ORGANIZATION STUDY

ON
FEDERAL MOGUL
GOETZE INDIA LIMITED
 INDUSTRY PROFILE
• History or origin of Indian Automobile Industry:
– The Indian Automotive Industry after de-licensing in July, 1991 has grown at a
spectacular rate of 17% on an average for last few years.
• India as manufacturing and sourcing hub:
When Hyundai and Ford made India a manufacturing hub for particular models of cars, many
others trusted their decision and followed suit.
• Current status:
– The Indian auto industry is one of the largest in the world. The industry accounts for 7.1
per cent of the country's Gross Domestic Product (GDP).
– India is also a prominent auto exporter and has strong export growth expectations for
the near future.
– The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.06 billion
during the period April 2000 to March 2016, according to data released by Department
of Industrial Policy and Promotion (DIPP).
• Future prospects:
1. The Indian automobile market is tipped to become the third largest in the world by 2020
according to estimates by Ernst & Young.
2. India automotive sales to exceed the US market by mid 2030s
3. Here are the 5 drifts that will shape the future of the automobile industry:
✔ Self-Driving Automobile
✔ AI-Controlled Automobile Infotainment Frameworks.
✔ Block chain-Powered Maintenance and Repair.
✔ Vehicle-to-Vehicle Connectivity.
✔ AR Controlled Upkeep
 ORGANIZATION PROFILE
• BACK GROUND:
– Federal Mogul Corporation was founded in 1899 in U.S.A. Federal Mogul is a Quality
excellence in products, trusted brands and creative solutions.
– Federal Mogul Goetze India ltd was established in the year 1977.
– GIL set up a Joint Venture with Teikoku Piston Ring Company (TP) to manufacture
these rings in Bangalore in 1997.
– Federal Mogul Corporation had been associated with Goetze (India) Ltd., as a promoter
and as a technical partner for rings and sintered parts ever since inception and for pistons
since the year 2004.
– FEDERAL MOGUL GOETZE (INDIA) LIMITED & FEDERAL MOGUL TPR
(INDIA) LTD., Bangalore are group companies of Federal Mogul Corporation, America.
• Achievement / awards:
– "Daimler Supplier Award 2010" from Daimler Trucks and Buses to Federal-Mogul
Powertrain.
– 2011 QSB (Quality System Basics) certification from General Motors for the Federal-
Mogul manufacturing facility in Orangeburg, South Carolina.
• Nature of the business carried Federal-Mogul Goetze (India) ltd.
– Federal Mogul Corporation manufactures precision components for cars, trucks, and
construction vehicles, marketing its products to original equipment manufacturers
(OEMs) and aftermarket customers in the United States and around the world under
brand names such as “Federal-Mogul,” “Signal-Stat,” and “TRW”.
 ‾ It also packages products for third - party private label brands.
• Company Vision:
⁻ To be one of the world’s leading automotive solution provider and to be a global player in
the field of piston, and piston rings and therefore to move towards manufacturing
excellence of the company

• Company Mission:
⁻ To support the products with all technical expertise at the customers end.
⁻ To be known as the best company for returns to shareholders.
⁻ To increase the market share by 30%,
⁻ To export 25%of total production every year
⁻ To reduce the product development time by 50%
• Quality Policy:
⁻ FMGIL has a well-equipped quality assurance department working to achieve the policy of
quality assurance is formed by the management and displayed in all the departments.
Quality Control is the landmark of FMGIL and it strives to see the quality objective is
achieved For the FMGIL quality is everything and the company follows a system of TQM
which says at every level of management. FMGIL is a company with ISO 9001 and QS
9000 Certification to achieve the maximum quality required.
• Competitors Information:
The main players in the Indian Piston Industry are given below.
⁻ India Piston [Market share of about 20-22%]
⁻ Sriram Pistons [Market share of about 15-17%]
⁻ Samkrung Pistons [Market share of about 8-12%]
• PRODUCT PROFILE

Different Types of Pistons and Rings and their specifications:

1. Piston aluminium gasoline pistons
2. Aluminium diesel pistons
3. Magnum monosteel piston
4. Rings.
5. Scraper rings
6. Plastic bridge blades
7. Oil-control rings
8. Compression rings
9. Piston rings
10. Cylinder liners
11. Light metal castings

• OWNERSHIP PATTERN:

— The company organization structure is a wide organization structure, it starts with Chairman
who is K.N Subramaniam and next Managing Director Andrea skolf and Director of
Operations Rainer jueckstock. after that the structure splits to several departments like
pistons, Rings, FMTPR, tools, H R, Finance, purchase, each production departments will
have a plant manager and functional departments has General Manager.
• INFRASTRUCTURE DETAILS :
Federal Mogul has full-fledged 5 departments that has been clearly discussed below:
1) Human Resource Department
2) Finance Department
3) Purchase Department
4) Sales Department
5) Production Department

• FEATURE GROWTH AND PROSPECTS:

‾ The plant is on the threshold of massive expansion for meeting the ever increasing
demand of products. The expansion plans envisage an increase in annual production
capacity of piston rings like molybdenum coated rings, profile ground rings and thin
rings.
‾ Company has already spent crores towards replacement of machines and plant.
‾ Company have further plans to replace machineries and plants, and is likely to add
assets to augment the capacity.
 MCKENSY’S 7S FRAMEWORK
• Organization structure
Chairman
• Strategy:
✔ Sole suppliers for original equipment market.
✔ Centre of excellence in gasoline.
✔ Facilities for gas nitriding & auto phospating.
✔ Planting facilities & cost iron rings.
• System:
The present system has been designed keeping in mind any Organisation in service industry
where the primary resource is manpower. This system can be customized and implemented in
any organisation. It gives a tool to manage human resource through efficient deployment and
management of Manpower. Top management can use this system to manage the
implementation of strategies by checking that the human resources are deployed in a proper
manner to achieve the business goals
• Style:
‒ Appeals against orders of discharge or dismissal should be addressed to the Chairman of the
Zonal Works Committee concerned, on Grievance Form-III (copies of which are available
at the Employment Bureau), or unordinary paper, and these will be considered at Stage
Three, in the first instance. This should be done within six weeks of the receipt of the
orders.
‒ The decision reached by the Management after due consideration of the recommendations
of the Zonal Works Committee will be communicated to the employee on Grievance Form-
III through proper channels. The Zonal Works Committee’s unanimous recommendations,
to which the Management or the Union raises no objection within 10 days of the receipt of
such recommendations, shall be final.
• Staff:
✔ Total -3634; Piston plant-1845; Rings plant-1199; Other -590.
• Skill:
Managing the surplus manpower with human touch has and always will be the cornerstone of
the HR policy of federal mogul Goetze India limited.
‒ Cultural issues
‒ Leadership
‒ Communication or education
• Shared value:
a) Maintaining safety standards.
b) Periodic audit & continuous improvements is done.
c) Always give preference for quality and time to time delivery.
⮚ In federal mogul R&D is known as “Application & Engineering” Where they’re some of their
objectives are:
1. To develop new copies at minimum time.
2. Satisfaction of customers.
3. Providing best designs.
⮚ Medical Insurance and Hospital Service (MIHS):
The policy no: 040800/48/11/41/0N000182 A/c Federal Mogul Goetze (India) Ltd.
⮚ Purchase department:
✔ Procure at the Right Place
✔ Procure at the Right Time
✔ Procure at the Right Quality
✔ Procure at the Right Kind of Transport.
 SWOT ANALYSIS

Federal-Mogul Corporation - SWOT Analysis company profile is the essential source for top-
level company data and information. Federal-Mogul Corporation - SWOT Analysis examines the
company’s key business structure and operations, history and products, and provides summary
analysis of its key revenue lines and strategy.
• Strengths:
– Producing high quality products comparable with the international standards as awarded
by ISO 9001.
• Weakness:
– Facing some infrastructure related problems and erratic power supply.
– Problem of timely availability of imported and indigenous raw materials.
• Opportunities:
‒ Federal-Mogul Goetze (India) Limited engages in the manufacture, supply, and
distribution of automotive components for two/three/four-wheeler automobiles in India.
• Threats:
‒ The company's working in the last decade is roughly in keeping with the observations of
the preceding paragraph. In the last ten years it has published its working results for one
15-month period, two 9-month periods, and seven 12-month periods - in all amounting to
a total of 117 months. In normal circumstances it would have declared cumulative results
for 120 months
 ANANLYSIS OF FINANCIAL STATEMENT
• CURRENT RATIO:
The liquidity position of the company fluctuated from 2015-2016 to 2017-2018 respectively. The
firm has low liquidity position in 2017-2018 that is 11.65,compared to other years , the company
was having a very good liquidity position by having current ratio of 17.26 in the year 2016-2017.
The firm has to maintain the current ratios in respect to previous years.
• OVERALL PROFITABILITY RATIO:
This Ratio shows the capacity to make profit by using those assets, in 2016-2017 the company has
gained good rate of profit that is 0.72 compared to the year 2017-2018 that is 0.7. But they have to
improve overall profit ability ratio by improving the profits in the future.
• DEBT RATIO:
The company has maintained a good Debt ratio that means it has a stable business with the
potential of longevity, the company has kept the Debt Ratio under 0.5 which is less risky which
means the company has more than twice the number of assets than liabilities. Company should
maintain same debt ratios in the coming years also.
• PROPRIETOR RATIO:
The Proprietor ratio maintained by the company from year to year the ratio is almost same for all
the three years. Hence it can be concluded that there is no much risk for creditors and they are in
the safer position to recover their loans from the company.
• QUICK RATIO
The company has quick ratio of 15.20 in 2016; 10.07 in 2017; 8.98 in 2018. With a quick ratio of
higher than 1, company appears to be well positioned to cover its current liabilities and has liquid
assets available to cover short-term debt in all the years.
• WORKING CAPITAL TURNOVER RATIO
The company has Working capital turnover ratio of 1.36 in the year 2017 and 1.32 in the year 2018.
Compare to 2017, 2018 working capital turnover has decreased. Since there is a high turnover ratio
in 2017 it shows that management is being very efficient in using a company’s short-term assets and
liabilities for supporting sales, i.e., it is generating a higher amount of sales for every working capital
used. In contrast, since there is a low ratio in the year 2018 compared to 2017 it may indicate that a
business is investing in too many accounts receivable and inventory to support its sales – which
could lead to an excessive amount of bad debts or obsolete inventory.
 FINDINGS AND SUGGESTIONS
• FINDINGS:
– The Net income of the Company during the financial year ended 31st March, 2018 was
Rs. 11127.21 lakhs as against Rs. 10005.21 lakhs for the financial year ended 31st
March, 2017.
– During the year under review, the Company made a net profit after tax of Rs. 1,611.60
lakhs for the financial year ended 31st March, 2018 as against the net profit after tax of
Rs. 1314.09 lakhs for the financial year ended 31st March, 2017.
– No amount is proposed to be transferred to the general reserves. The Company proposed
a dividend (including dividend tax) of Rs. 734.18 lakhs.

• SUGGESTIONS:
– The company is facing erratic power supply, to which the company can use alternative
solutions like solar panels solar photovoltaic. Solar PV systems capture the energy from
the sun’s light and convert it into usable electricity which we can use to power
appliances.
– The company is also facing problem of timely availability of imported and indigenous
raw materials, to which the company have to find nearby suppliers or make a
commitment from whom they buy to supply on time.
 LEARNING EXPERIENCE

Learning experience at FMGIL has been very informative and got to learn the functioning of a
full-fledged manufacturing industry in detail. We had already been visited manufacturing
industries in and around Bangalore but proper in-depth knowledge of the work flow of the various
associated departments could only be understood through this internship project. The HR
department has been very resourceful in providing the information required to successfully
complete the report. In addition the company also allowed to access through various departments
and questioned doubts and queries were addressed with promptly.