SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE

MARKET POTENTIAL AND STRATEGIES TO INCREASE MARKET SHARE OF LUCAS-TVS TRACTOR STARTER MOTORS AND ALTERNATIVES

PREPARED BY: MALARKODI S MBA (2010-2012) Roll No : 1028210

INDUSTRY GUIDE Mr.VENKAT RAMMANI ASST. MANAGER, BD & MARKETING LUCAS-TVS, CHENNAI

FACULTY GUIDE Mr.A.NIRMAL RAJ Sr.Lecturer

VELAMMAL ENGINEERING COLLEGE CHENNAI

1.1 Introduction
Today every company faces tough competition. Therefore, it is important for each of them to adopt various techniques and tactics to survive in the industry. Different companies adopt different methods to cope up with the situation. Commonly adopted methods include economy of production, optimum utilization of resources and accurate forecasts of production and sales. Automobile industry is considered as one of the most vibrant industry of India. Various vehicle models are introduced year by year and the customer preference also changes by time to time. Sales figures are mainly depending upon the latest trend of the industry and it is inevitable to know the pulse of the industry to excel in the field. Original Equipment (OE) manufacturers, Automobile manufacturers and Dealers are the major part of industry value chain of automobile industry. Among these elements Dealers are that part of industry value chain who is directly keeping in touch with the end users. They are the best to be studied to know about even minute changes in the industry. The research work is indented to provide information that may help the company a little bit to make corrections to their production forecast according to the industry trend and thereby reduce the avoidable expenses. Dealer survey is always beneficial to the company to company to keep track with industry variations and changing sales trend.

Scope of the study:

The study gives an opportunity for a thorough analysis of authorized dealers of Chennai. By this the company can extend its relationship to the remote component of the industry value chain also. It is useful to understand what the customer expectations are, what is the latest trend, what are the demand driving factors, what all are the changes happening in the customer preferences by time to time.

Need for the Study: Market survey is the finest method for getting actual market trend since it will provide an opportunity to interact with customers can get the real pulse of the industry. As far as the automobile industry is concerned dealers are the element of industry value chain which directly interacts with the customers.

A study on tractor segment electrical potential and Lucas-TVS spare parts

The following objectives are set in order to obtain a proper flow to achieve the desired results. Primary Objective: To study the market potential and competitiveness of Lucas-TVS Starter Motor in domestic two wheeler market and to device an optimal strategy to increase its market share in supply to OEMs(Original equipment manufacturers) Secondary Objective: 1. To find out the source of purchasing electrical parts of tractors. 2. To know the availability of Lucas TVS products in the market. 3. To know the satisfaction level after sales and service of the product. 4. To find out the dealers satisfaction level of Lucas-TVS starter and alternator with other competitors. 5. To find out the factors influencing the dealers of purchasing starter and alternator. 6. To identify the life time of alternator and starter of Lucas TVS with other competitors. 7. To find out the preference of selecting starter and alternator of Lucas TVS with other competitors. 8. To find out the factors which we want to improve the efficiency of the product.

COMPANY PROFILE TVS GROUP TVS is an Indian diversified industrial conglomerate with principal base in Chennai and Madurai. Almost all the companies in the group are privately held. The largest and the most visible company is TVS Motors, one of the top 3 twowheeler manufacturers in India. From its humble beginning at the turn of the 20th century, the group has progressed to become the largest manufacturer and distributor of auto components in India. TVS Group was established in 1911 by T.V.Sundaram Iyengar, one of the visionaries of the Indian industry. His ideas were years ahead of their times. Three years before World War I, when the automobile was still seen as some kind of intimidating horse-less carriage, he had the vision to set up South Indias first ever rural bus service and over the years, this transport company became the largest of its kind in the country, legendary for its punctuality and service. In fact, the rules and regulations laid down by him later became the blue print for the Motor Vehicles Act. The importance given by the founder of Trust, Value and Service-TVS, are the basic tenets of the TQM framework even today. His philosophy of business reflected the kind of man he was-simple and stern. It was based rigidly on four concepts Quality, Service, Reliability and a sense of Ethics. The TVS Group is the largest manufacturer and distributor of automotive components in India, with a turnover in excess of 2.7 billion US$ and a family of over 25000 members. Today, this renowned business conglomerate remains faithful to its core ideals of trust, values, service and ethics. The TVS Group is India's leading supplier of automotive components and one of the country's most respected business groups. With a combined turnover of more than USD 5 billion, the TVS Group employs a total workforce of around 25,000. Charting a steady growth in terms of expansion and diversification, it currently comprises around 43 companies. These companies operate in diverse fields ranging

from two-wheeler and automotive component manufacturing to automotive dealerships, finance and electronics. TVS GROUP OF COMPANIES The TVS group, with a turnover of over one billion dollars, is the largest manufacturer of automotive components in India. The group produces auto electrical, diesel fuel injection systems, braking systems, automotive wheels and axle fasteners, powder metal components, radiator caps, two wheelers and computer peripherals. Backed by five service and distribution companies with an extensive network across the country, group has the largest distribution network for automotive products in India Company Manufacturing Companies Axles India Ltd Brakes India Ltd India Nippon Electricals Ltd India Japan Lighting Ltd Products

Lakshmi Auto components Ltd Lucas-TVS Ltd TVS Srichakra Ltd

Automotive axles Hydraulic brakes & clutch ignition systems Magnetos, two/three wheeler ignition systems Headlamps, rear combination lamps & various signal lamps for automotive & two wheeler applications Engine/transmission components Auto electrical parts Automotive tyres

Sundaram Brake Linings Ltd Delphi-TVS Ltd Sundaram Clayton Ltd Sundaram Fasteners Ltd

Sundaram Textiles Ltd Turbo Energy Ltd TVS Interconnect Systems Ltd TVS Electronics Ltd TVS Sewing Needles Ltd TVS Motor Company Ltd TVS Cherry Ltd

Wheels India Ltd Distributive Companies India Motor parts & Accessories Ltd Lucas India Service Ltd

Brake linings & clutch facings Diesel fuel injection equipments Air brakes High tensile fasteners, cold extruded products, sintered components, intelligent systems, radiator caps Yarn Turbo chargers Electronic connectors Computer peripherals Sewing needles Two wheelers Precision miniature, sub-miniature, selector switches, hall effect sensors, key switches Automotive wheels

TV Sundaram Iyengar & Sons Ltd

Distributors of automotive components Distributors of auto electrical, fuel injection equipment, LISPART & batteries Distributors of passenger cars, commercial vehicles, automotive spare parts

Other Companies Southern Roadways Ltd Sunco Machines Ltd Sundaram Industries Ltd

Freight services Precure tyre retreading equipment Tyre retreading, coach building, rubber components.

LUCAS-TVS Lucas - TVS established in 1961 as a joint venture between Lucas UK and T V Sundram Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems. Lucas-TVS is the Leader in Auto Electricals in India today with 48 years experience in design and manufacturing. 4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. 100% share of LUCAS-TVS is now owned by the TVS group. Lucas - TVS is a TS16949 and OSHAS 18001 certified company. Lucas-TVS have bagged the Deming application price in 2004 from the Japanese Union of Scientists and Engineers (JUSE). Lucas-TVS has emerged as one of India's largest independent suppliers of automotive components and it reaches out to all segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps, twowheelers, and off-highway vehicles, and also caters to stationary and marine applications. PRODUCTS Lucas-TVS manufacture electrical components for the entire automobile industry (CVs, LCVs, Cars, 3/2 wheelers, tractors, earth movers ) and provides wide range of products with various technical features as per the demand in market. Various Products are: 1) Starter Motors 2) Alternators 3) Wiper Motors 4) Blower Fan Motors 5) Small Motors 6) Ignition

CUSTOMERS Cars/Utility vehicle:

LCVs/CVs:

Tractors:

Earth movers:

Two/ Three Wheelers:

Exports:

After Market Customers: Australia, Austria, Bangladesh, Bahrain, Belgium, China, Doha, Dubai, Egypt, England, Germany, Ghana, Ireland, Italy, Korea, Kuwait, Libya, Malaysia, Mauritius, Romania, Russia, Serbia, Seychelles, Singapore, South Africa, Spain, Srilanka, Sultanate Of Oman, Switzerland, Turkey, U.S.A, Zambia. AWARDS Lucas-TVS, believes that quality begins and ends with the customer. This means identifying customer needs and comprehensively meeting them. For the company, quality is not just conformance to drawings or specifications but ensuring customer satisfaction. 1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS - 2008 Auto-motive sector Ministry of Power, Govt. of India 2. TATA CUMMINS Lucas-TVS is Awarded "OUTSTANDING SUPPLIER & EXCELLENCE PERFORMANCE during the year 2007 by CUMMINS INDIA LIMITED

3. Deming Application prize JUSE, Japan 4. Best Supplier Award Maruti Udyog 5. 100 PPM Award Hyundai motor India 6. Q1 Award from Ford SALES PERFORMANCE Lucas-TVS will retain its dominant position in the automotive electrical market over the medium to long term, supported by its long-standing and established relationships with domestic OEMs. However, revenue growth and profitability will remain under pressure with sluggish off-take by OEMs, increasing competition, and pricing pressures from the OEMs. Net sales and Growth Trend of Lucas-TVS

SWOT ANALYSIS Strengths  It has extensive distribution network comprising over 2000 outlets spanning the entire length and breadth of the country  Its focus on quality products combines with urge to constantly learn and improve imparts it a unique strength, which cannot be easily initiated by its competitors  It has been successful in developing contacts with a host of service dealers over last eleven and half decades.  The management style at Lucas-TVS allows participation at the worker level. Small Group Activity (SGA) is just an example of this management style. Weakness  Lucas-TVS have not been able to establish a backward integration. It has to further develop its technologies to meet higher quality demand in market  Lucas-TVS is facing high pressure from OEMs in terms of pricing of the product  The company has to motivate development of quality products so as to bring down the rejection levels Opportunities  Rapid inflow of investments in the auto component sector resulting in new green field sites near the vehicle-manufacturing units to ensure JIT delivery to OEMs. This will further open new avenues for the company  With liberalization and the slashing of import duties both on automobiles and auto components, world class automobile manufacturers have shown

interest in entering the Indian markets. Increased production of vehicles will stimulate the auto components industry Threats  Inability to match the technological capabilities of big foreign auto component manufacturers like Delphi, MICO etc.  The company has established links with many collaborators which is not the case with other Global players, hence might prove to be a threat in future. ISSUES AND CHALLENGES The Indian Auto-Component industry as a whole is engulfed with certain challenges. These challenges can be dissected into two categories internal factors i.e. the challenges faced at organizations level and external factors where the other entities, issues outside the organization / industry influence the growth of the industry. Internal Factors  Sustaining Quality Levels  Under-investment in ERP (Enterprise Resource Planning) infrastructure leading to inefficient stock planning and high inventory levels  Rising attrition rate which slows down the growth  Need for Innovation  Enhancement of share of Auto component in global trade External factors  Poor logistics and power Infrastructure  Increasing cost of raw materials and labor wages

 Increasing competition and high lead time for international contracts (from OEMs)  Managing M&A /JV / collaborations.  Tightening environmental & safety regulations leading to high capital investments COMPETITOR ANALYSIS COMPETITOR PROFILE Bosch Limited: Brand logo:

Introduction: Bosch is the flagship company of Bosch India limited. Bosch was set up in Stuttgart in the year 1886 by Robert Bosch. Bosch focuses on core competencies in automotive and industrial technologies as well as in products and services for professional and private use. In the area of Automotive technology, Industrial technology, Consumer goods & Building technology, some 2,81,000 associates generated sales of 52 bilion euros in fiscal 2011. The Bosch group comprises of Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sale and service partners are included, then Bosch is represented in roughly 150 countries. Indian operation: Bosch has its corporate office at Banglore. They have their regional office at New Delhi, Pune, Rajkot, Jamshedpur and Chennai. Their Plants at Jaipur, Nashik, Goa, Bangalore and Naganthapura.

They have over 21,000 employees. Bosch Indias subsidiaries: i) Bosch limited ii) Bosch Rexroth India limited iii) Bosch Chassis System India limited iv) Robert Bosch Engineering & Business Solution limited v) Bosch Electrical Drives India Pvt. Ltd. vi) Bosch Automotive Electronics India Pvt. Ltd. Business sector: i) Automotive products ii) Automotive aftermarket iii) Industrial technologies iv) Packaging technologies v) Consumer power tools & Building technologies vi) and Security systems. Product range in automotive products: Diesel systems: Common Rail system for passenger cars CVs, Axial Distributor injection pumps, Multi-cylinder inline injection pumps, Single cylinder injection pumps, Injector and Injection nozzles, Elements, Delivery valves, Governors, Injection timers for PE pumps, High pressure fuel injection pipes, Fuel filters and water separators, Sensors for electronically controlled fuels, Glow equipments and Electronic control units. Gasoline systems: Electronic control units, Fuel injectors, Lambda sensors, Engine speed sensors, Camshaft position sensors, Throttle position sensors, Temperature sensors, Knock sensors, Combined manifold pressure and

temperature sensors, Hot film air mass meter, Intank fuel pump module, Pressure regulator, Canister purge valves, Connectors and other plastic parts, CVT belts, Spark plugs: Spark plugs for 2,3 and 4 wheelers, Long life plugs(Nickel yttrium and twin electrode) Starters and Generators Automotive Accessories: Diesel fuel injection components, Gasoline systems, Starter motors, Alternators, Automotive belts, Spark plugs, Glow plugs, Glow duration units, Diesel filters, Petrol filter, Lubricant oil filters, Air filters, Cabin filters, Automotive batteries, Inverter batteries, Horn, Relays, Halogen bulbs, Fog lamps, Stop & Tail lamps, Incandescent bulbs, Miniature bulbs, 4 Wheeler head lamps & assemblies, Wiper blades, Clutch plates, Pressure plates, Break pads, Break fluids, Lubricants, Gear pumps. Principle customers: Domestic customers: i) Passenger cars: Maruti Udyog, Tata motors, Mahindra & Mahindra, Honda Siel, General motors India, Ford India, Tata Fiat India, Hyundai motors India, Nissan India. ii) Commercial vehicles: Swaraj mazda, Tata motors, Eicher & Volvo motors, Ashok Leyland, Man Force Trucks, Tatra motors, Indofarm, Standard combines, John deere India, TAFE, SAME India, International Tractors, HMT tractors. iii) Earth movers: L & T Komatsu, BEML, BHEL, Caterpillar India, Tata Cummins, Cummins India, Greaves cotton, Lombardini, Kirloskar Bros ltd. International customers: i) Passenger cars: Borgward, BMW, Mercedes, NSU, Opel, Fiat, SAAB, Volkswagen, Alfa Romeo, Porsche, Peugeot, Renault, General motors, Ford, Audi. ii) Commercial vehicles: Volvo, Taunus, Goliath, Lloyd, Renault trucks, Mercedes trucks , MAN, Dhimler & Chrisler. Products:

Distributor pump

Starter

Alternators

Valeo India Pvt Ltd: Brand logo:

Introduction: It all began in 1923 in Saint-Ouen, France, with the production of brake linings and clutch facings. Nearly a century later, Valeo is one of the world's leading suppliers of components, integrated systems and modules for the automotive industry, mainly for CO2 emissions reduction. Valeo focuses on the development of innovative technologies that satisfy market needs. The Groups strategy is based on two main vectors of growth: CO2emissions reduction, and Asia and emerging countries. Valeo offers solutions for reducing the consumption of internal combustion engines, as well as for hybrid and electric vehicles, and for lowering the energy consumption and weight of components. Valeo has a streamlined organization comprising four Business Groups (Powertrain Systems, Thermal Systems, Comfort and Driving Assistance Systems, and Visibility Systems) and the Valeo Service aftermarket activity. Valeo is present in 27 countries, the Group employs 60,900 people at 109 production sites, 20 Research centers, 38 Development centers and 10 distribution platforms Indian operation: Valeo have their production centers at Chennai and Pune.It also have its Research & Development centers at Chennai & Pune. They have their Corporate office at Chennai. Valeo Indias subsidiaries: i. Amalgamations Valeo Clutch Private Limited ii. Valeo Lighting Systems (India) Pvt. Ltd

iii. Valeo Engine Cooling (India) Pvt. Ltd iv. Valeo Friction Materials India v. Valeo Minda Elelctrical Systems India Private Limited vi. Minda-Valeo Security Systems, Private Ltd. Business sector: i. Wiper Systems ii. Transmissions iii. Lighting and Signaling iv. Air Conditioning v. Engine Cooling vi. Electrical Systems vii. Post-Equipment viii. Security Systems ix. Switches & Detection Systems x. Electrical Accessories xi. And Braking & Ignition. Product range in automotive products: Wiper Systems: Windscreen wiper blades, arms, front and rear wiper motors and linkages. Transmissions: Clutch kits, hydraulic release bearings, radial dual mass flywheels, flexible flywheels, 4-piece kits with rigid flywheels. Lighting and Signaling: Main headlamps, auxiliary lamps (including fog lamps and long-range xenon), daytime running lights, rear indicators, lamps, work lights. Electrical Systems: Straters and Alternators, Window lifts and other electrical accessories.

Braking & Ignition: Brake pads and discs, brake shoes, rear brake kit, hydraulic components, brake fluid, Pencil coils, rail coils, integrated ignition modules, spark plugs and glow plugs, a wide range of spares.

Principle customers: Domestic customers: Ashok leyland, Force motors, Ford India, Hindusthan motors, Hyundai, International tractors International cars & motors, John deere,Mahindra & Mahindra, Mahindra gujarat tractors, Maruti suzuki, New holland, Punjab tractors, Swaraj mazda, TAFE, Tata motors International customers: i) Passenger cars: Opel, Fiat, SAAB, Volkswagen, Alfa Romeo, Porsche, Peugeot, Renault, General motors, Audi,Ford motors, Toyota. ii) Commercial vehicles: Volvo, Renault trucks, Mercedes trucks , MAN,Tatra vectra. Products: Wiper motor Power train-Dual dry clutch

Tarque converter

Starter Alternator

Mitsubishi electric India Pvt Ltd: Brand logo:

Introduction: The Mitsubishi Electric Group operates on the corporate principle of contributing to creating a vibrant and affluent society by enhancing its technologies, services, and creative powers, as a leader in the manufacture and sales of electric and electronic equipment used in Energy and Electric Systems, Industrial Automation, Information and Communication Systems, Electronic Devices, and Home Appliances. Over the last two decades the company began extending its reach overseas while establishing itself as a pioneer in the development of computers, advanced air conditioning systems, automobile electronics, satellites powered by photovoltaic technology, and nuclear power generation. From 1980 to the present day, the pace at which Mitsubishi Electric has introduced and refined breakthrough technologies and products for the benefit of society,

industry and individuals has been nothing less than astonishing. These technologies include the world's first large-scale LED screen for sports arenas, the world's largest CRT television screen for the consumer market, the world's first spiral escalator, the world's fastest elevators, the antenna technology behind the world's first commercial in-flight Internet service, and much more. Today Mitsubishi Electric is a global giant, with operations in 35 countries, more than 100,000 employees, and consolidated net sales of more than US$32 billion.

Indian operation: Mitsubishi electric has two different business in India i) Mitsubishi Electric India Pvt Ltd Mitsubishi Electric is a global leader in the manufacture and sale of electrical and electronic equipment for home, commercial and industrial use. Their products and systems are used throughout India. ii) Mitsubishi Electric Automotive India Pvt. Ltd It has its corporate office at Gurgaon in the state of Haryana. Business sector: i. Air conditioning system ii. Automotive equipment iii. Building systems iv. Energy system v. Factory automation system vi. Home products vii. Information & Communication systems viii. Public systems ix. Semiconductors & Devices x. And Automotive systems.

Product range in automotive products: EPS ECU,EPS Motor,ECU for engine & Transmission, Micro Airflow sensor, Revolution sensor (GMR type),Ignition coil, Electric EGR-valve(Stepper motor type), Electric EGR-valve(DC-motor type), Purge control solenoid-valve, Variable valve timing, High pressure injector, Fuel pump module, Starter motor, Alternator(9G Alternator), Oil pressure control valve, Actuator and valve for turbocharger, Engine coltrol unit,Injector driver, Fuel pump module,Pressure sensor, Ionic current detection system,Knock sensor, Intake air temperature sensor, Throttle body, Throttle chamber, Idle speed control valve,Vacuum pump, Ignition coil and driver integrated, Distributor, Magneto and control unit, Oil temp sensor, Transmission control unit, Air actuator, Actuator for swirl control valve. Principle customers: Mitsubishi motors, Suzuki, Volkswagen.

Products: i)Starter motor ii) Alternator iii) Electric power steering actuator

iv)Actuator

To Identify Tractor segment electrical potential and Lucas TVS Spare parts

Name of the Dealer: _____________________ Contact no:__________________ Address: _____________________

Date: ____________ Place: ____________ Mail id: ____________

(Please tick your choice of option) 1. How old is your dealership? a) 0 5 years b) 5 10 years c) 10-20 years d) More than 20 Years 2. Your experience in this field? a) 0 5 years b) 5 - 10 years c) More than 10 years 3. Please prioritize your customers? (1 to 3, 1- top priority) Individuals corporate Government sectors

4. Can you list the commonly sold models

5. What is the life of starter and alternator?

6. What is the monthly sale?

7. What is the annual maintenance cost?(tick mark Lucas- TVS Bosch Auto lac 8. Repair expenditure for starter motor and alternator? Lucas- TVS Bosch Auto lac 9. Where you get the product repaired by? Original Manufacturer Local Dealer

10. Which brand has maximum sales in your shop? Why?

11. How customer rating the pricing of full unit and also spare parts?(tick mark Lucas-TVS Bosch Autolac 12. What type of spare parts that the customers prefer?(tick mark Genuine spare parts Lucas-TVS Bosch Autolac Others Local spare parts 13. How customer rating the pricing of full unit and also spare parts?(tick mark Lucas-TVS Bosch Autolac 14. How do you rate the availability of spare parts? Lucas-TVS Bosch Autolac 15. Whether all Lucas TVS distributors visiting the area? Yes No

If so what is the frequency and how the service level?

a) Daily

b) Weekly

c) Monthly d) 3 months e) 6months

16. Is there is any critical in spare parts or services from Lucas distributors? Yes No

17. How is the supply performance of various products of Lucas- TVS? Excellent good fair bad very bad

18. Any specific features to be added in the products?

19. Please give the number if unit sold for a) March 2011 b) April 2011 c) May 2011 20. Prioritize the factors (1 7 Influencing the sales , 1 having the top priority) Quality Finance scheme Brand name Others price Service ability technology

21. Which is the Best brand preferred in Tractor segment?

22. Any other feedback with respect to Lucas-TVS products in the field?