Greaves : An Analysis of Product Quality

& Customer Satisfaction

5.1 BUDGET

The functioning & working pattern of Greaves is entirely dependent on

the Budget prescribed by the company personnel. The personnel from Head
office & Branch offices get together and prepare the budget for the coming
year. The sales to be achieved for all the Business Groups are put down in the
budget given depending on the following conditions

Past performance of the company. ie The sales achieved by the

company in the previous year.

Future growth anticipated for the company

( For e.g. Greaves are going to add agricultural pump sets
(Electrical) to their product line. So if the anticipated sales for the 1 st
year is about 100 units , & the price of the pump is Rs. 10,000 /- each
then Rs. 10 lakhs will be added to the budget for Business Group – 7
(Agro Equipments)

The growth potential in that particular sector of the country.

The market conditions & climatic conditions of that particular area (For
e.g. Rainfall during the year is one of the major factors for sale of agro
equipments. If more rainfall is anticipated then sales of the agro
equipments will be more)

The Budgeted sales set for the coming year will obviously be much
more then the sales achieved for previous year. This is done in order to
motivate the employees & make them work harder to achieve the prescribed
targets. Also the employees have complete autonomy in making decisions &
are so highly empowered. Such a method of functioning gives a tremendous
boost to the employees & they also push themselves to the limit for attaining
the targets.

The financial year for Greaves is 1 st July to 30th June. While the year for
payment of income tax is 1st april to 31st march.

Given below is an example of the budget prepared for the Business

Group – 7. The actual sales achieved during the financial year of 2002 – 03 is
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 Greaves : An Analysis of Product Quality
& Customer Satisfaction

given alongwith the anticipated (anticipated because the below given budget
was prepared in the end of May) sales for the year 2003 – 04 . Also the future
projections for the year 2004-05 is shown.

Greaves Cotton ltd.

BG - 7

( Rs. In Lakhs )

Actual 2002 - 03
Anticipated 2003 Projection 2004 -
-04 05
Product Quantity Rs. Quantity Rs. Quantity Rs.
PED/Reaper 1767 138.22 1756 128.14 1900 149.22

Diesel Pump
sets 545 87.00 300 51.10 625 102.67

Power Tiller -1 -0.72 9 7.70 20 16.60

Electrical
Pump sets 150 8.89
Total 2311 224.50 2065 186.94 2695 277.38

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