TRAINING PROJECT REPORT                               ON  “ STUDY OF      MARKETING PROCESS OF INSTRUMENTATION            ...
INSTRUMENTATION LIMITED, KOTA                                2
PREFACE         Realizing that the practical experience is an academic for all round development of apersonal, as a part o...
ACKNOWLEDGEMENT         As we move on, I express my immense gratitude to those whose contributions gaveshape to this proje...
TABLE OF CONTENTSS.NO.   NAME                              PAGE NO.1.        THE OBJECTIVE OF THE STUDY               62. ...
THE OBJECTIVE OF STUDY        FOR A COMPANY :     1. To see the scope of products being provided by company in Indian as w...
Scope of the Study       The confined study of marketing procedure & procurement action adopted byInstrumentation Ltd., Ko...
EXECUTIVE SUMMARY       The Instrumentation Ltd. a Govt. of India Enterprises was set up at Kota in April 1964in collabora...
Kota office basically a co-ordination office which is to co-ordinate betweenMarketing head quarter, branch offices and var...
DEFINITION OF RESEARCH METHODOLOGY & DESIGN          Research study will be based on collection of primary data as well as...
DATA COLLECTION       The task of data collection begins after are research problem has been defined andresearch design/pl...
TYPE OF SAMPLINGSimple random sampling technique was used.                                     SAMPLE SIZEWhile preparing ...
JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC     “STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED ”                ...
COMPANY PROFILE*   Vision of the company* Objectives of the company* History of the Company* Organisation Structure* Board...
Corporate Vision To become a leading world class Engineering Organization focused on customersatisfaction in the field of ...
PROFILE OF                INSTRUMENTATION LIMITEDInstrumentation limited is a Govt. of India Enterprise set up in 1964 wit...
HISTORY OF THE COMPANY       Most of the instruments required for Process Control Industries alongwith mainequipments were...
KOTA UNIT       This plant is located at Kota-Jhalawar Road Kota-5 (Raj.). It is the birth place ofInstrumentation Ltd.   ...
PERFORMANCE AT A GLANCE       In the year 2005-06 through sustained efforts of the company for performanceenhancement and ...
PRESENT STATUS OF INSTRUMENTATION LTD.       IL has incurred additional cash losses because of delay in implementing of sa...
Future of I.L.       The company is posed for better growth in the coming years in view of thefollowing –*      The sancti...
ACHIEVEMENTS & AWARDSAchievements       An order of over Rs. 300 lacs has been received from Corporation Bank or supply of...
Important Milestones Achieved1964 -         Established with Registered Office at Kota1965 -         C&I Production Commen...
ORGANISATION STRUCTURE                                      Board of Director                             Chairman-cum-Man...
Chart No. 2              Board of Directors of I.L.Sl.No   Name and address of Director          Telephone No             ...
PRODUCT RANGE OF ILInstrumentation Limited is an ISO 9002 certified multi-unit, multi-product Company that aremanufacturin...
Nuclear, Petrochemical, and Power etc.              3. ELECTRONIC TRANSMITTERSELECTRONIC CELL TRANSMITTER, being manufactu...
ease of programming. Besides strip chart recorder this range also includes circular chart anddigital display controller.  ...
CONTROL PANELS            11.ANNUNCIATIORSCMOS based Annunciators, based on its in house R&D, are available in integral, w...
CUSTOMERS OF INSTRUMENTATION LTD.       Customer of Instrumentation Ltd., Kota are in the following sectorsI.     Steel Pl...
(d)       RITESVII.    Defence Products        (a)       Defence Laboratory, Jodhpur        (b)       ARDE, Pune        (c...
METHODOLOGYCONCEPTUAL FRAMEWORK :INTRODUCTION OF INDUSTRIAL MARKETING       Industrial marketing consists of all activitie...
Financial Exchange :       Financial exchanges may involve such considerations as the granting of credit or theneed to exc...
Area            Industrial Marketing            Consumer Marketing                oligopolistic competition        competi...
MARKETING PROCESS OF INSTRUMENTATION LIMITEDMAREKETING ORGANISATIONMarketing Origination consists of head office at Bombay...
MARKETING PROCESS       Marketing is everywhere. Formally or informally, people and organizations engage ina vast number o...
The Company is divided into 4 units.                                   Instrumentation Ltd.Kota Unit             PDDC     ...
This unit of the company looks after the sales of retail products.       The marketing unit is headed by General Manager (...
Chart No. 4             FLOW CHART OF MARKETING PROCESS IS ADOPTED IN                         INSTRUMENTATION LTD.       T...
A        Purchase Department floats enquiry                  to its vendors                Receiving Quotation          Te...
B       Deposit in Finished Goods (FG)            Store through PCV          Inform to Marketing Kota              For giv...
DETAILS OF MARKETING PROCESS IN IL1.   Receiving Tender Enquiry :     Enquiry is floated by purchaser to it known supplier...
6.       Branch Function :         After receiving Purchase Order, Branch registers the order and allots a order         p...
After receiving purchase order Mktg. Co-ordination Kota, sent MDS and CDS to      production planning control department o...
14.   Product Manufacturing :      After receiving all components from store the production shop starts its      manufactu...
18.   Deposit in Finished goods store through PCV :      After preparing Production Credit Voucher all the finished goods ...
Then billing department raised the bills as per delivery challan and send all      documents to marketing co-ordination de...
PURCHASE DEPARTMENT       All material is purchased by purchase department in I.L. When company receivesorder from custome...
3.   While preparing the payment voucher, all the terms & condition of P.O. is verified     with the PI/Confirm Invoice an...
Where the payment to supplier is to be release through Letter of Credit, in such cases,     a request for LC opening is se...
QAD is enclosed). When replacement/refund is received, then suppliers account is     credited accordingly.7.   Sale tax fo...
Chart No. 5Imports Department                Material purchase request (Indent)                      Foreign purchase dept...
A                                 Bank confirmation                                  Foreign Supplier               Docume...
Import Department of Instrumentation Ltd.        Product planning dept. decides for a product to be manufactured. They lis...
#      Advance Payment#      Letter of Credit#      Sight DraftLETTER OF CREDIT       Letter of credit (L/C) is a commerci...
Advance payment         This is done by way of demand draft or telegraphic transfer (now a day’s transferthrough SWIFT sys...
RESEARCH METHODOLOGYDEFINITION OF RESEARCH METHODOLOGY & DESIGN          Research study will be based on collection of pri...
DATA COLLECTION       The task of data collection begins after are research problem has been defined andresearch design/pl...
TYPE OF SAMPLINGSimple random sampling technique was used.                                     SAMPLE SIZEWhile preparing ...
DATA INTERPRETATION     Data from Primary Resources(A) WHICH TYPE OF PRODUCTS ARE MANUFACTURED BY I.L. :                  ...
(B) HOW IS THE DEMAND OF I.L. PRODUCTS IN THE MARKET :                            DEMAND IN %                       11    ...
(C)WHAT IS THE MARKET POSITION OF I.L.                       MARKET POSITION                           2                  ...
(D)    Quality of Material used in Production in I.L.                  Quality of Material                   Respondents R...
(E)    Price level at which the materials are procured                    Level of Price                      Respondents ...
(F)       Sources from which the material is purchased in I.L.                         Sources                           R...
(G)    Which mode of payment is adopted by the company in Purchase/Sale?               Types of Payment                  R...
RECOMMENDATIONS      After analyzing the whole marketing procedure in I.L. following suggestion can besummarized –*     St...
68
LIMITATIONS OF THE STUDY       The study of “marketing procedure and procurement action” is based on the data andinformati...
CONCLUSION       Proper marketing is very necessary for any organization to have a good relation withits suppliers and cus...
*   All contents and result show that good and harmonious industrial relation and    effective, efficient workers particip...
BIBLIOGRAPHY1.   Philip Kotler – Keller , Koshy and Jha    “Marketing Management”, 13th Edition     2009,Pearson publicati...
QUESTIONNAIRE       This questionnaire is being circulated for surveying the extent of information theemployees of Instrum...
Q.6    What about the price level of material procured for production?       (a)   Very price competitive       (b)   High...
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  1. 1. TRAINING PROJECT REPORT ON “ STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED ” INDRAPRASTHA COLLEGE OF MANAGEMENT AND TECHNOLOGY KOTAGUIDED BY : STUDENT: VIJAY DEWANI ROLL NO: ICMT/KT/11/0017 1
  2. 2. INSTRUMENTATION LIMITED, KOTA 2
  3. 3. PREFACE Realizing that the practical experience is an academic for all round development of apersonal, as a part of the course Curriculum for Master of Business Administration, thestudent has to undergo practical training for 45 days. The objective of training is to provide the student with an insight to the practicalaspects of organizational working and environment. Such type of training helps students towork on real industrial environment, and to gain practical knowledge and build confidence. I have much pleasure in submitting the project report on “STUDY OF MARKETINGPROCESS OF INSTRUMENTATION LIMITED ” adopted in “Instrumentation Limited,Kota”. 3
  4. 4. ACKNOWLEDGEMENT As we move on, I express my immense gratitude to those whose contributions gaveshape to this project. Firstly, I am grateful to Mr. K.C. Khatri (DGM, HRD) providingfacilities for desertion work at the organization. I acknowledge the valuable guidance and help rendered by Mr. P.K. Vashist, Sr.Manager (Mktg.) for the Marketing Department. I even express my sincere acknowledgement to all the personnel of differentdepartment whose informative guidance motivated me to understand various dynamics of thecompany.Not to mention my sincere thanks to , who was always there to assistme in the project work .Last but not the least I would like to thanks my lecturars without whose feedback andencouragement, this project would not have been possible. Their help has gone a long way insuccessful completion of my project. 4
  5. 5. TABLE OF CONTENTSS.NO. NAME PAGE NO.1. THE OBJECTIVE OF THE STUDY 62. SCOPE OF PROJECT WORK 73. EXECUTIVE SUMMARY 8 - 124. JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC 135. COMPANY PROFILE 14 - 316. METHODOLOGY (MARKETING PROCESS) 32 - 567. RESEARCH METHODOLOGY 57 - 59 DATA INTERPRETATION 60 - 668.9. RECOMMENDATIONS 6710. LIMITATIONS OF THE STUDY 68 CONCLUSION 69 - 7011.12. BIBLIOGRAPHY AND WEBLOGRAPHY 7113. QUESTIONNAIRE 72 - 73 5
  6. 6. THE OBJECTIVE OF STUDY FOR A COMPANY : 1. To see the scope of products being provided by company in Indian as well as foreign market. FOR A RESEARCHER :1. The object is to provide the individual with an insight to the practical aspects of organizational working and environment, such type of study & its consequent exposure helps students to prepare for working in real industrial environment and to gain practical knowledge & build confidence.2. To have in depth study of Marketing Procedure of Instrumentation Ltd., Kota.3. To suggest Some changes for betterment in marketing process of IL . 6
  7. 7. Scope of the Study The confined study of marketing procedure & procurement action adopted byInstrumentation Ltd., Kota is the scope of the present study. It is not in any way related tostudying the procedure being followed and documentation required else where in the otheraspects of I.L. excepts :As a researcher : To find out whether a change in the marketing process adopted in IL , KOTA is needed or not.As a Student: To see the extent to which research methodology is used in practical aspect or not. To see how the marketing process is implemented. 7
  8. 8. EXECUTIVE SUMMARY The Instrumentation Ltd. a Govt. of India Enterprises was set up at Kota in April 1964in collaboration with Russia with a provision to setup second unit at Palghat in Kerala. Theproduction was started in October 1968. It holds good rank in India in the field of Processcontrol instruments. Whatever the capacity of field may be one can only rely on I.L. boardbased engineering capability expertise for instruments for requirementsMarketing means to identity customer needs and then providing them for satisfying them. Itis an important aspect of the business. The project has been made to know the different aspectof industrial marketing. The project emphasizes on the fundamental study of industrialmarketing method. Research has described in this project how does the company receive &their execute the orders to industrial marketing consists of all activities the involved in themarketing of products to organization. The aim of the company to maintain leadership in turnkey execution ofInstrumentation system for power & steel projects and do improve market share in fertilizer,cement and other allied industries as well as to improve retail sale. 8
  9. 9. Kota office basically a co-ordination office which is to co-ordinate betweenMarketing head quarter, branch offices and various department at Kota for timely executionof order and complete customer satisfaction. Kota office is also responsible for booking oforders for all telecom products. I.L. specializing in the turnkey Process ControlInstrumentation to record, monitor and control process parameters in process industries.Instrumentation Ltd. takes total responsibility for engineering, manufacturing, erection andcommissioning of instruments with a back up of after sales services. So under this project thewhole procedure for completing the order of customer has described. 9
  10. 10. DEFINITION OF RESEARCH METHODOLOGY & DESIGN Research study will be based on collection of primary data as well as secondary.Research Methodology is a way to systematically solve the research problem. It may beunderstood as a science of studying how research is done scientifically. The study of researchmethodology gives the student the necessary training in gathering material and arrangingthem.“Research Comprises defining and redefining problems, formulasting hypothesis orsuggested solutions; collecting, organizing and evaluating data; making deductions andreaching conclusions; and atlast carefully testing the conclusions to determine whether theyfit the formulating hypothesis”. -Clifford Woody Research is an academic activity and as such the term should be used in technicalsense. Research is the systematic approach concerning, generalization & formulation oftheory. RESEARCH DESIGN It is an exploratory research design. studies are also termed as formulative research studies. The main purpose of suchstudies is that of formulating a problem for more precise investigation or of developing theworking hypothesis from an operational point of view. The major emphasis in such studies ison the discovery of ideas and insights. As such the research design appropriate for suchstudies must be flexible enough to provide opportunity for considering different aspects of aproblem under study. 10
  11. 11. DATA COLLECTION The task of data collection begins after are research problem has been defined andresearch design/plan chalked out. While deciding about the method of data collection to beused for the study, the researcher should keeps in mind two types of data (a) Primary Data (b) Secondary Data Collection of Primary Data The Primary data are those which are collected afresh and for the first time. Primarydata will be collected by researches by questionnaire, observation, interviewing the executiveengaged in formulating as well as implementation of marketing procedure and its accounting,for the purpose, technique of satisfied random sample will be used and a sample of 15employees will be selected randomly. Moreover the researcher will also interview themanagement and executive, looking after the marketing and store accounting in IL, Kota. inmy research I have opted questionnaire method which was filled by marketing departmentand procurement division. The researcher will also make on the spot study by using the observation technique ofdata collection. COLLECTION OF SECONDARY DATA The secondary data are those which have already been collected by someone else andwhich have already been passed through statistical process. For collecting secondary data the researcher has taken the help of publishedreport/information of IL Accounts and Balance Sheet, Newspaper, Periodicals Journals andMagazines etc. related to this study. After collecting the data by primary as well as secondarysources the researcher has classifed, tabulate and interpret the same by using the variousstatistical tools and techniques such as mean, mode, median, standard deviation, correlationetc. 11
  12. 12. TYPE OF SAMPLINGSimple random sampling technique was used. SAMPLE SIZEWhile preparing the project report I will take the response to certain questionnaire from ILemployees. The sample of 15 employees has selected randomly. 12
  13. 13. JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC “STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED ” RATIONALE BEHIND THE STUDY Now a days the impact of globalisation is very vast and it becomes the need of anhour. It is not possible for a company to survive alone. Globalisation not only provides aplatform for fair competition but open gateway for more and more Research & Development.In the whole process what ultimately gained are better products at competitive prices. If weget better products then we can provide our customers better equipments and can satisfy tothem. This is not only provides scope of betterment and sophistication of techniques i.e.method of production but broadens the horizon of business. Marketing is an important aspect of the business. Marketing means to identifycustomer needs and then providing them. It is very difficult to move global. Financial successoften depends on marketing ability. Finance operations. Accounting and other businessfunctions will not really matter if there is not sufficient demand for products and services sothe company can make a profit. To sell the product in a global market is not an easy task. Marketing managers mustmake major decisions such as what features to design into a new product, what prices to offercustomers, where to sell products and how much to spend on advertising. For this a complete understanding related to marketing and stores is must. 13
  14. 14. COMPANY PROFILE* Vision of the company* Objectives of the company* History of the Company* Organisation Structure* Board of Directors of I.L.* Kota Unit* The Organisation* Products of Instrumentation Ltd.* Customers of Instrumentation Ltd.* Present Status of Instrumentation Ltd.* .Future of I.L.* Achievements & Awards. 14
  15. 15. Corporate Vision To become a leading world class Engineering Organization focused on customersatisfaction in the field of Control Instrumentation; Automation for Core Sector viz. Power,Steel, Refineries & other Process Industries; Telecommunication; Railway Signalling,Industrial UPS, Knowledge based systems such as IT & Software and Services; ElectricalTransmission & Distribution; GIS/GPS,SCADA system. Objective of Instrumentation Ltd.1. Productivity : * To ensure optimum utilization of all the facilities in Manufacturing Division. * To ensure optimum utilization of facilities created for manufacturing of Railway Signalling System. * To realize greater operational efficiency, improved productivity and higher capacity utilization and generation of internal resources.2. Business : * To undertake financial restructuring of the company to be more competitive. * To endeavor to achieve reasonable return on investments. * To further increasing its contribution in the company’s value of production and profitability. * To maintain 10% annual growth in the turnover of the company excluding the bought out items. * To revaluate the corporate plan for higher growth and dividend objective.3. Customers : * To achieve and maintain high degree of customer satisfaction with timely delivery of quality, products and services at competitive rates and also establish customer feedback system.4. Employees : * To upgrade the quality of human resources and strengthen the technical and managerial competence for growth. * To achieve higher levels of safety standards. * To restructure the manpower by rationalization. 15
  16. 16. PROFILE OF INSTRUMENTATION LIMITEDInstrumentation limited is a Govt. of India Enterprise set up in 1964 with the primeobjective of attaining self-reliance in the field of Control & Automation for theprocess industry. Today IL is manufacturing & supplying state of the art controlequipments on turnkey basis to the various sectors of the industry viz. Power, steel,fertilizer, chemical and petrochemical.Instrumentation limited is headquartered at Kota along with its Commercial Divisionspecialization in power and steel sectors. The regional & field offices, at differentsites look after the installation work. The marketing division is based in New Delhiwith branch offices in Calcutta, Chennai & Mumbai. IL has its plants at Kota &Jaipur.With over 35 years of experience & a dedicated workforce, IL has mastered allcomplexities of control systems requirements & can lead right through any industrialproject from system designing, to detailed engineering , manufacturing , installation,final commissioning to after sales service & customer training. IL is nowdiversifying in to the field of Telecommunication, Power Electronics & Railwaysignaling systems. 16
  17. 17. HISTORY OF THE COMPANY Most of the instruments required for Process Control Industries alongwith mainequipments were being imported in early 1960. Process Control Industries were growing atrapid rate, so we import the Instruments. In order to minimize the import to Process Control Instrument and to achieve selfreliance in this vital field a decision was taken by the Government of India to set up a Factory(Industry) in the Public Sector to manufacture Process Control Instrument’s and Allied Items. Instrumentation Limited is a Govt. of India Enterprise set up in 1964 with the primeobjective of attaining self reliance in the field of control and automation in the processindustry. Today IL is manufacturing and supplying state-of-the-art control equipment onturnkey basis to various sectors of the industry viz. Power, Steel, Fertilizer, Chemical,Petrochemical, Refineries, Pharmaceutical, Cement, Paper, Textile, Space and Oil & GasTele-Com, Flownozal valve Uninterrupted Power Supply (UPS) Mobile Towers etc. Kota Plant was setup in technical and financial collaboration with USSR and itcommended commercial production in the year 1968. As a part of its continued efforts formodernization and standards, the company has entered into technical know-how andassistance agreements within two internationally renowned manufacturers based at Britainand West Germany of Process Control Instruments.The second production unit of the company was established in Palakkad for manufacturing ofControl Valves and allied items for which technology is provided by a leading JapaneseCompany, viz. Yamatake Honeywell Co. Ltd. the unit commended production in December1975 and has significantly contributed to overall growth of the company’s financial resultswith its well established mechanical shops and other infrastructure. 17
  18. 18. KOTA UNIT This plant is located at Kota-Jhalawar Road Kota-5 (Raj.). It is the birth place ofInstrumentation Ltd. This production unit was setup in collaboration with M/s Premmash Export USSR.This plant commenced its sophisticated process control instruments in various ranges. The Kota plant cater the need of industrial process control instruments required byvarious Thermal Power Station, Electricity Boards, Steel and Chemical Plants, Chemicalsindustries, Paper industries and other Heavy Engineering units. Just from the first year of production the company has been successfully supplyinginstrumentation and control equipments and has achieved all time high record of production,turn over in profit. It has continued to play its vital role in speedy development of processindustries through out the countries in such a brief period and the company has achieved aleading, reputable and important position not only in India but in abroad also. Today, the Corporate R&D center of the company is an independent wing like otherunits of the company with its own proto-type development shop, various laboratories andother amenties, manned by well qualified technical personnel and headed by ExecutiveDirector. I.L. has its registered and corporate office at Kota (Raj.). Manufacturing facilitiesaccredited with ISO 9000 series. Quality System Certification are located at Kota & Palakkad(Kerala). 18
  19. 19. PERFORMANCE AT A GLANCE In the year 2005-06 through sustained efforts of the company for performanceenhancement and with the support of Govt. of India and all other concerned stakeholders, thecompany has been successful in achieving a higher turnover of Rs. 21,998/- lacs as comparedto previous year’s turnover of Rs. 17,585/- lacs. The company has also been successful inrecording operating profit of Rs. 1,304.92 lacs for the year 2005-06 as compared to previousyear operating profit of Rs. 1,091.74 lacs. The net loss for the year 2005-06 was Rs. 2,450.84lacs as compared to previous year loss of Rs. 1,697.81 lacs Instrumentation Limited has been able to maintain its operations despite variousconstraints, mainly the shortage of working capital. In recent years despite challenges thecompany has been implementing its BIFR approved sanctioned scheme and displayedresilience to adopt new economic scenario. Since the implementation of this scheme from 1stApril 1999 the business has been upbeat. In fact, the current year i.e. 2001-02 has been betterthan previous year for the corresponding period. The company has been able to address themain constraints of high wage bill due to surplus manpower and high interest cost. Both thesefactors have been brought down by way of rationalization of manpower and financialrestructuring and repayments to creditors. The company has been receiving excellent supportfrom the owner, i.e. Government of India. Further, State Government of Rajasthan has alsoextended support for raising funds through sale of surplus land at Kota complex. With allthese achievements that company’s business is growing. In the power sector also thecompany has secured and executed some prestigious orders like Santhaldih project ofWBSEB, Obra 6 & 7 project of UPRVUN during the year 2000-01 I.L. is finalizing a majororder for Roper Power Station of Punjab State Electricity Board. The company is enjoyingtechnical & business support from business partners. The company’s capability could also begauged by other business segments, as it has performed well in supply of state-of-artequipments by way of MAX-XL Telephone Exchanges supplied at over 250 locationsthroughout the country. The diversified field of Railway signaling and Defence Electronics isalso yielding good response. The company continues to maintain cutting edge of competitionthrough adherence to international quality standards, high standards of customer service in itsbusiness strong hold of control Instrumentation and Telecommunications. 19
  20. 20. PRESENT STATUS OF INSTRUMENTATION LTD. IL has incurred additional cash losses because of delay in implementing of sanctionedrevival scheme. Due to acute shortage of working capital the company has suffered badly interms of business. The company has, therefore, submitted a proposal for consideration to theAdministrative Ministry. The Administrative Ministry i.e. Department of Heavy Industry,Ministry of HI & PE, has been kind enough to consider the proposal for (a) GovernmentGuarantees for rising funds from Banks/Financial Institutions for reimbursement of additionalcash losses (b) reservation of order by 1 for 10% of Annual requirement of BSNL forMAXXL Telephone Exchange with 50% advance for a period of 3 yours (c) steps for JVformation of holding unit. (d) and for VRS. The committee of Ministers has recommendedthe proposal for consideration of cabinet. The Ministers has recommended the proposal forconsideration of cabinet. The cabinet has also approved this proposal recommended by thecommittee of Ministers in the third week of September 2001. The cabinet approval of the proposal will enable the company to utilize itsmanufacturing capacity infrastructure, manpower and get over the working capital shortage.Rationalization of manpower will be ensured by funds for VRS. Reimbursement of additionalcash losses will enable the company in bridging the working capital deficit. JV formation isexpected to provide technology, finance and marketing input to the company for its longterms viability. 20
  21. 21. Future of I.L. The company is posed for better growth in the coming years in view of thefollowing –* The sanctioned revival envisages liquidation of substantional portion of the liabilities out of the proceeds as loans from sale of surplus land available with the company at Kota. The government of Rajasthan through Urban Improvement Trust, Kota has invited offers and principal approval has been given in the favour of the highest bidder. The company has achieved the target for manpower rationalization as per sanctioned scheme. However process of rights sizing of manpower strength in commensurate with the business potential will be continued.* The sanctioned revival scheme is in its third year of implementation. Joint venture formation of Palakkad unit is at an advance stage. Qualified interested parties have completed due diligence activity. Integration of Jaipur unit with Kota unit is also being taken up.* The company has also undertaken various measures for further improvement in its working such as reduction in cost, reduction in salary and wages through right sizing of manpower, closures of unviable sites, sale of land and building etc. at Sitapur, Jaipur integration of Jaipur unit with Kota and improvement in working capital management. The company is also pursuing actively the plans for introduction of new products to ensure optimum utilization of existing facilities.* With the implementation of revival package and restructuring business of the company with assured from BSNL for next few years the company is hopeful of turn around.* With recent approval by cabinet for reservation of Telecom order from BSNL will help the company to improve its net worth and financial position. 21
  22. 22. ACHIEVEMENTS & AWARDSAchievements An order of over Rs. 300 lacs has been received from Corporation Bank or supply ofUPS products. Our regular customers have continued their faith and confidence of IL products byplacing orders worth Rs. 436 lacs and Rs. 148 lacs respectively for control values and otherflow elements. At Palakkad works cryogenic valve testing facility established for testing valves up to6 inches size. Valves can be tested up to minus 196 degree centigrades. Also thedevelopments of new valve bodies with higher CV valve were tested. The largest rotary electronic control valve 16" made in the country with in housedesign capability. This value was supplied to Formosa Plastics, Taiwan. All the manufacturing facilities at Kota, and Palakkad revalidated for ISO 9000. 22
  23. 23. Important Milestones Achieved1964 - Established with Registered Office at Kota1965 - C&I Production Commenced1975 - Control Value Production Commenced1982 - Special Temp. Sensor (RTD) for Nuclear Plant1988 - Major Diversification in Telecommunication1998 - Diversification in Defence Products2001 - Production of firing device (Defence order)2002 - Production of large size Telephone Exchanges2003 - Production of special solenoid values for nuclear application (Defence order) 23
  24. 24. ORGANISATION STRUCTURE Board of Director Chairman-cum-Managing Director Company Secretary Business Acquisition Procurement Manufacturing Group FacilitiesProjects DDC Customer CP & IT Marketing Unit Services Unit Kota Unit Palakkad Unit Exports Regional & Site Branch Division Offices Offices Subsidiary Corporate Unit F&A Corporate REIL P&A Corporate R&D 24
  25. 25. Chart No. 2 Board of Directors of I.L.Sl.No Name and address of Director Telephone No Email Address1. Shri PM Bhardwaj 0744 - 2426914 ilkcmd@sancharnet.in Director (Production) 0744 - 2424476 dp@ilkota.in and 0744 – 2426806 Chairman-cum-Managing Director (Addl. Charge) Instrumentation Limited, Kota2. Shri SS Dubey 011- 23061622 - Chief Controller of Accounts Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises Udyog Bhavan New Delhi.3. Shri S Jainendra Kumar 011- 23061563 - Director Department of Heavy Industry Ministry of Heavy Industry & Public Enterprises Udyog Bhavan New Delhi.4. Shri Mohan Lall Special Director (BIFR) C-1002, Juhu Abhishek Apartment Juhu Versova Link Road Andheri(W) Mumbai-400 0535. Shri S.K. Gupta 0744 – 2427278 df@ilkota.in Director (Finance) Instrumentation Limited, Kota6. Commodore Harphool Singh, VSM 0744 – 2426376 dc@ilkota.in Director (Commercial) Instrumentation Limited, KotaF 25
  26. 26. PRODUCT RANGE OF ILInstrumentation Limited is an ISO 9002 certified multi-unit, multi-product Company that aremanufacturing those product which are used by any Industry so there are Industry basedmarketing. The main products which are manufacture by Instrumentation Ltd. Are given asunder……. 1. FAULT TOLERENT CONTROL SYSTEM – FICSFault tolerant control system, being manufactured in technical collaboration with AUGUSTSYSTEM, UK is an ultra reliable control designed for use in critical industrial, control, safelyshutdown and monitoring application.It can be used as a stand – alone control system or be part of a distributed process controlsystem CONTROL SYSTEM-FICS 2. MICRO PROCESSOR BASED DISTRIBUTED DIGITAL CONTROL SYSTEM STARDICThe STARDIC microprocessor based Distributed Digital Control System manufacture incollaboration with M/s Toshiba Corporation; Japan caters to need of flexible andcomprehensive process plant instrumentation and controls to obtain energy conservation,improved productivity and quality, increase yield and safe innovative operational techniques.The STARDIC Distribution System is flexible and can be utilized in small, medium or largescale application. The system architecture dually fits process automation .Where a plantexpands physically and functionally involving several phases while still maintaining singleloop integrity.ECS-1200 DISTRIBUTED CONTROL SYSTEMThis Evolutionary control system is the latest state of the art control system from HF ControlCorporation (HFC), USA. HFC, a wholly owned subsidiary of Doosan Heavy Industries &Construction (DHICO) is designer, manufacturer assembler, integrator and distributor ofcontrol system & Instrumentation, HFC provides ECS-1200 control system for power plantsand industrial plants. Capabilities include Combustion Controls, Burner/Boiler Management,and Balance of Plant (BOP) control, for combined cycle, Electrical generation, Cement, 26
  27. 27. Nuclear, Petrochemical, and Power etc. 3. ELECTRONIC TRANSMITTERSELECTRONIC CELL TRANSMITTER, being manufacture in technical collaboration withM/s Fuji, Japan, is of capacitance type, used for measuring pressure, differential pressure,flow rate, liquid level and other process variables. It employs a unique floating cell structureand is available in various compact models with wide measuring ranges. ELECTRONIC TRANSMETER 4. GAS ANALYSERS AND POLLUTION MONITORING INSTRUMENTSIt manufactures GAS ANALYSERS and POLLUTION MONITORING INSTRUMENTS intechnical collaboration with M/s MANNESMANN HAREMANNAND RAUN, WESTGERMANY. The range covers almost all types of online gas analyzers viz. paramagnetic,infrared, thermal conductivity and pH analyzer- IL’S gas concentration robust design allowsthese to withstand the stress and strain of everyday industrial operation and can be employedto identify noxious concentration s in environmental atmosphere.IL also offers: i. Zirconium Probe Oxygen Analyzers in collaboration with WESTINGHOUSE. ii. Dissolved Oxygen & Hydrazine analyzer Model Oxyflux-4 in collaboration with Dr. THIEDING & Co. WEST GERMANY. iii. Steam and Water Analyzers & systems (SWAS) 5. MICRO PROCESSOR – BASED RECORDERS / CONTROLLERSIL now offers microprocessor – based recorders in technical collaboration with M/s ABBKENT, UK. The microprocessor – based strip chart recorder is designed to provide recordingof up to six input channels in a compact instrument with improved accuracy, reliability and 27
  28. 28. ease of programming. Besides strip chart recorder this range also includes circular chart anddigital display controller. 6. CONTROL VALVESIL manufactures a wide variety of control valves viz. globe, butterfly, angle, three-way,below sealed, flowing, micro flow, top and bottom guided, double seated, low noise, etc. tocover all conceivable application in technical collaboration with world renowned m/sYAMATAKE HONEYWELL, JAPAN. Pneumatic and electric actuators are also available. 7. SAFETY RELIEF VALVEThe SAFETY RELIEF VALVES are manufactured in technical collaboration with M/sNUOVO PIGONE, ITALY. (the world leaders in the design and manufacture of safety reliefvalve).They give prompt relief at the exact pressure for which they have been set and are availablefrom ½ “ to 10 “ with pressure rating of 150 – 2500 ANSI. 8. LARGE – SIZE SOFT – SEATED BUTTERFLY VALVESConfirming to American Water Works Association Standard, these valves are the best choiceas isolation valves for water and gas application. Ensuring bubble tight closure, due to softseating, these are available in wide range of sizes up to 2400 mm and materials to suit anyprocess requirements. 9. RAILWAY SINGNALING SYSTEMSIL has achieved a high degree of excellence in designing, manufacturing, supplyinginstallation, testing and commissioning of railway signaling systems comprising of panelinterlocking, route relay interlocking, color light signaling, etc. the complex circuit design forthese systems are carried out on computer aided systems. The manufacturing range of IL intechnical collaboration with KYOSAN ELECTRIC MANUFACTURING Co., JAPAN,includes various types of signaling relays, track circuits, audio frequency track circuitequipment, modernized systems like CTC, SSI etc. 10.CONTROL PANELS AND DESKSFor electronic and pneumatic instruments in different types, colors and finishes to suits thecustomer’s specific requirements. 28
  29. 29. CONTROL PANELS 11.ANNUNCIATIORSCMOS based Annunciators, based on its in house R&D, are available in integral, wall –mounting and remote configuration featuring all standard requirements. 12.DIGITAL SWITCHING SYSTEMSThe digital switching systems being manufactured are based on indigenously developed C-DOT technology.ELECTRONIC PRIVATE AUTOMATIC BRANCH EXCHANGE (EPABX). The systemincludes 128 and 256p exchange, working in digital environment which ensures highreliability and speed. 29
  30. 30. CUSTOMERS OF INSTRUMENTATION LTD. Customer of Instrumentation Ltd., Kota are in the following sectorsI. Steel Plants Steel authority of India Limited (a) Bhilai Steel Plant (b) Bokaro Steel Plant (c) Durgapur Steel Plant (d) Rourkela Steel Plant (e) Tata Iron and Steel Co., JamshedpurII. Paper Industries (a) Hindustan Paper Corporation Ltd. (b) Andhra Paper Mills (A.P.) (c) Mysore Paper MillsIII. Power (a) National Thermal Power Corporation (NTPC) (b) Bharat Heavy Electrical Limited (BHEL) (c) Steel Authority of India Limited (SAIL) (d) Durgapur Projects Ltd.IV. Atomic Energy (a) Nuclear Power Corporation India, Ltd. (b) Department of Atomic Energy (DAE) (c) Bhabha Atomic & Research CentreV. Fertilizers (a) The Fertilizer Corporation of India Ltd. (b) Shriram Fertilizer, Kota (c) Hindustan Fertilizer Corporation Ltd.VI. Railway (a) Western Railway (b) Central Railway (c) National Thermal Power Corporation Ltd. 30
  31. 31. (d) RITESVII. Defence Products (a) Defence Laboratory, Jodhpur (b) ARDE, Pune (c) DRDL, Hyderabad (d) Ministry of Defence, New DelhiVIII. Textile (a) Grasim Industries (b) Gwalior Rayon Silk Mfg. Co. Ltd., Nagda (c) Baroda Rayon Corporation Ltd.IX. Pharmaceuticals (a) Indian Drugs & Pharmaceuticals Ltd. Hyderabad, A.P. (b) Indian Drugs & Pharmaceuticals Ltd., Rishikesh (c) Hindustan Antibiotics Ltd. 31
  32. 32. METHODOLOGYCONCEPTUAL FRAMEWORK :INTRODUCTION OF INDUSTRIAL MARKETING Industrial marketing consists of all activities involved in the marketing of productsand services to organization (i.e., commercial enterprises, profit and not for profit institution,government agencies and resellers) that use products and services in the production ofconsumer or industrial goods and services in the production of consumer or industrial goodsand services and to facilitate the operation of their enterprises. Viewed from the perspectiveof “Marketing”, industrial marketing is, then, human activity directed towards satisfyingwants and needs of organizations through the exchange process. Exchange transactions in the industrial market consist of – (a) Products or Services Exchange (b) Information Exchange (c) Financial Exchange and (d) Social ExchangeProduct Exchange : The characteristics of the product or service involved have a significant effect on theindustrial exchange process. The ease of exchange depends upon the ability of the seller toidentity the buyer’s need and the product’s potential to satisfy those needs.Information Exchange : Information Exchange often consists of answering technical, economic andorganisational questions regarding pre and postsale maintenance and servicing. Products mustbe planned and designed to serve customers. To accomplish this, buyers and sellers tend towork together, exchanging product – specific information over long period of time. 32
  33. 33. Financial Exchange : Financial exchanges may involve such considerations as the granting of credit or theneed to exchange money from one currency into another when dealing with foreign buyers.Social Exchange : Social exchange is important in such areas as reducing uncertainty between buyer andseller, avoiding short term difficulties, and maintaining the exchange relationship over alength transaction period. Many aspects of an agreement between buyers and sellers in theindustrial market are not fully formalized or based on legal criteria until the end of thetransaction period. Rather, much of the process of exchange is based on mutual trust. Industrial Marketing deals with marketing of specialized industrial products and isquite different from conventional marketing of FMCG goods. The main characteristics of industrial marketing are –1. It deals in sale of industrial products.2. It requires in depth technical knowledge of the product being sold.3. In industrial marketing Mass advertisement/vigorous advertising through electronic and Print Media is not done. Instead, Personal one to one contact with customer are made.4. No or very small distribution channels are in this marketing.5. In most of the cases the seller and buyer know each other.6. The sale is done through the proper marketing process of tender enquiry, quotation, techno-commercial discussions etc. Difference in Industrial Marketing V/s Consumer Marketing Area Industrial Marketing Consumer MarketingMarket Geographically concentrated Geographically dispersed MassStructure relatively few buyers markets monopolistic 33
  34. 34. Area Industrial Marketing Consumer Marketing oligopolistic competition competitionProducts Technical complexity Standardized services, delivery customized service, delivery and availability somewhat and availability very important importantBuyer Functional involvement Family involvement, social/behaviour rational/task motive psychological motives predominante technical predominate, less technical expertise stable relations expertise non personal interpersonal relationships relationships. reciprocityDecision Distinct, observable stages Unobservable mental stagemakingChannels Shorter, more direct, fever Indirect, multiple linkage linkagePromotions Emphases on personal selling Emphasis on advertisementPrice Competitive bidding, List prices negotiating on complex purchase, list prices on standard items.Advertising Practically nil advertising in It heavily dependent on mass mass media in this marketing media advertisingContact Totally dependent upon one No one to one contact with to one contact usersKnowledge Selling requires in depth Selling requires no depth technical knowledge. product knowledge. Effective and responsive industrial marketing strategy rests on the industrialmarketer’s knowledge of how organizational buying behaviour is affected by forces withinthe organization. Seldom does an organizational buyer make a decision in isolation.Purchasing decision are influenced by organizational, group and individual forces as well asforce within the external environment. 34
  35. 35. MARKETING PROCESS OF INSTRUMENTATION LIMITEDMAREKETING ORGANISATIONMarketing Origination consists of head office at Bombay & wide network of regional &branch offices at following places. Calcutta , Delhi , Chennai , Bombay , Durgapur , Guahati, Pune , Vadodra , Visakhapatnam , Ahmadabad , Secundrabad . Orders are booked by theiroffices &supplies are made from factory.MARKETING ORGANISATION OF SUPPLIERS FOR EQUIPMENT OTHERTHAN PROCESS CONTROL INSTRUMENTATIONOther suppliers in this category also follow the same line i.e. maximum officers forconcentrating on follow up with individual customer & order booking.There are very large numbers of suppliers in this category vary from very big one like M/sL&T to very small one like M/s RTPL.Most of the suppliers are ready in market for other unrelated &related products with theirnetwork of sales services offices which they utilize for this product range also.Marketing Strategy: This differs from supplier to supplier. Big ones like M/s L&T, M/s Ind.Chem. Etc. are trying to cover all over India, while some ones like M/s Kalindi, M/s RPTLare concentrating one or two areas for effective marketing.Rule of the game for this type of product is low price, fast delivery & efficient after salesservices. To achieve this, many companies like M/s L&T are using to fullest extent their largenetwork of stockiest. Dealers, service centre, which already exists for other proud range.Most of the companies are setting up more & more sales offices for regular contacts arefollowing up with potential customers.Some suppliers of EPABX like M/s L&T & M/s Uptron are trying to attract customer bysupplying complete system i.e., both exchange & telephone of their own make with packageor erection commissioning. 35
  36. 36. MARKETING PROCESS Marketing is everywhere. Formally or informally, people and organizations engage ina vast number of activities that could be called marketing. Good marketing has become anincreasingly vital ingredient for business success. And marketing profoundly affects our day-to-day lives. Financial success often depends on marketing ability. Marketing deals withidentifying and meeting human and social needs. Marketing is an organizational function and a set of processes for creating,communicating and delivering value to customers and for managing customerrelationships in ways that benefit the organization and its stake holders. The aim ofmarketing is to make selling superflows. The aim of marketing is to know and understandthe customer so well that the product or services fits him and sells itself. Ideally,marketing should result in a customer who is ready to buy. All that should be needed thenis to make the product or service available. In business markets companies sellingbusiness goods and services often face well-trained and will informed professional buyerswho are skilled in evaluating competitive offerings. Business buyers buy goods in orderto make or resell a product to others at a profit. Business marketers must demonstrate howtheir products will help these buyers achieve higher revenue or lower costs. Advertisingcan play a role, but a stronger role may be played by the sales force, price and thecompany’s reputation for reliability and quality. 36
  37. 37. The Company is divided into 4 units. Instrumentation Ltd.Kota Unit PDDC Marketing Palghat UnitFactory Unit Unit Factory Kota and Palghat units are production units, PDDC and Marketing units areBusiness Acquisition Units.Marketing Units : Since incorporation of the company all selling activities was done by commercialunit. In 1988-89 commercial units was bifurcated into two units. (i) PDDC Unit (ii) Marketing Unit(i) PDDC Unit : This unit handle all turnkey project of control & instrumentation in segments like steel, plants and Thermal Power Station. In this method production is done accordingly to requirement of customer.(ii) Marketing Unit : The company has product range that include retail industrial products like Transmitters, UPS, SDDS, C-DOT (MAX/XL), Mobile Tower etc. solenoid valves, control panels & desks, Defence products. 37
  38. 38. This unit of the company looks after the sales of retail products. The marketing unit is headed by General Manager (Marketing) and its organizationalstructure is shown as below : GM MarketingDelhi Kolkatta Chennai MarketingBranch Branch Branch Co-ordination Kota Mumbai Jaipur Hyderabad Branch Branch Branch Each branch is headed by Branch Manager and has officials looking after variousproducts. They contact the customers (Existing and Potential) in their region through variousmeans like personal contacts fax, telephone, E-mail etc. Since IL is making industrial products and not customer durables, the company knowsits customers well and customers also know the product range of IL. Moreover company is more than 43 years old, they have very old and strongrelationship with its customers IL enjoys lot of goodwill with its customer & this results inrepeat orders to the company. Officials of each branch get enquiries from customers for their requirements andquotations are submitted. 38
  39. 39. Chart No. 4 FLOW CHART OF MARKETING PROCESS IS ADOPTED IN INSTRUMENTATION LTD. This process is explained in details in flow chart. Each step is explained in belowparagraph. Receiving Tender Enquiry Submitting Quotation Techno Commercial Discussion Selected lowest price Technically accepted offer Issuinsg Purchase Order Branch allots O.P. No. (Order Processing Number) and makes MDS (Manufacturing Data sheet) and CDS (Commercial Data sheet) & sends to Kota marketing Co-ordination Kota Marketing Co-ordination makes PP (Production Programme) and sent to PPC (Production Planning & Control) PPC Makes MPR (Material Purchase Requirement) to Purchase Department A 39
  40. 40. A Purchase Department floats enquiry to its vendors Receiving Quotation Techno Commercial Discussions with venders Select lowest price technically accepted offerAfter receipt of all material required to manufacture the produce PPC Deptt. makes PP to Production Shop & gives MWV (Material Withdrawl Voucher) to Production Product Manufacturing For Rectification QA (Quality Assurance Checks) not OK If if OK If not OK Customer OK Gives QA tagcustomer If Informs Mktg. co-ordiation for inspection inspection If NO inspection Inspection OK Product finishing and make PCV (Production Credit Voucher) B 40
  41. 41. B Deposit in Finished Goods (FG) Store through PCV Inform to Marketing Kota For giving Challan Marketing gives challan to FG stores FG stores Gives material for Packing & Despatch Despatch the material & gives all documents to Bill onlyMarketing Department sent bills to customer & its banker & collection of payment 41
  42. 42. DETAILS OF MARKETING PROCESS IN IL1. Receiving Tender Enquiry : Enquiry is floated by purchaser to it known suppliers of the product he requires to purchase. In this enquiry all technical requirements are mentioned by purchaser and he also mention commercial terms & conditions in this document like payment terms, taxes an duties, security deposits for EMD and performance etc.2. Submitting Quotation Tender : According to the requirements of the tender enquiry the company submitting quotation mention in this document all technical specifications of the product and also mentions the prices and commercial terms and conditions i.e. excise duty, P&F, sales tax, freight, insurance charges etc. Seller also mentions special terms and conditions regarding payments through Bank/Advance payment.3. Techno Commercial Discussions : Purchaser receives quotation from many suppliers and evaluates them as per technical specifications required by them and prices quoted by sellers.4. Selected lowest price technically accepted offer : After techno commercial discussion the user selects the lowest priced technically accepted offer. After selecting the offer, the user finalizes the terms and conditions with supplier by means of telephonic discussion writing letters meetings etc.5. Issuing Purchase Order : After receiving the satisfactory reply from the seller the user issues a purchase order to supplier to supply the material as per technically accepted specifications mentioned in the purchase order. Purchaser also mentions the commercials terms and conditions in the purchase order. Purchase order is a document after which manufacturing process starts. 42
  43. 43. 6. Branch Function : After receiving Purchase Order, Branch registers the order and allots a order processing file no. and prepare manufacturing data sheet and commercial data sheet and sends to Kota Marketing Co-ordination. Order processing file no. is an eight digit number as mentioned below there after this OP No. is used in all codependence processing inside I.L. 91307005 The significance of each digit is explained below : 9 = The first digit specifies the unit and 9 is the digit of marketing unit, 8 is for project DDC unit & so on.1 = The second digit specified the branch by which order is procured. 1 denote Delhi branch 2 denote Chennai branch 3 denotes Kolkatta branch 4 denotes Mumbai branch 5 denotes Defence Marketing Kota 6 denotes Marketing Co-ordination Kota 7 denotes Jaipur branch 3 = The third digit specify the order is for the retail order or spare items order. 1 denotes retail supply 2 denotes spare items supply 07 = This digit shown the year of the receiving purchase order. For financial year 2007-2008, 07 is used.005 = This number denotes order processing file number.7. Kota Marketing Co-ordination makes production programme and sent to production planning and control : 43
  44. 44. After receiving purchase order Mktg. Co-ordination Kota, sent MDS and CDS to production planning control department on online computer system. There is an online system for controlling the manufacturing process. So a production programme is made on online system which is received by PPC Department8. PPC makes Material purchase Requisition to purchase department : After receiving the production programme from marketing co-ordination the production planning and control department checks the items that are not available in stock. Then PPC make MPR for not available items and sends to the purchases department for purchasing the required material. This is also done in online system using PPC module.9. Purchase department floats enquiry to its vendors : After receiving MPR from PPC Department the purchase department floats enquiry to its vendors for the supply of material.10. Receiving Quotation : After floating enquiry the purchase receives quotations from various suppliers and processes it.11. Techno commercial discussion : After receiving quotations techno commercial discussions are done by purchase department.12. Selected lowest price technically accepted offer : After techno commercial discussion the purchase department selects the offer which is suitable according to the technical specifications and prices.13. Function of PPC Department : After receipt of all material required to manufacture the product, PPC Department makes Production Programme to Production shop and gives the Material Withdrawal Voucher (MWV) to production and production shop gives MWV to stores and gets all material for making product. 44
  45. 45. 14. Product Manufacturing : After receiving all components from store the production shop starts its manufacturing process.15. Quality Assurance Department : After manufacturing the items the production shop offers it to quality assurance department for checking the manufactured items as per specification of purchase order. Quality Assurance checks the items and if it found OK they issue a quality tag number and if the item is not found OK then the QA Deptt. returns the item to Product Mgf. Department for rectification as suggested by the QA Department. The production deptt. after rectification, offers the product back to QA deptt.16. Gives Quality Assurance Tag : When the Quality Assurance Department Satisfied for the quality of the manufactured item then it gives QA Tag to the manufactured item. If customer inspection is required then production Department informs to marketing co-ordination for calling the customer for inspection.17. Product finishing and makes production Credit Voucher : After QA certification production department finishes the product and makes production credit voucher document in on line computer system. 45
  46. 46. 18. Deposit in Finished goods store through PCV : After preparing Production Credit Voucher all the finished goods are deposited in FG store through PCV.19. Inform to Marketing Co-ordination Department : When the Finished product is deposited in store the store department informs to mktg. coordination deptt. for giving challan.20. Mktg. Gives challan to finished goods store : When the clearance information received by marketing department, it prepares the challan giving all specifications of materials and mention all commercial terms in the challan.21. Finished Goods stores gives material for packing and Despatch : After receiving the delivery challan, FG store issues the material to packing department for packing the material and to despatch them.22. Dispatch the material and gives all documents to Billing Department : When all the documents i.e. delivery challan, packing list, excise gate pass, copy of Railway Receipt/Goods Receipt Voucher etc. are available it is send to Billing Deptt. for raising invoices on customers. 46
  47. 47. Then billing department raised the bills as per delivery challan and send all documents to marketing co-ordination department.23. Marketing Department sent bills to customer/its banker for collection of payment : When bills copies is received by Mktg. Co-ordination it is sent to customer/its banker / branches office for collection of payment as per commercial terms and conditions, of the purchase order. 47
  48. 48. PURCHASE DEPARTMENT All material is purchased by purchase department in I.L. When company receivesorder from customer Kota Marketing co-ordination makes production programme and sent toProduction Planning and Control (PPC). PPC makes Material Purchase Requirement andsends to Purchase Department for purchasing the required material. In this way procurement action is taken by the purchase department of thecompany. Purchase department is divided into two parts – Purchase Department Indigenous Purchase Import Purchase1. Indigenous Purchase : When purchase made from within the country for fulfilling the order it is known as indigenous purchase.2. Import Purchase : When purchase made from outside the country for fulfilling the order which the company receives it is known as import purchase.PROCEDURE OF INDIGENEOUS PRUCHASEAnalysis of Existing Procedure of store Accounting :1. Procurement division on completion of purchase procedure (formalities) place the purchase order on supplier and after entering P.O. details in online ERP System, a copy of P.O. is sent to the store accounts. (a copy of P.O. format is enclosed). The copy of P.O. is kept in particular series in respective P.O. file in store accounts.2. According to the payment terms of purchase order, if advance payment is to be made to supplier, than procurement division after entering the required details in online ERP system in respect of payment, IRL is prepared and is sent along with Performa/confirm invoice to store accounts for further action. (a copy of IRL is enclosed). 48
  49. 49. 3. While preparing the payment voucher, all the terms & condition of P.O. is verified with the PI/Confirm Invoice and with the IRL. After verification of the PO terms, the payment particulars are recorded in purchase order as well as in supplier’s advance register (manually). Format of advance register is enclosed and thereafter payment voucher is prepared in online ERP System and is sent to cash section for preparation of cheque/DD and controlling the voucher in online system. (format of payment voucher is enclosed) 49
  50. 50. Where the payment to supplier is to be release through Letter of Credit, in such cases, a request for LC opening is sent by procurement to store accounts and LC is opened in bank accordingly. Either the payment is to the supplier is released through bank on retirement of LC documents from bank or on due date, it depends on the nature of LC (I.E. sight or usance LC). LC opening, payment and retirement of dispatch details from the documents retired from bank, are recorded in the LC register. (LC register format is enclosed).4. When input material is received in IC&S Store, various input details are entered in material module in online system, then receipt voucher and CENVAT voucher (D3) is prepared. Some samples of input material is sent to QA, after approving the quality, the samples are returned to the IC&S store, thereafter R.V. is controlled in IC&S store and the copy of the same is sent to the store accounts (A copy of RV is enclosed). After verification of P.O. terms, the input material details are recorded in P.O. as well as in supplier is advance register and thereafter purchase voucher (RV voucher) as well as payment voucher (if payment is due) is prepared in online system and both the voucher are sent to book section and cash section respectively of their needful action.5. A statement of completing items purchased, containing the input details is prepared periodically by procurement/mktg. Unit/comm. Unit (if PO series is pertaining to KU) and is sent to store Group-I (if invoicing of subject item is done by billing section) and to the store accounts respectively. Further (despatch) sale particulars of the input is incorporated in the statement of completing items and is sent to store accounts. After verification of input details from the PO, necessary details are recorded in PO and voucher for consumption and suppliers account are prepared for onward sending the same to book section. Where the invoicing of completing items is done by other units as stated above and the PO is placed in KU series, then store accounts sends the fund/other transfer advice to the respect unit.6. When input material bought for manufacturing has rejected at shop, then QAD form containing the information in respect of rejection of the input, is prepared in nine copies by QA department and a copy of the same is sent to the store accounts, based on the information containing in the QAD, store accounts debits the suppliers account and credit the consumption of indg. material other than W.O. account. (format of 50
  51. 51. QAD is enclosed). When replacement/refund is received, then suppliers account is credited accordingly.7. Sale tax forms are issued in the name of suppliers (in case of inter state sale only) on receipt of their periodical statement of material and delivered the same to procurement. The S.T. forms are issued after reconciliation of suppliers statement with our sub-ledger and clearance (outstanding) debit balance lying in suppliers account. 51
  52. 52. Chart No. 5Imports Department Material purchase request (Indent) Foreign purchase dept. Quotation from foreign supplier Quotation from foreign supplier Technical and Financial Adjunctions Technical and Financial Adjunctions Financial bid vetting of Technically Ok suppliers Financial bid vetting of Technically Ok suppliers Purchase Proposal Vetting Purchase Order Vetting Purchase Order Placed Payment Advance Sight draft payment A Advance Letter of Sight draft Direct payment credit payment 52
  53. 53. A Bank confirmation Foreign Supplier Documents Materials Bank Material air/ship Custom Documents Bill of Kota Entry FRV Destination (Mumbai/Delhi) Foreign Rejected Purchase Dispatch to corresponding unit Material Dept.GR waiver Rejected request Quality check Approved Holding Stock FRV Pricing Shop Production 53
  54. 54. Import Department of Instrumentation Ltd. Product planning dept. decides for a product to be manufactured. They list outthe raw materials needed and the request for material purchase is sent to purchasedept. In case the raw material or components are to be imported the procedure is asfollows:Procurement1. Material purchase request comes from indenter.2. A public notification in media like newspapers is given inviting tenders from suppliers as per mentioned specification. The Tenders can be of three types: Open tender : Any supplier fulfilling specified conditions may apply. Limited tender : When only limited suppliers are there. This is the most common type with IL. Single source : When there is only one supplier who is in accordance with our need. Sometimes we receive quotations from only one supplier then in such a case it comes a single source tender.3. Tenders received are opened4. A comparative statement is prepared. The various quotations are compared with each other in terms of price, quality, period of delivery, basic rate, loading rate, transport cost, compatibility, etc. and the best are marked as L1, L2, and L3 and so on.5. The most reasonable party is negotiated with for deciding payment mode, transport medium and other related areas.6. Order is then placed.PAYMENT METHODS This involves a multi stage process. First of all a material purchase request come fromthe purchase dept. to foreign purchase deptt. The deptt. invites various quotations fromforeign suppliers and the best one is selected. A purchase order is placed accordingly. The mode of payment is decided with the supplier. It can be done in the followingways: 54
  55. 55. # Advance Payment# Letter of Credit# Sight DraftLETTER OF CREDIT Letter of credit (L/C) is a commercial letter of credit opened for imports of goods by abanker at the instance of his importer customer in favour of overseas seller. A L/C may be commercial or non-commercial one. When it relates to a mercantiletransactions, buying and selling of goods, it is called a commercial letter of credit, when itdoes not relate to any mercantile transaction, but only conveys an order of the opening bankerto his overseas correspondent to pay to third party named in the order within the specifiedperiod of time against draft drawn upon him by that party up to stated amount, it is non-commercial letter of credit. This is the most common mode of payment. 55
  56. 56. Advance payment This is done by way of demand draft or telegraphic transfer (now a day’s transferthrough SWIFT system). Method is usually used for dealings involving small amounts andwith known parties where delivery period of goods is short. This reduces the delays in gettingthe materials due to letter formalities. This also saved the bank charges paid to foreign bankswhich are usually quite high.SIGHT DRAFT This method is rarely used. When the formalities of method of payment are completedthe foreign supplier dispatches the good by air/sea route to Delhi/Mumbai where they arereceived and forwarded to the concerned unit. Meanwhile the payment is done within theperiod as specified in the contract which can be up to 120 days. This can be called as L/C atsight.Insurance This is a kind of security against losses via fire, theft and flood. In the words ofJustice Tindall, “Insurance is a contract in which a of sum of money is paid to the assured asconsideration of insurer’s incurring the risk of paying a large sum upon a given contingency”.Insurance is done for: Inward indigenous Imports Outward dispatches 56
  57. 57. RESEARCH METHODOLOGYDEFINITION OF RESEARCH METHODOLOGY & DESIGN Research study will be based on collection of primary data as well as secondary.Research Methodology is a way to systematically solve the research problem. It may beunderstood as a science of studying how research is done scientifically. The study of researchmethodology gives the student the necessary training in gathering material and arrangingthem.“Research Comprises defining and redefining problems, formulasting hypothesis orsuggested solutions; collecting, organizing and evaluating data; making deductions andreaching conclusions; and atlast carefully testing the conclusions to determine whether theyfit the formulating hypothesis”. -Clifford Woody Research is an academic activity and as such the term should be used in technicalsense. Research is the systematic approach concerning, generalization & formulation oftheory. RESEARCH DESIGN It is an exploratory research design. studies are also termed as formulative research studies. The main purpose of suchstudies is that of formulating a problem for more precise investigation or of developing theworking hypothesis from an operational point of view. The major emphasis in such studies ison the discovery of ideas and insights. As such the research design appropriate for suchstudies must be flexible enough to provide opportunity for considering different aspects of aproblem under study. 57
  58. 58. DATA COLLECTION The task of data collection begins after are research problem has been defined andresearch design/plan chalked out. While deciding about the method of data collection to beused for the study, the researcher should keeps in mind two types of data (a) Primary Data (b) Secondary Data Collection of Primary Data The Primary data are those which are collected afresh and for the first time. Primarydata will be collected by researches by questionnaire, observation, interviewing the executiveengaged in formulating as well as implementation of marketing procedure and its accounting,for the purpose, technique of satisfied random sample will be used and a sample of 15employees will be selected randomly. Moreover the researcher will also interview themanagement and executive, looking after the marketing and store accounting in IL, Kota. inmy research I have opted questionnaire method which was filled by marketing departmentand procurement division. The researcher will also make on the spot study by using the observation technique ofdata collection. COLLECTION OF SECONDARY DATA The secondary data are those which have already been collected by someone else andwhich have already been passed through statistical process. For collecting secondary data the researcher has taken the help of publishedreport/information of IL Accounts and Balance Sheet, Newspaper, Periodicals Journals andMagazines etc. related to this study. After collecting the data by primary as well as secondarysources the researcher has classifed, tabulate and interpret the same by using the variousstatistical tools and techniques such as mean, mode, median, standard deviation, correlationetc. 58
  59. 59. TYPE OF SAMPLINGSimple random sampling technique was used. SAMPLE SIZEWhile preparing the project report I will take the response to certain questionnaire from ILemployees. The sample of 15 employees has selected randomly. 59
  60. 60. DATA INTERPRETATION Data from Primary Resources(A) WHICH TYPE OF PRODUCTS ARE MANUFACTURED BY I.L. : PRODUCTS control panel telecom exchange gas analyser all of theseINTERPRETATION : ALL THE ABOVE PRODUCTS ARE MANUFATURED BY I.L. 60
  61. 61. (B) HOW IS THE DEMAND OF I.L. PRODUCTS IN THE MARKET : DEMAND IN % 11 MODERATE 45 EXCELLENT 29 LESS VERY LESS 15INTERPRETATION :FROM THE ABOVE CHART WE CAME TO KNOW THAT THEDEMAND OF I.L. PRODUCTS ISMODERATE = 45%EXCELLENT= 15%LESS= 29%VERY LESS=11% 61
  62. 62. (C)WHAT IS THE MARKET POSITION OF I.L. MARKET POSITION 2 15 GOOD 38 MODERATE POOR CAN’T SAY 45INTERPRETATION :FROM THE ABOVE PIE CHART WE CAME TO KNOW THATMARKET POSITION OF I.L.GOOD = 15%MODERATE = 45%POOR= 38%CAN’T SAY= 2% 62
  63. 63. (D) Quality of Material used in Production in I.L. Quality of Material Respondents Response High 80% Better 14% Moderate 6% Low 0% Respondents response on the quality of material used 0% 6% 14% High Better Moderate Low 80%INTERPRETATION : From this we can know that the material being used is of highquality and only in some rare cases they go for moderate and better one but never for the lowquality material. This shows that the company pays attention to the quality of the materialalso. 63
  64. 64. (E) Price level at which the materials are procured Level of Price Respondents Response High 33 Better 53 Moderate 14 Low 0 Price level at which the material is procured 53 60 50 40 33 30 14 20 10 0 - High Better Moderate LowINTERPRETATION : From this data we can interpret that the price at which the material isbeing procured is better. So its clear that purchasing is made in economical way. By this theycan have high quality material at better and moderate price so it’s a smart purchasing. 64
  65. 65. (F) Sources from which the material is purchased in I.L. Sources Respondents Response Local 0 Indigenous 27 Import 13 Import & Indigenous 7 All 53 Respondents response against the source from where the Material is Procured 60 53 50 40 30 27 20 13 10 7 0 0 Local Indigenous Import Import & All IndigenoussINTERPRETATION : By this can say that company applies all the sources in procuring the raw material. Asit can be seen that it gives more importance to the Import & indigenous purchase only. So bythis we can interpret that company works globally. But is increasing there expenditure onmaterial and finally decreasing their profit margin. 65
  66. 66. (G) Which mode of payment is adopted by the company in Purchase/Sale? Types of Payment Respondents Response Letter of Credit of Sight 13% Advance 7% All 80% Mode of payment used for Purchase / Sale 80% 7% 13% Letter of Credit or Sight Advance AllINTERPRETATION : By this we can interpret that company uses all the mode of paymentswhile purchasing and sale. But most of the trade is done through Letter of Credit (L/C) orsight payment as the graph shows. So by this we can say that most of the trade outside thecountry. 66
  67. 67. RECOMMENDATIONS After analyzing the whole marketing procedure in I.L. following suggestion can besummarized –* Steps should be taken to train the employees in training institutes or calling training institutes in Instrumentation Ltd.* Marketing personnels should visit potential customer and appraise them about its product range and study their requirements.* Incentive schemes should be provided to create interest in oneself to capture more orders.* Seminar/display of products/proper advertisements to educate customers.* They must try to maintain the good relation with the supplier and try to have relations with new suppliers too.* They must try to have a smart purchasing of raw material imported as they purchase goods at a higher rate, so they must try to check for next supplier.* The payment must be paid at said time so that there can be healthy relations among the traders.* There must be a proper flow of communication which must be adopted as many time because by poor communication company need face loss and loose the goodwill in the market.* People in an organization must try to cooperate with each other in attaining the goal. 67
  68. 68. 68
  69. 69. LIMITATIONS OF THE STUDY The study of “marketing procedure and procurement action” is based on the data andinformation available only. - There was a Limitation of time. - There was Inadequacy of Resources. - There was Inadequacy of Literature. - Website not up to date so secondry data collection was difficult. - Area was restricted due to which study was restricted. - Working method is a bit traditional.. 69
  70. 70. CONCLUSION Proper marketing is very necessary for any organization to have a good relation withits suppliers and customers. It is indispensable to managers and workers are doing work withcooperation. Healthy industrial relation is a backbone of industries. Trade union is alsoessential part of organization. It plays role of mediator between management and workersparticipation in management is essential for proper management in any industry. Followingpoints are specially noted :* Low awareness in use of technology- The employees are unable to full exploit the use of new technology like E-mail, Electronic tenders, latest marketing techniques etc.* Low awareness on competitors information- During my project work researcher observed that the marketing unit was not having adequate market intelligence and there was no well established procedure for gathering competitors information.* The company is overly dependence on landline orders in telecom field- Major portion of the order booking is from BSNL land line exchange, which is reducing.* No customer oriented approach – customer sends enquiry of their own & Instrumentation Ltd. quotes but they do not approach customer make them aware of our products.* Product Information – No seminar, advertisement etc. to make the customer to Know its product range.* No Business Promotion activities is run by IL to boost up sales.* Working environment is healthy, cordial and co-operative. 70
  71. 71. * All contents and result show that good and harmonious industrial relation and effective, efficient workers participation is great essential factor of any company’s prosperity.* There was no any strike and lockout in I.L. history.* Insurance claims do not get cleared at right time. 71
  72. 72. BIBLIOGRAPHY1. Philip Kotler – Keller , Koshy and Jha “Marketing Management”, 13th Edition 2009,Pearson publications.2. Annual Reports of Instrumentation Ltd. 2004-05 and 2005-06.3. Kothari C.R. “Research Methodology” (Methods Techniques) 2nd revised Edition, 2004, New Age International Publishers, New Delhi. Webliography :1. www.ilkota.in2. www.google.com 72
  73. 73. QUESTIONNAIRE This questionnaire is being circulated for surveying the extent of information theemployees of Instrumentation Ltd. have about their company, their level of satisfaction andthe opinion they have about IL. All information and details of the survey will be keptconfidential only consolidated result will be used for MBA project report.1. Employee’s Name : _____________________2. Organisation Name : _____________________3. Department of the Employee : _____________________4. Designation : _____________________Q.1 Which type of products are manufactured by I.L.? (a) Control Panels (b) Telecom Exchange (c) Gas Analyser (d) All of theseQ.2 How is the demand of I.L. products in the market? (a) Moderate (b) Excellent (c) Less (d) Very LessQ.3 What is the market position of I.L.? (a) Good (b) Moderate (c) Poor (c) Can’t sayQ.5 What is the quality of material used in production ? (a) High Quality (b) Moderate Quality (c) Better quality (d) Low Quality 73
  74. 74. Q.6 What about the price level of material procured for production? (a) Very price competitive (b) High priced (c) No concern about price (d) Don’t knowQ.7 From which source majority of the material is purchased for production? (a) Indigenous all ones India (b) Imported (c) Within state (d) All of theseQ.8 Which mode of payment is mostly used for purchase ? (a) Advance payment (b) Letter of credit or sight (c) All of theseQ.9 Are you satisfied with the marketing procedure adopted in I.L.? Say yes or no. if no please give comments in 20 words. _________________________________________________Q.10 Are you satisfied with the company’s production and turnover? (a) Yes (b) No (c) Yes, but need for further increase (d) Can’t sayQ.11 Please write in 20 words your ideas/suggestions for improving the performance of the company. _________________________________________________ 74

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