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INTRODUCTION
INTRODUCTION
1. INTRODUCTION
Organizational study is done in order for the purpose of acquiring practical knowledge of
working and functioning of the company. It shows how the different departments in an
organization work and wins as a single unit. V-Guard industry is a company which has
created a niche for itself and has been nurtured by quality consciousness, passion for hard
work and will to succeed. The organizational study was undertaken mainly to understand the
department function of V-Guard Industries ltd. Established in the year 1977, from the vision
of one man, Kochouseph Chittilappilly. V-Guard is nurtured by quality consciousness,
passion for hard work and the will to succeed. V-Guards product and service range deals
into various range of products which cater the requirements of consumer durable industry,
textiles, entertainment, and agriculture and construction sector of the country.
V-Guard with its diversified products has a strong distribution & marketing channel in small
towns across India, which helps in tapping the rural and interior market. The growth of all the
products which the company deals with is closely linked to the economic development of the
country. Our country is thriving to progress further and aim to convert her as a developed
nation. To attain this objective, the development of the entire core sector like infrastructure,
power, construction, automobiles, consumer durables etc is essential and this in turn expected
to augment the growth of corporate sector of a country as a whole. As the economy is
growing in a faster manner, the disposable income of the people are also increasing and most
of the population is brought under the spectrum for spending for housing &white goods.
Importantly, the aspiration to own luxury goods is also seen increasing and this has resulted
in a revolution for consumer durables. The company is confident of capitalizing all these
factors and increasing its market presence across the country with focus on penetrating the
rural markets. Importance is given to maintain the quality of the products and make
improvements, wherever the same is required.
V-Guard industry is a company which has created a niche for itself and has been nurtured by
quality consciousness, passion for hard work and will to succeed. The organizational study
was undertaken mainly to study the department functions of V-Guard Industries ltd. V-Guard
is nurtured by quality consciousness, passion for hard work and the will to succeed. V-Guard
product range deals into various ranges of products which cater the requirements of consumer
durable industry, agriculture and construction sectors of the country. V-Guard with its
diversified products has a strong distribution and marketing channel in small towns across
India, which helps in tapping the rural and the interior market.
Secondary Data:
The major source of secondary data includes company manual brochures circulars, annual
report and various other internal documents. In addition to this related Articles from journals,
books, magazines, internet were referred.
INDUSTRIAL PROFILE
INDUSTRIAL PROFILE
Like every other industrial sector in India, the Indian electronic industry too is slowly
emerging from out of its protective cover. For far too long has Indian industry remained
shackled and consequently inward looking? Over the past fifty years there was no exposure to
global players and competition, with the result that industry grew up in a sheltered
environment, dependent on the govt. for everything, from licenses to protection to tariffs.
Each one of these intervention was aimed at securing protection for oneself and ensuring
growth of ones own org. at the cost of industry and nation at large. Lack of global
competition encouraged a cost plus approach, where every conceivable cost increase was
passed on to the customer. There was thus no motivation to reduce costs.
The global electrical and electronics centers around various adjunct sector. Few of them are
Electronic Computers and Office Equipments, Telecommunications, Consumer Electronics
as well as Industrial Electronics. This particular industry is engaged in designing,
manufacturing, marketing, supporting, selling and distributing of broad range of electronic
components such as bolts, clamps, fasteners, lighting, semi-conductors, integrated circuits,
microprocessors, cables and wires, switches, sensors, keyboards, sockets, sonar devices, test
and inspection equipment etc.
Since the last decade India has witnessed what global players have achieved & what they are
capable of achieving. We are becoming aware of competition on our turf. In this scenario,
every company complains of increased competition, lower order books & shrinking margins.
The Indian electrical & electronic industry is of course further besieged by the fact that there
is a dearth of business on account of lack of investment in the power infrastructure.
also occupies the largest market share with about 29% in the global market. Sony
Corporation, Apple Inc., Sharp Corporation, Toshiba Corporation, Matsushita Electric
Industrial Co. Ltd., LG Electronics Inc., Royal Philips Electronics N.V, SANYO Electric Co.
Ltd., and Samsung Electronics Co. Limited are the key players of electrical and electronic
products in the world market. In Asia Pacific region, Japan, Korea China, Taiwan, India and
Singapore are the principal manufacturing hubs for electrical and electronics products. China
is becoming the manufacturing region of electronic products on the globe.
The worldwide electrical and electronics industry is experiencing phenomenal and
remarkable changes these days. The worldwide electronics industry is distinguished by fast
technological advances and has grown rapidly than most other industries over the past 30
years. Voluminous production is slowly and gradually moving towards low cost destinations,
which in turn are the markets that offer the most long-term potential.
In today's age of competition, electronic and electrical products manufacturing companies are
under constant pressure to develop new and innovative products in shorter time cycles, at
reduced cost, and with improved quality.
The global electronics industry is driven by demand for the products, which are durable,
lighter, cheaper, and better than the ones, they replace. To meet up the growing market
demands, industry is slowly and gradually shifting its base to Asia Pacific countries, which is
now the prominent source of electronic components and is soon going to turn out to be the
primary destination for consumer electronics. There is an estimation that within 20 years, two
third of the electronics industry will be four times as big as today and half of it will move into
Asia. Foreign collaborations and mergers are on a rise.
A new wave of industrialization is throwing up several business opportunities for electrical
and electronics market to further its market. There is a vast growth in the sales of computers,
software and networking products. Younger generation is increasing becoming tech savvy
and spending huge amount of money on digital products such as MP3 players, DVD players,
CD players, mobile phones, speakers, headphones, shuffle, nano etc. The future seems
prosperous for this electrical & electronics industry in terms of the expected surge in global
demand and upsurge in investments. Many trends such as over-capacity in developed
markets, globalization, technology advances, regulation and environmental consideration,
market fragmentation and product proliferation will lead to the accelerated growth of this
sector.
2.1.2 INDIAN SCENARIO
The Electronics Industry in India took off around 1965 with an orientation towards space and
defense technologies. This was rigidly controlled and initiated by the government. This was
followed by developments in consumer electronics mainly with transistor radios, Black &
White TV, Calculators, and other audio products. Color Televisions soon followed. In 1982-a
significant year in the history of television in India - the government allowed thousands of
color TV sets to be imported into the country to coincide with the broadcast of Asian Games
in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were
DCSMAT BUSINESS SCHOOL, VAGAMONPage 7
succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden
period for electronics during which the industry witnessed continuous and rapid growth.
From 1991 onwards, there was first an economic crises triggered by the Gulf War which was
followed by political and economic uncertainties within the country.
Pressure on the electronics industry remained though growth and developments have
continued with digitalization in all sectors, and more recently the trend towards convergence
of technologies. After the software boom in mid 1990s India's focus shifted to software.
While the hardware sector was treated with indifference by successive governments.
Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to
international competition. In 1997, the ITA agreement was signed at the WTO where India
committed itself to total elimination of all customs duties on IT hardware by 2005.
In recent years the electronic industry is growing at a brisk pace. The largest segment is the
consumer electronics segment. While its largest export segment is of components. The
electronic industry in India constitutes just 0.7 per cent of the global electronic industry.
Hence it is miniscule by international comparison. However the demand in the Indian market
is growing rapidly and investments are flowing in to augment manufacturing capacity. The
output of the Electronic Hardware Industry in India is worth US$11.6 Billion at present. India
is also an exporter of a vast range of electronic components and products for the following
segments
a. Display technologies
b. Entertainment electronics
c. Optical Storage devices
d. Passive components
e. Electromechanical components
f. Telecom equipment
g. Transmission & Signaling equipment
h. Semiconductor designing
i. Electronic Manufacturing Services (EMS)
This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil,
Nokia, and many more have made large investments to access the Indian market. In consumer
electronics Korean companies such as LG and Samsung have made commitments by
establishing large manufacturing facilities and now enjoy a significant share in the growing
market for products such as Televisions, CD/DVD Players, Audio equipment and other
entertainment products.
with advanced technology. Their constant, hard-driving research has paid off time and again
we continue to develop innovative products that make life easier.
COMPANY PROFILE
YEAR OF COMMENCEMENT
: 1977
FOUNDER
: KOCHOUSEPH CHITTILAPILLY
MANAGING DIRECTOR
: MITHUN CHITTILAPILLY
PLACE
: VENNALA
DISTRICT
: ERNAKULAM
COUNTRY
: INDIA
TYPE OF ORGANIZATION
NATURE OF BUSINESS
NAME OF PRODUCT
: V-GUARD
NO. OF EMPLOYEES
: 1867
DEALERS
: 9500
SISTER CONCERNS
: V-STAR, WONDERLA,
VEEGALAND DEVELOPERS.
PEAK COMPETITORS
: HAVELLS,
FINOLEX, CROMPTON
GREAVES
LOGO
standing presence in the Indian market and with constant improvement in performance of
products, augmented with quality, consumers recognize our brand, company believe that they
are enjoying considerable brand equity and reliability in the market.
Indias largest manufacturer of voltage stabilizer enjoys brand popularity in Kerala, Tamil
Nadu, Port Blair, Karnataka, Goa, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan, Madhya
Pradesh, Chhattisgarh, Orissa, Jharkhand, West Bengal, Uttar Pradesh, Delhi, Haryana,
Punjab, etc. and is now making a global presence with its increasing exports and markets
spread over the world. At V-GUARD, success is measured not in terms of financial
considerations, but in terms of customer satisfaction and quality that is built into every
product. The value of commitment to quality is also cherished by more than 1843 staff
members and over 4000 workers engaged in the production process either directly or
indirectly.
The V-Guard brand name is a household name in India and helped a lot to promote other
products. At V-Guard, Quality is not an accident but a continuous process, beginning with
the careful selection of only the finest components through the best sources. From hi-tech
product designs to stringent quality checks at every stage of the manufacturing process, to
ensure world class performance, V-GUARDs passion for perfection gets first priority. Then
comes the service to the customers. At V-Guard success is measured in terms of customer
satisfaction. The pricing of the product also plays a major role in marketing. Everybody
knows a superior product needs a reasonably good pricing. V-GUARD does not believe in
creating an artificial demand for their product. Before a product is advertised it is made
available in the market so as to avoid inconvenience and confusion to the customer.
technical and account staff. The technical supervisor is responsible for servicing the technical
and after-sales requirements of the distributors and dealers in the branch's command area. It is
exceptionally noticeable from the organization structure that Chittilapally has placed an AGM
in charge of new projects to exploit, coordinate commission and institutionalize new projects.
2.2.3 CORPORATE VISION
LET US ENDEAVOUR TO MAKE V-GUARD A TRUSTED HOUSEHOLD NAME
This is achieved by:
Creating a distinct status for themselves in the electrical, electronic home appliances
and electro mechanical markets.
Keeping shareholder interests at the core of business and put customer satisfaction on
top of the agenda.
Driving growth through both organic and inorganic initiatives.
VICE CHAIRMAN
MANAGING DIRECTOR
DIRECTOR
: Mr. C J GERORGE
DIRECTOR
: Mr. A K NAIR
17. 2005 Launched Solar Water Heaters with Evacuated Glass Tube Collector
Technology.2006 Launched V-Guard Fans. Branch office at Bhubaneswar, Pune &
Hubli.
18. 2007 New Branch offices at Vijayawada, Bhopal, Kala Amb, Vadodara, Kanpur,
Nagpur, Raipur, Jamshedpur, Kolkata, Ludhiana and Jaipur. Turnover crossed INR
2400 Million Mark. V-Guard Industries became a Public Limited Company.
19. 2008 Listed in BSE & NSE. Launched Inverters & LT Cables. New Factories at
Coimbatore & Kashipur established.
20. 2009 New LT Cable Factories at Kashipur and Coimbatore became operational and
Opened Manufacturing facility for Water Heaters and Fan at Kalaamb, HP.
21. 2010 Turnover Crosses 4600 million mark.
22. 2011 turnover crosses 7263.5 million marks.
23. 2011 New branch offices in Ghaziabad, Dehradun, Patna and Chandigarh.
24. 2012 turnover crosses 10,000 million marks.
25. 2012 April1st board of V-Guard restructured with, Mr. KOCHUSEPH
CHITTILAPILLY as chairman and Mr. MITHUN CHITTILAPILLY as Managing
Director.
26. 2013 introduced mixer-grinder in market.
27. 2013 turnover 1350 crore.
28. 2014 turnover 1500 crore.
Board of Control for Orphanages and other Charitable Homes, Kerala. True to its name, all
facilities are provided free of cost and it is a haven of peace and tranquillity where the
inmates spend the evening of their lives in dignity and comfort.
Shanthimandiram celebrated its first anniversary on 29th May 2010 along with the Inmates.
The function started with the blessings of Fr. Franko Kavalakkatt, Vicar, Parappur Forona
Church. Various cultural programmes have been performed by the inmates of
Shanthimandiram. The function got enriched with the Folk dance by Managing Trustee and
family. The sisters of Shanthimandiram also involved with the cultural programmes.
Social welfare fund- an employee CSR activity
Social welfare consciousness being embedded in V-Guard work culture has motivated the
employees to join hands in reaching out in charity. The Social Welfare Fund was created out
of the goodwill of the employees who collate funds and donate towards cost of medicines for
the poor in the cancer ward at the Ernakulum General Hospital.
Stabilizer SHG activity
Since its inception V-Guard has been providing a mutually beneficial income generating
option to women. Women who have grouped themselves to form SHGs (Self Help Groups)
are distributed assembly kits for voltage stabilizers. An efficient distribution and collection
system networks the women with the company and has been a resounding success for
decades. It provides a stable income for their households and in turn emancipation from
poverty.
2.3.2COMPETITORS OF V GUARD
Much of the market in which V-Guard is operating in is unorganized and fragmented with
many small and medium-sized companies. They face substantial competition for each of the
products from other manufacturers in domestic or divisions of large multinational
corporations, as well as domestic competitors.
They compete with other manufacturers on the basis of product range, product quality,
product price, after sales service including factors, based on reputation, regional needs, and
customer convenience. Their competition varies for each of products and regions. They have
to compete with different players in different products in different regions. Overall, our VGuards major competitors for the product stabilizer are PREMIER, V-CARE, SHALIMAR,
EVEREST, SAFEGUARD ETC, for the product cable are FINOLEX, POLYCAB,
ANCHOR, etc, for the product pump are CROMPTON CREAVES, KIRLOSKAR, TEXMO,
etc. Major competition for the product electric water heaters comes in the form of players
such as RACOLD, BAJAJ, AND VENUS etc. Their competitor for product Solar Water
Heaters is TATA BP.
They also have competition in batteries and inverters in inverters V-guard, LUMINOUS, SUKAM, VIDEOCON, MICROTEK, APC Inverter and batteries are EXIDE, LUMINOUS,
PRESTOLITE, AMARON, OKAYA, V-Guard. They also face competition from
CROMPTON GREAVES, HAVELLS AND POLAR for the product Electric Fans and APC
for product UPS.
However competition levels vary for each product in each region. In addition, the market
share keeps changing constantly with advent of new technologies and products. In present
competitive environment, companies which develop effective, improved and reliable home
appliances and have strong customer focus in the form providing after sales services will be
increasingly differentiated from the others in the field.
third of the electronics industry will be four times as big as today and half of it will move into
Asia.
Foreign collaborations and mergers are on a rise. A new wave of industrialization is throwing
up several business opportunities for electrical and electronics market to further its market.
There is a vast growth in the sales of computers, software and networking products. Younger
generation is increasing becoming tech savvy and spending huge amount of money on digital
products such as MP3 players, DVD players, CD players, mobile phones, speakers,
headphones, shuffle, nano etc.
The future seems prosperous for this electrical & electronics industry in terms of the expected
surge in global demand and upsurge in investments. Many trends such as over-capacity in
developed markets, globalization, technology advances, regulation and environmental
consideration, market fragmentation and product proliferation will lead to the accelerated
growth of this sector.
PRODUCT PROFILE
5) Water Heaters
6) Solar Water Heaters.
7) UPS.
8) Digital UPS
9) Electric Fans.
10) Switch gears
11) Induction cooker
12) Mixer grinder.
Pumps:
During the year 1992 Mr. KOCHOUSEPH CHITTILAPPILLY entered the electromechanical arena by marketing mono-block pumps under the brand name V-Guard in the
year 1992.
The Electro Mechanical Works Division at Peelamedu, Coimbatore was set up during the
year 2000 for R& D and pilot production plant of Pumps. These pumps ideally find
application in domestic as well as for agricultural purposes. The R& D and product
development team depending on the feedback and demand received from the marketing team
develop product after testing on various parameters and condition. These products are then
introduced in the market to test against the field conditions. This period can anywhere be
between 4-5 months during which the modifications and improvement on the product are
made as per the market feedback and field report. As part of the quality drive we have placed
our quality assurance team at the units who scan each and every product before embossing it
with our brand. V Guard pumps commands good demand in Southern parts of India.
Its products are categorized under 3 heads:
1. Domestic Pumps
Regenerative Self Prime Pumps
Self-Prime Slow Speed Pumps
DCSMAT BUSINESS SCHOOL, VAGAMONPage 25
2. Agricultural Pumps
Centrifugal Monoblock Pumps
Open Well Submersible Pumps
Bore Well Submersible Pumps
3. Electric Motors
Single Phase Motor
Single Phase Commercial Motor
Three Phase Motor
Cables:
As part of diversifying plans, Company started manufacturing Insulated Electric Cables in the
year 1999 by setting up a factory at Coimbatore in Tamil Nadu with an initial investment of
Rs. 1500 lakh . V-Guards cables are manufactured in conformity with ISI standards and is
ISO 9001 certified with a fully-automated manufacturing unit. All major machineries
required for production of cables have been imported. ISI marked cables comes with High
Flexible Triple Extrusion Technology and length assurance seal at every 90 meters. Cables do
not follow the business model which is followed by stabilizers and pumps. It is manufactured
in their own manufacturing unit located at Coimbatore. As the construction industry is
expected to grow further, efforts shall be made to procure more project / institutional orders.
Water Heaters:
Electric water Heaters is another range of product unveiled by V-GUARD during the year
1997. V-guard offers a wide range of instant and storage model water heaters that combine
quality and technology. V-Guard water heaters are available in 28 different shapes and sizes.
1. Instant Geysers
We produce 2 kind of instant geysers. They are:
Sprinhot series
Sprinhot Metro Series
2. Storage Geysers
We produce 9 models of instant geysers. They are:
Sprinhot Plus
Steamer Plus MSV
Steamer Plus MS
Krystal Plus
Steamer
Steamer Plus EPAC
Steamer Plus
Steamer Plus MSH
Gas Geysers
3. Immersion heater
4. Solar Water Heater
Concern for the planet through efficient use of technology is the idea behind this product.
Evacuated Tube Collector
Flat Plate Collector
Room Heaters
V-Guards solar water heaters with international ETC (Evacuated Tube Collector) technology
are way ahead of the competition, in terms of quality, technology. Approved by Ministry Of
New and Renewable Energy-Guard solar heaters are completely eco-friendly and nonpolluting. They are available in 100, 125, 150, 200, 300, 500,1000,2000,3000,4000 and 5000
LPD capacities. Manufacturing takes place at ISO Certified factory in Coimbatore.
UPS (Uninterrupted Power Supply) is a power conditioning equipment that allows for a
smooth changeover to mains operation on resumption of power. It also has the capability of
taking care of the problems like, burn outs, voltage sags, voltage surges, transient surges,
impulses, noises and harmonic distortions.
Normally an UPS consists of a battery, a battery charger/ converter and an inverter. The
battery charger has an input isolation/step-down transformer whose output is rectified to get a
required DC output, which is used to charge the battery. The same output is used, in most
cases, as input for the inverter, which converts DC into AC output.
This product UPS was also introduced to the market in the year 1997. Currently V-guard
offers a wide range of UPS which comes with advance features like micro-controller based
compact design, Off-mode Battery charging, High voltage protection, ZPD technology, PID
controlled PWM-MOSFET technology, intelligent audio indication and generator compatible.
UPS are available in 13 different models. Major competition comes in the form of players
such as Numeric, Wipro, APC etc. Your Company is taking steps to increase the range of
models in the category of Line Interactive UPS and online UPS for wide range of
applications as a strategy for increasing sales.
UPS Line
1. Interactive UPS
SLENDER 600
SLENDER PLUS 600
Legend Dx 600
Legend Dx 800
Legend Dx 1000
ROYAL PLUS
120 EB
2. Online UPS
Enermax Dx Series
Veyon Dx Series (Single Phase-Single Phase)
Veyon Dx Series (Three Phase-Single Phase)
Veyon Dx Series (Three Phase-Three Phase)
V-Guard digital UPS is equipped with advanced Micro-controller based line interactive
Technology and a host of features like MOSFET based Power Stage with PWM output,
FRCM with UST (Uni Polar Switching Technology) for uninterrupted back-up during power
failure. Its features are;
Overload/ short circuit protection
Battery dup discharge protection
Battery reserve polarity protection.
Electric Fans:
Company in its urge to diversify introduced electric fans during the year 2005. V-Guard fans
come with High-Angle Technology and specially designed blades that facilitate full
coverage of cool breeze in the entire room. Company have been sourcing this product from
small and medium manufacturers without compromising on the quality norms before
marketing it under the brand.. Presently 22 models are competing with big players such as
Crompton, Khaitan, Havells, etc.
Sale of the product is highly dependent on the seasonality and also the growth in the realty
sector. If the climatic conditions are not favorable, the sale may get affected. Moreover,
competition from the unorganized sector is also a threat. To overcome the competition from
the unorganized sector, your Company is involved in increasing its brand awareness by doing
below the Line activities. With continuous R&D and with introduction of more models of
energy efficient fans, your Company is confident of increasing its market share and
profitability in the coming year.
Sleek, elegant looks, efficient cooling, longer life and consistent performance.
1. Decorative
2. Non Decorative
3. Table Fans
4. Pedestal
5. Wall fans
6. Exhaust Shutter Type
7. Tower fans
8. Box fans
9. Exhaust-Light duty
10. Exhaust-Medium duty
11. Exhaust-In & out reverse
12. Exhaust-High speed
Switchgears:
The dependable lifeline for your home. Say goodbye to electric shocks.
MCB
ISOLATOR
RCCB
DB
Induction Cooker:
Energy efficient with multiple cooking modes and feather/soft touch controls.
Its features;
Mixer grinder:
Features
ORGANISATION STRUCTURE
ORGANISATIONAL STRUCTURE
1. Finance/Accounts Department
2. Corporate Communication Department
3. Electro Mechanical Department
4. Customer Service Department
5. Human Resource and Administrative Department
6. Mechanical and Electrical Department
7. Marketing Department
8. Supply Chain Department
9. Systems Department
10. Legal Department
11. Electronic and New Project Department
Finance is the life blood of the business. It is required at every stage of the business. Finance
holds the key to human activity can be pursed without financial support. Financial viability is
perhaps the central theme of any business propositions.
Finance may be defined as the science of money. It deals with the principles and method of
obtaining control of money from those who have saved it and administering it by those who
have control of it. The finance department of a business takes responsibility for organizing
the financial and accounting affairs including the preparation and presentation of appropriate
accounts, and the provision of financial information for managers. Managing the finance is a
tedious task in any organization.
Finance department is providing crucial function to the organization. The functions of this
department are of raising funds, investing them in assets and distributing returns earned from
assets to shareholders. The payment process with regard to importing raw material and
machines are facilitating through this departments.
They are preparing funds flow statement on a daily basis. Accounting functions include the
preparation of Trial Balance on yearly basis. They also prepare managerial report regarding
expenditure on travelling, postal, telephone and currier transport.
Financial statement is a collection of data organized according to logical and consistent
accounting procedure. Its purposes are to convey an understanding of some financial aspects
of a business firm. It may show a position at a moment in time, as in a balance sheet, or may
reveal a series of activities over a given period to time, as in the case of an income statement.
Thus, the term financial statements generally refer to the two statements:
I) The position statement or the balance sheet; and
ii) The income statement or the profit or loss account.
V-GUARD is following decentralized account system
A system of accounting under which most of the a/c operations(sometimes including
compilation of the balance & of a/c reports) are done in separate divisions of the enterprise.
Under decentralized accounting the functions of the main accounting office consist of
verifying the accounts of these division, giving instructions to the accounting workers, &
doing the accounting for centralized operations, including compiling the book keeping of
balances & reports. Since the decentralized a/c system reduces the possibility of the division
of a/c labour involved in the a/c & its mechanization & increases the overall volume of a/c
procedures & their cost, it is relatively rarely used in practice. Usually decentralized a/c is
practiced in those sections of an enterprise that encompass a variety of operations ( housing
& utilities, public transportation, capital constructions & other areas) as well as in an
enterprises independent sections territorially separated from its centre.
FUNCTIONS
To check whether accounting system is properly maintained or not.
To see that posting of ledgers, passing of vouchers etc are properly done.
Total analysis of income and expenditure accounts.
Confirmation of balance of deposits, advances, if any.
Preparation of profit and loss account and balance sheet.
Reconciliation of inter unit accounts.
Attending all audits like statutory audit and preparation of all schedules related to
profit and loss account and balance sheet.
Disbursement of wages / salaries.
Scrutiny and approval of funds needed by various department of the organization.
Tax remittance.
The finance department of G Guard Industries Ltd. mainly comprises of four sections namely
costing, general account, statutory and company secretary. Each section is headed by the
respective DGMs. It consists of around 118 employees all over India. Each section is further
divided in to sub-sections to make the various operations more convenient. In order to make
the employees efficient in wide range of activities, the employees are made to work under
various sub-sections.
The bills to be passed related to the organization are handled by the finance team. Bills above
a specified limit only come to the DGM or higher grade for approval. These bills include day
to day expense of the company, travel expense, electric bills, telephone bills etc. bills related
to assets are directly handled by DGM.
FUNCTIONS
The department concentrates on the production part of the organization. It mainly handles the
production activities of its product motors, water pumps, mixer and Grinders, switch gears
and fans. This department also handles the designing of these products. The Research and
Development also comes under this department.
3.3.1 OBJECTIVES
3.3.2 FUNCTIONS
This department is the provision of service to customers before, during and after a purchase.
3.4.1 OBJECTIVES
3.4.2 FUNCTIONS
Organizations ability to meet their customers wants and needs. This organization has
followed certain channels for their services.
1. Service through distributors
2. Service through dealers network
3. Service through franchisee
4. Contact service center
5. Service through technicians
Residual service is the new plan adopted by the company.
1) Customer satisfaction
In this, the organization ensures that all the complaints registered are rectified and solved
with in 24 hrs. They provide their services directly at the customers spot and solve their
issues. They even replace their product if required. The service charges are collected as per
the approved manual.
2) Customer care
As per the company policies, all the details regarding the service terms, warranty details,
service charges etc are to be displayed in front of the service centre. Once the services have
been provided, feedback is collected from the customers so the company can correct the
flaws in their service provided and to provide a better service to their customers. Feedback
related to the quality of the product, after sales service etc is also collected from the dealers
who deal with their product.
3) Customer delight
The very favourable experience of the client of a business when they have received goods or
services that significantly surpasses what they have initially anticipated. Marketing
department can use instances of customer delight to a companys advantage by requesting
referrals and obtaining testimonials from delighted customers that can help attract new
customers.
3.4.5 CHANNELS FOR REGISTERING COMPLAINTS
Through dealers
Directly contact to service centre
Contact through help line
Register the complaints through mail
The HR Department is responsible for the sourcing, training, rewarding, maintenance and
separation of the human resource of the organization. The department co-ordinates with all
other department and cater to human resource requirements. The HR and Administration
DCSMAT BUSINESS SCHOOL, VAGAMONPage 49
department are clubbed together to form a single department headed by the direct
administrator- Senior V.P:-HR & Administration. The departments have separate persons for
making payroll, training, recruitment, and appraisal. In short, Human Resources Department
aims at helping people to acquire competencies required for performing their functions well
and make their organization do well. Human Resource Department in an organization context
is a process where employee of a organization are continuously helped in a planned way to
acquire capabilities required for performing various tasks or functions associates with their
present or future expected roles. Now a days, these departments are otherwise known as
personnel department.
3.5.2 RECRUITMENT
V Guards greatest asset is its employees. It is committed to attracting, retaining and
developing the highest quality and most dedicated work possible in todays market. It strives
to hire and promote people on the basis of their qualification, performance, and abilities, and
is determined to provide a work environment free of any form of discrimination both direct
and indirect, including sexual harassment. While recruiting new employees V Guard takes
adequate care to identify the right candidates. V-Guard focuses on recruiting candidates who
displays a high degree of learnability, i.e. candidate who are open to learn new things and
supply the same in new situations. We also place significant importance on professional
competence, academic excellence, analytical ability, team work, leadership potential,
communication and innovative skills, along with a practical and structured to problem
solving.
DCSMAT BUSINESS SCHOOL, VAGAMONPage 50
The purpose of induction is to induct personnel in to the organization and to make them
familiarize with the functions of various departments. When new candidates are hired, they
are invited for a one week induction and orientation program to corporate office so that they
are acquainted with each and every aspects of the organization. As part of induction program
they also undergo training on motivation, visit amusement park and also a visit to our cable
factory at Coimbatore. All the new joiners have an open interactive session with the top
management including our managing director. A special induction manual was designed for
new joiners together with an induction kit which provide all the necessary details of the
organization, allowances and the facility they are eligible for.
Training Plan
V Guard draws up annual training calendar, highlighting the activities of the year. It also
include discussion with the faculty to decide on the content of the training programmes. The
organization training plan includes technical, functional, covering a wide cross section of
employees, as follows:Development Programs:
Leadership Development Program
Development of top performers through leadership development programs aimed at bringing
up future leaders.
On the growing trajectory on which V Guard is today, there is a strong emphasis on
developing an effective organization that uses its skills in leading and driving its growth.
Here employees are made to undergo coaching sessions for meeting their developmental
requirements enabling to become the real leaders to take the organization to a greater echelon.
High performance by way of performance management is the only guarantees for survival in
an unpredictable and dynamic world. Managers have to continuously motivate their
employees besides considering other factors that enable superiors level of performance.
3.5.6 COMPENSATION
Salary is fixed on the basis of the designation of the employees, qualification and
performance appraisal. Payroll system is followed in the organization and it include bonus,
PF, DA etc. Employee will be provided with 12% PF. Organization provides its employees
with salary based on the salary location which is prepared every month by each department.
The Mechanical and Electrical Department of V Guard Industries Ltd. covers a wide range of
products like Electric Water Heater, Solar Water Heater, Immersion Heater, Room Heater,
Gas Water Heater and Induction Cooker. The overall activities of the department are looked
after by the VP. Among the product under this department, solar water heater is completely
manufactured in V Guard owned manufacturing unit at Coimbatore. The major turnover of
this department is obtained from the sales of Electric Water heater. The software used is ERP
provided by SAP.
3.6.1 OBJECTIVES
To provide the best quality water heaters and fans to the customers.
DCSMAT BUSINESS SCHOOL, VAGAMONPage 55
3.6.2 FUNCTIONS
Quality control staff of this division is primarily involved in checking the quality of goods
before outsourcing them from various outsourcing units. Quality management module in the
SCM division makes use of different total quality management procedures such as quality
function deployment, failure mode analysis etc in order to produce goods as per the market
requirements.
Different inventor softwares used for designing development and analysis of products are as
follows:
ANSIS
AUTOCAT
Marketing is a social and managerial process which involves a range of processes concerned
with finding what the customer want and then providing it for them. The marketing is
responsible for sales and promotions of products among the people so as to have a ready
DCSMAT BUSINESS SCHOOL, VAGAMONPage 57
market for them. A number of promotional measures are in action to maintain an upward
trend in sales of the company product. Both TV and print media are used for brand
communication. Local and English dailies are used for advertisements. Stabilizer, pump set
and solar water heater advertisements find their place in women magazines also. V Star, the
separate garment division advertises mainly in women magazines and TV media. The
marketing department seeks to make sure that the company a marketing focus in everything
that it does. It will work very closely with the production to make sure that new and existing
product development is tied in closely with needs and expectation of the customers.
3.7.1 FUNCTIONS
Determination of marketing goals and formulation of marketing strategy.
Building up of brand value and corporate image.
Planning and supplementing promotional programmes.
Maintaining both customer and dealer satisfaction giving adequate importance
to improve the level of satisfaction continuously.
Planning and supplementing the proposals for fixing and managing changes in
selling prices in the ever changing market.
Selection of appropriate channels for distribution.
The marketing activities of V Guard Industries Ltd. are mainly centered on four functions of
marketing viz. product, price, promotion and placement. These are mainly fulfilled by
department through various personnel engaged in different levels of the organization.
3.7.2 PRODUCTS
V Guard range of product includes Electronic Voltage Stabilizers, Submersible pumps and
Electric Motors, Insulated Electrical Cables (House Wiring & Industrial), Electric Storage &
Instant Water Heaters, Solar Water Heaters, UPS for computers, Electric Fans , Inverters
,batteries and the company also busy with Generation of power through wind mills
3.7.3 PRICE
The price of these product are determined by the company heads, after taking in to account
all the cost involved in the production, the transportation cost, the packing cost and the cost
of manpower and through market research and much discussion.
3.7.4 PROMOTIONS
Every year a budget is set aside solely for advertising expense. V Guard gives a lot of
importance in making their presence felt among the public and also making them aware of
DCSMAT BUSINESS SCHOOL, VAGAMONPage 58
the various product that they have to offer. Promotion consists of all activities aimed at
inducing and motivating customers to buy their product through the following means: Electronics and print media
Dealer meets, Plumber meets and Electricians meets. This is mainly done for
the purpose of product familiarity. Feedback is also collected at such events.
Hoardings, lite and non-lite boards
Acrylic boards
Activities on radio station
Exhibition in campuses like for products like online UPS s
Exhibitions like Vanitha Ice, Vanitha Utsav, Paarpidam and Thrissur Pooram
Branding
Dummy displays in showrooms
Salesmen meet
Offers and gifts during seasons. E.g. Towels gifted with water heater
Wall paintings e.g. Sabarimala routes
Supply chain management spans all movement and storage of raw materials, work in progress
inventory and finished goods from point of origin to point of consumption. It can be viewed
as a pipeline for the efficient and effective flow of products, materials, services, information
and financials from the supplier through the various intermediate organizations or companies
to the customers. The extended enterprise perspective of supply chain management represents
a logical extension of the purchase and business logistics concepts.
It involves a chain of activities starting from procurement of raw materials from suppliers,
consumption of raw materials in the production process to produce finished goods, storage of
finished goods in the inventory and their final dispatch to dealers and from their to
customers. So for this purpose, SCM division has to take care of supplier performance for
ensuring the availability of raw materials in time and with adequate quality, transportation
efficiency for transporting finished goods without any loss or damage, materials used for
production for producing goods with good quality and reliability. The supply chain
management programs integrates topic from manufacturing operations, purchasing,
transportation and physical distribution into a unified program. Successfully SCM, then,
coordinates and integrates all of these activities into a unified process. It embraces and links
all of the partners in the chain.
In V Guard Industries Ltd., SCM is mainly divided in to two units namely the purchase
(inbound material movement) and logistics (outbound material movement) section. The
software used to support SCM activities is ERP by SAP.
3.8.1OBJECTIVES
3.8.2 FUNCTIONS
Purchase functions:It involves determining the need, selecting the suppliers, arriving at the appropriate price and
terms and conditions, issuing the contract or orders and following up to ensure delivery of the
ordered items.
Basic functions:It involves obtaining the proper equipments, materials, suppliers and services in a manner
satisfactory to the need of the organization.
Logistics functions:-
It involves planning, implementation and controlling the efficient and effective flow and
storage of goods, services and related information from point of origin to point of
consumption, for the purpose of confirming to customer requirements. It is not confined to
manufacturing operations alone but relevant to all enterprises including government,
institutions such as hospitals, schools and service organization.
3.8.3 SCOPE
Supply Chain Management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion and logistics management. It also includes the
crucial components of coordination and collaboration with channel partners, who can be
suppliers, intermediaries, third party service providers and customers. In essence, SCM
integrates supply and demand management within and across companies.
3.9 SYSTEM DEPARTMENT
The major function of this department includes offering technical support to the various
softwares installed including SAP. The language used in SAP are Basics for administration
and ABAP for programming. The department also plays an important role in maintaining the
intranet portal for employees through which the employment can view their swipe in/ swipe
out data, apply for leaves, canteen booking and view employee details etc.
3.9.1 OBJECTIVES
The IT department of V Guard Industries ensures:
3.9.2 FUNCTIONS
The main functions that come under this division are as follows:
I.
II.
Systems Administration
Software development and maintenance
3.9.3 IT ORGANIZATION
It mainly consists of 3 sub-teams:
1. IT operation team
Procure hardware, software, maintain AMC with vendors, monitor network.
2. IT technical team
System administration, SAP basis, Application support in SAP (ABAP, BI), Portals(.Net)
3. SAP Functional Team
Specialists in Finance, Costing, Production, Materials, Plant maintenance.
The major software used by systems department are as follows:
SAP
Microsoft Exchange (Mail server)
Microsoft Office
DCSMAT BUSINESS SCHOOL, VAGAMONPage 63
Auto cad
The two database management systems used by this division are as follows:
1. DB2 (DBMS)
2. SQL Server (RDBMS)
The whole of V Guard activities, marketing, finance, HR, production are integrated through
an enterprises resource planning software which is home grown. The data center is at the
head office and its application is centralized. Semantic and MacAfee are the antivirus
softwares installed.
3.10 LEGAL DEPARTMENT
Law department is responsible for providing legal services and advice to the company, its
divisions and employees. The department office faces a great number of different legal
matters. These matters include: business development, contract management, real estate
transactions, customer claims against the company for product damages and defects,
litigation, employment law, sales and leases matters, debt collection, bankruptcy, case
prosecution, and much more. All these activities create the workflow of Legal department.
The following main functions of the legal department can see:
Providing legal advice and guidance
Prosecution of cases in courts and litigation management
Documentation preparation and drafting
3.11) ELECTRONIC AND NEW PRODUCT DEPARTMENT
DCSMAT BUSINESS SCHOOL, VAGAMONPage 64
This department is in charge of coming up with the new and innovative ideas, conducting a
study on feasibility analysis. They mainly handle the activities of their products stabilizers
and UPS. This department includes quality controllers who are appointed at various factories.
They ensure that the processes are being followed as per the instruction from the head office.
They ensure that the quality of the products is uniform with the product of the other factories.
They also approve the components that are being used in the outsourced factories. They are
providing such works to charitable institutions like Cherupushpa electronics, Sengo Pauls
system.
3.11.2 FUNCTIONS:
Production
Production department is in charge of looking in to the production patterns and the processes
that is to be followed in all the factories. They sure that the pattern and the products are
uniform and are according to the requirements.
Product development
The product development department conducts research regarding the feasibility of the new
product that may be implemented by the company.
Product engineering
Product engineering department standardizes the process that is supposed to follow and the
work that is to be done in the factories. The processes that are formed at the head office are
given to the quality controllers that are appointed at the various factories. They ensure that
the processes are followed as per the orders from the head office.
Component Research and Approval Centre (CARC)
This department is responsible for testing each component that is to be used in the
manufacture of a product. The test is done over a period of 21 days in which the suitability
and usability of the components are tested. It is checked whether it meets the expectations of
the company. Even very minute components are being used even after they have tested at this
centre. Suppliers have to submit a sample of their product to this department before they
supply their product
SWOT ANALYSIS
4. SWOT ANALYSIS
SWOT analysis includes strength, weakness, opportunities, threats of the company.
4.1 STRENGTHS
4.2 WEAKNESS
Demand is seasonal for their most of the products and it is high during festive
seasons.
Lack of public awareness regarding the product features
Lack of continuous promotional activities.
4.3 OPPORTUNITIES
4.4 THREATS
FINDINGS,
SUGGESTIONS
CONCLUSION
AND
5.1 FINDINGS
The quality measures adopted by the company are excellent.
Continuous efforts are put forth by the research and development department for
reducing manufacturing cost.
There is lack of proper and constant marketing strategies for certain products.
Several energy conservation measures are under taken by the company.
The company has unique corporate social responsibility.
Competition from unorganized sectors.
There is sound relationship between each and every departments of the company.
The company has plans to expand their market by entering in to new segments.
The company has good market share in the house wiring segment.
The company has made strong distribution channel in the southern region.
The company has over 9500 retailers, 208 distributors and 353 service centers spread
across all states in India
The company is significantly dependent on copper, which is primary raw material for
its cable business.
5.2 SUGGESTION
The company has focused in the southern region, it has to show its competency in the
non-southern markets as well.
The company is successful with stabilizer, pumps & house wiring cables, it has to
concentrate more on newer product.
Its products should be priced more competitively than the unorganized sector in order
to deal with competition.
The company should take necessary steps to control the impact of continuous price
variation of the raw material.
Copper should be maintained.
Better promotional activities must be put forward.
Continued focus must be given on meeting quality standards so as to ensure product
acceptance by the customers.
More focus should be given to train & motivate the workers.
CONCLUSION
I conclude that v-guard continues to enjoy a healthy position in the electrical and electronic
consumer market in the country. The company enjoys this unique position with the help of
their strong brand name, wide range of products, and strong distribution channels.
The earnest effort from the part of the management and the co-operation of the employees
jointly contribute to achieving the goals of the company. This cordial relation maintained
between the departments and a strong human resource all paves the way for the
organizational growth.
The dedicated corporate social responsibility that the company has towards the society and
the employees helps v-guard to establish a very strong brand image for itself. This
organization study has helped me to understand how an organization works. This study has
also shed light on to my professional career and decision making.
It is clearly evident that the company as a whole has been tediously working with a common
vision insight that has made v-guard a brand you can trust.
BIBLIOGRAPHY
Website
1. www.vguard.in