True to its name, all facilities are provided free of cost and it is a haven of peace and tranquillity where the inmates spend the evening of their lives in dignity and comfort. Shanthimandiram celebrated its first anniversary on 29th May 2010 along with the Inmates. Various cultural programmes have been performed by the inmates of Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and family. The sisters of Shanthimandiram also involved with the cultural programmes. SOCIAL WELFARE FUND An employee CSR activity Social welfare consciousness being embedded in V-Guard work culture has motivated the employees to join hands in reaching out in charity. The Social Welfare Fund was created out of the goodwill of the employees who collate funds and donate towards cost of medicines for the poor in the cancer ward at the Ernakulum General Hospital. STABILIZER SHG ACTIVITY Since its inception V-Guard has been providing a mutually beneficial income generating option to women. Women who have grouped themselves to form SHG‘s (Self Help Groups) are distributed assembly kits for voltage stabilizers. An efficient distribution and collection system networks the women with the company and has been a resounding success for decades. It provides a stable income for their households and in turn emancipation from poverty. CHAPTER – 3 THE ORGANIZATION 30
  31. 31. 31
  32. 32. 3.2 DEPARTMENTS IN V - GUARD Table 3.1 Names of the Departments Sl No. Departments 1. Supply Chain Management 2. Electronic and New project 3. Electro Mechanical 4. Systems 5. Corporate Communication 6. Mechanical and Electrical 7. Finance 8. Human Resource 9. Marketing 10. Customer Service 32
  33. 33. 3.2.1SUPPLY CHAIN MANAGEMENT Supply chain management is a cross-functional approach including managingthe movement of raw materials into the organisation,certain aspects of the internal processing of materials into finished goods and the movement of finished goods out of the organisation and towards the end-consumers. The purpose of Supply Chain management is to improve trust and collaboration among supply chain partners.There are above 100 employees under this department .The major threat that SCM faces is duplication of the products of the company .SCM ensures the coordination among the department through effective communication for achieving the ultimate goal. Objectives To reduce lead time. To reduce order to delivery cycle time. To improving On-Time delivery. To reducing warehouse Cost. To enhance customer service. To expand sales revenue. Functions The functions of this department can be studied under two heads 1. Inbound material movement function(Purchase Function). 2. Outbound material movement function(Logistics and Distribution). 33
  34. 34. The following are the activities under each function SCM Logistics control Raw material Purchase Failure and FeedbackInventory management Vendor development Vendor Rating Warehousing Vendor approval Price negotiationsTransportation Bench marking Market intelligence Order fulfilment Quality approval of Raw materials Fig 3.2 Major activities Of SCM 34
  36. 36. 3.2.2ELECTRO MECHANICAL DIVISION The Electromechanical department of V-Guard industries ltd handles the production activities of its products such as water pumps,electric fan, switch gears, industrial motors and also electronic mixer and grinder which is in stage of development. There are around 30 manufacturing units for the production of the products mentioned above. Table 3.2 Manufacturing units (Product wise) PRODUCT Water Pumps Fan MANUFACTURING UNIT Coimbatore, Gujarat, Punjab ,Haryana Hyderabad, Own unit in Himachal Pradesh, also imports from China. Switch gears Completely manufactured in Hyderabad. Industrial Motors Completely manufactured in Coimbatore. There are 150 employees working under this department, most of whom are diploma electronics holders and also engineers. Objectives •To provide cost effective and reliable products. •To provide best quality pumps and motors. •To provide products that is conforming to international standards •To provide high power products with energy saving technology Functions Satisfying marketing need - Making production as per requirement of marketing department. Designing of product and development. 36
  37. 37. Maintaining good quality system. Auditing of systems and checking for any deviations in quality for taking corrective action. Sub Functions 1. MARKETING SUPPORT FUNCTION The electro mechanical department support the marketing department in several ways. The engineers in electro mechanical department have got a better understanding about the product and its features. Hence they can provide a better response to the customer‘s queries. 2. TECHNICAL SUPPORT FUNCTION The electro mechanical department also support the service department. When situations arise where the staffs in service department is unable to handle the complaints of the customer, the engineers from electro mechanical department supports them. They visit the site and fix the problem. 3.VENDOR DEVELOPMENT FUNCTION: This function is about finding the right suppliers for attaining raw materials required for production. 37
  38. 38. DEPARTMENT CHART: VICE PRESIDENT DEPUTY GENERAL MANAGER (PRODUCTION) DEPUTY MANAGER (PRODUCT DEVELOPMENT) ASSISTANT MANAGER (MOTOR) EXECUTIVES ELECTRONICS EXECUTIVES ASSISTANT MANAGER CHIEF OFFICERS EXECUTIVES EXECUTIVES MECHANICAL EXECUTIVES CHIEF OFIICERS EXECUTIVES Fig 3.4 Electro Mechanical Division The VP handles the overall activities of the department and is assisted by the deputy manager and assistant manager. V-Guard industries ltd provides two types of pumps, the single phase 38
  39. 39. pumps and 3 phase pumps, within each are different categories.DGM (Production) takes control of the product production activities.DGM(product development) deals with development of new products. There are two separate divisions under it one dealing with electronics and other with mechanical product development.The Assistant manager takes control over the motor production alone.Under every heads there are executives which assist others. 3.2.3SYSTEMS DEPARTMENT An organisation is managed by taking various decisions at the various levels of its management hierarchy. Information is needed to take these decisions. Quality of decisions will largely depend on nature and type of information provided for taking decisions. Therefore, designing of an effective information system is important. The system is responsible for maintaining the information in the organization. The data centre in v guard is centralized and servers are maintained at the head office. Objectives Providing high availability of IT services. Integrity of information in complete. Security of data. Role Of Systems Procure system hardware‘s, software and services. Deploy IT services. Maintain IT equipment. Components  IT OPERATION TEAM They procure hardware, software, maintain annual maintenance contract with vendors.  IT TECHNICAL TEAM They deal with systems administration, application support in SAP,portal(.net)  SAP FUNCTIONAL TEAM It consists of specialists in finance, costing, production etc. 39
  41. 41. 3.2.4MECHANICAL AND ELECTRICAL DEPARTMENT This department mainly deals with products such as: Electric water heaters Gas water heaters Immersion heaters Room heaters Solar heater Induction cooker Among these products 60% of the manufacturing process of electric water heater is done by V-Guard and the rest 40% is outsourced. Gas water heater. Immersion water heater, room water heater and induction cooker are completely outsourced. Manufacturing units are mainly located in Himachal Pradesh and Coimbatore. There are ground 60 direct staff and 30-35 indirect staff under this department. Objectives To develop the product as per the market requirement. Improve the quality of the products day by day. To facilitate innovations in production. To provide products with consistent performance. Functions Support the customer service department through technical assistance in case the service department fails to solve or couldn‘t reply to consumers queries and complaints. To design and develop the product as per the required standards. To understand the requirement of the product in the market. 41
  42. 42. DEPARTMENT CHART VICE PRESIDENT GENERAL MANAGER (Manufacturing) CHIEF OFFICER (Admn.Group )) ) Sr.MANAGER (Manufacturing QC ENGINEERS WATER HEATER CHIEF OFFICER (Outsourcing) QC ENGINEERS CHIEF OFFICER (Product group) DEPUTY MANAGER (Design) FANS Fig 3.6 Mechanical and Electrical 3.2.5CORPORATE COMMUNICATION Corporate communication is the message issued by a corporate organization, body, or institute to its publics. "Publics" can be both internal (employees, stakeholders, i.e. share and stock holders) and external (agencies, channel partners, media, government, industry bodies and institutes, educational and general public).There is 7 employees working. The entire process begins with earmarking the advertisement and promotion budget for the year. This budget is further divided between the above-the-line activity (ATL) including mediums like TV, print, radio, and below-the-line activity, which includes outdoor activities like hoardings, dealer sign boards, collaterals, and plumber, meets and electrician, meets. A 360 degree engagement is made toward consumers by reaching out them with mass media and regional focused activity. IPL team of Kerala being sponsored by V Guard is one such example.70% of the expense is for ATL and rest 30% for BTL. 42
  43. 43. Objectives To flesh out the profile of the "company behind the brand" (corporate branding); To minimize discrepancies between the company's desired identity and brand features. To delegate tasks in communication; To formulate and execute effective procedures to make decisions on communication matters; To mobilize internal and external support for corporate objectives Functions Creative Advertising and Public relations. Media planning and buying. Support to activities including design, purchasing mementos. Printing DEPARTMENT CHART GENERAL MANAGER CHIEF OFFICERS SENIOR OFFICERS EXECUTIVES IN HOUSE DESIGNER IN HOUSE DESIGNER Fig 3.6 Corporate Communication 43
  44. 44. 3.2.6MARKETING DEPARTMENT This department performs all the business activities that direct the flow of goods and services from producer to consumer, this may be through advertisements in any of the media or through the sales promotion measures.V – Guard has got a technically skilled and motivated sales team who understand changing customer requirements and shifting customer preferences. They give base level feedback to Company which forms the foundation for devising various promotional schemes and programmes etc.Sales turnover of 5-6% is earmarked for advertising the products to relevant segments.Both print and TV media are used for brand communication. Local and English dailies and weeklies are used for advertisements. Stabilizer, pump set and solar and electric water heater advertisements find their place in women magazines also.There are 200 distributors, 300 Direct Market Associations and 9000 retailers for the company. The company believes that its dealers and distributors are the best brand ambassadors. The company's distributors are exclusive stockists for its products and as such the term of appointment stipulates that only V Guard's goods would be stocked and supplied by the distributor. Table 3.3 Mode of appointing dealers PRODUCT MODE Stabilizer Appliances dealer Water heater Appliances & electrical dealers Pump Pump dealers Wires Electric dealers Fan Appliances, electrical & pump dealers UPS Computer dealers Online UPS Direct dealers LT Cable Dealer & direct project SWH/DU DMAs Switchgear Electrical dealers Induction cook top Appliances dealers 44
  45. 45. Dealers Promotion Activities 1. Margin 2. Schemes 3. Advertisement policy – press and TV from corporate office. 4. Dealer‘s meet- held in every two years with the main intention of imparting relevant sales skills and motivation and rejuvenating the social bond with them. 5. Below-the-line activity – state head budget Marketing Strategy i. Company--> Distributors --> Retailers —-> Customers‘ In this strategy, the products are made available to the customers through distributors and retailers. The company provides the products to the distributors who provide them to the retailers at the price set by the company. Retailers provide the products to the customers as per their demand. ii. Company—-> Direct Marketing Association—-> Customers In this, the products are marketed through direct marketing associations. Products like solar water heaters and digital UPS's are marketed this way. iii. Company--> Direct Dealers--> Customers In this, the company markets their products among their customers only through authorized dealers all over the country. Credit Policy V-Guard extends credit policies when needed. Such services are mostly given to the old dealers who have been associated with the company for a long time. They allow such dealers to purchase products on credit. They also accept post-dated cheques. Research and Development The research and development team in the marketing department is responsible for conducting surveys about products. This survey is mainly done among the dealers to get their feedback about the demand patterns of the customers and also ideas for products which have a potential in the market. They then discuss with the concerned headof departments, 45
  46. 46. management and technicians for their opinions. After this they move onto the product enhancement stage. Product strategy V-Guard has different demand patterns for their products during the year. During the vacation time i.e. during April and May, the demand for air conditioners is high and so is the demand for stabilizers. From the month of November till May, the demand for pumps is high than during the other months of the year. In the months of June, July, November and December, the demand for water heaters is high. During the summer season the demand for freezers and coolers is high. During festival seasons like Onam and Christmas, demand for televisions is high. 46
  47. 47. DEPARTMENT CHART MARKETING ZONE 1 ZONE 3 ZONE 2 M.V Muralidharan Deepak Augustine Surya Prasad VP- MARKETING VP- MARKETING VP- MARKETING V PIC- PIC- PIC- STABILIZER UPS PUMP PIC3 PHASE PUMP PICWIRE PICLTCABLE PIC- PIC- PIC- SWH PIC – WATER HEATER DUPS SWITCH GEAR PICFAN PICINDUCTION COOK TOP DATA SUPPORT Fig 3.7 Marketing department The marketing activities are divided across 3 different zones each which has a vice president(marketing).Under them are the executives of product incharge.There are 6 executives under each product in-charge. In case of distribution centers, a manager, sales persons, van drivers and unloading boys are present. Training to all these persons is given on the basis of the products they are handling. 47
  48. 48. STATES AND BRANCHES UNDER THE 3 ZONES Table 3.4 ZONE 1 Branches STATE BRANCHES 44 Kerala Cochin and Palakkad Tamil Nadu Coimbatore , Chennai Andhra Pradesh Hyderabad,Vijayawada Odisha Bhubaneswar Table 3.5 ZONE 2 Branches STATE BRANCHES Madhya Pradesh Bhopal Gujarat Ahmedabad Rajasthan Jaipur Chattisgarh Raipur West Bengal Kolkata Bihar Patna Assam Guwahati Other states under zone 2 : Delhi, Haryana, Dehradun/Uttarkhand, Uttar Pradesh, Punjab, Himachal Pradesh & Jammu Kashmir. Table 3.6 ZONE 3 Branches STATE BRANCHES Karnataka and Goa Bangalore, Hubli Maharashtra Mumbai, Nagpur 48
  49. 49. 3.2.7CUSTOMER SERVICE DEPARTMENT Customers are the strength of every organization. V-Guard aims at making their products as a trusted household name. For this, the product needs to meet or exceed the customer‘s expectation.This department deals with the relationship that the company maintains with the public. They mainly deal with providing after sales service to the customers. It has total of 70 employees spread across India and above 200 service centers across India . a) Service at service spot: V guard provides service through service centres located in different states customers who detect complaints can bring them to the nearest service centre to get the required service. b) Service at dealers spot: Serviced is provided through the dealers who deal with v guard products. In this case, the customers can approach the dealers with the defected product and the dealers return the products after the complaint has been rectified. c) Service at customers spot: Service is also provided at the spot where the customers are. In this case, technicians are sent to the customers after the complaint has been reported .According to their policy, complaints should be rectified within 24-48 hours of registering the complaint. Levels of Service 1. Customer satisfaction It is ensured that all the complaints are solved within 24 hours of receiving the complaint. Employees are assigned to visit the customers spot for solving issues that might have occurred while using the product and even replacing the product if required. The service charges are collected as per the approved manual. 2. Customer care As per the company policies, all the details regarding the service terms, warranty details, service charges etc. are to be displayed in front of the service centre. After the service has been done, feedback from the customers is collected. This improves them in correcting their flaws in the service provided and to serve them better. Feedback regarding the quality of the products, after sales service etc. is collected by visiting the dealers dealing with their products. 49
  50. 50. DEPARTMENT CHART HEAD OF DEPARTMENT MANAGER Regional –incharge Regional –incharge Regional –incharge Branch –incharge Branch –incharge Branch –incharge Service-incharge MSC & Help Line Service-incharge Service-incharge Fig 3.9 Customer Service Department Channels for registering complaints Various channels have been provided to the customers for registering their complaints. They are: Through dealers: The customers are able to register their complaints with the company through the dealers dealing with their products. Directly contact to service centres 50
  51. 51. Customers can report their complaints by contacting the service centre that is the closest to them. Contact through helpline The customers can contact through their tollfree number 1800 3000 1800. Customers from any state can contact the branch office in the state through this number. Register the complaints through official website The customer can also register their complaints through Service efficiency management  The efficiency of the services provided are measured by doing the following  Checking the number of complaints solved within 48 hours Service audit reports  Feedback received from marketing department Feedback received from dealers  Feedback received from end users. 3.2.8HUMAN RESOURCE DEPARTMENT This department assure that the organisation will have adequate number of qualified persons, available at the proper times, performing jobs which meet the needs of the enterprise and which provide satisfaction to individuals involved.Its function is to develop an organizational culture where superiors, subordinates relations, team work and collaboration among different sub units must be strong and contribute to organizational, health, dynamism and employees pride. HR Policy The basic principles of V-Guard human resource policies include: 1. Recruitment based solely on merit by following well-defined and systematic selection procedures without discrimination. 2. Sustain motivated and quality work force through appropriate and fair performance evaluation, reward and recognition systems. 51
  52. 52. 3. Identify training needs within the organization and design and implement those need based training programmes resulting in continuous up gradation of knowledge, skill and attitudes of the employees. 4. Maintain a quality human resource management system plan, design, and train, equip and motivate the department staff to meet this standard of expectation. Table 3.7 Statutory and Non statutory benefits STATUTORY • Provident fund • NON STATUTORY Employee State Insurance • Reimbursement of travelling expenses • Leave travel allowance • Medical reimbursement • Employees Deposit Linked Insurance • Service Gratuity • Labour Welfare Fund • Personal accident insurance and mediclaim insurance • Performance linked bonus • Reimbursement of telephone/mobile rent • Bonus • Incentives to personnel • Group saving linked performance • Benevolent fund Expenses for purchase of suitcase • Concessional loan • Interest free vehicle loans • Higher education loans for employees • Education allowance to employees' children • V-Guard award for excellence • Veegaland /Wonderla passes 52
  53. 53. • Discount offer for V-Guard products • Suggestion awards • Reimbursement of credit card renewal fee • Best Article Award (V and We) • Contribution for employee‘s marriage •Performance linked incentive scheme HR Practices Most of the HR practices of V-Guard industries were a result of the vision of its founder and the culture that they have been created over the years. The founder advocated simplicity and maintained the culture of a small company and the employees were encouraged to share their learning experiences too. Recruitment V-Guard's greatest asset is its employees. It is committed to attracting, retaining, and developing the highest quality and most dedicated work force possible in today's market. While recruiting new employees V-Guard takes adequate care to identify the right candidates guard focus on recruiting candidates who display a high degree of learn ability, i.e. candidates who are open to learn new things and supply the same in new situations we also place significant importance on professional competence, academic excellence, analytical ability, term work, leadership potential, communication and innovative skills, along with a practical and structured to problem solving. 53
  54. 54. TRAINING V-Guard human resource department believes that quality is the hallmark of any successful venture. Quality training and development of human resource is realized through Identifying training needs within the organization and designing and implementing those need based training programs to bring about continuous up gradation of knowledge, skill and employee attitudes. The following brief highlights V-Guard‘s training methodology for the comprehensive development of its employees. Training plan Companies success in today's free market economy, only because their employees perform to their fullest potential .alive to this home trust, V-Guard draws up on annual training calendar highlighting the training activities for the year It also includes detailed discussions with the faculty to decide on the contest of the training programs guard's training plan includes technical/functional programs (mechanical, electrical, finance related and behavioural programs etc) ,covering a wide cross-selection of employees, as follows: •A week long induction program for fresher‘s. •Development of top performer through leadership development programsaimed at bringing up future leaders . •Development of managerial staff through intensive management development programs tailor made for them providing exposure to holisticunderstanding of the business, strategic planning, customer relationship,enhancing shareholder value, and financial management. •Sustained effort in training has led to creation of highly skilled andmotivational employees ready to take on higher roles and responsibilities in the company. 54
  55. 55. Performance appraisal The first step towards carrying out performance appraisal at V-Guard is the evaluation of personal skills for the tasks assigned to an employee during the period of appraisal .To evaluate the performance ,different criteria like timeliness ,quality of work carried out by the employee, customer satisfaction .peer satisfaction and business potential is considered. The personal skill of the employees are also evaluated based on their learning and analytical ability ,communication skills, decision making, planning and organizing skills. Each of these criteria is measured on a scale and then evaluated. A performance appraisal system is a strong tool in the development of human resources in the organisation. It is considered as a mutual feedback to the management and thereby help to decide the carrier growth, training needs and other human resources development, interventions required for each of them thereby aiding their self-development. It is vitally important that every individual has a clear understanding of his or her work, objectives, and responsibilities, because performance will measure against these. Culture V-guard have built a culture in tandem with the vision and values of the organization that makes v -guard,a great place to perform where members take pride in being a part of the VGuard family, are intellectually and emotionally bound with the organization, feel passionately about their goals and are committed towards the organization's vision and values .Complete ownership of the vision and values ensures alignment of member's personal vision with organization's vision, thereby achieving focus in all the endeavours. Work culture emphasizes • Freedom to experiment • Continuous learning and training Transparency and openness • Quality in all aspects of work • Reward based on performance and potential Company Policy • All selected candidates are initially placed on probation for a period of 6 months • On completion of probation period and upon recommendation by the head of the department, the employee shall be absorbed and confirmed onto the rolls. • Management cadre employees are directly appointed into the skills Benefits and Perquisites 55
  56. 56. Salary components: Basic pay Dearness allowance House rent allowance Conveyance allowance Compensatory allowance Special allowance (10% of basic pay and dearness allowance) Additional compensatory allowance (based on place of posting) Fixed allowance Stores allowance UNIQUE HR PRACTICES • Niyuktasamaya This is employer engagement programme which we have started in 2010- 2011financial year. The session is conducted, by inviting employees department wise on a rotational basis every Saturday in the afternoon, for a period of one hour. Two representatives from the HR department and a person representing the top management would present in all the meetings. The program starts with a small introduction followed by an open session where employees will be free to give their suggestions and speak out their problems the open session is followed by games to promote team building and employees are encouraged to exhibit their skills many fruitful suggestions were received from the employee's sides which were implemented successfully. • Online recruitment management system Under this planed system prospective candidates visit our website and candirectly register their CV for any position listed on the site. Similarly allconsultants are also, required to post their CV through this site. As a resultduplication of CV is immediately identified and not accepted the CV thencomes data bank and for short listing /screening both the functional, users and HR dept. .has got the rights. Once a candidate is rejected, immediatelyInformation goes to the consultant or to the candidate. In case this is selectedfor interview then the information goes for finalization of interview atspecified date and time. This speeds up 56
  57. 57. the whole process as it does the initialscreening of the vital parameters in terms of age, qualification, experience etc. Meetings with workers Creative problems solving when it comes to employees is also v-guards forte. The company has regular line meeting at the manufacturing lines in the factory with the workers to discuss and solve their problems then and there. Morning meetings are also a norm at v-guard were the whole management together with the VP's gets together to discuss the plans for the weeks. DEPARTMENT CHART DIRECTOR ADMINISTRATION SENIOR GENERAL MANAGER (HR) DEPUTY GENERAL MANAGER (HR) GENERAL MANAGER ADMINISTRATION DEPUTY MANAGER(HR) SENIOR OFFICER ASSISTANT MANAGER (ADMINISTRA TION) ASSISTANT MANAGER (CIVIL) OFFICER SENIOR EXECUTIVE EXECUTIVES Fig 3.10 Human resource department 57
  58. 58. 3.2.9ELECTRONICS AND NEW PROJECTS DEPARTMENT This department consist of two segments namely Research and development and Production divisions. RESEARCH AND DEVELOPMENT The ingenuity of the R&D team play a pivotal role in v- guards persistent quest for innovation.A confluence of design and technological functions, the team relentlessly works towards creating cutting-edge products. The strength of V- Guard emanates from its dynamic R&D that painstakingly tests and refines product designs.R&D labs at Cochin and Coimbatore explore and reinvent existing product technology and design. R&D for electronic products and electric geysers are carried out in Cochin while electro-mechanical products, electrical wires and solar water heaters anchor the Coimbatore R&D outfit. There are 22 employees under this division. Functions: 1. Facilitate innovation in product. 2. Product development as per market requirement. 3. Improvement, modification, replacement of products 4. Supporting customer service department in terms of technical support. 58
  59. 59. DEPARTMENT CHART R&D VICE PRESIDENT MANAGER-STABILIZER SR.MANAGER UPS CHIEF OFFICER CHIEF OFFICER SR. ENGINEER ENGR. SR. ENGINEER ENGR. ENGR. GENERAL MANAGER ENGR. ENGR. ENGR . POWER ELECTRONIC S ENGR. ENGR. Fig 3.11 Research and Development PRODUCTION V-Guards products are manufactured using the latest technology in up-to-the-minute manufacturing units,under stringent quality control measures, to ensure unmatched quality and performance.There are quality controllers who are appointed at various factories. These quality controllers ensure that the processes are being followed as instructed by the head office. They ensure that the quality of the product is uniform with that of the products of the other factories. The quality controller approves the components that are being used in the outsourced factories. They provide such works to charitable institutions like Cherupushpa electronics, Sengo Paul‘s systems .They produce 1.5lakh stabilizer a month. V guard has about 62 factories in all over India. 59
  60. 60. DEPARTMENT CHART PRODUCTION PRODUCT COSTING MANAGER (PRODUCTION) QUALITY CONTROL LAB CHIEF OFFICER MATERIAL RESOURCE PLANNING SR.MANAGER (SOURCING) CHIEF OFFICER ENGINEERS ONLINE UPS CHIEF OFFICER ENGINEERS Fig 3.12 Production Manager (production) is in charge of the production patterns and the processes that is to be followed in all the factories. They make sure that the patterns and products are uniform and according to the requirements. Quality Control Lab: Component research and approval centre (CARC) This department is responsible for testing each component that is to be used in the manufacture of a product. The test is done over a period of 21 days in which the suitability and usability of the component is tested .It is checked whether it meets the expectations of the company. Components as minute as screws, bolts, etc used only after they have been tested at thiscentre. Suppliers who are interested in supplying their materials to the company are made to submit a sample with the centre. Major suppliers are Keltron and in cap. Product costing: This segment deals with the costing of the product after adding the cost of raw materials and a margin of profit. 60
  61. 61. 3.2.10FINANCE DEPARTMENT The finance department of a business takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers.It is responsible for preparing journals, ledgers, statements like trial balance, balance sheet, cash flow statement. It is also in charge of the calculations of the income tax and also the payment at the right time. The finance department had got 40 employees in the corporate office and around 65 employees outside the firm to support their activities. The finance department in V-Guard Industries Ltd is headed by Mr. Jacob Kuruvila. V-Guards share value in market ranges from 195 – 200 Rs. /share .V-Guard has implemented ERP named Lakshya to make easy recording of transactions and better presenting of results within limited time. Functions Managing cash transactions of the organisation. Managing Accounts payable and Accounts receivables. Maintaining Journal Voucher. Remote cheque printing function. Internal audit Finalisation, consolidation of accounts. Secretarial function Tax remittance. Scrutiny and approval of funds needed by various departments of the organization Disbursement of wages / salaries. V- Guard is expecting a turnover in sales from 1000 to 1350 crores in this financial year. Out of the total turnover 65% is contributed by south Indian market in which Kerala alone contributes 40%, thereafter Tamil Nadu and Andhra Pradesh. 35% of turnover is contributed by northern states. House wiring cable has the highest sales. Stabilizer‘s occupies second position in sales and Pumps in third position. 61
  63. 63. IMPORTANT RATIOS Table 3.8 Net Profit Ratio YEAR Net Profit Net Sales Net Ratio 2007-2008 3,742.31 27,811.00 13.45 2008-2009 1,734.65 31,677.67 5.47 2009-2010 2547.26 45408.91 5.60 2010-2011 4263.67 72332.12 5.89 2011-2012 5080.10 98655.97 5.14 Table 3.9 Current ratio YEAR Current Asset Current Liability Net Ratio 2007-2008 14878.02 6514.06 2.28 2008-2009 9505.26 4633.57 2.05 2009-2010 19040.34 8244.38 2.30 2010-2011 33178.01 22178.66 1.49 2011-2012 28663.93 21420.43 1.33 63
  64. 64. CHAPTER – 4 SWOT ANALYSIS 64
  65. 65. 4.1 STRENGTHS 1. Company‘s presence in the industry for around three decades. 2. Strong dealer network. 3. Diversified client base. 4. Diversified product base enabling de-risking of the business model. 5. Outsourcingcapability. 6. Research and developmental capabilities in product design and technology. 4.2 WEAKNESSES 1. Excessive dependence on copper as it is the primary raw material for cable business segment of V-Guard. 2. Seasonal demand for the products. 3. Company is subject to restrictive covenants in certain debt facility. 4.3 OPPORTUNITIES 1. Growing middle class consumption in India. 2. Unexploited rural market. 3. The penetration level of white goods is lower as compared to other developing countries. 4. International consumer markets. 4.4 THREAT 1. Huge presence of unorganized market in segments which VGIL operates. 2. Volatility of raw material prices such as copper, aluminium etc. 3. Slowdown of economy affecting demand. 4. Increased competition in the product lines. 5. Adverse changes in government policies like laws to control pollution, monetary policies etc. 65
  67. 67. 5.1 OBSERVATIONS The company made public issue in the year 2008. Several energy conservation measures are undertaken by the company. Continuous efforts are made by the R & D department for reducing themanufacturing costs. As a result of intensive R & D, the size of the products was reducedconveniently. Technology, which aids production, was imported in the year 2007 and2009. Technology imported in 2007 was not fully absorbed. 39 % of the shares are held by the promoters of the company. The competition from the unorganized sector is severe. If the company isnot able to manage competition then it will affect severe growth. Improper coordination among the superiors and subordinates during certain situation. This leads to delay in certain orders, or the functioning of certain product development programmes. Increase marketing strategies for the promotion of air conditioners. They adopt direct marketing strategy in order to increase sale and also providesafter sales service. Credit facility is provided for only trusted dealers. 5.2 SUGGESTIONS 1. The rural markets have not been covered yet. The company should takenecessary steps for the same. 2. The Company should frame up the market strategy to combat the competition from the products in the unorganized sector. 3. The company should stock raw materials especially copper so as to avoid the continuous pricefluctuations. 5. The company should increase its foreign exchange earnings. 6. It‘s better to establish own wholesale shops so that intermediaries can be reduced. 67
  68. 68. CHAPTER – 6 CONCLUSION 68
  69. 69. CONCLUSION V – Guard proves to be a trusted household name due to the quality and support it offers to its consumers. The company was able to achieve new heights year after year only because of the understanding and coordination between the management and the staff. V-guard has been able to develop new products as per the customer‘s perceptions and tastes and offering consistent performance of the products. The company also has a goodwill it has brought up by the dedicated Social welfare activities it is doing in different parts of the India. So in a nutshell we can say that the V-Guard is ‗the name which all can trust‘. The company is focussing on its vision for this ―let us endeavour to make V guard a trusted household name.‖ 69
  70. 70. BIBLIOGRAPHY A. Company Documents V-guard Prospectus Annual Reports of V-guard B. Internet or website 70
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