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A Project Report

On

Topic: In-depth Analysis of Escort Auto Component


Ltd. in the following two areas:
Marketing
Human Resource Management

CONTENTS
TOPICS

PAGE NO.

1. SYNOPSIS

2. INTRODUCTION

ESCORT PROFILE

ESCORT GROUP

COMPANY MISSION

13

EACL PROFILE

17

3. METHODOLOGY

29

4. FINDINGS

31

MARKETING

31

STRATEGY

53

SURVEY

68

DEMAND ESTIMATION

70

MARKETING INTELLIGENCE
SYSTEM

73

CRUX OF MARKETING

76

HUMAN RESOURCE MANAGEMENT

92

FUNCTIONS

94

COMMUNICATION

95

DISCIPLINE AND DISCIPLINARY


ACTION

107

GRIEVANCE

116

MORALE

120

WAGES AND SALARY

123

JOB EVALUATION

129

PERFORAMNCE APPRAISAL

135

TRAINING

139

PROMOTION, DEMOTION,
ABSENTEEISM

141

RECRUITMENT AND SELECTION


PROCESS

143

QUALITY RECORDS

145

5. LIMITATIONS

146

6. CONCLUSIONS

148

7. RECOMMENDATIONS

152

8. APPENDICES

156

9. BIBLIOGRAPHY

173

CONTENTS (GRAPH & CHART)


TOPICS

PAGE NO.

1. MARKETING
ORGANISATION STRUCTURE

31

SALES DATA/ESTIMATION OF DEMAND

32

GRAPHICAL

33

PRESENTATION

ESTIMATED

DEMAND
MANUFACTURING

34

PRODUCTIVITY ANALYSIS

35

VALUED CUSTOMER/MARKET SHARE

36

SALES TURNOVER

37

MASTER RECORDS

38-42

PRODUCTION DATA

43-44

REVISED BUSINESS PLAN (EACL)

45-46

PRICE

47

PRICE MOVEMENT

60

PRICE LIST
TOTAL MANUFCTURING OVERHEAD

61
83

MANHOURS
CULTURAL CHANGE
2. HRM

89

ORGANISATION STRUCTURE

92

WORKERS STRENGTH

93

COMMUNICATION

95

TYPES OF COMMUNICATION
WAGES AND SALARY
FACTORS IN FLUENCING
RECRUITMENT AND SELECTION PROCESS

96
123
126
143-144

SYNOPSIS
This project report in on Escort Auto Component Ltd. a solely
owned subsidiary of Escorts Ltd. Escorts Ltd. is one of the
leading business houses of India.
The project covers the in-depth history of Escort Ltd. and its
subsidiary Escort Auto Component Ltd.
The company is manufacturing industrial product (carburettor,
clutch, oil pumps) for two wheelers industry. The carburettor
manufactured by this company is marketed all over India under
the brand name MIKCARB.
The two fields which is covered in this project report is
1. Marketing
2. Human resource management.
The project highlights the various marketing strategies the
company has adopted, in relation to product, price, place and
promotion.
The company had adapted to marketing concepts
- Original Equipment Marketing
- Replacement marketing

In OE marketing company is selling carburettor to the original


equipment manufacturers like Bajaj Auto, Royal Enfield,
Majestic Motors, TVS Suzuki, Kinetic Engineering, LML &
Hero Honda Motors Ltd.
Company has a fresh experience in the replacement market.
Escort Auto is manufacturing carburettors for Hero Honda, Bajaj
& LML in this field. These are directly sold through dealers all
over India.
After analysing marketing deeply a small survey was conducted
to know the actual market scenario of carburettor. This was
conducted in Faridabad (Hariyana).
The company has a philosophy of Quality, Cost, Delivery,
Development & Attitude (Q.C.D.D.A.). Which is their crux of
marketing. This philosophy is been covered in-depth which is
also the crux of EACL carburettor marketing
The auto ancillary business has increased in the near future.
This is mainly because of galloping rate of increase in sales of
two-wheelers. The two wheeler industry is growing at a 33%
rate every year. So in the effect of this Auto component business
has also increased. There is a relation of derived demand
between

the

two. Against

this

background

Escort Auto

Component Ltd. enters the new areas of auto component


business with stronger customer orientation, faster penetration
and shaper focus in the future. The company had diverted its
marketing into replacement marking with an Eagles eye.
The project also provides an in-depth knowledge of human
resource management system adopted by the company. Areas
like performance appraisal job evaluation, executive and
employee development and training. At the same time one of the
two major aspects of Human Resource Management is been
deeply studied. Which are Discipline and disciplinary action and
communication prevailing in the organisation.
Other aspects like wages and salary, grievance handling,
training and recruitment process, organisational structure,
Employees morale has been carefully dealt with.
Lastly this project also mentions about the conclusion part
according to author knowledge and the recommendation to it.
Which can be useful to the company if they find it worth.
Escort auto component strongly believe
"Total satisfaction to customers, employees, share holders,
vendors, and the community".

INTRODUCTION
OBJECTIVE
The objective of the project report is to have an in-depth
knowledge of
- How industrial marketing is done
- To analyse marketing strategies of the company
- In-depth study of human resource management system
adopted by the company.
- Lastly to recommend the company about what all they can do
in the field of marketing and human resource.
PROBLEM
Company is facing losses for the reason that it has lost its
major OE consumer Yamaha Motor Escort Limited. Company
is also facing problem in the field of replacement market. The
company has just ventured into this market and is facing tough
competition and though finding ways to fight with it.

ESCORTS PROFILE
Escorts come into being with a vision that was nurtured by Mr.
H.P. Nanda and late Mr. Yudi Nanda. The foundation of Escorts
Ltd. was laid in the formation of Escorts (agent) Ltd. on 17 th
October 1944 and Escorts (Agriculture and machines) Ltd. in
1948. These two were later merged in 1953 to form Escorts
Agent Pvt. Ltd. the company's incorporation in present name
Escorts Ltd. was effected on 10 th January 1960.
Having initially started with a franchise for wasting house
domestic

appliance

ESCORTS

has

come

along

way

in

manufacturing and marketing a range of product. It has


pioneered the farm mechanisation India through import and
distribution of agricultural tractors.
With its 19 manufacturing plants spread over 6 location, 2400
employees and a large network of dealers and distributors
ESCORTS

today

rank

amongst

organisation in the country.

the

top

20

engineering

Till 1995 the company principal activities were trading and


representing several leading overseas for the sale of their
products in India. The company progressively entered in the
field of manufacturing establishing a series of manufacturing
plants.
The ESCORTS Group today headed by Rajan Nanda, rank
among

the

countries

leading

multi

product

industrial

conglomerated having collaborations with several global giants.


It has a strong presence in the core areas of Agri machinery,
Bi-wheeler construction and material handling equipment, auto
and railway ancillaries, telecommunications and finance. A
chronology of business actives is listed below.
1954

: Piston rings and cylinder liners

1960

: Piston

1961

: Assembly of tractors

1962

: Motorcycle and railway couplers

1963

: Automobile shock absorbers

1965

: Agricultural tractor under 'Ford' Brand name

1969

: Agricultural tractor under 'Ford' Brand name

1971

: Industrial and construction Equipment

1979

: Excavator loaders

1981

: 100 C.C. Motorcycles

1985

: Electronic PABX's

1991

: Harvester combines

1992

: V-sate Satellite Communications

1993

: Mobile Communications

1995

: Fork lift trucks

1996

: Disengagement of joint venture collaboration with new


Holland and launch of FARMTRACK tractor.

ESCORTS GROUP
The Escorts odyssey, which began in 1944, from agency to
manufacturer to diversified industrial conglomerate, is a classic
study in corporate planning and business development.
Today Escorts ranks among the country's leading multi-product
industrial group having several international collaborations,
employing over 20,000 people with a turnover of Rs. 22, 000
million.
Beginning as a small agency house in Lahore in 1944, Escorts
after independence gauged the need for modernising agriculture
and pioneered farm mechanisatio in the country. It set up the
first dealer network of its kind to market tractors it was to
import. Simultaneously the company established a school of
farm mechanisation to educate farmers on use and benefits of
farm mechanisation. Escorts soon became the number one
tractors selling company in India.
Meanwhile, the company branched into manufacturing Pistons
rings in India in collaboration with GOETZEWERKE of

Germany. Since then Escorts has all along been diversifying and
growing steadily.
Currently, various group companies of Escorts manufacture
tractors,

harvester

combines,

motorcycles,

construction

equipment, auto and railway ancillaries, and Tele and satellite


communication equipment.
In the last five decades, Escorts growth has been fuelled by the
best available technology the company has acquired from
several global giants. Among them are Goetzawerke, Mahle and
faun from Germany, Yamaha Motor Co. and Kayaba from Japan,
JCB Amford Excavators Ltd. from the U.K., Hughes Network
System from the U.S.A. and Daewoo from Korea.
Organisations restructuring initiated by the company recently,
aims to consolidating competitive strength in the six core areas:
Farm

machinery,

Bi-wheelers,

construction

and

material

handling equipment, engineering and auto ancillary products,


telecommunication

and

financial

services.

The

resultant

transformation would enhance the company's volume in the

Indian as well as over seas markets. The group envisages to


cross the Rs. 75,000 million by 2000 AD
During the course of its growth Escorts has also remained a
responsible corporate citizen, ever conscious of its commitment
towards the welfare of society in general and the community and
environment in which it has adopted over 60 villages, Escorts
Hospitals and Research Centre at Faridabad and Escorts Heart
Institute and Research Centre and crowning examples of the
company's belief that the welfare of business is inter wined with
the welfare of society.

ESCORTS BUSINESS REVIEW


AGRI MACHINARY

AUTO COMPONENT

Tractors

AUTOMOBILE
Piston, Piston Pin &

Escorts Farmatrac

Piston rings Cylinder

Harvester Combines

liners
Aluminium Cylinder
Blocks.
Power metal component
Shock absorbers, Front
Forks
And stouts,
Carburetors,

BI-WHEELERS

magnetos, clutches
RAILWAYS

MOTORCYLCE
Yamaha RX 100

Air brakes

Yamaha RX-G

Coupes

Yamaha RX-Z

Synthetic brake blocks

Rajdoot

Electro pneumatic brakes

Mopeds
CONSTUCTION EQUIPMENT
Pin N carry cranes

Shock absorbers
TELECOM
Cellular Telephone

All terrain pin N carry cranes

services

360 angle slew cranes

VAST service

Agriculture Boom cranes

EPABX service

Front end loaders


Fork lifts, Aerial
Platforms, excavators
Vibratory Rollers
Backhoe loader
FINANCIAL SERVICES
Car finance
Commercial Vehicle France
Securities Trading
Personal Investment
Advertising
Consumer Finance
Equipment Leasing

COMPANYS MISSION
We strive to be strongest and most respected engineering
company in the country. We will achieve this by dearly
positioning our self in a competitive environment enhancing its
brand equity international quality products, market leadership,
enlarged customer base, better cost control and pricing
opportunities. We feel responsible to our employees and we
must recognize their dignity and recognize their merit. Each one
of

us

must

uphold

the

core

value

of

professionalism,

commitment and integrity in keeping with the highest tradition


of the company.
As responsible corporate citizens, we must not only encourage
civic improvement, better health and education but also protect
our environment and natural resources.
Finally we are responsible to our shareholder and for this
business must make a sound profits and thus to be investor
attractive.
We must experience with new ideas, new facilities and new
products. When we operate on these principles, the shareholder
should realise a fair return.

ESCORTS STRATEGIC ALLAINCES


GERMANY
GOETZE AG
MAHLE Gmbh
CLASS OHG
FAUN Gmbir
KNORR BREMSE Gmbh
AUGUST BILSTEIN Gmbh
HERION-WERKS Gmbh

PISTON RINGS&CYLINDER
LINERS
PISTONS
HARVESTER COMBINES
HYDRAULIC CRANES
RAILWAY BRAKE SYSTEMS
GASSPRESSUER SHOCK
ABSORBERS
HYDRAULIC PRODUCTS,
SWITCHES AND
AUTOMOBILE VALVES

JAPAN
YAMAHA MOTER CORP.

MOTORCYCLES

KYESBA INDUSTRY

TELESCOPIC FRONT FORKS

CO.LTD

MC.

MIKUNI SHOKO CORP.


UK
JC BAMFORD

AGRICULTURAL TRACTORS

EXCAVATORS LTD

FRANCE/SWEDEN
J.S. TELECOM GROUP
BOSCH DYNAPAC HEAVY
EQUIPMENT AB

ELECTRONIC PABX
ROAD CONSTRUCTION
EQUIPMENT

USA
HUGHES NETWORK

VAST SATELLITE

SYSTEMS

COMMUNICATION
SYSTEMS

SOUTH KOREA
LGI-LUCKY GOLDSTAR

STAREX-VSE, DIGITAL, NON

GROUP

BLOCKING EXCHANG
SYSTEM

MARKET SHARE OF ESCORTS GROUP


Products
Agri Machinery
BI-Wheeler
Excavators Loader
Pick N Carry Cranes
Loaders
Forklift
Piston
Rings
Shock absorber
Heavy duty shock absorber
Carburettor
Center buffer couplers
Vacuum controls valves
Electro pneumatic brakes
Compressed air brakes

Market Share (%)


19.07
28.3
86.00
70.00
85.00
9.70
45.00
45.00
22.00
85.00
15.00
100.00
95.00
72.00
38.00

COMPANY PROFILE
Escorts Employees Ancillaries Ltd. (EEAL), incorporated on
25 th August 1971, enunciated a unique concept of employee's
participation in the ownership of the company. Initially the
business of the company was restricted to trading which was
carried out from Delhi and Faridabad. Manufacturing activities
of the company started with the commencement of commercial
production of carburetor from January 1978 in technical

collaboration with M/S MIKUNI of Japan.Company analyse


changed its named to Escorts Auto Component Ltd. (EACL)
in August last year.
Today with a Turnover of Rs. 275 million and strength of 394
people, EEAL is one of the most modern, high precision auto
ancillary plants in the country manufacturing Carburetors,
spokes nipples, clutch assemblies and pressure die casting
components for the Bi-wheeler industry. We are popularly
recognised as MIKCARB (our brand) in the auto mobile line,
our carburetor are being manufactured to suit Bi-wheelers
ranging frame 50- cc to 500 cc and are original equipment with
the most of the motorcycle/moped manufacturers in India,
besides marketing its product through a wide dealer network
spanning the entire country.
In addition Tobring OE supplies of carburettors to major two
wheeler manufacture e.g. Escorts, Bajaj, TVS Suzuki, Kinetic
Engg, Enfiled India, Hero Motors, EACL Markets its products
through a wide dealer networks, spanning the entire country.
The welfare shop (Owned by EACL) is also the model
dealership for Escorts range of motorcycles, Mopeds, Regional

Trading activities of companies e.g. Philips India, Advani


Oerlikon, Cut past Abrasine tools, Grind well Norton, Chiago
pneumatic are also handled by the welfare shop.
Diversification and growth a continuous process at EACL
backed by a strong research and development idea is poised to
meet tomorrows challenges today.

HISTORY
1971

: Incorporated as public limited company technical


collaboration-Carburettor Mikuni, Japan.

1973

: Trading activity started

1978

: Carburettor production commenced

1980

: Technical collaboration
M/s Hoshi, Japan-Spokes & Nipples
M/s Fuji Chemicals, Japan-Clutch

1984

: Pressure die-casting poetrations commenced

1988

: Export of Carburettor to USSR

1993

: Up-gradation cum capacity expansion of Carburettor


production

1996

: Carburettor shed expansion (covered area nearly 2


times). Introduction of down draft Carburettors
planned.

ESCORTES EMPLOYEES ANCILLARIES LIMITED


AT A GLANCE
Year of commencing

: 1978

production
Company promoted by
Products Manufactured

: Escorts Limited
: Carburettors
Pressure Die-Casting
Clutch Assembly

Technical know-how

Spokes and Nipples


: Carburettors-Mikuni, Japan
Clutch Assembly-Fuji
Chemical, Japan, Spokes &

Installed Capacity

Nipples-Hoshi, Japan
: Carburettors-6, 00,000 Nos.
Clutch Assembly-10, 00,000
Nos.
Spokes & Nipples-10, 00,000

Land & Building

Nos.
: 35000 SQ. M (LAND AREA)
7268 SQ. M. (COVERED

No of employees
Gross Block
Production Volume
(Caburattors)

AREA)
: 394
: Rs. 150 millions
: Years
Nos.
1992-1993

215076

1993-1994

279999

1994-1995

357877

1995-1996

445705

1996-1997

478500

1997-1998

491150

1998-1999

380500

1999-2000

444369

99737 till May


Cumulative Production Approx.
Turn Over
Shareholding Pattern

56 Lacks
: Rs. 16.34 million
: Shareholders % of Holding
Escorts Group

58.00

Financial Institutions .62


Others (EMPLOYES/
Dealers/Venders)
Others Trading Business

41.38

Total
100.00
: YAMAHA MOTOR ESCORTS
LTD.
Motorcycle/Mopeds,
Accessories and spare parts.
ADVANI ORLIKON LTD
Welding sets, Welding
Electrodes and spare sets.
PHILIPS INDIA LTD.
Phillips MAKE Domestic
Luminaries and Industrial

Present Customers

Fittings/Fixtures.
: Escorts Yamaha Motor Limited,
Faridabad.
Escorts Yamaha Motor Limited,
Surajpur,
Bajaj Auto Limited,

Pune/Aurangabad
Hero Motors, Ghaziabad.
Majestic Auto Limited,
Ludhiana
Royal Enfield Motor Limited,
Chennai
TVS-Suzuki Limited, Hosur.
Kinetic Engg. Limited Pune
Scooter India Limited,
MARKET SHARE 2000
Distribution Network

Lucknow
: 11%
: Zone

No.

(Carburatter & spares parts

North (Haryana, Punjab, of

in DEALERS Replacement

Delhi, UP, Rajasthan

Market)

South

18

(Tamil Nadu,
Karnataka, Kerala, A.P.) 20
East
West Bengal, Andaman,
& Nicobar, Bihar and

09

Orissa
West
Madhya-Pradesh,

15

Gujarat, Goa, &


Maharastra
Total

62

CARBURETTORS UNDER DEVELOPMENT


Customer
Bajaj Auto Ltd.

Product
K-4S 110 cc Motorcycle 4S
Sunny Export 50 cc Scooter-2S
Bajaj Scooter 150 cc Scooter 2S

Escorts Yamaha Motor Ltd.


TVS Suzuki Ltd.
Kinetic Engg. Ltd.

M50 cc Setup Thru-2S


Toro 50 cc Moped-2S
TVS Champ 60 cc Moped 2S
4S-100 cc Motorcycle-4S

Royal Enfield Ltd.

Brat-7 cc Step Thru 2S


Bullet 535 cc Motorcycle-4S
Bullet 624 cc Motorcycle-4S

PLANTS HIGHLIGHTS
Proven MIKUNI design and manufacturing technology
Quality reliability in built into manufacturing processes.
MANUFACTURING FACILITIES
Flexible manufacturing machine/dedicated SPMs
All critical machines from Japan/Switzerland.
Ultrasonic clearing facility.

Precision and functional parts manufacturing in house


Continuous up gradation of manufacturing facility 25% of
Gross Block invested in last two year.
State of the Arts Machine for jet making.
Precision part/assembly manufacturing in dust free and AC
environment.
SUPPORT FACILITIES (INHOUSE)
Tool Room
Pressure Die-Castings
100% in house Power Generation
Connected Load 1066.50 KWB generation capacity- 1100
KVA
ENGINEERING AND R & D BACK UP
Tool design in house expertise available.
Tool manufacturing facilities equipped to meet jigs, fixtures
and die-casting tooling requirements.

Special purpose machines-design and manufacturing facilities


available.
Qualified and experienced manpower
Chassis Dynamometer available for in house testing.
QUALITY ASSURANCE
Inbuilt on line inspection stages/facilities high product
quality and reliability.
Latest equipment available most imported from Japan, Italy,
West Germany and Switzerland.
Carburettor fuel flow Toning Equipment.
Pilot Circuit Testing Equipment
Main Circuit Testing Equipment
Fuel Level Checking Equipment.
Cosmo Leakage Tester.
3 Co-ordinate Measuring Machine.
Surface finish Tester.
Well-equipment meteorological facilities.

Fully equipped Chemical/Metallurgical Laboratory.


Self-contained distillation plant for Carburettor flow checking
and calibrating fluid.
METERIALS AND VENDOR DEVELOPMENT
Nearly 50 vendor supplying over 300 bought out parts.
Bought out materiel contents 40% by value for carburettors.
Import value of special raw materials and components 7% of
total bought out.
Technical

and

financial

support

to

vendors

for

critical

components
High inventory turnery ratio-10
Single window service to vendors
Healthy vendor Buyer relations based on term- dealing
concept.
OTHERS SUPPORTS
Escorts R&D facilities available
Training of manpower at all levels

ISO 9001
EEAL has ISO 9001 certificate this certificate has a different
benefits which are as following. This certificate also shows that
the company has its own design and Research for the product.
BENEFITES
1. Quality up gradation through documented system.
2. Increase

profitability

by

reducing

quality

cost

scraps

reworking.
3. Meets customer satisfaction and aspiration.
4. Prevents recurrence of fault and reduce fire fitting.
5. Makes company more competitive.
6. Global recognition.
7. Improve communications through inter linkage.
8. Improves company productivity.
9. Improves house keeping.
10.Focuses on individual development through continuous
training.
11.Ensure achievement of quality policy and its objective.

METHODOLOGY
The methodology opted for the collection of data for this
project report is
1. Secondary sources
2. Primary sources
3. market research
Secondary sources: The information collector about the
profile of the company was collected by various sources like
Internet and Delhi Stock Exchange Library.
Prime sources: In this project the information collated,
basically depends upon primary sources. Interview of various
person was conductive from time to time. These interviews was
conducted

for

marketing

department,

human

resource

department and new projects department.


The information collected was handle with extensive care and
was duly arrange in a set format.

Market Research: A Small market research was conducted in


Faridabad to know the actual performance and brand image of
the Carburettor. A conclusion from the samples is also
mentioned in the project.

MARKETING DEPARTMENT
MARKETING CHIEF

MANAGER
MARKETING (O.E.)

SR. MANAGER
(SERVICE)

MANAGER
MARKETING
(REPLACEMENT)

SECRETARY

TYPIST CUM OFFICE


ASST.

SUP
NORTH (EAST
ZONE)

INPLANT SERVICE
MAN

SUPERVISOR
(EXERCISE)

ASSISTNAT
(DESPATCH)

TRAVELLING
SERVICE MAN

SUP

SUP

(SOUTH ZONE) (WEST ZONE)

TRAVELLING
SERVICE MAN

SUPERVISOR (PAYMENT SUPEVISOR (CASTING


& COLLECTION)
& PRICING)

ASSISTNAT (CUSTOMER
ACCO.)

TRAVELLING
SERVICE MAN

SALE DATA IN 1991, 1992,1993,1994 (BY ACMA REPORT)


FOR

1991

1992

1993

1994

Rajdoot 175 cc

90121

75220

56612

45188

Yamaha Rx 100

75251

71718

68071

64120

Bajaj KB 100

12418

16120

34971

40791

Bullet 350 cc

25031

22178

203281

17283

Explorer

9156

12218

4982

16829

Bajaj Z 80

52448

64537

79040

81049

Hero puch

50680

62248

72551

75525

BY FORMULA ESTIMATION OF MIKCARB


CARBURETTOR
FOR

2001

2002

2003

2004

Rajdoot 175 cc

22530

18805

14153

11297

Yamaha Rx 100

18812

17929

17018

16030

Bajaj KB 100

3104

4030

8742

10197

Bullet 350 cc

6257

5544

5082

4320

Explorer

2289

3054

3745

4207

Bajaj Z 80

6556

8043

9880

10131

Hero puch

6335

7781

9069

9441

Total
Estimated
demand

65883

65186

67689

65623

GRAPHICAL REPRESENTATION OF EST.DEMAND


68000

67689

67500
67000
66500
66000

65883

65623

65500

65186

65000
64500
64000
63500
2001

2002

2004

67689

68000
67000

2003

65883

65623

66000
65000

63890

64000
63000
62000
61000

2001

2002

2003

2004

MANUFACTURING
1538 lacs

2.50%

2.50%

95%
Carburettors

Die-casting

Clutch

23%
36%

41%

Motorcycle

Carburettors & components

Agencies

PRODUCTIVITY ANALYSIS

2.5

2.28

2
1.71

1.69
1.49

1.5

1.36

1.32

1.29

1.1

1.25

1.09

0.49

0.45

0.5

1.19

1.04

0.99

1.18

0.88

0.41

0.41

0.41

0
95-96

96-97

Agreed

97-98

Best

98-99

Average

99-00

Worst

ESTIMATED DEMAND (BRAND-WISE)


25000

20000

15000

10000

5000

0
RAJDOOT

YAMAHA

2001

BAJAJ KB
100

BULLET

2002

EXPLO.

2003

BAJAJ Z80

HERO
PUCH

2004

OUR VALUED CUSTOMER


Welfair Shop
14%

HERO-8 Model
35%
Bajaj-5 model
14%

Endfield-4 model
6%
Kinetic-2 models
2%
EYML Surajpur1Models
4%

EYML FBD
25%

EEAL'S MARKET SHARE (%age)

18

16.8

16.3

16.11

15.5

16
14

11.1

12

11

10
8
6
4
2
0

95-96

96-97

97-98

98-99

EEAL'S MARKET SHARE (%age)

99-00

00-01

EEAL'S SALES TURNOVER ANALYSIS

1800
1531

1600
1400

1634

1567
1457
1172

1211

1200
1000

867

800
600
400
200
0
93-94

94-95

95-96

96-97

97-98

98-99

EEAL'S SALES TURNOVER ANALYSIS

99-00

MASTER RECORDS
APRIL

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

NOV.

DEC.

JAN.

FEB.

MARCH

PRODUCTION

36660

37112

28475

24600

30395

26700

29350

38000

50000

50500

47000

48150

DESPATCH (NOS)

33348

32005

24950

24925

30395

30408

31419

41293

46082

51098

50525

50067

COLL.

EEAL

86.62

157.63

154.01

112.37

107.58

161.99

144.25

108.25

156.70

189.63

158.80

185.14

MIL

64.12

218.58

134.34

106.24

92.20

131.90

144.47

134.59

183.63

161.18

WFS

65.61

57.88

60.08

57.11

60.60

46.28

59.91

63.60

66.53

84.11

78.84

101.41

SALES M/CY.

50

24

26

18

13

37

31

74

63

79

112

262

(NOS) CARB (R)

3099

5099

5899

5699

5399

5099

4399

5199

5599

6999

7099

7299

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

TILL MARCH 00)

(EEAL +WFS)
(CRORES)

12.48

11.49

12.14

15.92

21.42

27.45

27.11

25.16

20.26

27.76

2.31

WFS

4.12

3.71

3.99

3.49

4.94

8.03

8.35

7.89

6.7

8.79

0.73

MIL

3.42

5.29

5.06

6.20

8.48

10.61

14.41

15.33

12.78

CARBS (P)

275940

210772

212254

2865530

364432

445705

479300

491150

380500

444000

37000

(LACS)

TURNOVER

(NOS)
CARBS (D)

37031
263647

219204

215076

288446

357877

443421

486935

483970

386032

444369

CARBS (D) REPL

12890

17540

15911

12982

29736

31436

36904

47674

56716

65969

5498

(NOS)

12890

17540

15911

12982

29736

31436

36904

47674

56716

65969

5498

M/CY SALES

959

625

587

514

497

1108

840

639

443

789

66

(NOS)

MASTER RECORDS
2000-01

APRIL

MAY

JUNE

JULY

AUG.

SEPT.

OCT.

NOV.

DEC.

JAN.

FEB.

PRODUCTION

47606

52125

54570

DESPATCH

46400

52058

44040

225.73

202.63

179.07

WFS

100.76

100.00

86.33

SALES M/CY.

231.88

153.80

190.08

(NOS) CARB (R)

110.24

110.06

77.03

PAST PERFORMANCE

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-Z01
JUNE)

12.48

11.49

12.14

15.92

21.42

27.45

27.11

25.16

20.26

27.76

8.94

WFS
MIL

4.12

3.71

3.99

3.49

4.94

8.03

8.35

7.89

6.7

8.79

2.67

3.42

5.29

5.06

6.20

8.48

10.61

14.41

15.33

12.78

CARBS (P)

275940

21077
2

21225
4

2865530

36443
2

44570
5

47930
0

49115
0

38050
0

44400
0

154301

263647

21920
4

21507
6

288446

35787
7

44342
1

48693
5

48397
0

38603
2

44436
9

142498

12890

17540

15911

12982

29736

31436

36904

47674

56716

65969

14297

959

625

587

514

497

1108

840

639

443

789

459

MARCH

(NOS)
BILLING EEAL

TURNOVER
(EEAL
+
(CRORES)

WFS)

(NOS)
CARBS (D)
(NOS)
CARBS (D) REPL
(NOS)
M/CY SALES

(TILL

Monthly Sales & Purchase of Carburettor & Spare Parts


1999
-00

As
On

Sale
S.No.

MODEL

Apr.

May.

Jun.

Model

897

1224

1596

Rajdoot

826

887

1359

Yezdi

41

83

31

Vijay super

23

35

130

Silver plus

25

143

218

Explorer

61

61

124

Bajaj Z-60

1325

2296

1562

Hero Puch

200

218

344

TVS Super Champ (VMX)

25

19

10

Scooter (XLS)

57

108

11

RX - 100

52

29

12

12

KB - 100/125

13

Bullet -500

14

Sunny Zip

32

42

24

Jul.

Aug.

Sep.

Oct.

No
v.

Dec Jan.
.

Feb.

Mar.

15

Hero Winner

16

Kinetic Pride

13

41

17

H.Gizmo

15

18

Bajaj Chetak

19

K4S

43

17

Total

3599

5099

5599

Ave. Value

457.63

440.2
8

463.84

Sales Value of Carburettor & Spare Parts


Apr.

May.

Jun.

Carburettor

16.47

22.45

25.97

Spares

2.10

2.94

3.11

Float &n Gasket (SPD)

0.53

0.91

0.71

Total

19.10

23.30

29.79

Jul.

Aug.

Sep.

Oct.

No
v.

Dec Jan.
.

Feb.

Mar.

S.No.

MODEL

Apr.

May.

Jun.

1
2
3
4
5
6
7
8
9

Rajdoot
Bullet
Yezdi
Vijay super
Silver plus
Explorer
Bajaj Z-60
Hero Puch
TVS
Super
Champ (VMX)
Scooter (XLS)
RX - 100
KB - 100/125
Bullet -500
Sunny Zip
Hero Winner
Kinetic Pride
H.Gizmo
Bajaj Chetak
K4S
Total

1140
0
0
0
660
0
0
0

1001
0
0
500
0
2840
491
9
0

2540
0
0
220
0
3258
500
0
500

4681
4193
0
0
720
0
6766
991
9

50
0
0
0
0
0
0
0
6
0
2468

0
0
25
0
0
0
160
0
0
200
5904

40
0
0
0
0
50
0
0
144
0
10615

500
90
0
25
0
50
160
0
150
200
18625

10
11
12
13
14
15
16
17
18
19

Jul.

Aug
.

Sep.

Oct.

Nov.

Dec.

Jan. Feb.

Mar.

Total

PRODUCTION & DESPATCH STATUS APRIL 2000


MODEL

RAJDOOT
RAJDOOT 1K1
YAMAHA RX-100
BULLET - 350CC
SILVER PLUS
EXPLORER
TVS XLS
TVS VMS
Z- 80
SPIRIT
KB - 125
KB - 4S/BOXER
SUNNY ZIP
HERO PUCH
HERO SCOOTER
HERO GIZMO
KEL PRIDE
KET SX
LML TRENDY
YEZDI
VIJAY SUPER
DD CHETAK
HONDA
GIZMO - 4S
SAMPLE
TOTAL
MKTG/RNS

PRODU
CTION

DESPATCH
OE

SPD

WFS

11460
0
2115
3780

9160
0
1690
2506

1000
0
0

1140
0
50
800

100
360
9350
6280

100
450
8061
5945

6505
1320
595

6620
1302
400

6160
1302
400

5725

6160

6160

6
10

47606

840

1000

100
450
8901
5945

6
10
100

2396

46400

10
100

42504

TOTA
L
11300
0
1740
3366

PRODUCTION & DESPATCH STATUS MAY 2000


MODEL

PRODUCTI
ON

OE
9160

RAJDOOT
RAJDOOT 1K1

11940

YAMAHA RX-100
BULLET - 350CC
BULLET 500CC
SILVER PLUS
EXPLORER
TVS XLS
TVS VMS
Z- 80
SPIRIT
KB - 125
KB - 4S/BOXER
SUNNY ZIP
HERO PUCH
HERO SCOOTER
HERO GIZMO
KEL PRIDE
KET SX
LML TRENDY
YEZDI
VIJAY SUPER
DD CHETAK
HONDA
GIZMO - 4S

770
3208
200
700

1530
2800
182

100
360
9680
6350

100
450
8281
6706

SAMPLE
TOTAL
MKTG/RNS

DESPATCH
SPD
WFS
1490 1000

820
25
500

1560

200
9000
4217
1550

8290
3825
1887

9841

1530
3620
207
500
100
450
8901
6706

200

200

500

8790
3825
1887
160
3142

160
4170

TOTAL
11650

3142

140

52125

45803

1490

4765

52058

REVISED BUSINESS PLAN


CUSTOMER

PRODUCT

BUDGET
QTY.

BUDGE
T QTY.

BUDGET
QTY.

2000-01

2001-02

2002-03

70000

63000

56000

18000

18000

18000

15000

18000

18000

58000

64000

70000

84000

60000

54000

20000

24000

18000

19000

20000

1000

1000

1000

Hero Puch 63cc

66000

54000

50000

Hero Scooter

18000

12000

12000

MAL (L)

Hero
Gizmo/Pacer

24000

21000

19000

KEL (PUNE)

Kinetic SX

57000

55000

50000

Kinetic Pride

Kinetic Honda

36000

43000

50000

EYML (FBD). Rajdoot


(OE)

175

Rajdoot
(SPD)

175c

EYML (S)

Yamaha Rx-100

BAL (A'BAD) Bajaj Spirit


Bajaj - 4s
BAL (PUNE)

Bajaj Z-80 (OE)


Bajaj Bravo

EML (C)

Bullet - 350cc4s
Bullet - 500cc 4s
Explorer/S.Plus

MB & S (G)

KHML
(PUNE)

LML
(KANPUR)

LML Trendy

12000

30000

11000

LML Scooter XPress

6000

12000

KB & S

Kirloskar
206cc

21000

50000

W/SHOP (F)

Rajdoot 175cc

16000

15000

16000

Bullet 350cc

11000

10000

11000

Z-80 (O)

26000

25000

26000

Vijay Super

500

500

500

Yezdi

500

500

500

Hero Puch

5000

5000

5000

100ccHero
Honda

10000

15000

4000

8000

30000

40000

50000

4000

4000

4000

B&S

TVS Champs
Bajaj Chetak
BajajKB100/125
Explorer/S. Plus
Yamaha RX-100
Total

570000

659000

700000

PRICES OF THE VAROIUS MODEL CARBURETTORS


SIL PLS

WEF

16.11.96

5.8.98

EXPLR.
(THRU
WFS)

RS

320.00

335.00

SIL PLS

WEF

4.3.1986

1.9.87

22.10.87

22.12.87

1.8.88

19.10.88

20.1.89

1.07.90

01.10.90

23.3.93

19.8.93

1.10.94

EXPLR

RS

120.00

124.00

135.00

130.00

140.00

157.60

167.60

172.00

179.60

211.30

205.00

216.00

WFS

1.1.1995

1.9.95

RS

225.90

250.00

WEF

1.7.1990

1.10.90

112.91

1.9.94

1.6.95

1.1.96

28.5.96

8.12.97

1.2.98

RS

175.10

182.00

195.00

207.00

214.50

227.00

232.00

240.00

245.00

WEF

30.11.98

10.9.99

RS

442.00

305.00

WEF

15.7.98

18.2.98

RS.

264.00

257.00

WEF

27.16.91

01.9.91

01.8.94

01.4.95

01.4.96

RS.

182.00

201.00

215.00

222.00

230.00

WEF

26.2.00

RS.

305.00

PRIDE

KEL-SX

LMS

TVS

XMCL

CYGNET
/SPIRIT

WEF

30.7.1997

01.8.97

1.17.99

1.10.99

1.1.2000

RS

234.00

246.00

241.00

244.57

244.57

KB-100

WEF

30.1.1995

01.1.96

RS

385.00

425.00

HERO
PUCH

WEF

01.6.1988

01.1.89

01.8.89

01.7.90

01.10.90

1.10.91

1.10.92

1.9.93

1.6.94

1.9.94

1.12.94

1.4.96

RS

124.95

156.00

165.00

170.00

177.00

190.00

198.50

190.50

192.45

205.00

208.00

222.00

HERO(S)

WEF

18.5.1995

1.4.99

RS

455.00

375.00

HERO
GIZMO

WEF

1.7.1990

28.4.91

09.6.93

23.7.94

10.9.94

1.12.94

1.1.96

09.1.95

21.11.96

27.8.97

1.1.98

RS

105.00

177.00

198.50

196.00

205.00

208.00

226.00

231.00

232.00

247.00

250.00

BULLET
350CC

WEF

20.3.1985

09.09.87

31.10.87

02.4.88

26.10.88

1.6.89

17.9.92

1.10.92

17.4.94

1.10.94

1.1.95

1.9.95

RS

231.00

250.00

240.00

244.00

258.00

273.00

310.00

330.00

317.00

334.00

348.00

383.00

WEF

01.4.1996

01.6.96

01.10.97

1.5.99

RS

393.00

401.00

423.00

430.00

WEF

28.8.1987

01.08.88

01.10.92

17.4.94

1.10.94

1.1.95

1.9.95

01.4.96

01.6.96

1.10.97

RS

301.50

313.30

350.00

339.00

357.00

369.00

410.00

413.00

421.40

456.40

BULLET
500CC

MARKETING
The product manufactured by ESCORT Auto Components Ltd. is

Carburettors, Oil Pumps, Clutches, which is an Industrial


product.
Industrial marketing is very much different from other consumer
products marketing. In Industrial Marketing the product is
consumed by another manufactures so the target is the other
Automobile manufacturer.
Definition- When the marketing efforts are towards an industry
or a whole, rather than individual consumer like you and me is
Industrial Marketing.
For marketing of carburettors EACL practices two types of
marketing concepts: 1. Original Equipment (OE) Marketing
2. Replacement Marketing

Concept of Original Equipment (OE) marketing (and how it


is done)
Original Equipment marketing is done in a very different
fashion as compared to other marketing practices.
The OE marketing followed by EACL is done in a certain
fashion. A high level team, which consists of Plant head,
Manufacturing

department

head

(automobile

engineer)

Marketing head and the Planning head is made.


This high level team firstly does its home work and sets
accordingly its target to approach on the basis of market
Intelligence system. This high level team approaches various
prestigious two wheeler manufactured like Hero Honda
Bajaj etc. The team negotiates with the other company high
level officials about the product they want to manufacture
referring to particular model. There is now, negotiation goes on
various topics like the design, quality, material, accessories,
spare parts. Etc.
After all the above points are finalised, outline of that project is
prepared, this goes to the costing department of the two

companies. They evaluate the cost of the product, quantity they


want. On the basis of this the price is negotiated between the
two and is final format is prepared.
Now the planning is final and a deal between the two is
fianlised mentioning the above key issues. The automobile
manufacturer releases the design of the Carburettor to the
company. These designs are analysed in EACL by highly
qualified engineers. The changes in the design are done if
required.

EACL then manufactures a sample Carburettor

according to the design given this sample is dispatch to the


automobile

company

for

test.

The

performance

of

the

Carburettor is tested and is passed by the company.


The performance and problem of the product is timely check by
the service department.
Concept of Replacement Market:
It is practically seen that Carburettor of vehicle has certain life
expectancy. Constant wear and tear of Carburettor occurs with
usage of vehicle. Therefore in order the maintain optimum level
of fuel mileage and efficient running conditions of the vehicle,

it become essential to replace worn out Carburettor. For


purchasing new Carburettor the owner of the vehicle go to
authorised workshop of the dealer of vehicle where he by
genuine Carburettor or go to local workshop to get sub
standard/duplicate carburettor. So replacement market is a
market

which

consists

substandard/duplicate
manufacturer.

of

genuine

Carburettor

Carburettor

produced

by

and
local

MARKETING STRATEGY
PRODUCT
Under Replacement Marketing
Company manufacture carburettors of those vehicles, which has
high sales and also has a high population in the market. Higher
the sales/population more the number of users, more the number
of Carburettors, demanded by the user because of wear and tear
of the product.
At the same time company also wants to manufacturer
Carburettor of those vehicle models in which the competitors
are lesser. (For e.g. company manufactures Carburettors for
Enfield motors in which only two competitors are there).
Under OE Marketing
Products

are

manufactured

manufacturers. They

give

according
the

to

the

automobile

design to the carburettor

manufacturer and accordingly product is manufactured.

PRODUCT LINE
Pressures Die Castines:
EACL is geared to deliver a wide rang of Die cast components
to zero draft angle, with the Back up of a precision tool room.
EACL manufactures a side range of components for the Rajdoot
175 cc, Yamaha RX-100 and Yamaha 350 cc vehicles to catering
to it own needs.
Clutch Assemblies:
Made with technical assistance from M/S Fuji of Japan, their
high-powered clutch assemblies are fitted in Rajdoot 175 cc and
Yamaha 350 cc and Yamaha 350-cc range of motorcycles. Major
components for the Yamaha RX-100 are also manufactured at
EACL.
Spokes and Nipples:
With technical know-how from M/S Hoshi of Japan, EACL is
one of the leading manufactures of swaged spokes and nipples.
The Rajdoot 175 cc, Yamaha 350 cc, and the Yamaha RX-100cc
are equipped with spokes and nipples frame EEAL.

Mangnetos:
The latest addition to the EEAL range of products is the high
powered flywheel Magneto, to be Manufactured under technical
collaboration with leading Japanese collaborators.
Carburettors:
'MIKCARB' fine Carburettors are manufactured with technicalhow from M/S Mikuni of Japan. Designed for law commission,
these carburetor ensure high efficiency and better fuel Economy
in addition to festurs such as law attrition, longer life and better
pick up. The present range includes carburetors for the Rajdoot
175 cc, Bullet 350 cc, Yezdi 250-cc Vijay Super Bajaj Z-80,
Kinetic Spark, Hero Puch, Silver plus, Explorer, Yamaha RX100 cc.
Product Profile:
There is no such thing as "suction" in engines. Don't suck air
and fuel into the cylinders, infect, Air and fuel flaw into an
engine because the pressure in the cylinders is lower than
atmospheric Pressure. As a result, atmospheric pressure forces
the air/fuel mixture into the engine like a giant Hand pushing on

the corroborator. Our study is concerned here with pressure


differential. It's a Simple case of finding the path of latest
resistance. The carburetor intake stroke (caused by downward
Motion of piston) creates the flow. .
Function Of Carburettor:
Carburettor performance the following three function:
a) The function of Carburettor is to produce combustible air
fuel mixture by breaking fuel into tiny Particles in the form
of vapour a process known as atomisation.
b) It mixture by the fuel with air in a proper ratio and to deliver
into the engine.
c) To control the engine output by regulating the amount. An
ideal mixture burns without leaving any excess air or fuel and
is the key efficient engine performance. The ratio of fuel and
air is called the mixture ratio and is generally expressed by
the weight proportion. The erratically, the amount of air
required for complete combustion of 1 gram of fuel under
normal condition is 15 grams.

Mixture Ratio = 15 grams of air 1 grams of fuel


The ideal air-fuel ratio is 15:1 i.e. 15 grams of air for 1 grams of
fuel. The ratio however, varies from as 1:1 during cold starting
to 8:1 during idling and 14-16: I during cruising. For any
Vehicle where fuel consumption as lowest, which is normally
40-50 kms Per hour.

PRICE
Under Replacement Marketing
The price of the products is defined on the basis of competitors.
Under this concept the price for competitors is offering is
considered. The company always keeps the price slightly lower
than, what competitors are offering. A pre study is done in
which all the costing part of the product is done. Price is also
text on the basis of BEP (Brake Even Point) analysis, company
always wants to keep higher profit margin, but also considers
the profit margin with which they can compansate with . Price
with also fixed up on the basis of decision of volume sales.
Under OE Marketing
Price factor is negotiated between the two companies. There is
no pre define format for asserting the price. The cost /accounts
departments of the both the companies negotiate on the price
factors. The collective bargaining between the two takes place.
They also consider the volume of quantity the company wants.

PRICE MOVEMENT - MIKCARB CARBURETTORS


RAJDOO
T

01.4.87
202.99

1.10.87
209.99

1.1.88
215.99

1.5.88
227.54

1.8.88
234.97

01.6.89
242.63

9.4.90
246.48

WEF
RS

01.4.198
6
202.00
1.6.92
292.00

1.11.92
296.20

1.4.94
286.20

3.10.94
297.95

1.1.95
319.00

2.4.96
329.00

1.7.96
334.00

1.2.200
0
350.00

RAJ(SP.D
)

WEF
RS

31.3.98
431.00

RX-100

WEF
RS`
WEF
RS
WEF
RS
WEF
RS

24.9.91
336.00
1.4.98
782.00
22.1.98
128.00
1.7.99
225.00

1.2.200
0
438.00
1.4.93
667.00

1.6.95
660.00

5.4.96
670.00

1.7.96
680.00

1.8.88
140.00
1.1.200
0
228.48

1.10.88
160.00

1.4.89
165.00

1.4.90
170.00

1.7.90
182.00

2.11.91
195.00

WEF
RS
WEF
RS
WEF
RS
WEF
RS

24.11.97
256.80
30.1.95
425.00
22.4.96
234.00
11.2.96
207.00

RX-100
(SP.D)
M-80

M-80
(SP.D)
KB-4S
S.ZIP
Explorer

WEF
RS

1.7.88
135.00
1.10.99
226.16

26.5.96
470.00
1.8.97
246.00
1.8.97
240.00

01.7.90
251.33

1.10.90
256.63

1.1.91
265.10

16.9.9
1
280.30

1.9.94
207.00

1.4.95
2.13.00

1.5.96
225.00

1.8.97
240.00

S.No.

Model

1
2
3
4

Rajdoot
Bullet
Yezdi
Vijai
Super
Silver
Plus
Explorer
Baja M80
Hero
Puch
TVS
Astra
Scooty
RX - 100
KB - 100
Bullet 500
Sunny
Zip
H.
Scooter
K. Pride
H. Gizmo
KB-125
KB-4S
Bajaj
Chetak

5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Price List
MIKCARB CARBURETTOR
WITH EFFECT FROM 15.04.99
Transfer Dealers Nett Ass.
Price
Value
421.00
575.00
495.69
421.00
580.00
500.00
390.00
570.00
491.38
390.00
570.00
491.38

BED 16%
79.31
80.00
78.62
78.62

260.00

365.00

314.66

50.34

260.00
260.00

365.00
338.00

314.66
291.38

50.34
46.62

260.00

331.00

285.34

45.66

260.00

345.00

297.41

47.59

260.00
755.00
523.00
515.00

345.00
1050.00
690.00
690.00

297.41
905.17
594.83
594.83

47.59
144.83
95.17
95.17

260.00

345.00

297.41

47.59

415.00

570.00

491.38

78.62

260.00
260.00
523.00
563.00
210.00

345.00
345.00
690.00
810.00
275.00

297.41
297.41
594.83
698.28
237.07

47.59
47.59
95.17
111.72
37.93

We will give a discount of 5% on Dealers Network of Rs. 275.00

MARKET SEGMENTATION AND


DISTRIBUTION
CHANNEL
EEAL'S marketing division concentrates on following activities:
1. Supply to original equipment manufacturer (OEM)
2. Supply to replacement market.
a) Supply to welfare shop (major dealer).
b) Supply to spare part division.
SUPPLY TO ORIGINAL EQUIPMENT MANUFACTURER
(OEM's)
The automobile industry depend to large extend on the ancillary
industries for the supply of numerous parts and components
needed for assembly of vehicle, therefore EEAL'S major
emphasis is laid on one of its product line consisting of
carburettors manufacturing. The company makes Carburettor for
its own group and other Bi-Wheelers manufacturers as per their
specifications and design requirement. For example Carburettor

is manufactured for Bajaj Auto Ltd. Enfield India Ltd. Majestic


Auto Ltd., EYML, etc.
SUPPLY TO REPLACEMENT MARKET
EEAL also supply Carburettor and no of components and spare
parts for the replacement of worn out Carburettor or parts to
keep vehicle roadworthy.
DISTRIBUTION CHANNEL:
For the distribution and selling of Carburettor and its spare
parts. There is a wide networking of dealers spreaded all over
the country. There are 65 dealers in all over the country.

PROMOTION
Under OE Marketing
Company takes up promotion into ways.
1. Company to company promotion
2. National and International exhibition
Company to company promotion:

In the first method

companies higher officials market the product. The higher


officials

(including

plant

head,

marketing

head

and

manufacturing head) approaches the various companies and


demonstrate them their products and what all they can
manufacture according to their requirements. At the same time
these officials convenience them about the quality and price of
the products and assure them for quality of service.
A special Service Cell is there in the company to look after the
product, which is been used, in the automobile company. They
duly check the performance of the product and check if any
problem arises.

National and International exhibitions: company promote


their products in the exhibitions held in India and abroad.
Recently company had participated in and exhibition held in
China named GUANGHZO which was on auto component
products this was held in November last year. Participation in
this exhibition was done to cater international customers.
Company has also recently received an order from a Japanese
automobile company.
Under Replacement Marketing
The product is promoted by the joint effort put in by the
company and their dealers.
By the company
Company has presently taken up a promotion camp in Patiala
(Punjab,India).

Where

they

launched

the

Bajaj

Scooter

carburettor. Patiala was chosen as the region of launch because


of the simple fact that there is the largest population of Bajaj
Scooter. So larger the number of Bajaj Scooter large the number
of repair/ maintenance required. In this camp company
organised the workshop camp for mechanic were the entire

major mechanic invited and the product was demonstrated to


them. A trial test was also given on Bajaj Scooter to show them
the actual performance of the product.
Free sample was given to all the mechanics to get satisfaction in
terms of quality of the product.
As major dealer of the company Welfare Shop in Faridabad is
taking up various promotional camps to promote the product.
Company gives extra benefit to the dealer to markets this
product like. Company was offering dealers a Target based
commission on every sale of 30 Carburettors Company was
giving 2 Carburettor free.
All the years company introduces one are the other promotional
schemes for dealers like discounts pricing These are given on
the basis market conditions (sales).

MARKET SURVEY
Market survey is very important to decide method to estimate
the demand of 'MIKCARB' Carburettor in the replacement
market. Market survey is very necessary to have practical
approach to get more practical results. For my project I did
market survey with specific questionnaire and personal meetings
with mechanics and supervisors and workshops of authorised
dealer

of

Bi-wheller

manufacturing

company

to

who

'MIKCARB' is supplied.
For market I took size 0.5
FINDINGS OF MARKET SURVEY
Findings of markets survey are as follows:
1. The main problems, that are concerned with MIKCARB
Carburettor are overflow, access of air which result is low
average over-race and starting problems. It is seen that
overflow problems is very frequent.
2. Since Carburettor performance is very good and age is very
high so rate of replacement per year is very low.

3. Average rate of MIKCARB Carburettor is 10 years.


4. 50% of vehicle Z-80 and Hero Puch are fitted with
MIKCARB and 50% of fitted with SPACCO. It is generally
observed that MIKCARB is slightly better than SPACCO.
5. It is also important to note that awareness about Carburettor
and its function is very low about 5%.
6. Due to lack of awareness most of the customer 40-50 go to
the local workshop where they get duplicate/substandard.
Carburettor generally at the time of replacement around 2530% go to authorized dealer where they get genuine
Carburettor and also good number of people run their vehicle
with worn about Carburettor as long as they can.

METHODOLOGY OF DEMANDS
ESTIMATION
On the basic of market survey and data of Bi-wheeler sales from
ACMA

report

(Automobile

components

manufacturer

association of India) the methodology for demand.


Estimation of MIKCARB Carburettor in replacement market is
explained further. First there are some assumptions which I have
considered.
ASSUMPTIONS:
1. I have considers the age of Carburettor 10 years and after 10
year it is replaced.
2. I have assumed that only 25% owner of the vehicle go to the
authorised

dealer

where

they

get

original

MIKCARB

carburettor at the time of replacement.


3. I have assumed that age of a vehicle is not more than 20 year
so replacement of a carburettor is done at one time only.

ESTIMATION OF DEMAND
To estimate the demand of the "MIKCARB" for the further i.e.
for 2001, 2002, 2003,2004, we will consider the sales data for
the year 1991, 19921993,1994 respectively of the bi-wheeler in
which MIKCARB is used originally because carburettor of these
vehicles will be replaced after 10 years.
Before going any further we will keep in mind following points:
1. 50% vehicle of the Hero Puch and Bajaj Z-80 are fitted with
MIKCARB carburettor and 50% are fitted with SPACCO
carburettor.
2. There are 18 bi-wheelers in which MIKCARB carburettor is
used but we will consider only those whose sales were
considerably good in 1991, 1992, 1993, 1994, and mostly
which are still popular in the market.
Therefore estimation of demand of MIKCARB carburettor we
will consider following models:
a) Rajdoot 175 CC
b) Yamaha RX 100 CC

c) Bajaj KB 100 CC
d) Enfield Bullet 350 CC
e) Explorer 50 CC
f) Bajaj M 80
HENCE THE FORMULA:
Estimation demand of MIKCARB carburettor for 2001 in
replacement market
= 25% OF SALE OF Rajdoot motorcycle 1991
+ 25% of sale of Yamaha RX 100 CC in 1991
+ 25% of sale of KB 100 CC in 1991
+ 25% of sale of Bullet 350 CC in 1991
+ 25% of sale of explorer in 1991
+ 50% of (25% of sale of Bajaj M80 in 1991)
+ 50%of (25% of sale of Hero Puch in 1991)
Similarly we can estimate demand for 2002, 2003, and 2004.

MARKETING INTELLIGENCE SYSTEM


Marketing intelligence system is a system under which, an indepth study of market is done. In which one gather information
about its competitors, and future demand potential is analysed.
According to it one set his future strategy. It is an ongoing
process.
In Escort Auto Component Ltd. there is market Intelligence
team which consists of Engineers and Marketers. These people
are spread all over India, where all the dealers are. Now from
these process information of facts about market and competitors
is extracted information related to.
Competitor moves to market their products.
What all other new products/ technology introduces?
In What all other area competitors are venturing into.
What are the reason for success/loss of the competitors
products
What are the pit holes of the competitors

What is their performance?


What is their strategy related to price, distribution.
What benefit other company is giving to dealers to
promote sales.
What all promotion tools they are following.
What is the sale for competitors, in which model?
A SWOT analysis of the competitors
What is the customer response to various bands.
What customer wants/looking for
What problems they see pacing
What is the satisfaction level of customers in terms or
brands?
What is their standing in the market.
In other words an eagles eye is kept on the market movement A
very in-depth study is done timely. After collecting these facts,

they are set accordingly in a set format. Then these facts, data,
information is analysed and handled very carefully and
intelligently. The or department which are mainly included.
Marketing
Projects
These people analyse these informations and concludes the
followimg.
In what all market company can venture into
How much strong they are in the market.
How they can improve marketing strategy in future.
Now where they can give a cut adage to the competitors
products.
To what all competitors they can fight too and how.
What all other products they can introduce to targets market.
On analysing the above it future market strategy for Escort Auto
Components and in prepared.

CRUX OF EACL MARKETING AND COMPANY


PERFORMANCE
PHILOSOPHY

TOTAL SATISFACTION
TO
(1)

CUSTOMERS

(2)

EMPLOYEES

(3)

SHARE HOLDERS

(4)

VENDORS

(5)

COMMUNITY

Q.C.D.D.A
Q

QUALITY
PRODUCT
SYSTEMS
SERVICES

COST
COMPETITIVE PRICE
COST DOWN
MFG. OVERHEADS
SALES & ADMN.
MANPOWER
INTEREST
INVENTORY DOWN

DELIVERY
TIMELY
LOSSES REDUCTION

DEVELOPMENT

PRODUCT
TECHNICAL TIE UP
SELF SUFFICIENCY IN R&D
COMPETITIVE SPECIFICATIONS
FASTER DEVELOPMENT
DIVERSIFICATION
MARKET
EXPORT MARKET
NEW CUSTOMERS
TRADING BUSINESS
A

ATTITUDE
POSITIVE
CULTURAL CHANGE

QUALITY IMPROVEMENTS
1. ISO 9001 certification Nov. 98 TUV-Germany
2. Cross functional teams
3. Self inspection by operators
4. Few examples of counter measures
4.1

Electric screw drivers


Introduced
Better emmission control
Leakages checked
Improved consistency

4.2

Presetting masters introduced


Less setting time
Less wastages

4.3

Material handling pocketed trays


Less damage
Less rework

4.4

REWORK/REJECTION DISPLAY/DAILY DISCUSSION


IMPROVE

FOCUS
4.5

SPR
(STRAIGHT PASS RATIO)

JIGS fixture/gauge caliberation started


Less rework
Less rejection
Consistent quality

4.6

Storage improved

4.7

Critical operations - process capability improved

4.8

Vendor upgradation

8 major vendors
Process capability
System improvement
Tools/gauge caliberation
Cleaning
Vendor rating started

4.9

Contamination level reduction

1. New washing cycle introduced


2. Washing stage added at mid assembly. stage.
3. Ultrasonic cleaning agent PH value maintained (checked 2times/day)
4. Handling tray periodical washing
5. Cotton knitted hand gloves usage discontinued
6. All opening in assembly. line closed
7. F test & overflow test stands additional filters installed
8. New digital pilot circuit & main circuit test stands installed..
9. New digital pilot circuit & main circuit test stands installed

COST
PRODUCT AT COMPETITIVE
PRICE

COST DOWN ACTIVITIES

MATERIAL COST
98-99

99-2000 SAVING

EXCESS CONSUMPTION 4.79% 2%

2.79%

REDUCED
NEGOTIATIONS/S.O.B.
CHANGE
VENDOR

0.6%

CONSOLIDATION
PACKING
600

MANUFACTURING OVERHEADS
532

500

TOTAL MANPOWER REDUCTION


365

NOS.

400

330

300
200
100
0

1998-99 (END)
ACTUAL

OCT. 99

2000-2001
(TARGET)
TARGET

MANHOURS/CARBURETTOR-PRODUCTION SHOP
MULTIMACHINING
MULTI SKILLING/REDEPLOYMENT
SELF INSPECTION

1.2

1.17

HRS/CARE

1
0.8

0.67
0.5

0.6
0.4
0.2
0

1998-99 (END)
ACTUAL

OCT. 99

2000-2001 (TARGET)
TARGET

SECURITY/JANITORIAL/GARDENING ON CONTRACT

Savings
OVERTIME REDUCED

Nil After Oct.

CUTTING TOOLS

20.72%

CONSUMABLES

10.50%

OIL & LUBRICANTS

16.00%

POWER/FUEL

16.00%

WELFARE EXPENSES

25.00%

SALES ADMINISTRATION OVERHEADS


SAVINGS
TRAVELLING
COMMUNICATION
PRINTING/STATIONARY
PROFESSIONAL CHANGES
INSURANCE
PACKING/FORWARDING

14.00%

INTEREST COST DOWN


Sale of non performing assets
Apox. Rs. 100 lacs
Inventory from 56 days to 45 days
Reduction by 20%
DELIVERY
Straight pass ratio improved from 80% to 90%
Losses reduction
Daily monitoring /discussions /countermeasures.
Downtime due to material/tools/power setting reduced by 10%.
Absenteeism reduction from 17% average to 14% reduction by
17%.
Daily production meeting for planning & execution.
PRODUCT
Technology the up
Oil pump/carburettor discussion on
Self sufficiency in R& D

A. equipment added
Chassis dynamometer
Co equipment volume check
Equipment planned
Engine dynamometer
B. Manpower added from 7 to 12 addition - 71%
C. R&D organisation tie-up from Japan - under discussion
For

training/design

up

gradation/quality

up/process

improvement
COMPETITIVE SPECIFICATION DEVELOPMENT BY
MIKUNI TRAINED ENGINEERS AT EEAL
Kinetic Motors (scooter) 9% better fuel efficiency over Keihen
(kinetic Honda)
Bajaj z - 80 better fuel efficiency over Spacco.
1 st Indian oval venture carburettor developed by EEAL
EACL down draught carburettor for Bajaj Chetak - 10% better
fuel efficiency over Spacco.

Import substitute for Bajaj boxer 67% cheaper than Keihin


Modified Rajdoot with cat. con. low co carburettor to meet e
2000 norms.
Modified carburettor for enfield to meet 2000 norms.
DEVELOPMENT
Started ISE PF 3d modeling/cad system
New body, carburettor development times less than 10 months.
Modified body, carburettor development times less than 5
months.
PRODUCT DIVERSIFICATION PLANS PHASE - I
A. Oil pump
B. Chain Tensioner
PHASE - II
A. Fuel Injection
B. Throttle Body
C. A.I.S.

MARKET
Development7.2.1 New Customers - Carburettors - 1999-2000
A. Two Wheelers
1. Bajaj Auto Ltd.

M80 E2000

2. Bajaj Auto Ltd.

Spirit

3.

Bajaj

Auto

Ltd. Chetak/Super

(Spares0
4. Bajaj Auto Ltd.

Bravo (Under Dev.)

5. Kinetic Motors

Kinetic Honda (Zx/Et)

6. Kinetic Motors

Scooterrte-Sx

7. Lml

X-Press (Under Dev.)

8. Hero Honda (Spares)

Motorcycle (Under Dev.)

B. Stationary Engines
1. Birla Yamaha
2. Briggs & Stratton
3. Greaves & Cotton

Generators (Under Discussion)


Generators (Under Discussion)
Enerators (Under Discussion)

EXPORT MARKET
China

Carburettor Samples Approved

Egypt

Carburettor Samples Under Test

TRADING BUSINESS
Fuel Cock For All Two Wheelers
Focus On Advani & Philips
Additional Agencies Under Discussion

Almonard Fans
TATA MIG WIRE
CULTURE CHANGE
ORGANISATION CULTURE CHANGE SURVEY
18

18

17

16

16

16
14

14 14.1

14.1
13

17

16
14.5

13

14.2

10

10

11

11

10

10

13.9

13
12

12

16

8
6
4

3.6

3.7

INDUSTRIAL LOW

EEAL

EXPERIMENTATION

COLLABORATION

AUTONOMY

PROACTION

AUTHENTICITY

TRUST

CONFRONTATION

OPENNESS

INDUSTRIAL HIGH

ATTITUDE

Steps Taken To Improve EACL Ocia Pace Profile


Openness
Get-togethers
Help In Personal Crisis
Suggestion Scheme
Job Rotation
Provocation
Training (Skill Upgradation)
All Level Involvement In Business Restructuring
Management Review Meetings/Department Review Meetings
Frequent Customer Visit
Collaboration
Cross Functional Teams
Role Modeling
Participateve Goal Settings
Motivation/Recognition Of Good Work
Ownership

Awareness & Training


Competition
Q.C.D.D.A.
1999-2000

2000-2001

2 MAN DAY / YEAR


PERSON

4 MAN DAY / YEAR


PERSON

NEW WORK PRACTICES


I.E. Norms
Self Inspection
Autonomous Maintenance
Multi Machining
Multi Skilling (Redeployment)
Self Material Handling
Self Setting
Tpm/5s/Group Activities
BODY MACHINING
Critical Parts Machining
Jets Machining
Inspection & Testing Facilities
R&D Facilities
Training Facilities
Computerisation

ORGANISATIONAL STRUCTURE OF EACL


EXECUTIVE DIRECTOR

MARKETING
DIRECTOR

PERSONAL
ADMINISTRATION

ASSOCIATE
DIRECTOR

FINANCE DIRECTOR

GENERAL MANAGER
(OPERATION)

QUALITY SPOKES & NIPPLESMAINTENANCE

TOOL

CARBURETTOR

CHART ON 5 YEARS STRENGTH


Manag
er

Superv
isor

Staff

Worke
rs

Casual
s

Traine
es

Appre
ntices

Mar.96

22

66

109

29

135

26

Mar.97

28

63

98

196

125

29

Mar.98

24

68

105

193

133

25

Mar.99

32

67

109

191

113

23

Mar.00

25

56

69

173

125

11

Total Employees strength


March 1999 535
January 2000-436
January 2000 (Nov) - 414

HR FUNCTIONS
Apart

from

putting

inputs

(Human

Resource),

planning,

organising, directing, collecting and look at the outputs. HR


department has to lake up training development of employees,
solving their problems, welfare activities, salary and wages,
grievance handling, setting disputes, taking disciplinary actions,
collective bargaining between company and worked union,
employees morale. HR department has to see to all the
employees. HR department of EACL treats them as their family.
In which coring is also done at the same time if needed scolding
is taken up. We are like Mother and they are over children
says the company personnel chief.
To maintain above various programs is taken up by HR
department.
1. Human resource forecasting and planning
2. Employment and related facts
3. Training and Development of employees
4. Manager development programme
5. Employee benefit, services and welfare
6. Handling employee problems
7. Labour relation
8. Communication program

COMMUNICATION PROCESS
MESSAGE

SENDER

MESSAGE

ENCODING

MESSAGE

CHANNEL

MESSAGE

DECODING

NOISE
FEEDBACK

RECEIVER

TYPES OF COMMUNICATION

ON THE BASIS OF RELATIONSHIP

FORMAL

INFORMAL

ON THE BASIS OF EXPRESSION

FORMAL

INFORMAL

WRITTEN

ON THE BASIS OF DIRECTION

DOWNWARD

UPWARD

HORIZONTAL

COMMUNICATION BARRIERS
In this company communication barriers have been classified
into three categories "Barriers arising from the fact that
individual are involved in Communication and they differ from
one another because of their different geographic, economic,
social background etc.
These

barriers

may

be

called

pre-existing

barriers

to

communication" which a company inherits because they are not


common in society.
Barriers arising from the company's climate which tend to
satisfy communication. These include: 1) Fears
2) Poor Supervision
3) Insincerity & Lack Of Confidence As Inter-Related
MECHANICAL BARRIERS
Mechanical barriers are connected with technical implement in
the way of communication with in a company these comprise

barriers

arising

out

of

organisation

structure,

where

responsibility and authority are not properly assigned.


OTHERS:
These comprise barriers arising out of geographical distance,
lack of time from communication and lack of training.
To these may also added:
1. Personal Barriers
2. Semantic Barriers
3. Psychological Barriers
4. Physical Barriers
From the study of above cited organisation structure, I came to
know that it is professionalism and standardised was also up to
the mark for a small organisation, like EACL in the process of
delegation of authority upward and downward communication is
required because there is creation of a principal of subrogation,
creation of authority and responsibility relationship.

1. DOWNARD COMMUNICAION
As it is very clear from the chart that the head of concern
Managing Director or the Board of Directors. The policy
formulation, rules and regulations standing order organization
policy,

policy

regarding

expansion

and

development.

Modernised renovation, promotion and transfer, wage and salary


administration etc. are formulated by Board of Directors, which
is later on communicated to the functional managers. After it is
circulated through circulars, notice by making policies and
office notification and other work, instructions, passing of
commands, controlling is communicated from top of bottom. It
is called as downward communication, which is prevailing in
the organization under study. However there is minimum
confusion and completion in the communications system
because of its lower number of employees and the simplicity of
the system, most of the instructions are passed away orally face
to face. Telephone is also used for this purpose. However in the
computerized accounting department is operating modern
techniques of communication.

2. UPWARD COMMUNICATION
It may be defined as a reporting system from bottom to top and
in the response of the process delegation of authority with the
delegation

of

duties,

responsibilities,

accountability

and

authority. The process of getting the things done starts. After the
stipulated period and providing all the essential aids to the
employees, they are assured about their performance. So it is the
second aspect of delegation. The supervisor or foreman reports
the assistant manager about the progress made by the
employees, problems faced shortage of raw material, individual
performance report and the other related aspect of working
environment. The necessary steps are taken by the assistant
manager to improve the situation. So the function in the
organisation hierarchy can be accomplished with the help of
communication system. Grievance handling is also with the help
of upward communication in the organisation. There is best mix
of upward or downward communication.

3. SCALER COMMUNICATION
As from the organisation structure it is very clear that the
company is managed through the professionally qualified and
skilled managers. Scalar communication means the transmission
of ideas, emotions and sentiments between he managers
enjoying equal status. Conference, meetings, management
games are some of the examples which are used in EEAL. The
activities of the organization are interlined. So, they need
cooperation,

personnel

and

finance

departments

are

interdependent. Any new change in the organization policy,


modification in the working, change in performance budget.
Change in organisation policy must be informed to the entire
department and their consent must be obtained. It is possibly
only when they sit together to discuss on various issues and all
this happens in EEAL.
4. WRITTEN & ORAL COMMUNICATION
In EEAL. There is best mix of oral as well as written
communication.

By

the

top

management

mostly

written

communication is used because in policy formulation, passing

on instructions, divisions of various departments, organizational


relationship among the different levels of managers, it is almost
written.
Matter should be written to create a documentary relation among
each other. While at the lower level oral communication is used?
There is a relation of superior and subordinates which is almost
completed by passing on the instruction applying and receiving
the communication from the employees. But in the company
20% of the total communication at the lower level is written and
rest is oral. The written communication may include letters,
memos, and office notification, showcase notice and the charge
sheets.

At

the

top

level

the

examples

of

the

written

communication are minutes, annual reports etc. the company is


printing its half yearly and newsletter every month.
5. REPORTING SYSTEM
Reporting may be defined as communicating the progress report
made by the lower level to the higher level. In this way
reporting is the feedback of the assigned objectives. Reporting
is an important aspect of the business communication. In the

organisation under study, reporting system is very popular and


effective performance of the employees is totally based on the
reporting system. Supervisor and foreman report to assistant
manager and assistant manager report to deputy manager. In
EEAL controlling and reporting are interdependent rewards and
incentive scheme. Promotion and transfer are rewards of special
increments assigned to alignment to duties, enrichment of job is
totally based on reporting system. It is prepared in a printed
format issued by the company in which the particulars are
furnished regarding each and every employee. Although
reporting system is a written type of communication but it is
playing most important role in maintaining law and order,
discipline, punctuality and efficiency of the company.
6. CONTROLLING
Controlling is the best but not least function of the management.
It controls and checks the information. Control may be defined
as controlling according to planning and taking corrective
actions against deviations. Planning, Organising and Directing
are the main functions and control is the feedback of all the
managerial, supervisory and clerical functions. After the

controlling authority receives the reporting, he looks out the


weakness and lagging behind and according to the policy of the
company he may take necessary actions. In the organisation
under study control is an effective tool of management.
Controlling is almost fact to face in the shape of pyramids and
guiding the same cases in which are very crucial in decision
taking and are in writing in the shape of memos, charge sheets.
But in the company under study harmonious relationship are
maintained and very rare chances of punishment are seen and
observe. So controlling is the function of management without
which we can't achieve our objectives plays an important role in
the unity, strength and integrity of the company. It is said that
without planning control is worthless and without control
planning is baseless. That is why they are termed as TWINS of
management.
7. SETTING OF M.B.O.
Before accomplishing and thing we must have our targets in
hand. Before knowing where we are and here we want to go is
not clear our efforts will be waste. MBO which means managing
by objectives is a part of planning which is very important in

getting things done. They are the guidelines and path showing
instrucitons for the persons who are involved in achieving the
organisational objectives of the company. The objectives lay
down by the top management i.e. GM, MD, and the functional
heads, later on they are published and circulated to all
departments so they can process their actions according to
planed and predetermined objectives. As already been old
reporting and controlling are the twins and the two sides of the
same coin are totally based on the M.B.O. is the base of any
industry and business organisation.
8. PRINTING ANNUAL REPORTS
An EEAL is an escorts company and is corporate under Indian
Act - 1956 as per the instruction laid down that each company
will prepare final accounts and balance sheets to show the real
purpose of the business. The company is preparing such types of
statements, which are called annual reports of the company.
Annual reports give a clear picture and a comparison from the
last

year.

Provisions

are

made

regarding

depreciation,

development research and development taxation, dividend


payment etc. The full names and address of the directors are

also made in the annual reports, which shows what is the


profitability, solvency and liquidity of the company. Although it
a written document of the company reports and records, it is
open to the members only because they are the interested
parties. It is a part of written communication, which gives over
all information about the company

DISCIPLINE AND DISCIPLINARY ACTION


The word discipline denotes that the members of a group should
reasonably conform to the rules and regulations (i.e., the code of
behaviour) which have been framed for it or by it so that every
one may benefit by them.
If the members of a group do not abide by the rules, the
organization it self may collapse.
'Disciplinary action' or 'to discipline' means that steps are taken
to correct disobedience and, if possible, it cause.
Act of Indiscipline or Misconduct
It is an act or a conduct which is prejudicial to the interests of
the employer, or which is likely to impair the reputation of the
employer, or create unrest among other employees; it is an act
of misconduct even when such activities are performed outside
the organisation, or before or after the employee's duty hours.
Causes of Indiscipline and misconduct
a). Non-placement of the right person on the right job.

b). Undesirable behaviour of senior official.


c). Faulty evaluations of persons and situations by executives
lead to favoritism.
d). Lack of upward communication.
e). Leadership which is weak.
f). Defective supervision and an absence of good supervisors.
g). Lack of properly drawn rules and regulations.
h). Worker's personal problems.
i). Intolerably bad working conditions.
j). Discrimination based on caste, color, creed, sex.
Procedure of Disciplinary Action
Following steps should be taken into consideration.
a) Accurate Statement of the Problem
The first step is to ascertain the problem by seeking answers to
the following questions:
- Does this case call for a disciplinary action?

- What, exactly, is the nature of the violation or offence?


- Under what conditions did it occur?
- Which individual or individuals were involved in it?
- When, or how often, did the violation occur?
The HR executive first, find out that a violation that has
occurred and that is entirely the fault, or at least partially the
fault, of one or more subordinates. The next step is to determine
and state the nature of the alleged violation of a rule, a
regulation, a policy; to determine whether a request or order has
been ignored or broken, and asses the seriousness of the specific
offence which has been committed.
b) Facts are collected bearing on the Case
Before the HR department in the case takes any action, it is
essential to gather all the facts about it. A through examination
of the case should be made within the stipulated time limit. The
facts gathered should be such as can be produced before a
higher authority, if and when needed.

c) Selection of tentative Penalties


The kind of penalty to be imposed for an offence should be
determined beforehand. Should it be a simple reprimand, a
financial penalty or should it be Domotion, temporary lay off or
outright discharges?
d) Choice of Penalty
If the decision has been taken to impose a penalty, the
punishment to be awarded should be such as would prevent a
recurrence of the offence. If the punishment is lighter than it
should be, it might encourage the violation of the same rule or
another; if it is greater than it should be, it may lead to a
grievance.
e) Application of the Penalty
The application of the penalty involves a positive and assured
attitude on the part of the management. "If the disciplinary
action is a simple reprimand, the executive should calmly and
quickly dispose of the matter. But when severe action is called
for, a forthright, serious and determined attitudes is highly
desirable."

f) Follow-up on Disciplinary Action


The ultimate purpose of a disciplinary action is to maintain
discipline, to ensure productivity, and avoid a repetition of the
offence. A disciplinary action should, is evaluated in terms of its
effectiveness after it has been taken. In other words, there
should be a more careful supervision of the persons against
whom a disciplinary action has been taken.
Penalties and punishments: Different penalties for the same offences when it is committed
once, or the second time, or the third time.
I

Actions most Frequently leading to discharge after a first


offence:-

- Theft
- Possession of narcotics
- Willful damage to comp[any property
- Possession of firearms or the weapons
- Falsifying records of work
- Fighting
- Off- the -job criminal activities
- Unauthorised strikes
- Drunk at work timings.

Actions most frequently leading to discharge after a second


offence:
- Sleeping on the job
- Use of abusive or threatening language to a supervisor
- Gambling.
Actions taken to discharge after third offence:
- Horseplay
- Leaving work without permission
- Failure to use safety devices
- Smoking in unauthorised places
- Slow down in production
Actions taken to discharge after a fourth offence:- carelessness
- chronic absteneesim
- unexcused absence
- Unexcused or excessive lateness.

DUE PROCESS
a) Charge sheet is farmed and issued :
The first step in the procedure is to frame a written charge sheet.
Which is based upon a written complaint against the employee
in question. Which contains details of the offences with which
he is charged and the allegations of misconduct made against
him, and which contains details of the offences with which he is
charged and the allegations of misconduct made against him,
and indicating the time limit within which a reply to the charge
sheet should be submitted to the authorities. The contents and
implications of the charge sheet may be explained to him. If he
refuses to accept it, it should be sent to his residential address
under registered post. If the person refuses to take the delivery
then it should be published in the newspaper.
b) Recipient of explanation:The employee may submit explanation within the prescribed
period of the time, or he may ask for an extension of the time of
its submission.
c) Issues of the Notice of inquiry:

If the explainer received from the employee is found to be


unsatisfactory, a notice of enquiry mentioning the time date, has
to be given to him in which the name of the person of officer
who conduct the enquiry would also be mentioned. The
employee is requested to be present at the mentioned. The
employee is required to be present at the appointment time and
place. Together with his witnesses, if he has any.
d) The holding of the equity:On the appointment day and appointment place and the time the
enquiry officer in the presence of the employee holds the
inquiry. The contents opt the charge sheet and explanations of
the procedure to be following are the enquiry is communicated
to the worker. If the employee pleads in writing then the enquiry
against him is dropped.
e) The findings:Once the enquiry is over, the enquiry officer has to give findings
that should invariably contain the procedure, which was
followed, the parties statement. The officer should then record
his own findings to a particular conclusion. He should

specifically mention that charges have been proved and which


have not been proved
f) Decision
On receiving the report, the executive authorised to take a
decision thereon passes an order of punishment.
g) Communications of the order:A copy of the order is then handed over to the employee.

GRIEVANCES AND GRIEVANCES


HANDLING
Dissatisfaction is any state or feeling of discontent, weather it is
innate and expressed are explicitly expressed. A dissatisfaction
which is orally made known by one employee to as another is
known as a complaint .AQ complaint becomes a grievance when
this dissatisfaction, which is mostly related to work, is brought
to the notice of the management.
Causes or sources Grievances
(i) Concerning Wages
- Demand for individual adjustment; the worker feels that he is
underpaid;
- Complaints above incentives
- Mistakes in calculating the wages of a worker.
(ii) Concerning Supervision
- Complaints against discipline.

- Objection to having a particular foreman


- There are too many rules; regulations are not clearly posted.
(iii) Concerning Individual Advancement
- Complaint that the employee's record of continuous service
has been unfairly broken;
- Complaint that the claims of senior persons have been
ignored.
- Charges are made the disciplinary discharge of law-off has
been unfair.
(iv) General Working Conditions
- Complaints about toilet facilities being inadequate; about in
adequate.
- Complaints about working conditions.
(v) Collective Bargaining
- The company is attempting to undermine the trade union and
the workers who belong to that union.

- The company does not allow the supervisors to deal with, and
settle, the grievances, of the employees.
- The company disregards precedents and agreements already
arrived at with the workers and/or their trade union.
Grievance Procedure Steps in Unionised Organisations
Step 1: The aggrieved employee verbally explains his grievance
to his immediate supervisor or in a conference or a discussion
specifically arranged for the purpose. The employee seeks
satisfaction from his supervisor. The grievance can be settled if
the supervisor has been properly trained for the purpose, and if
he adheres strictly to a basic problem-solving method.
Step 2: The second step begins when the grievance is not settled
by the supervisor. In this case, it is sent to a higher level
manager with a note in which are mentioned the time, place and
nature of the action to which the employee objects. The higher
level manager is generally the chief business manager, a
superintendent or an Industrial Relations Office who goes, into
the grievance and gives his decision on the matter.

Step 3: This means that the grievance is to be submitted to the


Grievance Committee since the decisions of the supervisor and
of the which is composed of some fellow-employees, the shop
steward

or

combination

of

union

and

management

representatives, considers the record and may suggest a possible


solution.
Step 4: If the decision or suggestion of the Grievance
Committee is not accepted by the grievant, he may approach the
personnel manager.
Step 5: The final step is taken when the grievance is referred to
an arbitrator who is acceptable to the employee as well as the
management. They may agree beforehand that the arbitrator's
award will be final and binding on both the parties.

EMPLOYEE MORALE
Whenever something is found to be wrong with the workers, it
is obvious that there must be some cause of this situation. It
may be that the policies or practices of the company are
defective, or that it executives are at fault, or that the views of
those whose morale is low do not agree with those of the
company or of its executives.
For improving worker's performance, managers should provide
training for employees; create specific performance goals for
workers to strive for; provide performance feed-back on a
regular and frequent basis; encourage neat, orderly work areas;
arrange and increase the number of operations performed by
each employee whenever possible; structure jobs so that workers
can at least occasionally move about the work area; and explore
ways to assign greater responsibility to each individual.
(i) Creation of Whole Jobs: United this procedure, complete
jobs are assigned to the workers. Jobs should be enlarged that is
the complexity of a job should be increased so that it may
appeal to their higher needs. On an assembly line, for example,

a worker may be allowed to perform more than one specialised


function.
(ii) Job Enrichment: This involves a greater use of the factors,
which are intended to motivate the worker rather than to ensure
his continuing satisfaction with the job he performs. The idea is
to reduce employee discontent by changing or improving a job
he performs. The idea is to reduce employee discontent by
changing or improving a job to ensure that he is better
motivated.
(iii) Building Responsibility into a Job: Employees should be
encouraged to take risk decision. This can be ensured by
delegating authority to them.
(iv) Modifying the Work Environment: This involves the use
of teams or work groups; developing the social contacts of the
employees; the use of music; regular rest break.
(v) Flexing Working Hours: That is, introducing flextime and
flexible working hours so that en employee may have enough
time to look after this children and his family as well as after his

personal affairs. In this manager, the rate of absenteeism can be


reduced.
(vi) Job Sharing or Twinning: Under this system, two workers
divide a full-time job between themselves, splitting not only the
hours of work but also the salary.
(vii) Rotation of Jobs: Job rogation help to reduce an
employee's boredom, which arises out of the monotonous nature
of his work. By the adoption of this procedure, jobs may also be
found for mentally retarded and physically handicapped persons.
Employee welfare facility
An Escorts Club is there in which various welfare programmes
like Diwali Eve, New Year eve and other parties is conducted. In
which all the employees gather. It is a kind of social meet.
A formal meeting is these between the companys higher
employee and worker. In this meeting the problems of the
workers is dealt with workers general problem, household
problem etc. if any worker is involved in legal case (not crime)
is duly helped by the company legal persons, for consultation.

WAGES AND SALARY


The Wages Determination Process

Job
Analysis

Job
description &
specification

Wage
Legislation

Job
evaluation

Performance
standards

Wage surveys
& analysis of
relevant
organisational
problems

Wage
structure

Rules of
administratio
n
Differential
employee
appraisal

Wage
payments

The process of job analysis


Results in job description, which leads to job specification. A
job analysis describes the duties responsibilities working
condition and interrelationship between the job as it is and the
other jobs with which it is associate it attempts to record and
anlayse details concerning the training, skills required, efforts,

qualifications, abilities, experience and responsibilities expected


of an employee. After this the job is rated in order to determine
its value related to all the other jobs in the organisation, which
are subject to evaluation. The next step is that of providing the
job with a price.
Wages Survey
In this area making wage or salary surveys in the area concerned
is taken up to find out the relative wages given by the other
organisations.
Relevant Organisational problem
Before setting the wage company consider the various problems
for example whether there exists well established and well
accepted relationships among certain jobs which can upset job
evaluation,

whether

the

organisation

would

recruit

new

employees after revised wage structure; are the prevailing rates


in industry or community inconsistent with the result of job
evaluation. What will be the result of paying lower or higher
compensation; and what should be the relationship between the

wage structure and the fringe benefit structure and things related
to it.
Preparation of wage structure
A wage structure is determined by the company in which various
decision is taken up like (a) whether the organisation whishes,
or is able, to pay amounts above, below, or equal tot he averages
in the community or industry (b) whether wage ranges should
provide for merit increases or whether there should be single
rates (c) which jobs are to be placed in each of the pay grades;
(d) the number and width of the pay grades and the extent of
overlap (e) the actual money value to be as signed to various
pay grades (f) differentials between pay plans; and

(g) what

to do with salaries that are out of line once these decisions have
been made is deeply considered.

FACTORS INFLUENCING WAGES AND SALARY


STRUCTURE

Ability to pay
(1)

Living wage
(8)

Going rate
(2)

Productivity
(3)

Job requirement
(5)

Union
bargaining
power
(4)

Supply &
demand factor
(6)

Cost of living
(7)

WAGE
&
SALARY
CRITERIA

THE COMPANYS WAGE THEORY


The wage theory that the company follows to ascertain the
wages of the employee is through Marginal Productivity Theory.
According

to

this

theory,

wages

are

based

upon

an

entrepreneurs estimate of the value that will probably be


produced by the last or marginal worker. It assumes that wages
depend upon the demand for and supply of labour. Workers are
paid what they are economically worth. The result is that the
employer has a larger share in profit as has not to pay to the
non-marginal workers.
Executive compensation Plan
For the higher management salaries are influenced by the size of
a company, by the specific industry, and in part by the
contribution of the incumbent tot he process of decision making.
The bigger the firm, the greater is the compensation paid to the
executives. The salary is determined by mutual agreement
between the individual and the employer. The sales effected the
cost of production, reduction in expenses and the profits made
are also taken into account.

Executives are compensated for the various expenses incurred


by them, for taxation takes away a major portion of their salary.
Such payments are in the form of
(a)

Medical care

(b)

Counsel and accountants to assist in legal, tax and


financial problems.

(c)

Facilities for entertaining customers and for dining out;

(d)

Company recreational area

(e)

Free well-furnished accommodation, conveyance and


servants.

JOB EVALUATION
Job evaluation as a process of analysing and describing
positions, grouping them and determining their relative value by
comparing the duties of different positions in terms of their
different responsibilities and other requirements.
It is the quantitative measurement of relative job worth for the
purpose of establishing consistent between job requirements, the
objective being the setting of pay for management purposes.
Procedure for job evaluation
(i) Analyse and prepare Job Description: This requires the
preparation of a job description and also an analysis of job
requirements for successful performance.
(ii) Select and Prepare a Job Evaluation Plan: This means
that a job must be broken down into its component parts, i.e., it
should involve the selection of factors, elements needed for the
performance of all jobs for which money is paid, determining
their value and preparing written instructions for evaluation.

(iii) Classify Jobs: This requires grouping or arranging jobs in a


correct sequence in terms of value to the firm, and relating them
to the money terms in order to ascertain their relative value.
(iv) Install the Programme: This involves explaining it to
employees and putting it into operation.
(v) Maintain the Programme: Job cannot continue without
updating new jobs and job changes in obedience to changing
conditions and situations.
Job Evaluation Methods adopted by the company
The Ranking System
Under this system, all jobs are arranged or ranked in the order
of their importance from the simplest to the hardest, or in the
reverse order.
Step 1: Preparation of job description, when the ranking of jobs
is done by different individuals and there is a disagreement
among them.
Step 2: Selection of Raters, jobs may be usually ranked by
department or in "Cluster" (i.e., factory workers, clerical

workers, menials, etc). This eliminates need for directly


comparing factory jobs and clerical jobs. Most organisations use
a committee of raters.
Step 3: Selection of rates and key jobs. Usually, a series of key
jobs or benchmark jobs (10 to 20 jobs, which include all major
departments and functions) are first rated. Then the other jobs
are roughly compared with these key jobs to establish a rough
rating.
Step 4: Ranking of all jobs. Each job is then compared in detail
with other similar jobs to establish its exact rank in the scale.
For this, each rater may be given a set of 'index card', each of
which contains a brief description of a job. These jobs are then
ranked from 'lowest to highest' or from 'highest and so forth
until all the cards have been ranked.
Step 5: Preparation of job classification from the rating: The
total ranking is divided into an appropriate number of groups of
classifications, usually 8 to 12. All the jobs within a single
group or classification receive the same wage or range or rates.

In this ranking system job evaluation usually measures each job


in comparison with other jobs in terms of the relative
importance of the following five factors.
i

Supervision and leadership of subordinates.

ii

Co-operation with associates outside the line of authority.

iii

Probability and consequences of errors (in terms of waste,


damage

to equipment,

delays, complaints,

confusion,

spoilage of product, discrepancies, etc).


iv

Minimum experience requirement and

Minimum education required

The Point System


It requires identifying a number of compensable factors (i.e.,
various characteristics of jobs) and then determining degree to
which each of these factors is present in the job. A different
number of points is usually assigned for each degree of each
factor. Once the degree to each factor is added and an overall
point value is obtained. The point system is based on the
assumption that it possible to assign points to respective factors,

which are essential, for evaluating an individual's job. The sum


of these points gives us an index of the relative significance of
the jobs that are rated.
Step1: The jobs have to be determined first, which are to be
evaluated. The jobs which require (I) similar activities, (ii) the
same worker characteristics or traits and work on the same kind
of materials are placed in the same cluster or family.
Step 2: A pre-determined number of factors arbitrarily selected
by raters. The number of factors used varies a great deal from
company to company, ranging from as few as 3 to as many as
50, although most companies use less than 15.
The common factors are: Education and training; experience;
physical skills and efforts; planning for the supervisor of others;
external contacts, intern contacts; confidential information and
working conditions.
Step 3: The next step is to break down each factor into degree
or levels, and to assign a point value to each level or degree.
Experience is subdivided into 5 degrees. The first degree, three
months or less may be assigned 5 points. The second degree 3 to

6 months given 10 points, the third degree, 6 to 12 months,


assigned 15 points; the fourth degree 1 to 3 years, assigned 20
points and the fifth degree is over 23 years and 1 to 3 years,
assigned 20 points and fifth degree is over 3 years, and is
assigned 25 points.
Step 4: Determination of relative values or weights.
Step 5: The next step is to assign money values to points. For
this purpose, points are added to give the total value of a job. Its
value is then translated into terms of money with a predetermined formula.

PERFORMANCE APPRAISAL
Performance appraisal is a process of evaluating an employee's
performance of a job in terms off its requirement.
The evaluation process: Method of performance appraisal
Grading method: This method is used for the lower management level, like
supervisors and the workers of the plant.
Under this method the personnel manager considers certain
features and marks them accordingly to a scale. Certain
categories of worth are first establishment and carefully defined.
The selected features may be analytical ability, co-operative's,
dependability,

self-expression,

job

knowledge,

judgement,

leadership, and organisation ability, etc. These may be Aoutstanding, B-very good, C-good average, D-fair, E-poor, -Bvery poor or hopeless.

The actual performance of an employee is then compared with


these grade definitions, and he is allotted the grade which best
describes his performance.
Management by objectives (M.B.O) : This process is used for the upper management level people like
the executives of the company. This is potentially a powerful
philosophy

of

management

and

an

effective

way

for

operationlising the evaluation process.


The superior and the subordinate managers of an organisation
jointly identify its common goals, define each individuals major
areas of responsibility terms and result expected of him and use
these measures as guides for operating the units and assessing
the contribution of each of its members.
MBO process: 1- Set organisation goals:
Under this the organisation wide strategy and goals is
established. This goal is then expressed clearly and concisely
and can be measured accurately. This goal is periodically

revised as and when there is the change in the business


environment. This goals is kept very challenging, they are high
enough to give a motivation to the executives toward the
organisation. These goals are not set too high otherwise it will
lead to dissatisfaction to the employee.
2- Joint goal setting :In this step the short-term goals is established for the managers
and the subordinate. It is discussed in between them. There is
discussion on the individual goals set between the manager and
the subordinate. These goals are kept flexible enough to
accommodate new ideas and they should stress individual
responsibility.
3- Performance reviews:Frequently performance review meetings between the managers
and the subordinate.

4- check posts is setted


The major checkpoints to measure progress. This is done to keep
the manager's alert to the objectives, which is setted. This is
done through the well-established team of the HR department.
5- Feedback: The employee who receive frequent feedback concerning their
performance are more highly motivated than those who do not
feedback that is specific, relevant, and timely helps satisfy the
need most people fell about knowing where they stand.
Under the MBO program, an employee and his supervisor meet
and other define, establish, and set certain goals or objectives
which the employee would attempt to achieve within the period
of prescribes time.
The various benefits of the MBO programme are: - it helps in increasing employee motivation
- Managers are more likely to compete with themselves than
with other manager.
- It reduces role conflict and ambiguity
- Identifies problems better and early

EXECUTIVE DEVELOPMENT AND


EMPLOYEES TRAINING
The development of the executives is done in the following
manner Step 1: an area of lacking is identified by the manager executive
itself. In other words he himself identifies the required area of
the training and development
Step 2: then the requisition on the demand of that area of
training is made and sent to the head of the department of the
related officer is.
Step 3: then he recognises the area of requirement by the
manager executive. He sanctions the requirement and sends to
the HR department.
Step 4: now the HR department considers the requirement of the
related department and puts it into the consideration.
Now

there

are

various

government

and

non-government

organisations, which conduct the training part of the executives.

Like- CII, ASSOCCHAM, other organisatios that keep due


contact with the various industries time to time.
Step 5: now the HR department negotiates with them and
decides about the training various aspects like duration, content
of the course etc.
Step 6: when all aspects of the training is set. The company gets
the manager trained from that institution.
Step 7: after the person gets his training over the HR
department conducts the performance test for that manager by
the head of the department of the related department, to check
weather the manager has gained something from the training or
not.
EMPLOYEES TRAINING
The process is conducted in the same manner as the executive
training is conducted, only difference in the executive training
and the employee training is that the requirement of the
instructor is adjusted within the organisation to a large extent. If
the training needs a qualified person then it hired from outside.

PROMOTIONS, DEMOTIONS AND


ABSENTEEISM
Promotion is the term which a change and call for the grater
responsibilities, and usually involves higher pay and better term
and conditions of service and, therefore, a higher status or rank.
Promotion in the company is given on the basis of the
SENIORITY versus MARIT basis. In this the seniority refers to
the length of the service an individual had given to the
particular organisation. Occupational seniority may be within a
department, within a division or in the entire plant.
Promotion is also given on the basis of the performance
appraisal of the particular person, if there are many people on
the post. His record and the various achievements he has
achieved for the organisation.
Demotion
It is the assignment of an individual to a job of lower rank and
pay

usually

responsibility.

involving

lower

level

of

difficulty

and

Demotion is basically a punishment given by the company to an


employee for his some misconduct he has done against the
organisation. It is also given because he didnt follow the code
of conduct of the organisation.
Absenteeism: It is the practice or habit of being absentee and absentee is one
habitually stay away.
In this the company keep a close watch in this regard of the
employee. In this context the HR department keeps watch
through by a time machine. The record is kept in the
organisation monthly wise. This absenteeism or getting late is
recorded, and a monthly report is prepared. A formal letter is
send to the employee by the HR department. If the employee
continues with the same attitude then he is called by the HR
manager and is explained by him. Even if he maintains the same
attitude then he is penalised for the.

RECRUITMENT AND SELECTION PROCESS


Recruitment is the discovering of potential applicants for actual
or anticipated organisation vacancies.
Recruitment system: Personnel
Human
resource
planning

Developing
sources of
potential
employees

Internal
sources

External
sources

Recruiting
needed
personnel

Selecting
qualified
personnel

Search for
potential
employees

Evaluating
recruiting
effectiveness

Placing new
employees
on Job

SELECTION PROCESS
Requirement Identified
Permission from the Plant Head
Personnel Department
External
Source is decided
Internal
Application is called

Secondary

Analysis of Application
Screening of Application
Concerned Department Decides the candidate to be called
Interview Panel
(Deptt. Head, HR Head & Any Tech. Per.)
Interview Conducted
Final Selection
If the selected candidate agrees than letter of intent is given
Final appointment of the candidate

QUALITY RECORD MAINTAINED IN THE


DEPARTMENT
S. No.
1.
2.
3.
4.

Name of Records
Corporate of training needs and requirement
Training need identification
Training plan
Requisition form

5.
6.
7.
8.
9.
10.
11.
12.
13.

Rating format
Appointment letter
LTA form
Leave application form
Extra voluntary worksheet
Late entry form
Statement of returns to government agencies
Return to government agencies
Annual review forms

This quality registers is maintained for the reason to maintain the


quality in the human resource.

LIMITATIONS
- I could not get the exact HR policy from the company
(confidential paper). The information collected on HR from the
company was not in set format. To put those information into a
set format various books has been consultant.
-Sales figure projections and the data depend upon the
conditions prevailing today and last year. It may change with
the effect of various market forces, which are not consistent.
-The report does not suffer with personnel biases. But despite of
high amount of procurement of data and information their can
be incorrect deduction and recommendations.

-A market research on a large scale has not been possible due to


limitations of resources and constraint of time. A true picture
could have emerged indicating future trends in this sector.
-The profile of Mr. Nikhil Nanda director of this company is not
mentioned.
-Industrial marketing is very different from other marketing
concepts. As far as possible is handled carefully, but some of
the other points may not be covered because there are 101
factors which effects industrial demands.
-Recommendation and conclusion is being given on the basis of
author subject knowledge. It may differ from person to person.
-Company takes up less of promotions in OE marketing.
-It was difficult to make the project simultaneously while I was
on summer training. So please bear with the information
collected.

CONCLUSION
Escort Employees Ancillaries Ltd. (EEAL) was recently in
August last year was renamed as Escort Auto Component Ltd.
(EACL).
EACL is one of those companies, which are operating from lost
3decades. Earlier EACL was raised by Escort Ltd. (EL) for the
season that EL had its business in two-wheelers industry also.
To reduce the cost of the bikes and to cater larger market, this
major

auto

component

Carburettor

was

manufactured

indigenously. Which is manufacture by Escort Auto Component.


Escort Auto Component Ltd. had a major Customer Yamaha
Motors Escort Ltd. (which now totally taken/over by Yamaha).
Today EACL had lost its customer, and with the due fact the
company is facing losses.
Today Company has realised the competition in the market.
They had to market their products to other Auto Manufacturer
other their Escorts Yamaha. apart from being a big supplier to
two Wheeler Company has ventured into Direct Marketing for
Replacement

Market

(Replacement

Marketing). With

this

concept of marketing EACL has made on attempt to cell


carburettors for those vehicle, which have higher population.
Higher the number of population of vehicles higher the much be
will be for were and tear so need for Carburettor replacement.
Companys higher official say/s
EACL has also recorded a highest sales figure since its stepping
into this field, for 80488 (2000-2001) Carburettors against
65959 and 5671.6 for 99-2000 and 98-99 respectively. In
replacement market company has a cutthroat competition with
other brands like Spacco and Ukal.
In other words company is showing a good perforamnce in the
field of Replacement Marketing.
EACL which is manufacturing industrial product Carburettors
which is for two-wheeler industry. Company had a ever growing
sales figure for 2000-01 478234 carburettors were sold and for
1999-2000 444369 carburettors was sold.
Which shows that they have been aggressively taking up this
field. EACL has always believed in customer satisfaction.
Company has grabed strong customers like Hero Honda,

Enfield, TVS Suzuki and Bajaj in OE Marketing. EACL


manufacturer product upto their satisfaction levels with most
advanced quality to give best performance. Bajaj Auto which is
one of the most satisfied one the oldest customer of EACL.
The performance of a two wheeler depends on its corburettor,
Bajaj Scooters is the leader in market we can say that, indirectly
the carburettor manufactured by EACL which is fitted in Bajaj
Scooters is also showing good performance.
As far as the Human resource is concerned EACL follows very
intensive and exaustive system for the recruitments and
selection process. In both the cases workers and executives
managers. EACL has adopted a good communication channel,
employees of the organisation are well sound persons, with the
effect of that they have a healthy communication between the
executives subordinates, supervisors, managers and workers. All
employees understand each other very well. The other aspect of
Descipline within the organisation is not too harsh and also not
too lose. Descipline is maintained is such a manner that it does
not create any uneasyness among the employees. But at a certain
points discipline has to be had like Absenteeism. Misconduct an

reasoned strikes etc. company has a good grievance handling


procedure. The workers of the company are satisfied with it.
They by when ever we have a problem we consult one
supervisors and if the problem is big our personnel chief helps
us out according. At the same time company employees one
satisfied with the procedure performance appraisal and the
wages and salary port dealt by the company.
The only fact, which I was not satisfied, was the area of
executive

and

employee

training

and

development

part.

Company doesnt take up timely training and development part.


They say we only take up when there is some requisition for the
related department. Rather it should be a ongoing process.
The other part my dissatisfaction was the organisation hierarchy.
Company has plan head who is the director of the company but
recently they have promoted one more person to the level of
plan head. They say ever though there are two at the same level
but plant head is only one. Because of his tenure was due he was
promoted. If a person gets promotion ad do not get authorities
he may feel dissatisfied.

RECOMMENDATIONS
Market Survey
On the basis of market survey, some factual data nad my
experience in EEAL, recommendation to improve market share
of "MIKCARB" carburettor in the replacement is following,
1. As we have seen that customer awareness about carburettor is
very low generally go to local mechanical where he get
local/duplicate carburettor and deprives of more efficient
original carburettor, so EEAL'S marketing division should
take initiative through it dealer to tell customer about
important of original "MIKCARB". So that at the time of
replacement

he

will

come

to dealer

to get

original

carburettor.
2. It is important to note that if EEAL capture the good O.E.
(original equipment) market then definitely is replacement
market will increase. So company should to increase its O.E.
market.

3. EEAL should have more cordial relations with its dealer and
give

them

incentives

and

discount

i.e.

"MIKCARB"

carburettor.
4. R&D

department

continuously

tries

to

maintain

"MIKCARB." Carburettor more efficient than its competitor


"SPACCO".
5. Position of labour union in ESCORTS is very strong and it is
generally seen that strike by labour union badly affect the
supply of carburettor. So there should be a good relation
between management and union had try to avoid such
condition much as possible.
Recommendations for Communication
1. Its merits and demerits judge the success or failure of the
communication system in any business enterprise. Everything
is having its positive and negative aspects. Nothing is perfect
in this world.
2. The written and oral communication having its own
advantages and disadvantages. In some companies written
communication may be successful while in other companies

it may have less impact. It also depends upon the history of


the company.
3. While preparing this project report I conducted a survey of
employees of EEAL and came to know the healthy and weak
points regarding the company's communication system.
4. The second suggestions propounded by me are the existence
of formal as well as informal communication. In any business
enterprise if there is a delegation of authority there is always
formal communication but the development of group dynamic
in any organisation gave a birth to informal communication
things can be got done more easily with the help of informal
communication. It is totally based on mutual understanding,
social relation's friendship. Formal as well as informal
communication

both

important

in

achieving

the

organisational goals. In the company understudy their


informal type of communication is followed. So my
suggestion

is

that

the

formal

as

well

as

informal

communication should be followed in the company. The


untrue part of communication is called rumour, which should
be removed and eliminated.
5. The third but the most important thing that I observed in the
company is not having its proper records and reporting. Most

of the reports are written in a haphazard manner without


taking into consideration the other aspect of the report.
Sometimes if it is not buy only conveyed to immediate boss.
But reporting is an integral part of M.I.S., which is not
proper. I would like to suggest the management and the
employees encode proper, accurate and timely reporting.
6. In making communication a successful instrument in the
hands of management contentious interaction among various
departments. For this purpose the meetings sand conferences
are more important but I observed from my study that there
are minimum meetings and conferences. Management is the
intermingled activity and it is completed only with the
coordination and cooperation of all the departments. So it is
my suggestion that the frequency of conferences and
meetings must be narrowed down.
7. I observed that some of the workers are under middle and
they cannot follow the meanings of policies and procedures.
So it is the duty of the management that they should impart
them with proper training and development programs, If
properly and timely trained, they can discharge their duties
effectively and efficiently.

APPENDICES
SAMPLE-1
1. Name and address
dealer/workshop
2. Model's you deal
'MIKCARB' is fitted.

of

authorised Arihant Motors

with,

which K.B. 100cc Bajaj M80

3. What are the problems concerned with Over racing, average


'MILKCARB'.
problem over flow
4. Rate of replacement of Carburettor.

9-10 years

5. How many customer are aware about 5%


'MIKCARB'
6. Models in which other Carburettor as 50% of the M80 fitted
well as 'MILKCARB' is originally carburettor of Spacco
fitted.
originally while 50% of
the M80 vehicles is
fitted with Mikcarb.
7. Which one is better
8. Average
life
Carburettor.

Mikcarb is better then


Spaccos Carburettor
of

'MIKCARB' 10 years

9. At the time of replacement


a)

How many customers come for 20% only other than go


original Carburettor.
for
local/
duplicate
carburettors. Some dont
replace.

b)

How many go to local workshop 30%


where
they
get
duplicate
Carburettor.

SAMPLE - 2
1. Name and address
dealer/workshop
2. Model's you deal
'MIKCARB' is fitted.

of

authorised GREEN
AUTOMOBILE,
FARIDABAD

with,

which Yamaha
RX-100,
Rajdoot 175CC

3. What are the problems concerned with Overflow


'MILKCARB'.
4. Rate of replacement of Carburettor.

7-8 per year

5. How many customer are aware about 10 percent


'MIKCARB'
6. Models in which other Carburettor as No
well as 'MILKCARB' is originally
fitted.
7. Which one is better
8. Average
life
Carburettor.

Both are same


of

'MIKCARB' 10-12 year

9. At the time of replacement


a)

How many customers come for 12-30 year


original Carburettor.

b)

How many go to local workshop 40-45 percent


where
they
get
duplicate
Carburettor.

SAMPLE - 3
1

Name and address


dealer/workshop

2. Model's you deal


'MIKCARB' is fitted.

of

authorised PRATAP
AUTO
PARTS,
GURGAON.

with,

which HERO
PUCH,
HERO WINNER

3. What are the problems concerned with Average


'MILKCARB'.
4. Rate of replacement of Carburettor.

8-10 per year

5. How many customer are aware about 5-6 percent


'MIKCARB'
6. Models in which other Carburettor as Hero puch
well as 'MILKCARB' is originally
fitted.
7. Which one is better
8. Average
life
Carburettor.

Both are same


of

'MIKCARB' 8-10 year

9. At the time of replacement


a)

How many customers come for 20-25 percent


original Carburettor.

b)

How many go to local workshop 30-40 percent


where
they
get
duplicate
Carburettor.

SAMPLE - 4
1. Name and address
dealer/workshop
2. Model's you deal
'MIKCARB' is fitted.

of

authorised ALIM
AUTO
WORKS, DELHI

with,

which Bullet,
Rajdoot,
Yamaha, Explorer,
Hero puch, Hero
winner

3. What are the problems concerned with Access


'MILKCARB'.
Average
4. Rate of replacement of Carburettor.

of

air,

10-15 per year

5. How many customer are aware about 4-5 percent


'MIKCARB'
6. Models in which other Carburettor as Hero puch and Hero
well as 'MILKCARB' is originally winner
fitted.
7. Which one is better
8. Average
life
Carburettor.

MIKCARB
of

'MIKCARB' 8-10 year

9. At the time of replacement


a)

How many customers come for 20-30 year


original Carburettor.

b)

How many go to local workshop 30-35 percent


where
they
get
duplicate
Carburettor.

SAMPLE - 5
1. Name and address
dealer/workshop
2. Model's you deal
'MIKCARB' is fitted.

of

authorised SHARMA
AUTO
WORKS, DELHI

with,

which Gizmo, Hero puch

3. What are the problems concerned with Access of air


'MILKCARB'.
4. Rate of replacement of Carburettor.

8-10 year

5. How many customer are aware about 2-3 percent


'MIKCARB'
6. Models in which other Carburettor as Hero puch
well as 'MILKCARB' is originally
fitted.
7. Which one is better
8. Average
life
Carburettor.

Both are same


of

'MIKCARB' 10 year

9. At the time of replacement


a)

How many customer come for 20-30 year


original Carburettor.

b)

How many go to local workshop 40-45 percent


where
they
get
duplicate
Carburettor.

INTERVIEW TAKEN FOR COMMUNICATION


The survey of any business enterprise is totally based upon the
cooperation and assistance given by the managers. Managers are
the persons who are responsible for various jobs. The
organisation can't speaks itself, it speaks through its employees,
the image, reputation and goodwill of the organization is
expected by its employees or by the persons who came into
contact of the company to make my project more reliable and
real. I also made certain discussions with the various managers
heading their departments. First of all I asked questions to work
manager named as Mukesh Gupta. I asked his attitude and
observation regarding the functioning of organisation and the
role-played by the communication system in its success. He
showed his full enthusiasm and optimistic attitude about the
success of the company. He asserted that the communication
plays an important role in getting the things done o achieves the
organisational goals. However there are certain problems but
they are removed and solved. Reporting and controlling are the
most important functions of the company working in the healthy
environment. In his opinion oral communications ahs the most

significance and proved as a blessing for the organization. From


his statement I can observe that his views about the
communication is very optimistic. However the pointed out
certain problems in the implementation of orders to get the
organisational goals. But they can be removed with the help of
mutual understanding and personal interaction.
Then I met Mr. A. Chaudhary, the finance manager of the
ESCORTS

EMPLOYEES

ANCILLIARY

LIMITED,

FARIDABAD. He is a charted accountant and has a wide


knowledge of finance and accounts. Because he is involved in
managerial functions so he can be termed as a basic manager in
accounting system. A number of tasks and responsibilities are
discharged by the finance manager e.g. journalising, posting,
preparing ledgers, trial balance, trading profit & loss account
and balance sheets of a particular year. But his function does not
stop here, he has to cover and pass along distance preparing of
final accounts is not only the history of the company, as it
doesn't give future course of action. He has an interpret the
balance sheet and come out with certain results. Balance sheet,
which is most important part of the annual report, is prepared

and checked by the finance manager. I asked certain questions


from the finance manager. I asked his opinion regarding benefits
and objectives of the communication. He gave me an excellent
response that my financial policies annual reports highlight
financial circulars are itself the examples of communication.
These are written type of communication and have an
everlasting effect on the company and the people who came in
contact of the company. When I asked about this job satisfaction
can be replied that everybody has hi limits and expectations. As
regard myself I am satisfied with the job and monetary benefits.
Sometime when one wants to join a big organization repute but
ego and self-esteem comes in the way. In this company I am the
head of the finance department and formulating the financial
policies and procedures independently. I have to report GM but
the responsibilities on my shoulders are competency and
accuracy resembles and presentation of financial statement is
shortly the success of my communication system, of course most
of its parts is written one. I am hopeful for the prosperity of the
company. With best mix integrity of the company sales
department is an important department to deal with my project
of communication. It is very clear the communication is more

important for sale department as compare to any other


department. I met sales managers and enquired about the sales
policies of the company. He told me that our company is having
a narrow span of sales organization, as its area of operation is
only north India. However we are having an excellent team and
qualified persons for jobs. Any marketing policies and rules and
regulations, price policy, distribution system, sales promotion
program, dealer contest programs many other policies of the
sales

department

are

transmitted

through

communication

system. In my departments most of the communication is written


with a best mix of meetings, conferences and repot writing.
Sales force is assigned area wise target. They have to specify
after the progress. He has to repot his immediate boss which
may in turn communicate to one so deciding the target,
receiving the information, performance appraisal and controlling
is only possible with the help of give and take of ideas, which is
of course a communication system. He emphasized that the
principle communication plays an integral role in functioning of
the organization as the role of blood circulation in the human
body.

Being a student of personal management I am not able to


discharge my responsibilities well honesty and sincerely if I
don't get the ideas of a personal manager in EEAL. Personnel
department itself indicates the significance of communication
system. The meaning on written and flexible personnel policies.
His

response

regarding

communication

is

very

much

encouraging and enthusiastic. Being a man of man management


he was aware of the concept of communication its significance
and process. I asked him about how do you formulate the
personnel policies? He answered "personnel policies are
important guidelines provided they are framed and formulated
taking into consideration the various factors of the company. I
do not simply follow the formal policies, which are followed by
the organizational structure. First of all I see the history of the
company, the success of various policies to the past, the culture
of the company, the attitude of the top management and
illiteracy of the employees. Being a small company we are
having simple and common personnel policies which are almost
written. We are having a training development center EDP
(electronic data processing), EDP and certain other development
programs. Employees learn more from their experience and are

trained by their superiors, follow men and bosses, which is not


possible without give and take of ideas. Regarding recruitment
and selection we are not having a definite policy. However we
are following certain guidelines issued by the general managers
time to time. In short I may add that there is hardly any field in
personnel

management

communication.

which

is

out

of

its

use

i.e.

BIBLIOGRAPHY
Magazines
Business world
Fortune
Escort Company Journals
Newspapers
Economic Times
Libraries
CII
Websites
www. Indiainfoline.com
www.escortsgroup.com
Books
Personnel Management C.B. Mamoria
Personal management Munappa

Personal Management and Human Resource Management


Robins.