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 agricultural implements such as  Cultivators  M B plow
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for the

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

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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, oneto-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 segment analysis

Industry analysis

Competition analysis

Demand Condition s

Trade analysis

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. II.

Demand analysis: is the core aspect of market opportunity. Segmentation analysis: is the process of dividing the market into homogeneous sub units. Industry analysis:

III.

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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 the Buyers: High

Bargaining Power the Suppliers: High

of

The OEMs have total
control over prices. In fact, the OEMs faced with declining profitability have also reduced the number of component suppliers to make the supply chain more efficient.

Inter Firm Rivalry: Low
The trailer industry in Malnad region is fairly less, with the 80% of the total trailers and implements seen in the region of Malnad is of Shimoga trailers

The automobile industry consumes nearly 20-30% of the iron produced in the country. The price of iron is controlled by Steel Authority of India and the prices of iron have registered a significant increase in recent times.

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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

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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 the Buyers: High

Bargaining Power the Suppliers: High

of

The OEMs have total
control over prices. In fact, the OEMs faced with declining profitability have also reduced the number of component suppliers to make the supply chain more efficient.

Inter Firm Rivalry: Low
The trailer industry in Malnad region is fairly less, with the 80% of the total trailers and implements seen in the region of Malnad is of Shimoga trailers

The automobile industry consumes nearly 20-30% of the iron produced in the country. The price of iron is controlled by Steel Authority of India and the prices of iron have registered a 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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

 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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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

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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-08

11,09,162 21,11,123 12,55,121 27,67,647 25,83,211 22,75,313 59,79,200

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

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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

Mar-09

62,18,368

Finance

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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

 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 (Rs. In lakh’s)

2006-07 (Rs. In lakh’s) 172.58 6.50 1.15 4.15 1.20 0.11 0.42 0.89

Sales and other income Profit before interest and Depreciation and tax Depreciation Interest Profit before tax Tax expenses Provision for taxation Profit and tax Operation

160.99 7.09 1.02 4.16 1.91 0.12 0.75 1.29

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. 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 7.09 “Lakh before Depreciation an

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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

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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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

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Purchase 2008-09 without 4% VAT Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 3,67,017 2,60,559 7,06,470 2,67,423 6,44,552 6,46,031 5,21,026 6,42,739 4,92,044

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Jan-09 Feb-09 Mar-09

7,14,042 15,61,059 21,64,863

Purchase 2008-09 with 4% VAT Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09
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3,81,698 2,70,981 7,34,729 2,78,120 6,70,334 6,71,872 5,41,867 6,68,449 5,11,726 7,42,604 16,23,501 56

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Mar-09

22,51,458

SWOT Analysis
STRENGTH
• • • • • • • • •  Strong brand name Being quality oriented rather than quantity oriented Large product width & line (product mix) No strong competitors large distribution channel Reasonable price Effective employee Economies of scale due to optimum capacity utilization Strong financial positions Zero percent rejection

WEAKNESS
• Less Brand Awareness- we cant differentiate there agricultural equipments with other one because they don’t have there trademark which can differentiate with others Because of small scale industry they don’t have design labs. Depended on other agencies for design. They don’t have development wings. Research and

• •

Space constraintsfor more expansion there is no space for further expansion

OPPURTUNITIES
• • A burgeoning work force and growing middle class population High growth potential of sales booming because of areca farms, building construction works, real estate in the city and neighboring areas. Indian customers are mainly value buyers demanding a better overall package. Shimoga trailers are poised in a better position than other players in the market to capitalize on this opportunity.

THREATS • Entry of new players with newer and
better technologies in the hydraulic trailers and agricultural equipments.

• So many close competitors like Ape
Piaggio, Mahindra, Eicher and TATA’s new versions of 407, Chota hati, Canter which can replace tractor and tipper trailers. They are providing with a better service and installment loan facilities.

• Pollution control norms laid down by
the government are getting more 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 resources may put pressure on economics of products.

an opportunity to the company for producing quality goods economically and efficiently. Absence of competitors in surrounding districts and vast agricultural regions like Marcera which is a land of coffee. There also they can capture the market of tractor dealership (for Tafe Massey Ferguson) is a huge

• Rising cost of raw materials could
affect marketing advantage company possesses now. that

the

• Existence

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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 56

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Organizational study- Shimoga Trailers and Impliments.Pvt.Ltd-Shimoga

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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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