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Organizational study- Shimoga Trailers and Impliments.Pvt.

Ltd-Shimoga

Organizational Study at Shimoga


Trailers and Implements Pvt.Ltd

Conducted by :

Pawan P Prabhu
MBA 3rd Sem
East West College of Management
Banglore-91
Annual yr, 2008-09

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Executive Summary

Introduction
Today’s world need is a corporate world and it requires a lot of management
activities to achieve success, for this purpose in this competing corporate world of
multinationals and industries , industrial revolution has brought with it group
production and group consumption activities and also it has brought in a lot of
corporations competing for preferences and success in the business world, it may be
a manufacturing industry or any other type of industry experience and specialization,
have become a must to compete with others become very much essential for all the
companies. Lecturers teach the students; this learning will make an individual
knowledgeable in theory of the various functions of a company. But a person comes
out from class room and visits various industries, in this situation he can learn more
from them. In such a situation real experience in the practical functioning and
operations of a company can be of very much use to the students of management
studies.

For the purpose of acquiring practical knowledge of the working and functioning of a
company. Bangalore University has incorporated an in plant training into its business
management schedule. This in plant training tells us how the different departments in
the organization work as a single unit.

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Objective Of The Study

 To study how manufacturing process is carried by company.

 To study the organizational functions.

 To study functions of various departments.

 To study internal dependence of these all departments.

 To know about how company manage to sell and purchase products.

 To study how they trail people on the job or off the job.

 To understand the difference between theoretical & practical aspects of


functioning organization.

 To get real time exposure of corporate world.

Scope of the study

The study is being conducted for the M/s“Shimoga Trailers and Impliments.Pvt.Ltd
“Shimoga. This study tells us an overall view of organization and functions carried
out by different departments like Production, Marketing, Human Resource, Sales,
and Finance.

Methodology

Primary and secondary data have been collected and used to bring out this project
report

Primary data have been collected through

By interviewing and close contact with Managing Director Mr.Bhaskar G Kamath and
my external guide Mr.Narasimha Shanbhag.

The Manager was personally met to get more information regarding the following
aspects:

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 History of the company.

 Methods adopted by the company in promoting the product in the market.

 Annual turnover and demand of the product.

 Administration of sales.

 Marketing mix strategy.

 And other information.

Interview with the sales department.

 This was conducted to get the suitable answers for the below questions
 To know the sales activities adopted by them.
 To get the advice about the better promotion and advertisement policies.
Which the company should adopt.
 To get advice about the marketing strategy adopted.

Secondary data has been collected from


 Search engines and Websites

 www.google.com

 www.scribd.com

 Annual report of Shimoga Trailers and Implements.Pvt.Ltd.

Limitations
The limitations of the study are as follows
 The information provided by the company is assumed to be authentic.
 The data and opinion collected are assumed to be objective.
 This study was done. Mainly through the secondary data.

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 Also time limitation of the study.


 The survey is conducted only on limited respondent.

Industrial Profile
Introduction
The Beginning of New Era…
With the invention of the wheel in 4000 BC, man’s journey on the road of
mechanized transport had begun. Since then he continually sought to devise an
automated, labor saving machine to replace the horse. Innumerable attempts
reached conclusion in the early 1760s with the building of the first steam driven
tractor by a French Captain, Nicolas Jacob Cugnot. It was however left to Karl Benz
and Gottlieb Damlier to produce the first vehicles powered by the internal
combustion engine in 1885. It was then that the petrol engine was introduced, which
made the car a practical and safe proposition. Then onwards, it has been one big
journey...on the roads
Indian Agricultural Equipment Industry
India’s agricultural sector is one of the most significant components of the country’s
economy, though its share in the GDP has been decreasing over the years. Nearly
60 per cent of India’s population is dependent on agriculture for its livelihood.
Performance of the agricultural sector continues to have a crucial impact on the
prices of essential goods and market demand for various consumer products.
Agricultural Equipment industry plays a key role in supporting the performance of the
agricultural sector in India. Farming activities are increasingly getting mechanized,
and the availability, quality and performance of agricultural equipment has an
increasing impact on improving the output and productivity of the agricultural sector.
While India manufactures and deploys a range of agricultural equipment across the

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industry value chain, tractors and tillers are the two that constitute the bulk of the
industry.

The Indian agricultural equipment industry covers the gamut of equipment used
for different activities across the agriculture value chain. The key activities along the
value chain and the equipment used in each stage are depicted below.This report
focuses on the tractors and tiller segment as they constitute the majority of the Indian
agricultural equipment industry.

The industry structure spans both tiny rural units and MNCs
The manufacture of basic agricultural implements is largely by village artisans and
tiny units, small scale industries and the State Agro-Industrial Development
Corporations. The traditional artisans and small scale industries rely upon their own
experience, user’s feedback and government owned research and development
institutions for technological support. They typically operate out of their own homes
or basic establishments that are often without regular utility services.

Medium scale industries operate in their own premises with adequate infrastructure,
sometimes forming a part of an industrial estate. They also have manufacturing and
marketing facilities and employ skilled manpower. Products such as diesel engines,
electric motors, irrigation pumps, sprayers and dusters are produced in this sector.
Complex products such as land development machinery, tractors, power tillers, post
harvest and processing machinery and dairy equipment are manufactured by large
players in the organized sector. These firms typically have large manufacturing
facilities, professional marketing network of dealers and provide effective after sales
service. They also have in-house research and development facilities or have joint
ventures with advanced countries for technology up gradation. Mahindra &
Mahindra’s

Farm Equipment Sector (FES), which designs, develops, manufactures and markets
tractors for Indian and overseas markets, is the largest manufacturer of tractors in
India.

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Other major players include TAFE, New Holland, John Deere and Punjab Tractors.
The Indian agricultural equipment industry covers the gamut of equipment used for
different activities across the agriculture value chain. The key activities along the
value chain and the equipment used in each stage are depicted below. This report
focuses on the tractors and tiller segment as they constitute the majority of the Indian
agricultural equipment industry.

Mechanization of agriculture has been growing

Over the years, the share of human and animal power in agriculture has reduced
drastically, paving the way for a variety of equipment to emerge. Many of these are
driven by tractors, diesel engines or tillers. Several of the traditional

Wheels of Change

India had its date with this wonderful vehicle first time in 1898. Then for the next fifty
years, cars were imported to satisfy domestic demand. Between 1910 and 20's the
automobile industry made a humble beginning by setting up assembly plants in
Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently
after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd
(PAL) earned the distinction of manufacturing the first car in the country by
assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors
(HM), which started as a manufacturer of auto components graduated to
manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign
competitors to enter the Indian car market, Indian roads were ruled by Ambassador
Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial
years.

In 1952, the GOI set up a tariff commission to devise regulations to develop


an indigenous automobile industry in the country. After the commission submitted its
recommendations, the GOI asked assembly plants, which did not have plans to set
up manufacturing facilities, to shut operations. As a result General Motors, Ford and
other assemblers closed operations in the country. The year was 1954 and this

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decision of the government marked a turning point in the history of the Indian car
industry. The GOI also had a say in what type of vehicle each manufacturer should
make. Therefore, each product was safely cocooned in its own segment with no
fears of any impending competition. Also, no new entrant was allowed even though
they had plans of a full-fledged manufacturing program. The restrictive set of policies
was chiefly aimed at building an indigenous auto industry. However, the restrictions
on foreign collaborations led to limitations on import of technology through technical
agreements. In the absence of adequate technology and purchasing power, the car
industry grew at a snail's pace in the 60’s. The demand for cars in 1960 was to the
tune of 15,714. In the next two decades the number increased to 30,989 i.e. a CAGR
of only 3.5 per cent.

The Indian automobile industry can be broadly classified into:


 2 /3 Wheelers
 Passenger Cars
 Commercial Vehicles (LCV/HCV/MCV)
 UV (Utility vehicles)
 Tractors

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Company Profile
M/s” SHIMOGA TRAILERS AND IMPLIMENTS PVT.LTD.”

Established in 1993,M/s” Shimoga Trailers & Implement’s Pvt.Ltd.” founded by the


great visionary “Mr. Bhaskar G Kamath”. M/s”Shimoga Trailers & Implement’s
Pvt.Ltd”, popularly known as Om Ganesh, is Malnad’s leading manufactures of
trailers for Tractor, Tipper and agricultural implement.

The agricultural sector is at an all time boom as a result of the rising demand for
agricultural machines and equipments. Shimoga trailers, established in the year
1993, has made its presence felt in the agricultural sector by providing an array of

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precision engineered equipments. This company is a recognized manufacturers


and suppliers

Shimoga trailers are known for technical supremacy and have been the first choice
among all the major farmers, logistics companies and government organizations in
Malnad region and some other parts of Karnataka. About 75 - 80% of trailers found
in the districts of Shimoga, Davangere, Chikmaglur, and Mandya are of this
company.

They have there brand name as “OM GANESH “by which they market there product,
this company was established as small machine shop in the year 1993 at Balraj Ars
road in an area of “60x40” dimension. Right from the beginning stringent quality
commitment and the customer’s satisfaction has been the utmost goal. It has
resulted in gaining the supremacy, confidence and loyalty of the customer.

On 30/11/1996 it was shifted to Shankar mutt road now the company as spread over
an area of “45x 150” sq ft that is “6750” sq fts of work space, labor force of around 30
workers, the company produces around 15 trailers per month and there is no labor
turn over, until now the company as produced more than 1800 trailers

Company Milestones

Established in 1993

 Gained the farmers loyalty in the entire Malnad region with other districts
including Davangere , Mandya and Chitradurga .There customers can also be
found in Karwar district

 Bagged the orders from government organizations like municipal council for
there waste disposal trailers and water tankers

 They got recognized by the agricultural university ,Bangalore for the


agricultural implements such as

 Cultivators

 M B plow

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 Disc harrows

 Cage wheels

 Leveler

 Trenches

 Hole digger

And got subsidies for some of the agricultural implements.

 First to introduce hydraulic trailers to Malnad region.

 First to start agricultural implements industry In Malnad region

 They got authorized district dealership for Tafe Massey Ferguson and started
a new firm called “Om Ganesh Tractors “

 They got another authorized district dealership for “Yamaha” and started
another new farm called “Om Ganesh Motors”

Location of the Company

Various geographical and economic factors effect the location they are

 Climatic condition

 Market condition

 Labour position

 Water supply

 Transport

 Power supply

 Capital investment

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 Raw materials

The company is located in such an area where global automobile giants like Tata,
Chevrolet, Mahindra, Bajaj, Ford, Maruti, Hero Honda, John Deer, Ape Piaggio, TVS
with intense competition to them

It is totally an automobile zone you can see in the map where existence of giant
players like Maruti, Chevrolet and others were present in the same vicinity and
another main factor which plays an important role is the railway station ,road and
truck terminal which is said to be the veins of an successful business,

This location is well connected with road and railways which is an advantage, by
which they can have a well transportation facilities to the other parts of the state and
country, with all these it has a good road connection .The Harihar road which
connects the Poona-Bangalore road which is a national highway and Poona is said
to be one of the automobile zone in India

Shimoga Trailers & Implement’s Pvt.Ltd is committed

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 To become global leaders in the supply of state of the art quality trailers
and implements in time.

 To provide products for complete satisfaction of the customers at


competitive prices.

 To develop a culture of continuous improvement with total team


involvement.

Sister concern firms

They have two sister concern companies M/s“Om Ganesh Tractors “and M/s “Om
Ganesh Motors

Customer centric approach

In there 16 years of experience Shimoga trailers have designed the trailers based on
the customer need , they have made many changes in the design of the trailers
according to the task which as to be performed by the trailers. Some trailers are
fitted with the blade set which acts as the shock absorber which will gives extra
support and height to the trailer the trailers are designed on the basis of the
geographical factors some regions have ghats ,ups, downs and flat regions some
times the trailers has to be less weighted and small in length due to the ghats , and
some trailers need to be heavy to carry the agricultural product like sugarcane etc
depending on the load and geography the trailers are designed

They are of the opinion that the customer is the king, who makes or breaks an
organization. Abiding by this policy, there workers work in proximity with farmers and
understand their needs and requirements. They then design the products based on
these specifications to completely satisfy the customers. Feedback and suggestions
from their end are extremely valuable, as they act as guidelines for the company to
improve on its products and processes.

In today’s world of intense competition and rapid dynamism, most of the companies
worldwide are turning their focuses on the customer. Suddenly the customer had

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succeeded in capturing all the attention of the companies towards him, so much so,
that the once famous maxim, “customer is the god” has become so true and relevant
today. There has been a “paradigm shift” in the thinking of these companies and
none other then the customer has brought this about.

Earlier there was a sellers market, since goods and services were in short
supply and the sellers use to call the shots. But, ever since the advent of the era of
globalization, there has been total transformation in the way the customers being
perceived. Today, marketers are directing their efforts in retaining the customers and
customers’ base. Their focus has shifted towards integrating the three elements
people, service and marketing.

The customer’s importance has assumed imponderable proportions in today’s


world, because of the inherent value that the customers command. A customers can
“make or break” a company. It is the responsibility of every company to see that all
its customers are equally satisfied with them, for one single dissatisfied customer will
tell at least nine others about the dissatisfaction and will spark off a chain reaction
and spell doom for that company. In such scenario, retention of the existing
customers assumes diabolical proportion. Research has thrown light on some
important aspects of customers’ retention it has been proved empirically that
acquiring new customers can cost five times more than the cost involved in satisfying
and retaining current customers.

In the past, the customers was taken for a ride, as there were not many players in
the fields, not much importance was attached to product safety, quality, service and
product appeal. The attitude of the manufacture was that of “caveat – emptor”.
Thanks to the government policies on liberalization, globalization and privatization
(LPG), the market scenario has changed today. Today, the customer has a host of
defense mechanism like the customers protection laws, regulation of the
government, the powerful hands of the organization, customers’ courts, switching to
substitute or competitors that offer at competitive prices, etc. The maxim,” caveat –
emptor” has been replaced by “caveat venditor”.

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In the past, after sales service was consider as a cost center, Companies were
lethargic in attending to customers complaints. Availability of trainee service personal
and quality genuine spare parts posed serious problems. However, with the rising
competition, there could not be much product differentiation, as price and quality
were comparable and latest technology was to each and every company in the field.
Since, there could not be much differential a tangible assets, the companies
concentrated on the “intangible assets”, namely the “service factor”, which served as
a major differentiator. Today after sales service is an important aspect of every
company, and it is no more considered as a cost center, but considered as a profit
center. Every organization strives hard to retain its existing customers at any cost
since it is five times costly to get a new customer, then to retain an existing
customer. Most of the industries today use of information technology to best services
to their customers.

Vision

To be amongst the most admire companies in India committed to be excellence.

Mission

To achieve market leadership through excellence in the quality of product and


services by adopting state of the art technologies and innovative management
approaches aim towards customer satisfaction

Quality policy

• To become global leaders in the supply of the state of the Aril quality hydraulic
trailers and agricultural implements in time.

• To provide products to complete satisfaction of the customers by meeting


their requirements at competitive prices.

• To develop a culture of continual improvement in quality, delivery, service,


cost and technology with total team development.

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• To ensure due care regarding product safety and minimize potential risks to
employee.

Infrastructure facility

Location: The activities of the company by the side of Hero Honda tat is Mythri
motors Shankar mutt road, Shimoga it is nearly 2 km from the heart of the
Shimoga town, the location enjoys the necessary infrastructure facilities like road,
power, railways, communication, water etc.

Land: it is of 45x150 sq fts; the land is well developed and it does not require any
additional investments.

Building: The Company has constructed a building suitable to its requirements.

Plant and Machinery: there are various machine such as lathe, drilling and
cutting which is required in there regular operations. A state-of-the-art
manufacturing unit outfitted with latest manufacturing equipments. Cost effective
techniques of production. Regular up gradation and overhauling of machinery to
keep them under proper working conditions

Power: in case of electricity failure they have generator facilities.

Transportation: They use road transportation but they have well connected with
a railway which is very nearer to them and which can be used. The location is
connected into the nearest port in Mangalore and Karwar

Board of Directors Designation


Bhaskar G Kamath Managing Director
Shalini B Kamath Director
Auditor
K V Vasantha Kumar CA
Company Secretary
Mr.Shashidhar G S CS
Banker
Canara Bank. Funding & Finance
SSI Branch,Kuvempu Road.
Shimoga

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Product Profile
Shimoga trailers are the pioneers in manufacturing of tractor trailers they have
obtained strong customers loyalty in the 4 districts of Karnataka for trailers. They are
the initiator’s to introduce the agricultural equipments to the Malnad region, some of
there product profile as follows.

Trailers and Tankers

Trailers are the wheeled platform, sometimes equipped with a motor, for conveying
loads in a warehouse or freight yard. They consist of two types’ hydraulics and
normal trailers. Hydraulics have the capacity to lift the payload they are used in
carrying sand ,stones , materials required for construction, agricultural purposes etc
In this type the hydraulic jacks are used with the arm supporter for lifting purpose.
Normal trailers don’t have the capacity of lifting, these are used for the cargo
purpose and they don’t have the hydraulic jack to lift the sleeper or platform.

Tankers these are also trailers but have a doom shaped structures mounted on a
platform, equipped with a tractor or any kind of wheeled engine.

Disc harrow

In agriculture, a set of harrows is an implement for cultivating the surface of the soil.
In this way it is distinct in its effect from the plough, which is used for deeper
cultivation. Harrowing is often carried out on fields to follow the rough finish left by
ploughing operations. The purpose of this harrowing is generally to break up clods
and lumps of soil and to provide a finer finish, a good tilth or soil structure that is
suitable for seeding and planting operations. Such coarser harrowing may also be
used to remove weeds and cover seeds after sowing. Used in one pass to prepare
the soil for seeding. it is also common to use any combination of two harrows for a
variety of tilling processes. Where harrowing provides a very fine tilth, or the soil is

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very light so that it might easily be wind-blown, a roller is often added as the last of
the set.

Post digger

Tractor auger may also be used in agriculture or animal farming for digging post
holes. These augers are also called an Earth auger or Post digger. Tractor Augers
are attached to a tractor via 3 point hitch with power to the auger drive unit provided
by the tractor engine's PTO shaft.
Field cultivators

Field cultivators are used to complete tillage operations in many types of arable crop
fields. The mail function of the field cultivator is to prepare a proper seed bed for the
crop to be planted into, to bury crop residue in the soil (helping to warm the soil
before planting), to control weeds, and to mix incorporate the soil to ensure the
growing crop has enough water and nutrients to grow well during the growing
season. The implement has many shanks mounted on the underside of metal frame
and small narrow rods at the rear of the machine that smooth field cultivators, one-
to-many hydraulic cylinders raise and lower the implement and control its depth.

MB plough

A major advance in plough design was the mould board plough(American spelling:
Mould board plough), which aided the cutting blade. The coulter, knife or skeith cuts
vertically into the ground just ahead of the share (or frog) a wedge-shaped surface to
the front and bottom of the Mould board with the landside of the frame supporting the
below-ground components. The upper part of the frame carries (from the front) the
coupling for the motive power(horses), the coulter and the landslide frame.
Depending on the size of the implement and the number of furrows it is designed to
plough at one time, there is a wheel positioned to support the frame in the case of a
single-furrow plough there is only one wheel at the front and handles at the rear for
the ploughman to steer

Cage wheel
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A device to increase the traction performance of a tractor in wet paddy field,


effectiveness of a cage wheel as a traction aid with driving tyres of agricultural
tractors in wet paddy field. The measurements were made in a wet paddy field in a
hardpan 30-40 cm deep in which tractor are not likely to operate without a traction
aid. The traction developed by individual lugs of a cage wheel decreased due to their
interference.

Trencher
A trencher is used to make trench’s and channels for irrigation purposes which is
needed for irrigation purposes to flow the water for the fields.
A trench is a type of excavation or depression in the ground. Trenches are generally
defined by being deeper than they are wide (as opposed to a wider gully or ditch),
and by being narrow compared to their length (as opposed to a simple hole

Organizational Structure

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Production
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Structure

Types of Trailers

The trailer is basically divided into two types

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 Normal trailers

 Hydraulic trailers

Normal trailers

These trailers don’t have the capacity of lifting .these are used for the cargo purpose,
they don’t have the hydraulic jack to lift the sleeper or platform.

Hydraulic trailers

These have the capacity to lift the payload they are used in carrying sand ,stones ,
materials required for construction, agricultural purposes etc .

In this type the hydraulic jacks are used with the arm supporter for lifting purpose. On
the basis of capacity and payload the trailers are produced in the followed tones

 10 tone, size 11x6.5 feet

 8 tone, size 11x6.5 feet

 5 tone, size 10x6 feet

Raw materials

Channels 6 inch, MS sheet 6 mm, door sheet 10 gage, angle frame 1.5 inch, inches,
handles, side pipe, blade set - main and helper, axel 90mm square or round, hub,
bearings 322 16/322 13, tyre size 900x20, screw 6/8, bolt nut 5/8, power supply, oil
and grece, cotton wastes, paints, work force, workshop layout, gas, jack pumps,
machinery( Lathe, grinding, drilling, gas cutter, welder, sheet bending, hydraulic
pressing, paint sprayer).

Blue print and design

Initially a blue print of trailer is made with using “Auto cad” software by a registered
and recognized designer, so as to meet all the RTO norms and rules.

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Preparation of chasse

Chasse form the basic foundation for the whole trailer. The chasse is being prepared
on the basis of the payload capacity.

The 6 inch channel is cut into 4 pieces (2 of 4 feet breadth and two of 11.5 feet
length) this pieces are welded to form a rectangular chasse lay out with the help of
lathe machine, gas cutter and welder.

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Platform laying

The platform is prepared in a rectangular shaped frame, the frame is of 11.5 x 6 feet
dimension. The 6 feet, 6 inch channels are welded parallel to each other to form the
platform layout.

MS sheet laying

After the formation of the chasse, platform. A metallic sheet called as MS sheet is
laid on the platform, which forms the floor of the trailer.

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Door assembly

The metallic sheet of 10 gage is cut and bended with the sheet bending machine
.The size of the door is based on the dimension of the platform , the door height is of
18 inch from the platform .Length is of 11.5 feet and breadth is of 6 feet , the door
are assembled using the inches , handles, side pipe.

Final assembly

This is the final stage of the trailer where the axel of around 6.5 feet length square or
round , blade set , tyres , jacks are assembled to give the final touch.

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Painting

Painting is done by the expert painter, the paintings is carried on the basis of the
tractor color or customer choice.

Some of the colors available are as follows

 Deep orange

 Farm track blue

 Mahindra red

 L & T green

 New Holland Blue

 ST Grey

Painting

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About Lathe machine

In woodturning, metalworking, metal spinning, and glassworking, a lathe is a


machine tool which spins a block of material so that when abrasive, cutting, or
deformation tools are applied to the block, it can be shaped to produce an object
which has rotational symmetry about an axis of rotation. For many people machines
remain a mystery. But they quicken the pulse of those with engineering blood
coursing through their veins. Take the well-used lathe shown here. The machine is a
feat of engineering in itself, with knurled knobs and cogwheels, nuts, bolts and belts,
winders and wheels, smooth shafts, threaded shafts, levers, and chucks with jaws.

Gas cutter

This is used in cutting the channels into required size of length and breadth, the gas
used here is of normal Liquid Petroleum Gas.

Pressing machine

Pressing machine is used for making the channels strait which are slightly bent and
which are used to give the shape to various mechanical operations

Sheet bending machine

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These machines are used to bend and cut the very hard metallic sheet which used in
making the doors and body of the trailer.

Drilling machine

It is used to dig the holes on the chasse and other needed surfaces.

Grinding machine

It is used to grind the surface area; it will make a smooth surface on an uneven
surface.

Paint sprayer

This is a gun like structure which is used in painting purposes.

Marketing

Structure

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Marketing Strategy

Strategic thinking is key to the evolution of successful marketing strategies of


Shimoga trailers. This involves the following analyses:

i. Understanding markets: Strategic perspective of the market


requires skilful analysis of the trend and how they affect the market size and
demand for the firm’s product.
ii. Finding market niches: Price, service, convenience and
technology are some of the niches in Indian market.

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iii. Product and service planning: Analysis of the customer’s


promotion of the brand, both of the firm and competitors, besides an analysis of
the situation in which the customer uses the product.
iv. Distribution: Structural changes in inventory management,
mobile distribution are some of the key factors that are going to affect the
distribution process in the Indian market.
v. Managing for result: With pressure on costs, prices, and
margins, marketers will have to make effective utilization of every rupee spent in
marketing.

Market opportunity:

Identification of market opportunity is critical before the management of affirm takes


a decision to launch or diversify in any product area. This involves analysis of the
following:

 Size of the market


 Marketing strategies and the extent and quality of services rendered by other
firm in the industry.
 Market programmed required to satisfy market wants.
 Identification of key success factors in an industry and linking them to a firm’s
strengths and weakness.
 How well the market is served.
 Prospective inches.
 Marketing mix required to succeed.
 Core competencies required.

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Market Industry Competition


segment analysis analysis
analysis

Demand
Trade
Condition
analysis
s

Market opportunity

Size of the market


How well the market is served
Prospective inches
Marketing mix required to succeed
Core competencies required

Framework of market opportunity analysis

Size of the market:

Sizes of the market are....

I. Demand analysis: is the core aspect of market opportunity.


II. Segmentation analysis: is the process of dividing the market into homogeneous
sub units.
III. Industry analysis:

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The diagram in the next page will give the clean picture of the industrial
analysis

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Entry Barriers: High

The entry barriers are high for the trailer


industry. It is a highly capital intensive
industry.

Bargaining Power of
Bargaining Power of the the Suppliers: High
Buyers: High

The automobile
The OEMs have total Inter Firm Rivalry: Low industry consumes
control over prices. In nearly 20-30% of the
The trailer industry in Malnad
fact, the OEMs faced iron produced in the
region is fairly less, with the
with declining country. The price of
80% of the total trailers and
profitability have also iron is controlled by
implements seen in the region
reduced the number of Steel Authority of India
of Malnad is of Shimoga trailers
component suppliers to and the prices of iron
make the supply chain have registered a
more efficient. significant increase in
recent times.

Threat of Substitutes: Low but Increasing


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During recent years some companies in 56
neighboring districts related to agricultural
implements are coming up but due the lack
of technology, quality, infrastructure and
Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

Entry Barriers: High

The entry barriers are high for the trailer


industry. It is a highly capital intensive
industry.

Bargaining Power of
Bargaining Power of the the Suppliers: High
Buyers: High

The automobile
The OEMs have total Inter Firm Rivalry: Low industry consumes
control over prices. In nearly 20-30% of the
The trailer industry in Malnad
fact, the OEMs faced iron produced in the
region is fairly less, with the
with declining country. The price of
80% of the total trailers and
profitability have also iron is controlled by
implements seen in the region
reduced the number of Steel Authority of India
of Malnad is of Shimoga trailers
component suppliers to and the prices of iron
make the supply chain have registered a
more efficient. significant increase in
recent times.

Threat of Substitutes: Low but Increasing

During recent years some companies in


neighboring districts related to agricultural
implements are coming up but due the lack
of technology, quality, infrastructure and
funding they are not considered as threats

Industry Analysis - Porter's Model

Competitor analysis: analysis of competition how well the market is served.

Marketing mix:

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A Marketing mix is the division of groups to make a particular product, by pricing,


product, branding, place, and quality. Although some marketers[who?] have added
other P's, such as personnel and packaging, the fundamentals of marketing typically
identifies the four P's of the marketing mix as referring to:

1. Product
2. Price
3. Promotion
4. Place

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Product

A tangible object or an intangible service that is mass produced or manufactured on


a large scale with a specific volume of units. Intangible products are often service
based like the tourism industry & the hotel industry. Typical examples of a mass
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produced tangible object are trailers. A less obvious but ubiquitous mass produced
service is a computer operating system.

Price

The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.

Place

Place represents the location where a product can be purchased. It is often referred
to as the distribution channel. It can include any physical store as well as virtual
stores on the Internet.

Promotion

Promotion represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements - advertising, public relations,
word of mouth and point of sale. A certain amount of crossover occurs when
promotion uses the four principal elements together, which is common in film
promotion. Advertising covers any communication that is paid for, from television and
cinema commercials, radio and Internet adverts through print media and billboards.
One of the most notable means of promotion today is the Promotional Product, as in
useful items distributed to targeted audiences with no obligation attached. This
category has grown each year for the past decade while most other forms have
suffered. It is the only form of advertising that targets all five senses and has the
recipient thanking the giver. Public relations are where the communication is not
directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any apparently
informal communication about the product by ordinary individuals, satisfied
customers or people specifically engaged to create word of mouth momentum. Sales
staff often plays an important role in word of mouth and Public Relations.

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Broadly defined, optimizing the marketing mix is the primary responsibility of


marketing. By offering the product with the right combination of the four Ps marketers
can improve their results and marketing effectiveness. Making small changes in the
marketing mix is typically considered to be a tactical change. Making large changes
in any of the four Ps can be considered strategic. For example, a large change in the
price, say from $19.00 to $39.00 would be considered a strategic change in the
position of the product. However a change of $131 to $130.99 would be considered
a tactical change, potentially related to a promotional offer.

The term "Marketing Mix" however, does not imply that the 4P elements represent
options. They are not trade-offs but are fundamental marketing issues that always
need to be addressed. They are the fundamental actions that marketing requires
whether determined explicitly or by default.

Human Resource
Structure :

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HR department is an important functional department .it faces the challenges posed


by the ever changing dynamic environment of today.

Shimoga trailers analyses the need for new/ additional human resources and
provides this based on the requirement.

Shimoga trailers ensures that its personnel are competent having appropriate
education, training, skills and experience to perform their work which effects product
quality.

The future of the company hinges on its ability to –

• Select and recruit persons

• Train and up grade skill sets

• Extract and retain talent

• Robust performance appraisal and reward system

• Evolve performance parameters with respect to key result areas

Functions of HR at Shimoga trailers

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 Taking care of new recruits and takes necessary actions for their smooth
settle. Down in the new environment.

 Leave details of all the employees and maintaining the record thereof.

 Attending the day –to-day problems of the employees and to take corrective
action settles the issues.

 Maintaining and constantly up dating employee’s personal file by giving


incentive, attendance bonus as per their work.

Activities of HR Department at Shimoga Trailers

Recruitment.

Selection.

Training

Human resource can be regarded as the quantitative and qualitative measurement of


workforce required in the organization. Manpower planning may be expressed as a
process by which the management ensures the right number of people at the right
place at the right time for the right job for which they are suited for the achievement
of goals for the company.

Shimoga trailers believe in the HR needs to understand the complexities of each unit
and should be sensitized to the environment in which it operates. A single solution
that will fit all the units is a sure recipe for failure. Innovative scheme need to be
drawn to compensate and reward the employees. HR needs to be aware of the
external environment and market forces.

Recruitment

At Shimoga trailers the centralized recruitment process will fill up executives of


employees.

Selection

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the selection procedure is essentially a series of steps thought which additional


information is secured about the application at any stage candidate may be rejected
due to no-compatibility. Therefore selection is actually a negative process of
rejecting the unit candidates.

Selection process

Following selection procedure is adopted by Shimoga trailers for selecting the


employees

Flow chart

Shimoga trailers have around 30 employee’s min qualification for helper is SSLC
pass if they are failed and they have ability. In this case they are given training under
an expert trainee then they are employed for the respected job. The skill matrix is
prepared periodically. By analyzing this report the company will measure the
employees skills, knowledge and abilities.

Employee’s retirement benefit

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The company regularly contributing towards provident fund schemes of central


government, employees state insurance scheme for all the employees

Bonus

All the employees are sanctioned with the bonus yearly once during the fest of
Depavali

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Sales
Structure

Functions of Sales department

Purchase order

As a first step, the company gets purchase order from the customers details of
specification are also received.

Enquiry note

After the purchase order is received from the customer , the company looks forward
into the aspect that whether the customer is new or old and what is product life,

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duration etc. The demanded product and what type of product they need in what
time.

Quotation:-The Company gives the quotation of the trailer if the customer


purchases through bank loan and the customer should submit the quotation to the
bank with 25% of the money which will be mentioned in the quotation

Sanctioning of the money by the bank

The bank will sanctions full money to the company and then companies will start
producing the required product and it will takes a 10 day time from the date of money
sanctioned from the bank in case of customer buying without loans the time is taken
for 10 days from the order is taken from the customer.

Dispatch of order

The production division follows up the product movement and tries to dispatch the
product according to the schedule time. Dispatch of the product is made and
according to the standardized format.

Sales 2008-09 without 4%


VAT
Apr-08 8,70,223
May-08 7,45,115
Jun-08 4,73,720
Jul-08 1,73,965
Aug-08 4,31,998

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Sep-08 11,09,162
Oct-08 21,11,123
Nov-08 12,55,121
Dec-08 27,67,647
Jan-09 25,83,211
Feb-09 22,75,313
Mar-08 59,79,200

Sales 2008-09
Apr-08 9,05,032
May-08 7,74,920
Jun-08 4,92,669
Jul-08 1,80,294
Aug-08 4,49,278
Sep-08 11,53,528
Oct-08 21,95,568
Nov-08 13,05,326
Dec-08 28,78,353
Jan-09 26,86,539
Feb-09 23,66,326

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Mar-09 62,18,368

Finance

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The word finance refers to the concepts of time, money and risk and how they are
interrelated. Banks are the main facilitators of funding through the provision of credit,
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although private equity, mutual funds, hedge funds, and other organizations have
become important. Financial assets, known as investments, are financially managed
with careful attention to financial risk management to control financial risk. Financial
instruments allow many forms of securitized assets to be traded on securities
exchanges such as stock exchanges, including debt such as bonds as well as equity
in publicly-traded corporations.

Finance is used by individuals (personal finance), by governments (public finance),


by businesses (corporate finance), as well as by a wide variety of organizations
including schools and non-profit organizations. In general, the goals of each of the
above activities are achieved through the use of appropriate financial instruments,
with consideration to their institutional setting.

Finance is one of the most important aspects of business management. Without


proper financial planning a new enterprise is unlikely to be successful. Managing
money (a liquid asset) is essential to ensure a secure future, both for the individual
and an organization.

A bank aggregates the activities of many borrowers and lenders. A bank accepts
deposits from lenders, on which it pays the interest. The bank then lends these
deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to
coordinate their activity. Banks are thus compensators of money flows in space.

Corporate finance

Managerial or corporate finance is the task of providing the funds for a corporation's
activities. For small business, this is referred to as SME finance. It generally involves
balancing risk and profitability, while attempting to maximize an entity's wealth and
the value of its stock.

Long term funds are provided by ownership equity and long-term credit, often in the
form of bonds. The balance between these forms the company's capital structure.
Short-term funding or working capital is mostly provided by banks extending a line of
credit.

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Another business decision concerning finance is investment, or fund management.


An investment is an acquisition of an asset in the hope that it will maintain or
increase its value. In investment management – in choosing a portfolio – one has to
decide what, how much and when to invest. To do this, a company must:

• Identify relevant objectives and constraints: institution or individual goals, time


horizon, risk aversion and tax considerations;
• Identify the appropriate strategy: active v. passive – hedging strategy
• Measure the portfolio performance

Financial management is duplicate with the financial function of the Accounting


profession. However, financial accounting is more concerned with the reporting of
historical financial information, while the financial decision is directed toward the
future of the firm.

Financial management is a part and partial of the organization function and has a
responsibility of careful planning, successful utilization and optimal allotment of the
company’s financial resources.

Financial department at Shimoga trailers

Financial department of Shimoga trailers has a well structured approach to raise


funds and has got a systematically designed system for undertaking projects and
investments which prove to be profitable ventures for the continued progress of the
company in order to go forward with its normal and smooth functioning without facing
the problem of insolvency and bankruptancy.

Finance and Account Mission Statement

 We are dedicated towards embedding a higher degree of interpersonal


connectivity among the departmental members and with the employees of the
organization.

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 We commit ourselves for creation of valve for the enterprise through financial
resources.

 We firmly believe in the concept of synergy in all our financial operations.

 We strive for a farsighted proactive approach in safeguarding the financial


status of the company.

Activities of the finance department at Shimoga trailers.

• Financial analysis, planning and control.

• Management of the firm’s asset structure.

• Management of the firm’s financial structure.

Financial analysis, Planning and Control are concerned with:

 Assessing the financial performance and condition of the company.

 Estimating the financial needs of the firm.

 Forecasting and planning the financial future of the firm.

Shimoga trailers borrow funds from “Canara Bank”, they are providing salary,
PF, ESI and so on it is managed by the finance department. They are
managing the Cash management financial accounting, Cost accounting and
Tax accounting.

Finally Shimoga trailers has well maintained accounts department, which as


got a reliable quality database comprising all the documents relating to the
financial departments as a whole

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Financial Highlights 2007-08 2006-07

(Rs. In lakh’s) (Rs. In lakh’s)

Sales and other income 160.99 172.58

Profit before interest and Depreciation and tax 7.09 6.50

Depreciation 1.02 1.15

Interest 4.16 4.15

Profit before tax 1.91 1.20

Tax expenses 0.12 0.11

Provision for taxation 0.75 0.42

Profit and tax 1.29 0.89

Operation

The company as achieved a turnover of Rs. 160.99 lakh as compared to last years
Rs. 172.58 lakh resulted in a profit of Rs. 7.09 “Lakh before Depreciation an
Interest”.

Significant accounting policies followed in the compilation of account

Basis of preparation of financial statements

The financial statements are prepared under historical cost convention in


accordance with generally accepted accounting principles and comply with the
mandatory accounting standards issued by the “Institute Of Charted accountant of
India” and the provisions of the companies Act 1956, All income and expenditure
having a material bearing on the financial statements have been accounted on
accrual basis.

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Revenue Recognition

The company as a policy of accounting the sale of goods at the time of dispatch of
goods along with the invoice to the customer .The sales turnover is accounted net of
VAT tax. All revenues recognized based only when the consideration can be
reasonably measured, when there is reasonable certainty of its recovery and when
the right to receive arises.

Fixed assets

Fixed assets are valued at cost. Cost comprises of the purchase price and
construction cost including and attributable cost to bring the assets to its working
condition for its intended use.

Depreciation

Depreciation as been provided on written down value method in accordance with the
provisions of section 205(2) (B) of the Companies Act 1956.

Valuation of stock

Stock of raw materials, finished goods, work in progress is valued at cost or net
realizable value which ever less is. Valuation is done based on FIFO method.
Damaged, unserviceable and inert stocks are suitably depreciated.

Cost of finished goods and work-in-progress includes the cost of raw materials,
packing materials, an appropriate share of fixed and variable production overheads,
excise duty as applicable and other cost incurred on bringing the inventories to their
present location and condition. Fixed production overheads are allocated on the
basis of normal capacity of production facilities.

Investment subsidy

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Out of subsidy received from the Government towards fixed assets and buildings has
been credited to profit and loss account, in the proportion in which depreciation
charged on those fixed assets as per A S-12

Investment

No investments are held.

Borrowing cost

Borrowing cost, which is directly related to the acquisition, construction or production


of qualifying assets are capitalized. However during the year there were no
borrowing cost attributable to qualifying assets and hence no capitalization.

Employees retirement benefit

The company regularly benefiting contributing towards provident fund schemes of


central government, employees state insurance scheme for all employees.

Accounting tax expenses

The company recognizes deffered tax arising an account of timing differences,


being the difference between the taxable income and accounting income. As per the
end of the year the company towards difference between written down value of
assets as per books and income tax has provided Rs.55,781/- as against
Rs.69,133/-as at the end of the previous year.

Contingencies and events occurring after the balance sheet

There are no such events needs adjustment to assets and liabilities which require
disclosure.

Prior period items

There are no prior period items, debited or credited to profit and loss account of the
year except ESI of Rs.1,18,343/- paid during the year related to earlier years.

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Provisions for contingent liabilities and contingent assets

There is no contingent liability or contingent assets as at the end of the year ending
on 31.03.2008 and therefore no provisions made for them.

Earnings per share

The earnings per share for the year ending on31.03.2008 is Rs.16.97.

Graph showing sales

Sales 2008-09 without 4%


VAT
Apr-08 8,70,223
May-08 7,45,115
Jun-08 4,73,720
Jul-08 1,73,965
Aug-08 4,31,998
Sep-08 11,09,162
Oct-08 21,11,123
Nov-08 12,55,121
Dec-08 27,67,647
Jan-09 25,83,211
Feb-09 22,75,313
Mar-09 59,79,200

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Sales 2008-09
Apr-08 9,05,032
May-08 7,74,920
Jun-08 4,92,669
Jul-08 1,80,294
Aug-08 44,92,78
Sep-08 11,53,528
Oct-08 21,95,568
Nov-08 13,05,326
Dec-08 28,78,353
Jan-09 26,86,539
Feb-09 23,66,326
Mar-09 62,18,368

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Purchase 2008-09 without


4% VAT
Apr-08 3,67,017
May-08 2,60,559
Jun-08 7,06,470
Jul-08 2,67,423
Aug-08 6,44,552
Sep-08 6,46,031
Oct-08 5,21,026
Nov-08 6,42,739
Dec-08 4,92,044

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Jan-09 7,14,042
Feb-09 15,61,059
Mar-09 21,64,863

Purchase 2008-09 with 4%


VAT
Apr-08 3,81,698
May-08 2,70,981
Jun-08 7,34,729
Jul-08 2,78,120
Aug-08 6,70,334
Sep-08 6,71,872
Oct-08 5,41,867
Nov-08 6,68,449
Dec-08 5,11,726
Jan-09 7,42,604
Feb-09 16,23,501

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Mar-09 22,51,458

SWOT Analysis
STRENGTH WEAKNESS

• Strong brand name • Less Brand Awareness- we cant


• Being quality oriented rather than differentiate there agricultural equipments
quantity oriented with other one because they don’t have
• Large product width & line (product mix) there trademark which can differentiate
• No strong competitors with others
• large distribution channel • Because of small scale industry they
• Reasonable price don’t have design labs. Depended on
• Effective employee other agencies for design.
• Economies of scale due to optimum • They don’t have Research and
capacity utilization development wings.
• Strong financial positions • Space constraints- for more
expansion there is no space for
 Zero percent rejection
further expansion

OPPURTUNITIES THREATS
• A burgeoning work force and growing • Entry of new players with newer and
middle class population better technologies in the hydraulic
• High growth potential of sales trailers and agricultural equipments.
booming because of areca farms, • So many close competitors like Ape
building construction works, real Piaggio, Mahindra, Eicher and TATA’s
estate in the city and neighboring new versions of 407, Chota hati, Canter
areas. which can replace tractor and tipper
• Indian customers are mainly value trailers. They are providing with a better
buyers demanding a better overall service and installment loan facilities.
package. Shimoga trailers are poised
in a better position than other players • Pollution control norms laid down by
in the market to capitalize on this the government are getting more
opportunity. stringent which may affect production
section in future.

• Cheap and skilled labor also acts as • The industry heavily relies energy
resources like electricity etc. these
an opportunity to the company for resources may put pressure on
producing quality goods economically economics of products.
and efficiently.
• Absence of competitors in
• Rising cost of raw materials could
affect marketing advantage that the
surrounding districts and vast
company possesses now.
agricultural regions like Marcera
which is a land of coffee. There also
they can capture the market

• Existence of tractor dealership (for


Tafe Massey Ferguson) is a huge

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advantage for them by which they


can market there trailer and vice
versa to the both customers.

Findings,Suggestions &
Conclusion
An organizational study of Shimoga trailers & implements Pvt Ltd, as internship
training during the MBA course of Bangalore university has really enabled me to
understand the organizational structure of the corporate world to an extent, the ways
& means how it function. Shimoga trailers is one of the leading industries in the
manufacturing of trailers and Agricultural implements for tractors and tippers, it was
found during the study that it is indeed a healthy organization with a lot of well unique
functions, the industry basically being an engineering industry has a large investment
& a good number of people working in it, there is a well established organizational
structure with the top level management, the middle level management and the
bottom level.

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Being a small industry, the department is so well differentiated managed by different


manager, although there are many departments it is functioning very well and active.

Shimoga trailers has introduced good labor welfare facilities which care the needs of
workers and consequently increases the love and affiliation of the workers toward
the organization, the company has well established and functioning transportation
facilities. ESI schemes, PF scheme for the workers which increase their productivity
and over all profit of the company.

The production department is well furnished with all the necessary requirements and
there is well functioning tool rooms which care to the needs of the production
function, there is also effective waste management and scrap management functions
carried out to the utmost profit of the company.

There is a well maintained attendance register and the workers are aware of the
importance of efficient work. There is formal and official way of absenting from work
even for an hour, which help their employers to have there leave.

Another important factor is the Shimoga trailers has clearly understood the need of
changing according to the time and the need of effective productivity, there is the
total quality management at work and check the quality.

The production department joining hands with the training department makes it
possible to enforce the required changes for the purpose of improved and efficient
production, reduction of cost and increased customer and employee satisfaction.

The training in Shimoga trailers has enabled the trainee to understand the various
needs of an organization, how an organization of a corporate nature functions and
how important it is to have a right relationship b/w the employee and employer or the
management, the aim of every company is increased productivity.

In the company’s system of materials manager there are very less chances of
damaged goods and scrap items being raised. The company takes necessary steps
to see that no items become scrap in the store and damaged goods doesn’t come in
and go out of the company, still there are chance of damaged goods coming in both

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raw materials and in finished goods mostly because of transportation defect from
agents.

Bibliography
 MARKETING MANAGEMENT

-by Philip Kotler.

 FINANCIAL MANAGEMENT THEORY AND PRACTISES

-by Prasanna Chandra.

 HUMAN RESORCE MANAGEMENT

-by K Ashwathappa

 RESARCH METHODOLOGY

-by Kothari

 SEARCH ENGINES AND WEBSITES

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www.google.com

www.scribd.com

 12th annual report “Shimoga Trailers and Impliments.Pvt.Ltd

 Report on “Organisational Study at Perfect Alloys and Components.Pvt.Ltd”.

 Report on” Organisational Study at J K Tyres”

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