Neets Project v Guard

V –GUARD INDUSTRIES LTD

AN ORGANIZATIONAL STUDY AT V –GUARD INDUSTRIES LTD

A Project report submitted in partial fulfilment of requirement for the award of degree of Master of Business Administration of University of Kerala Submitted by

NEETHA.K Reg. No. MGT 1005364 UNDER THE GUIDANCE OF Mr. MANOJ KRISHNAN C.G CO-ORDINATOR, IMK ADOOR

INSTITUTE OF MANAGEMENT IN KERALA ADOOR

IMK ADOOR

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V –GUARD INDUSTRIES LTD DECLARATION

I declare that the project report entitled ―AN ORGANISATIONAL STUDY AT V- GUARD INDUTRIES‖ submitted by me for the award of the degree of Master of Business Administration of the University of Kerala is my own work. The report has not been submitted for the award of any other degree, diploma, fellowship or any other similar title or prizes and that the work as such has not been published in any journal or magazine.

Place: ADOOR

NEETHA K

Date:

MGT 1005364

IMK ADOOR

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V –GUARD INDUSTRIES LTD ACKNOWLEDGEMENT

I am deeply indebted to Dr. K.S. Chandrasekhar, Head, IMK for his valuable suggestions and

for giving

me an over view on how to do the project. Words can hardly express my gratitude to Mr. John, Hr manager, V GUARD for the valuable guidance and assistance in completing the work successfully. I wish to express my heartfelt thanks to Mr. Manoj Krishnan.C.G, Coordinator, IMK, Adoor

granting

permission to pursue my project work at V GUARD I take this opportunity to express my sincere gratitude and thanks to Mrs. SUMA S R Faculty, IMK ADOOR for providing me with adequate materials for doing the project work. I wish to place on record my gratitude to all others who have directly or indirectly helped me, my parents and my friends for their support.

Place: Date:

IMK ADOOR

NEETHA.K

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V –GUARD INDUSTRIES LTD

CONTENTS CHAPTERS

TOPIC

PAGE No:

CHAPTER1

INTRODUCTION

08

CHAPTER2

OBJECTIVES OF THE STUDY

09

KEY REGULATION AND POLICIES

09-11

RESEARCH METHODOLOGY

11

LIMITATIONS

12

INDUSTRIAL PROFILE

14 – 18

GLOBAL SCENARIO

14-15

INDIAN SCENARIO

15

ENTRY INTO GARMENTS

15-16

REALIZATION OF GREAT DREAM : THEME 16-18 PARK FACTORS GOVERNING THE GROWTH OF THE INDUSTRY

CHAPTER3

IMK ADOOR

COMPANY PROFILE

18

19-30

COMPANY PROFILE

20

HISTORY

20-21

MAJOR EVENTS AND BREAKTHROUGH

21-23

CERTIFICATE, AWARDS,

23

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V –GUARD INDUSTRIES LTD RECOGNITION

CHAPTER4

CHAPTER 5

PROMOTERS OF V-GUARD

23

BOARD OF DIRECTORS

24

INDEPENDENT DIRECTORS

24

VISION&MISSION

25

QUALITY POLICY

25

PRODUCT PROFILE

26-30

DEPARTMENT PROFILE

32-65

DEPARTMENT PROFILE

33

ORGANIZATION CHART

34

DEPARTMENT DETAILS

35-65

CORPORATE SOCIAL RESPONSIBILITY

66-68

ENVIRONMENT ANALYSIS

69-71

SWOT ANALYSIS

70-71

CHAPTER 6

PORTERS FIVE FORCE ANALYSIS

72-78

CHAPTER7

FINDINGS, CONCLUSION, SUGGESTIONS

79-82

FINDINGS

IMK ADOOR

80

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V –GUARD INDUSTRIES LTD CONCLUSION

81

SUGGESTIONS

82

BIBLIOGRAPHY

IMK ADOOR

83

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V –GUARD INDUSTRIES LTD

CHAPTER 1

INTRODUCTION

IMK ADOOR

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V –GUARD INDUSTRIES LTD INTRODUCTION Organisational study is done in order for the purpose of

acquiring practical

knowledge of

working and functioning of the company. This shows us how the different departments in an organisation work and wins as a single unit. I choose to do my project in v guard industries because it was 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 period of study was from 25th JULY

to 7th AUGUST and was conducted at head office at Vennala.

V GUARD industries being INDIA ‗S prestigious electronically and manufacturing company was established in the year 1977 from the vision of one man KOCHOUSEPH CHITTILAPPILLY. It plays a vital role for the economic development of our country. Their untiring commitment for performance, cutting edge technology, innovative design , dependable service standards have lead to unrivalled product quality and trusted brand image. V GUARD ‗S product range deals into various ranges of products which cater the requirements of consumer durable industry

, agriculture and construction sectors of the country. It has a strong

distribution and marketing channel in small towns across India, which helps in tapping the rural and the interior market. India being aimed to convert her into developed nation has to make developments in all core sectors like infrastructure, power; consumer durables etc. and this in turn augment the growth of

the

corporate sector of the 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 and white goods. The aspiration to own luxury goods

is also

increasing and this has resulted in a revolution of consumer durables. The company is confident of capitalizing all these factors and increasing market presence across the country with focus on the penetrating the rural markets.

IMK ADOOR

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V –GUARD INDUSTRIES LTD OBJECTIVES 1. To study about the functions of various departments and hierarchy of the organisation. 2. To know about the capital

requirements, financial requirements, technical know- how,

plant machineries, raw materials. 3. To look after employees welfare 4.

To contribute towards HRD

5. To know the CSR and quality measure adopted by the organisation.

KEY INDUSTRY REGULATIONS AND POLICIES The relevant provisions of some of the regulations and policies applicable to us are given below:

The Factories Act, 1948 The Factories Act has been enacted to consolidate and amend the law regulating labour in factories. The Act aims at protecting human beings from being subjected to unduly hours of bodily strain or manual labour. The Act provides that employees should work in healthy and sanitary condition so far as the manufacturing process will allow and that precautions should be taken for their safety and the preventions of accidents.

The Contract (Regulation and Abolition) Act, 1970 The Act applies to every establishment in which 20 or more workmen are employed or were employed on any day of the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months 20 or more workmen.

The Environment (Protection) Act, 1986 The Act provides for protection and improvement of environment and for matters connected therewith. The Act aims at prevention of hazards to human beings, other living creatures, plants and property. Under the Act the Central Government shall have the power to take all measures as it deems necessary or expedient for the purpose of protecting and improving the quality of the environment and preventing, controlling and abating environmental pollution.

The Central Excise Act, 1944 IMK ADOOR

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V –GUARD INDUSTRIES LTD The Central Excise Act consolidates and amends the law relating to Central Duties of Excise on goods manufactured or produced in India. Excisable goods under the Act means goods specified in the Schedule to the Central Excise Tariff Act, 1985 as being subject to duty of excise .Under the Act a duty of excise is levied on all excisable goods, which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985.

The Employees Provident Fund Act, 1952 The Act provides for the institution of Provident Funds, Pension Fund and Deposit-Linked insurance fund for employees in Factories and other Establishments. The Act applies to (a) every establishment which is a factory engaged in any industry specified in Schedule of the Act and in which 20 or more persons are employed and (b) any other establishment which the Central Government by Notification specify giving not less than two months‘ notice of its intention to do so in the Official Gazette. Effective from 01.06.2001, every employee drawing wages and Dearness Allowance up to Rs. 6500/-per month will become eligible for membership from the very first day of his joining the establishment covered under the Act.

The Employees State Insurance Act, 1948 The object of the Employees State Insurance Act 1948 is to provide for certain benefits to employees in case of sickness, maternity and employment injury and to make provisions for certain other matters in relation thereto.. The woman employees also need no longer fear that they would be dismissed or removed from service in case they expect babies. Such female employees not only retain their jobs but they get maternity benefits for a period of twelve week before and after confinement.. Failure to fulfil those obligations exposes an employer to prosecution.

The Payment of Gratuity Act, 1972 The payment of gratuity Act, 1972 was enacted to introduce a scheme for payment of gratuity for certain employees employed in Industrial and commercial establishment as a measure of social security.

Industrial Disputes Act, 1947 The Act was enacted, with the object, interlay, of settlement of industrial disputes and to achieve industrial harmony. The Act contains provisions for reference of industrial disputes and their settlement. In addition, IMK ADOOR

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V –GUARD INDUSTRIES LTD the Act has made provisions relating to lay off and retrenchment to establishments to which the Act applies. Special provisions have also been made in respect of lay-off, retrenchment and closure in certain establishments.

Workmen’s Compensation Act, 1923 The act was enacted to provide for the payment of compensation by certain classes of employers to their workmen. The act contains provisions for payment of compensation for personal injury caused by accident or any disease or various kinds of disablement (partial or whole or temporary or permanent etc.), all arising out of or in course of employment.

METHODOLOGY Research methodology is a systematic analysis of a problem and reach a conclusion. It may be understood as a science of studying how research is done scientifically. The study is done through collecting primary data and secondary data. 1. PRIMARY DATA Primary data are those data which are directly collected or which are the first hand data. Primary data are accurate and reliable. These data‘s are collected by interaction of staffs, consumers, interviewing managers. 

Primary data are collected by direct interview with department heads.

2. SECONDARY DATA Secondary data are those which have been collected by some other person for his purpose. They are usually in shape of finished products. Secondary data consist of catalogue, manuals, magazine, annual reports, and internets. Secondary data are collected by 

Annual reports of V guard industries ltd



Periodical , books published by the company



Official websites of v guard

IMK ADOOR

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V –GUARD INDUSTRIES LTD LIMITATIONS 

Limited time schedule for study



Busy work schedules of the employees forced to depend on secondary data.

IMK ADOOR

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V –GUARD INDUSTRIES LTD

CHAPTER 2

INDUSTRY PROFILE

IMK ADOOR

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V –GUARD INDUSTRIES LTD INDUSTRY 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 the industry grew up in a sheltered environment , each of these interventions was aimed at securing protection for oneself and ensuring growth of one‘s own organisation 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 cost. Since last decade India has witnessed what global players have achieved and what capable of achieving .We are becoming aware of competition on our turf.

they are

In this scenario,

every company complains of increases competition, lower order books and 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.

GLOBAL SCENARIO There is a sizeable potential market for voltage regulators in Asia, South America, Africa and the Middle East since their electrical generations and distribution infrastructure is still nascent. While fluctuation in supply voltage in the United States is about 5 percent, it is around 20 percent in Mexico and South America and 10 to 15 percent in developing nations of Asia. Such fluctuations are very damaging, especially because most applications connected to the supply have many electric components Countries that lack a basic national power infrastructure generate power for individual establishments on a small scale using crude facilities. Such plants, especially the ones located near mines and oil wells, have substantial need for voltage regulation .The drive to modernize industrial

and telecommunications systems in developing countries has to be backed with investments in voltage regulators to protect the equipment and extend their lives. IMK ADOOR

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V –GUARD INDUSTRIES LTD While customers readily invest in uninterruptible power supply (UPS) systems to safeguard against black outs, they seldom feel the need to install voltage regulators because of the invisibility of power fluctuations .This mind set has to be remedied by emphasizing the importance of controlling fluctuations to prevent damage to loads connected to the supply . Greater customer advances about advantages of each voltage regulating technology and the applications they are suited for can also drive demand.

INDIAN SCENARIO Voltage stabilizer are considered to be a necessity in most parts of India to protect consumer appliances like TV, refrigerators, air conditioners etc as many regions in India face problem of poor quality power supply fluctuation & high voltage. Though some models of these appliances are sold with built in stabilizer, many consumers still prefer to employ stabilizer for complete protection. The total market size for the consumer durables market is about Rs 13600 crore in which CTV is the largest contributor in this segment and the market has been estimated at 15.15 million units in the year 2009-2010 (Source: IMRB international survey – august 2007) The consumer durable sector has witnessed an overall growth of 27.5%in 2009 compared to the corresponding previous year. The sectors which have recorded excellent growth rates in terms of quantity produced are air conditioners. Colour TV, and refrigerators which in turn lead to increase in the growth rate of stabilizers in the market tremendously.

ENTRY INTO GARMENTS Chittilappilly's empowerment of trusted people to implement projects and run them independently has been a management practice, which was stretched to his wife Sheela. A garment unit was started and Sheela was fully delegated to run the business. It was a bold decision to enter a diversified business activity. Chittilappilly was confident that his wife with her skills in managing home, and interest and involvement in social projects, could manage this garment unit. "It was her own idea", Chittilappilly remembers with confidence. Chittilappilly was confident that it was a business suited to her frame of mind. The confidence is reinforced by the fact that this sector is growing upwardly with much scope for ` exports. However, Chittilappilly wanted the brand name to be delinked from V-Guard. Therefore, the garment products were IMK ADOOR

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V –GUARD INDUSTRIES LTD branded as "V Star". At present, the unit sells ladies garments and has a turnover of approximately Rs. 10.5 crones (2003-04). The garment was also outsourced as the management team had become experienced in running business with complete out sourcing. At present, the unit faces much competition from unorganized sector, which is virtually exempt from tax burdens. However V Star's products are targeted towards the brand conscious up segment consumers enabling the price to be higher than the unbranded garments. V Star products are sold through selected outlets where choosy and finicky women flock in.

REALIZATION OF A GREAT DREAM: THE THEME PARK Chittilappilly continuously exercised delegation to his trusted senior management team consisting of Mr. Vijayan, the GM, Mr. Antony

Sebastian, the DGM and Mr. Jayaraj, the AGM, and others. A. major

intention was to set apart his time for creative conceptualization of new projects. Moreover, it enabled him to get out of the monotony in mundane and routine operations for which his management team is l lore thorough than Chittilappilly himself. It was his desire to do something unconventional and different from his main stream of business activity. He used to spend his leisure time in going to amusement parks than going for shopping. A visit with his family to many such amusement parks in India and abroad created so much passion for starting an amusement park in Cochin. He said a man to his desire not because of the 18 acres of beautiful land he possessed at Kakannad, the suburb of Cochin, but because he wanted to be truly creative and unconventional in his new endeavours. Moreover, he was confident that an amusement park of this kind would generate rich cash inflow due to its attractiveness to a vast majority of fun-loving Keralites. A market research by V-Guard team showed that more than 50 % of the visitors to parks located in neighbouring Tamil Nadu are Keralites. Chittilappilly's confidence was strengthened by the belief that this project with its comparatively lesser portion of variable expense and at current level of fixed cost can generate higher sales revenue and profit with reasonably higher margin. Without a second thought, he conveyed his new idea to his management team and separated a set of creative-minded subordinates for exploring and exploiting this opportunity. Eighteen acres of land was added to the existing property to convert the land into a beautiful landscape. The team was sent to different amusement parks in India and abroad and they were energized to go into action. It took two years of meticulous planning and action for Chittilappilly's team to open the floodgates of VGuard amusement park to the public in 2000. While selecting human resources for Veegaland, Chittilappilly was not particular not to pick up anyone having previous experience in water theme parks, IMK ADOOR

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V –GUARD INDUSTRIES LTD nor did he choose an architect who had experience in designing theme parks. This was because he was apprehensive of stereotyping and imitation, which would hamper the creative and innovative culture that VGuard team possessed. "A seasoned architect wouldn't accept my ideas", Chittilappilly says. Therefore, a young and dynamic architect was chosen for this Herculean task. Yet Chittilappilly confesses that some premature ideas were implemented in the initial stage which had to be rectified later. The visit to leading theme parks in India and abroad by the selected empowered team and their experiential learning put tremendous confidence in the team. Chittilappilly was only coordinating their visit and action plans. It is amazing to note that even the food and beverage team intended to run the restaurants and eat-outs in Veegaland were from V-Guard Itself. Attention to every detail and precision and the hard labour of the team made a highly cherished dream a reality. In 2005, Veegaland is completing its fifth year of operation. People visit Veegaland just like they go for religious pilgrimage. The beautiful and clean ambience of Veegaland is a unique experience for the visitors. No wonder many members of the maintenance staff are engaged in painting and repainting the inside of the theme park to upkeep the fresh outlook. Although school children constitute the major segment, Gulf malayalies are a niche segment and brand ambassadors of Veegaland. These NRIs give good word of mouth publicity for the theme park.Guard's strong dealer network helped very much in promoting Veegaland in distant parts of Kerala and outside. A theme park like this is affordable and matching with the life style of Keralites. The investment in the park is comparably so high that the facilities, design, service and amusement level are unmatchable. Hence, the investment has caused entry barriers for other ambitious business groups to try their fortune in a theme park. The scale and magnitude of visitors is very encouraging according to the management team of Veegaland. In the peak months of March, April and May, the number of visitors rises to as high as 5,000 per day. This unexpected boom in the number of visitors necessitated major modification and expansion involving doubling of the capital investment. With an entry fee of Rs. 3 50 on weekend days and Rs. 280 on other days, and 2/3rd of that for children, it is good money that the business brings. Even with a low figure of 500 visitors per day during lean season, Veegaland was able to achieve a turnover of Rs.18.5 crore and a net profit of around Rs. 5 crore in 2004. Even with a daily cost of Rs. 30,000 for electricity and nearly 200 permanent staff, the management makes it a point not to shut the doors for public even on day of leanest traffic. Encouraged by the positive outcome and personal satisfaction, Chittilappilly enjoys from this venture. Chittilappilly's vision stretched to Bangalore—making a jewel in Bangalore, a water amusement park which is expected to be much more attractive than the Vrindavan gardens. The project is underway at the outskirts of Bangalore. As in the past, a team is cut out from V-Guard, and Veegaland now headed by IMK ADOOR

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V –GUARD INDUSTRIES LTD Chittilappilly's own Australian-educated engineer son and his wife. The park is to be spread over a large span of 80 acres when it becomes fully operational. It is comparable to the world-class theme parks. The investment cost is Rs. 65 crore. Seventy-five percent of the financing is through loan.

FACTORS GOVERNING THE GROWTH OF THE INDUSTRY Every industry thrives on some supporting factors . in this connection there are few factors governing the growth of electrical and electronic industry: 

Research and development played an important role to the increased productivity and higher value added electrical and electronic products.



Foreign investments accelerated growth in production and export as well . to expand their business ,foreign companies have done huge investments which lead developing countries in establishing production units



Global industries like medical, telecommunications, industrial and automotive industries have been cordially supported by electrical and electronic industry.



Increase in income changed living standards of the common mass. As a result , it increased in the demand of electronics especially consumer electronics product globally



Asia pacific region is emerging as the most spinning place for the consumer electronics industry, as the market remains still unreached. Innovation has played importantly in this industry .it led to a consistent demand for newer and faster products and applications.

IMK ADOOR

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V –GUARD INDUSTRIES LTD

CHAPTER3 COMPANY PROFILE

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V –GUARD INDUSTRIES LTD COMPANY PROFILE V-Guard Industries Limited is an India-based company. The Company operates in three segments: electronics, which includes voltage stabilizers, uninterruptible power supply (UPS) and digital home UPS; electrical/electro mechanical products, which includes polyvinyl chloride (PVC) insulated cables, pumps, water heaters, fans, LT power and control cables, and others, which includes solar water heaters, gas water heaters, water level controller and windmill energy. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 310,403,260 meters of PVC insulated cables; 2,888 kilometres of LT power and control cables; 18,000 solar water heaters, and 20,000 pumps. Kochi, 28th May 2010: The Board of Directors of V-Guard Industries Limited, the electronic and electrical major today considered and adopted the audited financial results Company for the year ended 31st March, 2010. Backed by a growth in the white goods and electronic and electrical segments, the Company‘s net profit surged by 46.85% to Rs.25.47 Crore for the year ended 31st March, 2010, from Rs.17.35 Crore for the last year.

HISTORY . The foundation of the business was laid with the formation of a Partnership Concern viz. by their Promoter in the year1977 which was engaged in the business of manufacturing and marketing voltage stabilizers under the brand name ―V-Guard‖. In the year 1992, Premier Electronics, the partnership concern

was dissolved and Mr. Kochouseph Chittilappilly continued the business as a proprietary concern. Also, in the year, 1985, Mr. Kochouseph Chittilappilly started another proprietorship concern by the name of M/s Prompt India for marketing of the products under the brand name of V-Guard. Subsequently, M/s Prompt India changed its name to M/s V-Guard Industries. On February 12, 1996, our Company was incorporated under the name of ―V-Guard Industries Limited‖ under the Companies Act, 1956, with the Registration No. 09-10010 of 1996 having its registered office at 44/1037, Little Flower Church Road, Kaloor , Cochin682017, Kerala,

India .With effect from 1st April, 1996, their company took over the business of the proprietary concern i.e. M/sV-Guard Industries, on going concern basis for a lump sum consideration of 234 lakhs and carried on IMK ADOOR

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V –GUARD INDUSTRIES LTD the business of the firm namely manufacturing and marketing of electronic and electro mechanical appliances. With effect from November 15, 2001 their Company was converted into a private limited company and again got converted into a public limited company on August 1, 2007 and received a fresh certificate of incorporation in the name of ―V-Guard Industries Limited‖. Their

Corporate Identity Number is

U31200KL1996PLC010010. The

company now has diversified into a multi-product company which now manufactures and markets

Electronic Voltage Stabilizers, Monobloc, Jet, Submersible, Compressor pumps and Electric Motors, Insulated Electrical Cables(House Wiring, Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of Power in a small way.

MAJOR EVENTS AND BREAK THROUGH 1977

: Mr KOCHUSEPH CHITTILAPPILY set up premier electronics with an investment

of Rs 100000 and with just two employees. Two refrigerator stabilizer were manufacture each day 1980

: Launched AC stabilizer

1982

: Started another unit called ―Universal Electronics‖

1983

: Started ―supreme Electronics‖

1986

: Started ―prompt India‖ . Expanded operations outside Kerala by opening of Tamil Nadu branch, followed by a branch in Karnataka. Prompt India started Marketing stabilizer in the name of v guard

1987

: Launched Servo-Controlled Stabilizers

1989

: Prompt India converted into ‗v guard industries‘

1992

: Launched v guard pumps and started a new branch office in Andhra pradesh

1996

: v guard industries became a public limited company. Launched v guard Water heaters and wiring cables.

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V –GUARD INDUSTRIES LTD 1997

: launched Aquatron, an electronic water level controller for overhead water Tanks

1998

: launched UPS

1999

: launched digital stabilizer and diversified into electric cables business with V guard cable manufacturing unit at Coimbatore.

2000

: turnover crosses INR 1000 Million mark

2001

: Launched compressor pumps. Company is converted into PVT ltd for Better manoeuvrability

2002

: launched v guard solar water heaters

2003

: solar water heater manufacturing unit and electro mechanical works for Manufacturing pumps in Coimbatore becomes operational. branch office Started in Delhi

2005

: launched solar water heaters with evacuated glass tube collected Technology

2006

: launched v guard fans. Branch office in Bhubaneswar, Pune and Hubli

2007

: new branch offices at Vijayawada. , Bhopal, kalaamb, Vadodara, Kanpur Nagpur, Raipur, Jamshedpur, Ludhiana, and Jaipur. Turnover crossed INR 2400 million marks. V guard industries became a public limited company

2008

: Listed in BSE and NSE. launched inverters & LT cables, new factories at Coimbatore & Kashipur established.

2009

: new LT cable factories at Kashipur and Coimbatore become operational

IMK ADOOR

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V –GUARD INDUSTRIES LTD 2009

: opened manufacturing facility for water heaters and fan at Kalaamb, HP

2010

: turnover crosses 4600 million marks

CERTIFICATION, AWARDS AND RECOGNITION 

Best entrepreneur in Kerala awarded to Kochuseph Chittalllappilly , CMD, V guard industries pvt ltd.(1993)



Highest individual income tax payer from the state 1993 to 1995.



Vyavasaya jyothi award given by the Ernakulum chamber of commerce. (1996)



Industry excellence award for medium scale industries awarded by the institution of engineering (India) ,cochin(1998)



Millennium businessman of Kerala awarded by business deepika (2000)



Business man of the year awarded by dhanam magazine (2007)



Kerala no 1 consumer durables product category from dhanam magazine



Fact MKK nayar memorial productivity award for the year 2006-2007 from Kerala state development corporation

PROMOTERS OF V-GUARD 

Mr. Kochouseph Chittilappilly, Post graduate in Science majoring in Physics from Calicut University.



Ms. Sheela Kochouseph, B.Sc, Home Science graduate from University of Calicut.

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V –GUARD INDUSTRIES LTD BOARD OF DIRECTORS 

Managing Director: Mr. Kochouseph Chittilappilly is a post graduate in Science majoring in Physics from Calicut University. He started his career as a Supervisor in an electronics company, where he worked for 3 years.



Chairman: Mr. P.G.R Prasad is a Certified Associate of the Indian

Institute of Bankers, Chartered

Financial Analyst and Certified Financial Planner, Financial Planning Standards Board India. He was inducted to the Board of Directors of V-Guard as an Independent Director on 16th August, 2007. 

Executive Director: Mr.Mithun Chittilappilly is a Post Graduate in Finance from University of Melbourne, Australia. Mr. Mithun after completing his Graduation in Commerce joined V-Guard to be trained in the various departments of the company.

INDEPENDENT DIRECTORS 

Mr. C.J George

Aged 48 years, is a Post Graduate in Commerce, Certified Financial Planner and a Research Scholar with School of Management Studies of Cochin University of Science and Technology. He joined the company as an Independent Director on 16th August 2007. 

Mr. A.K Nair

Appointed as the Non Executive Director of the Company on 27th May 2009 Mr. A.K.Nair holds a Bachelor‘s degree in Mechanical Engineering with Masters in Business Administration and has over 45 years of Industry experience. COMMITIES 

Audit Committee



Remuneration Committee



Share transfer/ Shareholders Grievance Committee



IPO Committee

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V –GUARD INDUSTRIES LTD VISION Let us endeavour to make v guard a trusted household name.

MISSION 1. To offer a range of products at affordable prices, which add to comfort of life through saving in manual labour time and energy or for entertainment 2. To make their products meet international quality standards and provide trouble free performance. 3. To adopt designs, which support timely brand efficient post sales service. 4. To continuously innovate and add value to their products, if needed with technical collaboration.

Quality Policy / Processess V-Guard has a holistic, enterprise-wide approach to quality. Utmost care is taken while selecting the various components that go into production. Sourcing is done from manufacturers of repute. Each component is checked for quality compliance, and those that do not meet set parameters are rejected. Various checkpoints along the production line ensure quality standards are adhered to. Post-production inspection and certification ensures each individual product that moves off the assembly line conforms to internationally accepted quality and performance benchmarks. It is V-Guard‘s commitment to quality that

has

made

it

‗the

name

you

can

trust‘.

ISO9001 V-Guard's ISO 9001 certified factory for manufacturing electrical wiring cables is set up at Coimbatore, Tamil Nadu.

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V –GUARD INDUSTRIES LTD PRODUCT PROFILE

PRODUCTS 

Stabilizers

V-Guard is the largest selling brand of electronic voltage stabilizers across India.

5 Millions Of

customers were experienced the quality of protection of V-Guard stabilizers for their home appliances. Since 1977 onwards, V-Guard Stabilizer provides reliable and trusted protection from voltage fluctuations and used to safeguard the electronic home appliances like Television, DVD, and DTH Receiver, Music system, Home Theatre, Water cooler, Refrigerator, Deep Freezer, Air conditioner and Microwave oven. VGuard Stabilizers are designed with significant features like HMC Technology, Fail Safe circuit protection, High and Low voltage Protections, Time Delay Protection and Built In Thermal Overload Protection. 

Cables

These are manufactured in conformity with ISI standards at an ISO 9001 certified manufacturing plant located at Coimbatore in Tamil Nadu. V-GUARD PVC wiring cables are manufactured in conformity with ISI standards at an ISO 9001 certified manufacturing plant located at Coimbatore in Tamil Nadu. The HFT IMK ADOOR

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V –GUARD INDUSTRIES LTD technology used in their production ensures absolute safety from electrical hazards. Multi-core flat/round cables (up to 3 -core) are available. Each coil has an assured length of 90 meters.



Pumps

V guard pumps are made according to ISI standards and specifications using high quality components and meet high performance standards. They are known for their

sturdiness, durability and

dependability. The superior technology used in the construction ensures better efficiency and lower running costs. More than 150 different models are available with capacities ranging from 0.25 HP to 25 HP, and are ideal for domestic as well as for agricultural purposes. 

Self Prime & Mini Monobloc Pumps



Centrifugal Pumps



Open well Submersible Pumps



Jet Pumps



Compressor Pumps



Single phase bore well submersible pumps



3 Phase Bore well Submersible



3 Phase Centrifugal Monobloc



3 Phase Open well Submersible

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V –GUARD INDUSTRIES LTD 

UPS

Incredibly Intelligent! The trusted companion for the computer, driven by high end features like advanced PWM – MOSFET Technology with PID Control, Zero Power Drain Technology to prevent Deep Discharge of battery, OFF-MODE battery charging and intelligent software shutdown to provide high quality in power management. Models available in OFFLINE UPS are:





UPS 60 Royal



UPS 70 Vismaya Plus



UPS 120 EB



Online-UPS - Single Phase to Single Phase



Online-UPS - Three Phase to Single Phase



High frequency true online UPS

Electric Water Heaters

V-guard Electric Water Heaters (Geysers) are manufactured in the-state-of-the-art production set up and comes with ISI mark and Pentad Protection System (PPS). Its outer body is made of rust proof, shock proof ABS. IMK ADOOR

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V –GUARD INDUSTRIES LTD The futuristic 'Energy Saving' technology and the 5 unique safety features developed in-house with R&D excellence, make it the most economical and safest water heater. Fine quality components combined with sleek, elegant design in varied colours complement the decor of your bathrooms and kitchen, perfectly.





Instant Water Heaters



Instant Gas Water Heaters



Storage Water Heaters

Solar Water Heaters –

Solar water heaters were launched by the company in the year 2002. The manufacturing base of solar water heating systems has since been improved substantially with the total number of 49 manufactures securing Bureau of Indian Standards (BIS) certification for their products, V-Guard Solar Water Heaters, a truly International quality product manufactured at the use the highly efficient Evacuated Tube Collector system enabling optimal utilization of solar energy. The PUF insulated stainless steel storage tank prevents heat loss. V-Guard Solar Water Heaters dramatically cut electricity bills, help conserve energy and are environment friendly. They are available in: 100 Lpd, 125 Lpd, 200 Lpd, 300 Lpd, 500 Lpd and 1000 Lpd for domestic use, and are

easy to install and last a life time. V-GUARD ETC solar water heaters are also manufactured for industrial applications that is for pool heating, large hotels, large hospitals, factories etc. and are available in 2000 Lpd,3000 Lpd,4000 Lpd and 5000 Lpd and also according to the requirements.



Electric Fans –

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V –GUARD INDUSTRIES LTD

V-GUARD fans are sleek and elegant, provide excellent air circulation. Double ball bearings ensure they keep whirling smoothly for years. The hub and blades have a powder coated finish and rust resistant. ‗HIGH ANGLE‘ Technology used in blade design ensures wider coverage. The fans are available in a range of colours to suit the interior décor. 

CW 1548



CW 2048 M



CW 3348



CW 3124 M



SF 4048 M



SF 6148 M



SF 7048 M

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V –GUARD INDUSTRIES LTD

Chapter 4 Department profile

DEPARTMENT PROFILE IMK ADOOR

Page 31

V –GUARD INDUSTRIES LTD  Customer service department  Electronic and new projects department  Electro mechanical department  Finance and accounts department  Human resource and administration department  Mechanical and electrical department  Marketing department  Supply chain management  Systems department

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V –GUARD INDUSTRIES LTD

ORGANISATION STRUCTURE

s ORGANIZATION CHART

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V –GUARD INDUSTRIES LTD

CUSTOMER SERVICE DEPARTMENT IMK ADOOR

Page 34

V –GUARD INDUSTRIES LTD This department deals with the relationship that the company maintains with the public . they mainly deal with providing after sales service to the customers .this helps them in maintaining their customer base and meeting their expectations. It has total of 15 employees in this department .the customer service of this company done through 275 service centres in 20 states.

Department chart

Head of Department

Manager

Zonal In charges

Branch in charger

Service in charge

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V –GUARD INDUSTRIES LTD

TYPES OF SERVICES PROVIDED a) Service at service spot V guard provides service through service centres located in different states customers who detect complaints can bring them to the nearest service centre to get the required service.

b) Service at dealers spot Serviced is provided through the dealers who deal with v guard products . In this case , the customers can approach the dealers with the defected

product and the dealers return the

products after the complaint has been rectified.

c) Service at customers spot Service is also provided at the spot where the customers are. In this case, technicians are sent to the customers after the complaint has been reported .According to their policy, complaints should be rectified within 24-48 hours of registering the complaint.

Levels of service i.

Customer satisfaction It is ensured that all the complaints are solved within 24 hours of receiving the complaint . employees are assigned to visit the customers spot for solving issues that might have occurred while using the product and even replacing the product if required. The service charges are collected as per the approved manual

ii.

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. After the service has been done , feedback from the customers is collected . this improves them in correcting their flaws in the service provided and to serve them better. Feedback regarding the quality of the products, after sales service etc is collected by visiting the dealers dealing with their products.

iii.

Customer delight

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V –GUARD INDUSTRIES LTD V guard ensures that they provide service as per the customers‘ demands and expectations

Channels for registering complaints Various channels have been provided to the customers for registering their complaints. They are:

 Through dealers: The customers are able to register their complaints with the company through the dealers dealing with their products.

 Directly contact to service centres Customers can report their complaints by contacting the service centre that is the closest to them.

 Contact through helpline The customers can contact through their toll free number 1800 3000 1800.

Customers

from any state can contact the branch office in the state through this number

 Register the complaints through mail The customer can also register their complaints through mail.

Service efficiency management The efficiency of the services provided are measured by doing the following Checking the number of complaints solved within 48 hours Service audit reports Feedback received from marketing department Feedback received from dealers Feedback received from end users.

ELECTRONICS AND NEW PRODUCT DEPARTMENT IMK ADOOR

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V –GUARD INDUSTRIES LTD

This department is in charge of coming up with the new and innovative ideas, conducting a study on feasibility analysis. A total of 138 employees belong to this department. This included quality controllers who are appointed at various factories. These quality controllers ensure that the processes are being followed as instructed by the head office. They ensure that the quality of the product is uniform with that of the products of the other factories. The quality controller approves the components that are being used in the outsourced factories. They provide such works to charitable institutions like Cherupushpa electronics, Sengo Paul‘s

systems

.They produce 1.5lakh stabilizer a month. V guard has about 62 factories in all over India.

Department chart Electronics And new product

Senior manager

p Production

Product

Product

Department

Developmen t

Engineering

CARC

MRP

New projects

Production: The production dept is in charge of looking into the production patterns and the processes that is to be followed in all the factories. They make sure that the patterns and products are uniform and according to the requirements

Product development: IMK ADOOR

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V –GUARD INDUSTRIES LTD 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 product 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 component is tested .It is checked whether it meets the expectations of the company. Components as minute as screws, bolts, etc used only after they have been tested at this centre. Suppliers who are interested in supplying their materials to the company are made to submit a sample with the centre. Major suppliers are Keltron and in cap.

New projects This department concentrates mainly on new and innovative ideas. They initiate new concepts and if found feasible, hands over it the production department foe making into reality. Home ups was such one product which was conceptualized couple of years back and is now one of their top selling product.

ELECTRO MECHANICAL DEPARTMENT This department coordinates the

activities of the outsourced units. It deals with design aspect of

each product. They take the feedback and after analysing it, makes the necessary corrections. It looks after the production of pumps and motors. The total division consist of 102.they are engaged in the agriculture, domestic and industrial segment. This department consist of 85 employees

Department chart

IMK ADOOR

Head of Department

Page 39

V –GUARD INDUSTRIES LTD

Deputy Manager

Senior

Assistant

Engineer

Manager

Executives

FINANCE DEPARTMENT Business as we know is concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as the financial statements. Financial statements refer to two statements which are prepared by a business concern at the end of the year. These are (i) income statement or trading and Profit and Loss Account which is prepared by a business concern in order to know the profit earned and loss sustained during a specified period; (ii) position statement or balance sheet which is prepared by a business concern on a particular date in order to know its financial position.

Department chart CFO IMK ADOOR

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V –GUARD INDUSTRIES LTD

Head accounts

Secretarial

Internal audit

Inventory management

Costing

State & Local tax

Indirect tax & vendor Mgt.

Legal & compliance

CURRENT RATIO Current ratio may be defined as the relationship between current assets and current liabilities. This ratio, also known as working capital ratio, is a measure of general liquidity and is most widely used to make the analysis of a short term financial position or liquidity of a firm. It is calculated by dividing the total of current assets by total of current liabilities. Current ratio=current assets/current liabilities

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V –GUARD INDUSTRIES LTD Current Ratio

Year

Current Assets 4,128.06

Current Liabilities 2,208.16

Current Ratio 1.86

2005-2006 2006-2007

7,581.56

3,754.83

2.01

2007-2008

14,878.02

6,514.06

2.28

2008-2009

9,505.26

4,633.57

2.05

2009-2010

19,040.34

8,244.38

2.30

Current Ratio

Current Ratio 2.5 2 1.5

current ratio 1 0.5 0 2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

As a convention the minimum of 2:1 is referred to as a rule of thumb or arbitrary standard of liquidity for a firm. A ratio equal to or near the rule of thumb is considered to be satisfactory. IMK ADOOR

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V –GUARD INDUSTRIES LTD Here, we see that expect for the financial year 2005-2006, The Company‘s current assets are double the current liabilities. The year shows an unsatisfactory current assets position. The ratio of current assets over current liabilities is found to be increasing over the period though there has been a downfall in the year 2008-2009 from 2.28:1 in 2007-2008 to 2.05:1. The current assets are 1.86, 2.01, 2.28, and 2.05, 2.30 times the current liabilities in the financial years 2005-2006, 2006-2007, 2007-2008, 2008-2009, and 2009-2010 respectively. Hence, it can be inferred that the general liquidity position the firm over a period of 5 years is satisfactory. (Note: current liabilities are taken as 1 and current assets are given comparison to it.)

NET PROFIT RATIO This ratio explains per rupee profit generated by sales.If the cost of sales is lower,then the net profit will be higher and when we divide it with the net sales,the result is the sales efficiency.if lower is the net profit per rupee of sales, lower will be the sales efficiency.the concerns must try for achieving for maximising the ROI.This ratio is very useful to the proprietors and prospective investors because it reveals the overall profitability of the concern. Net profit ratio establishes the relationship between net profit (after tax) and sales, and indicates the efficiency of the management in manufacturing, selling, administrative and other activities of the firm. This ratio is the overall measure of firm‘s profitability and is calculated as: Net profit ratio= net profit (after tax) / net sales×100

This ratio differs from the operating profit ratio in as much as it is calculated after deducting nonoperating expenses, such as loss on sale of fixed assets etc.,from operating profit and adding nonoperating income like interests or dividends on investments, profit on sale of investments or fixed assets, etc., to such profits. Higher the ratio, the better it is because it gives idea of improved efficiency of the concern.

Net Profit Ratio

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V –GUARD INDUSTRIES LTD Year

Net Profit

Net Sales

2005-2006

920.48

16,972.86

Net Ratio 5.42

2006-2007

1,823.93

22,227.48

8.20

2007-2008

3,742.31

27,811.00

13.45

2008-2009

1,734.65

31,677.67

5.47

2009-2010

2,547.26

45,408.91

5.60

Profit

Net Profit Ratio

Net Profit Ratio 16 14 12 10 8 6 4 2 0

Series 1

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010

NP ratio is used to measure the overall profitability and hence it is very useful to proprietors. The ratio is very useful as if the net profit is not sufficient, the firm shall not be able to achieve a satisfactory return on its investment. Here we find that net profit is sufficient enough for the company. Though in a low pace, the companies‘ net profit if found to be increasing over the years. In the year 2005-2006 the net profit was 5.42; 8.20 in 2006-2007; 13.45 in 2007-2008; 5.45 in 2008-2009; 5.60 in 2009-2010.This ratio also indicates the firm's capacity to face adverse economic conditions such as price competition, low demand, etc.

COMPARATIVE BALANCE SHEET IMK ADOOR

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V –GUARD INDUSTRIES LTD For The Year Ending March 2009 And 2010 Comparative Balance Sheet

2009

(Rupees in Lakhs)

2010

Increase/

Increase/

Decrease

Decrease

(Amounts)

(Percentage)

ASSETS Current Assets Cash in hand and at 409.11

741.42

+332.31

+81.22

bank

3586.00

9852.68

+6266.68

+174.75

Inventories

4875.33

7559.92

+2684.59

+55.06

Sundry debtors

634.82

886.32

+251.5

+39.61

9505.26

19040.34

+9535.08

+100.31

Land and building

3687.06

6001.86

+2314.8

+62.78

Plant and machinery

2276.48

3832.90

+1556.42

+68.36

Furniture’s and fixtures

50.73

159.10

+108.37

+213.62

Other fixed assets

1113.95

1235.43

+121.48

+10.90

Capital work in progress

2576.82

288.75

-2288.07

-88.794

Total fixed assets

9705.04

1158.52

+1813.48

+18.68

Investments

1136.04

457.69

-678.35

-59.71

TOTAL ASSETS

20346.34

31016.55

+10670.21

+52.44

Sundry creditors

1704.78

2992.38

+1287.6

+75.52

Other current liabilities

1831.75

3909.74

+2077.99

+113.44

Loans and advances

Total current assets

Fixed assets

LIABILITIES& CAPITAL

Current liabilities

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V –GUARD INDUSTRIES LTD Provisions

1097.04

1342.26

+245.22

+22.35

Total current liabilities

4633.57

8244.38

+3610.81

+77.92

Long term loans

3067.64

8623.93

+5556.29

7701.21

16868.31

+9167.1

Equity share capital

2984.75

2984.75

-

-

Reserves and surplus

9660.38

+1503.11

+15.55

+106070.21

+52.44

Total liabilities

TOTAL

20346

11163.49

s31016.55

+181.03

+119.03

HUMAN RESOURCE MANAGEMENT

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V –GUARD INDUSTRIES LTD DEPARTMENT CHART Director

Senior vice president

Deputy GM

Senior officer

Officer

Senior executive

Executive

HR policy The basic principles of V-Guard human resource policies include:  Recruitment based solely on merit by following well-defined and systematic selection procedures without discrimination.  Sustain motivated and quality work force through appropriate and fair performance evaluation, reward and recognition systems.  Identify training needs within the organization and design and implement those need based training programmes resulting in continuous up gradation of knowledge, skill and attitudes of the employees.  Maintain a quality human resource management system plan, design, and train, equip and motivate the dept staff to meet this standard of expectation.

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V –GUARD INDUSTRIES LTD The HR practices Most of the HR practices of V-Guard industries were a result of the vision of its founder and the culture that they have been created over the years. The founder advocated simplicity and maintained the culture of a small company and the employees were encouraged to share their learning experiences too.

Recruitment V-Guard's greatest asset is its employees. It is committed to attracting, retaining, and developing the highest quality and most dedicated work force possible in today's market. It strives to hire and promote people on the basis of their qualifications, performance, and abilities, and is determined to provide a work environment free of any form of discrimination both direct and indirect, including sexual harassments. While recruiting new employees V-Guard takes adequate care to identify the right candidates guard focus on recruiting candidates who display a high degree of learn ability, i.e. candidates 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, term work, leadership potential, communication and innovative skills, along with a practical and structured to problem solving.

Training V-Guard human resource department believes that quality is the hallmark of any successful venture. Quality training and development of human resource is realized through Identifying training needs within the organization and designing and implementing those need based training programs to bring about continuous up gradation of knowledge, skill and employee attitudes.

The following brief highlights V-Guard's training methodology for the comprehensive development of its employees

Training plan IMK ADOOR

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V –GUARD INDUSTRIES LTD Companies success in today's free market economy, only because their employees perform to their fullest potential .alive to this home trust, V-Guard draws up on annual training calendar highlighting the training activities for the year It also includes detailed discussions with the faculty to decide on the contest of the training programs guard's training plan includes technical/functional programs (mechanical, electrical, finance related and behavioural programs etc) ,covering a wide cross-selection of employees, as follows: A week long induction program for fresher‘s: 

Development of top performer through leadership development programs aimed at bringing up future leaders



Development of managerial staff through intensive management development programs tailor made for them providing exposure to holistic understanding of the business, strategic planning, customer relationship, enhancing share holder value, and financial management.



Sustained effort in training has led to creation of highly skilled and motivational employees ready to take on higher roles and responsibilities in the company.

Performance appraisal The first step towards carrying out performance appraisal at V-Guard is the evaluation personal skills for the tasks assigned to an employee during

of

the period of appraisal .To evaluate the

performance ,different criteria like timeliness ,quality of work carried out by the employee, customer satisfaction .peer satisfaction and business potential is considered The personal skill of the employees are also evaluated based on their learning and analytical ability ,communication skills, decision making, planning and organizing skills. Each of these criteria is measured on a scale and then evaluated. A performance appraisal system is a strong tool in the development of human resources in the organisation. It is considered as a mutual feedback to the management and thereby help to decide the carrier growth, training needs and other human resources development, interventions required for each of them thereby aiding their self development. It is vitally important that every individual has a clear understanding of his or her work, objectives, and responsibilities, because performance will measure against these.

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V –GUARD INDUSTRIES LTD • Culture At V-guard ,we have built a culture in tandem with the vision and values of the organization that makes v —guard ,a great place to perform where members take pride in being a part of the V-Guard family, are intellectually and emotionally bound with the organization, feel passionately about their goals and are committed towards the organization's vision and values .complete ownership of the vision and values ensures alignment of member's personal vision with organization's vision, thereby achieving focus in all the endeavours.

Work culture emphasizes 

Freedom to experiment



Continuous learning and training Transparency and openness



Quality in all aspects of work



Reward based on performance and potential

Company Policy 

All selected candidates are initially placed on probation for a period of 6 months



On completion of probation period and upon recommendation by the head of the department, the employee shall be absorbed and confirmed onto the rolls



Management cadre employees are directly appointed into the skills

Benefits and Perquisites The benefits given to the employees are of two types, statutory and non-statutory benefits. Statutory benefits •

Provident fund

•

Employee State Insurance

•

Employees Deposit Linked Insurance

•

Service Gratuity

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V –GUARD INDUSTRIES LTD • •

Labour Welfare Fund Bonus

Non-Statutory Benefits •

Reimbursement of travelling expenses

•

Leave travel allowance

•

Medical reimbursement

•

Personal accident insurance and medi claim insurance

•

Performance linked bonus

•

Reimbursement of telephone/mobile rent

•

Incentives to personnel

•

Group saving linked performance

•

Benevolent fund Expenses for purchase of suitcase

•

Concessional loan

•

Interest free vehicle loans

•

Higher education loans for employees\

•

Education allowance to employees' children

•

V-Guard award for excellence

•

Veegaland /Wonder Ia passes

•

Discount offer for V-Guard products

•

Suggestion awards

•

Reimbursement of credit card renewal fee

•

Best Article Award (V and We)

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V –GUARD INDUSTRIES LTD •

Contribution for employee‘s marriage

•

Performance linked incentive scheme

Types of Leave 

Casual Leave



Sick Leave



Annual Leave



Marriage leave



Transfer leave



Maternity leave

Salary components • Basic pay • Dearness allowance • House rent allowance • Conveyance allowance . Compensatory allowance • Special allowance (10% of basic pay and dearness allowance) • Additional compensatory allowance (based on place of posting) • Fixed allowance • Stores allowance

HR initiatives implemented in 2010 IMK ADOOR

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V –GUARD INDUSTRIES LTD  HR induction and orientation When new candidates are hired, they are invited for a one week induction and orientation programme to corporate office and where the candidate is acquainted which each and every aspect of the organization. A through integration with hr &business processes takes place. As part of the induction programme they also undergo training on motivation, visit to our amusement park and also a visit to our cable factory located in Coimbatore. All the new joinees have an open interactive session with the top management including our managing director. A special induction manual was designed for new joinees together with an induction kit which provide all the necessary details on the company, allowances and the facilities they are eligible for.

 Sports & games activities V-guard believes in "healthy employees bring better productivity". As part of our fitness movement we have provided adequate infrastructure to conduct various kind of indoor as well as outdoor sports. We have separate sports facility, which range from table tennis to badminton, gymnasium and tie ups with college grounds to conduct cricket and football matches. company organizes inter-unit sports competition by making a sports calendar on yearly basis to keep on promoting the spirit of sportsmanship across our branches the sports activities will come to an end with the annual sports day scheduled in the month of January 2010 where individual prizes would be awarded to winners and overall trophy to the department scoring the maximum points .all the events were coordinated by the recreation club formed for this purpose.

 Leadership development program 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. Hence, our company identifies future leaders by identifying members who think holistically about the organization, by considering the big picture and act for the greater good of the enterprise. These members are made to undergo coaching sessions for meeting their developmental requirements enabling to become the real leaders to take the organization to greater echelons!

 Executive development program All managerial cadre employees are nominated for executive development programs conducting internally. Trainers are experts in the field and duration of the program was 6 months (2 days in a month) .training methodology used were case studies, in basket techniques, business games etc.

 Social welfare fund IMK ADOOR

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V –GUARD INDUSTRIES LTD As part of the CSR initiative, we have started a welfare fund to help the ailing cancer patients in general hospital, Cochin. Every month employees make voluntary contribution to this fund from the salary. Once the amount collected, the medicines are purchased based upon the requirements of the cancer ward and it's handed over to the doctor directly by the employees who visit the general hospital every month by taking turns. This ensures that the medicine reaches the right person. We have contributed Rs 300,000 worth medicines this financial year.

 Departmental tours As part of the goal setting process for the next financial year departmental tours were organized which included term building and brain storming sessions. These tips helped the employees to think out of tile box and give new suggestions in their area.

 Employee counselling Counselling programs were organized for all employees with the help of experienced counsellors from the respective field.

Unique HR practices As we all know requirements of training and experienced professional with the desired mindset is the need of the hour for any organization to survive and grow in this competitive environment .while there is no dearth of professionals in Indian industry and people are available in dime a dozen, but what is most important and difficult to get is the right mindset. This can be easily substantiated by the number of applications for every job listed on the famous jobsites needless to say that selection of the best candidate with the desired mindset out of such large no of applicants is a very tedious take. With the business goal being very high the pressure on HR to reduce the time lag for filling a position has substantially reduced. Normally a position, which was regd. a month to be filled up, has now got to be filled up in 10- 15 days time .this has made the job still more challenging. To cope with the growing expectations of business and in order to give the organization a competitive edge to the business we in v-guard have streamlined the whole system by integrating the HR fundamentals with information technology and have adopted some practices unique to v-guard.

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V –GUARD INDUSTRIES LTD  Niyukta samaaya This is our employer engagement programme which we have started in this financial year. The session is conducted, by inviting employees department wise on a rotational basis every Saturday in the afternoon, for a period of one hour. Two representatives from the HR department and a person representing the top management would present in all the meetings. The program starts with a small introduction followed by an open session where employees will be free to give their suggestions and speak out their problems the open session is followed by games to promote team building and employees are encouraged to exhibit their skills many fruitful suggestions were received from the employee's sides which were implemented successfully.

 Online recruitment management system Under this planed system prospective candidates visit our website and can directly register their CV for any position listed on the site. Similarly all consultants are also, required to post their CV through this site. As a result duplication of CV is immediately identified and not accepted the CV then comes data bank and for short listing /screening both the functional, users and HR dept. has got the rights. Once a candidate is rejected, immediately information goes to the consultant or to the candidate. In case this is selected for interview then the information goes for finalization of interview at specified date and time. This speeds up the whole process as it does the initial screening of the vital parameters in terms of a g e, qualification, experience, etc.

Meetings with workers Creative problems solving when it comes to employees is also v-guards forte. The company has regular line meeting at the manufacturing lines in the factory with the workers to discuss and solve their problems then and there. Morning meetings are also a norm at v-guard were the whole management together with the VP's gets together to discuss the plans for the weeks.

MARKETING DEPARTMENT IMK ADOOR

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V –GUARD INDUSTRIES LTD The marketing department is responsible for sales and promotions of products among the people so as to have a ready market for them. A number of promotional measures are in action to maintain an upward trend in sales of the company's products. Sales turnover of 5-6% is earmarked for advertising the products to relevant segments. Both print and TV media are used for brand communication. Local and English dailies and weeklies are used for advertisements. Stabilizer, pump set and solar and electric 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 company believes that its dealers and distributors are the best brand ambassadors. Therefore, a number of dealer incentive schemes are in force to keep the dealers' momentum upward. Dealer's meet is held in every two years with the main intention of imparting relevant sales skills and motivation and rejuvenating the social bond with them. The company's distributors are exclusive stockists for its products and as such the term of appointment stipulates that only V Guard's goods would be stocked and supplied by the distributor.

V-Guard also gives priority to the service sector. Also in far off areas like Idukki and Wayanad, franchisees are present so as to reach out to their customers.

Department chart VICE PRESIDENT

KERALA HEAD

Product in charges of various products

There are 6 executives under each product in-charge. In case of distribution centers, a manager, sales persons, van drivers and unloading boys are present. Training to all these persons is given on the basis of the products they are handling. IMK ADOOR

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V –GUARD INDUSTRIES LTD

Types of Distribution activities i) Distributor oriented sale

In this, the products are available only through distributors. V-Guard has 36 distributors and 3248 dealers all over the country. The company provides their products to the retailers through the wholesalers. Stabilizers and cables are mainly distributed through this method.

ii) Direct dealer operations

In this, the products are made available to the consumers through authorized dealers. Products like fans and UPS are mainly distributed this way iii)

Direct end user

In this, the products are distributed directly to the customers. There would be any intermediaries between the company and the customers. Products like online UPS, LT power cables and project coils are given directly to the customers.

Credit Policies V-Guard extends credit policies when needed. Such services are mostly given to the old dealers who have been associated with the company for a long time. They allow such dealers to purchase products on credit. They also accept post dated cheques. Marketing strategies adopted

i.

Company--> Distributors –-> Retailers —-> Customers’

In this strategy, the products are made available to the customers through distributors and retailers. The company provides the products to the distributors who provide them to the retailers at the price set by the company. Retailers provide the products to the customers as per their demand. IMK ADOOR

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V –GUARD INDUSTRIES LTD ii.

Company—-> Direct Marketing Association—-> Customers

In this, the products are marketed through direct marketing associations. Products like solar water heaters and digital UPS's are marketed this way. iii.

Company--> Direct Dealers--> Customers

In this, the company markets their products among their customers only through authorized dealers all over the country.

Promotions 

Every year a budget is set aside solely for advertising expenses. V-Guard gives a lot of importance in making their presence felt among the public and also making them aware of the various products that they have to offer. Some of the was in which they promote their products are:

•

Electronic and print media

•

Dealer meets, Plumber meets and Electricians meets. This is 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



Exhibitions in campuses 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 eg. Towels gifted with water heaters

•

Wall paintings e.g. Sabarimala routes

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Research and Development The research and development team in the marketing department is responsible for conducting surveys about products. This survey is mainly done among the dealers to get their feedback about the demand patterns of the customers and also ideas for products which have a potential in the market. They then discuss with the concerned head of departments, management and technicians for their opinions. After this they move onto the product enhancement stage.

Product strategy V-Guard has different demand patterns for their products during the year. During the vacation time i.e. during April and May, the demand for air conditioners is high and so is the demand for stabilizers. From the month of November till May, the demand for pumps is high than during the other months of the year. In the months of June, July, November and December, the demand for water heaters is high. During the summer season the demand for freezers and coolers is high. During festival seasons like Onam and Christmas, demand for televisions is high.

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V –GUARD INDUSTRIES LTD Department chart HOD

Chief Officer

Senior manager

Chief Officer Deputy engineer

Deputy

Assistant

Assistant engineer

Engineers

Engineers

Engineer

This department consist of 50 employees which looks after the corporate planning and also by controlling its activities.

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V –GUARD INDUSTRIES LTD The system is responsible for maintaining the data in the organization. The data centre in v guard is centralized and severs are maintained at the head office. The data recovery centre is maintained at Coimbatore Semantic and MacAfee are the antivirus software used. . The department consist of 16 employees

Department chart

GM

Assistant manager

Senior Manager

Officers

Executives

Officers

Executives

. Employees working for companies like HCL and secure solutions are present in the organization .reports are collected from these companies on daily and monthly basis. Software development team present in the company handles the MIS activities. Updating format requirement etc are done by this team

SUPPLY CHAIN MANAGEMENT

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V –GUARD INDUSTRIES LTD SCM can be viewed as a pipeline for the efficient and effective flow of the products, material, services, and information and financial from the suppliers through the various intermediate organisation or companies to the customer. The extended enterprise perspective of SCM represents a logical extension of the purchase and business logistics concepts. It consists of 10 employees.

SCM chart IMK ADOOR

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V –GUARD INDUSTRIES LTD SCM

PRODUCT DIVISION

INVENTORY &LOGISTICS

PURCHASE

SUPPLY STORE

MATERIAL

TRANSPORTATION

SUPPLY DEVELOPMENT

SUPPLIER FIXES PRICE

SUPPLIER SELECTION

PO

FOLLOW UP

OWN GODOWN

RENTED GODOWN

DISTRIBUTI ON

DEALER

CUSTOMER

TRANSPORTATION

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V –GUARD INDUSTRIES LTD They believe in the amalgamation of corporate management, sustainable development and global responsibility in working toward a better society and thereby a better world. They are committed to greening our environment, supporting the less fortunate and nurturing the downtrodden.

ROTARY-BINANI ZINC CSR AWARD V Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private Sector) by the Rotary Club of Cochin Metropolis, in association with NIPM Kerala Chapter and ICAI, Ernakulum Branch for Best Corporate Social Responsibility Initiative by a company in the state of Kerala

Our Joint Managing Director Dr. George receiving the award

The Thomas Chittilapilly Trust The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, in memory of his late father, C.O. Thomas. It is an extension of the philanthropic and responsible values espoused at V-Guard. It is dedicated to extending its reach to areas of health, education and care. The trust provides health insurance cover for 1314 families from financially backward classes, 922 families at Tholur Panchayat, Kerala and 105 families in Ramanagaram Taluk in Bangalore, Karnataka. IMK ADOOR

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It also conducts free health camps at villages and backward areas where the reach of proper health care is absent. It sponsors the education of 1587 school children from economically backward sections in Thrissur and Ernakulum Districts in Kerala and Ramanagaram Taluk, Bangalore. The trust has also made substantial contributions to NGO‘s working for various social welfare causes like Udhavumkarangal and the SOS village. It has also donated generously to many national level causes and relief funds like the Prime Minister's Relief Fund, Kargil war victims, relief for the earthquake victims of Latur and Gujarat, victims of the Orissa cyclone and the Tsunami Relief Fund of the Prime Minister as well as the Chief Minister.

Shantimandiram An old age home for women, providing shelter and care for those who are unable to care of themselves in Parappur Village, Trissur, Kerala. It is managed by the Sisters of CMC Nirmala Province in whose able hands the inmates receive love and care irrespective of caste and community. The facility accommodates 60 inmates at a time and is recognised by the 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 tranquility 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, and 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.

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V –GUARD INDUSTRIES LTD 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 SHG‘s (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.

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V –GUARD INDUSTRIES LTD

Chapter 5 ENVIRONMENT ANALYSIS

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V –GUARD INDUSTRIES LTD SWOT ANALYSIS Overall, the industry‘s future remains robust, and interested applicants will benefit from a holistic learning experience; Many of the research, sales, marketing and advertising related roles will necessitate a good on-the-job learning of target audiences, who may well be a totally new segment, based in neverbefore visited Class II and III towns. In addition, those with technical backgrounds will be able to leverage their knowledge and experience to constantly develop and innovate the product variants. With more MNCs growing their Indian businesses, there is great potential to also learn best-in-class systems and management skills. SWOT analysis of the consumer durable industry Strength 

Presence of established distribution network in both urban and rural areas



Presence of well known brands



In recent years organized sector has increased its share in the market wise than the unorganized sector.

Weakness 

Demand is seasonal and is high during festive season



Demand of some of the products is dependent on good monsoons



Poor government spending on infrastructure



Low purchasing power of consumers

Opportunities 

In India the penetration level of white goods is lower as compared to other developing countries



Unexploited rural market



Rapid urbanization



Increase in income levels i.e., increase in purchasing power of consumers



Easy availability of finance

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Threat 

High import duty on raw material imposed



Chief imports from Singapore, China and other Asian countries

The Indian consumer remains one of the most upbeat globally. The Nielsen Global Consumer Confidence study, conducted by Nielsen, a market research company revealed that Indians are "the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months." In fact, it is widely believed that the Indian market will fuel the growth of multinational companies in the coming years. While most leading companies are cutting costs in the US and Europe, they see India as a strategic market, which can fuel their growth.

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CHAPTER 6 PORTER’S FIVE FORCES MODEL ANALYSIS

Porter's five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very

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V –GUARD INDUSTRIES LTD unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven down to zero. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally, requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.

Porter's five forces include, three forces from 'horizontal' competition:

Threat of substitute products,

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V –GUARD INDUSTRIES LTD 

Threat of established rivals



Threat of new entrants



Bargaining power of suppliers



Bargaining power of customers

THE THREAT OF THE ENTRY OF NEW COMPETITORS Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards zero (perfect competition). 

The existence of barriers to entry (patents, rights, etc.) The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily.



Economies of product differences



Brand equity



Switching costs or sunk costs



Capital requirements



Access to distribution



Customer loyalty to established brands



Absolute cost advantages



Learning curve advantages



Expected retaliation by incumbents



Government policies



Industry profitability; the more profitable the industry the more attractive it will be to new competitors

THE INTENSITY OF COMPETITIVE RIVALRY For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. 

Sustainable competitive advantage through innovation



Competition between online and offline companies;



Level of advertising expense



Powerful competitive strategy

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V –GUARD INDUSTRIES LTD 

The visibility of proprietary items on the Web

Used by a company which can intensify competitive pressures on their rivals? How will competition react to a certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival. THE THREAT OF SUBSTITUTE PRODUCTS OR SERVICES The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: 

Buyer propensity to substitute



Relative price performance of substitute



Buyer switching costs



Perceived level of product differentiation



Number of substitute products available in the market



Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product.



Substandard product



Quality depreciation

(THE BARGAINING POWER OF CUSTOMERS BUYERS) The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. 

Buyer concentration to firm concentration ratio



Degree of dependency upon existing channels of distribution



Bargaining leverage, particularly in industries with high fixed costs



Buyer volume

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V –GUARD INDUSTRIES LTD 

Buyer switching costs relative to firm switching costs



Buyer information availability



Ability to backward integrate



Availability of existing substitute products



Buyer price sensitivity



Differential advantage (uniqueness) of industry products



RFM Analysis

THE BARGAINING POWER OF SUPPLIERS The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. 

Supplier switching costs relative to firm switching costs



Degree of differentiation of inputs



Impact of inputs on cost or differentiation



Presence of substitute inputs



Supplier concentration to firm concentration ratio



Employee solidarity (e.g. labour unions)



Supplier competition - ability to forward vertically integrate and cut out the buyer

COMPETITION ANALYSIS IN V GUARD INDUSTRIES+ Porter‘s five force framework helps to make a qualitative evaluation of a firm‘s strategic position. By the conducting this analysis we should be able to understand that the final external influence upon the organization is the competitive environment. We should also be able to understand that the competitive strategy of an organization and the need to secure particular competitive advantage over competitors are important. We will find that an appraisal of the competitive environment is vital before plans laid down. Let us see how the Porter‘s five forces are applicable in v guard,

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COMPETITORS are:    

Servomax Logistics Everon Kidson

COMPETITION ANALYSIS Much of the market in which v guard operates in its unorganised and fragmented of each of the products from other manufactures in domestic or divisions of large multinational corporations as well as competitors .They compete with their manufacturers on the basis of product range, product quality, product price after sales service including factories based on repetition, regional needs and customer convenience. Their completion varies for each of the products and regions. They compete different players in different products in different regions. Companies‘ major competitors for the stabilizers are vigil, premier, care, Shalimar, Everest, Safeguard etc. Major competitors for cables are Finolex , Polycab, anger etc. competitors for pumps are plays such as Racold, Bajaj, venus ,Kirloskar .Competitors for solar water heaters Tata, BT. They also face competition from Crompton greaves, Hawells, Polar, and Khaitan for electronic fans and APC for the products ups. Our competition levels vary from each of the 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 or reliable appliances and have strong customer focus in the form of providing after sales service will be increasingly differentiated from other in the field.

THREATS OF SUBSTITUTES 

In built stabilizer are innovated.



So no need for buying separate stabilizers



Current trend is the use of natural product which is more healthy.



Zone valve can be used instead of pumps.

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BARGAINING POWER OF SUPPLIERS 

V guard has fixed certain standards in terms of price and quality for their suppliers.



V guard is getting copper wires and inputs from Karnataka, Andrapradesh, and Maharashtra at low price.

Hence the bargaining power of suppliers is high.

BARGAINING POWER OF CUSTOMERS 

Concentration of buyers are more hence the company‘s bargaining power is high.



Differentiated products are less as stabilizer can only be used for tvs..



V guard produces high quality products which can overcome the customers bargaining power.



Switching is complicated to the customers because v guard‘s brand name and trust.

Hence the

power of buyers are low in v guard.

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Chapter 7 FINDINGS CONCLUSION AND SUGGESTION

FINDINGS 

The company made public issue in the year 2008



Several energy conservation measures are undertaken by the company

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V –GUARD INDUSTRIES LTD 

Continuous efforts are made by the R & D department for reducing the manufacturing costs.



As a result of intensive R & D, the size of the products was reduced conveniently.



Technology, which aids production, was imported in the year 2007 and 2009.



Technology imported in 2007 was not fully absorbed.



39 % of the shares are held by the promoters of the company.



The competition from the unorganized sector is severe



Improper coordination among the superiors and subordinates during certain situation



Increase marketing strategies for the promotion of air conditioners

CONCLUSION This organization study report is the result of my work and credible information I have gathered during my period of association with the organization. I hope that the reality shock which I expect has stimulated me to gather information to face the actual real time situations in the industry in the future which acts as an IMK ADOOR

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V –GUARD INDUSTRIES LTD impetus for future career prospectus. The study has also helped in getting an insight on the functions of the departments in an organization practically.

The details obtained from the company for organization study are very useful for a professional career and decision making. And the study was a great experience to know all about the working of an organization.

SUGGESTIONS 1) As the production is fast increasing, the energy conservation measures should be further improved.

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V –GUARD INDUSTRIES LTD 2) New and improved products, which suit the needs of the consumers to the best, should be developed. 3) R & D has been concentrating more on reducing the cost of production. It should also concentrate on improving the quality of the company‘s products. 4) Technology imported should wholly suit the company‘s production needs so that full absorption of the same is facilitated in future. 5) The company should increase its foreign exchange earnings. 6) At present, the FII‘s are only less than a percent of the total shareholders. The company should popularize itself and the products to attract more FII‘s. 7) The rural markets have not been covered yet. The company should take necessary steps for the same. 8) The company‘s product should be made more competitive than the unorganized sector to meet with the competition. 9) The company should take necessary steps to control the effect of continuous price fluctuation of raw materials. 10) Stock of raw materials, especially copper, should be adequately maintained to avoid price fluctuations.

BIBLIOGRAPHY IMK ADOOR

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