The document provides an in-depth overview of Lloyd Electrical & Engineering Ltd, detailing its product offerings in consumer durables, market position, and growth factors, including rising incomes and urbanization. It highlights the company's financial metrics, such as profit margins and working capital, along with insights into the competitive landscape based on Porter's Five Forces model. Additionally, it includes a SWOT analysis, marketing strategies, and human resource requirements to inform potential expansion and strategic planning.

1. FINAL PRESENTATION
“LLOYD ELECTRICAL & ENGENEERING LTD”
SUBMITTED BY: -
NITESH KUMAR
MBA 3

2. (A). Sector information: -
1. INFORMATION:- LLOYD LED TELIVISION COMES UNDER THE “FMCD SECTOR” (FAST MOVING
CONSUMABLE GOODS).
• WHITE GOODS: - WHITE GOODS MAINLY INCLUDES AIR CONDITIONER, REFRIGRETORS, WASHING
MACHINE, AUDIO EQUIPMENTS AND SPEAKERS.
• BROWN GOODS: - BROWN GGODS MAINLY INCLUDES KITCHEN APPLIANCES LIKE CHIMNEY, GRINDER,
MICROWAVE OVENS, MIXER AND ELECTRIC FANS.
• CONSUMER ELECTRONICS: - THIS CATEGORY INCLUDES MP3 PLAYER, DVD PLAYER, VCD PLAYER, MOBILE
TELEPHONES AND TELEVISION.
2. CONTRIBUTION TO GDP: -
• INDIA IS THE 5TH LARGEST POSITION IN THE CONSUMER DURABLE MARKET. BESIDES AN IMPROVEMENT IN
THE CONSUMER DEMAND, FACTORS INCLUDING RISING DISPOSABLE INCOME, EVOLVING LIFESTYLE
HABITS AND REDUCTION IN GOODS AND SERVICES TAX (GST) EXPANSION. THIS YEAR HAS ALSO BROUGHT
IN NEW TRENDS THAT ARE SLOWLY TRANSFORMING THE COUNTRY’S FMCD INDUSTRY.
• CONSUMER DURABLES CONTRIBUTE 12% IN INDIAN GDP.

3. 3. MARKET OVERVIEW: - INDIA’S CONSUMER MARKET WAS RIDING THE CREST OF THE COUNTRY’S
ECONOMIC BOOM. DRIVEN BY YOUNG POPULATION WITH ACCESS TO DISPOSABLE INCOME AND EASY FINANCE
OPTION, THE CONSUMER MARKET HAS BEEN THROWING UP STAGGERING FIGURES. THE MARKET SHARE OF MNC’S
IN CONSUMER DURABLES SECTOR IS 65%. MNC’S OFFER SUPERIOR TECHNOLOGY TO THE CONSUMERS WHEREAS
THE INDIAN COMPANIES COMPETE ON THE BASIS OF FIRM GRAPS OF THE LOCAL MARKET, THEIR WELL
ACKNOWELEDGED BRANDS, AND HOLD OVER WIDE DISTRIBUTION NETWORK.
30%
18%
13%
5%
34%
MAJOR CONSUMER DURABLES: VOLUME SHARE
CLOUR TVS REFRIGERATORS AIR CONDITIONERS
WASHING MACHINE OTHERS
60%
40%
INDIAN CONSUMER DURABLE INDUSTRY
URBAN RURAL

4. 4. GROWTH PATTERN: -
• THE CONSUMER DURABLES SECTOR IN INDIA IS EXPECTED TO GROW 8.5% IN 2018-19. CONSUMER DURABLES INDEX
UNDER THE INDEX OF INDUSTRIAL PRODUCTION (IIP) HAS GROWN 5.6% YEAR-ON-YEAR BETWEEN APE-OCT 2018.
• AS OF FY18, WASHING MACHINE, REFRIGERATOR AND AIR CONDITIONER MARKET IN INDIA WERE ESTIMATED AROUND
RS. 7000 CRORE, RS. 19500 CRORE AND RS. 20000 CRORE RESPECTIVELY.
4.90%
5.60%
4.00%
3.40%
2.90%
0.80%
5.60%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Y-O-Y GROWTH IN CONSUMER DURABLES PRODUCTION AS PER IIP

5. 5. REASON BEHIND GROWTH: -
• DEMAND FOR CONSUMER DURABLES IN INDIA HAS BEEN GROWING ON THE BACK OF RISING INCOMES; THIS TREND IS
SET TO CONTINUE EVEN AS OTHER FACTOR LIKE RISING RURAL INCOMES, INCREASING URBANISATION, A GROWING
MIDDLE CLASS AND CHANGING LIFESTYLE AID DEMAND GROWTH IN THE SECTOR.
• SIGNIFICANT INCREASE IN DISCRITIONARY INCOME AND EASY FINANCING SCHEMES HAVE LED TO SHORTENED
PRODUCT REPLACEMENT CYCLE AND EVOLVING LIFE STYLE WHERE CONSUMER DURABLES, LIKE ACS AND LCD TVS, ARE
PERCEIVED AS UTILITY ITEMS RATHER THAN LUXURY POSSESSIONS.
• GROWTH IN ONLINE RETAILING IS A KEY FACTOR TO REACH OUT AS A NEWER CHANNEL FOR BUYER, WITH INCREASE IN
DEMAND.
1482 1486
1610 1639
1749
1983
2135
2334
2539
2762
3007
3274
0
500
1000
1500
2000
2500
3000
3500
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
GDP PER CAPITA AT CURRENT PRICES (US$)

6. 6. PORTER’S FIVE FORCE MODEL OF SECTOR: -
COMPETITOR
RIVALRY
(HIGH)
THREATS OF
NEW
ENTRANTS
(LOW)
SUBSTITUTE
PRODUCT
(MEDIUM)
BARGAINING
POWER OF
SUPPLIERS
(LOW)
BARGAINING
POWER OF
BUYERS
(HIGH)
COMPETITIVE RIVALRY
 CONTINUOUS INNOVATION LEADS TO INTENSE RIVALRY
 HOMOGENEITY IN PRODUCT AND LOW SWITCHING COST
THREATS OF NEW ENTRANTS
 HIGH CAPITAL INTENSIVE
 MAJOR PLAYER HAVE DEVELOPED
BRAND EQUITY
 BRABD LOYALTY IS MODERATE
SUBSTITUTE PRODUCTS
 TECHNOLOGY ADVANCEMENTS
 BUYERS HAVE HUGE
PROPENSITY TO SUBSTITUTE
BARGAINING POWER OF SUPPLIER
 PRODUCT DIFFERNTIATION IS
VERY LOW
 BY CHANGING THE INPUT, FIRMS
CANNOT DRASTICALLY
DIFFERENTIATE ON PRICE
BARGAINING POWER OF BUYER
 USE OF INTERNET TO GET ALL
THE INFORMATION ENABLES
CUSTOMERS TO BE POWERFUL
 BUYER’S SWITCHING COST IS
VERY LESS

7. (B). COMPANY INFORMATION: -
1. COMPANY SNAPSHOT: - LLOYD ELECTRICAL & ENGINEERING LTD. WAS INCORPORATED ON 10TH NOVEMBER,
1987 AS A PRIVATE LIMITED COMPANY AND WAS CONVERTED IN PUBLIC LTD IN 1994. IT SET UPED IT’S FIST PLANT IN BHIWADI,
RAJASTHAN. THE MANUFACTURING FACILITY OF THE OMPANY IS SITUATED AT A-146, RICCO INDUSTRAIL AREA, BHIWADI,
RAJASTHAN. HERE, THE COMPANY MANUFACTURES CONDENSOR AND EVAPORATOR COILS FOR AIR CONDITIONER OF VARIOUS
CAPACITIES. AT PRESENT, THE COMPANY HAS AN INSTALLED CAPACITY TO MANUFACTURE 125000 COILS FOR STANDARD
AIRCONDITIONER AND 10000 COILS FOR AIRCONDITIONER OF CAPACITY OF 15 TONS. THE COMPANY IS SELLING ITS PRODUCT
TO THE LEADING MANUFACTURERS OF AIRCONDITONERS LIKE VOLTAS. SHRIRAM INDUSTRIAL ENTERPRISE LTD., MITSUBISHI
AIRRCOMMAND AND AMERTEX ECT.
LLOYD IS AN EXISTING, PROFIT MAKING, DIVIDEND PAYING COMPANY ENGAGED IN THE MANUFATURER OF CONDENSOR COILS
AND EVAPORATOR COILS WHICH ARE USED AS ORIGINAL EQUIPMENT IN WINDOW, PACKAGE, AUTOMOTIVE AND SPLIT
AIRCONDITIONERS. THE COMPANY HAS BEEN ENGAGED IN THIS BUSINESS SINCE 11/03/1988.
2002- LLOYD HAS INFORMED THAT MR K LALL HAS BEEN APPOINTED AS ADDITIONAL DIRECTOR OF THE COMPANYNIN THE
MEETING OF THE BOARD OF DIRECTORS HELD ON JANUARY 30, 2002.
2003- BOARD HAS APPROVED DELISTING OF THE SHARES FROM JAIPUR AND DELHI STOCK EXCHANGES.
MR. BHARAT RAJ PUNJ RESIGNED FROM DIRECTORSHIP.
MR. PAVANJIT SINGH RESIGNED FROM DIRECTORSHIP.
2006- LLOYD ENTERNS INTO MOU AITPL.
2008- LLOYD HAS IN FORMED THAT THE BOARD OF DIRECTORS OF THE COMPANY AT ITS MEETING HELD ON APRIL 26, 2008,
INTER ALIA, HAS CONSIDERD AND APPORVED APPOINTMENT MS. RASHMI SACHDEV AS NOMINEE OF IFCI LTD ON THE BOARD
OF DIRECTORS OF THE COMPANY IN PLACE OF MR. SANJAY BEHARI, THE ERSTWHILE NOMINEE WITH IMMEDIATE EFFECT.
2009- LLOYD COMPLETION OF ACQUISITION OF ASSETS OF JANKA RADOTIN A.S.

8. 2010- LLOYD HAS BEEN APPOINTED OF DR. GEETA AJIT TEKCHAND AS ADDITIONAL, NON EXECUTIVE INDEPENDENT DIRECTOR OF
THE COMPANY. MR. MUKAT BIHARI SHARMA HAS BEEN APPOINTED AS ADDITIONAL, WHOLE TIME DIRECTOR OF THE COMPANY.
2011- LLOYD HAS RECOMMENDED DIVIDEND OF RS. 1.5 PER EQUITY SHARE (15%)
2012- LLOYD HAS RECOMMENDED DIVIDEND OF RS. 1 PER EQUITY SHARE.
2013- LLOYD HAS BEEN APPOINTED OF MR. BRIJ RAJ PUNJ AS MANAGING DIRECTOR OF THE COMPANY.
2016- LLOYD ACQUIRED THE RAIL & VEHICLE BUSINESS OF NOSK E-KAESER GROUP BASED IN GERMANY. LLOYD ACHIEVED A
MILEST ONE BY SELLING 200000 UNITS OF AIR CONDITIONERS UNDER “LLOYD” BRAND IN 88 DAYS OF THE CURRENT QUARTER.
LLOYD BAGS $18 M CONTRACT FROM GE TRANSPORTATION. IT IS AWARDED MAJOR INDIA LOCOMOTIVE HVAC CONTRACT.
IN 2017 THE HAVELLS ACQUIRED LLOYD ELECTRICAL & ENGINEERING LTD.
2. PRODUCT PORTFOLIO: - CURRENTLY LLOYAD HAS FOUR TYPE OF PRODUCT IN IT’S PORTFOLIO-
• AIR CONDITIONER: - LLOYD HAS 3 TYPES OF AIR CONDITONERS IN ITS PORTFOLIO-
(1) SPLIT AC (3) WINDOW ACs
(2) CONVERTIBLE AC

9. • WASHING MACHINE: - LLOYD HAS 3 TYPES OF WASHING MACHINE IN ITS PORTFOLIO-
(1) FULLY AUTOMATIC TOP (2) FULLY AUTOMATIC FRONT (3) SEMI AUTOMATED
LOADED LOADED
• LED TELEVISION: - THERE ARE 2 TYPES OF LED TELEVISION IN LLOYD’S PORTFOLIO-
(1) LED TV (2) ANDROID LED TV

10. CHEST FREEZER: - THERE ARE ONE TYPE OF FREEZER IN LLOYD’S PORTFOLIO-

11. (C). MARKETING ASPECT: -
(1). SWOT ANALYSIS OF COMPANY: -
STRENGTH
 WELL KNOWN BRAND
 VARIOUS PRODUCT IN PORTFOLIO
 GOOD DEALER NETWORK
 PRODUCT AVAILABLE IN ALL OVER INDIA
 GOOD SERVICE
WEAKNESS
 LESS MARKET SHARE
 LESS GROWTH
 MORE COPETITOR
OPPORTUNITY
 IT SHOULD EXPAND Its BUSINESS GLOBALLY
 IT SHOULD ADD MORE PRODUCT IN ITS
PORTFOLIO
THREATS
 PEOPLE ARE SWITCHING TO OTHER BRAND
 BETTER QUALITY PRODUCT AVAILABLE IN
MARKET
 MORE GOVT. RULES & TAXES

12. (2). BCG MATRIX OF LLOYD: -

13. (3). PLC OF THE LLOYD: -
(4). SEGMENTATION OF MARKET: -
LLOYD DOES SEGMENTATION ON THE BASIS INCOME GROUP. IT FOCUSES ON MIDDLE &
UPPER CLASS PEPOLE.

14. (D). FINANCE ASPECT OF LLOYD: -
• GROSS & NET PROFIT MARGIN: -
GROSS PROFIT/NET SALES ×100 = 7514000000/23306000000×100
GROSS PROFIT MARGIN = 32.24%
PAT/NET SALES ×100 = 5100000000/23306000000×100
NET PROFIT MARGIN = 21.8%
• DIRECT & INDIRECT COST: -
DIRECT COST = COST OF MATERIAL CONSUMED + PURCHASE OF STOCK IN TRADE + CHANGES IN INVENTORIES +
EMPLOYEE BENEFIT EXPENSES
DIRECT COST (2018) = 2406.12+270.13-57.16+178.77 = 2797.86 cr.
DIRECT COST (2017) = 1349.85+47.76+502.72+175.49 = 2075.82 cr.
CHANGE IN DIRECT COST= (2797.86-2075.82)/2797.86×100
= 25.80%
INDIRECT COST= FINANCE COST + DEPRECIATION EXPENSES + TAX EXPENSES + OTHER EXPENSES + EMPLOYEE
BENEFIT EXPENSES
INDIRECT COST (2018) =119.95+48.96+18.28+259.61+178.77= 625.57 cr.
INDIRECT COST (2017) =68.73+45.17+172.61+160.80+175.49 =622.80 cr.
CHANGE IN INDIRECT COST= (625.57-622.80)/622.80×100=0.444%

15. • FIXED ASSETS ADDED DURING THE YEAR: -
2018-2017= 765.18 -422.19 = 342.99cr.
• WORKING CAPITAL OF THE YEAR: -
WORKING CAPITAL= CURRENT ASSETS - CURRENT LIABILITIES
WORKING CAPITAL = 1722.84-1032.26= 690.58 CR.
• DEBT EQUITY RATIO: -
TOTAL LIABILITIES/SHARE HOLDERS EQUITY= 2488.02/ (40.34+1275.39) = 1.82
GROSS PROFIT MARGIN 32.24%
NET PROFIT MARGIN 21.8%
DIRECT COST 2797.86 cr.
INDIRECT COST 625.52 cr.
CHANGE IN DIRECT COST 25.80%
CHANGE IN INDIRECT COST 0.44%
FIXED ASSET ADDED 342.99cr.
WORKING CAPITAL 690.58cr.
DEBT EQUITY RATIO 1.82
QUICK RATIO 1.46
CURRENT RATIO 2.76
CASH RATIO 0.05
CURRENT SHARE PRICE 2.85
NET CASH FLOW -676 M

16. BALANCESHEET

17. LEEL ELECTRICALS LTD CASH FLOW
From Operations Rs m -315 59 -107 666 10,628
From Investments Rs m -552 -317 -537 -380 -3,453
From Financial Activity Rs m 1,206 352 744 -42 -7,851
Net Cashflow Rs m 339 94 100 243 -676

18. LEEL ELECTRICALS LTD INCOME DATA
Net Sales Rs m 17,760 21,727 27,152 33,281 23,306
Other income Rs m 491 127 90 25 404
Total revenues Rs m 18,250 21,854 27,242 33,307 23,710
Gross profit Rs m 1,652 2,329 2,080 2,707 7,514
Depreciation Rs m 318 402 464 490 452
Interest Rs m 855 943 1,055 1,200 687
Profit before tax Rs m 970 1,111 651 1,043 6,779
Minority Interest Rs m 0 0 0 0 0
Prior Period Items Rs m 0 0 0 0 0
Extraordinary Inc (Exp) Rs m 0 0 0 0 0
Tax Rs m 79 227 232 343 1,679
Profit after tax Rs m 891 884 419 700 5,100
Gross profit margin % 9.3 10.7 7.7 8.1 32.2
Effective tax rate % 8.2 20.4 35.6 32.9 24.8
Net profit margin % 5.0 4.1 1.5 2.1 21.9

19. (E). HUMAN RESOURCE ASPECT: -
• ORGANISATIONAL STRUCTURE: -
CEO
DEPUTY GENRAL
MANAGER
SALES AND
MARKETING
PROCUREMENT
HR
UTILITY &
SERVICES
PRODUCTION
FINANCE

20. • SKILL SET REQUIRE IN THE COMPANY: -
1. GENERAL SKILLS –
-COMMUNICATION (LISTENING, VERBAL, WRITTEN)
- TECHNICAL SKILLS - ANALYTICAL SKILL
- INTERPERSONAL SKILL
- PROBLEM SOLVING SKILL
- MULTI TASKING
2. ON THE FLOOR QUALITY AND SKILLS THAT IMPRESSES THE MANAGEMENT --
- MANPOWER MANAGEMENT
- INTERPERSONAL SKILL
- TECHNICAL EXPERTISE
- QUALITY CONSCIOUSNESS
- INNOVATION
• JOB DESCRIPTION & JOB SPECIFICATION OF LLOYD: -

21. JOB DESCRIPTION: -
COMPANY: - LLOYD ELECTRICAL & ENGENEERING LTD.
DESIGNATION: - ACCOUNTANT
DIVISION/TITLE UNIT: - FINANCE
LOCATION: - MUMABI/PUNE
SALARY: - 600000-800000 CTC.
KEY RESPONSIBILITIES: -
-CASH FLOW PROJECTION
-MIS REPORTING
-WORKING CAPITAL MANAGEMENT ( FINANCE JD)
-IMPORT & EXPORT
-COMPLIANCE WITH RBI
-P&L AND BALANCE SHEET
-BUDGETING
JOB SPECIFICATION: -
QUALIFICATION: -
-CA/CMA WITH MINIMUM 50%
-10TH, 12TH AND GRADUATION WITH MINIMUM 60%
EXPERIENCE: -
2-5 YEAR EXPERIENCE IN RELEVENT FIELD
COMPETENCY: -
-GOOD COMMUNICATION SKILL
-KNOWLEDGE OF MS EXCEL AND SIX SIGMA
-GOOD ANALYTICAL SKILLS.

22. THANK YOU