SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

BABASAB PATIL

EXECUTIVE SUMMARY

OBJECTIVES OF THE STUDY: To know the perception of customers towards SHRIRAM TRANSPORT
FINANCE COMPANY to improve the quality of services.
To know whether the customers are satisfied with the present services of
the company.
Factors considered in selecting SHRIRAM TRANSPORT FINANCE
COMPANY to take finance for HCV (Truck).
To study the behaviour of executives of SHRIRAM TRANSPORT
FINANCE COMPANY towards customers.
To seek suggestions and opinions from customers regarding the
improvement of services.

SCOPE OF THE STUDY: The study will help the company to know their awareness among the
consumers, the perception, brand position of the company.
The company can find out where their competitors stands in the minds of the
customers.
The study will help the company to make proper marketing strategy for their
weaker areas.
The study covers the customers owning HCV in Hubli city.

LIMITATIONS OF THE STUDY:BABASAB PATIL

Not single work is exception to the limitations every work has got its own
limitations, so due to time constraint, my study confines only to Hubli city and it is
not possible to make extensive study. It is assumed that the sample selected represents
entire population.

RESEARCH METHODOLOGY:-

Data source

Primary (Field Survey)

Secondary data (internet)

Area of Research
Research instrument
Sample plan

:
:
:

Hubli city
Questionnaire
Personal interview

Sample unit

Truck owners,
Transporters etc.

Stratified Random
Sampling method
Sample size

:
:

sampling
100 customers

INTRODUCTION
PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT
COMPANY LIMITED.

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Like any other Financial products, sales of giving finance is largely dependent on how
well company plans out their marketing strategies which helps to increase visibility
and build a distinct brand image. Looking at the intense competition it is become very
necessary for company to make a name for themselves in consumers mind. So the
opinion of customers play an important role in making marketing strategies. Hence
this study will provide the company to what customers perceive about STFC. It will
also help to find out the brand image of STFC in the minds of customers.

India is emerging as a global automobile giant. In recent years this industry

has made pioneering efforts in adopting modern technology and allowing the entry of
foreign players. This is well supported by the economic conditions particularly in the
financial sector and in foreign direct investment. During the last decade, conscious
efforts have been made to fine-tune state policy to enable the Indian automobile
industry realizes its potential to the fullest. The freeing of the industry from this
restrictive environment has helped it to itself to global development.

Increasing competition as result of liberalization has led to continuous

modernization as well as international standards. Moreover, auto finance with
aggressive marketing strategies has played a bid role in boosting the automobile
demand. Commercial vehicles, widely considered being the economys barometer,
have had a good start for the year.
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The auto finance industry is expected to grow at 18.6% till 09. Of that used
vehicle finance is expected to grow at 27% p.a, while new car and UV would grow at
18.9% and 13.8%.

LITERATURE REVIEW
The world is full of stimuli. A stimulus is any unit of input affecting one or more of
the five senses sight, smell, taste, touch, hearing.The process by which we select ,
organiseand interpret these stimuli into a meaningful and coherent picture is called
perception.
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In essence, perception is how we see the world around us and how we

recognize that we need some help in making a purchase decision. People cannot
perceive every stimulus in their environment. Therefore, they use selective exposure
to notice and which to ignore.

Marketers must recognize the importance of cues or signals, in customers

perception of products. Marketing managers first identify the important attributes,
such as price or quality, that the targeted customers want in a product and then design
signals to communicate these attributes. Customers also associate quality and
reliability with certain brand names. Companies watch their brand identity closely, in
large part because a strong link has been established between perceived brand value
and customers loyalty.

Customer Perception Audits:

Every time you lose a customer, theres a reason why. Do you really know what your
customers think about your business, your offerings, or your service? Are they having
good or bad experiences? Are you equipped with the insight you need to improve
customer satisfaction and loyalty, and make the changes that matter? Entrepreneurs
are often too busy to really take the time to tap into what customers are really
thinking. But customers hold the key. They know what you need to do to dramatically
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increase the value you deliver to them. Why keep this data a secret? Uncovering and
understanding it will give you what you need to be the best, generate higher sales and
referrals and earn repeat business.
Customer Perception Audits by Coach Kevin captures information on the
experiences your customers are having, analyzes the data, and provides meaningful,
actionable recommendations on short-term and long-term improvements, with the
goal of closing the gap between the service that is delivered and the service that
customers expect.

Opening of economy and liberalization in trade in the country brought a sea of

change in customers perception of buyer and seller relationship. The customer today
is not only very demanding but also likes to know the

relationship between the supplier of goods and services and its relationship with the
manufacturer or principal and its antecedents. It is on this relationship depends the
guarantee and warranty terms to which the customer is entitled. A customer expects
trouble free service during the guarantee period. Thereafter it is expected that a
product will last to its full productive life with minimum
down time and the vendor will provide the required support service to ensure the
customer is not put to trouble.
For adopting Japanese management or for customer oriented management we
should first have the willingness and a determination much above the petty personal
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gains. It needs an attitudinal change. Looking towards present socioeconomic and

political conditions such change is not foreseen in immediate future. Market forces
will have to play the game with only customer in mind if India has to make global
presence. There is little time in hand as we are having challenges from all sides. Small
nations like Korea, Taiwan, Singapore etc. have already surpassed us. These nations
are working on a vision and resultant plans. It is the right time for market players to
pamper the customer. As the saying goes, the four deadly sins of corporate
management-complacency, blindness, megalomania, and greed. fit everything else is
overhead!.

Remember that a customer always buys a product or service with a lot of

expectations which he has derived from the promotional inputs of the
company or other sources including word-of- mouth . So a customer would be
satisfied when Performance is equal to Expectation while would not be satisfied when
Performance does not match with Expectations. Now this expectation is what has
been derived from perception. Perception is not good or bad, right or wrong, it is just
the way someone judges an experience based on their value system of what they
believe should happen. Since people are unique, each of their perceptions are
unique .On the other hand each situation

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is a "point of contact" with an employee that will tell the customer a "truth" about the
company's idea of customer service. Each situation will create expections of what the
next experience will probably be like.

STATEMENT OF THE PROBLEM:The present day market is flooded with a variety of Non- banking and as well
as banking financial institutions as many as if not more than companies like
SHRIRAM TRANSPORT FINANCE COMPANY, Tata Finance, Sundaram finance
etc. are marketing their products.

Time has become talk of the town therefore the customers give utmost priority
to those financial institutions which gives loans at lower rate of interest, quick loans,
documentation, percentage of finance etc. which have been exerting influence on the
playing decision of the consumer.
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The SHRIRAM TRANSPORT FINANCE COMPANY is the largest NBFC

(Non Banking Financial Corporation) in the country exclusively engaged in financing
for heavy commercial vehicles (HCV) perhaps it is the only company rendering
better performance from a long period of time with the presence of all these factors.
The SHRIRAM TRANSPORT FINANCE COMPANY is making sales as hotcake.

The study on hand is directed to understand the perception of customers

towards SHRIRAM TRANSPORT FINANCE COMPANY to improve the quality of
service

PURPOSE OF THE STUDY:The main purpose of the study is to understand the perception of customers towards
SHRIRAM TRANSPORT FINANCE COMPANY which will help the company to
make proper marketing strategy to render good services and satisfy the needs of the
customers. The study will help the company to make proper strategies and emphasize
on their weaker areas.

SCOPE OF THE STUDY :-

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The scope of the study covers the customers of SHRIRAM TRANSPORT FINANCE
COMPANY

and other competitive companies

in Hubli city Truck

owners,

Transport companies etc.

OBJECTIVES OF THE STUDY:1. To know the perception of customers towards Shriram Transport Finance
Company Limited to improve the quality of service.
2. To know whether the customers are satisfied with the present services of
the company.
3. Factors considered in selecting SHRIRAM TRANSPORT FINANCE
COMPANY to take finance for HVC.
4. To study the behaviour of executives of SHRIRAM TRANSPORT
FINANCE COMPANY towards customers.
5. To know the awareness level of the customers towards SHRIRAM
TRANSPORT FINANCE COMPANY.
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6. To seek suggestions and opinions from customers regarding the

improvement of services.

LIMITATIONS OF THE STUDY:-.

a. Because of time constraint, my study confines only to Hubli city and it is not
possible to make extensive study.
b. By busy schedule of the executives it is difficult to extract more information
from them.
c. Unwillingness of transporters, truck owners has left us to make random
conclusions.

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CHAPTER II

COMPANY OVERVIEW:Established in the year 1974, the Shriram Group, comprising 750 Branches
and Service Centres, in India's premier financial services chain. This company is the
largest player in Truck Financing and Chit funds in the Indian subcontinent.

The group, having an annual turnover of Rs. 6,000 crore (USD 1.3 billion),
has a significant presence in the Insurance Consultancy, Consumer Durable Finance
and Stock Broking businesses. It also have diversified investments in areas such as
Information

Technology,

Pharmaceuticals,

Engineering, Packaging and Auto Components.

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Property

Development,

Project

It employ over 11,000 employees across the countries that are committed to
providing excellent customer service. It also have over 75,000 agents nationwide who
reach out to its customers in even the most remote areas.
The Shriram Group's business ventures are built on providing the most
efficient and customer-focused services based on the simple principle of putting
people first. This 'People First' business philosophy has earned them unstinted
customer loyalty through many generations.

HISTORY AND MILESTONE:

APRIL 2005:
Shriram Group attracts largest Venture Capital Investment in the Indian nonbanking financial sector, from Overseas
JULY 2004:
UTI Bank picks up equity stake in two Shriram Group companies
17MARCH 2003:
Shriram Investment Limited received the Mother Teresa Award for Corporate
Citizenship.
DECEMBER2002
Shriram Group enters into strategic alliance with Citicorp Finance and
Cummins Auto Services
31AUGUST2002
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Shriram Group ties up with UTI Bank for Retail Truck Financing
Scheme to offer low cost loans for purchase of new or used trucks to transport
operators.
7MAY2002
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional" for the
year 2002

4FEBRUARY2000
Shriram Recon Trucks incorporated as India's first corporate network for selling
reconditioned used trucks.
15DECEMBER1999
Medicorp, the flagship company of Shriram groups pharmacy division
became the first Indian company to win the Indian Drug Manufacturers Association
27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and twowheelers.
12MARCH198
Shriram Investments Ltd. Incorporated

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13JUNE1979
Shriram Transport Finance Company Ltd. Incorporated

VISION, MISSION AND VALUES:

Helping create wealth, Empowering people through prosperity, Putting people
first.
The Shriram Group set out with the objective of reaching out to the common
man with a host of products and services that would be helpful to him in his path to
prosperity. Over the decades, the Group has

achieved significant success in

executing this objective and has created a tremendous sense of loyalty amongst its
customers.

Efficiency in operations, integrity and a strong focus on catering to the needs

of the common man, by offering him high quality and cost-effective products &
services, are the values driving the organization. These core values are deep-rooted
within the organization and have been strongly adhered to over the decades.

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The group prides itself on its perfect understanding of the customer. Each
product or service is tailor-made to perfectly suit the needs of the customer. It is this
guiding philosophy of putting people first that has brought the Group closer to the
grassroots and has made it the preferred choice for all financing requirements amongst
the customers.

NON-BANKING FINANCIAL COMPANY (NBFC) A GENERAL SCENARIO

Non-Banking Financial Company (NBFC) is a company registered under the
Companies Act, 1956 and is engaged in the business of loans and advances,
acquisition of shares/stock/bonds/debentures/securities issued by Government or local
authority or other securities of marketable nature, leasing, hire-purchase, insurance
business, chit business but does not include any institution whose principal business is
that of agriculture activity, industrial activity, sale/purchase/construction of
immovable property. A non-banking institution which is a company and which has its
principal business of receiving deposits under any scheme or arrangement or any
other manner, or lending in any manner is also a non-banking financial company
(Residuary non-banking company).
DIFFERENCE BETWEEN BANKS & NBFC ?
NBFCs are doing functions akin to that of banks, however there are a few
differences:
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i. A NBFC cannot accept demand deposits;

ii. It is not a part of the payment and settlement system and as such cannot
issue cheques to its customers; and
iii. Deposit insurance facility of DICGC is not available for NBFC depositors unlike
in case of banks.

COMMERCIAL VEHICLE
It is the funding of products include, trucks, buses, tippers, light commercial
vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing loans, Extend product, working
capital loans & other banking products.

Who are eligible?

Any individual / Partnership firm / company with more than 2 years business
experience. Ownership of a vehicle is not mandatory. Funding extended to First Time
User, Transporters and Captive Consumers.

How much?
Loan amount can vary from a few thousands to crore depending upon the specific
requirement.

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Funding can be up to the extent of 100 % of the chassis, body funding can be
extended on special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking over an
old high-interest loan and converting it into low interest loan.

Repayment:
In general repayment period is of 3 -4 years, however depending on the nature of the
deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement of the
loan.

Interest:
Interest is charged on a flat rate based on the scheme applicable for the particular
product.

FARM EQUIPMENT LOANS

Farm equipment loan has also a big chunk in the vehicle finance.

Eligibility :Agricultural Users

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Any individual aged above 21 years at the beginning of the tenure and below 65 years
by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly installment
Mortgage of land of 2 to 3 times of the loan amount

Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below 65
years by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.

Loan Amount:
The loan amount varies from customer to customer depending on the valuation
of the land being mortgaged, income of the customer and tenure desired. A maximum
of 100% of the cost of the tractor, 75% of the cost of the trailer and 50% of the cost of
the implements is funded.

Documentation:
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Agricultural use
Application form with photograph of the customer and all co applicants and/or
guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.

Loan agreement, duly signed by the applicants and guarantor.

2 SPDCs(Security Post Dated Cheques) for entire tenure.

Commercial Use
Application form with photograph of the customer and all co applicants and/or
guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :
- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
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2 SPDCs(Security Post Dated Cheques) for entire tenure.

Rates & Fees:

The rate of interest varies from customer to customer and depends on various factors
like land holding, loan amount, viability of the proposition and the underlying
collaterals provided.

Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the
case may be. Every installment that is paid has a component of principal as well as
interest. Interest is charged on the principal outstanding after every installment
payment.

TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
Loan Schemes are available from Rs.7500/- onwards to Rs.150000/installments over a period of 6 to 36 months.

Eligibility Criteria:
1. Salaried Individuals
2. Self Employed Individuals
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in easy

3. Pensioners, Housewives & Students

4. Partnership Entities
5. Private Limited Companies
6. Public Limited Companies

Interest rates:Interest rate is charged on a monthly reducing balance .

Documents:
Identity Proofs
Residence Proof
Income Proof
Post Dated Cheques
Copy of Credit Card
CC billing statement
Bank passbook/Statement
No objection Certificate

AWARDS AND RECOGNITION

Recipient of the social responsiveness awards instituted by Business world
compaq at national level under the auspices of FICCI, Delhi.
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Adjudged as the third prize winner for having rended commendable service in
the areas of social welfare and rural development.

Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by

Business World Company from the Honble Vice President of India Krishna Kant
in the year 1999.

Recipient of outstanding woman professional for 2000 01 by FICCI FICCI

Ladies organisation (FLO). The award was given by Ms. Sheila dixit Chief minister
Delhi.

Mother Teresa award for corporate citizenship instituted by Loyola institute of

Business Administration (LIBA) Chennai, 2002.

SOCIAL WELFARE INITATIVES

They have always belived in delivering financial value with a human face. As
a company firmly grounded up a middle class ethos, we take our social
responsibilities very seriously.

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Their corporate Social Responsibility (CSR) initiative started with the Shriram
Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT is today active
in the following areas.

Orphan and destitute care

Primary education for the rural poor

Micro credit financing through self- help groups for the marginalized

Empowerment and upliftment of women in villages.

OPRHAN AND DESTITUTE CHILDREN:

To swiftly help the poor and the needy to be self reliant and live with dignity, not
charity. The primary focus and beneficiaries of the Trusts activities are.
a. Abandond neglected and destitute children.
b. Juvenile delinquents in need of care and protection.
c. Children of poor and illiterate parents.
d. Disadvantaged and marginalized section of women, particularly rural women

MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS FOR THE

MARGINALIZED WOMEN IN VILLAGES.
a. Launch of Shriram Rural Development Project (SRDP) to create and
b. Social and human capital among the poor.
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develop

c. Micro credit financing through self help groups in 156 villages in Tamil Nadu,
Andhra Pradesh and Karnataka.

PRIMARY EDUCATION FOR THE RURAL POOR:

The trust runs four schools

in rural areas at Thiruneermalai, Pallikaranai,

Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra
Pradesh. Over 2000 children receive free education. Schools offer education up to
class VII and student will progressively move up to higher secondary level.

FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six
districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in June 2005.

LONG TERM BENEFITS OF THE PROGRAM:

a. Reduction in rural indebtedness
b. Bank/institutional credit for investment in income generation activities.
c. Improved household food security round the year, better nutrition.
d. Improved household income.
e. Empowerment of Women.
f. Greater leverage and status of SHG members in local communities and with the
state.

THE FUTURE ACCORDING TO SHRIRAM

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1. To enlarge the scope of micro credit financing activity through NBFC

Shriram Investment Limited.
2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.
3. To lend credit at low interest rates to 3 lakh women below poverty line in the
next 3 years.

NATIONAL AWARDS WON

Business World Compaq award fota Social Responsiveness instituted by

FICCI from the Honble Vice President of India Mr. Krishna Kant on 1999.

Mother Teresa award for Corporate Citizenship instituted by Loyola Institute

of Business Administration (LIBA), Chennai in 2002.

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PRODUCT PROFILE
1.TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
2. Largest NBFC in the country exclusively engaged in financing of heavy
commercial vehicles.
3. Monopoly position in financing of used vehicles.
4. All India presence with a branch network of 260 offices and employing over
4000 people.
5. Growing at the rate of 30% per annum.
6. Funds managed Rs 6000 crores.
7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO
Netherlands have added tremendous value and strength.
8. Venture capital firm Chris capital joins as a strategic partner by acquiring
21% equity.
We entered the Consumer Durable Finance business in early 2002 through
'Shriram City Union Finance Ltd., the consumer finance arm of the group. Within a
short span of 2 years, we have managed a portfolio of over Rs.584 crore.

Our monthly business amounts to over Rs.25 crore in individual loans, ranging from
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as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12 months to 36

months.

Since its inception, we have financed over 2,15,000 white goods and two-wheelers,
with over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank and
Development Credit
THE GROUP COMPANIES ATHAT CATER TO TRUCK FINANCING
NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE
Shriram Investments Limited in the South Shriram Transport Finance Company
Limited in the West Shriram Overseas Finance Limited in Northern/Eastern regions
in India.

OUR EQUITY PARTNERS

Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake in
Shriram investments Limited and Shriram Transport Financial Company Limited in
2002.

FMO the Dutch Government owned financial services company has recently picked
up equity stake in SIL and STFC. The company has extended a long term debt of 6
million Euros each to the two companies.

Reliance Capital has also taken an equity stake in the two companies at a premium.
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AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING

BUSINESS IN INDIA

AREA OF OPERATION

ALL INDIA

Branch offices

260

Employees

4000

Depositors

12.20 lakhs

Agency Force

15,000 plus resident representatives 1300.

Funds managed

Rs. 6000 crores

Net worth

Rs. 349 crores

Stock Listing

Major exchanges including the BSE and

the NSE.

2.CONSUMER FINANCE:We entered the consumer Durable Finance Business business in early 2002.
through Shriram City Union Finance Ltd. The consumer arm of the group. Within a
short span o 2 years, we have managed a profile of over rest 684 crores in this
business.

Our monthly business amounts to over Rs. 25 crores in individual loans,

ranging from as little as Rs.8000 to Rs. 100000 and with tenures ranging from 12
months to 36 months.

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Since its inception we have financed over 215000 white goods and two
wheelers with over 90% of the business arising out of the non metro markets.

This financing is backed by lines of credit extended by

ICICI Band, UTI Bank and Development Credit.

3.CHIT FUNDS:Shriram chits prosperity

Shriram chits is the largest chits fund in the country. We have grown to become a
trusted household investment option. The growth registered by Shriram Chits recent
years not only indicated the usefulness of this savings instrument, but is also a
reflection our customers trust in.

Chits one of the earliest investment instrument known to man, were founded by the
enlightened communities of India. These have, ever since, worked to the advantages
of communities that are batting scarce capital resource.

Shriram chits started its operations in the year 1974 with a single branch that has
quickly grown into trusted household name for making chits a viable form of saving
and borrowing to all sections of the social.

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Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka and
Maharastra, where has a reputation for timely disbursement of funds and excellent
customer services which differen tiates it from other companies.
Using state of the art computer systems/networks and a transparent accounting
system, Shriram Chits have transformed this contemporary mehod of savings into an
attractive personalised to banking system.

4.GENERAL INSURANCE:Shriram group has adopted a two strategy in this segment.

1. Broking arm Armour Consultants floated in year 2002
2. Retail Marketing Arm: Ski Marketing flotred in year 2001.

ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE EXPERTS AT

YOUR SERVICE
Amour consultant is engaged in insurance broking in corporate insurance markets and
has already aggregated business volumes in excess of Rs. 200 crores ($ 44 million) in
premiums.
Amour consultant comprises a team of distinguished professionals from insurance,
finance, law and other management discipline, who have vast business and
managerial experience. The company has handled major claims for renowned clients.
There have been several claim cases that were won even in the arbitration stage.

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The tern at Armun Consultants begins with an in depth evaluation of the

client companys business environment. The company risk profile is then studied.
Based on the results of these evaluations. The team then suggests the most cist
effective, integrated insurance package that is perfectly suited to the companys risk
profile.
The company plans to extend its customer base of the existing 500000 policy holders
to cross the 1 million mark by the end of financial year 2005-06.

5.LIFE INSURANCE:The shriram group plans to enter the life insurance segment 05. Am application has
already been filed with the IRDA for the same. We are also exploring the possibilities
of collaborating with a foreign partner in this venture. We expect to be a major player
in this very fast growing sector, as a natural corollary of business philosophy and
expertise.

6.STOCK BROKING:Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a
member of the National Stock Exchange , India and the Multi Commodity Exchange.
This unit has expended the network by 150% over the last year and today it has more
than 230 terminals spread across the length and breadth of the country.
It has a retail customer base of around 50000. The
company launched its new products like Derivatives and commodity Trading in early
2004.

A QUICK LOOK AT SOME OF THE SALIENT FEATURES

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Limits of all clients are fixed at a pre-calculated level.

This is benefical to them in the long run as it prevents overtrading.

Atimely payments and direct share transfer facility from NSE.

Adequate risk control research support.

The clincher. Proactivate and preventive risk control.

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ORGANISATION CHART

BOARD OF DIRECORS

SHIRAM TRANSPORT FINANCE COMPANY LIMITED

R Sridhar

Managing Director

S. Venkatakrishnan

Executive Director

Umesh G Revankar

Executive Director

K.R.C Sekhar

Director
Nominee of Citicorp Finance (India)

S. Ranganathan
Ltd.
Dr. T S Sethurathnam

Nominee of IREDA ltd.

Company Secretary & Compliance

K. Prakash
Officer

SAMPLING:
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Sample plan to know the perception of customers in this project is through personal
interview.

SAMPLE UNIT:
I have taken the customers who are owning a truck or (HCV).

SAMPLING METHOD;
I have used Non- probability sampling i.e. Stratified Random Sampling.
Sample size for this project is 100 customers who are truck owners.

RESEARCH DESIGN:
In this research design of this project the study was conducted by the survey method.

Taking sample of 100 customers owning trucks by commencing sampling using the
research instrument as the questionnaire.
Personal interview is considered as the sample plan.
For this project area of research is Hubli City.

DATA COLLECTION METHOD:

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I have collected the data from the following sources:

A. PRIMARY DATA:
The data collected from the company persons.
Questionnaires

B. SECONDRY DATA:
Interviewing with the owners of trucks
Internet
Magazines, Catloges, etc.

MEASURING TOOLS:
For preparing this project I have considered questionnaire as measuring tool for
collecting the data.

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CHAPTER - III

CHAPTER III
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RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-

1) Do you own a HCV?

Table: 3.1

Yes
No
Total

Number of customers
100
Nil
100

Percentage
100%
Nil
100%

The information presented in table3.1 reveals that: Almost all respondents are owning Heavy Commercial Vehicle.
The same information is presented in the form of diagrammatically as follows:-

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2. Source of finance for your HCV?

Table: 3.2
Sources
Co-op banks
STFC
Tata finance
Others
Total

Number of customers
4
61
19
16
100%

Percentage
4%
61%
19%
16%
100%

The information presented in table3.2 reveals that: 61% respondents have taken loan from STFC .
19% respondents have taken loan from tata finance and 4% from co-op
banks.
While remaining 16% have taken from other finance companys.

The same information is presented in the form of diagrammatically as follows:-

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3. Are you aware of STFC?

Table:3.3

Yes
No
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Number of customers
100
Nil

Percentage
100%
Nil

Total

100

100%

The information presented in table- 3.3 reveals that: Almost all respondents are aware of STFC .

The same information is presented in the form of diagrammatically as follows:-

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4) How did you come to know about this company?

Table:3.4
Sources
Friends
Agents
Advertisements
Others
Total

Number of customers
38
24
32
6
100

Percentage
38%
24%
32%
6%
100%

The information presented in table3.4 reveals that: 38% respondents have bought finance from STFC on the advice of
their friends.
24% will seek the advice of agents.
While 6% from others and 32% on the basis of Advertisements.

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The same information is presented in the form of diagrammatically as follows:-

5. Do you get the finance quickly from STFC?

Table:3.5
Number of customers
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Percentage

Yes
No
Total

84
16
100

84%
16%
100%

The information presented in table3.5 reveals that: 84% respondents are in favour of quick finance availability from STFC
.
While remaining 16% of them are not in favour of quick finance.
The same information is presented in the form of diagrammatically as follows:-

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6) Are you satisfied with the documentation process at STFC?

Table:3.6
Sources
Highly Satisfied
Satisfied
Neither satisfied/dis-

Number of customers
28
42

Percentage
28%
42%

14

14%

14
2
100

14%
2%
100%

satisfied
Dis-Satisfied
Highly dis-Satisfied
Total

The information presented in table3.6 reveals that: 28% of the respondents are Highly Satisfied with the documentation
process at STFC , 42% of the respondents are Satisfied and from the
analysis 14% of them are Neither satisfied/dis-satisfied .
Nearly 14% of the respondents are dis-Satisfied and 2% of them are
Highly dis-Satisfied .

The same information is presented in the form of diagrammatically as

follows:-

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BABASAB PATIL

7) Do you require any changes in the documentation process?

Table:3.7
Number of customers
28
72
100

Yes
No
Total

Percentage
28%
72%
100%

The information presented in table3.7 reveals that: 28% of the respondents require changes in documentation process at
STFC .
While 72% of the respondents are Satisfied with the documentation
process at STFC .
The same information is presented in the form of diagrammatically as follows:-

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8. What do you feel about the interest rates at STFC?

Table:3. 8
Sources
Very High
High
Moderate
Low
Total

Number of customers
16
44
34
6
100

Percentage
16%
44%
34%
6%
100%

The information presented in table3.8 reveals that: 16% of the respondents are in favour that interest rate at STFC is very
high and 44% of them are in favour of High rates.
While 34% of them are in favour of moderate interest rates and 6% for
low interest rates.

The same information is presented in the form of diagrammatically as follows:-

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9) Are you satisfied by the percentage of finance provided by STFC?

Table:3. 9

Yes
No
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Number of customers
88
12

Percentage
88%
12%

Total

100

100%

The information presented in table3.9 reveals that: 88% of the respondents are Satisfied with Percentage of finance given
by STFC .
While 12% of them are not Satisfied .
The same information is presented in the form of diagrammatically as follows:-

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10). Are you satisfied with the services offered by STFC?

Table:3. 10
Sources
Completely Satisfied
Satisfied
Neither satisfied/dissatisfied
Dis-Satisfied
Completely disSatisfied
Total

Number of customers
10
32

Percentage
10%
32%

20

20%

29

29%

9%

100

100%

The information presented in table3.10 reveals that: 10% of the respondents are completely Satisfied with the
service offered y STFC, 32% of the respondents are satisfied
and from the analysis 20% o the respondents are Neither
satisfied/dis-satisfied .
Nearly 29% of them are dis-Satisfied and remaining 9% of
them are completely dis-Satisfied .

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The same information is presented in the form of diagrammatically as

follows:-

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11) What are the features that attracted you to borrow loan from

STFC?
Table:3. 11
Sources
Low interest rates
Easy documentation
Quick finance
Low EMI
Total

Number of customers
6
10
84
Nil
100

Percentage
6%
10%
84%
Nil
100%

The information presented in table3.11 reveals that: 84% of the respondents are attracted by quick finance.
10% of the respondents for easy documentation.
While remaining 6% for low interest rates.

The same information is presented in the form of diagrammatically as follows:-

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12. How do you rate STFC with respect to other finance

companies?
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Table:3. 12
Sources
Tate
Ashok Leyland
STFC
HDFC
ICICI
SBI
Total

Number of customers
12
18
26
18
14
12
100

Percentage
12%
18%
26%
18%
14%
12%
100%

The information presented in table3.12 reveals that: 12% of the respondents rated Tata in the 1st place with other companys
and 18% of them for Ashok Leyland and HDFC in 2nd place.
26% of them rated STFC in 3rd place.
Nearly 14% of them for ICICI in 4th place.

The same information is presented in the form of diagrammatically as follows:-

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BABASAB PATIL

13. What is your experience when you approached the executives

of

STFC for finance of HCV?

Table:3. 13
Sources
Very good
Good
Neither good/bad
Bad
Very bad
Total

Number of customers
22
48
24
4
2
100

Percentage
22%
48%
24%
4%
2%
100%

The information presented in table3.13 reveals that: 22% of the respondents are in favour of very good behaviour from the
executives of STFC , 48% of them are in favour of good behaviour.
24% of them are in favour of Neither good/bad.
While 4% of them are bad and 2% very bad.

The same information is presented in the form of diagrammatically as follows:-

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BABASAB PATIL

14. Are your queries cleared quickly?

Table:3. 14

Yes
No
Total

Number of customers
82
18
100

Percentage
82%
18%
100%

The information presented in table3.14 reveals that: 82% of the respondents are in favour that their enquiries are cleared
quickly at STFC .
While remaining 18% of them are telling their queries are not cleared
quickly.
The same information is presented in the form of diagrammatically as follows:-

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15. Are you satisfied with the repayment system of STFC?

Table:3. 15

Yes
No
Total

Number of customers
64
36
100

Percentage
64%
36%
100%

The information presented in table3.15 reveals that: 64% of the respondents are Satisfied with repayment system at STFC.
While remaining 36% of them requires changes in repayment system.
The same information is presented in the form of diagrammatically as follows:-

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16. Do you recommend STFC to others?

Table:3. 16

Yes
No
Total

Number of customers
68
32
100

Percentage
68%
32%
100%

The information presented in table3.16 reveals that: 68% of the respondents are in favour of recommending STFC to others for
taking loan.
While remaining 32% of them are not in favour of recommending to
others.
The same information is presented in the form of diagrammatically as follows:-

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17. Do you want to take finance in near future from STFC?

Table:3. 17

Yes
No
Total

Number of customers
60
40
100

Percentage
60%
40%
100%

The information presented in table3.17 reveals that: 60% of the respondents wants to take finance in near future from STFC.
While remaining 40% of them are not in favour of taking finance from
STFC .
The same information is presented in the form of diagrammatically as follows:-

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CONCLUSION

Less than anticipated growth in the face of intensifying competition and rising costs,
can hardly be expected to get the company foaming.

By seeing the observations most of the customers are having positive

perception towards Shriram Transport Finance Company Limited and are satisfied
with their services such as Quick finance, Easy documentation process etc. The
company is progressing continously in the field of finance as Non-Banking Finance
Company to compete with other Financial as well as Non-banking financial
institutions.

STFC is the Non-Banking Financial Company in the Indian scenario and it is

the leader with monopoly position in financing for Heavy Commercial Vehicles.

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SUGGESTIONS

The firm should tap the un-tapped locations & market. This will help them in
increasing the business. Rural places are advised

The company should bring down their interest rates compared to other
competitor rates.

The STFC should increase their seizing period from 3 months to 4 months
during slack season if the customers fails to pay their instalments.

The STFC should maintain consistency in customer satisfaction level in future

also.

The brand awareness campaigns should be conducted. The firm should work
on its Advertisements.

Number of customers complaints should be reduced, because always cost is

associated in solving these problems.

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CHAPTER-4

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Questionnaire
Dear Sir/Madam,
1.Do you own a HCV?
Yes [ ]

No [ ]

2. Source of finance for your HCV?

Co-op banks [ ]

STFC [ ]

Tata finance [ ] Others [ ]

3. Are you aware of STFC?

Yes [ ]

No [ ]

( If no go to Question No:- 17 ).

4. How did you come to know about this company?

Friends [ ]

Agents [ ]

Self experience [ ] Others [ ]

5. Do you get the finance quickly from STFC?

Yes [ ]

No [ ]

6. Are you satisfied with the documentation process at STFC?

Strongly dis- satisfied [ ]
Dis-satisfied [ ]
Neither
Dis-satified [ ]
Satisfied [ ]
Strongly Satisfied [ ]
7. Do you require any changes in the documentation process?
Yes [ ]
No [ ]
If Yes specify _______________________________.

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satisfied/

8.What do you feel about the interest rates at STFC?

Very High [ ]

High [ ]

Moderate [ ]

Low [ ]

9. Are you satisfied by the percentage of finance provided by STFC?

Yes [ ]

If No specify _________.

10. Are you satisfied with the services offered by STFC?

Strongly dis- satisfied [ ]
Dis-satisfied [ ]
Neither
Dis-satified [ ]
Satisfied [ ]
Strongly Satisfied [ ]

satisfied/

11. What are the features that attracted you to borrow loan from STFC?
Low interest rates [ ]
Easy documentation [ ]

Quick finance [ ]
Low EMI [ ]

12. How do you rate STFC with respect to other finance companies
( 1 being highest and 6 being lowest)/
1[ ]

2[ ]

3[ ]

4[ ]

5[ ]

6[ ]

13. What is your experience when you approached the executives of STFC
for finance of HCV?
Very Good [ ]
Good [ ]
Bad [ ] Very Bad [ ]
14. Are your queries cleared quickly?
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Neither Good/Bad [ ]

Yes [ ]

No [ ]

15. Are you satisfied with the repayment system of STFC?

Yes [ ]

No [ ]

16. Do you recommend STFC to others?

Yes [ ]

No [ ]

17. Name the other finance companies you know?

____________________________________.

18. Do you intend to take finance in near future from STFC?

Yes [ ]

No [ ]

19. Please provide some suggestions in improving the quality of service at

STFC?
_______________________________________________________
________________________________________________.

Please provide the below mentioned information:

Name:
_______________________________________________________
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Address:
_______________________________________________________
Occupation: _____________________________
Annual Income ______________________
Gender: Male [ ]

Female [ ]

** Thank You **

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