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Project Coordinator
Prof. Sanjeev Arora Faculty of management studies

Project Team
Rajat Arora, Akshay Bhatt, Tannu Bhatia, Manu Chambial Kamal Bhatia, Jyoti Bhatia, Aman garg, Mayank Sood

We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. We would like to extend my sincere thanks to all of them. We are highly indebted to (shriram pistons and rings ltd) for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. We would like to express our gratitude towards our parents & member of department of management of graphic era university (faculties and Head of the department) for their kind cooperation and encouragement which help us in completion of this project. We would like to express our special gratitude and thanks to industry persons for giving us such attention and time. Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities.

COMPANY PROFILE:OVER FOUR DECADE OF EXCELLENCE: From a modest beginning in 1972, to one of the India's largest integrated manufacturers of Pistons, Pins, Rings and Engine Valves, the history of SPR is a story of grit and determination. It is a story of placing customer first, long-term partnerships with global technology leaders, continuous investment in modern manufacturing practices, relentless pursuit of quality and investment in the development of people. SPR employs 4000+ skilled employees, has an annual turnover of approx. US$176 million and has recently set up a second, most modern new Plant at Pathredi, next to Bhiwadi Industrial Area (Rajasthan), about 60 kms from Delhi, to expand capacity and to offer the latest technological products to all customers in India and abroad. SPR's people practices are considered the benchmark in the industry and have enabled SPR to grow faster than any of its competitors. WE EXPORT TO STAY AHEAD Exports are at the core and essence of SPR's business strategy. Development and manufacture of latest technology products for OEMs in Europe, USA, etc. challenges the enterprise to hone its manufacturing processes, technology and quality to global standards. This acts as a catalyst to transform the entire organisation. Not surprisingly, SPR is the largest exporter of Pistons and Rings from India to discerning customers, including Ford, Honda, Kia, New Holland, Renault and WABCO and has the "Trading House" status from Government of India. and are also amongst the best recognized brand names in the aftermarket abroad Mr.R Thyagarajan, Founder Chairman of the Shriram Group of Companies - Promoted the Shriram Group Companies in 1974. Today the group has over 15, 000 employees and operating through 700 locations and manage funds of over 15,000 Crores in the business of financial services including life insurance and general insurance. Masters in Mathematics Masters in Mathematical Statistics from Indian Statistical Institute Associate of Chartered Insurance Institute (A.C.I.1), London Visiting faculty of Asian Institute of Insurance, Philippines on Consequential Loss Insurance.

By inculcating the philosophy of putting people first, he has transformed the Shriram Group into Indias Premier Networked Financial Services Supermarket Chain. The Network Shriram comprises over 650 Branches and Service Centres, served by more than 6000 employees and 60,000 agents committed to ensuring world-class customer service. The Groups aggregate turnover exceeds Rs. 5000 crores

World Class Company, Preferred by World Class Customers Motivated, Dedicated and System Oriented Employees Safe and Healthy Work Place

Sales & Profit Growth/Leadership Strong Relationship with Collaborators Preferred OE Supplier Employee Development Superior Returns to Stakeholders Care for Environment and Society

Shriram Automotive Products an associate of the Shriram Group of Companies, one of the largest industrial groups in India. The company has been in the business of marketing Cylinder Liners and Air Cooled Blocks under the USHA and SHRIRAM PULSAR brand name.

CODE OF CONDUCT This Code of Conduct reflects values of the Shriram culture, and is also ensuring compliance with Clause 49 of the Listing Agreement with the Stock Exchange. The Code of Conduct for Shriram Pistons and Rings Ltd. is to ensure ethical conduct in the business. The matters covered in the Code are important for the Company, all the Board members, Senior Management, its shareholders/stakeholders and business partners, for their business conduct. All Board members and Senior Management personnel shall observe and implement the code of Conduct in their official day to day activities. The Board shall determine the appropriate action to be taken in the event of violation of this Code. All Board members and Senior Management personnel of the Company shall deal on behalf of the Company with professionalism, honesty and integrity, as well as high moral and ethical standards. Such conduct shall be fair and transparent and be perceived to be as such by third parties.

ETHICAL CONDUCT All Board members and Senior Management personnel shall, in his or her business conduct, comply with all applicable laws and regulations, both in letter and in spirit, in all the territories in which he or she operates. If the ethical and professional standards set out in the applicable laws and regulations are below that of the code, then the standards of the Code shall prevail. REGULATORY COMPALLIANCE The Company shall prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of India. FINANCIAL REPORTING AND RECORDS Internal accounting and audit procedures shall fairly and accurately reflect all of the company's business transactions and disposition of assets. All required information shall be accessible to Company auditors and other authorised parties and government agencies. There shall be no willful omissions of any Company transactions from the books and records, no advance income recognition, and no hidden bank account and funds.

CONFLICTS OF INTEREST The duty of all Board members and Senior Management personnel towards the Company demands that he or she avoids and discloses actual and potential conflicts of interest. A conflict of interest exists where the interests or benefits of one person or entity conflict with the interests or benefits of the Company. A. Employment / Outside Employment In consideration of employment with the Company, Senior Management personnel are expected to devote their full attention to the business interests of the Company. They are prohibited from engaging in any activity that interferes with their performance or responsibilities to the company, or is otherwise in conflict with or prejudicial to the Company. Senior Management personnel are prohibited from accepting simultaneous employment with suppliers, customers, developers or competitors of the Company, or from taking part in any activity that enhances or supports a competitors position. Additionally, all Board members and Senior Management personnel must disclose to the Companys audit committee, any interest that they have that may conflict with the business of the Company.

B. Outside directorships It is a conflict of interest to serve as a director of any other company that could be detrimental to or in conflict with the interests of the Company. C. Business interests If a Board member or Senior Management personnel is considering investing in any customer, supplier, developer or competitor of the Company, he or she must first take care to ensure that these investments do not compromise on their responsibilities to the Company. The Companys policy requires that information to Companys audit committee be given while making such an investment. Many factors should be considered in determining whether a conflict exists, including the size and nature of the investment; their access to confidential information of the Company or of the other Company; and the nature of the relationship between Company and the other Company. D. Related parties As a general rule, Board members and Senior Management personnel should avoid conducting Company business with a relative, or with a business in which a relative is associated in any significant role. Relatives include spouse, siblings, children, parents, grandparents, grandchildren, aunts, uncles, nieces, nephews, cousins, step relationships, and in-laws. The Company discourages the employment of relatives of employees/Directors in positions or assignments within the company. Further, the Company prohibits the employment of such individuals in positions that have a financial dependence or influence (e.g. an auditing or control relationship, or a supervisor/subordinate relationship). Notwithstanding that such or other instances of conflict of interest exist due to any historical reasons, adequate and full disclosure by the interested Board members and Senior Management personnel should be made to the Company's management. It is also incumbent upon every employee to make a full disclosure of any interest which the employee or the employee's immediate family, which would include parents, spouse and children, may have in a Company or firm which is a supplier, customer, distributor of or has other business dealings with his or her Company. E. Corporate Opportunities All Board members and Senior Management personnel may not exploit for their own personnel gain, any new business opportunity to the Companys area of business viz., auto components, unless the proposal is informed in writing to the CMG, and the Company in the CMG declines to pursue such an opportunity. The Company will convey its decision with in three months of receiving the written proposal.

F. Other situations Because other conflicts of interest may arise, it would be impractical to attempt to list all possible situations. If a proposed transaction or situation raises any questions or doubts, all Board members and Senior Management personnel must consult the Company's audit committee. Protecting Company Assets The assets of the Company shall not be misused but shall be employed for the purpose of conducting the business for which they are duly authorised. These include tangible assets such as equipment and machinery, systems, facilities, materials and resources as well as intangible assets such as proprietary information, relationships with customers and suppliers, etc. Quality of Products and Services The Company shall be committed to supplying goods and services of the highest quality standards, backed by efficient after-sales service consistent with the requirements of the customers to ensure their total satisfaction. Health, Safety and Environment The Company shall strive to provide a safe and healthy working environment and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the country. Equal-Opportunities Employer The Company, all Board members and Senior Management personnel shall provide equal opportunities to all its employees and all qualified applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality and disability. Employees of the Company shall be treated with dignity and in accordance with our maintaining a work environment free of sexual harassment, whether physical, verbal or psychological. Gifts and Donations No Board member or Senior Management personnel shall (directly or indirectly) accept any gift, entertainment, trip, discount, service, or other benefit from any organization or person doing business or competing with the Company (other than modest gifts/ benefits of nominal value or entertainment as part of normal business courtesy and hospitality) which would or reasonably appear to be capable of influencing such person to act in a manner which is against the interest of the Company. Political Non-Alignment The Company shall not support, directly or indirectly, any specific political party or candidate for political office. The Company shall not offer or give any Company funds or property as donations, directly or indirectly, to any political party, candidate or campaign.

Corporate Citizenship The Company, all Board members and Senior Management personnel shall be committed to be a good corporate citizen, not only in compliance with all relevant laws and regulations, but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates, with the objective of making them self-reliant. Such social responsibility would comprise: initiating and supporting initiatives in the field of community health and family welfare, vocational training, education and literacy, providing employment to physically challenged people and encouraging the application of modern scientific and managerial techniques and expertise. PROTECTING COMPANY ASSETS, QUALITY OF PRODUCT AND SERVICES , HEALTH SAFETY AND ENVIRONMENT, GIFTS AND DONATIONS etc

PASSANGERS VEHICLES 1. 2. 3. 4. 5. 6. 7. 8. Ford Motors General Motors Honda SIEL Mahindra & Mahindra Maruti Suzuki Nissan Motor Suzuki Powertrain Tata Motors

TWO WHEELERS 1. 2. 3. 4. 5. Bajaj Auto Hero Moto Corp HMSI Suzuki Motorcycle TVS Motors

1. Ashok Leyland

2. 3. 4. 5.

Mahindra & Mahindra SML Isuzu Tata Motors Tata Cummins


6. VE Commercial Vehicles


Personnel policies and systems are designed to be supportive for the growth and stability of the organization, so that we meet the business objectives. Emphasis is laid on continuous training and development of all our employees, so that the Company maintains a competitive advantage in the market place. SPR is constantly striving to improve the quality of work force through training, development and multi-skilling. The workmen and supervisors / engineers are encouraged to participate in problem solving, using technologies and taking decisions to improve the quality of their work and workplace. There is need-based training program for everyone as per the job requirement of the individuals. COLLABORATON

On our path to great quality, we walk hand-in-hand with global technology leaders, who share our commitment to product quality and performance. We have unique distinction of having 4 collaborations with World leaders in their respective fields. We have Technical Collaborations with Kolbenschmidt AG of Germany for Pistons, Riken Corporation of Japan for Piston Rings and Fuji Oozx of Japan for Engine Valves. We also have a technical collaboration with Honda Foundry of Japan for the manufacture of Pistons for engines produced by Honda and its joint ventures in India.

KOLBENSCHMIDT AG, founded in 1910, is part of the Rhinemetal Group, Germany. It is one of the world's largest manufacturers of pistons. They have production facilities around the world producing Pistons with diameter range upto 620 mm. Their products are exported to over 120 countries around the world.

HONDA Foundry, Japan, founded in 1963 is a wholly owned subsidiary of Honda Motors, Japan. It has a fully automatic Piston casting plant and they also manufactures Intake Manifolds, Cylinder Heads and intricate aluminum castings.


Riken Corporation, established in 1927, is the undisputed world leader in steel Piston Rings. It also holds more than 50% market share of overall Piston Ring market within Japan. Piston Rings are produced within diameter range of 20 mm to 3100 mm. Besides Piston Rings, they also manufacture Cam Shafts, Knuckles, Valve Seats, Piston Inserts, Pre-combustion Chambers, Rocker Arms, Tappets etc.

Fuji Oozx is the largest Engine Valve manufacturer in Japan. They have multiple production facilities including fully automatic state-of-the-art plant. They have joint ventures in Thailand, South Korea, Taiwan and the Peoples' Republic of China.


Shri Pradeep Dinodia - Chairman Shri Hari S. Bhartia Shri Horst Binnig Shri Shinji Kawano Shri O.P. Khaitan Shri Ravinder Narain Shri C.Y. Pal Shri M. Sekimoto Shri Luv D. Shriram Shri Inderdeep Singh Shri A.K. Taneja - Managing Director & CEO Shri R. Srinivasan - Joint Managing Director Smt. Meenakshi S. Dass - Wholetime Director

PRINCIPAL EXECUTIVES Shri A.K. Taneja - Managing Director & CEO Shri R. Srinivasan - Joint Managing Director & Company Secretary Shri Rajiv Sethi - Executive Director Shri Anil Gadi - Executive Director Shri V.K. Jayaswal - Executive Director

Shri P.S. Ladiwala - Dy. Executive Director & CFO Shri Naveen Agarwal - Controller Shri Subrata Neogy - Sr. General Manager

ADVISOR Shri S. Kumar

TECHNICAL COLLABORATORS KS Kolbenschmidt GmbH, Germany Riken Corporation, Japan Honda Foundry Co. Ltd., Japan Fuji Oozx Inc., Japan

BANKERS UCO Bank State Bank of Hyderabad Corporation Bank Axis Bank Ltd. HDFC Bank Ltd. IDBI Bank Ltd. Citi Bank N.A.

AUDITORS M/s. Walker, Chandiok & Co., New Delhi

FACTORY ADDERESS 3rd Floor, Himalaya House 23, Kasturba Gandhi Marg New Delhi - 110001, India Ph: +91-11-23315941 to 45 Fax: +91-11-23311203, 23725356 Email: Website: PLANT LOCATION


A-4 & A-5, Industrial Area Meerut Road Ghaziabad Uttar Pradesh - 201003 Ph: +91-120-2724861 to 67 Fax: +91-120-2711852, 2750057


PISTONS Robotic Pouring Argon Filling of Mold Centralised coolent chilling unit Weisser (Germany) machine for oval turning and finish grooving Camless Takisawa (Japan) machine for finish oval turning Inclined valve pocket milling Double Trumpeting of Pin Bore Hard Anodizing on Top Groove X-Ray inspection facility Eddy current inspection facility Quality Automat Ultrasonic Cleaning

PISTON RINGS Green Sand Moulding Continuous Moulding Continuous heat treatment process Double Can Grinding Diskus Grinding Physical Vapour Deposition (PVD) - Ion Plating PVD + Gas Nitriding (GN) Moly Inlaid Semi Inlaid Moly Full Face Composite Plating of Chrome (CPC) - Asymmetrical ground OD profile Semi Inlaid Composite Plating of Chrome (CPC) - Asymmetrical ground OD profile Tough Rik Zn and Mn Phosphating

ENGINE VALVES Extrusion & upset forging Seat & tip stelliting (Oxy-Acetylene Welding) Profile hardening Continuous tip hardening Continuous grinding line

RESEARCH AND DEVELOPMENT SPR R&D Centre situated at Ghaziabad is fully equipped & capable to provide complete and comprehensive solutions, catering to the exacting needs of the hi-tech, new generation engines. This is achieved through a planned process as under. CONCEPTS AND FEASIBILITY This includes a detailed understanding of the customer needs and formalizing a concept to meet the functional & fitment requirements, employing modern 3D modeling softwares like CATIA, PROE, UNIGRAPHICS & IDEAS. STRUCTURAL ANALYSIS THROUGH FEA The concept model is refined through Finite Element Analysis (FEA) by applying the various load conditions foreseen in the engine. FEA analysis of a piston will yield following: Visualization of thermal and thermo-mechanical deformations Measurement of Side Forces and Wear pattern on the skirt Contact pressures on the skirt and pinbore Temperature Distribution across the entire cross-section Factors of Safety across the entire cross-section

SIMULATIONS SPR R&D is equipped with one of the most popular dynamic simulation softwares (RINGPACK), which is used for estimation of Gas blow-by and blow-back Oil consumption

Friction and power losses and Wear rates for the ring faces, groove-ring side faces and liner.

As the design is being made ready for the customer a separate group of engineers work on manufacturability of the product, using MAGMA tool, simulating the casting to understand any potential risk to understand any potential risks. It also enables to come up with an optimum die designs for the best output.

RIG TESTING State-of-the-art rig testing equipment is deployed for validating the prototype in a near virtual engine condition. For example Piston can be pulsated for over 2 million cycles to confirm the design strength under varying gas force loads. For ultra light gasoline piston, the same test can be done to check fatigue failures both under gas forces and inertia forces. Apart from these there are custom made rigs for testing new materials and surface coatings in Piston Rings as well. ENGINE TESTING A separate engine testing facility has been established to validate the prototypes in line with the test cycles specified by the OEM. SPR is proud to have partnered with many leading OEMs for sharing the responsibility of testing for many new programs. The various tests being conducted are: Performance Testing Endurance Testing Cold & Hot Scuff Testing Micro-welding Testing Temperature Measurements on Pistons etc


ANALYSIS LABORARTORY R&D has an independent analysis lab for both metallurgical and meteorological analysis of tested samples.










PISTON RING TYPES:Plain Compression Ring

Inside Stepped Ring

Inside Beveled Ring

Taper Napier Ring

Reverse Torsion Ring


Key Stone Ring

Half Keystone Ring

Taper Rings

Rikvent Ring (Low Axial height "SC Type")

Rikvent Ring (Rikvent Rings "SB Type" Rikvent Rings)

Diesel Vent - M Shape (DVM)


High Tension Conformable Chrome (HTCR)

Physical Vapour Deposition (PVD) Composite Plating of Chrome (CPC) Plasma Moly Spray Coating Nitriding (Gas Nitriding & Salt Nitriding) Chrome Inlay Coating Chrome Plating Parkerising


Mono-metallic Bi-metallic Forged Finished Profile Hardened Chip Welded Tip Stellited Seat Stellited Seat Hardened

SURFACE TREATMENT Chrome Plating Tufftriding (Nitro Carborising)


CNC Seat Grinder with Feedback

According to the Individual - Audited financial statement for the Year 2011, total net operating revenues increased 14.35%, from INR 734.87 tens of millions to INR 840.34 tens of millions. Operating result increased from INR 176.27 tens of millions to INR 193.5 tens of millions which means 9.77% change. The net income of the period decreased -56.47% reaching INR 30 tens of millions at the end of the period against INR 68.92 tens of millions last year. Return on equity (Net income/Total equity) went from 21.62% to 8.00%, the Return On Asset (Net income / Total Asset) went from 13.27% to 4.90% and the Net Profit Margin (Net Income/Net Sales) went from 9.38% to 3.57% when compared to the same period last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 163.41% compared to 162.97% the previous year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 4.57 to 2.19 when compared to the previous year.



Mar ' 09 Mar ' 08 Mar ' 06 Mar ' 05 Mar ' 01 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments 693.52 284.88 408.64 8.08 0.05 593.99 241.33 352.66 15.91 0.05 417.21 166.28 250.93 15.75 334.27 142.76 191.52 4.59 198.20 26.53 76.66 95.01 3.26 196.03 17.98 475.54 209.09 11.06 459.10 135.06 11.05 317.93 87.68 13.39 242.69 56.13 15.37 139.22 22.38 239.15 22.38 216.57 22.38 149.45 22.38 119.24 22.37 10.00 35.35


Mar ' 09 Mar ' 08 Mar ' 06 Mar ' 05 Mar ' 01 Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 0.05 24.50 223.75 0.05 53.19 223.75 1.97 223.75 223.75 15.15 223.75 209.98 151.20 58.77 475.54 225.82 135.34 90.48 459.10 141.09 89.84 51.25 317.93 123.42 76.84 46.58 242.69 82.58 41.64 40.95 139.22

Mar ' 09 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 44.82 119.46 -84.67 -35.20 -0.41 1.12 0.72 Mar ' 08 62.71 79.10 -93.17 3.56 -10.51 11.63 1.12 Mar ' 06 36.59 58.14 -90.84 26.95 -5.75 6.54 0.79 Mar ' 05 34.67 39.54 -62.09 25.51 2.97 3.58 6.54 Mar ' 01 14.63 25.82 -14.78 -12.54 -1.50 4.64 3.14


PROFIT AND LOSS ACCOUNT Mar ' 09 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges 253.85 50.80 93.58 19.08 59.16 476.48 105.18 8.79 113.97 20.17 48.98 44.82 14.60 218.74 46.15 83.32 18.27 56.29 422.76 111.50 12.46 123.96 16.65 44.60 62.71 21.43 161.40 22.30 57.93 54.20 295.83 84.10 5.65 89.75 8.38 25.31 56.06 19.46 129.72 18.75 48.50 50.49 247.45 78.04 3.25 81.28 6.46 22.00 52.82 18.15 68.77 24.61 28.17 5.23 15.26 142.05 43.65 2.17 45.82 17.24 13.52 15.06 4.35 581.66 534.26 379.92 325.49 185.70 Mar ' 08 Mar ' 06 Mar ' 05 Mar ' 01


PROFIT AND LOSS ACCOUNT Mar ' 09 Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 30.22 30.22 50.22 4.48 0.76 44.98 Mar ' 08 41.28 41.28 61.28 5.59 0.95 54.74 Mar ' 06 36.59 36.59 53.59 5.59 0.78 47.21 Mar ' 05 34.67 34.67 49.67 5.03 0.71 43.93 Mar ' 01 10.71 -0.43 10.28 21.28 2.24 1.30 0.36 17.38


MARKET SHARE OF THE COMPANY:The Rs 220-crore Usha Shriram, one of country's leading small appliance makers, is eyeing a 10 per cent market share of the Rs 2,000 crore pressure cooker market in one year with the launch of its new range in Kolkata today. The market leaders in pressure cooker are currently Hawkins and Prestige. According to Sapnam Singh Sandhu, assistance vice president, sales and marketing of the company, We have launched cook wear, gas stoves and chimneys. All our products are priced affordably so that they can cater to the mass market. We are eyeing a 10 per cent market share of the pressure cooker market in one year. Close to 50 per cent of the market is unorganised. We are also planning to launch cooking pans and small appliances in the next four months. We currently have 850 distributors which is also expanding, Sandhu added. It also plans to enter the light emitting diode (LED) lighting products segment, which it may import from Europe and sell them under its own brand name. "LED bulbs are more energy conservative than CFL, but cost nearly 10 times more than CFL items. We plan to price LED bulbs in a manner to position them as an alternative to CFL," Sandhu said. The LED lighting product market is close to 2-3 per cent of the Rs 5,000 crore Indian lighting industries.

MARKET POSITIONONG OF THE COMPANY:Commercial vehicles financier Shriram Transport Finance Co. Ltds move to acquire General Electric Co.s Indian transport finance assets will increase its interest margins. It also creates a base of clients for the company for its entry into the construction equipment leasing business. Shriram has acquired around Rs1,100 crore of GEs hypothecation loan assets. This is around 4.2% of its portfolio of Rs26,000 crore, and the company states that the valuation of the deal was attractive. At present, Shriram earns a net interest margin of around 8% on its portfolio. The acquisition could help expand this by 10-15 basis points, as the return on assets in the acquired portfolio is higher. One basis point is one-hundredth of a percentage point.


However, the acquisition brings a different profile of customers in the truck segment. The GE portfolio has medium and large truck operators, where Shriram does not intend growing. Instead, Shrirams strength stems from being a quasi-monopoly in the used truck financing segment, thriving mainly on single or small truck operators, where it has a 25% market share. The company has chosen to have a lower exposure with 7% market share in the new truck financing segment. There is stiff competition in this space, with banks and non-banking financial companies vying for a share. Shriram has been able to sustain its margins and maintain a healthy portfolio with nonperforming loans of around 2% of its portfolio. This is on account of its niche business presence and personalized collection system built around 500 branches throughout the country, a business model hard to replicate. An interesting part of the GE deal is the Rs300 crore of outstanding loans towards the construction equipment segment. This could be the kicker for Shrirams intended foray into this space through its wholly owned subsidiary. Shrirams business strategy is centred on extending services in the low-ticket truck operators space. It is setting up malls, kiosks and auction centres for facilitating purchase and sale between truck owners, whereby it will earn a commission. Although this business is barely 1% of net revenue, it builds visibility and translates into business for its core activity. Analysts consensus is that for the year to March, Shrirams earnings will grow by around 25% from around Rs29 per share in fiscal 2009. The shares closed around 7% higher on Thursday at Rs467, which discounts the estimated earnings of around Rs36 about 13 times. For the next two to three years, the company is poised to ride the upturn in economic activity and commercial vehicle sales.

Personnel policies and systems are designed to be supportive for the growth and stability of the organization, so that we meet the business objectives. Emphasis is laid on continuous training and development of all our employees, so that the Company maintains a competitive advantage in the market place. SPR is constantly striving to improve the quality of work force through training, development and multi-skilling. The workmen and supervisors / engineers are encouraged to participate in problem solving, using technologies and taking decisions to improve the quality of their work and workplace. There is need-based training program for everyone as per the job requirement of the individuals.

Working towards conserving and optimizing resources, planting and actively supporting green belts is an on-going commitment at SPR. An approach that has won us ISO 14001 : 1996 certification for our environment management system from DNV, Netherlands. SPR has also received "Green Rating Certificate" in 2004 under the Environment Performance Rating Project, partnered by The World Bank, CII (Confederation of Indian Industry) and Uttar Pradesh Pollution Control Board.