Chapter-1 Industry Profile
Chapter-1 Industry Profile
INDUSTRY PROFILE
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important and so important are the conductors. The Conductors are those
which allow current to pass through them. These are the points which regulate
the flow of electricity. These are also called electrical equipments and
accessories or electrical products.
ORIGIN OF ELECTRICAL INDUSTRY:
The starting point of electrical industries is the great invention of electrical
bulb in 1876 by Thomas Alva Edison. This invention made the world to know
the power of electricity, and these helped for the invention of many other
electrical items like fans, lightings, wires and cables, meters and so on.
Electrical industry is one of the most developed industry and many new
inventions are yet in the induction stage. General Electrical (GE) is the largest
manufacturer of electrical items and Anchor is the largest manufacturer of
switches in the world.
1.2 ELECTRICAL INDUSTRY IN INDIA:
First electric industry in India was KIRLOSKAR ELECTRIC COMPANY
PVT.LTD. Electricity is one of the most necessary items of living. Today we
cannot imagine anything without electricity. It is required to perform daytoday activities. Electricity is useful in lighting, fan, computers, train etc. It is
important and so important are the conductors. The Conductors are those
which allow current to pass through them. These are the points which regulate
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the flow of electricity. These are also called electrical equipments and
accessories or electrical products. Electrical industry has the history of more
than 50 years in India. In 1950s the distribution of electricity was confined to
a limited area. Only big cities have the power plants and the level of electrical
markets. In 1956 seeing big opportunities in this market, Finolex group started
the wire coil production and gained market by introducing multi stand cables
for house wiring. At the beginning only single copper wire was used for
transmission of current which was changed in modern stage to leaded copper
wire.
Now there are different varieties of wire coils and other materials available
relating to electricity and more than 300 firms and companies producing wire
coils with different names.
When electricity was first introduced in India, the black coloured tumbler
switch with porcelain base dominated the Indian premises. This was during
1950s and 1960s when electricity was reaching different parts of the country.
There existed a high degree of dissatisfaction about these switches, as they
were hard to operate and lacked in aesthetics. These tumbler switches were
installed on wooden surface mounting box and wiring was done with the help
of batten strips (Patti).It also offers you the flexibility of adding or removing
functions to adapt to your changing needs. For example, you could easily
replace a 6A with a 16A switch or replace one two modular socket with two
single modular switches.
The latest trend in modular switches is that of a smooth scoreless appearance.
Some companies are even offering a complete range of wiring solutions that
include switches; trucking and VDI (Voice Data Image) structured cabling
system. Gradually the Indian switch market is upgrading to modular switches.
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In additions to switches and wire coils, there are a number of items which
helps in the smooth running and efficient usage of electricity and power. The
big names in Indian market if electrical products manufacturer are:Finolex - Specialist in wire and cables.
Havels - energy meters.
MDS - Miniature circuit breakers
Philips - Manufacturer of lighting and luminary items.
Anchor - manufacturer in switches and accessories.
These are serving Indian Electrical Industry for more than four decades and
their markets are enlarged to foreign countries also.
GROWTH OF INDUSTRY IN INDIA:
Indian electrical industry has registered about 30% growth in the year 2011
from Jan mar. It has registered a growth of 15 percent in 2010-2011 (5.73
percent in 2009-2010). As compared to the same period for the year 2005-06.
The well conceived APDRP programme and passing of Electricity Act 2003
have provided a ray of hope to the industry. Almost all sectors of electrical
industry are indicating growth. Product like meter shows technology shift, as
there is more demand for static meter than conventional electromagnetic meter.
The general buoyancy in the Indian Economy would then create a demand for
electrical products through growth of general industrial and economic
development. From the experiences of the past few years, it can be confidently
said that the Indian industry has faced the critical challenges well and survived
in the most difficult times. In current favourable market scenario today, the
electrical industry can certainly look forward for growth.
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They does not end on the sale of the product but continues till the end of
guarantee period.
1.5 GOVERNMENT POLICY TOWARDS ELECTRICAL INDUSTRY :
The sentiment of the industry is generally measured in terms of research
intensity, export & import capacity, expertise development, infrastructure
enhancement, and etc. The entire structure of the industry is determined by
the government policies & provisions which should be conducive & optimal
Indian government has envisioned augmentation in the capacity of power
generation would be 86,500 MW in 12th plan period. A blueprint for
investment is drafted for the distribution & transmission segments with an
eye to domestic electricity plan and the Integrated Energy Policy.
Enforcement of Electricity Act 2003, National Electricity Policy-2005 and
proposal of schemes like the APDRP (Accelerated Power Development and
Reform Program) & RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana)
are
Meant for reducing loss that takes place in transmission and distribution
annually owing to traditional & degraded lines, overloading of the 11 KV
systems,
Distribution transformers and low tension lines and understanding the
intricacy of the various factors and its impact on the demand for electrical
equipment. IEEMA (Indian Electrical and Electronics Manufacturers
Association) opted private company (PWC) Price water house Coopers for
evaluating the power sector development program and its impact on electrical
device & equipment industry.
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capabilities. The industry has seen a growth of 20% and should continue at
the same level for the next few years.
1.7 MAJOR COMPANIES WITH THE MARKET SHARES:
Finolex
Honey well
Havel
Phillips
Crompton
Anchor
share of around 21%. Furthermore, it occupies the largest market share with
about 29% in the global market.
The worlds electrical & electronics market size was $1038.8 billion in 2006,
an increase in 10.6% from last year. The industrial electronics industry size
was $651.3 billion, contributing around 62.7% of the total with regard to
electronics parts and components sector, the total market share was $282.7
billion i.e. 27.2% while home electronics was 104.7 billion.
Sony Corporation, Apple Inc., Sharp Corporation, Toshiba Corporation,
Matsushita Electric Industrial co. Ltd., LG Electronics Inc., Royal Philips
Electronics N.V, SANYO Electro co., Ltd. And Samsung Electronics co.
Limited are the key players of electrical and electronic products in the world
market.
1.8 SWOT ANALYSIS OF ELECTRICAL INDUSTRY:
Strengths:
A large area is of farmers who require specific electrical product
For irrigation and agriculture
Continuous growth development and innovation of technology
Core sector electrical industry enjoys monopoly for its market demand,
since there exists no other substitute for electricity.
Seasons effect is not same all over India.
compensated by other product. For example, fans and coolers are used
summer while heaters are used in winter
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CHAPTER-2
COMPANY PROFILE
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Corporate Philosophy:
Vimal switches and accessories are known for its functionality, elegance and
durability. Customer care is their core philosophy. Dealer satisfaction is also
given equal importance.
2.3 MISSION:
Increase the distributor base by at least 2 new distributors in the current
financial year.
Reduction in customer complaints by 30% from previous year.
To increase turn over by 40% from previous year.
Supplier performance must be at least 12 marks in the current financial year.
2.4 COMPANY OBJECTIVES & POLICY:
Companys motto is to produce safe & secure electrical accessories for
industrial & domestic purposes. We are also committed to enhance the
customer satisfaction by continually improving effectiveness of the Quality
Management System and its processes. Importance requirements and meeting
customer, statutory and regulatory requirements is communicated within the
organisation.
2.5 MARKETING MIX OF THE COMPANY:
PRODUCT:
Products produced by Vimal Marketing Company
1.
Switches
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Conventional Switches
Mini modular type Switches
Image plate series
Modular Switches
2. Wires and cables
House wiring
Service Wire
Flexible multi core for domestic appliances
3. Lighting and luminaries
4. MCBs (Miniature Circuit Breakers) and distribution boxes
5. Musical door chimes and buzzers
6. Transformers and extension cords
7. Fuses and main switches
PRICING STRATEGY:
ECONOMIST DEFINES "Price as the exchange value of a product or services
always expressed in money." To the buyers price is a package of expectation
and satisfaction.
Price is not only the objective criteria for the consumers for comparing
alternative items and making the final choice.
Vimal Marketing Company adopts competitive pricing strategy i.e. uses
competitors retail (or wholesale) prices as a benchmark for fixing their
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45%
Personal selling
3%
Sales promotion
30%
Publicity
22%
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A distribution channel consists of the set of people and firms involved in the
transfer title; product moves from producer to ultimate consumer or business
use.
CHANNELS & MODE
Company has appointed distributors in south Kerala, Andhra Pradesh,
Orissa, Madhya Pradesh, and Tamil Nadu.
CHANNELS OF DISTRIBUTION:
TRADE:
Small (retail) Dealers.
Company Depot.
Consignment sales.
NON-TRADE DIRECT CONSUMERS:
Institutions.
Builders.
Government.
MODES FOR DELIVERY:
Delivery from the Plant at Delhi.
Delivery from the depot.
TYPES OF DISTRIBUTION CHANNELS:
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1.
2.
3.
CE (European Standards)
4.
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MANAGING DIRECTOR
DIRECTOR
FINANCE
DEPARTMENT
FINANCE
MANAGER
PURCHASE
DEPARTMENT
PRODUCTON
DEPARTMENT
PURCHASE
MANAGER
PRODUCTION
MANAGER
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HUMAN
RESOURCE
DEPARTMENT
HUMAN
RESOURCE
MANAGER
ADMINISTRATIV
E DEPARTMENT
ADMINISTRATIVE
MANAGER
CHAPTER 3
RESEARCH
METHODOLOGY
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CHAPTER -4
RECRUITMENT AND
SELECTION PROCESS IN
VIMAL MARKETING
COMPANY
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4.1 RECRUITMENT:
Recruitment is hiring of employees .Recruitment has been regarded as the
most important function of the HR department , because unless the right type
of people are hired, even the best plans, organization chart and control system
would not do much good.
Recruitment
refers
to the process of
within
or
finding and
outside
of
hiring the
an organization)
bestfor
a job opening, in a timely and cost effective manner. The recruitment process
includes analyzing the requirements of a job, attracting employees to that
job, screening and selecting applicants, hiring, and integrating the new
employee to the organization.
Edwin B Flippo defines recruitment as the process of searching for
prospective employees and stimulating them to apply for the jobs in the
organization.
Methods of Recruitment in Vimal marketing company:
In Vimal marketing company, both internal and external sources of
recruitment are used.
Internal sources used:
The employee referrals are given importance in recruitment i.e.
friends and relatives of the employees working in the company are used as
internal sources of recruitment. Besides this, the company also considers
retired employees of the organization for recruitment.
External sources used:
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CHAPTER 5
DATA ANALYSIS
&
INTERPRETATION
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CHAPTER 6
FINDINGS
&
SUGGESTIONS
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FINDINGS
1. SOURCES OF RECRUITMENT:
It is known from finance, administrative and purchase managers that
organization uses only internal source of recruitment because these managers
feel that the internal sources are apt while production manager opts only
external sources of recruitment. The HR manager uses both internal and
external source of recruitment because he opts both the sources as per the
situation.
2. WHETHER INTERNAL SOURCE OF RECRUITMENT IS
ECONOMICAL:
It is found that most of the managers find internal source of
recruitment economical because it is carried out within the organization and
do not incur much expenses while the purchase manager does not find it
economical.
3. RESTRICTED CHOICE IN INTERNAL SOURCE OF
RECRUITMENT :
It is found that administrative and production manager feel that no
wide range of choice in internal source of recruitment while all the other
managers feel that there is enough choice in internal source of recruitment.
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SUGGESTIONS
1. SOURCES OF RECRUITMENT:
It is suggested that finance, administrative and purchase managers can
also opt external source of recruitment because external source provides
wide range of choice and new candidates with new ideas can be adopted.
Production manager can also opt internal source as these sources are more
economical, reliable and time saving.
2.
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