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E-mail: Kolkata.region@nirmalbang.com
Website: www.nirmalbang.com
KUSHAL GHOSH
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PROJECT REPORT
SUBMITED FOR THE PARTIAL FULLFILLMENT OF
PGDBM/MBA
AT
INTERNATIONAL SCHOOL OF
BUSINESS, KOLKATA
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Dibyendu Nandy of International School of Business,
Kolkata-700091
TABLE OF CONTENTS
1.ACKNOWLEGDEMENT
5
2.EXECUTIVE SUMMERY
6
4.COMPANY PROFILE
9
5 SERVICES
11
6.SWOT ANALYSIS OF NIRMAL BANG
13
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I. DEFINITION OF CHANNEL BUSINESS MODEL
17.CONCLUSION
43
18. BIBLIOGRAPHY
44
19. A N N E X U R E
45
ACKNOWLEGDEMENT
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First and foremost, I would like to thank and express my gratitude to
Nirmal Bang Financial Group which is a leading organization in Stock &
Commodity trading, for giving me an opportunity to work in their
esteemed organization. During my tenure, I undertook Market Research
& Cross selling and gained hands on knowledge about the actual stock
market scenario.
I also like to thank Mr. Subarna Saha (Senior Manager), & Mr Sudipto
Ganguly franchisee owner of Nirmal Bang Financial Group for helping me
and providing me useful & necessary information related to the project.
I would take this opportunity to thank all senior executives and
every associates of Nirmal Bang Group without their cooperation I
would not be able to complete this project.
I would also like to thank all our faculties who have taught me and have
shared their experience with me which has helped me in doing my
project.
EXECUTIVE SUMMERY
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This project offers a valuable opportunity to take a glimpse on the
expansion strategy of any broking house in eastern region.
The equity brokerage industry in India is one of the oldest in the Asia
region. India had an active stock market for about 150 years that played
a significant role in developing risk markets as also promoting
enterprise and supporting the growth of industry.
The roots of a stock market in India began in the 1860s. At that time
brokers used to gather to seek stock tips and share news on step of a
bank building. After being disallowed to use the steps of the bank
building the share brokers had to find a place their own which later turn
in to DALAL STREET. A group of about 300 brokers formed the stock
exchange in Jul 1875, which led to the formation of a trust in 1887
known as the “Native Share and Stock Brokers Association”.
A unique feature of the stock market development in India was that that
it was entirely driven by local enterprise, unlike the banks which during
the pre-independence period were owned and run by the British.
Following the establishment of the first stock exchange in Mumbai, other
stock exchanges came into being in major cities in India, namely
Ahmedabad (1894), Calcutta (1908), Madras (1937), Uttar Pradesh and
Nagpur (1940) and Hyderabad (1944). The stock markets gained from
surge and boom in several industries such as jute (1870s), tea (1880s
and 1890s), coal (1904 and 1908) etc, at different points of time.
A new phase in the Indian stock markets began in the 1970s, with the
introduction of Foreign Exchange Regulation Act (FERA) that led to
divestment of foreign equity by the multinational companies, which
created a surge in retail investing. The early 1980s witnessed another
surge in stock markets when major companies such as Reliance
accessed equity markets for resource mobilization that evinced huge
interest from retail investors.
From the year1987 broking houses like Ashika, India Bulls, Motilal Owsal
came in to existence in share broking industry. Then the share broking
business gets the test of corporate house and becomes more organized.
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In later days companies like Reliance,Kotak,ICICI etc emerged in the
share broking business.
Here my study tries to help Nirmal Bang to choose the proper expansion
strategy and to achieve their goal in future in eastern region.
India infoline
15%
30% Kotak Securities Ltd
19% Share Khan
Indiabulls
Motilal Oswal
14% 8% Religare
4% 10%
Others
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OBJECTIVE OF THE STUDY
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COMPANY PROFILE
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Nirmal Bang Securities Private Limited is a flag-ship company of Nirmal
Bang Group, and started its broking operations under corporate license in
1997. Currently, NBSPL is engaged in equity broking, arbitrage trading,
depository operations and distribution of the financial products. NBSPL is
held 100% directly or indirectly by the promoters.
Nirmal Bang Group is one of the largest retail broking houses in India,
providing the investors state of art services in capital markets in the
country. We are a financial services company in India, offering a wide range
of financial products and services targeted at retail investors, high net
worth individuals and corporate and institutional clients. The Group has
memberships of Bombay Stock Exchange Limited, National Stock Exchange
of India Limited, Multi Commodity Exchange of India Limited, National
Commodity and Derivatives Exchange limited and is also a Depository
participant of NSDL and CDS (I) L, the Depositories of the country.
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• Bang Equity Broking Private Limited
SERVICES
COMMODITIES
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company is planning to establish itself as a leading research center for
commodities market in the country.
DISTRIBUTION
Distribution of retail finance products – Mutual Funds and IPO’s. The group
is empanelled with all the Fund Houses in the country to sell their Mutual
Fund and NFO’s using the retail network. IPO’s selling is undertaking from
all the branches of the company.
Reliance Mutual
India
Infoline
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S
Motilal
Oswal MC
SB
I
ULIP Nirmal Bang
Security pvt ltd
India
Religar Bulls
e
Share
TATA EQUITY
Strengths:
Nirmal Bang is a well capitalized group with net worth of 3500 crores.
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Company is unaffected in this global recession which shows company’s
never say die sprits. It means company is armed with proper resources
to fight any adverse situation.
Weakness:
Investors are not completely aware of Nirmal Bang, so the brand value
of the company not yet created.
Opportunities:
The growth of capital market is very high. Investors are now ready to
invest their money in this market because the return is much higher
compare to other place for investment, so they are ready to bear risk
factor associated with it. It means volume will increase year by year in
this sector.
Company has not come yet with its own IPO, this is a good chance for
the company to be a public limited company which will help company to
get money and create brand awareness in this market.
Threats:
Company has to face a tough competition from major market leaders, so
it will be a difficult task for Nirmal Bang to sustain itself in this cut throat
competitions.
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money at much safer place instead of this market.
Nirmal Bang became fully operational in Eastern India in both the equity and
commodities market from October 2008. Since then the company has shown a
tremendous growth in the amount of earning in each month. In October 2008
the company’s total earning was around Rs.6.4 lakhs. This increased to around
Rs.22 lakhs in March 2009, which further increased to around 25 lakhs in April
2009.
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There has also been a tremendous increase in the earnings from the
commodities market for Nirmal Bang in Eastern India. In October 2008 the
earnings from commodities market was around Rs. 40 thousands. This
increased to Rs. 2.2 lakhs in February 2009, which further increased to Rs. 4.7
lakhs in April 2009.
The rate of growth of the company itself speaks for the character and
determination of the company and all the employees. If the company keeps on
growing at this rate then it will soon be able to compete with all the big players
in Eastern India.
Nirmal Bang is planning to open up another 20 branches and about 200 sub-
brokers within the next one year. Thus there will be more 250 contact point for
the clients. Also the company will be providing a lot of employment
opportunity for the local people.
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INDIAN STOCK/EQUITY MARKET
stock market is a public market for the trading of company stock and derivatives at
an agreed price; these are securities listed on a stock exchange as well as those
only traded privately.
The Bombay Stock Exchange BSE, the oldest organization in Asia, gives
information about the prices of the shares of the Stock Market in India.
The other organizations highlighting on the share trading in the Indian
Stock Market are:
The Nifty and the Sensex are the indicators which are the parameters
denoting the prices of the stocks of the major companies of the NSE and
the BSE respectively.
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Indian Stocks foretells that soon India might be one of the most profitable
stock market in the world.
The Indian Equity Market is also the other name for Indian share market or
Indian stock market. The forces of the market depend on monsoons, global
funding flowing into equities in the market and the performance of various
companies. The Indian market of equities is transacted on the basis of two
major stock indices, National Stock Exchange of India Ltd. (NSE) and the
Indian Equity Market at present is a lucrative field for the investors and
investing in Indian stocks are profitable for not only the long and medium-
term investors, but also the position traders, short-term swing traders and
also very short term intra-day traders. In terms of market capitalization,
there are over 2500 companies in the BSE chart list with the Reliance
Industries Limited at the top. The SENSEX today has rose from 1000 levels
to 8000 levels providing a profitable business to all those who had been
investing in the Indian Equity Market. There are about 22 stock exchanges
in India which regulates the market trends of different stocks. Generally the
bigger companies are listed with the NSE and the BSE, but there is the
OTCEI or the Over the Counter Exchange of India, which lists the medium
and small sized companies. There is the SEBI or the Securities and
Exchange Board of India which supervises the functioning of the stock
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markets in India.
In the Indian market scenario, the large FMCG companies reached the top
line with a double-digit growth, with their shares being attractive for
investing in the Indian stock market. Such companies like the Tata Tea,
Britannia, to name a few, have been providing a bustling business for the
Indian share market. Other leading houses offering equally beneficial
stocks for investing
in Indian Equity Market, of the SENSEX chart are the two-wheeler and
three-wheeler maker Bajaj Auto and second largest software exporter
Infosys Technologies.
The market for long term securities like bonds, equity stocks and preferred stocks is divided
into two categories –
1) Primary Market
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2) Secondary Market
Primary market:
The primary market deals with the new issues of securities Stocks available
for the first time are offered through primary market. The issuer may be a
new company or an existing company. These issues may be of new type or
the security used in the past. In the new issue market or primary market
the issuer can be considered as a manufacturer. The issuing houses,
investment bankers and brokers and brokers act as the channel of
distribution for the new issues. They take the responsibility of selling the
stocks to the public.
The main agencies who are involved in the primary market are
underwriters, bankers, advertising agencies, financial institutions and
government/statutory agencies.
Secondary Market:
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In the secondary market, the investors can sell and buy securities. Stock
market predominantly deals in the equity shares. Well regulated and active
stock market promotes capital formation. Growth of the primary market
depends on the secondary market. The health of the economy is reflected
by the growth of the stock market. The term "secondary market" is also
used refer to the market for any used goods or assets, or an alternative use
for an existing product or asset where the customer base is the second
market
The secondary market for a variety of assets can vary from fragmented to
centralized, and from illiquid to very liquid. The major stock exchanges are
the most visible example of liquid secondary markets - in this case, for
stocks of publicly traded companies. Exchanges such as the New York Stock
Exchange, NASDAQ and the American Stock Exchange provide a
centralized, liquid secondary market for the investors who own stocks that
trade on those exchanges. Most
bonds and structured products trade “over the counter,” or by phoning the
bond desk of one’s broker-dealer.
In case of Indian stock market, Bombay Stock Exchange (BSE) and National
Stock Exchange (NSE) are the two most important stock exchanges where
the transaction being takes place.
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Bombay Stock Exchange (BSE):
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich
heritage, now spanning three centuries in its 133 years of existence. What
is now popularly known as BSE was established as "The Native Share &
Stock Brokers' Association" in 1875.
BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities
Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized. It migrated
from the open outcry system to an online screen-based order driven
trading system in 1995. Earlier an Association of Persons (AOP), BSE is now
a corporatized and demutualised entity incorporated under the provisions
of the Companies Act, 1956, pursuant to the BSE (Corporatisation and
Demutualization) Scheme, 2005 notified by the Securities and Exchange
Board of India (SEBI). With demutualization, BSE has two of world's best
exchanges, Deutsche Borse and Singapore Exchange, as its strategic
partners.
Over the past 133 years, BSE has facilitated the growth of the Indian
corporate sector by providing it with an efficient access to resources. There
is perhaps no major corporate in India which has not sourced BSE's services
in raising resources from the capital market.
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Housing Development Finance Corporation Ltd. Finance - Housing
HDFC Bank Ltd. Banks
Hindalco Industries Ltd. Aluminium
Hindustan Unilever Ltd. FMCG
ICICI Bank Ltd. Banks
Infosys Technologies Ltd. Information Technology
ITC Ltd. FMCG
Larsen & Toubro Ltd. Engineering
Mahindra & Mahindra Ltd. Automobiles - 4 wheelers
Maruti Udyog Ltd. Automobiles - 4 wheelers
NTPC Ltd. Power
Oil & Natural Gas Corporation Ltd. Oil Exploration/Production
Ranbaxy Laboratories Ltd. Pharmaceuticals
Reliance Communications Limited Telecom
Reliance Energy Ltd. Power
Reliance Industries Ltd. Refineries
Satyam Computer Services Ltd. Computers - Software
State Bank of India Banks
Tata Consultancy Services Ltd. Computers - Software
Tata Motors Ltd. Automobiles - 4 Wheelers
Wipro Ltd. Computers – Software
The National Stock Exchange (NSE), located in Bombay, is India's first debt
market. It was set up in 1993 to encourage stock exchange reform through
system modernization and competition. It opened for trading in mid-1994.
It was recently accorded recognition as a stock exchange by the
Department of Company Affairs. The instruments traded are, treasury bills,
government security and bonds issued by public sector companies.
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Presently there are 24 stock exchanges in India, out of which 20 have
exchanges National Stock Exchange (NSE), over the Counter Exchange of
India Ltd, (OTCEI) and Inter-connected Stock Exchange of India limited (The
fully computerized National Stock Exchange (NSE) is considered India’s
second exchange. Also based in Mumbai, it was set up in 393 and allows
traders from other Indian cities access to stocks of thousands of companies
through its screen-based trading system. Its network covers more than 40
cities across India. The NSE is also set to start derivatives trading.
The main index of the NSE is the S&P CNX Nifty, a diversified blue-
chip index comprised of 50 stocks accounting for 25 sectors of the
economy. To be included in the index a company should have a market
capitalization of at least 5 billion rupees. The NSE also developed a dollar-
denominated version of the Nifty called S&P CNX Defty, which is aimed at
FLLs. There is also the Nifty Junior which is comprised of the next 50 largest
liquid stocks in India. The NSE produces the S&P CNX 500, India’s first
broad-based benchmark, representing about 90 per cent of total market
capitalization and about 98 per cent of the NSE’s total turnover. In addition,
there are numerous industry indices, including the IT sector and public
sector enterprises.
NCCL
NSCCL NSETECH
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DotEx Intl. Ltd.
NSDL
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The gradual evolution of commodity market in India has been of great
significance for our country's economic prosperity. In the Indian commodity
market there are so many verities of products including agricultural
products like rice, wheat, cattle etc; energy products like coal, petroleum,
kerosene, gasoline; metals like copper, gold, silver, aluminum and many
more. There are some delicate commodities also such as sugar, cocoa, and
coffee, which is perishable, so cannot be put in stock for long time. The
commodity futures exchanges were evolved in 1800 with the sole objective
of meeting the demand of exchangeable contracts for trading agricultural
commodities. Nowadays a wide range of agricultural products, energy
products, delicate commodities and metals can be sold under standardized
contracts on exchanges prevailing across the globe. Commodities have
gained importance with the development of commodity futures indexes
along with the mobilization of more resources in the commodity market.
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support about the utility of their product or service to make the channel
business Successful.
In recent years Monginis one of the most successful bakery in West Bengal,
who runs their business using channel business model.
In share broking industry most of the share broking companies uses this
channel business model. Motilal Owsal, India Infoline became most
successful broking house using this channel business model.
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In broking industry some companies follow own branch model. Companies
like Kotak securities ltd, India Bull follow this model and they became
successful.
Both the models have some advantages and disadvantages. These are
explained in the following lines.
ADVANTAGES:
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business. So the company indirectly gets the brand promotion. Therefore
the company need not make any expenditure towards marketing.
4.Better Penetration- Through this model the company can penetrate every
corner of the country. But the company bears no capital cost, supplies only
its product and goodwill.
5. Faster and more cost effective way to Brand Building- Channel business
model is the fastest and more cost effective way for brand building. As
channel business partner comes from different corners so companies
product, service, brand name are well circulated. People are well aware of
the activity of the company.
DISADVANTEGES
1.Less control- In channel business model the company has less control over
the channel partners as the partner is not its own employee. So the
company cannot manage according to its will.
3.Profit sharing- In channel business the company has to share its profit
with his channel business partner.
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As the customers have no direct relation with the company, no such
relation generally grow with the main company.
1.Better human resource- In own branch model company can recruit its
employee as per its choice and standard. Generally the employees of the
company are well educated, they render useful services to the customers.
This service helps to expand the goodwill of the company .
2.Better service- In own branch model company has its own well educated
and trained personals so company can serve better service towards its
customer. In own branch model company has direct relation with its
customer so company can offer better and standard service to its
customer.
3.No profit sharing- In own branch model company need not share any profit
with its business partner. So company gets hundred percent profit.
4.Direct relation between customer and company- As the company has direct
relation with its customer, any time the company can communicate with its
customer easily. Customer can also contacts company whenever necessary.
Company earns faith of the customers by direct relation.
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5.Better control- In own branch model company has better control on its
employee. This control helps the company to achieve its vision and
mission. If there is any misunderstanding between the company and the
customer, the company can take necessary action to solve the problem at
an earliest.
DISADVANTAGES
1.Huge capital investment- In own branch model company has to invest huge
capital to establish its branches in different corners. More over it has to
spend a large sum of money to run the branches. So sometimes it may be
a burden on the company.
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4.Slower way for brand building- It is not easy to establish branches whenever
necessary, so the growth of the company falls back and ultimately the
brand building of the company also effected so it is a slower way of brand
building.
STUDY DESIGN
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Planning of market survey (whom to visit, how to visit, time
duration of survey, area of survey etc.).
Filling up of questionnaire.
Analysis of data collected through questionnaire.
Discussion with internal project guide.
Preparation of final summer training report.
Submission of the complete report to the program
coordinate
RESEARCH METHODOLOGY
Research Objective :
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A survey was done on the traders and non traders. The survey was
directed at certain target and the main objectives of the survey
are as follows:
Research Approaches
Survey ---- survey is the best suitable method for descriptive research.
Surveys are mainly done to know about people’s opinion, beliefs,
preferences etc. I have done a survey to know traders and non traders
preference between company’s own branch against franchisee and for that
purpose I interviewed large number of investors and non investors in equity
market in Kolkata, Hooghly district.
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Research Instrument
Sample Plan
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Sample procedure ---- It defines – how should the respondents be
chosen?
Sampling Technique
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1. I have gathered information and data from the secondary source
like internet. These data may be true or not.
1. City
2. Rural or interior location
3. Town
It is found that 8% of the investors are aware of the company Nirmal Bang and
the remaining 92% of the investors are not aware of the company.
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PERCENTAGE
100
90
80
70
60
50 AWARE
40 UNAWARE
30
20
10
0
AWARE UNAWARE
Among the 100 investors whom were surveyed 31% are office goers, 63% are
business persons and the remaining 6% have other mode of earning.
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MODEOFEARNING
SERVICE
BUSINESS
OTHERS
Among the 100 investors whom were surveyed 41% are office goers, 56%
are business persons and the remaining 3% have other mode of earning.
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3.Preference in city- Customers residing in cities prefer own branches over
channel partners or franchises, the main reason being security. There are
various other reasons as follows –
o High Profile Customer: - High profile customers are major go to for the
companies in any business. For these kinds of customers, the security is
not the only concern. So, they want better service in every way and also
direct attention of the company. So for them, branches are always a
better choice.
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aware of this fact, and they strive for excellence in maintaining good
business relation with each and every customer. But, the channel
partners may not always be able to do that, simply because of lack of
investment and proper man-power too (they obviously are not such BIG
business units like companies). So, branches in cities win in this aspect
and they are more preferable to the city-customers.
PREFERENCE
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o Well-known employees: - Customers in rural areas can rely more on
people they know personally. They prefer well-known people more than
a well-trained but unknown officiates. In the case of insurance policies,
this factor becomes even more important for them. As the franchises
are based locally, they naturally employ local people and this comes as
an advantage over branches.
PREFERENCE
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PREFERENCE
Data Sources
During the survey both primary and secondary data are collected.
Primary data are those data which are gathered freshly for a
specific purpose or research objective.
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Secondary data are collected from the sources which are already
exist somewhere.
The major findings that were revealed during the research are as
follows :-
FINDINGS
1.The level of awareness among the investors about Nirmal Bang is very
low
3.Most of the investors are invest their money from Kotak securities,
Sharekhan, Motilal Oswal and very few of them are known about Nirmal
Bang securities pvt.ltd.
4. The most popular source of information about the market among the
investors are television and newspaper followed by internet and
business magazines.
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5. People who trade in franchisee they face one common problem that is
lack of
9. Traders who have big portfolio they like to trade from company’s own
branch.
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• Good trading software.
• Regular research reports.
• Educating the clients about the market.
• Good relation with the dealers and the relationship manager.
RECOMMENDATION
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customers of rural area emphasize on personal relation. So in rural
area company can go for channel business model.
5.If in city company goes for channel business model then that
franchisee should possess
7.In case of channel business model the company may occasionally send its
personal
to the franchisee’s office to inspect the activities of the franchisee and gives its
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LEARNING/WORKING TILL DATE
The 14 weeks at Nirmal Bang had been a very fruitful experience. The
axiom which states that there is a lot of difference between bookish
knowledge and practical knowledge has found a perfect manifestation in
my three month SIP at Nirmal Bang. The corporate structure is
completely different. I worked in a Nirmal Bang franchisee at
Chunchura. Here I got the chance to implement my marketing
knowledge and skill to develop the business of the franchisee.
DATABASE COLLECTION
FIXING APPOINTMENTS
The next step in acquiring clients were to give them a call and finalizing
an appointment with the interested individuals.
After the appointment is fixed, the next step was to visit these potential
clients. I was most of the time accompanied by a senior while visiting
any client. I had to visit many clients mostly in
Chunchura,Rishra,Sreerampur, Konnagar, etc. In these client visits, we
used to pitch our product and services according to the needs of the
clients.
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FOLLOW UP PROCESS
Most of the potential clients were not readily convinced at the first visit.
Thus I had to keep in touch with these clients and updating my seniors
with the present situation
CLOSING DEAL
CAMPAIGN PROGRAM
RESULT
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CONCLUSION
The two months summer internship project has been a learning experience
for me. This is my first job experience in any financial institution and
experience at Nirmal Bang will always serve me as a guiding map for the
rest of my career.
In this two months training I have learnt that stock market (equity market)
plays a vital role in the economic development of a nation. The equity
markets are set for an exceptional growth in the future with the adoption of
technology and thereby bringing in transparency, ensuring quality
standards. Government institutions and market participants have to work
towards increasing the awareness regarding stock market futures among
the general inhabitants, So after almost two years that stock market is
finding favors with Indian investors and is been seen as a separate asset
class with good growth opportunities. Sometimes stock market are being
effected by market volatility but those problems are being solves out with
the high quality of technology and proper information about Indian stock
market.
In conclusion, the two months summer internship project has been learning
experience for me. My experience at Nirmal Bang will always serve me as a
guiding map for the rest of my career. In my two months’ SIP I was able to
apply my little marketing knowledge, experience and skill. I also
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understood the importance of expansion strategy of a company to develop
its business. This strategy also varies according to location of the institution
and need and expectation of people.
BIBLIOGRAPHY
www.nirmalbang.com
www.answers.com
www.businessstandard.com
www.google.com
http://en.wikipedia.org/wiki
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Following books, magazine and newspapers are also consulted:
1) Business World
2) Business Economy
4) Business standard
5) Business line
ANNEXURE
o Service
o Business
o Others
2. If service
o Company name:-
o Designation:-
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(A) Mutual fund (B) Insurance (C)
Bank
(D) Fixed deposit (E) Share (F) Others
o Yes
o No
5. Do you have any idea about equity market and commodity market?
o Yes
o No
o Yes
o No
7. Do you trade
o Daily
o Weekly
o Monthly
o Branch
o Franchise
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