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Acknowledgesment

This trifle project of mine would have been a “Zyogate”, if it did not achieved the support, cooperation and blessings of few people. It was indeed a great experience and opportunity for me to do my internship at HDFC Commercial Transportation Group. Without the proper guidance, I would not have been able to complete the project. First of all my humble thanks to Mr. Abhishek Sharma, Relationship Manager, Commercial Transportation Group for having full belief and faith in me and giving me an opportunity to do my internship in this esteemed organization. I am immensely grateful to him for giving me exposure far beyond my expectation. Without his gracious and genial support I would not have been able to materialize the project. I am also grateful to Mr. Chetan Chaddha, Mr. Kanwarjit Singh & Mr. Arun Kumar of Commercial Transportation Group, who were there with me throughout my training period, helping me at each step, welcoming my queries, and also did a lot of value addition to my training not only in my project but also apart from it, in spite of their busy schedule. Further more, I am indebted to Mrs Kriti Swaroop the faculty of Institute of Management Studies for her guidance & support. Last, but not least I owe a deep sense of gratitude to all the employees of HDFC Commercial Transportation Group who were cooperative and kind enough to spare their precious time for me in understanding the banking in transportation area, without which I could not have completed the project. My best wishes to all the people of this venerated organization that has been able to create such a healthy environment for people to be content with their work.

(Avinash Kumar Maurya)

Undertaking
I, Avinash Kumar Maurya, the undersigned, hereby declare that this project report entitled “Commercial Transportation Working Analysis”, has been written & submitted under the guidance of Mr. Abhishek Sharma and is my original work. The empirical findings in this report are based on information collected by me.

(Avinash Kumar Maurya)

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

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Contents
Chapter
Introduction

Pages
07

1. Organizational Profile
1.1 Background & Objectives 1.2 Promoter & Management 1.3 Capital Structure 1.4 Distribution Network 1.5 Technology 1.6 Business Profile 1.7 Rating 1.8 Product Range 1.9 Innovative Services 1.10 Loans 1.11 Awards & Accolades 1.12 Branch – Internal Divisions

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10 11 12 12 13 14 16 17 18 19 21 23

2. Theoretical Perspective
2.1 Commercial Vehicles 2.2 Working Capital & Credit Norms 2.3 Some Useful Terms

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29 31 3

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

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Annexure 6.3 Limitations 5.1 64 65 67 6.2 Suggestions & Recommendations 5.3.1 Objectives 3.2 Marketing Research Process 3.1 Questionnaire 68 6.4 Sampling 3. Recommendations & Limitations Conclusions 5.2 Charts & Comments 47 48 50 5.2 Bibliography 70 Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.3 Study Description 3. Data Analysis and Interpretation 4. Research Methodology 3. 4 .1 Data Representation 4. Conclusion.5 Contact Methods 35 36 37 38 41 43 4.

the term deals with all kinds or modes of transportation. and most importantly service sector & information technology. plastic. coal. Commercial Transportation Working Analysis is the study of working methodology of Transporters. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. This report is conducted in such a way that all the findings. The purpose is to find out the market share and impact of HDFC in Working Capital Market in Transport Sector. Some of those are iron. Maintenance etc. Diesel Buy basis & Oil Co. which are commercially available to transport various kinds of items from one place to another. petroleum. Each of these has some relevance in one or the other sense. how they operate their functions. data & interpretation should be useful for any kind of reader. Payments made for Insurance. & Newspaper read by them. The beginning includes the brief Organization Profile followed by Research Methodology and finally with Data Analysis & Interpretation with Conclusions. Tyres purchased. whether it belongs to any Tyres’ Company. The main considerations in the survey include the Fleet Size. 5 . rubber. Oil Company and so on. Permits. Suggestions and Bibliography.Introduction Commercial Transportation. preferred. Road transportation is very much famous to make the various goods & items available in small to small area of living. Overdraft Facility availed by Transporters. There are various kind of industries associated with this field. mechanical. their working regions etc. Indian scenario in this area of development is popular from a very long period even before independence. Major Financiers. as the name suggests.

there is sufficient increase in financing for Transporters in past few years and it will definitely go beyond on large scale for the benefits of Transporters. how to do. With these charts. sampling. to make this survey useful in every sense. procedure of doing whole survey. 6 . which stresses on the objectives. when to do. suggestions & recommendations given by the transporters as well as on the basis of analysis are presented to help the reader in reaching at some conclusions & help in answering what to do. Ghaziabad & Faridabad.The survey for analysis is conducted in whole National Capital Region mainly includes Delhi. In the end. methods etc. Whatever the data has been collected from the survey. there is welldefined space for their suggestions & recommendations. From the viewpoint of banking business in field of Commercial Transportation. and where to do for the welfare of whole society and especially in the field of transportation. few comments on every chart are also presented to make a chart more understandable even to a layman. As far as customers’ or transporters’ point of view is concerned. is represented in form of tables as well as charts are also used to show the composition of various elements in particular area or field. instruments. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. The most important part of report is of Research Methodology. and limitations is well-defined & presented that how the whole work has been completed using various research techniques. which are welcomed & entertained up to some extent if possible.

5 1.8 1.9 1.3 1.1 1.7 1.2 1. 7 .Chapter 1 1.6 1.4 1.11 1.12 Background & Objectives Promoter & Management Capital Structure Distribution Network Technology Business Profile Rating Product Range Innovative Services Loans Awards & Accolades Branch – Internal Divisions Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.10 1.

with its registered office in Mumbai. HDFC Bank's mission is to be a World-Class Indian Bank. professional integrity and regulatory compliance. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. India.1. The bank is committed to maintain the highest level of ethical standards. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. consistent with the bank's risk appetite. as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The Bank's aim is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services in the segments that the bank operates in and to achieve healthy growth in profitability. Customer Focus. Product Leadership and People. HDFC Bank's business philosophy is based on four core values: Operational Excellence. 8 .1 Background & Objectives The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

administration. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry. Since its inception in 1977. Mr. Capoor was a Deputy Governor of the Reserve Bank of India. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities.1. industry and commercial banking. a strong market reputation. Mr. Aditya Puri. the Corporation has maintained a consistent and healthy growth in its operations to remain a market leader in mortgages. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy. large shareholder base and unique consumer franchise. has been a professional banker for over 25 years and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. Senior executives representing HDFC are also on the Board. Prior to this. Its outstanding loan portfolio covers well over a million dwelling units. The Managing Director.2 Promoter & Management HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. HDFC was ideally positioned to promote a bank in the Indian environment. Mr. With its experience in the financial markets. Jagdish Capoor took over as the bank's Chairman in July 2001. 9 . Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. the Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

Mauritius (IPEF) and Indocean Financial Holdings Ltd.2 billion).bank believes that its people are a significant competitive strength.28.3 Capital Structure The authorized capital of HDFC Bank is Rs. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. 1. Being a clearing/settlement bank to various leading stock exchanges. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.45 billion). The Indian Private Equity Fund.5% of the equity is held by FIIs.4 Distribution Network HDFC Bank is headquartered in Mumbai.450 crore (Rs.2% of the bank's equity while about 13. NRIs/OCBs while the balance is widely held by about 214. Customers in 90 locations are also serviced through Phone-Banking.1% of the equity is held by the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue).000 shareholders. 10 . The HDFC Group holds 24. Mauritius (IFHL) (both funds advised by J P Morgan Partners. the Bank has branches in the centers where the NSE/BSE has a strong and active member base. Mumbai and the National Stock Exchange.. formerly Chase Capital Partners) together holds about 5. Roughly 27. The shares are listed on The Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol "HDB". 1.5% of the bank's equity. The paid-up capital is Rs. All branches are linked on an online real-time basis. The Bank at present has an enviable network of over 350 branches spread over 175 cities across the country.282 crore (Rs.

1. the Corporate Banking business is supported by Flexcube. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. expertise and technology to create a competitive advantage and build market share. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facilities to its customers. 11 . while the Retail Banking business by Finware. The Bank has made substantial efforts and investments in acquiring the best technology available internationally to build the infrastructure for a world-class bank. In each of its businesses.5 Technology HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. both from i-flex Solutions Ltd. Visa Electron/Maestro. scaleable and web-enabled. The systems are open. Moreover. Plus/Cirrus and American Express Credit/Charge cardholders.The Bank also has a network of over 900 networked ATMs across these cities. The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In terms of software. HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard. the Bank has succeeded in leveraging its market position.

mutual funds.6 Business Profile HDFC Bank caters to a wide range of banking services covering both commercial and investment banking on the wholesale side and transactional / branch banking on the retail side. transactional services. The bank is also a leading provider of structured solutions which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers. etc. the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals. stock exchange members and banks. emerging mid-sized corporates. 12 . including working capital finance. trade services.1. cash management.  Retail Banking Services – The objective of the Retail Bank is to provide its target market customers a full range of financial products Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. For these corporates. Based on its superior product delivery / service levels and strong customer orientation. blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent. companies from the domestic business houses and prime Public Sector companies. the Bank provides a wide range of commercial and transactional banking services. The bank has three key business areas : Wholesale Banking Services – The Bank's target market is primarily large.

The HDFC Bank preferred program for high net worth individuals. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment. With the liberalization of the financial markets in India. etc. the bank has three main product areas . Personal Loans and Loans for Two-wheelers.and banking services. in India and overseas.  Treasury Operations – Within this business. the bank is required to hold 25% of its deposits Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Loans. Bill Payments. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. advice and product structures. Phone-Banking. The Bank also has a wide array of retail loan products including Auto Loans. information and advice on various investment avenues. It is also a leading provider of Depository Services to retail customers. These and fine pricing on various treasury products are provided through the bank's Treasury team.Foreign Exchange and Derivatives. the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions. To comply with statutory reserve requirements. 13 . The Bank launched its credit card in association with VISA in November 2001. and Equities. The Bank is well positioned as a leader in various net-based B2C opportunities including a wide range of internet banking services for Fixed Deposits. corporates need more sophisticated risk management information. Net-Banking and Mobile-Banking. The products are backed by worldclass service and delivered to the customers through the growing branch network. offering customers the facility to hold their investments in electronic form. The Bank is also one of the leading players in the "merchant acquiring" business with over 25. Local Currency Money Market & Debt Securities. Loans against marketable securities.000 Point-of-Sale (POS) terminals for debit / credit cards acceptance at merchant establishments. giving the customer a one-stop window for all his/her banking requirements. as well as through alternative delivery channels like ATMs.

Ltd. (100% subsidiary of Fitch Inc.) has assigned the "tAAA (ind)" rating to the Bank's deposit programme.7 Rating HDFC Bank has its deposit programs rated by two rating agencies Credit Analysis & Research Limited (CARE) and Fitch Ratings India Pvt. 1. Ltd. Corporate Governance Rating The bank was one of the first four companies which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency.in government securities. The Bank's Fixed Deposit program has been rated 'CARE AAA (FD)' [Triple A] by CARE. with the outlook on the rating as "stable". has assigned the rating "AAA (ind)" with the outlook on the rating as "stable". 14 . The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity’s current performance and an expectation on its "balanced value creation and corporate governance practices" in future. subordinated (Tier-II) Bonds rated by CARE and Fitch Ratings India Pvt. the ratings awarded were the highest assigned by the rating agency for those instruments. Ltd. CARE has assigned the rating of "CARE AAA" for the Tier-II Bonds while Fitch Ratings India Pvt. CARE has also rated the Bank's Certificate of Deposit (CD) programme "PR 1+" which represents "superior capacity for repayment of short term promissory obligations". which represents instruments considered to be "of the best quality. Fitch Ratings India Pvt. This rating indicates "highest credit quality" where "protection factors are very high". HDFC Bank also has its long-term unsecured. The bank has been assigned a ‘CRISIL GVC Level 1' rating which indicates that the bank's capability with Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. In each case referred to above. Ltd. carrying negligible investment risk". The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

You can also avail of cheque clearing between the four metros. enhanced ATM withdrawal limit.  Sweep-In Account: A fixed deposit linked to your Savings Account. 50 lakh per month at no extra charge. PhoneBanking.respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest. you can issue a cheque (or use your ATM Card). among others.8 Product Range  Savings Account: Apart from the usual facilities.  Super Saver Account: Gives you an overdraft facility up to 75% of your Fixed Deposit. a Current Account and then some more. You can transfer up to Rs. priority locker allotment. even if your Savings Account runs a bit short. So. Debit Card and MobileBanking. Interbranch banking. between the four metros. you can access your funds while your Fixed Deposit continues to earn high interest.  HDFC Bank Preferred: A preferential Savings Account where you are assigned a dedicated Relationship Manager. free Demat Account and lower interest rates on loans. In an emergency. who is your onepoint contact. You also get privileges like fee waivers. you get a free ATM Card. 15 . BillPay. The money is automatically swept in from your fixed deposit into your Savings Account. to name a few. NetBanking. get cash delivery/pickup upto Rs. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.  HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have HDFC Bank Plus. 1.

You can also view your Demat Account through Net-Banking.9 Innovative Services  PhoneBanking: 24-hour automated banking services with 39 PhoneBanking numbers available. phone or mobile phone. you can also  Inter-city/Inter-branch Banking: Access your account from any of our 350 branches in 175 cities. No more standing in long queues or writing cheques. Use SMS technology to conduct your banking transactions from your cell-phone.  ATM 24-hour banking: Apart from routine transactions. pay your utility bills and transfer funds. 1.  Bill-Pay: Pay your telephone. at your own convenience. electricity and mobile-phone bills through our ATMs.000/-. You can also access your Demat Account on the Internet. and pay in Rupees.  International Debit Card: An ATM card you can shop with all over the country and in over 140 countries with.  Net-Banking: Access your bank account from anywhere in the world. at anytime. etc. outstation cheque clearance facility. home delivery of Demand Drafts. You can spend in any currency. at any of our ATMs across the country all year round. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.25. 16 . at-par cheques. Internet.  Demat Account: Conduct hassle-free transactions on your shares.  Mobile-Banking: Access your account on your mobile phone screen at no airtime cost.

1.  Commercial Vehicle Loans: HDFC offers loan for all types of commercial vehicle. 10 lakh at an attractive interest rate against physical shares. Volvo etc.  New Car Loans and Used Car Loans: Finance up to 90% of the cost of a car. We provide funding for all models of Telco. 3 lakh for a wedding. our loans come to you in easy-to-pay monthly instalments. purchase of a computer or an exciting holiday. up to 50% of the market value of your shares. till Rs. 17 . at a higher rate can avail of HDFC’s Balance Transfer facility by exchange their old loan for a commercial vehicle loan from HDFC Bank at a much lower rate. education.  Personal Loans: Take a loan of up to Rs.10 Loans Now. you can get loans against Shares of up to 65% of the market value of your shares. HDFC spread over 22 locations across the country and expanding rapidly. If anybody have already taken a loan from elsewhere. new or used! And the loans come to you with easy documentation and speedy processing at attractive interest rates. Swaraj Mazda. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Ashok Leyland. 20 lakh.  Loans against Shares: Get an overdraft up to Rs. and are available with easy documentation and quick delivery. In case of Demat Shares. Eicher.

inter-branch banking and much more. Savings Scheme. foreign exchange demand drafts. accepted worldwide from a world-class bank.  Insurance: HDFC Bank now brings you Life Insurance and Pension Solutions like Risk Cover Scheme. backed by unmatched features and world-class service. you can transfer that balance to this card at a lower interest rate. travellers cheques. Ltd. monthly account statements. to meet your travel needs. Children’s Plan and Personal Plan from HDFC Standard Life Insurance Co. If you have outstanding balance on your other credit card.  Mutual Funds: Apart from a wide choice of mutual funds to suit your individual needs. Gold. loss and theft. You can also access your demat account on the internet.  Forex Facilities: Avail of foreign currency. Two Wheeler & Consumer Loans: To help you buy the best durables for your home.  International Credit Card: Get an option of Silver.  Current Account: Get a personalised cheque book. by maintaining your shares in electronic form.  NRI Services: A comprehensive range. you benefit from expert advice on choosing the right funds based on in-depth market analysis. or Health Plus Credit card.  Demat Account: Protect your shares from damage. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 18 . ensures NRIs all the banking support they need.

Forbes Global again named us in its ranking of " Best Under a Billion. HDFC Bank realized that only a single-minded focus on product quality and service excellence would help us get there.  HDFC Bank has been named Best Domestic Bank in India Region in The Asset Triple A Country Awards 2003.  Hong Kong-based Finance Asia Magazine rated us "Best Domestic Commercial Bank in India" in 1999. 19 .  NASSCOM and economictimes.  In 2003. HDFC Bank is proud to say that it is well on its way towards that goal.  Leading Personal Finance magazine in India Outlook Money named HDFC Bank the "Best Bank in the Private Sector" for the year 2003. HDFC Bank was named "Best Overall Local/Domestic Bank – India" in the Corporate Cash Management Poll conducted by the Hong Kong-based Asiamoney magazine.com have named us the " Best IT User in Banking" at the IT Users Awards 2003. It is extremely gratifying that our efforts towards providing customer convenience have been recognized both nationally and internationally.  In 2004. 2000 and 2001 respectively and "Best Local Bank in India" in 2002 and 2003.1. Today.11 Awards & Accolades HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 200 Best Small Companies for 2003".  Leading Indian business Magazine Business Today in a survey rated us "Best Private Sector Bank" in India in 1999 and " Best Bank in India" in 2003.

 The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01. There have been some other proud moments as well:  London-based Euromoney Magazine gave us the award for "Best Bank . USA. never-ending journey of providing excellent service to our Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. and "Best Bank in India" in 2001 and 2002.  For our use of information technology we have been recognized as a "Computerworld Honors Laureate" and awarded the 21st Century Achievement Award in 2002 for Finance.India" in 1999. Our technology initiative has been included as a case study in their online global archives. Leading business newspaper The Financial Express named HDFC Bank the "Best New Private Sector Bank 2003" in the FE-Ernst & Young Best Banks Survey 2003. Insurance & Real Estate category by Computerworld. 20 ..  The Economic Times has conferred on us The Economic Times Awards for Corporate Excellence as the Emerging Company of the Year 2000-01. "Best Domestic Bank" in India in 2000. Inc.  Asiamoney Magazine has named us "Best Commercial Bank in India 2002".  We are aware that all these awards are mere milestones in the continuing.  Leading Indian business magazine Business India named us "India's Best Bank" in 2000  In the year 2000. leading financial magazine Forbes Global named us in its list of "The 300 Best Small Companies" in the world and as one of the "20 for 2001" best small companies in the world.

Delhi. The rest three i. Gurgaon-122001 has mainly seven divisions under Retail Asset Head. 21 . Channel Business. 2nd Floor. however. SCO-15.12 Branch – Internal Divisions The Commercial Transportation Group functioning in Gurgaon Branch located at HDFC Bank Ltd. Sector 14. & even Bhilai. Noida. Credits.customers.e. Gurgaon. Collections. Credits. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.e. This group’s main area of concentration is National Capital Region i. We are confident. that with your feedback and support. & Working Capital is same. The Organizational Structure of four divisions Commercial Vehicles. Channel Business. These are Commercial Vehicles. Collections & Operations have the same Organization Structure in respect of the levels with only difference is in the name of designations. Faridabad. Working Capital. and Operations. we will be able to maintain and improve our services 1. Construction Equipment. Construction Equipment. Ghaziabad.

Retail Asset Head Commercial Vehicles Capital Channel Business Construction Working Equipment Business H e Country H e Regional M a Business H e Country H e Regional M a Business H e Country H e Regional M a Business H e Country H e Regional M a Relationship M a 22 Relationship Relationship Relationship M M M a a a Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. .

Fig – Organization Chart (4 Divisions)

Commercial Vehicles Division – This is the internal division of Business under the Commercial Transportation Group. Its main concern is with the financing of Commercial Vehicles for transporters & Fleet Owners. There are various categories of customers, which are classified for the purpose of financing on the basis of number of vehicles owned by them, their financial background etc. After collecting all the details, these have to be forwarded to Credits Department, to check, verify the details. Channel Business – This is an another internal division of Business under the Commercial Transportation Group, which provides the loans to needy customers for purchasing the Commercial Vehicles used in transportation of goods. Under this division, the work has been done for the customers who owned less than three Vehicles. It is done through various Small Financial Divisions spread over the region, who treat or called as Channel Partners. The job of Channel Partners are sourcing where Channel Partners have to identify the needy borrowers and convince them to get their vehicles financed from HDFC, Post Disbursements Documents, in which Channel Partners have to collect, check, verify, and send the various documents/papers, which are required, by the bank for the approval of loans, and lastly is Equated Monthly Installment, where Channel Partners have to collect the EMIs from the clients on which the commission is governed by the bank. Construction Equipment – This is the third internal division of Business under the Commercial Transportation Group. This department deals with the financing of all kinds of Equipment, used in construction of roads,
Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 23

buildings, flyovers, mines etc. like RT-20, GE-404, cranes, road rollers etc. These are the movable property, costly & that’s why a huge importance is given while financing of such vehicles. Working Capital – Under this fourth internal division of Business in the Commercial Transportation Group, the facility of credit or Overdraft Facility is provided by bank to the needy customers. An account is open in the bank with zero balance & credit limit is ranging from 20 to 200Lacs. This range is wholly divided among various categories A, B, & C on the basis of their financial capacity & fleet size, etc.

Retail Asset Head
Credits Collections Operations

Risk Head Country Head Regional Credits Man Local Credits Man ager

Risk Head Country Head Regional Collections Manage Local Collections Manage r

Risk Head Country Head Regional Operations Manage Local Operations Manage r

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

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Fig – Organization Chart (3 Divisions)

Credits – This is a department directly under Commercial Transportation Group. This department has to look after all the four divisions of Business. There are various Credit Managers, who look after the four Business Internal Divisions separately. Here, the jobs of these managers are to check, verify & then finally give decision of acceptance or rejection of the party’s proposal. And then the other formalities will be done. Local Credits Manager has to report to Regional Credits Manager, who as to report to Country Head, who as to report to Risk Head, who finally has to report to top boss i.e. Retail Asset Head. Collections – This department has to collect all the documents, papers etc. from the parties, whose cases has been approved by Credits Department. In other words, here the job is of disbursements. Local Collections Manager has to report to Regional Collections Manager, who as to report to Country Head, who as to report to Risk Head, who finally has to report to top boss i.e. Retail Asset Head. Operations – This department has to look after all the internal operations of all the four internal divisions of Business Department. Again the various operations managers likewise Credits. Local Operations Manager has to report to Regional Operations Manager, who as to report to Country Head, who as to report to Risk Head, who finally has to report to top boss i.e. Retail Asset Head.
Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 25

The difference between the four above mentioned & three divisions regarding the organization structure is of the heads position under Retail Asset Head. 26 .1 Commercial Transportation 2.3 Some Useful Terms Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Chapter 2 2.2 Working Capital & Credit Norms 2.

2. including vehicles ranging from 1.1 Commercial Transportation Commercial vehicles are defined as those involved in the transportation of goods or the provision of commercial passenger road transport services.and double-decker models Light Commercial Vehicles LCVs comprise by far the largest single sector of the commercial vehicles market and include goods vehicles with a gross weight of up to 3. This is an extremely diverse market. based on weight and end use. However.5 tonnes  Buses and Coaches–single. it is possible to break the market down into three main sectors:  Light Commercial Vehicles (LCVs)–goods-carrying vehicles weighing less than 3. there are three main segments: Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.5-tonne microvans to 44-tonne tractor/trailer combinations. 27 .5 tonnes.5 tonnes  Heavy Goods Vehicles (HGVs)–goods-carrying vehicles weighing in excess of 3. Within this broad sector.

which are over 3.8 tonnes  medium and heavy vans.or Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. which can be either single. with the rest being spread fairly evenly between the other body styles. with a gross weight of between 1. which consist of vehicles with a gross weight of up to 1.8 tonnes and 3.5 tonnes. These two categories can then be further subdivided into single. 28 .5 tonnes and 44 tonnes.5 tonnes to over 15 tonnes. light vans. The market for HGVs can be further broken down into a number of different categories based on weight and axle configuration. from small minibuses to tipper/dump trucks. and those over 9 metres long and either single. Fare-stage PSVs can also be divided into midis.or double-decker.and double-deckers. Box vans account for over a third of all 2-axle registrations. The coaches segment can be further divided into lightweight single-decker and heavyweight coaches. Comprising a range of vehicles from 3. The largest of these segments is that of 2-axle rigids. Heavy Goods Vehicles HGVs can be defined as goods-carrying vehicles with a gross weight of between 3. the bus and coach sector is considered to be one of the most complexes of all the commercial vehicles markets. this segment also includes a diverse range of body styles. up to 9 metres in length and single-decker only. The overall sector for buses and coaches can be split into fare-stage Public Service Vehicles (PSVs) and coaches.5tonnes  4x4 utilities. Buses and Coaches Generally speaking.

The credit norms can be explained as the norms or rules set by the banks to fulfill the demands of customer regarding the working capital.  To meet the cash needs for day to day operations of companies. These are certain assumptions on which the product is offered to Fleet Operators: – Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. which is then transported to another company which fits the bodywork. The main objectives for the Working Capital Business by HDFC are as follows:  To serve the needs of Working Capital for transporters & other such companies. cash requirements etc.double-decker. It is common for one manufacturer to produce the chassis. Basis of the Product There are basically two kinds of products offered by HDFC Bank are of Working Capital & Bank Guarantees by the Working Capital Division. 29 . payments to creditors. 2.2 Working Capital & Credit Norms Working Capital can be defined as the capital need by business to operate the day-to-day operations regarding receivables. An interesting feature of the bus and coach sector is that entire vehicles are seldom manufactured by single companies.

and also the number of qualitative factors and further the customer has been put into A. Rs100lacs for B category. who own more than 50 vehicles  MFO – Medium Fleet Operators. which are Fund Based. There are certain essential securities demanded by the bank against the products offered like Hypothecation of free vehicles to the extent of 75%.  There is a daily need for consumables like fuel. sales. the bank can manage to get back its funds against them. tyres. & Rs20lacs for C category under Funds Based. The maximum overdraft limit offered of Rs200lacs for A category. There are various considerations on which the agreements have been made like the worth. Non Fund Based is not applicable for C category. Categorization of Fleet Operators  LFO – Large Fleet Operators. These kinds of securities are essential on the part of bank as in case of defaulters. B & C category. who own between 10 to 50 vehicles  SRFO – Small Road Fleet Operators. maintenance etc. Bank Guarantee limit of Rs50lacs offered to A. & Non Fund Based.  The credit period for any such contract is usually 2-3 months. Transporters usually ply their vehicles for either fulfilling a transportation contract awarded by the principal or for loads from the market. & Rs25lacs offered to B category. salary. who own less than 10 vehicles Product Details There are mainly two kinds of products offered to the customers.  These terms of contracts and day-to-day need of Categorization of Fleet Operators funds give rise to the need of Working Capital. turnover. In case of Non Fund Based. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. repairs. 30 .

Financials of past few years. there is always a need arises of proofs. banks need details of at least 3 owned vehicles’ details. 2.  MFO – Medium Fleet Operators – This term is used for all those transport operators who owned between 10 to 50 vehicles. In this Working Capital product also. and for these customers. on which the demands of the customer fulfilled by the banks.  LTV – Loan to Value – It is an amount of sum. partnership deed in case of partnership firm. This documentation contains all the copies of papers demanded by the financial institutions or banks. banks demand certain papers like Vehicle List of the customer. they form a complete documentation. which is provided as loan out of the total sum of purchase of any vehicle by the transporters. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. These proofs.3 Some Useful Terms  SRTO – Small Road Transport Operators – This term is used for all those transport operators who owned not more than 10 vehicles.In this wide financial service sector. and for these customers. as well as the complete overview of business of the customer. 31 . when combined. This whole documentation should contain all the details demanded by the bank.  LFO – Large Fleet Operators – This term is used for all those transport operators who owned more than 50 vehicles. banks need details of all the owned vehicles’ details. and for these customers. contracts in hand of customer. papers of assets under security. banks need details of at least 5 owned vehicles’ details. etc.

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. which make them eligible for loans or who are paying the installments well in time but they are less reliable then those who are belong to ETR.  ETR – Excellent Track Record – This term is used for those type of customers who are having excellent record.  FI Report – Field Investigation Report – As in TVR. which make them eligible for even heavy loans or who are paying the installments well in time. which transfers the rights & duties or power of one to another person so that all works done by latter in case of former is absent. which drawn in advance for any future date.  POA – Power of Attorney – It is the procedure or document. 32 . which is given by the person who attend the telephone call made by an executive for the verification of details provided by the customer. These cheques are drawn by customer in favor of banks for the payment of EMIs. CPV – Contact Point Verification – This is the document describing the details find out at the time when contact is made with the customer regarding its vehicles running & other workings. number etc. model.  GTR – Good Track Record – This term is used for those type of customers who are having good record.  TVR – Telephone Verification Report – This report is made & prepared by the employees containing all the details of information. where all the workings of customer are going on.  LOV – List of Vehicles – This is the list containing the details of vehicles running and owned by the customer like their making. this report is made on the basis of analysis of customer by go into the field.  PDC – Post Dated Cheques – These are banker’s cheques.

generated by the customer or transporter for a period & it is equated by adding Depreciation into Net Profit. Chapter 3 Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. which includes principle & interest. 33 .  PDD – Post Disbursement Documents – These documents are preserved separately by the banks after all transactions between the bank & customer have been completed.  EMI – Equated Monthly Installment – This is the sum of amount decided by the banks for the payment of loan by the customer on monthly basis.  CG – Cash Generation – This is an amount. FTU – First Time User – This term is used for those customers who apply for the loan for the first time with the bank.

3 3. 34 .1 Objectives The main objectives are as follows: –  Assessment of Transport Market related to Commercial Vehicle Financing  To know the average capacity of transporter related to Working Capital  To access the Transporters’ Financing Problems  To know HDFC Market Share in the field of Commercial Vehicles Financing & Working Capital in Transporter Sector Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.1 3.2 3.4 3.3.5 Objectives Marketing Research Process Study Description Sampling Contact Methods 3.

” “Marketing Research can be defined as the systematic design.2 Marketing Research Process “Research may be defined as prose word. 35 . & reporting of data & findings relevant to a specific marketing situation facing the company. collection.3. It means analysis of the subject based on borrowed materials with suitable acknowledgement and consultation in the main body of paper.” Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. analysis.

is transformed into one with more precise meaning in exploratory studies. which in fact may necessitate changes in research procedure for gathering relevant data. which is needed because the research problem.3 Study Description The type of research here is “Exploratory Research Design”. The characteristic features of research are as follows: –  Flexible Design Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.Define the Problem Develop the Research Plan Collect the Information Analyze the Information Present the Findings Make the Decision Fig – Marketing Research Process 3. It has inbuilt flexibility. 36 . broadly defined initially. This kind of design is used for more precise investigation or of developing the working hypotheses from an operational point of view.

37 . Primary data are data freshly gathered for a specific purpose or for a specific research project. The cost incurred in collecting primary data is more than secondary data. The secondary data available orally in this research. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.    Non-Probability Sampling Design No pre-planned design for analysis Unstructured instruments for collection of data No fixed decisions about the operational procedures Data Sources The data gathering can be from secondary data. primary data or both. Secondary data are data that are collected for another purpose and already exist somewhere. therefore whole data is collected primarily.

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. In Focus Group. fresh data can be gathered by observing the relevant factors & settings. and satisfaction. Experimental Research is the most significantly valid research among all above. Surveys are best suited for descriptive research. organization or any other marketing entity. beliefs. What is done here? The research approach in this research is followed is of survey. fill questionnaires personally according to answers given by them as most of the transporters feel uncomfortable in filling questionnaires themselves.Research Approaches Primary Data can be collected in five ways: –      Observational Research Focus Group Surveys Behavioral Data Experiments In Observational Research. and customer databases. Behavioral data is collected from the visits to shops. and to measure the magnitudes in the general population. An environment is created to judge the response of respondents in that situation. observer their workings. preferences. a group of 6 to 10 people invited to spend few hours with a skilled moderator to discuss product. Here the movement in to the field of transport areas. meet the fleet owners. service. Companies undertake surveys to learn about people’s knowledge. 38 . catalog purchases. It studies the cause & effect relationships by eliminating competing explanations of observed findings. where the customers come & leave traces of their purchasing behavior in store scanning data.

This technique is useful as the same type of questions asked to all the transporters. It is non-disguised structured questionnaire. graphs etc. What is done here? The Questionnaire is used as research instrument in this research. Because of its flexibility. depth interviews & rorshach tests can probe a buyer’s deeper beliefs & feelings. to check the perception of respondent. 39 . Depth Interview involves the questioning deeply. the questionnaire is by far the most common instrument used to collect primary data. which is used to pull out important information from the secret pockets of transporters because generally transporters refuse to give any kind of information. tested & debugged before they are administered on a large scale.Research Instruments There is a choice of mainly three instruments in collecting primary data: –  Questionnaires  Psychological Tools  Mechanical Devices Questionnaire consists of a set of questions presented to respondents. All kinds of scientific instruments & mechanics used to measure the respondents characteristics. Questionnaires need to be carefully developed. Laddering involves the points set in ascending order. Mechanical Devises are occasionally used in marketing research. Psychological Tools such as laddering techniques. & rorshach involves some kind of pictures representation. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

Sadar Bazar. the sampling plan has to be designed. National Capital Region includes Delhi. Delhi-UP Border. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.4 Sampling Sampling Plan Sampling can be defined as the technique through which an idea can be generated out of whole market by taking just a small part of it. the target market has to be defined that will be sampled. Bata Railway Crossing-FDB. 40 .3. This plan deals with basically three decisions: –  Sampling Unit – Who is to be surveyed?  Sample Size – How many people should be surveyed?  Sampling Procedure – How should the respondents be chosen? Sampling Unit – By the sampling unit. Faridabad. Noida. Tis Hazari. Once the sampling unit has been determined. Okhla Industrial Area. The sampling unit in this research is of transporters providing services for transportation of goods all over India from whole NCR region spread mainly over Sanjay Gandhi Transport Nagar. The sampling process has the following steps: –      Define the population Establish the frame of population Choose method of sampling Determine the sample size Write instructions for identification of sample Under this process. etc. & Gurgaon. a sampling frame must be developed so that everyone in the target population has an equal or known chance of being sampled. Ghaziabad. Punjabi Bagh Transport Center.

Cluster Sampling. the sample size is around 5. one could conclude after the sample is taken that “the interval 5 to 7 trips per year has 95 chances in 100 of containing the true number of trips taken usually by 1st class passengers flying between Chicago & Tokyo. which are mentioned in the Sampling Unit. who run their fleets all over India. a probability sample of the sample should be drawn.5 percent of the target population. Probability Sampling allows the calculation of confidence limits for sampling error. However. Although there are more than 7000 transporters in whole NCR providing services. This group is extracted out of various transport areas. Even non probability samples are useful in many circumstances. the Sample Size is 400. Systematic Sampling. 41 . Probability Sampling is of many types zlike Simple Random Sampling. Stratified Sampling. & Area Sampling etc. In this research of Commercial Transportation.Sample Size – Large Samples give more reliable results than small samples. Thus. The common group here is of Fleet Owners. it is not necessary to sample the entire target population or even a substantial portion to achieve the reliable results. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Sampling Procedure – To obtain a representative sample. The type of sampling in this research is Cluster Sampling under Probability Sampling. even they do not allow sampling error to be measured. Samples of less than 1 percent of a population can often provide a good reliability.

Telephone interviewing is best method for gathering information quickly. This is the economical method as at the same time. Mail Questionnaires require simple & clearly worded questions. such as dress & body language. Personal Interviewing is most versatile method. Online Interview is best suited for educated people or who can answer the questions through Internet. the interviewer is also able to clarify questions if respondents don’t understand them. the decision now is to taken regarding how the subject should be contacted: –     Mail Questionnaire Telephone Personal Online Interview Mail Questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers.3. The interviewer can ask more questions and record additional observations about the respondent.5 Contact Methods Once the sampling plan has been determined. 42 . What is done here? Personal interview method is used to find the data in this research due to following reasons: –      Transporters’ careless behavior towards mails Transporters’ believe ness in face to face interaction Transporters located in large in same area Transporters don’t have to fill questionnaires by self Transporters personally give more suggestions/comments Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. there is huge collection of responses.

Chapter 4 4. 43 .1 Data Representation 4.2 Charts & Comments Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

1 Data Representation Particular s 1. Availed O/D Composition 5. ALFinance(13). HDFC(11) Availed(28) 3. 44 . Tyres Not Availed(72) Regional & Nationalized Banks(87) Not Interested(55) HDFC(8) Citibank(5) Financial Soundness(45) MRF(29) CEAT(26). Citibank(10). ICICI(09) KotakMahindra(11). Apollo(23) JK Tyres(22) Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. O/D Composition 4.4. Fleet Size Top (%) 20-50(36) Average (%) 5-20(34). Not Availed O/D Reasons 6. Above50(19) Bottom (%) 0-5(11) 2. Major Financiers Others/Private(25 ) TATA(21).

Dainik Jagran (10) Others (4) HGV (72) Multi-Axle (8) Punjab Kesri (37) Hindustan (6). 2000 to 3000 (16) Above 5000 (10) Cash basis (94) Credit (6) BPCL (41) HPCL (28). MDV (10) Times of India (25). HindustanTimes(16) .7. Above 50000 (17) 20000 to 30000 (14) 4000 to 5000 (41) 3000 to 4000 (33). Type of Vehicles 14. Newspaper Read 7000 to 10000 (55) 10000 to 15000 (45) 40000 to 50000 (43) 30000 to 40000(26). Diesel Buy Basis 12. Pair of Tyres’ Cost per month(Rs) 9. Tyre’s Life(km) 50000 to 60000 (52) Above 60000 (35) Below 50000 (13) 8. Oil Company 13. Maintenance Cost per month 11. Insurance & Permit Payments per annum(Rs) 10. . IOC (27) LCV (10). NavbharatTimes(6 ) 45 Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

 The second largest number of transporters has 5-20 (34%) Fleets followed by 0-5 (19%) Fleets and the remaining are minimum has 50 & above Fleets.2 Charts & Comments 1. Fleet Size Fleet Size 19% 11% 34% 36% 0 to 5 5 to 20 20 to 50 Above 50 Comments  The large number of transporters has 20-50 (36%) Fleets specially in Sanjay Gandhi Transport Nagar. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 46 .4.

47 . Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 2. The average fleet size is 30.  The second largest number of transporters finances from TATA Finance (21%) due to widely availability & well entertained the customers followed by Ashok Leyland Finance (13%). Major Financiers Major Financiers 25% 11% 9% 10% 11% Citibank TATA Finance 21% HDFC Kotak Mahindra Others/Pvt ICICI 13% AL Finance Comments  The large number of transporters finances their fleets from Others/Pvt (25%) like Chola Mandalam. Sundram Finance etc. due to less serving time and also less formalities with easy terms & conditions.

 HDFC holds the share of 11% in financing of fleets with Kotak Mahindra. 72% because they are not aware about overdraft schemes and even if interested. 48 .e. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 3.  Only 28% of the transporters avail the Overdraft Facility from various regional & nationalized banks. then nobody there to entertain them. Overdraft Composition O/D Composition 28% 72% Transporters not availing O/D Transporters availing O/D Comments  The large number of transporters does not avail the Overdraft Facility i.

 HDFC’s share is 8% out of whole and Citibank is having 5%.  Among the private banks HDFC holds the share of 62% and the remaining is of Citibank.e. 87%.4. This is due to trustworthiness among nationalized banks & even the transporters not aware of private banks’ policies especially HDFC. they availed this facility from the Regional & Nationalized Banks i. 49 . Availed Overdraft Composition Availed O/D Composition 8% 5% 87% Regional & Nationalized Banks HDFC Citibank Comments  In 28% Availed Overdraft Facility Transporters. as in private sectors Working Capital Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

 On this basis. 5. out of 100. and they don’t need any Overdraft or any such Credit Facility. who say they are Not Interested which is 55% of 70. 50 .Facility is provided by these two only and ICICI is yet to start by August.  Rests 45% say that they are Financial Sound. This is because. there are about 55% who say they are Not Interested. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Not Availed Overdraft Reasons No O/D Reasons 45% 55% Not Interested Financial Soundness Comments  In 72% Not Availed Overdraft Facility Transporters. 72 doesn’t have any Overdraft Facility and HDFC has to convince those 40 transporters. 2004. they don’t want to open their financial details or they feel it as a complex procedure.

 The second largest Tyre Co. Share in Transport Sector is of CEAT (26%) followed by Apollo (23%) & rest is of JK Tyres. which holds the market share of 29% in Transport Sector. there is a tough competition among all the well known companies & MRF holds largest share just due to solidity.6. Tyres Purchased Tyres Purchased 29% 23% 22% 26% Apollo Ceat JK Tyres MRF Tyres Comments  The above picture of Tyres Purchased by Transporters give the 2largest preference to MRF Tyres. reliability in long travels. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 51 .  On this basis.

52 .Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

which make their composition of 52%. 53 . who says that their tyres run above 60.  There are 35% of transporters.  On an average.000 Kilometers. the tyres will run for 55.000kms approximately.000 Kilometers. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.000 to 60. Tyre’s Life Tyre's Life (kms) 13% 35% 52% 0 to 50000 50000 to 60000 Above 60000 Comments  Most of the Transporters Fleets’ Tyre gives a drive for 50.7.000 Kilometers & rest of the transporters’ tyres life is of less than 50.

e. Tyres' Pair Cost p. which shows that they buy minimum 2 pair of tyres for every fleet. about 55%.8. 54 . Pair of Tyres’ Cost p.m. (000s) 45% 55% 7 to 10 10 to 15 Comments  Most of transporters pay around Rs7000 to Rs10000 i. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.  Then rest 45% pay from Rs10000 to Rs15000 or above to maintain the life of tyres at good speed & reliability.  This is the analysis conducted for the purpose of measuring the Working Capital requirements of the transporters as this consideration forms the major portion of it.m. Rest is all depend on the number of shifts for which the fleets are running.

000 and rest paid Rs20.000 to Rs50.e. their lifetime & especially how much the fleets run & at what distance i.  On an average.  This whole analysis & outcome regarding Insurance & Permit is based on the number of fleets.000. who paid Rs40. 55 .000 to Rs30. the number of shifts. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. the Insurance & Permit Payments are of Rs40.000 to Rs40. 17% 14% 26% 43% 20000-30000 30000-40000 40000-50000 Above 50000 Comments  The large number of transporters which are 43%.000 as Insurance & Permit Payments per annum followed by 17% who paid more than Rs50.  The second largest composition is of 26% transporters.000 for the purpose. who paid Rs30.000 to Rs42.000 yearly as an expenditure on Insurance & Permit.9.a. Insurance & Permit Payments per annum Insurance & Permit Paid p. the transporters running.

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 56 .

000 to Rs5. 57 . the Maintenance Cost per month paid by transporters is Rs2.3000 and the rest paid more than Rs5.000 as Maintenance Cost per month followed by 16% who paid Rs2.900 to Rs3.000 for the purpose.400.  The second largest composition is of 33% transporters. and their lifetime as the more old the vehicle is.000 to Rs4. the larger its Maintenance.  This whole analysis & outcome regarding Maintenance Cost is again based on the number of fleets.m. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. the transporters running. 10% 16% 41% 33% 2000-3000 3000-4000 4000-5000 Above 5000 Comments  The large number of transporters which are 41%.  On an average. who paid Rs3.000 to Rs. Maintenance Cost per month Maintenance Cost p. who paid Rs4.000 monthly as an expenditure on Maintenance of their fleets.10.

 The reasons behind such a low percentage of only 6% who avail the credit facility for buying diesel are illiteracy. 58 .11. The reasons for cash as mode of payment for diesel are due to convenience in payments & easily availability because in India there are various areas where Credit or Debit Cards facility is not available.e. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Diesel Purchased Basis Diesel Buy Basis 6% 94% Cash Credit Comments  The large numbers of transporters buy their fuel or diesel by mode of cash payment i. inconvenience. 94%. & may be complexity.

and the both companies have to do a tough job to win the heart of transporters in advertising as well as purity with interesting schemes.12.  From this composition.  Hindustan Petroleum Corporation Limited & Indian Oil Company holds 28% and 27% respectively. if they want to give tough competition to BPCL. 59 . The reasons for such large share are due to purity. Preferred 4% 27% 28% 41% HPCL BPCL IOC CNG/Others Comments  Bharat Petroleum Corporation Limited holds the largest market share to serve fuel in Transport Sector as about 41% of transporters give preference to BPCL. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. there is tough competition in between HPCL & IOC. Oil Company Preference Oil Co. better service & reliable brand.

& these vehicles can take a load which is highly preferred. Type of Vehicles Owned Owned Vehicles 8% 10% 10% 72% LCV MDV HGV Multi-Axle Comments  Most of the transporters owned Heavy Goods Vehicles (72%).13. These HGVs are trucks normally have 6 to 10 tyres.  The makers of HGVs among all kinds of Transport Vehicles are at top like TATA-2213. which anybody can easily vie on the roads.  Light Commercial Vehicles & Medium Density Vehicles owned by 10% transporters and the rest owned Multi-Axle Vehicles. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. TATA-1516 etc. 60 . Reasons for this are due to normal capacity.

Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Newspaper Reading Newspaper Read 25% 37% 10% Times of India Hindustan 6% 6% 16% Hindustan Times Dainik Jagran Navbharat Times Punjab Kesri Comments  Most of the transporters read Punjab Kesri (37%). The reasons for this are the illiteracy among some transporters. especially the workers working over there. the companies should prefer to give their advertisements in Punjab Kesri & Times of India with Hindustan Times. 61 . Secondly is the low price.  Most of the transporters then prefer to read Times of India (25%) followed by Hindustan Times (16%) and Dainik Jagran (10%). The rest include Hindustan & Navbharat Times.14.  On this basis. They can easily read Hindi Newspaper.

Chapter 5 5.1 Conclusion 5. 62 .3 Limitations Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.2 Suggestions & Recommendations 5. The Transporters Society needs to learn more in field of education to understand the world happenings in this sector as the English Newspapers govern better knowledge of world.

e. 2. the main areas or locations of Transporters in National Capital Region are Sanjay Gandhi Transport Nagar on G T Karnal Road. which has been already explained in previous chapter are explained in detail nowhere. Tis Hazari.1 Conclusions The whole survey on Commercial Transport Working & Financing draws out some conclusions from the data. Working Regions – On the basis of whole study.5. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. The results show that the large number of fleet owners owned 20-50 vehicles. followed by 5-20 vehicles. Although. 63 . Punjabi Bagh Transport Center. the large number of fleet owners belong to MFO i. In respect of8 Working Capital Division of banks. the normal size is of 30. and Bata Railway Crossing in Faridabad. Haryana. whether related to financiers part or tyre’s life or Insurance & Permit payments etc. UP. The whole survey is based on Questionnaire. & Rajasthan. and DelhiUP Border in Ghaziabad. 1. Medium Fleet Owners. are based on the Fleet Size. Fleet Size – Regarding the fleet size. Punjab. Gujrat. All other questions. which is sufficient to provide the service to potential customers exclude the case of high demand. Qutab Industrial Area in Delhi. the transporters who provide services for All India but large number of transporters located in NCR provide for Delhi. which ask the very first question regarding the Fleet Size.

64 . Apollo. Secondly.3. The reason behind this is lifelong reliable brand relationship. ICICI. Then transporters generally not interested to avail due to inconvenience & further large number of formalities. 6. Citibank etc. Again large part not availed this facility from anywhere. As far as the question of TATA Finance is concerned. solidity. the reach of these small lenders is very high in comparison to other bankers like HDFC. economy & last but not least is its reliability. stability. Major Financiers –As already mentioned above that the large part of financing for transport sector is done by private institutions or small bankers because due to trustworthy & reliable relationships. they are the fixed expenditures and all these payments are based on the fleet size. then the list of such banks is too large to make. 5. no one can compete with MRF just due to its strong ness. & JK Tyres are giving a tough competition to each other. 4. transporters feel very energetic towards it. Overdraft Facility –Overdraft term is used in place of Working Capital in questionnaire because large numbers of transporters are not aware of the term ‘Working Capital’. Tyres – In the field of tyres. Insurance. any customer prefer to get financed its product from the maker of the product itself. Permit & Maintenance Payments – As far as Insurance. Permit & Maintenance Payments are concerned. and if availed. the transporters owned. Others like CEAT. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Secondly.

he has owned 22 Heavy Goods Vehicles. BPCL is enjoying the largest market share in field of Oil Services. Times of India and even Hindustan Times. but not least. Then. Delhi. which works just like prepaid schemes in mobiles. then economy & further the masala news. which run on average 55. the average number of transporters owned 30 vehicles. out of those 30. then in an year the insurance & permit payments is around Rs30. then maintenance cost paid at least Rs3. the answers to rest of the questions related to operations of fleets are all based on the fleet size. In this way. If his major regions of working are Haryana. Again.000 to 4. which are directly or indirectly deal with Transport Sector should have to give advertisements in Punjab Kesri. 65 .000. on an average he has financed his 8 vehicles from others or on indigenous bankers or financial institutions. 20 vehicles are 5 to 7 years old. 8. out of 30.000. If a transporter owned 30 vehicles.000kms. the largest reading preference given to Punjab Kesri just because anyone can read Hindi. & Punjab & every truck has a shift of 2 days in a week. UP. Example According to results on data collected. Therefore.7. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. the companies. Newspaper – Last. the transporters owned. Diesel & Oil Company – The cash mode of payment for diesel is given high preference is just due to illiteracy & easy availability of cash in transport sector. Even some of the transporters are enjoying & satisfied with the facility of Petro Card. which most of the lower class enjoyed during their free time.

especially Fast Moving Consumer Goods (FMCG) category. wholesalers & further there will rise in prices of various products. the prices of diesel as well as petrol going up day by day. In this aspect. Heavy payments will then be curbed by the suppliers. This rise increases the expenditures of transporters. as well as for the improvement of Transport Sector in all aspects. the rates of toll taxes should be curbed by the govt. the duties charged by the govt.5. 2. overdraft or working capital provided by the banks.2 Suggestions & Recommendations There are various suggestions given by the transporters regarding their welfare. The rise in rates of toll taxes will again pay by transporters. 66 . Those suggestions are as follows: – 1. Toll Taxes – Toll Tax is a kind of tax. In this aspect. There is an increase in diesel prices by around Rs6/litre. after Congress came in to power. which is charged by the govt. Bank Formalities – As far as the facility of loans. Especially after the change in government. most of the transporters Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. and transporters demand for decrease in diesel prices. on diesel distribution should be curbed with low sales tax to serve the poor part of economy the Physiological needs. which leads to rise in contract amounts of transporters & dealers. for the happiness & welfare of economy. for crossing the state boundaries. Diesel Prices – Almost all the fleet owners. 3. which leads to same kind of results like rise in diesel prices.

which are spread on large scale among all the transporters. Large numbers of papers always increase the serving time by banks. these small fleet operators are the main source of income for the indigenous bankers. that banks call again & again for a simple financing.are not satisfied by the long list of papers demanded by the banks. the banks should have to make the special resolution regarding such small fleet operators. & private lenders. 67 . who feel this kind of problem due to low reachable capacity by the banks to those. but still there are large number of transporters. Further. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. These kinds of complaints mainly come from small fleet owners. Time Consumption – As already mentioned above. In this aspect. Therefore. In this aspect. 4. Some complaints also came from the transporters. the banks should have to increase their reaching capacity from smallest to largest customer to capture the market on a large scale. that the large number of formalities leads to increase in serving time. although the serving time is reduced in previous years. who already hold the largest market of financing.

there is always a limitation of time in collection of large sample of transporters especially who either not available. there are certain limitations of research which are as follows: – 1. Biased or Dishonest Responses – This is a main drawback in this kind of survey or personal exploratory research based on questionnaire. the respondent still feel uncomfortable. 3. which may or may not irritate them. 68 . The respondent may give false information or even hide the actual figures may be due to Income Tax or Government Interference. and if available then only during evening & nights. Time Shortage – In a short span of time of 8 weeks. other person deals with the researcher.3. Respondents’ Ignorance & Refusal – The transporters are mostly kind of persons. who may give wrong information. financiers etc. Further. And. who strictly ignore or refuse to give any kind of information. Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. This results in to some transporters’ incomplete or wrong details. who easily not believe anybody. 2. this research deals with the transporters. Further a large sample of 400 is again a problem. 4. Even after telling by the researcher that he doesn’t belong to any organization. payments.7 Limitations As no research is full fledged. most of the time they are busy in outings. and in that case. Respondents’ Absenteeism – Most of the information in the questionnaire is directly asked to the fleet owners because only they can answer the questions regarding tyres.

2 Questionnaire Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. 69 .1 Bibliography 6.Chapter 6 6.

MBA Marketing Management – By Philip Kotler Research Methodology – By C R Kothari www.google.1 Bibliography Study Material of Research Methodology of 2nd Semester.hdfcbank.com www. 70 .6.com Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd.

Are you availing the Overdraft Facility (Yes/No) ………………………… 3. ……………………Nature of Firm .. Major Financiers : HDFC Citibank ICICI Kotak Mahindra TATA Finance Ashok Leyland Finance Other(Please Specify) ………………………………………….6.1 If yes. (000s) : 7-10 10-15 Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Years in Business …………….. Fleet Size: 0-5 5-20 20-50 50 and above Financed Fleets ……………………. Tyres: Apollo Ceat JK Tyres MRF Tyres Other(Please Specify) ……………………………………………….…………………………….1 Life of Tyres (kms): 0-50000 50000-60000 60000 and above 4. (in %) …………………………. 71 . 3.m.. 4.. 1. 4.. Address of Firm ……………………………………………………………… Contact No....2 Cost of Pair of Tyres p..Working Regions ………………………….2 If not..…….. from where? …………………… Limit …………………………. 3. give reasons: Not Interested Financial Soundness Unawareness Other(Please Specify)………………...2 Questionnaire Commercial Transportation Working Analysis Name of Firm ……………………………………………………………... 2.

. 10. Diesel Purchased Basis: Cash Credit If Credit (From Where)……………………………………………. 7.5.... Type of Vehicles: LCV HGV MDV Multi-Axle 9. Insurance & Permit Payment/year : 20000-30000 30000-40000 40000-50000 Above 50000 6.. 72 . Newspaper Read: Times of India Hindustan Times Navbharat Times Hindustan Dainik Jagran Punjab Kesri Other (Please Specify) ……………………………………………….1 Oil Company: HPCL BPCL IOC CNG Other (Please Specify) ………………………………………………. 8.. Suggestions/Comments on Commercial Vehicle Financing: ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… ………………………………………………………………………… Commercial Transportation Working Analysis Created by Avinash Kumar Maurya for HDFC Bank Ltd. Maintenance Cost/fleet/month : 2000-3000 4000-5000 3000-4000 Above 5000 7..