Sip Report JCB

BHARATIYA VIDYA BHAVANS USHA & LAKSHMI MITTAL INSTITUTE OF
MANAGEMENT
SUMMER INTERNSHIP REPORT
Study of Supply !"#$ R#%& M"$"'()($t
*B I$d#" L#)#t(d
I$du%t+y M($to+, M+- P"+d((p K"$%"l
F".ulty M($to+, P+of- N((l") T"$do$
Su/)#tt(d /y,
S)#t" S!"+)"
Roll $o- 01
PGDM 0234531 6F#$"$.( M"7o+8
DELARATION
Page | 1
I declare that the project titled Supply Chain Risk Mangement a prerequisite
towards partial fulfillment of the summer training and award of the Post Graduate
iploma In Management from !haratiya "idya !ha#an$s %sha & 'akshmi Mittal
Institute of Management( )ew elhi is an accurate record of my work under the
guidance of Prof*)eelam +andon Professor !%'MIM*
Students Signature
SMI+, S-,RM,
Roll )o. /0
PGM /123420
5inance majors
A.&$o9l(d'()($t
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I( Smita Sharma( would like e6tend my gratitude to M+- S"$7"y !"ud!"+y ( Senior
Manager( Project Guide for gi#ing me the opportunity to do my project at 7C!
India 'td* I would also like to thank him for pro#iding his support and a8le guidance
during the course of my project*
I would also like to thank M+- P"+d((p K"$%"l and M+- H+#dy"$"$d : Company
Guide( who guided me throughout my training at 7C! India 'td and encouraged
me to do new things and ga#e their #alua8le inputs as and when they thought
necessary* +heir constructi#e feed8ack and insights ha#e helped me de#elop a
perspecti#e and has also ena8led me to o#ercome challenges that came
during the entire course of the project* +heir calm demeanor and willingness to teach
has 8een a great help in my successfully completing the project* My learning has
8een immeasura8le and working under them was a great e6perience*
My sincere thanks also e6tend to all the staff mem8ers of '&+ 5inance '+* for
pro#iding a hospita8le and helpful work en#ironment and making my summer training
an e6citing and memora8le e#ent*
I would also like to thank P+of- N((l") T"$do$( !haratiya "idya !ha#an$s %sha &
'akshmi Mittal Institute of Management( )ew elhi( who as my 5aculty Guides has
always moti#ated me to put my 8est endea#ors and match the e6pectations of the
organi9ation* In spite of her 8usy schedules( she ensured that she was always
a#aila8le for pro#iding feed8ack and ensuring that the project was done with utmost
quality and consistency*
5inally( I thank all my fellow trainees at 7C! India 'td* who from time to time ha#e
helped me with information( insights and their support* +heir cooperation has
helped me immensely and made the e6perience of the internship program at
7C! India 'td* an enriching one*
ABSTRAT
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+he Project includes the research study on the Supply Chain Risk Management*
,naly9e how the Suppliers are doing their 8usiness in the present en#ironment* ,lso
to study the operations processing of the Company
Secondary data was collected from the 8uyers who deal with the respecti#e suppliers
of 7C! 8y sending them a set formatted form seeking their opinions regarding the
#arious field included in it so that the key suppliers can 8e distinguished as ha#ing
the highest and lowest risk and 8e placed accordingly on the !CP Matri6*
+,!': ;5 C;)+:)+
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S(+#"l No- Top#. P"'(
2 :6ecuti#e Summary <
/
/*2
/*/
/*3
Introduction
;8jecti#es of the Research
Purpose of the Study
Scope of the Research
=
=
=
3
3*2
3*/
3*3
3*>
Company Profile
-istory
"ision
Mission
Strength
21
2/
2/
2/
23
>
>*2
>*/
>*3
Research Methodology
Statement of the pro8lem
Research design
Sample design
2=
2?
2?
2?
/1
@ 'imitations /2
0 Competitors analysis 8ased on !usiness #olume /<
<
<*2
<*/
Collection of ata Construction equipment Industry
Study of Construction :quipments in etail
3 Aey ri#ers for Growth in Construction Industry Research
33
30
>@
= Interpretation and 5indings ?/
? Conclusions and Recommendations ?34?0
21 Process Mapping of 5low of 5unds ?<4213
22 References 21>
E;EUTIVE SUMMARY
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The Research Work is on the Construction Equipment Business. The purpose of the study is
to find out the Potential and position of Suppliers working environment and to know aout
the overall financial health and capailities of the Suppliers across the country. Specifically!
the research o"ectives are to#
$ To analy%e the industrial relations maintained y the suppliers with &CB.
$ To know and analy%e the financial crisis of the company using accounting ratios.
$ Sales done so far y the suppliers.
$ Safety measures taken up y the suppliers to avoid any future contingencies like
natural ha%ards or lockouts! ensuring regular supply.
$ Their short and long term mitigation plans.
'or this purpose! the key suppliers were identified according to the importance of parts
supplied y them for the manufacturing process y which total (( key suppliers were
identified.
The questions cover a wide range of criterias as follows# )
This document provides a framework for collecting! developing! and implementing est
practices for SCR*. +t focuses on
$ +dentifying internal and e,ternal environments
$ Risk identification and assessment
$ Risk treatment
$ Continual monitoring and review of risks and their treatment.
T!( follo9#$' <#t"l .o$.lu%#o$% 9(+( d(+#<(d,
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,s per the research it is concluded that construction equipment industry plays an
important role in infrastructure sector* It can 8e seen from the 21th 0 year plan for
infrastructure where most of the cost for the projects in#ol#es cost for the equipments
and materials* +herefore more demand generation*
,nd as per the increasing B of demand generation 20B e#ery year( the 8usiness
seems to 8e growing and growing keeping 8ehind the monstrous effect of the
meltdown*
Correspondingly the situation impro#es for the suppliers as 8usiness #entures for
them too are growing at a speedy rate*
+he clientele is impro#ing and the list is enlarging as more and more 5+%$s C5irst
time usersD( are entering into the market and su8letting is increasing*
INTRODUTION
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R(%("+.! O/7(.t#<(% of t!( %tudy,
+he o8jecti#e of research is to study the Construction :quipments Industry* ,naly9e
how the Suppliers and 5inancers are doing their 8usiness in the growth and
recession period*
+o know the +urno#er of the Suppliers and is8ursement made 8y 5inancers*
Sales done so far 8y the suppliers*
Machineries dealt 8y the suppliers*
+o look for ;pportunities ahead for the Suppliers and 5inancers in the near
future*
Pu+po%( of t!( %tudy,
+he purpose of the study includes the following.4
Present market condition*
+he requirement of these ,ssets in different sectors like in retail( road
construction( mining( agriculture( infrastructures*
+he o#erall sales 8y the suppliers in elhi )CR and dis8ursement 8y
5inancers*
S.op( of t!( Study,
Eorld hea#y construction equipment demand will grow 0*> percent annually through
/11? 8ased on continued e6pansion of emerging markets such as :astern :urope(
India and China* )orth ,merica will remain the largest and fastest growing market
within the +riad Ce*g*( )orth ,merica( 7apan( and Eestern :uropeD*
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O+'"$#="t#o$>o)p"$y P+of#l(
J.C.Bamford Excavators Limited! universally known as JCB! is a British multinational
corporation! with headquarters in Rocester! Staffordshire! manufacturing equipment
for construction! demolition and agriculture. +t is the world-s third)largest construction
equipment manufacturer. +t produces over .// types of machines! including diggers
0ackhoes1!e,cavators! tractors and diesel engines. +t has 22 factories across 3sia! Europe!
4orth 3merica! and South 3merica5 its products are sold in over (6/ countries.
JCB was founded in (786 y &oseph Cyril Bamford! after whom it is named5 it continues to
e owned y the Bamford family. +n the 9: -&CB- is often used colloquially as a generic
description for mechanical diggers and e,cavators

Tpe ! Private
"ndustr ! #eav equipments
$ounded ! %&'(
#eadquarters ! )ocester* +nited ,ingdom
Products ! Construction* -emolition . /griculture 0achiner
)evenue ! 1%.2( 3illion4566&7
Emploees ! /pproximatel 8*666
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H#%to+y
&CB was founded y &oseph Cyril Bamford in ;ctoer (786
in 9tto,eter! Staffordshire! England. <e rented a lock)up garage (2 feet y (6 feet. +n it!
using a welding set which he ought second)hand for =( from English Electric! he made his
first vehicle! a tipping trailer from war)surplus materials. The trailer-s sides and floor were
made from steel sheet that had een part of air)raid shelters. ;n the same day as his son
3nthony was orn! he sold the trailer at a neary market for =86 0plus a part)e,changed
farm cart1 and at once made another trailer. 3t one time he made vehicles in Eckersley-s coal
yard in 9tto,eter.
+n (78>! si, people were working for the company! and it made the first hydraulic tipping
trailer in Europe. +n (76/! it moved to an old cheese factory in Rocester! still employing si,.
3 year later! he egan painting his products yellow. +n (76.! his first ackhoe loader was
launched! and the &CB logo appeared for the first time. +t was designed y ?ery *edia and
advertising designer @eslie Smith. +n (76A! the firm launched the Bhydra)diggaB!
incorporating the e,cavator and the ma"or loader as a single all)purpose tool useful for the
agricultural and construction industries.
+n (7C/! &CB-s hydraulic tractors entered the 4orth 3merican market! proving a long)lasting
success. &CB ecame! and still is! the rand leader in the world. By (7C8! &CB had sold over
.!/// .C ackhoe loaders. The ne,t year! the first .C/)degree e,cavator was introduced! the
&CB A.
+n (7A>! the @oadall machine was introduced. The ne,t year! &CB started its operation
in +ndia. +n (77(! the firm entered a "oint venture with Sumitomo of &apan to produce
e,cavators! which ended in (77>.Two years later! a &CB factory was completed
in Dooler near Savannah! Eeorgia in the 9S3! and the ne,t year a factory was opened
in Bra%il.
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0ission9!
3t &CB we seek to delight our customers y creating and providing unique value through high
quality payment products! a roust infrastructure and world class services. &CB recogni%es it
is our gloal corporate responsiility to ensure our products and services contriute to the
etterment of all the people and places we serve.
:ision 9!
3s the only international payment rand originating in &apan! our vision is to e a leader in
gloal payments through innovative thinking! and solutions to the rapidly changing gloal
payments landscape. We continually strive in our efforts to e a unique payment rand that
adds value to every aspect of the daily lives of our customers.

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*B INDIA LTD OVERVIE?
&CB +ndia @imited started operations in (7A7 and today it is the fastest growing company in
the +ndian earthmoving and construction equipment industry. The company is a pioneer in the
industry and has een recording e,cellent growth rates year on year.
&CB +ndia has three operational world class manufacturing facilities5 one in Ballagarh!
<aryana near 4ew ?elhi! two in Dune and two upcoming units in &aipur. The Ballahgarh
facility is the worldFs largest ackhoe loader plant which also manufactures @iftall! the Gpick)
H)carryF crane. This facility also manufactures the BS+++ compliant &CB Ieco*3JK engine!
which is ig on fuel savings and high on performance with (C valve effort.
;ut of the two world class manufacturing facilities in Dune5 the first plant manufactures
e,ports oriented farications and components and the second plant manufactures state)of)the)
art heavy equipments like Tracked E,cavators! Wheeled @oaders H Compactors. These
facilities were inaugurated in the year 2//C and 2//A respectively.
&CB +ndia @imited! Ballagarh 0<aryana1! +ndiaFs largest manufacturer of construction
equipment is a fully owned susidiary of &C Bamford E,cavators @imited! 9:. The company
offers 2( different machines in seven product types such as Backhoe @oaders! @oading
Shovels! Tracked E,cavators! Compactors! Telehandlers! Skid Steer @oaders and Dick and
Carry Crane. 3n e,cellent network of 68 dealers and over 86/L outlets throughout the
country! along with a world)class customer service network support. &CB also runs
;perator training school with over (6/// operators trained till date.
&CB +ndia offers an e,tensive range of 2A variants in A product lines ) Backhoe @oaders!
Wheeled @oaders! E,cavators! Skid Steer loaders! Telehandlers! Compactors and Dick)H)
Carry Cranes#
%. Bac;hoe Loaders
*anufactured at the Ballahgarh plant! &CB currently offers 6 variants 02?J! .?J!
.?J Jtra! .?J Super and 8?J1
5. Excavators
+n the tracked e,cavator segment! &CB offers C types of machines 0&S./! &S >(! &S
(2/! &S(8/! &S2/6@C! &S22/@C and &S.C/1! suitale for all kind of e,cavation work
Starting from >T operating weight 0&S>(1 to .CT operating weight 0&S .C/1! the
machine serves the plant hirers! earthmoving and quarrying customer ase
Page | 12
2. Compactors
&CB offers the finest road compaction equipment through its Miroma, series 0M*
((6! M*T >C/ and M*T../1
The M*((6 caters to the soil compaction needs of the sector while the M*T >C/ is a
master at asphalt compaction
'. <heel Loaders
&CB offers . Wheel loader models 0two variants of 8./ NJ! and 8.2 NJ1
The two models of 8./NJ are ... tonne payload and the 8.2NJ is for ..C tonne
payload
(. =;id =teers
&CB +ndia offers two variants of Skid Steers 0(.6 O (661.
>. Telehandlers
&CB is the worldFs largest manufacturer of Telehandlers. +n +ndia! we have three
models 06.()A/! 6.6)(8/ and 68/)(A/1 which are widely used in construction of
multi)storyed uildings! material handling at ports and industrial purposes etc.
?. Pic;!.!Carr Cranes
Currently! there are four models ) @iftall (26.!@iftall (2/2 in the (2T category and
@iftall (66.! @iftall (668 in the (6T category
3ll &CB machines are uilt with gloal quality standards and can withstand e,treme vagaries
of climate H terrain while delivering their optimum performance.
&CB has one of the largest distriution network led y dedicated and highly committed dealer
principals. 3t present! &CB has 67 dealers and over 6A6 outlets operating in +ndia who ensure
that immediate assistance is provided in case of any downturn. ?ealerships have over 66//
employees who are trained y &CB for selling and servicing these machines.
&CB has strategically set)up large warehouses across +ndia 0Dune! Chennai! 'aridaad and
:olkata1 to cater to our large dealer ase. These warehouses provide &CB dealers with easy
access to all the parts of the machine and most importantly! radically help in reducing the
machine downtime.
Page | 13

=<@T /A/LB="=
=T)EACT#=!
Strong rand name.
Eood reputation among customers.
E,clusive access to high grand natural resources.
'avorale access to distriution network.
World-s top three manufacturers of construction equipment.
Employ A!/// people on 8 continents and sell their products in (6/ countries through (!6// dealer
depot locations.
Droduces a range of over .// machines and maintains a reputation for unrivalled customer service
Today &CB is the fastest growing company in the +ndian earthmoving and construction equipment
industry.
<E/,AE==E= )
@ack of patent protection.
<igh cost structure.
@ack of access to key distriution channels.
3n unfulfilled customer demand fast.
&CB +ndia @imited started operations in (7A7 as a "oint venture company.
+n 2//. &CB! 9: acquired (//P shares in the "oint)venture.
+n (7A7 government regulation is very high in +ndia so &CB start "oint venture.

@PP@)T+A"T"E=)
Page | 14
3rrival of new Technologies.
Remove of international trade arriers.
&CB STR3TEEQ I&CB strategy is to always deliver the est.B
E,traordinary customer satisfaction.
&CB +ndia elieves in e,traordinary customer satisfaction! as they are the principal force
guiding all &CB initiatives and endeavours.
T#)E/T= )
Shifts in consumer tastes away from the firm products.
Emergence of sustitute products.
4ew regulation.
+ncreases trade arriers.
R(%("+.! M(t!odolo'y of t!( %tudy R(%("+.! M(t!odolo'y of t!( %tudy. .
Page | 15
Research Methodology deals with( the procedure adopted to carry out the study*
,ccording to Green and +ull. F, research design is the specification of methods and
procedures acquiring the information needed It is the o#erall operational pattern or
framework of the project that stipulates which information is to 8e collected from
which sources 8y what procedures$$*
R(%("+.! D(%#'$, R(%("+.! D(%#'$,
:6ploratory or 5ormulati#e research :6ploratory or 5ormulati#e research
escripti#e research. escripti#e research.
D"t" oll(.t#o$,
In the data collection method( I ha#e collected 8oth primary and secondary data to
achie#e my o8jecti#e*
P+#)"+y d"t",
+he primary data was collected 8y way of %nstructured Guestionnaire* It was
formulated on the 8asis of information gathered 8y me with the help of Mr* Pardeep
Aansal who pro#ided useful guidelines and o8jecti#e of my study*
S(.o$d"+y d"t",
+he secondary data was collected from Companies internal sources( people from
other companies and internet*
R(%("+.! App+o".!,
+he required information in the form of data is collected with the help of Personal
Inter#iew through %nstructured Guestionnaire 5ormat*
S")pl#$' D(%#'$ o+ Pl"$
Page | 16
+his is a stage where the planning is done a8out the Population from which sample
units( sample si9e( sampling procedures( etc* are identified as per their potential to
collect data from them*
Popul"t#o$,
Population consists of the whole group or people from which sampling units( and
sample si9e are deri#ed*
In my study the Population consists of following. 4
Suppliers. /1 Celhi )CRD
5inancers. 22 Celhi )CRD
S")pl#$' u$#t%,
+his means( which are to 8e sur#eyed* So as mentioned earlier that the sample units
are potential people selected out of the large population*
S")pl( %#=(,
+he sample si9e means how many people should 8e sur#eyed* So that total sample
si9e is. 4
Suppliers. 42/
5inancers. 4<
S")pl#$' M(t!od,
I chose con#enient and judgmental sampling method for my research*
M(t!od of D"t" .oll(.t#o$,
Personal inter#iew method is used for collection of primary data in the form of
unstructured questionnaire from respondents*

I$%t+u)($t fo+ d"t" .oll(.t#o$,
Page | 17
;nce the source of data collection is decided then comes the instrument for data
collection or the research instrument* In this research method an unstructured
Guestionnaire was used*
D+"ft#$' of t!( @u(%t#o$$"#+(.
+he Guestionnaire in this research study has 8een drafted on unstructured 8asis(
8ecause the respondents who all composed of the corporate clients( was hesitant in
their approach of gi#ing the information regarding the research study* So with the
help of the unstructured questionnaire it really facilitated to get the desired data for
the study*
L#)#t"t#o$,
-ow so e#er impecca8le a thing may see to 8e there always dwell some possi8ilities
of failure and incompleteness* +he results of this study also su8ject to some of
limitations*
Ehich are as followsH
+he main limitation of the study is the nature of information to 8e collected(
which mostly is of confidential nature and on most occasions the respondents
seemed to 8e reluctant in gi#ing information regarding the same*
Some respondents were not interested in meeting*
+he Construction :quipment industry is huge in itself* +hus( conducting
research on the entire industry was not possi8le*
+he authenticity of the data o8tained from one respondent is under question*
5igures are of near appro6imate*
Page | 18
PITORIAL OVERVIE? OF OUR DIVERSIFIED BUSINESS
Corporate 5inance Group accounts for 3@B of total assets as on March 32( /11? and
Retail 5inance Group accounted for the 8alance <3B*
Retail 5inance Group$s focus on the under penetrated semi4ur8anIrural areas and
knowledge of the construction equipment 8usiness has led to a C,GR of <3B o#er the
past fi#e years in retail finance*
;ur core 8usiness is that of asset 8acked finance( co#ering a wide range of
commercial and farm assets* ,sset 8acked loans constitute ?1*=/B of our total loan
assets* Ee also pro#ide loans for meeting the working capital needs of small and
medium enterprise Cprimarily to #endors and dealers of large corporateD and loans
against capital market assets for corporate* Ee ha#e recently made a foray into Micro
5inance 8usiness further strengthening our commitment towards financial inclusion in
the rural economy* ;ur client 8ase for asset 8acked loans includes large corporate(
8anks( multinational companies( small and medium enterprises( contractors(
commercial #ehicle operators and farmers*
Page | 19
o+po+"t( F#$"$.( G+oup
+he 8usiness of this group is to pro#ide a wide range of financial products I ser#ices to
corporate* +his may e6tend from pro#iding asset 8acked finance for acquisition of a
range of equipments and also short4term working capital finance( as well as non4fund
8ased arrangements for esta8lishment of 'etters of Credits( Guarantees( etc* +he
finance may 8e pro#ided through di#erse products including term loan( operating lease(
finance lease( purchase of recei#a8les( channel financing( tie4up for pro#iding financing
to employees of the corporate*
Some of the major 8usinesses that we undertake in this category are as follows.4
L("%(%,
Op(+"t#$' L("%(, +he Company offer cars( technology( equipment and plant &
machinery on operating lease* Ee ha#e also entered into arrangements with the major
automo8ile manufacturers to ensure that the lease product is structured suita8ly* +he
target customers for the product are large companies
F#$"$.( L("%(, 5inance 'ease as a product is less attracti#e today as a result of
higher costs arising out of certain ta6 issues* -owe#er( depending on the customer$s
requirements( we offer this product for financing of cars( computers and plant &
machinery* ;ur major customers include se#eral large companies*
!"$$(l F#$"$.(,
V($do+ F#$"$.(. +his product primarily caters to the requirements of #endors I
suppliers of large corporate* Currently a su8stantial part under this product is for the
#endors of '&+ group* %nder this product( we pro#ide a short term working capital
finance facility to the #endors of '&+ and its su8sidiaries and associates* +his is mainly
in the form of discounting of in#oices raised 8y #endors I suppliers on '&+$s #arious
operating di#isions I su8sidiariesI associates* Recently( the product co#erage has 8een
e6panded to include #endors of other large corporate* +he tenor of such financing
e6tends from 2 month to < months*
D("l(+ F#$"$.(, +his di#ision focuses on dealers of #arious operating di#isions of '&+
and its su8sidiaries and associate companies* It offers short term financing with
automatic re#ol#ing credit to dealers who contri8ute su8stantially towards sale of '&+$s
finished products* Ee are preferred 8y the dealers due to our transparency( faster
Page | 20
turnaround time in sanctioning limits and dis8ursements and also easier co4ordination
with '&+* It is our plan to e6tend this facility to channel partners of other companies as
well*
R(.(#<"/l( D#%.ou$t#$',
+his refers to the discounting of recei#a8les from large corporate* It is an asset48acked
facility( where operating lease runs in the 8ack4end and the periodic rentals are
assigned to us* Ee ha#e a tie4up with large I+ equipment & ser#ice pro#iders in#ol#ed
in leasing of I+ equipments( furniture & fi6tures to large corporate* Ee ha#e the option
of choosing the agreements to 8e financed through this product* +ypically( in such
cases( the lesser assigns the rentals arising from the operating lease in our fa#our and
a suita8le confirmation from the lessee is also o8tained* ,dditionally( charge on the
asset is also created in our fa#our*
A%%(t B".&(d T(+) Lo"$,
Ee pro#ide the term loan for financing of plant & machinery( I+ equipments( furniture &
fi6tures* +he charge on the asset is created in our fa#our as security* +arget customers
for this product include large corporate as well as the SM:s ha#ing specific linkage to a
large corporate* Presently( large corporate constitute a majority of the outstanding 8ook
of asset 8acked term loans* ;ur transparent functioning and quick processing( ensures
that the customers preference for our company is maintained
"p#t"l M"+&(t P+odu.t%,
Ee continue to retain our small 8ut strategic portfolio of the 'oan against Securities
C',SD 8usiness* !ased on opportunities a#aila8le( the 8usiness selecti#ely pro#ides
finance to high net worth indi#iduals and promoters against pledge of shares and other
securities*
,s of March 32( /11?( the ',S 8usiness had a 8ook4si9e of Rs*3<(>2@ lacs and the
)P,s stand at less than 1*31B* In the current year( 8ased on the market conditions(
we shall continue to selecti#ely pro#ide finance against shares and securities and
additionally shall also consider financing of su8scription to IP;s( which is a high
yielding product
Page | 21
R(t"#l F#$"$.( G+oup
+he major 8usinesses that we undertake in this category are as follows.
o$%t+u.t#o$ EAu#p)($t F#$"$.(
Ee pro#ide financing for a wide range of equipment like ("+t!)o<#$' (Au#p)($t:
!("<y5duty .+"$(%: +o"d .o$%t+u.t#o$ (Au#p)($t: )#$#$' (Au#p)($t: (t.* Ee
ha#e( in this industry in particular( e6tensi#e knowledge and e6perience* +his
knowledge of the industry pro#ides us with a competiti#e edge 8oth in terms of
sourcing as well as assessment of 8usiness* 5urther( our understanding of the industry
and of the clients ena8les us to pro#ide our ser#ices in a manner that meets the
requirements of the client and hence helps us retain our client 8ase* T!( .o$%t+u.t#o$
(Au#p)($t #$du%t+y .o$%#%t% of " <"+#(ty of p+odu.t%: %u.! "%: !yd+"ul#.
(B."<"to+%: 9!((l lo"d(+%: lo"d(+ /".&!o(%: <#/+"to+y .o)p".to+%: .+"$(%: %to$(
.+u%!#$' )".!#$( "$d ot!(+%- T!(%( p+odu.t% "+( 9#d(ly u%(d #$ #$du%t+#(% l#&(
po9(+: $"t#o$"l !#'!9"y d(<(lop)($t: )#$#$': t+"$%po+t"t#o$ "$d ("+t!9o+&% fo+
u+/"$ #$f+"%t+u.tu+(-
Aeeping in #iew the growth potential for infrastructure in India and the parentage of
'&+( which has 8een in this sector for the last 01 years( construction equipment
finance would continue to 8e one of the major thrust areas of 8usiness*
Ee ha#e already made our presence felt in the equipment finance sector o#er last few
years* Major foreign 8anks( and pri#ate sector 8anks ha#e entered this segment in the
last few years* espite se#ere competition from 8anks and other major )!5Cs in this
segment( we ha#e e6panded our asset 8ase through our e6perience and knowledge
8ase de#eloped during the last few years* 5urther( our Company plans to e6pand its
geographic presence to some of the major markets where we ha#e limited presence
thus helping us grow our 8ook si9e and :6pand market share*
It %!ould /( $ot(d t!"t tot"l )"+&(t of ou+ .ou$t+y #% R%42222.+ "$d fo+ $o+t!
+('#o$ #t #% "pp+oB#)"t(ly R%- C222.+ D R%- 1222.+- I$ D(l!# t!( )"+&(t #% "pp+oB-
"/out R%- 30EF .+- 6?( !"<( p+o<#d(d f#$"$.( fo+ R% 04C .+o+( .o)p+#%#$' of
33G1 $o- of "%%(t% #$ y("+ 022E50232- Fo+ t!( y("+ 022H5022E 9( !"<( p+o<#d(d
f#$"$.( fo+ R%- 03C .+o+( .o)p+#%#$' of E3C $o- of "%%(t% t"&#$' $o+t! +('#o$ "%
9!ol(8-
Page | 22
+alking elhi )CR region the company has financed Rs* ?? crore in year /11?4/121
and target set for year /1214/122 is Rs* /11crore* +he portfolio mi6 strategy will 8e
@1B finance new assets and rest 31B finance to used assets or refinance*
T!( up.o)#$' p+o7(.t% "+(
aD Road Construction 5rom Gha9ia8ad to ,ligarh from Single 'ane to ou8le
'ane C>11crD
8D 5arida8ad to ,gra Si6 'ining project C<11crD
cD Aundli Gha9ia8ad road project C/<@<crD
dD PMGSJ K Road Projects in -aryana & %ttaranchal C>11crD
eD 5ormula 2 project K Gr* )oida C>11crD
fD !reakwater Project at ')G +erminal of MIs* RatnagirC3?1crD
Po+tfol#o M#B St+"t('y,
TYPE OF ASSET I o$t+#/ut#o$ to %"l(%
)ew ,sset @1B
RefinanceI%sed ,sset 31B

"t('o+y of "%%(t I o$t+#/ut#o$ to S"l(%EB")pl(%
Standard ,sset <1B :6ca#ator( !ackhoe 'oader( +ipper( Cranes(
Pilling Rigs( Pa#er ( Compactors( Graders (!oom
Pumps(o9ers(+ransit Mi6er etc*
Page | 23
)on Standard ,sset >1B Compressor( - Machines( !atching Plants(
-ot mi6 Plant( Stone Crushers(G Sets( 7etting
Machine( -ea#y utyI"intage4Imported Cranes etc*
REGION ?ISE SALES AND
GRO?TH,
YEAR /11@4/11= /11=4/11? /11?4/121
REGION
);R+- /@1/3<<<?0 /2@2=>/?0/ />1<?2<2?/
B GR;E+- 42?*<3B 21*=/B
S;%+- 00/21/@<<3 3>?==/22== 3@=/?33<12
B GR;E+- 43<*<3B =*2/B
:,S+ >/33>2@//< >21>3>@3?3 >@>=>230@=1
B GR;E+- 43*10B 210<*?/B
E:S+ 33>=?1?<0< /3/<32=>00 /10/30>3@/
B GR;E+- 431*0>B 422*@=B
NORTH REGION YEAR ?ISE SALES DISTRIBUTION PATTERN
!R,)C- /11@4/11= /11=4/11? /11?4/121

/21=@@@=< 3>@3=</>2 >?>02?@@2 R,7,S+-,)
B GR;E+- <>*@3B >/*30B
Page | 24
%++,R PR,:S- ?@@@1/@/ 2=3=?@=03 32<=?12<=
B GR;E+- ==*1?B @/*3/B
)R;/ 321>>1@@</ 2<>21?==0@ 2/1=1@3/03
B GR;E+- 4>@*2>B 4/<*3?B
OMPARATIVE STUDY OF THE OMPETITORS INTERM OF BUSINESS
VOLUME IN +- 6DELHI NR8 3
ST
@UARTER 0232
F#$"$.(+% A$$u"l /u%#$(%%
<olu)( #$ .+-
I
' & + 5inance 'td* ?? @*?1
-5C !ank 2<= 23*0<
SR:I <11 >=*>1
Aotak <@ 0*>1
+ata Cap 2<3 23*20
Citi Corp 0= >*<=
Magma => <*@@
G+"$d Tot"l 304E 211
Page | 25
T+"$%po+t"t#o$ EAu#p)($t F#$"$.(
In 2??<( we made a foray in financing of commercial #ehicles to the transporters of the
erstwhile '&+ Cement* -owe#er( this segment was not the main focus since there
were already esta8lished players in the market* Ee had already 8uilt a network for its
construction equipment and farm equipment segments* In order to le#erage on their
network and get into another important sector of the economy(
C" 5inance was launched in 5J /11>410* +he slowdown in the economy in the second
half of 5J /11=41? had resulted in lower dis8ursements( 8ut with the relati#e reco#ery
in the economy this 8usiness is growing again*
+he C" market in India comprises of four segments namely.
-ea#y commercial #ehicles CGross #ehicles weight /0/11 to >1111D*
Medium commercial #ehicles CGross #ehicles weight 2</11D
Intermediary commercial #ehicle CGross #ehicles weight 22@11422=11D
'ight commercial #ehicles CGross #ehicles weight >111D
Small commercial #ehicles
+he Company is present in all the segments and is in#ol#ed in financing commercial
#ehicles of all makes* Ee also undertake funding of the 8ody of the C" on a selecti#e
8asis* Major manufacturers with whom we ha#e a tie4up include +ata Motors( ,shok
'eyland( "ol#o( :icher Motors( 5orce Motors and M&M*
,s on March 32( /11?( ?0B of our commercial #ehicles portfolio comprised of new
#ehicles* -owe#er( we plan to finance more num8er of pre4owned #ehicles in the near
future in order to ha#e a well 8alanced portfolio with right mi6 of first time users( retail
customers( fleet owners and used #ehicles* Ee are adding manpower and setting up
infrastructure across the country( so that #olumes are ramped up and the market is
Page | 26
di#ersified* ;ur #ision is to emerge as a leading player in this industry( while at the
same time maintaining good portfolio quality
I$ t!( y("+ 022H5022E 9( !"<( f#$"$.(d R%- E4 .+o+( .o)p+#%#$' of E3C $o- of
<(!#.l(% #$ t!( $o+t! +('#o$-
I$ y("+ 022E50232 9( !"<( f#$"$.(d R%-312 .+o+(- o)p+#%#$' of 34EG $o- of
<(!#.l(% #$ t!( $o+t! +('#o$-
NORTH REGION YEAR ?ISE SALES DISTRIBUTION PATTERN
YEAR /11@4/11= /11=4/11? /11?4/121
BRANH
C-,)IG,R- @0</1?=0 3>11<011 >3?1111
B GR;E+- 400*13B 4=@*1?B
-,RJ,), @@?>111 >>>21111 @132>?=@
B GR;E+- ><?*=1B 0=*33B
-IM,C-,' PR,:S- 0?<=1111 <3>3>111 23033@111
B GR;E+- <*/?B 223*30B
P%)7,! 0<>12>10 03<3??2/ 2>0@></<@
B GR;E+- 4>*?1B 2@2*@2B
:'-I >=@2?0332 >2020=2>? >>/=?=1?/
B GR;E+- 42>*@?B <*<=B
R,7,S+-,) />11@303< />201>2=3 >12?2<?21
B GR;E+- 1*<1B <<*>/B
%++,R PR,:S- =0=30=11 21>30<3// 312>0>111
B GR;E+- /2*0=B 2==*=@B
Page | 27
REGION ?ISE SALES AND
GRO?TH,
/11@4/11= /11=4/11? /11?4/121
);R+-
212/<1210
@
30>1?2<=>
?
201/10@/0
<
B GR;E+- />?*<?B 40@*0=B
S;%+-
2/<>/3/>1
? ?0?3@>?2@
23>?<=2?1
@
B GR;E+- 4/>*22B >1*<=B
:,S+ >=3?1=30@ =@031<@>2
2?30=?<>2
0
B GR;E+- =1*==B 2/2*2@B
E:S+
2/2013?0@
3 @>?@/<2/>
2@/=/1<22
2
B GR;E+- 43=*31B 231*02B
OMPETITORS ANALYSIS 6LOATION DELHI ONLY8
Page | 28
FINANERS MARKET SIJE IN LAS I SHARE
-5C 01>11 2?*<3
+,+, 33<11 23*1?
A;+,A 2=111 @*12
ICICI >0<11 2@*@<
'+5 0211 2*??
M,GM, />111 ?*30
S%),R,M /1111 @*@?
;+-:RS /1111 /3*3@
Ru+"l F#$"$.(
+he Go#ernment of India has classified farm mechani9ation amongst its priorities* +o
e6ploit this opportunity( the rural finance group was launched with its focus on
redisco#ering the rural potential*
Ee started financing farm equipment from /11>( under the name of Aisan Gaura#L
retail finance scheme* +he scheme was well recei#ed in the market 8y dealers and
retail customers on account of competiti#e terms( tailors made schemes and quick
processing* Eith more feeder roads 8eing de#eloped in rural areas under Prime
Minister$s Gram Sadak Jojna( new 8usiness opportunities ha#e opened up in this
segment*
+he FAIS,) G,%R," retail finance scheme does not operate in :'-I*
Ee ha#e identified this segment as a focus area and launched the Aisan !andhuM
scheme in /11= targeting customers who are rural entrepreneurs in need of finance for
acquisition of small si9ed transport #ehicles* Such as M,-I)R, M,NI PIC %PS(
+,+, ,C: etc* +hese are > wheeler cars* +hese #ehicles pro#ide the last mile
connecti#ity to the #illages and are a 8ack8one for rural transportation infrastructure*
Ee ha#e made a foray in financing the dealers of 5arm :quipment as well as the small
si9ed transport #ehicles in accordance with our strategy of increasing rural penetration*
+he financing is 8eing done under a scheme named
KT+".F#$LM- +his market has a high potential with a large customer 8ase( since their
access to other means of finance is limited and if a#aila8le( is at onerous cost and
terms* Ee plan to e6plore this market with our %SP of transparency in credit appraisal(
pricing and documentation* Going forward( we want to identify oursel#es as a game
Page | 29
changer in the rural segment* +his initiati#e shall also contri8ute towards achie#ing the
Go#ernment$s o8jecti#e of financial inclusion*
In elhi region this 8usiness is only nine and a half month old* Ee ha#e financed
appro6imately Rs*@*@0 cr*
Comprising of
M,-I)R,. /@1 );* ;5 ":C-I':S
!,7,7 . ?1 );* ;5 ":C-I':S
M,R%+I . =1 );* ;5 ":C-I':S
+,+, M;+;RS. 014<1 );* ;5 ":C-I':S
-owe#er in total north region we ha#e done 8usiness of Rs* 22/cr* In the year /11?4
/121 comprising of 22@0 no* of #ehicles$*
NORTH REGION SALES AND GRO?TH PATTERN
BRANH /11@4/11= /11=4/11? /11?4/121
C-,)IG,R- /12>1/>?/ 3=1>3011 1
-,RJ,), 20<00111 2>/?21011 2@?>=?111
C-,)IG,R- ,) -,RJ,), /2@10@>?/ 2=1?0>111 2@?>=?111
I GRO?TH 42<*<3B 41*=2B
P%)7,! @121111 2@31033>= /=/<3/011
I GRO?TH /3<=*<<B <3*3/B
:'-I 1 1 =3?0>1<1
I GRO?TH 4 4
R,7,S+-,) <1<<@?11 23/03=111 32=1@3111
I GRO?TH 22=*><B 23?*??B
%++,R PR,:S- <?11<111 2<01<>011 /2?/<@111
I GRO?TH 23?*/1B 3/*=>B
Page | 30
ALL REGIONS /11@4/11= /11=4/11? /11?4/121
);R+- 30001<3?/ <02<1?=>= 21=3>200<1
B GR;E+- =3*/?B <<*/@B
S;%+- 20200/<>01 //<@2?2>0/ /=>0>?>320
B GR;E+- >?*<1B /0*02B
:,S+ 2>31>0=/1 /<@>??011 01<??2011
B GR;E+- =@*11B =?*03B
E:S+ 2/3>=</=?= 2?1?/2@<?? 3/=/3<0>@?
B GR;E+- 0>*<2B @2*?/B
D#%t+#/ut#o$
Ee recently commenced our insurance distri8ution 8usiness for 8oth life and non4life
insurance products* In addition to the insurance distri8ution 8usiness( we are also in
the 8usiness of distri8uting mutual fund products and plans to pursue this 8usiness
further as a focus area for growth and profita8ility* istri8ution of third party products
presents a significant 8usiness opportunity( and is a logical e6tension to our current
product range as it facilitates le#eraging the e6isting retail customer 8ase and widens
the range of ser#ice offerings to customers*
M#.+o F#$"$.(
+his segment is integral to our aim of achie#ing financial inclusion in a commercially
#ia8le manner* Ee commenced operations in this 8usiness in late /11=* +his 8usiness
is spread o#er four states( namely( ,ndhra Pradesh( +amil )adu( Maharashtra( Eest
!engal( ;rissa( Gujarat and Aarnataka* Ee follow the model of direct lending through
joint lia8ility groups* Ee currently ha#e a client 8ase of around 0 lakhs customers which
we are looking to e6pand in this segment
Micro 5inance Products offered 8y our Company are categori9ed into K
O Gram !andhuM K Micro 'oans to joint lia8ility groups of >4< indi#iduals ranging from
Rs*0(111I4 to Rs*01( 111I4P and
Page | 31
O %dyog !andhuM K Small 'oans to rural 8usinesses ranging from Rs*01(111I4 to
Rs*/(11(111I4
o$%t+u.t#o$ (Au#p)($t #$du%t+y, 5
+,!':.2 +he industry has a wide product range. 4
E"+t!
Mo<#$'
EAu#p)($t%
o$.+(t(
EAu#p)($t%
M"t(+#"l
H"$dl#$'
EAu#p)($
t
M"t(+#"l
P+(p"+"t#o$
R"od
.o$%t+.ut#o$
(Au#p)($t
o$%t+u.t#o$
V(!#.l(%
Tu$$(ll#$'
"$d
D+#ll#$'
!ackhoe
'oaders
Concrete
!reaker
+elescopic Crushing Compaction
:quip
umpers RotaryI+-
rilling
:6ca#ators Pa#er
5inisher
Crawler
Cranes
7aw
Crushers
"i8ratory
Rollers
,rticulated
-aulers
-ammer
+rack
rilling
'aoders Concrete
!atching
Plants
Mo8ile
Cranes
Pa#ers
!ulldo9ers Concrete
Pumps
+ruck
Cranes
Eheeled
'oading
Concrete
Pumps
5orklifts
Sho#els -otMi6
Plants
Pick and
carry
cranes
Page | 32
Eheel
'aoders
+owers
cranes
Motor
Graders
Con#eyers
ump
+rucks
F#'u+( 3,5 o$%t+u.t#o$ EAu#p)($t #$du%t+y St+u.tu+(-
-owe#er ( , few segments domiante the industry in si9e and "olumes*
EARTH MOVING E@UIPMENTS constitute the 8iggest segment and e6ca#ators the
largest product line with in the segment*
Page | 33
F#'u+( 0,5 E"+t! )o<#$' EAu#p)($t %(')($t-
:N,C",+;RS constitute a large proportion of the earth mo#ing equipment*
Study of o$%t+u.t#o$ EAu#p)($t #$ D(t"#l
2* B".&!o( lo"d(+
!ackhoe loader( also called a loader 8ackhoe( and commonly shortened to 8ackhoe(
is an engineering #ehicle( which consists of a tractor( fitted with a sho#elI8ucket on
the front and a small 8ackhoe on the 8ack* ue to its Crelati#elyD small si9e and
#ersatility( 8ackhoe loaders are #ery common in ur8an engineering and small
construction projects Csuch as 8uilding a small house( fi6ing city roads etcD*
+he 8ackhoe loader was in#ented in the %A in 2?03 8y 7oseph Cyril !amford(
founder of 7* C* !amford C7C!D( 8y equipping a farm tractor with 8oth a 8ackhoe and
a front4mounted loading 8ucket* ,lthough 8ased on a tractor( when 8oth the loader
and the 8ackhoe are permanently attached the #ehicle is almost ne#er called a
tractor*

,sset cost. 42? 'akhs
Page | 34
Specifications of !ackhoe 'oader are. 4
'oader capacity. 2*1 Cu*M*
!ackhoe !ucket. 1*/> Cu*M*
+op Speed. 3/ Amph
;perating weight. @201 Ags*
!ackhoe loaders are #ery common and can 8e used for a wide #ariety of tasks.
construction( small demolitions( light transportation of 8uilding materials( powering
8uilding equipment( digging holesIe6ca#ating( landscaping( 8reaking asphalt( and
pa#ing roads* +he 8ackhoe 8ucket can also 8e replaced with powered attachments
such as a 8reaker( grapple( auger( or a stump grinder* :nhanced articulation of
attachments can 8e achie#ed with intermediate attachments such as the tilt rotator*
Many 8ackhoes feature quick4attach mounting systems and au6iliary hydraulic
circuits for simplified attachment mounting( dramatically increasing the machineQs
utili9ation on the jo8 site* Some loader 8uckets ha#e a retracta8le 8ottom or
RclamshellR( ena8ling it to empty its load more quickly and efficiently* +heir relati#ely
small frame and precise control make 8ackhoe4loaders #ery useful and common in
ur8an engineering projects such as construction and repairs in areas too small for
larger equipment* +heir #ersatility and compact si9e makes them one of the most
popular ur8an construction #ehicles* 5or larger projects( a tracked e6ca#ator is
generally used*
In recent years( small compact tractors from manufacturers such as Au8ota ha#e
8ecome #ery popular with pri#ate homeowners* Su8compact tractors( the si9e
8etween a compact tractor and lawn tractor( are also often sold in 8ackhoe loader
setup( sometimes with a 8elly4mounted mowing deck also included* +hese tractors
offer pri#ate homeowners the a8ility to perform minor e6ca#ation projects*
Suppl#(+%, 5
2* ,C: C,ction Construction :quipmentD
/* 7C! C7oseph Cyril !amfordD
3* '&+ case C7oint #enture 8Iw '&+ and Case CorporationD
>* Caterpillar
Page | 35
/* Lo"d(+
,sset Cost. 4 31 'akhs
, loader is an engineering #ehicle Coften used in constructionD that is primarily used
to RloadR material Casphalt( demolition de8ris( dirt( feed( gra#el( logs( raw minerals(
recycled material( rock( sand( wood chips( etc*D into or onto another type of
machinery Cdump truck( con#eyor 8elt( feed4hopper( rail4car( etc*D
, loader Calso known as. 8ucket loader( front loader( front end loader( payloader(
scoop loader( sho#el( skip loader( andIor wheel loaderD is a type of tractor( usually
wheeled( sometimes on tracks( that has a front mounted square wide 8ucket
connected to the end of two 8ooms CarmsD to scoop up loose material from the
ground( such as dirt( sand or gra#el( and mo#e it from one place to another without
Page | 36
pushing the material across the ground* , loader is commonly used to mo#e a
stockpiled material from ground le#el and deposit it into an awaiting dump truck or
into an open trench e6ca#ation*
Suppl#(+%, 5
/* 7C!C7oseph Cyril !amfordD
3* +,+, C-I+,C-ID
>* '&+ case C7oint #enture 8Iw '&+ and Case corporationD
0* Caterpillar
3* EB."<"to+
,n e6ca#ator Calso called a diggerD is an engineering #ehicle consisting of an
articulated arm C8oom( stickD( 8ucket and ca8 mounted on a pi#ot Ca rotating platform(
like a 'a9y SusanD atop an undercarriage with tracks or wheels* +heir design is a
natural progression from the steam sho#el*
,sset Cost. 4 >0 'akhs
:6ca#ators are used in many ways.
igging of trenches( holes( foundations
Material handling
Page | 37
!rush cutting with hydraulic attachments
emolition
General gradingIlandscaping
-ea#y lift( e*g* lifting and placing of pipes
Mining( especially( 8ut not only open4pit mining
Ri#er dredging
ri#ing piles( in conjunction with a Pile ri#er
:6ca#ators are also called diggers and 3<14degree e6ca#ators( sometimes
a88re#iated simply to a 3<1* +racked e6ca#ators are sometimes called trackhoes 8y
analogy to the 8ackhoe* :#en though the Q8ackQ in 8ackhoe refers to the action of the
8ucket Cwhich pulls R8ackR toward the machineD and not the location of the sho#el(
e6ca#ators are also occasionally referred to as front hoes or e#en just RhoesR* In
)orth ,merica( digging e6ca#ators are sometimes referred to as Rhi4hoesR and often
simply as Rsho#elsR*
Suppl#(+%, 4
1. 7C! C*o%(p! y+#l B")fo+d8
/* +,+, C-I+,C-ID
3* '&+ Aomatsu
>* Caterpillar
0* Ao8elco
>* T#pp(+
-J", +IPP:RS
Aeeping in #iew the growing need of 5ully !uilt Solution for country$s leading +ruck
Manufacturers( -J", started its +ipper !uilding ,cti#ity in India in 2??= for Swedish
+ruck Giant "ol#o and soon company got the recognition as a Guality Sensiti#e
Supplier capa8le of deli#ering endura8le products in tough mining segment*
tipper truck 4 truck whose contents can 8e emptied without handlingP the front end of
the platform can 8e pneumatically raised so that the load is discharged 8y gra#ity
dump truck( dumper( tip truck( tipper lorry( tipper
Page | 38
motor truck( truck 4 an automoti#e #ehicle suita8le for hauling
,sset Cost. 42? 'akhs
Suppliers. 4
+,+, and -y#a
0* Roll(+
+,):M +JP: -JR;S+,+IC R;, R;'':RS CA+R4=D* ,sset Cost. 4/3 'akhs
escription .
!RI:5 SP:CI5IC,+I;)S & S,'I:)+ 5:,+%R:S
Page | 39
Single le#er operation
-ydrostatic ri#e with two speeds
-ydrostatic Power steering
-ydrostatic 8rake system
!uilt with modern technology
Most economical
:asy maintenance
'ow operating cost
Suita8le for specific requirement
:asy working on any hilly area
Co#ering more rolling area in minimum time
5eatures.
A+R series hydrostatic +andem Road Rollers are designed and manufactured with
ad#anced modern technology incorporating mechanical and hydraulic mechanism*
A+R +andem Road Rollers comply with all specifications as per international
standard* :#ery part of the roller is precision machined on highly sophisticated
modern machines to o8tain ma6imum accuracy and it passes through certain quality
control steps in order to ensure 8est quality* It e6cellently works with minimum
operating and maintenance cost* It helps achie#ing superior and perfect road
compaction( ma6imi9ing profit of the owner*
Suppl#(+%, 5
2* +,+, C-I+,C-ID
/* '&+ case C7oint #enture 8Iw '&+ and Case CorporationD
<* T+"$%#t M#B(+
,sset Cost. 4/= 'akhs
Page | 40
,8out +ransit Mi6er. 4
O
:6cellent quality of materials and components gi#es long
life with less economy*
O
+he design of de#ices allow concrete consistently with
high speed*
O Constant discharges of concrete*
O -igh mi6ing capacity and ma6imum discharge output
thanks to the optimal position of the spiral 8lades in the
drum*
O -arden rollers increase the relia8ility of the performance*
Co#er pro#ides safety and protection against dirt*
O 5ully imported oil 8ath planetary gear system is pro#en
when tra#eling in rough terrain with full power of the
engine required*
O +he drum and spirals are made of highly wear resistant
steel so that it increases sta8ility and reduces the wear
out*
O More :conomic in transporting concrete thanks to
M,C;)$s larger #olume of drum with more water line
capacity*
O 5ully Imported -ydraulic Pump( Motor and ;il Cooler*
O :fficient and relia8le after sale4ser#ice( round the clock*
Suppl#(+%, 5
Schwing and Grea#es
@* G+"d(+%
,sset Cost. 4 << 'akhs
Page | 41
, grader( also commonly referred to as a road grader( a 8lade( a maintainer( or a
motor grader( is an engineering #ehicle with a long 8lade used to create a flat
surface* +ypical models ha#e three a6les( with the engine and ca8 situated a8o#e the
rear a6les at one end of the #ehicle and a third a6le at the front end of the #ehicle(
with the 8lade in 8etween* Some hard hats refer to this machine as Rthe 8ladeR*
In ci#il engineering( the graderQs purpose is to Rfinish gradeR Crefine( set preciselyD the
Rrough gradingR performed 8y hea#y equipment or engineering #ehicles such as
scrapers and 8ulldo9ers*
Graders can produce inclined surfaces and surfaces with cam8ered cross4sections
for roads* In some countries they are used to produce drainage ditches with shallow
"4shaped cross4sections on either side of highways*
Graders are commonly used in the construction and maintenance of dirt roads and
gra#el roads* In the construction of pa#ed roads they are used to prepare the 8ase
course to create a wide flat surface for the asphalt to 8e placed on* Graders are also
used to set nati#e soil foundation pads to finish grade prior to the construction of
large 8uildings*
Suppl#(+%, 5
2* '&+ Aomatsu
/* "ol#o
=* +"$(
, crane is a lifting machine( generally equipped with a winder Calso called a wire rope
drumD( wire ropes or chains and shea#es that can 8e used 8oth to lift and lower
materials and to mo#e them hori9ontally* It uses one or more simple machines to
create mechanical ad#antage and thus mo#e loads 8eyond the normal capa8ility of a
human* Cranes are commonly employed in the transport industry for the loading and
unloading of freight( in the construction industry for the mo#ement of materials and in
the manufacturing industry for the assem8ling of hea#y equipment*
Mainly used cranes are tower cranes and hydro cranes*
,sset cost #aries from 21 lakhs to /*0 crores Cas per the capacity and specificationsD
Page | 42
Suppl#(+%,5
/* +,+, C-I+,C-ID
3* :scorts

?* B"t.!#$' Pl"$t
Page | 43
,sset Cost. 4 /= 'akhs
!,+C-I)G when 8agged cement is used( the field mi6 proportions are
usually gi#en in terms of designated amounts of fine and coarse aggregate per 8ag
Cor per ?> poundsD of cement* +he amount of material that is mi6ed at a time is called
a 8atch* +he si9e of a 8atch is usualS designated 8y the num8er of 8ags of cement it
contains( such as a four48ag 8atch( a si648ag 8atch( and so forth* +he process of
weighing out or measuring out the ingredients for a 8atch of concrete is called
8atching* Ehen mi6ing is to 8e done 8y hand( the si9e of the 8atch depends
upon the num8er of persons a#aila8le to turn it with hand tools* Ehen mi6ing is to 8e
done 8y machine( the si9e of the 8atch depends upon the rated capacity of
the mi6er* +he rated capacity of a mi6er is gi#en in terms of cu8ic feet of
mi6ed concrete( not of dry ingredients* ;n large jo8s( the aggregate is weighed
out in an aggregate 8atching plant Cusually shortened to F8atch plantD( like
the one shown in figure a8o#e* Ehene#er possi8le( a 8atch plant is located near
to and used in conjunction with a crushing and screening plant* In a crushing
and screening*+he 8atch plant( which is usually porta8le and can 8e taken apart
and mo#ed from site to site( is generally set up adjacent to the pile of screened
aggregate*
Suppliers. 4 Grea#es( Schwing Stteter
21* Boo) pl".(+
Page | 44
,sset Cost. 4 2*/ crores
Placing concrete in position without causing its segregation and also in proper layers
to allow their compaction without causing any cold joints in it( is essential for
producing a strong and dura8le structure* +o achie#e this( our placement
arrangements must pour concrete at such a rate that the ne6t layer of concrete gets
laid 8efore the last layer gets fully set and in this way( a monolithic structure is
created* ,lso( the concrete should arri#e either at or nearest to the pouring point* In
general( concrete is transported to the deck or pouring le#el 8y a tower crane or
winch4 dri#en 8uckets( or through manual la8or* +hereafter( it is further carried to
pouring point 8y rail trolleys or wheel trolleys or in pans carried 8y la8our* ;ften(
some #ital factors get o#erlooked during this procedure* Ideal conditions would 8e to
ha#e equipment that pours concrete directly at the pouring pointP concrete pumps are
e6actly the equipment to con#ert this desire into reality*
P%MP C;MP;):)+S
Main frame4with a6les and tyres or truck chassis*
-ydraulic pump*
ieselI electric motor4truck engine dri#en or separate engine*
Concrete pump kit*
Control 8lock*
-ydraulic tank
-opper and agitator*
Placer 8oom and Remote control CoptionalD
Suppl#(+%,5
Sanyo
Page | 45
22* P#l#$' +#'
,sset cost. 4/*0 Crore
, drilling rig is a machine which creates holes Cusually called 8oreholesD andIor
shafts in the ground* rilling rigs can 8e massi#e structures housing equipment used
to drill water wells( oil wells( or natural gas e6traction wells or they can 8e small
enough to 8e mo#ed manually 8y one person*Tcitation neededS +hey sample su84
surface mineral deposits( test rock( soil and groundwater physical properties( and
also can 8e used to install su84surface fa8rications( such as underground utilities(
instrumentation( tunnels or wells* rilling rigs can 8e mo8ile equipment mounted on
trucks( tracks or trailers( or more permanent land or marine48ased structures Csuch
as oil platforms( commonly called Qoffshore oil rigsQ e#en if they donQt contain a drilling
rigD* +he term RrigR therefore generally refers to the comple6 of equipment that is
used to penetrate the surface of the earthQs crust*
rilling rigs can 8e small and porta8le( such as those used in mineral e6ploration
drilling( water wells and en#ironmental in#estigations* -uge( capa8le of drilling
through thousands of meters of the :arthQs crust* 'arge Rmud pumpsR circulate
drilling mud CslurryD through the drill 8it and up the casing annulus( for cooling and
remo#ing the RcuttingsR while a well is drilled* -oists in the rig can lift hundreds of
tons of pipe* ;ther equipment can force acid or sand into reser#oirs to facilitate
e6traction of the oil or natural gasP and in remote locations there can 8e permanent
li#ing accommodation and catering for crews Cwhich may 8e more than a hundredD*
Marine rigs may operate many hundreds of miles or kilometers distant from the
supply 8ase with infrequent crew rotation*
Suppl#(+%, 5
Page | 46
Soil make
G+o9t! #$ #$du%t+y #% (Bp(.t(d to /( d+#<($ /y 4 &(y d+#<(+%, 5
FIGURE54
Page | 47
Infrastructure
Investments
Indian Construction
!ui"ment Industr#
$ro%t&
merging $ro%t&
'reas
(easing)*enta+s
,"orts
*efur-is&ing used e!ui"ments
.ervices
Industria+
"roduction)ca"
acit#
e,"ansion -#
manufactures
./e% 0aci+ities
.1" gradation of e,isting
faci+ities23emand for
materia+ &and+ing
!ui"ment
.Investment in roads4
"orts4"o%er4etc.
.5ousing and rea+ estate
construction
)ew areas are emerging( that present good growth potential for the
future.
ONSTRUTION E@UIPMENT
R($t"l%
O Currently( equipment rentals contri8ute to just a8out /B of the market
O +his is e6pected to grow to a8out /0B 8y /121
L("%#$'
O :quipment leasing e6pected to grow from a8out /B to around =B 8y /121
5inancing and end4to4end ser#ices
O Some of the large players are looking at pro#iding end4to4end ser#ices to the users
throughout
the equipment lifecycle K financing( user training( maintenance and 8uy48ack of used
equipment
EBpo+t%
O Ee estimate I)R3>( 3=0 8illion CU%S=<1 8illionD worth of construction opportunity
in India for the ne6t fi#e years( representing a C,GR of /1B #ersus a C,GR of 2>B
for the past fi#e years*
T!( %(.to+ #% .o)p(t#t#<( to %(( #$.+("%(d #$<(%t)($t f+o) 'lo/"l
pl"y(+% #$ o$%t+u.t#o$ EAu#p)($t
Page | 48
Po+t(+% F#<( Fo+.( o)p(t#t#<( Mod(l
T!+("t of N(9 E$t+"$t%
O 5ragmented market( dominated 8y a few large players
O -igh potential growth
O )ew players will need the right technology and product*
Suppl#(+ Po9(+
O Import of some critical components
O "olatility of steel prices impacting production costs
O Inadequate supplier 8ase to meet demand
o)p(t#t#<( R#<"l+y
O Price & Ser#ice are the differentiators
O 'ack in sharp differentiation leading to Competition in price*
u%to)(+ Po9(+
O Strong increase in demand
O Price sensiti#e market
O Customers need to 8e trained in technology( equipment usage
T!+("t of Su/%t#tut(%
O Complete su8stitution may not happen in near future
O Product replacement or enhancement is possi8le
Page | 49
I$du%t+y pl"y(+% 9ould $((d to "dd+(%% t!( follo9#$' &(y %u..(%%
f".to+%, 5
2* Po%t5S"l(% Suppo+t
O Ser#ice and +raining Infrastructure
O Maintenance
O Spare Parts & istri8ution )etwork
/* R&D "$d I$$o<"t#o$
O ,ppropriate technology and pricing
O Product customisation
O Product relia8ility and ease of use :nd4+o4:nd Ser#ices
O :quipment selection
O 5inancingIleasingIrental
O Maintenance and training
O Repair and refur8ishing
Page | 50
Suppl#(+% Study
2* A.t#o$ o$%t+u.t#o$ EAu#p)($t Ltd- 6AE8
2* Company Profile. 4
,C:( ,ction Construction :quipment 'imited is the leading mo8ile crane
manufacturing company in India which has progressed all along to 8ecome a
professionally managed IS; ?;;I Certified company* ,C: is promoted 8y a
technocrat( assisted 8y a team of e6perienced managers and engineers* ,C:
equipment is 8eing successfully used in many industrial sectors like infrastructure(
construction( roads( engineering industry( coal mines( chemical and fertili9er plants(
power stations( ports( hea#y project engineering industry( railways( cement industry(
oil industry( defense etc* to name a few* ,C: range of cranes can 8e adapted to
satisfy a #ast range of possi8le applications due to their #ersatility*
5ollowing are the highlights of ,C:. 4
+he pu8lic limited company has a turno#er of %SV 3<*3 million for 1=41?*
Its product range includes hydraulic mo8ile pick4n4mo#e cranes( forklift trucks(
loaders( tower cranes( aerial work platforms( lifts( lorry loadersItruck mounted
cranes( etc*
It has a >2B share in Pick & Carry cranes segment
It has facilities installed in 5arida8ad in -aryana
+here are = ,C: offices and 33 dealer locations
+he turno#er of the company has grown at a appro6imately ?<B in the last >
years* +he company has plans of di#ersifying its product portfolio to Include
truck mounted cranes( forklifts and 8ackhoes*
/* eals in Machinery. 4
2
st
4 -ydraulic mo8ile crane
/
nd
4fork lift
Page | 51
3
rd
4+ower crane
>
th
K !ack hoe loaders
0
th
K tractors
3* Customers. 4
Some of our Pri#ate Clients
Reliance Industries 'td*( Mum8ai
Punj 'loyd 'imited( )ew elhi
,CC 'imited( CM*P*D
Cimmco !irla 'imited
Some of our Go#ernment Clients
Eestern Coalfields 'td*( )agpur
Central Coalfields 'td*( Ranchi
South :astern Coalfields 'td*( !ilaspur
)orthern Coalfields 'td*( Singrauli
S*C*C*'*( Aothagudem Colleries
>* +urno#er. 4
+urno#er is around 311 crores( 1=41? and @0 crores 2
st
quarter 1?421* Celhi )CRD
0* Performance of the company in Growth and Recession Period. 4
Sold around 011 machines per month in growth period( all India
)ow sells around /01 machines per month in recession period( all India
Sale has fallen down to 01B*
+he market is on the #erge of impro#ement and the num8ers are e6pected to rise
considera8ly*
Page | 52
/* T(l.o$ o$%t+u.t#o$ EAu#p)($t o)p"$y Ltd- 6T(l.o$8
+elco Construction :quipment Company C+elcoD is IndiaQs leading pro#ider of
equipment and ser#ices in the construction and earth4mo#ing industries* Set up in
2?<2 as a di#ision of +ata Motors( it is now a <1.>1 joint #enture 8etween +ata
Motors and -itachi Construction Machinery Co of 7apan*
,part from supplying to the Indian market( +elco also e6ports construction equipment
to ,frican( ,sian and Middle :astern countries*
,reas of 8usiness. 4
+elco supplies a wide range of construction equipment( including hydraulic
e6ca#ators( mining sho#els( dumpers( 8ackhoe loaders( wheel loaders( #i8ratory
compactors( motor graders( crawler cranes( asphalt plants and multi4utility loaders*
+he company also offers a wide range of #alue4added ser#ices*
7oint #entures( su8sidiaries( associates. 4
+elco :co Road Resurfaces Ca joint #enture with I"RC'( India( and -itachi
and Green ,rm( 7apanD
-itachi Construction( 7apan Chydraulic e6ca#ators and cranesD
7ohn eere( %S, C8ackhoe loadersD
'e8rero( Spain CcompactorsD
C:S,)( +urkey Casphalt plantsD
-itachi +ruck Manufacturing( %S, CdumpersD
+adano( 7apan Ctyre4mounted cranesD
-itachi4Sumitomo( 7apan Ccrawler cranesD
!erco CundercarriagesD
'ocation. 4
Page | 53
!ased in !angalore( the company has manufacturing plants in 7amshedpur and
harwad( with a third one coming up in Aharagpur Call locations in IndiaD* It has a
sales and ser#ice customer network of o#er 211 offices across India*
5ollowing are the highlights of +:'C;. 4
O +he company is a market leader in e6ca#ators*
O It has colla8orations with -itachi Construction Machinery Company( 7apan( for
hydraulic e6ca#ators and cranesP 7ohn eere( %S,( for 8ackhoe loader technologyP
C:S,)( +urkey( for asphalt plants
O It is a su8sidiary of +ata Motors and has a turno#er of %SV /=3 million
O Its major products are e6ca#ators( loaders( mechanical sho#els( high tonnage
crawler cranes( etc* It has a 01B market share in the e6ca#ator segment and an
o#erall market share in the construction equipment segment of 22B
O +ata group of companies( go#ernment enterprises( and contractors are its major
customers* It has facilities installed at 7amshedpur in 7harkhand and harwad in
Aarnataka
O Its marketing network spans across 31 Indian states and 3 international locations*
Customers Customers Customers
Mining ConstructionCInfrastructureD Roads
PC >01( :N>01 and PC
2111( :62/11
!ackhoe loaders( '&+ case (
ace( jc8( +ere6D
Pa#ers( graders(
compactors( 8atching
Plants*
CI'( S,I'( +ISC; Eheeled loaderC--( +,+,(
7C!D
Small si9e e6ca#atorsC PC
@2( :N@1( PC 231( :N 221(
PC 231( :6/11D
Gi#en to contractors*
21 years on 31th March( /11?
Page | 54
3* Customers. 4
+elcon customers4
- MRC C)C P%)7 '';J
,5C;)S -C'*
>* +urno#er. 4
+otal turno#er in 1=41? is /@1 crores* Celhi4)CR( %ttaranchal( -aryana( western
%PD
+he total sales of the company ha#e faced a downfall of 01 to <1B*
Porter$s fi#e forces model to understand the position of the market*
Page | 55
3* E%.o+t% LTD
:scorts manufacturers and markets a di#erse range of construction and material
handling equipment like cranes( loaders( #i8ratory rollers and forklifts* +he company
was a pioneer in introducing the concept of Pick QnQ Carry hydraulic mo8ile cranes in
the @1s in India and continues to 8e the worldQs largest manufacturer of these cranes*
, nationwide network of 2< Sales ;ffices( 01 dealership locations( o#er 311
company trained dealers$ ser#ice engineers( gi#es it the 8est market reach in India
for the Sales & Ser#ice of material handling and construction equipment*
Eith o#er 31 years e6perience in Construction :quipment Industry( :scorts has a
pro#en track record in.
-ydraulic Mo8ile Cranes
'oaders
5orklifts
"i8ratory Compactors
+oday( it not only continues to 8e the largest mo8ile crane manufacturer in the
country( 8ut also the largest Pick Wn$ Carry -ydraulic Mo8ile Crane manufacturer in
the world*
Ehile recording a rapid growth in Crane Industry we$#e also 8een a8le to steadily
increase our presence in the field of "i8ratory( Soil & +andem Compactors* :scorts
was the first to 8ring the concept of "i8ratory Compactors in India in a 8ig way( 8ack
in =1$s* Su8sequently more models in +andem "i8ratory Compactors and hea#y duty
Soil Compactor range were added in technical colla8oration with -,MM Germany*
Recently( we$#e further strengthened the range with a 3+ Shoulder Compactor*
+oday our range of compaction equipments is one of the most preferred in the
market( and is 8eing #iewed as the most efficient and effecti#e compaction solutions
a#aila8le in the country*
5ollowing are the highlights of :C:'. 4
Page | 56
O It is a pioneer manufacturer of Pick & Carry cranes
O +he company is a su8sidiary of :scorts 'imited* It has a turno#er of %SV <2 million
O It holds a 0<B market share in the domestic pick and carry market
O It has facilities installed in 5arida8ad( -aryana
O Its products include pick and carry cranes( slew cranes( articulated 8oom cranes(
tower cranes( forklift trucks( front end loaders( #i8ratory soil compactors( tandem
#i8ratory rollers( etc*
O It has 2< 8usiness centres and 0> dealer locations*
-as around 30 outlets which sells all o#er the country*
2* Cranes. 4
Mostly deals in -ydra Cranes( +ower cranes( and o#erhead cranes*
/* Compactors*
3* 5orklifts
3* Customers. 4
!ajaj Sugar*
7ai Prakash
Indian :quipments Infra*
:quipment !anks*
7indal
>* +urno#er. 4
-as turno#er of around /01 crores in 1=41? C)orth EestD and 211 Crores in the first
quarter of 1?421* elhi )CR
-ydra cranes. 4
Sold around 01 machines since ,pril 2( 1?* Sale has fallen around >1B*:arlier sold
around /= machines per month* +his is the period when the market is on the 8oom*
Page | 57
Compactors. 4
Sold around @0 machines till March( /11= and now sold around <0 machines till
March( /11?*Sale has fallen around 31430B*
5orklifts. 4
+he sale for this equipment has fallen to around 30B*
Eith the Go#ernment allocating more funds to the infrastructure sector( the coming
months ha#e a good scope for the construction equipments to 8e in demand and
8etter 8usiness ahead for the :scort company*
istri8ution ship. 4
2* S"$y H("<y I$du%t+#(%. 4
Selling on 8ehalf of Sany( Concrete pumps and Motor Graders* +he sale of these
equipments has also showed a dropdown in sales of <1B and 30B*
/* *LG I$du%t+#(%, 4
,erial work platform* +he asset has shown no change in its selling trend due to
recession* In fact has shown a significant increase in its sale*
(+t"#$ D+"9/".&%, 5
;rders are frequently coming( 8ut the pro8lem was with the 5inancing and
dispatching as the factory has less output of machineries and 8lockage of
in#entories*
7uly and Septem8er are going to 8e the worse period due to rainfall which is actually
a reason of stoppage in construction work and assignments( and hence affecting the
sale*
:6ports ha#e 8een damaged( as the major meltdown has demolished the foreign
construction sector* -ence( reducing the demand*
rop in the Real :state has 8een around 014<1B*
Page | 58
>* L&T Ko)"t%u
,8out '&+4Aomatsu 'imited.4
-eadquartered at !angalore( India( focusing on construction equipment and mining
equipment( '&+4Aomatsu 'imited is a joint #enture of 'arsen and +ou8ro and
Aomatsu ,sia Pacific Pte 'imited( Singapore( a wholly owned su8sidiary of Aomatsu
'imited( 7apan* Aomatsu is the world$s largest manufacturer of hydraulic e6ca#ators
and has manufacturing and marketing facilities worldwide* +he plant was started in
the year 2?@0 8y '&+ to manufacture -ydraulic :6ca#ators for the first time in India*
'ater it 8ecame a joint #enture* '&+4Aomatsu 'imitedQs manufacturing facility Fthe
!angalore Eorks comprises the Machinery Eorks and -ydraulics Eorks di#isions*
Machinery Eorks has a manufacturing facility with IS; ?112./111 accreditation for
design( manufacture and ser#icing of earthmo#ing equipment* -ydraulics Eorks(
with a precision machine shop( manufactures the complete range of high pressure
hydraulic components and systems( and is also IS; ?112./111 certified for design(
de#elopment( manufacturing and ser#icing of hydraulic pumps( motors( cylinders(
turning joints( hose assem8lies( #al#e 8locks( hydraulic systems and power dri#es as
well as allied gear 8o6es* +he products manufactured at '&+4Aomatsu 'imited are
supplied to domestic as well as o#erseas customers* '&+4Aomatsu 'imited is
certified under :n#ironment Management System IS; 2>112. /11> and
;ccupational -ealth & Safety Management System ;-S,S 2=112. 2???*
'&+4Aomatsu 'imited :6ecuti#es
S R Su8ramanian TC:;S
S* !alakrishnan TManager( 5inanceS
5ollowing are the highlights of '&+ case and komatsu. 4
Page | 59
O +he companies together ha#e a turno#er of %SV 20< million( with majority coming
from '&+ Aomatsu* !oth these companies are su8sidiaries of '&+ 'td*
O +hey are joint #entures with C)- ,merican ''C and Aomatsu ,sia Pacific P#t*
'td*( Singapore( respecti#ely
O '&+ Case manufactures loaders 8ackhoes and #i8ratory compactorsP while '&+
Aomatsu manufactures hydraulic e6ca#ators* '&+ Case hold /2B market share in
#i8ratory compactors
O '&+ Aomatsu holds /1B market share in e6ca#ators
O '&+ Case has its facilities in Pithampur( Madhya Pradesh
O '&+ Aomatsu has it operations in !ellary Road in Aarnataka*
/* eals in machinery. 4
Motor Graders
Eheeled 'oaders
o9ers
:6ca#ators.4
@ +on :6ca#ators
23 ton :6ca#ators
/1 ton :6ca#ators
31 ton :6ca#ators
>1 ton :6ca#ators
<1 ton :6ca#ators
3* Customers.4
7aypee
Sainik Mining
,uto Eield
;riental
:ra Infra
Punj 'loyd
>* +urno#er. 4
Page | 60
+urno#er for the Jear /11=4/11? for '&+ Aomatsu was />3 crores* ,nd <@ crores for
2
st
quarter from ,pril till june /11?*Celhi )CRD
,ll India /11=41? sales Ce6ca#ators( all manufacturersD =32< units*'&+ Aomatsu
sales were /0/0 Call IndiaD* +argeted was around 3111 units all India* Production and
sales of all the units dropped down to around <1 to @1B i*e* a8out 2I3
rd
in the month
;cto8er to 5e8ruary
Significant impro#ement shown in the first quarter 1?421.4
,pril 2<= units sold
May 2<? units sold
7une 2<1 units sold
;pportunities ahead are in terms of. 4
2* Co#ering the %nrepresented Market share 8y setting up more dealerships*
/* 5ocus is on the mining sector and infrastructure*
3* +apping the untapped market*
0* L&T "%(, 5
Case Corporation and 'arsen & +ou8ro 'imited 5orm Construction :quipment 7oint
"enture in India. 4 C01401 7"D
Case Corporation C)JS:.CS:D today said that it has formed a joint #enture with
'arsen & +ou8ro 'imited for the manufacture and sale of construction equipment(
specifically loader 8ackhoes and "i8ratory compactors( in India* +he two companies
will share 01 percent interest in the new #enture( which is named '&+4Case
:quipment 'imited and is 8ased in Pithampur( Madhya Pradesh( India* +erms of the
agreement were not disclosed*
RGaining entry to the Indian market is an important element in our strategy to
continue to grow our construction equipment 8usiness(R said 7ean4Pierre Rosso(
Case chairman and chief e6ecuti#e officer* REe ha#e se#eral years of e6perience
with 'arsen & +ou8ro( and we are confident that( in com8ining the e6pertise of the
two companies( we will pro#ide construction equipment customers in India with
superior products that will impro#e their producti#ity*R
'arsen & +ou8ro today manufactures loaderI8ackhoes and #i8ratory compactors at
its plant in Pithampur* +he technology for these products was originally licensed 8y
Case to 'arsen & +ou8ro in 2?=?* %nder terms of the joint #enture agreement(
Page | 61
'arsen & +ou8ro will transfer its Pithampur operations to the new joint #enture
company and Case will pro#ide a license for a new loaderI8ackhoe design( which will
8e produced at the Pithampur plant* In addition( the joint #enture will manufacture
and sell the line of #i8ratory compactors currently sold 8y 'arsen & +ou8ro in India*
!ackhoe 'oaders
"i8ratory Compactors
3* Customers.4
7aypee
Sainik Mining
:ra Infra
Punj 'loyd
>* +urno#er. 4
+urno#er for the Jear /11=4/11? for '&+ case was 0? crores* ,nd ? crores for 2
st

quarter from ,pril till 7une /11?* Celhi )CRD
Sold around 3>1 machines in 1=41? in north* +hus( the impact was not that much on
its selling of assets* +he main reason for this was an order from Ministry of efense
CG!RD which kept the supplying pattern smoothens for the company in spite the
recessionary period*
)ow it$s impro#ing further more 8y selling >1 machines already in the first quarter
and looking good in the near future*
+he 8asic strategy was to stuck up to the e6isting( market share of 21 to 22B*
;pportunities ahead are in terms of. 4
Co#ering the %nrepresented Market share 8y setting up more dealerships*
Page | 62
!uilding more and more presence amongst the corporates which was
lacking earlier in the company policies*
>1 crores of in#estment to e6pand the manufacturing and state of the art
facilities*
<* "t(+p#ll"+
I)%S+RJ ':,:R( -IG- S+,),RS(
5or more than =1 years( Caterpillar has 8een 8uilding the world$s infrastructure and(
in partnership with our network of CatL dealers worldwide( has helped dri#e positi#e
and sustaina8le change on e#ery continent* Ee are a glo8al company( with hundreds
of locations worldwide to ser#e and support our customer 8ase( and respond quickly
to their needs*
Since its inception o#er =1 years ago( Caterpillar has grown to 8e the worldQs largest
maker of construction and mining equipment( diesel and natural gas engines( and
industrial gas tur8ines* In partnership with our worldwide dealer network( we dri#e
positi#e and sustaina8le change on e#ery continent* Ee deli#er products( ser#ices
and technologies in three principal lines of 8usiness. Machinery( :ngines and
5inancial Products* ,s a glo8al( di#erse technology leader( Cat commits to
e6cellence in all that we do* Ee are proud to 8e a leader in 8uilding the worldQs
infrastructure( and in ena8ling progress for millions of people around the glo8e*
Page | 63
:6ca#ators
o9ers
Motor graders CMarket leaderD
Eheeled 'oaders
Gensets
Eheeled mountain cranes CMarket leaderD
!ackhoe 'oader
3* Customers.4
S construction
Som utt
7aypee
+ata Steel
Sainik Mining
>* +urno#er. 4
+urno#er for the Jear /11=4/11? was =11 crores C,ll IndiaD* ,nd =0 crores for 2st
quarter from ,pril till june /11?*Celhi )CRD
+he Months ;cto8er( )o#em8er( ecem8er( and 7anuary recorded a downfall in
sales of around /1 to 31B*
Machines sold in )orthern Region are 001 all units 1=41? and 31 machines all units
sold 2st quarter 1?421
Page | 64
;pportunities ahead are in Mining and road Construction* 'ooking forward to target
the local areas i*e targeting the small customers so as to e6pand their market in
Retail and look for more sales opportunities ahead this year*
@* G+("<(% otto$ L#)#t(d
Grea#es Cotton 'imited( esta8lished in 2=0?( is one of IndiaQs leading and well4
di#ersified engineering companies* It manufactures a wide range of industrial
products to meet the requirement of core sectors in India and a8road* +he
companyQs core competencies are in ieselIPetrol engines( Gensets( ,gro
:quipments and Construction :quipments* Infrastructure :quipment
At T!( o+( Of I$du%t+#"l Su..(%%
Page | 65
+o meet the challenges of construction industry( Grea#es manufactures wide range
of Compaction and Concreting equipment* +he complete range of concrete
equipment like +ransit Mi6ers( Concrete Pumps( !atching Plants( etc* are
manufactured at the Company$s IS; ?112 certified Plants at Chennai and
Gummidipoondi C+amil )aduD* Grea#es also manufactures the complete range of
compaction equipment like "i8ratory Soil Compactors( -ea#y +andem Rollers( 'ight
tandem Rollers at Gummidipoondi*
Grea#es construction equipment is mainly used for construction of roads( 8ridges(
8uildings( ready mi6 concrete applications( etc* Grea#es caters to the ser#ice and
spare parts requirement of customers through their large network of qualified and
trained ser#ice engineers located a #arious 8ranches and dealerships*
2* !atching Plants
/* +ransit Mi6ers
3* Concrete Pumps
3* Customers. 4
Sainik Mining
Punj 'loyd
s Construction
7aypee
>* +urno#er. 4
+he +urno#er for 1=41? CMay1=47une1?D <=*0 crores
:quipments Sold. 4
!atching Plants >0
+ransit Mi6ers 2@0
Concrete Pumps 01
Page | 66
ownfall in sales 01B
'ooking forward for the opportunities in the highway construction projects( especially
after the !udget stimulus towards this area
=* S.!9#$' Stt(t(+, 5
Schwing Stetter India P#t* 'td is a 211 per cent su8sidiary of Schwing Gm8-( a @04
year old( X=014million ready4mi6 concrete equipment manufacturer with its
headquarters in -erne( Germany* Schwing Group has 2/ manufacturing units
worldwide and has a glo8al presence in more than 2>0 countries*
Page | 67
Schwing Stetter India was registered as an Indian company in 7une 2??= and started
its operations in the 8eginning of 2??? in leased premises* In /112( Schwing Stetter
India set up its own manufacturing facility at Sriperum8udur in Chennai( followed 8y
the second one in /11>( e6clusi#ely to manufacture truck mi6ers* In ecem8er /11<(
the company inaugurated its third facility to e6clusi#ely manufacture concrete
8atching plants*
SSIP' manufactures the entire range of concreting equipment for concrete
preparation( concrete transportation( concrete placement and recycling of concrete*
Schwing Stetter IndiaQs turno#er in /11= stood at Rs =01 crore*
!atching Plants
+ransit Mi6tures
3* Customers. 4
'5
7indal
7*A 'akshmi
7aypee
>* +urno#er. 4
+he +urno#er for 1=41? CMay1=47une1?D 211 crores and 5irst quarter 1?( 2> crores
:quipments Sold. 4
!atching Plants @1
+ransit Mi6ers 211
+here was around 21 to /1B effect of recession*
Page | 68
:quipments Sold first quarter1?. 4
!atching Plants 20
+ransit Mi6ers /1
, lot of opportunity in near future has dri#en the sales to considera8le good figures*
;pportunity in terms of infrastructure sector( de#elopments in the retail sector( mining
e*t*c
?* Ko/(l.o
+he Ao8elco Construction Machinery Group has a long history of de#eloping
construction machinery as a mem8er of Ao8e Steel( 'td*( one of the world leading
steelmakers* ;ur history spanning o#er @0 years started in 2?31 with the 01A electric
mining sho#el that was the first construction machinery product manufactured in
7apan* Since then( we ha#e de#eloped many inno#ati#e products and techniques
that ha#e contri8uted to a 8reakthrough in construction machinery technology*
Page | 69
+he same indomita8le spirit that ha#e shaped our proud history is still ali#e(
encouraging us to de#elop inno#ati#e state4of4the4art products such as the -J!RI
e6ca#ator and the SA3011 8uilding demolition machine with the highest reach in
the world*
+o promote continuous de#elopment( 8asic research on future technologies in such
areas as energy4efficiency( noise4reduction( weight4reduction( and safety( is pursued
in cooperation with Ao8e SteelQs Ao8e Corporate Research 'a8oratories*
:6ca#ators
o /1 tonner
o 30 tonner
o >= tonner
3* Customers. 4
:ra Infra
C&C Continental :ngineering Corporation*
C and C construction 'imited*
>* +urno#er. 4
+he +urno#er for calendar year 1=41? 2@*0 crores and 5rom 7anuary till 7une 1?( 0
crores
Page | 70
:quipments Sold. 4
30 :6ca#ators sold in 1=41? and 21 till this 7une
+he figures of equipments sold last year were considera8ly not #ery high 8ecause of
the following reasons. 4
+he company 8eing a 7apanese +ransnational has this strategy of 8uilding up
a support network that will allow the 8usiness to grow gradually and slowly*
+he main aim is to first understand the market conditions and local areas and
then 8ring up new and inno#ati#e equipments into the construction industry*
+he market share has came down 8y >1 to 01B 8ecause of the higher interest
rates 8y the financers( the parity in the e6change rate and the effect of the
recession*
21* *B, 5
In e#ery corner of the world youQll find a 7C! machine* 7C! is one of the worldQs top
three manufacturers of construction equipment* Ee employ o#er =(111 people on >
continents and sell our products in 201 countries through 2(011 dealer depot
locations*
Page | 71
+hroughout our </ year history( we ha#e always in#ested hea#ily in research and
de#elopment( keeping 7C! at the cutting edge of inno#ation*
+oday( 7C! has some of the finest engineering facilities across the glo8e( produces
a range of o#er 311 machines and maintains a reputation for unri#alled customer
ser#ice*
7C! is a unique company where unique people produce unique products( 8ut it
shares one #itally important characteristic with many other successful glo8al 8rands*
It ne#er stands still* 7C! may ha#e an e6citing future 8ecause of its illustrious past
8ut it ne#er takes anything for granted* It is constantly seeking new hori9ons*
5ollowing are the highlights of '&+ case and komatsu.
OManage spend for assigned commodities across Indian & ;#erseas locations*
OResponsi8le for omestic procurement and Imports from 7C! %A( 7C! Germany(
7apan( China( :uropean Continent* CCommodities. Casting( 5orgings( and
-ardwares & :lectrical ComponentsD*
O-alf yearly( Monthly 5orecasting( Planning( ay wise Scheduling of regular
production parts and ensuring 211B a#aila8ility of items*
OMaintaining In#entory le#el CMin & Ma6 stockD( :;G( In#entory turns at prodn end &
at #endor end through physical and :lectronic Aan8an( !in supply chain
management( 'ean concept & 7I+*
OCo4ordination and Communication with omestic & ;#erseas #endors( :nsuring
Guality of Incoming matl( resol#ing quality issues( #endor issues etc*
Ori#e key sourcing metrics across supply 8ase CProducti#ity( Payment terms( 'ead
+imes( +erms & conditionsD*
!ackhoe 'oaders
+racked :6ca#ators
Eheeled 'oaders
Page | 72
"i8ratory Single rum Compactors
3* Customers. 4
!rat :ngineers
JRC Projects 'imited
A*S :nterprises 'imited*
R*A Construction Company
P*A Construction 'imited
>* +urno#er. 4
+he +urno#er for calendar year 1=41? 311 crores and for elhi )CR around ?0
crores and 5rom 7anuary till 7une 1?(
Its sales had plummeted 8y /1B in /11=* Eith the market facing a downturn( the
company e6pects sales to 8e lower 8y 20B in the /11? calendar year( and sales
were e6pected to pick up 8y the end of /11?* )ew unit opened for 8ackhoe 'oaders
to fulfill the demand for the near future with respect to new customers and co#er up
untapped market*
In sales the major portion is contri8uted 8y the !ackhoe 'oaders( more than ?1B in
construction areas*
)o of !ackhoe loaders sold all o#er India 8y 7C! in 1=41? were 2>>11* It is
comparati#ely less than in year 1@41= when the sales were 2=111* +he dip was
recorded of /1B in sales*
+he num8er of 8ackhoe loaders sold in elhi )CR was 301 in /11=41?*
Study of F#$"$.(+%
L&T F#$"$.( LTD-
2* Company profile4.
Page | 73
'&+ 5inance 'imited C'+5D is one of the wholly owned su8sidiaries of 'arsen and
+ou8ro* It was incorporated as a )on !anking 5inance Company in )o#em8er 2??>*
/* Company$s performance in growth period4.
+he company has funded a8out 22/*/3 crores which has /@*/3 crores as retail and
=0cr as strategic in elhi )CR in /11=41?* Is considered to 8e the most suita8le
option for financing in the market with esta8lished faith amongst customers*
3* Company$s performance in recession4.
+he company followed stringent policies to cope up with )P,$s C)on Performing
,ssetsD i*e those customers which do not a8le to repay the loan amount 8ack or
turned 8ad de8ts* ,nd other thing it does that it dropped its findings to the limited* It
manages to keep up to the target set in terms of funding and a8le to keep its position
up to the mark in the market*
>* Customers. 4
Sainik Mining
Goyal Construction Co
Mewat grit udyog
,ltech equipments p#t* 'td*
South west drilling & infrastructure ltd
,hluwalia contracts CindiaD limited
7indal infrastructures p#t ltd
Punj 'loyd
M"')" F#$ o+p-
Magma 5incorp 'td pro#ides #arious financial products and ser#ices to indi#idual and
corporate customers in India* +he company offers finance for new and used
Page | 74
commercial #ehiclesP passenger cars and multi4utility #ehiclesP and construction
equipment* It also offers su#idha loans( and insurance and personal loans* +he
company was formerly known as Magma Shrachi 5inance 'imited and changed its
name to Magma 5incorp 'td in 7uly /11=* Magma 5incorp 'td was incorporated in
2?== and is 8ased in Aolkata( India*
Magma 'easing 'imited was incorporated in 2?== and commenced operations in
2?=?* +he company merged with ,rm Group :nterprises in 2??/ to strengthen its
8usiness further* Since then( Magma has emerged o#er the last decade4and4a4half
as one of IndiaHs largest non48anking financial companies* +hey are headquartered
in Aolkata CIndiaD and registered with the Reser#e !ank of India* +hey are
represented 8y a qualified team of ?01 plus Magmaites* In response to the rapidly
e#ol#ing demand of an India on the mo#e( they offer indi#idual and corporate
customers a range of financial products and ser#ices in. Commercial #ehicle finance(
Construction equipment finance( Passenger car finance*
Interestingly( they rapid growth o#er the last few years is not just deri#ed from
company conscious initiati#e in growing company physical infrastructureP it originates
in the prudent in#estments that they ha#e made in lasting relationships 4 with team
mem8ers( alliance partners( customers and #endors ,s a result( they ha#e achie#ed
a compounded annual growth rate of o#er @1 per cent o#er the last three years* +hey
ha#e outperformed the growth in the Indian financing industry* ,nd in doing so( they
ha#e emerged as a dynamic industry pro6y )ow 8y the same approach( they e6pect
to make this growth as sure as company e6pect to make it sustaina8le* Resulting in
an organi9ation that is stronger and more responsi#e to growing needs of a dynamic
nation*
+he company used to fund around ?1B 8efore* +he funding was higher 8ecause the
work of the company was going well in e#ery field i*e* Magma construction( Magma
car financing( Magma SM:( Magma commercial #ehicles( Magma personal loans*
Page | 75
+he income of the people was higher*

+he company now funds only @0B which it used to do around ?1B 8efore*
+he income of the people has fallen down*
+he finance has fallen to around <14@1B as ecem8er47anuary was the main time
when it was hit 8y recession*
Sale has fallen down to around 31 to >1B since august /11=*
>* 5inancing of the company4.
+otal turno#er has 8een around 3<11 crores* +otal is8ursement in 1=41? were <3
crores and in 2
st
quarter 1?421 30 crores* Celhi )CR figures for 8oth strategic and
retailD
+he company mainly focuses on !atching plant( tippers( e6ca#ators( 8ackhoe
loaders for doing their major financing*
It also gi#es different offerings to the clients4 finance schemes( credit and
su8#entions*
0* Customers4.
Sainik
!rahmaputra
Punj 'loyd
T"t" "p#t"l. 4
Page | 76
+ata Capital marks the entry of the +ata Group into a host of new financial ser#ices*
+he Company caters to multiple needs of the retail and institutional customer K truly
a one4stop shop( 8e it in#estment or finance*
+ata Capital 8rings the trust and e6pertise of the +ata Group into the world of
financial ser#ices* It aims to 8e recogni9ed for its customer4centricity and high
ser#ice standards* +he Company is dri#en 8y a strong focus on #alue creation for
stakeholders and the society at large*
+ata Capital is a wholly4owned su8sidiary of +ata Sons 'imited( the ape6 holding
company of the +ata Group* It is registered with the Reser#e !ank of India as a
Systemically Important )on eposit +aking )on !anking 5inancial Company
undertaking fund and fee 8ased acti#ities in the financial sector*
+he company used to fund around ?3B 8efore the time of recession came*
+he income of the workers and the others was pretty good at that time*
+he growth and performance of the company was pretty good and sometimes higher
than e6pected*
3* Company$s performance in recession period4.
Infrastructure Companies
Strategic ICorporate
Retailers
5+%I5+!C5irst time users and first time 8uyersD
Go#ernment gi#es projects to companies who further su84di#ides it into retailers &
ftu$s so all of them 8enefit*
Since oct*/11= when main recession started( corporate stopped gi#ing projects and
work to the retailers and ftu$s*
So it was a 8ig loss to the retailers and a ftu$s* :#en 8anks stopped gi#ing loans and
finances*
+he financing was gi#en for 3yrs* mainly gi#en 8etween 240 years*
Sale has fallen down to around 31 to >1B since august /11=*
Sep*/11= to jan*/11? was the period in which liquidity almost got finished*
Page | 77
31 to 30B sale has 8een in last =to ? months which has increased in northern region
8ut has o#erall it has decreased* +he reason is that in the northern region there are
more no of construction and infrastructures companies*
>* Company$s financing4.
+he total financing in /11=4/11? has 8een around />11 crores* In 1=41? figures were
23= crores and in 2
st
quarter 1?421 3/ crores* Celhi )CR figures for 8oth strategic
and retailD
0* Customers.4
2* Punj 'loyd*
/* !*'* Aashyap*
3* :R, infra*
>* C&C construction*
0* !%MIG; :ngineering*
SREI
Page | 78
Srei Infrastructure 5inance 'td* is one of IndiaQs leading )on !anking 5inancial
Institutions and the only pri#ate sector infrastructure financing )!5I* It commenced
its operations in 2?=? with the o8jecti#e of acti#ely participating in nation 8uilding
process and was #isionary in selecting Infrastructure sector as its principal growth
area* +oday( Srei has de#eloped e6pertise in financing of infrastructure equipment
Cfor construction( mining( oil & gas( power and othersD( infrastructure projects(
infrastructure de#elopment and ad#isory in all #erticals of infrastructure* ,s a result(
Srei has come to 8e recogni9ed for inno#ation of financial instruments and offering
customi9ed solutions in the infrastructure space*
Srei :quipment 5inance Pri#ate 'imited
Srei :quipment 5inance Pri#ate 'imited CS:5P'D is a 7oint "enture 8etween Srei
Infrastructure 5inance 'imited CRSreiRD and !)P Pari8as 'ease Group CR!P'GRD* +he
Company was formed in /11< with the o8jecti#e of carrying on the 8usiness of
acquisition( e6change( su8stitution and dis8ursement of construction and
infrastructure equipment*
;n May 32 /11@( !)P Pari8as 'ease Group C!P'GD( the leasing arm of !)P
Pari8as !ank( picked up 01 percent stake of the company following SreiQs plan to
hi#e off its :quipment 5inancing and Insurance Ser#ices to S:5P'* 'e#eraging on
the glo8al e6pertise of the !P'G and Srei in infrastructure equipment CI:D leasing
and financing market( S:5P' plans to capitali9e on the 8urgeoning opportunities in
I: market e6pected to touch %S @*1 4 @*0 8n 8y 5J /11?421 in India*
SreiQs strong 8rand image domestically( local e6pertise and speciali9ed equipment
finance skills is e6pected to com8ine well with the glo8al 8rand strengths of !P'G
further consolidate SreiQs leadership in the equipment finance 8usiness* 5ollowing
the partnership with !)P( S:5P' plans to e6pand the product line into financing of
agriculture( information technology( medical and other equipment*
+he formation of this joint #enture is a #ery significant step in the Indian 5inancial
Ser#ices Market* +he 7"( 8eing formed with an initial net worth of Rs* =11 crore
would not only strengthen its a8ility to grow the 8usiness manifold 8ut also help in
strengthening the core acti#ities and Srei Group position in the infrastructure sector*
Page | 79

%sed to fund around =14?1 B in the growth period( it in#ested high in construction(
mining( oil etcY
Since august /11= when the recession period Cglo8al melt downD started( the sales of
the company ha#e fallen down to around /0430B*
+he period in which this sale mainly went down was 8etween )o#em8er /11= and
7anuary /11? when the recession was at its peak and affected almost e#ery sector
the most*
Infrastructure Companies
Strategic ICorporate
Retailers
5+%I5+!C5irst time users and first time 8uyersD
Go#ernment gi#es projects to companies who further su84di#ides it into retailers &
ftu$s so all of them 8enefit*
Since oct*/11= when main recession started( corporate stopped gi#ing projects and
work to the retailers and ftu$s*
So it was a 8ig loss to the retailers and a ftu$s* :#en 8anks stopped gi#ing loans and
finances* +he financing was gi#en for 3yrs* mainly gi#en 8etween 240 years*
SR:I Infrastructure 5inance 'td CSR:I*!;. Guote( Profile( ResearchD fell > percent to
<<*?1 rupees after the company reported a 03 percent fall in fiscal /11?*
>* Company$s financing4.
+otal financing of the company in /11=4/11? has 8een around <11 crores and in 2
st
quarter 1?421 220 crores* Celhi )CR figures for 8oth strategic and retailD
0* Machinery used4.
Construction equipment includes e6ca#ators( compactors( do9ers( cranes( hea#y
dumpers( compressors( surface miners( motor graders( 8ackhoe loaders( tool
carriers( road 8uilding equipment( mechanical and sensor pa#ers etc*
Customers4.
2* Punj 'loyd*
/* !*'* Aashyap*
3* :R, infra*
Page | 80
Kot"& M"!#$d+" /"$&5,
2* Company profile5,
Aotak Mahindra !ank is one of IndiaQs leading financial pri#ate 8anking institutions* It
offers 8anking solutions that co#ers almost e#ery sphere of life* Some of its financial
ser#ices include commercial 8anking( stock 8roking( mutual funds( life insurance and
in#estment 8anking* :sta8lished under the 8rand of Aotak Mahindra 5inance 'td in
2?=>( it was gi#en the license to carry on with 8anking 8usiness 8y the Reser#e !ank
of India in 5e8ruary /113* It is the first company in the Indian 8anking history to
con#ert to 8e con#erted from a pri#ate financial institution to a 8ank*
+he facilities of Aotak Mahindra !ank are wide spread* ItQs 8anking sector acts as a
central platform for customer relationships across the entire Aotak Mahindra groupQs
#arious 8usinesses* +he 8ank marks its presence in the commercial #ehicles( retail
finance( corporate 8anking and treasury and housing finance segments* It offers you
se#eral facilities like personal 8anking( commercial 8anking( insurance and
in#estment 8anking*
,part from traditional facilities like deposits accounts( sa#ings account( current
account( term deposits( personal loans( home loans the 8ank has spread its wing in
the in#estment ser#ices 8y pro#iding its customer facilities like emat( mutual fund
and insurance* +he 8ank has also opted for net 8anking( mo8ile 8anking and phone
8anking for con#enience of its customers*
+he company$s dis8ursement in /11?41? was around 211 crore* +he company$s
strategic and retail 8usiness is di#ided equally*
Aotak Mahindra funded around =0 B 8efore the recession period came*
+his period hasn$t affected them so much*
3* Company$s performance in recession market4.
+here has 8een less percent fall in there finance 8ut /1B fall in sale*
5inance has fallen down to @1B now*
Recruiting new people almost stopped*
Page | 81
+he company finances 8oth imported and other equipments*
Imported equipments include4 e Maag( Groo#e( Coles( Aato*
;ther equipments4 Crawler crane( !atching Plant( +ransit Mi6er( +ippers( and Piling
Rigs*
+otal dis8ursement 1=41? were =3*0 crores and in 2
st
quarter 1?421 /1 crores* Celhi
)CR figures for 8oth strategic and retailD
0* Customers4.
Retail customers4
o Plant hirers
o Mine ;perators*
Construction Company$s4
o Punj 'loyd
o *S* constructions
o Parswanath de#elopers
o !uilders
Strategies adopted 8y company4.
o +hey ha#e decided not to 8e aggressi#e*
o Strict norms towards appraisal*
o 5ocus on risk containment organi9ation*
o Reco#ery initiati#e*
Page | 82
HDF BANK. 4
2* Company profile5,
-ousing e#elopment 5inance Corporation 'imited( more popularly known as -5C
!ank 'td( was esta8lished in the year 2??>( as a part of the li8erali9ation of the
Indian !anking Industry 8y Reser#e !ank of India CR!ID* It was one of the first 8anks
to recei#e an Qin principleQ appro#al from R!I( for setting up a 8ank in the pri#ate
sector* +he 8ank was incorporated with the name Q-5C !ank 'imitedQ( with its
registered office in Mum8ai* +he following year( it started its operations as a
Scheduled Commercial !ank* +oday( the 8ank 8oasts of as many as 2>2/ 8ranches
and o#er 3/@0 ,+Ms across India*
,malgamations
In /11/( -5C !ank witnessed its merger with +imes !ank 'imited Ca pri#ate sector
8ank promoted 8y !ennett( Coleman & Co* I +imes GroupD* Eith this( -5C and
+imes 8ecame the first two pri#ate 8anks in the )ew Generation Pri#ate Sector
!anks to ha#e gone through a merger* In /11=( R!I appro#ed the amalgamation of
Centurion !ank of Punja8 with -5C !ank* Eith this( the eposits of the merged
entity 8ecame Rs* 2(//(111 crore( while the ,d#ances were Rs* =?(111 crore and
!alance Sheet si9e was Rs* 2(<3(111 crore*
+he company$s dis8ursement in /11?41? was around 2>1*>0 crores* +his is equally
di#ided amongst the strategic and retail 8usiness*
+he company has had a 32B net income growth rate in the 2
st
quarter of 1?*
+he company has made an o#erall growth of >0B since 7an 1? when the market has
started to impro#e a 8it*
3* Company$s performance in recession market4.
In the recession period the company$s main strategy was to generate group$s
8usiness and take money instead of pro#iding loans*
is8ursement of 20 crore was there after august 1= which was around /0 crore
8efore that period*
Page | 83
+he company finances 8oth K retail as well as corporate*
+ill now the company has done the funding of 3=111 crores all o#er India*
+he company has an o#erall of 31B market share in financing construction
equipments 8oth retail and strategic* +he dis8ursement in 1=41? was 2>1*>0 crores
and in 2
st
quarter 1?421 were 3< crores* Celhi )CR figures for 8oth strategic and
retailD
0* Customers4.
Road construction4
o ;riental structural p#t ltd*
o *S Construction
o 7P ,ssociates
o Pink city e6press
Industrial Infrastructure4
Gannon unkerlay
Su8hash projects and marketing ltd*
Crane 8usiness4
,pollo cranes
7anak cranes
Mining4
Sainik mining
Page | 84
A$"ly%#% "$d I$t(+p+(t"t#o$
A$"ly%#%
3- Bu%#$(%% Do$( f+o) Ap+#l 022E to M"+.! 0232 /y LTF "$d #t%
.o)p(t#t#o$-
Page | 85
C1?421 elhi )CRD RetailCCrD StretegicCCrD +otalCCrD
'+5 /@*/3 =0 22/*/3
-5C >>*>0 ?< 2>1*>0
ICICI 2@ 01 <@
Magma 3= /0 <3
Citicorp 3>*@0 01 =>*@0
Srei 201 >01 <11
Aotak /3*0 <1 =3*0
G:*Capital /2*@0 30 0<*@0
,!) ,mro /1 =1 211
+ata Capital 2= 2/1 23=
Reliance )*, )*, 1
;thers 21 )*, 21
Tot"l C2C-FH 3213 3C11-FH
Bu%#$(%% Do$( f+o) Ap+#l 022H to M"+.! 022E /y LTF "$d #t%
.o)p(t#t#o$-
Page | 86
0- Bu%#$(%% do$( f+o) f#+%t Au"+t(+ 2E532 /y LTF "$d #t%
.o)p(t#t#o$, 5
Page | 87
62E532 f#+%t
@u"+t(+8
R(t"#l St+(t('#. Tot"l
.+ .+ .+
'+5 0 20 /1
-5C 21 /< 3<
ICICI )il 21 21
Magma 20 /1 30
Citicorp > 0 ?
Srei 20 211 220
Aotak = 2/ /1
G:*Capital )il )il 1
,!) ,mro )il )il 1
+ata Capital = /> 3/
Reliance 21 /0 30
;thers )*, )*, 1
Tot"l G1 04G 32/
Bu%#$(%% do$( f+o) f#+%t Au"+t(+ 2E532 /y LTF "$d #t% .o)p(t#t#o$
Page | 88
A$"ly%#% of t!( "/o<( d#"'+")%, 5
+he ,8o#e figures show the 8usiness done 8y the '+5 and its competitors in elhi
)CR in 1=41? and first quarter 1?421* It$s 8een o8ser#ed that all the companies were
doing well* +he major portion of their dis8ursement was 8efore the recession period
8ut months 8etween ,ugust1= till 7anuary1?( the 8usiness plunged to the lowest
e#er*
+he 5inancers did their 8usiness on their own terms during the recession period( i*e
they ha#e their own strategies to deal with different customers and hence a8le
sustain the reign of the recession period to the most effecti#e*
Managed to the most e6tent to achie#e the target they ha#e set( it$s a8out that they
were not a8le to generate sales comparati#ely more than in the year 1@41=*
+he year 1?421 has 8egun with good 8usiness 8ut at a steady rate* +he full throttle in
the 8usiness is e6pected 8y the end of this year*
Page | 89
E"+t! )o<#$' (Au#p)($t% .o$%t#tut( t!( /#''(%t %(')($t "$d
(B."<"to+% t!( l"+'(%t p+odu.t l#$( 9#t! #$ t!( %(')($t-
F#'u+( ,o$%t+u.t#o$ EAu#p)($t #$du%t+y St+u.tu+(-
Page | 90
E"+t! )o<#$' EAu#p)($t %(')($t-
A$"ly%#% of t!( "/o<( d#"'+")%, 5
+he a8o#e figures show the Construction :quipment Industry Structure and :arth
Mo#ing :quipment Segment* Eith this it is interpreted that what all areas are there in
the Construction 8usiness and what all are the assets needed in these areas*
,ssets ha#e their own uses with respect to different areas and majority has
accomplished their market( say :6ca#ators which has @1B market occupied and
used at most of the construction sites and is mostly financed asset*
P+o7(.t% I$<(%t)($t% u$d(+ I)pl()($t"t#o$ 6R%- +8
Page | 91
,s per the 21th 5i#e4year plan document the 8reakup of the cost in #arious
construction project are as under.
CSource. Construction Industry e#elopment Council Sur#ey( 21th PlanD
A$"ly%#% of t!( "/o<( T"/l(, 5
+hus construction equipment cost particularly in the road projects( 8ridgesI dam
construction and port projects constitutes a major cost of the projects* 5urther( with
rapid technological de#elopments( the cost of replacement of these equipments is
also #ery high and can ha#e a major impact on the profita8ility of a project*
+his is where the companies with a facility of pro#iding equipments on hire ha#e
started coming in( and for financers to ha#e funding growth*
INTERPRETATIONS
Most of the suppliers ha#e suffered to the same e6tent i*e almost a dropdown
of 30 to 01B in the recessionary period from ,ugust1= to 7anuary 1?*
Page | 92
M"t(+#"l%
6I8
o$%t+u.t#o$
EAu#p)($t
6I8
L"/ou+
6I8
F#$"$.
(
6I8
E$"/l#$'
EBp($%(%
6I8
Ad)#$
EBp($%(%
6I8
Su+plu%
6I8
!uilding 0=4<1 C-1 22423 G5H 0*04<*0 3*04>*0 04<
Roads >/4>0 03504 21 42/ G5H 0*04<*0 3*04>*0 04<
!ridges ><4>= 3F53H 22423 G5H 0*04<*0 3*04>*0 04<
ams( etc >/4>< 03504 2142/ G5H 0*04<*0 3*04>*0 04<
Power >24>3 0350C 2142/ G5H 0*04<*0 3*04>*0 04<
Railway 02403 G5H 2<42= G5H 0*04<*0 3*04>*0 04<
Mineral Plant >24>> 02500 2/42> G5H 0*04<*0 3*04>*0 04<
Medium
Industry
0140/ G5H 2<42= G5H 0*04<*0 3*04>*0 04<
+ransmissio
n
>?402 F5G 2?4/2 G5H 0*04<*0 3*04>*0 04<
:ach supplier has their own set of machineries in which they held %SP
Cunique selling productD*
Particular machinery is further classified into #arious series* +he demand of
the asset is as per the need of the customer and the areas where it is most
suited*
)ew areas are emerging ahead like infrastructure de#elopment( mining( real
estate( road de#elopment*
,ll these areas are of opportunity for the suppliers to look forward in future to
increase their sale and with this the financers will ha#e the market increased
in terms of financing more and more assets*
+he 8argaining power of the suppliers and financers #ary from time to time(
and as per that 8usiness too #aries*
,fter the 8udget( which has a lot of in#estment ahead in infrastructure sector(
all the contractors are finding it good to generate more and more income*
Page | 93
FINDINGS
Good Anowledge of the Construction :quipment Industry*
Eho all are the major suppliers and financers related to this industry and how
they perform their operations in relation to each other*
It is found that most of the suppliers ha#e their 7oint "enture with the foreign
Companies dealing in same segment* Eith this we come to know that foreign
companies are finding this Indian market good enough to e6pand their
#entures a8road*
'ost sales in the last year 8ecause qualified purchasers had 8een una8le to
get financing* Increase in their own credit costs* Companies had difficulty
securing credit*
+he clientele with the suppliers is almost the same* Eith this it is found that
the top customers in this industry are segregated in equal amongst the
suppliers for construction equipments and financers for financing 8usiness*
Some Suppliers ha#e distri8ution ship of companies manufacturing
construction equipments and that too of foreign origin*
)ew areas are emerging ahead like infrastructure de#elopment( mining( real
estate( road de#elopment*
5inancing terms are almost same for e#ery financer to gi#e money to the
customers* Stringent policies were adopted in the recession period with regard
to financing and dis8ursement* 5inance companies ser#ing equipment
markets at the time of recession ha#e raised their creditworthiness standards*
Ehile a tightening of credit terms is not surprising gi#en the recent su8prime
meltdown*
+he main downfall in 8usiness for 8oth the suppliers and financers was from
the months following )o#em8er to 7anuary*
+he credit woes plaguing the industry are apparently the result of a num8er of
factors( construction industry has 8een among the hardest hit 8y the economic
downturn( in an effort to minimi9e risk( and some of the large( independent(
asset48ased lenders ha#e reduced construction lending or simply stopped
writing loans for the industry* ,t the same time( capti#e finance companies
ha#e found it more difficult to raise money*
Page | 94
R(.o))($d"t#o$% &Su''(%t#o$%
2* Companies in the construction space underline the impressi#e growth
inflection in the industry o#er the past few years* +he last year /11= has 8een
a little downwards( other than that( I e6pect growth to remain ro8ust as
opportunity increases* +he key dri#er will 8e large in#estments planned in
India$s infrastructure( industrial( and real estate sectors in the ne6t fi#e years*
+hus( corresponding 8oost for the construction equipments and their suppliers
and manufacturers with respect to increase in the demand*
/* Most construction companies in India ha#e negati#e operating cash flows(
rising cape6( and higher in#estment requirements in su8sidiaries* -ence( we
8elie#e they will need additional funding* +his will help financers to e6pand
their hori9on towards funding these companies under corporate financing*
3* Manpower remains one of the key concerns as shortage of skilled la8or
continues* -owe#er( employee producti#ity has increased in the industry in
the past two years* +he machines require operators with good understanding
of their operations and technicalities* +his will help in good efficiency of the
assets and will lead to more than e6pected life*
>* Eith increasing C,GR of >1B of the construction equipments( and demand
increasing at 20B per annum( the 8usiness for equipment industry has 8right
future ahead*
0* Manufacturers and dealers must 8etter educate their sales personnel to
package and sell more comple6 ser#ices( 8ased on the full life cycle #alue to
the end user*
Page | 95
<* Manufacturers and dealers will need to adapt their product maintenance
processes to take full ad#antage of real4time( detailed information a8out
equipment performance*
@* +he industry will ha#e to address the issue of technical standards*
Regarding the issue of technical standards( nearly two thirds C<3 percentD of
users sur#eyed said they consider it F#ery important for equipment telematics
de#ices to work across all equipment( regardless of manufacturer( make or
model( while only >0 percent of equipment manufacturers and dealers held
the same #iew* +oday( a lack of technical standards pre#ents end users from
running a platform4independent equipment telematics solution*
=* +he construction industry must not only transform its culture and processes
to prepare for telematics( 8ut also address standards for on48oard systems(
data and software applications so that end users can reap the 8enefits across
a #ariety of equipment( F+he central challenge for equipment manufacturers
and dealers is to pro#ide a differentiated telematics solution while addressing
the end customer$s percei#ed need for standards*
?* 5ocus on tapping the rural areas and unco#ered one$s to increase the
market cap*
21*+o deal with the competition the suppliers ha#e to come up with the
customi9ed products and financers ha#e to come up with the new renewed
terms of granting loan 8oth secured and unsecured keeping in mind to ha#e
less B of )P,Cnet performing assetsD*
22* Customer ser#ice should 8e the main focus of suppliers of construction
equipments to ha#e good #alue on the market and to retain the customers*
Page | 96
o$.lu%#o$
+he following #ital conclusions were deri#ed.
+he construction equipment industry has a wide scope ahead in future* ,s the
Indian infrastructure( industrial( and real estate sectors are e6periencing
strong capacity growth* It is 8elie#ed that this in#estment 8oom is dri#ing
strong growth in the industry* :stimated I)R3>( 3=0 8illion worth of
construction opportunities in India for the ne6t fi#e years( representing a
C,GR of /1B*
,s per the respondents amongst the suppliers the sales still going to 8e a little
stagnant 8ut will impro#e 8y the end of this year*
+he speedy ad#ancement in the construction industry( results in 8etterment
for 8oth the suppliers and financers to ha#e 8etter opportunities to increase
salesIdis8ursement and re#enue*
!oth the suppliers and financers to work in coordination with each other as the
nature of 8usiness they operate in( is of complementary nature* +he demand
for equipments with suppliers helps financers to fund these equipments*
+he suppliers deal with the competition 8y catering to the needs of the
customers on timely 8asis and pro#ide them with the 8etter and timely after
Sales ser#ices*
Page | 97
+he equipments operators are gi#en adequate learning of how to operate
these machines efficiently( so as to ha#e more life cycle and 8etter output in
the working areas*
5inancers on the other hand are opening up new funding schemes with
respect to fund not only e#ery construction equipment 8ut also the materials
and other aggregates used on the working site*
+hus 8oth the financers and suppliers ha#e good potential in hand and are on the
#erge of 8ecoming one of the key contri8utors in the economic income*
PROESS MAPPING OF FLO? OF FUNDS
STEP 3, KNO? YOUR USTOMER
, 8usiness does not want to make the wrong decisions when looking at any type of
customer( 8e it an indi#idual or a corporate( and especially at times of #olatile economic
conditions and when e6ploring new 8usiness in emerging markets* Good quality &$o9 you+
.u%to)(+ processes will ensure that a 8usiness knows the source of wealth an indi#idual
8rings to them( as well as the identity and 8ackground of the shareholders and key principals
8ehind a corporate entity or joint #enture* +his pro#ides two key 8enefits for the risk4aware
financial 8usiness K first( comfort that the firm is not e6posing itself to e6cessi#e risk of 8eing
used 8y criminals to launder the Proceeds of CrimeP and second Cand equally importantD(
sufficiently detailed knowledge of the customer$s source of wealth and financial position to 8e
a8le to sell products which are appropriate and which help the customer and the firm to
make money*
Page | 98
AJC is an acronym for RAnow your CustomerR( a term commonly used for Customer
Identification Process*
2* +he documents required to 8e su8mitted along with the AJC application form are.
To9"+d% N")( p+oof P!oto Id($t#f#."t#o$ To9"+d% "dd+(%% p+oof
2* Passport where the address differs 2* +elephone !ill
/* "oter$s Identity Card /* !ank account statement
3* P,) Card 3*
IncomeIEealth ta6 assessment
order
>* ri#ing 'icense >* Credit Card Statement
0* Go#t* Iefence I card 0* :lectricity !ill
<* I cards of reputed employers <* Ration Card
@* 'etter from a recogni9ed pu8lic authority or
pu8lic ser#ant #erifying the identity and
residence of the customer
@* 'etter from employer
In addition to a8o#e
2D , recent passport si9e photograph is also required*
/D ,ge proof
3D Sta8ility proof
>D +hird party declaration
STEP 0, REDIT APPRAISAL MEMORANDUM
BUSINESS PERSPETIVE,
,D !rief a8out company includes introduction( product range( 8rief of
manufacturing process ( organi9ation structure details and small description
of 8oard of directors*
!D !ackground of promoters
Page | 99
CD etail a8out group companies includes no* of companies( nature of work
undertaken( #aluation( funding source and reason for floating* major
principals( opinion( targets and su84 contracting*
D Current requirements include detail of assets( #alue and sites location*
:D Company assets detail
5D Company 8usiness model includes
GD SE;+ analysis includes summary of strength( weakness( opportunities and
threats of the company*
-D +ransaction analysis includes analysis of all financial statements( 8ank
statements( auditor$s details( company de8t details*
ID Industry analysis
7D Project analysis
AD Product analysis
'D References check list
I$.o)( <(+#f#."t#o$
Proof of :arnings.
o Recent pay stu8 C +E; M;)+-SD
o +a6 returns for the past two years
o "erified 'ast three months 8ank statement of those accounts in which salary
gets credited*
,ny additional incomeP for e6ample.
o Social Security
o ;#ertime 8onus
o Commission
o Passi#e income Cinterest incomeD
o "eteranQs !enefits
Proof of :arnings Cif self4employedD.
o Profit and loss statements
o +a6 returns for current year and pre#ious two years
Page | 100
A%%(t V(+#f#."t#o$
,ddress of oneQs !ank !ranch
o !ank account num8ers
o Checking and sa#ings account statements for the pre#ious /43 months
Sa#ings 8onds ( stocks or in#estments and their appro6imate market #alues
Copies of titles to any motor #ehicles that are paid in full
D(/t #$fo+)"t#o$
INDIVIDUAL PERSPETIVE
Credit card 8ills for the past few 8illing periods
;ther consumer de8tP for e6ample.
o Car 'oans
o 5urniture 'oans
o Student 'oans
o ;ther personal and cosigned installment loans with creditor addresses and
phone num8ers
:#idence of mortgage andIor rental payments
Copies of alimony or child support
is8ursement request letter*
BUSINESS PERSPETIVE
-istory of pre#ious loan taken
Pre#ious loan repayment analysis
aD :+R Ce6cellent track recordD consider a#erage delay 1 to 0 days
8D G+RCgood track recordD consider a#erage delay of 0 to 20 days
cD P+R C poor track recordD consider a#erage delay of a8o#e 20
Payment check details
Page | 101
STEP 4, DOUMENTATION
C,M report is required
is8ursement request letter
ocuments checklist in agreement includes .4
Company P,) Card
Company address proof
irector$s I and ,ddress proof
M;,Cmemorandum of associationD
,;,Carticle of associationD
!oard of resolution
In case of partnership firm partnership deed is required*
,ll PC to 8e kept in en#elopes* 5irst and last P;S+ ,+: C-:G%: photocopy to
8e kept with pdc co#ering letter*
elie#ery order( performa in#oice( in#oice( insurance and margin money receipt
papers*
Repayment schedule
Page | 102
D()"$d P+o)#%%o+y $ot(*
, promissory note is a contract* Ehen your company signs a promissory note( it promises to
repay to the lender a certain amount of money( at a certain time( and according to certain
terms and conditions* , promissory note may 8e unsecured or secured*If a promissory note
is unsecured( the lender is looking only to your companyQs cash flow and profits for
repayment of the loan*
If a loan is secured( the lender still looks to your companyQs cash flow and profit for
repayment of the loan( 8ut if the company does not pay( the lender looks to the security or
RcollateralR as a secondary source of repayment*
S(.u+#ty "'+(()($t* , security agreement gi#es the lender a Rsecurity interestR in specific
personal property owned 8y your company* +hat means that your company pledges that
property as RcollateralR for the loan* If your company does not repay the loan as required( the
lender can sei9e the Rcollateral(R sell it( and apply the proceeds to your loan* +he lender may
take Rall assetsR of your 8usiness Ce#erything your company ownsD as collateral* Sometimes
the lender requires only certain assets as collateral( such as in#entory and accounts
recei#a8le or specific #ehicles or equipment*
RPersonal propertyR means all property owned 8y your company other than real estate*
Mo+t'"'(* , mortgage gi#es the lender a security interest in real property owned 8y your
company* +hat means that your company pledges the real property as collateral for the loan*
If your company does not repay the loan( the lender can foreclose on the real property( sell
it( and apply the proceeds to your loan*
RReal propertyR means real estate owned 8y your company*
Lo"$ o+ .+(d#t "'+(()($t If your companyQs loan is fairly large( the lender may require a
loan or credit agreement* , loan agreement contains terms and conditions for your loan in
addition to those contained in the promissory note( security agreement( or mortgage*
Common pro#isions in a loan agreement include pro#isions regarding the lenderQs
commitment to lend( repayment and note terms( things that must happen 8efore the lender is
o8ligated to ad#ance funds( representations and warranties( agreements 8y the 8orrower to
take or not take certain actions( and e#ents of default*
, personal guarantee from the 8orrower* Eith or without collateral( you may still need to
personally guarantee your 8usiness loan( especially for a startup* +his means that you must
promise to repay the loan if the 8usiness cannot* , personal guarantee is still 8inding( e#en if
the 8usiness is a corporation( ''C( or other 8usiness entity that is separate from the owner
Page | 103
Gu"+"$to+% "'+(()($t
Means an agreement in writing signed 8y the guarantor under which the
guarantor undertakes( upon the default of another person named in the
agreement in paying a de8t or a de8t of a class of de8ts specified in the
agreement
Specified de8t
Ehere in the 8ond the guarantor undertakes
CaD to pay only a specified de8t of the 8ondeeP or
C8D to pay a sum of money upon default of the 8ondee in paying a specified
de8tP
nothing in this ,ct makes the guarantor lia8le for payment of any de8t other than the de8t
so specified
STEP C, E;EUTION OF LOANS
,D is8ursement Process4
Signed 'oan agreement 8y the customer with all required
ocuments*
Receipt of is8ursement request on the customer$s company
letterhead along with PerformaI ;riginal In#oice*
+he is8ursement request is authori9ed 8y marketing*
ocuments sent to 8ack officeCaccount departmentD for
,uthori9ing the dis8ursement*
Page | 104
+he !ack office checks whether it is as per sanction and all the
necessary documents are collected from client & then authori9e the
dis8ursement*
!D +enure of loan repayment*
CD Repayment schedule includes cheque no* date of payment of each
month( distri8ution of equal monthly installment into principle and
interest amount*
D Mode of payment includes postdated cheque ( cash( and demand draft*
STEP 1, REOVERY AND ATION TAKEN FOR LOAN REOVERY
,D In case of default of payments the first step is to send a legal notice to 8ring
in their knowledge a8out the default payments made 8y them and asking the
reason for the same* ,naly9ing the risk attached to the customer the further
legal action is taken*
S:C 23= ishonor of cheque for insufficiency( etc*( of funds in the accounts
Ehere any cheque drawn 8y a person on an account maintained 8y him with a
8anker for payment of any amount of money to another person from out of that
account for the discharge( in whole or in part( of any de8t or other lia8ility( is returned
8y the 8ank unpaid( either 8ecause of the amount of money standing to the credit of
that account is insufficient to honor the cheque or that it e6ceeds the amount
arranged to 8e paid from that account 8y an agreement made with that 8ank( such
person shall 8e deemed to ha#e committed an offence and shall without prejudice to
any other pro#isions of this ,ct( 8e punished with imprisonment for TRa term which
may e6tend to two yearRS( or with fine which may e6tend to twice the amount of the
cheque( or with 8oth.
Pro#ided that nothing contained in this section shall apply unless4
CaD +he cheque has 8een presented to the 8ank within a period of si6 months from
the date on which it is drawn or within the period of its #alidity( whiche#er is earlier*
C8D +he payee or the holder induce course of the cheque( as the case may 8e( makes
a demand for the payment of the said amount of money 8y gi#ing a notice( in writing(
to the drawer( of the cheque( TRwithin thirty daysRS of the receipt of information 8y him
from the 8ank regarding the return of the cheques as unpaid( and
Page | 105
CcD +he drawer of such cheque fails to make the payment of the said amount of
money to the payee or( as the case may 8e( to the holder in due course of the
cheque( within fifteen days of the receipt of the said notice*
:6planation. 5or the purpose of this section( Rde8t or other lia8ilityR means a legally
enforcea8le de8t or other lia8ilityS*
S:C ? ;5 ,R!I+R,+I;) ,C+
,R!I+R,+I;) A+/#t+"t#o$( a form of alternati#e dispute resolution C,RD( is a legal
technique for the resolution of disputes outside the courts( wherein the parties to a
dispute refer it to one or more persons Cthe Rar8itratorsR( Rar8itersR or Rar8itral
tri8unalRD( 8y whose decision Cthe RawardRD they agree to 8e 8ound* It is a settlement
technique in which a third party re#iews the case and imposes a decision that is
legally 8inding for 8oth sides*
;ther forms of ,R include mediation Ca form of settlement negotiation facilitated 8y
a neutral third partyD and non48inding resolution 8y e6perts* ,r8itration is most
commonly used for the resolution of commercial disputes( particularly in the conte6t
of international commercial transactions* +he use of ar8itration is far more
contro#ersial in consumer and employment matters( where ar8itration is not #oluntary
8ut is instead imposed on consumers or employees through fine4print contracts(
denying indi#iduals their right to access the courts*
,r8itration can 8e either #oluntary or mandatory and can 8e either 8inding or non4
8inding* )on48inding ar8itration is( on the surface( similar to mediation* -owe#er( the
principal distinction is that whereas a mediator will try to help the parties find a middle
ground on which to compromise( the Cnon48indingD ar8itrator remains totally remo#ed
from the settlement process and will only gi#e a determination of lia8ility and( if
appropriate( an indication of the quantum of damages paya8le*
Page | 106
STEP F, LOSURE OF AOUNTS
Closure of accounts is the last step of the process of flow of funding this steps comes into
the picture when the relationship 8etween the customer and the financial organi9ation
touches the end of the running agreement i*e* when the customer has made all the
repayments along with the other terms and condition* the further following step taken*
Statement of account4It contains name of the customer( product type product detail(
tenure of the term loan( repayment schedule defines whether the payments had 8een
made on time or not*
;CCo#er due chargesD4whene#er the customer had not made the payment in time
the company charged an e6tra amount known as o#erdue charges in financial
industry the charges #aries from 2=43<B
5inal noc along with all the required documents Ccancellation of hypothecation
letterCform 30D ( security postdated cheque( original in#oices( etc*D
Fo+(.lo%u+( of "..ou$t%
It means closure of accounts 8efore its normal e6piry* )ormal the request comes
from customers( who are interested to close the accounts prior to normal e6piry* +he
reasons of such closure are the sufficient cash flow of the customers*
Page | 107
R(f(+($.(%,
2* www*ltfinance*com
/* www*8usinessfinance *com
3* www*constructionequipmentfinancing *com
>* www*financiale6press*com
0* !usiness +oday
<* !usiness 'ine
@* )aresh Malhotra( Research Methodology
=* C*R* Aothari( Research Methodology
Page | 108

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