Dessertation Project

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd
An Internship Report on
AN ORGANIZATIONAL STUDY
CARRIED OUT AT
V- GUARD INDUSTRIES PVT.LTD

Internship Report submitted in partial fulfillment of the requirement
for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY
By
Mr. AJITH AYYAPPAN S
Reg.No.11YYCMA001
Under the guidance of
Mr. Shahid Akbar Shah
Asst. Professor
PADMASHREE INSTITUTE OF MANAGEMENT

STUDIES
#149, Padmashree Campus, Komaghatta,
Kengeri, Bangalore 5600
Batch 2011-2013
Padmashree Institute Of Management Studies

Page 1
STUDENTS DECLARATION
I, hereby declare that this project report entitled Organisational Study

on V-Guard Industries Limited has been prepared by me during the
academic year 2011-2013 under the guidance of Mr. Shahid Akbar Shah,
Department
of
Management
Studies,
Padmashree
Institute
of
Management Studies , Bangalore.

I also declare that this project has been conducted in partial fulfilment of
the requirement for the award of the degree of M.B.A under Bangalore
University. This is my original work and not submitted for the award of
any other degree, diploma, fellowship or any other similar title.
Place: Bangalore
AJITH AYYAPPAN S
Date:
Reg No: 11YYCMA001

Page 2
ACKNOWLEDGEMENT
With a grateful heart, I would like to thank God almighty for his invisible guidance
and blessing without which the successful completion of this study would have been
only a dream
I express my sincere thanks to Human resource Manager Mr. John Mathew Sebastian
and staff of The V- Guard Industries Limited for having granted me the permission to
do the organisation study and also for the help and support extended to me as
organizational guide.
Its my duty to express
deep sense of thanks and gratitude to our Director
Dr.K.Y.Reddy, and other faculty members of MBA department, Padmashree Institute

of Management Studies, Bangalore for permitting me to undergo this internship
training at The V- Guard Industries Limited ,Kochi.
My sincere thanks to my guide Mr Shahid Akbar Shah, Assistant Professor, MBA for
his knowledgeable guidance to my organization study .He has been a constant source
of inspiration for my organization study.
I affectionately express my gratitude to my parents and friends who have helped me in
completing this organization study report successfully.
AJITH AYYAPPAN S

Page 3
TABLE OF CONTENTS
CHAPTER
PARTICULARS
NO.
PAGE
NO.
List of Figures
INTRODUCTION
7-14
2.1 INDUSTRIAL PROFILE

2.2 COMPANY PROFILE
2.3 PRODUCT PROFILE
16-22
23-33
34-39
3.1 ORGANISATIONAL STRUCTURE

3.2 7S FRAMEWORK
3.3 DEPARTMENTAL ANALYSIS
41-42
42-46
47-80
4.1 SWOT ANALYSIS

4.2 VISION & MISSION
82-83
85
5.1 FINDINGS
5.2 CONCLUSIONS
5.3 SUGGESTIONS
86
87
88
BIBLIOGRAPHY
89

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LIST OF FIGURES AND DIAGRAMS

Table No.
1
Description
Page No.
Product profile
33-39
Organizational chart
42-42
Mc Kinseys 7s frame work
43-43
Customer service department Structure
50-50
Electronic& New product department structure
53-53
Electro mechanical department structure
55-55
Finance Department structure
57-57
Human resource management structure
62-62
Marketing management structure
72-72
10
Presence of v- Guard In India
76-76
11
Mechanical & Electrical department
77-77
12
Systems department
79-79
13
Supply chain management department
80-80
14
Rotary- BinaniZinc CSR Award
81-81
15
Shanti Mandiram
82-82
2
3

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CHAPTER 1
Introduction

Page 6
1.1 INTRODUCTION
Organization is a social unit which is deliberately constructed and reconstructed to
seek specific goals .An organization comes into existence when there are a number of
persons in communication and relationship to each other and are willing to contribute
towards a common endeavour. The evolution of organization dates back to the early
stages of human civilization when two or more persons began to cooperate and
combine together for fulfilling their basic needs of food, clothing ,shelter and
protection of life .Thus an organization is born when people combine their efforts for
some common purpose. It is a universal truth that an individual is unable to fulfil his
needs and desire alone because he lacks strength, ability and resources. So he seeks
the
cooperation
of
other
people
who
share
goals
with
them.
This organization study is carried out at V-Guard Industries Limited, kochin. The
organization study has been carried out to get an understanding of the structure and
functioning of the organisation.
In this organizational study at V- GUARD INDUSTRIES LIMITED, KOCHIN is an
attempt made to study and understand about the basic elements of an organization
including the functional and the management aspects. V-Guard Industries Ltd- one of
India's top electrical & electronics majors has crossed a gross turnover of Rs.1000
crores for the financial year 2011-12. The company bagged the prestigious 29th
Annual Young Managers contest, 2011, organized by Kerala Management Association
(KMA) on 18th Feb 2011... The study helped me to understand about growth of
electronic and electrical Industry for past five decades in India, business development
and expansion.

Page 7
1.2 OBJECTIVES OF THE STUDY

To get an insight over the functioning of the company and to familiarize with its
various functions
To understand the organization structure and processes in a practical setting
To get an idea about how different functional departments are structured and
how each one of them operate.
To know how the key business processes are being carried out in a
manufacturing firm.
To have first hand information about the various policies and programmes of the
firm.
To analyse real life business problems and apply the concepts and theory learnt
in the class room.
1.3 KEY INDUSTRY REGULATIONS AND POLICIES

The relevant provisions of some of the regulations and policies applicable to us are
given below:
The Factories Act, 1948

The Factories Act has been enacted to consolidate and amend the law regulating
labour in factories. The Act aims at protecting human beings from being subjected to
unduly hours of bodily strain or manual labour. The Act provides that employees
should work in healthy and sanitary condition so far as the manufacturing process will
allow and that precautions should be taken for their safety and the preventions of
accidents.
The Contract (Regulation and Abolition) Act, 1970

Page 8
The Act applies to every establishment in which 20 or more workmen are employed
or were employed on any day of the preceding 12 months as contract labour and to
every contractor who employs or who employed on any day of the preceding 12
months 20 or more workmen.
The Environment (Protection) Act, 1986

The Act provides for protection and improvement of environment and for matters
connected therewith. The Act aims at prevention of hazards to human beings, other
living creatures, plants and property. Under the Act the Central Government shall
have the power to take all measures as it deems necessary or expedient for the
purpose of protecting and improving the quality of the environment and preventing
and controlling environmental pollution.
The Central Excise Act, 1944

The Central Excise Act consolidates and amends the law relating to Central Duties of
Excise on goods manufactured or produced in India. Excisable goods under the Act
means goods specified in the Schedule to the Central Excise Tariff Act, 1985 as being
subject to duty of excise .Under the Act a duty of excise is levied on all excisable
goods, which are produced or manufactured in India as, and at the rates, set forth in
the First Schedule to the Central Excise Tariff Act, 1985.
The Employees Provident Fund Act, 1952

The Act provides for the institution of Provident Funds, Pension Fund and DepositLinked insurance fund for employees in Factories and other Establishments. The Act
applies to (a) every establishment which is a factory engaged in any industry specified
in Schedule of the Act and in which 20 or more persons are employed and (b) any
other establishment which the Central Government by Notification specify giving not
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less than two months notice of its intention to do so in the Official Gazette. Effective
from 01.06.2001, every employee drawing wages and Dearness Allowance up to Rs.
6500/-per month will become eligible for membership from the very first day of his
joining the establishment covered under the Act.
The Employees State Insurance Act, 1948

The object of the Employees State Insurance Act 1948 is to provide for certain
benefits to employees in case of sickness, maternity and employment injury and to
make provisions for certain other matters in relation there to The woman employees
also need no longer fear that they would be dismissed or removed from service in case
they expect babies. Such female employees not only retain their jobs but they get
maternity benefits for a period of twelve week before and after confinement... Failure
to fulfil those obligations exposes an employer to prosecution.
The Payment of Gratuity Act, 1972

The payment of gratuity Act, 1972 was enacted to introduce a scheme for payment of
gratuity for certain employees employed in Industrial and commercial establishment
as a measure of social security. The Act has made provisions relating to lay off and
retrenchment to establishments to which the Act applies. Special provisions have also
been made in respect of lay-off, retrenchment and closure in certain establishment.
Workmens Compensation Act, 1923

The act was enacted to provide for the payment of compensation by certain classes of
employers to their workmen. The act contains provisions for payment of
compensation for personal injury caused by accident or any disease or various kinds
of disablement (partial or whole or temporary or permanent etc.), all arising out of or
in course of employment
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1.4 SCOPE OF THE STUDY

The internship training was intended to provide industrial exposure and bridge the gap
between theory and practice. The study mainly covered the few departments of VGuard Industries Limited namely Customer service department, Human Resource
department, finance department, marketing department, production department
e.tc... And was intended only for a period of one month from 1 st Aug 2012 to 31st Aug
2012. The study was mainly conducted to understand the functions, processes and
procedures of different departments of the company.
1.5 LIMITATIONS OF THE STUDY
The study had its own limitations too .Following is some of the limitations of the
study
Time constraint prevented the complete collection of data
The inability to obtain the confidential datas.
The study was conducted in a single organisation; hence comparison with similar
organisation was not possible.
The study was carried out partly relying on the journals and publications.
All the employees were in a busy schedule, hence there was an inconvenience in
collecting enough suggestions and opinions.
1.6 RESEARCH METHODOLOGY

The methodology includes collection and observation of primary and secondary data.
Both primary and secondary data were used for the completion of the organizational
study. Primary data has been collected through personal interview with department

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heads, employees e.tc and secondary data was collected from the organizational
manual and different departmental manuals, brochures, records and websites.
Research Method
Research in common refers to search of knowledge. It is a systematic search for
information on a specific topic. Research method is understood as all those
methods/techniques that are use for conducting a research. It refers to the behaviour
and instruments used in selecting and constructing research technique.
Research Process
Research process consists of a series of actions or steps necessary to effectively carry
out research. Steps in Research Process are:1. Formulating the Research Problem
2. Extensive Literature Review
3. Developing the objectives
4. Preparing the Research Design including Sample Design
5. Collecting the Data
6. Analysis of Data
7. Generalization and Interpretation
8. Preparation of the Report or Presentation of Results-Formal writes ups of
Conclusions reached.

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Research problem
A research problem is the situation that causes the researcher to feel apprehensive,
confused and ill at ease. It is the demarcation of a problem area within a certain
context involving the WHO or WHAT, the WHERE, the WHEN and the WHY of the
problem situation. There are many problem situations that may give rise to research.
Three sources usually contribute to problem identification. Own experience or the
experience of others may be a source of problem supply. A second source could be
scientific literature. You may read about certain findings and notice that a certain
field was not covered. This could lead to a research problem. Theories could be a
third source. Shortcomings in theories could be researched.
Research Design
Research design is the conceptual structure within which research would be
conducted. Research design is a framework or blueprint for conducting a research
project. Research design is needed because it facilitates the smooth sailing of the
various research operations. The function of research design is to provide for the
collection of relevant information with minimal expenditure of effort, time and
money. Research design can be divided into fixed and flexible research designs . Fixed
designs are normally theory driven; otherwise its impossible to know in advance
which variables need to be controlled and measured. Often, these variables are
measured quantitatively. Flexible designs allow for more freedom during the data
collection process.
This study was a descriptive study conducted mainly to familiarise with the activities,
processes, policies, programmes and procedures followed in the firm. Required data
Page 13
for the study was collected through monitoring and interrogation. The study is made
personally visiting the company at Vennala, Kochi .The data were collected through
various methods. The methods adopted mainly are:
1) Primary data
2) Secondary data
Primary data
Primary data collected through discussion with manager, various department heads,
officers and employees.
Secondary data
Secondary data for the study was collected from internal annual reports, website, and
office records were used for collecting relevant information for this study and external
sources. Internal records like annual reports, website, office records, management
reports, house magazines were used for collecting relevant information for this study.
The data needed to prepare this project was obtained from other published sources
like internet, magazines, business dailies, journals and business magazines.

Page 14
CHAPTER 2
Industrial profile
Company profile
Product profile
2.1 INDUSTRIAL PROFILE

Electricity is a cornerstone of national economy of any country and electrical industry
is so robust that prosperity and development of a country banks on it. The industry has
become an integral traction of the economy of a country, helps in promoting business
Page 15
development and expansion, and opens the flood gate of employment opportunities
for people throughout the world.
Indian Electrical Industry
In the past, the pace of growth of the Indian electrical industry was laggard for want
of co-ordination & co-operation between authorities and development agencies and
technology backwardness. But at present, concerted efforts are made to rationalize the
power distribution industry & integrate power generation. The inception of electrical
manufacturing industry in India is recent and making humble progress because of
poor technology and dearth of research & development. Technological development is
something on which, electronic manufacturing heavily depends for its survival,
growth, and expansion and no manufacturer can survive unless he keeps himself in
line with the technological progress. The performance of the electrical industry is
closely connected with the electricity program of the country, so Indian government
devised an ambitious mission to provide power to all by 2012. This will multiply the
demand for heavy electrical equipments. The country is capable of manufacturing
heavy electrical equipment because there is a potent manufacturing foothold and
technology & infrastructure are available, competing with global standard.
Electronic Industry
The electronic industry has carved a niche in the metamorphosing and globalized
market. Ameliorating and accelerating high technology innovation & development is
instrumental in the expansion of the industry. India is the fifth largest economy in the
world and marked down as a second largest gross domestic product (GDP) among the
rising economies. Because of its gargantuan population and the immense consumer
demand, robust growth performance can be ensured. The liberalization of the Indian
Page 16
economy has caused constant change in financial, regulatory and monetary policies
leading to a faster pace of growth.
Electronics is one of the fastest growing segments of Indian industry both in terms of
production and exports. De-license of the industry along with liberalization in foreign
investment and concession in import tariff, attracts global players. Vast indigenous
market and efficient production base are also an attraction to the overseas companies.
2.2 GLOBAL SCENARIO
There is a sizeable potential market for voltage regulators in Asia, South America,
Africa and the Middle East since their electrical generations and distribution
infrastructure is still nascent. While fluctuation in supply voltage in the United States
is about 5 percent, it is around 20 percent in Mexico and South America and 10 to 15
percent in developing nations of Asia. Such fluctuations are very damaging; especially
because most applications connected to the supply have many electric components
Countries that lack a basic national power infrastructure generate power for individual
establishments on a small scale using crude facilities. Such plants, especially the ones
located near mines and oil wells, have substantial need for voltage regulation .The
drive to modernize industrial and telecommunications systems in developing
countries has to be backed with investments in voltage regulators to protect the
equipment and extend their lives. While customers readily invest in uninterruptible
power supply (UPS) systems to safeguard against black outs, they seldom feel the
need to install voltage regulators because of the invisibility of power fluctuations
.This mind set has to be remedied by emphasizing the importance of controlling
fluctuations to prevent damage to loads connected to the supply.

Page 17
Greater customer advances about advantages of each voltage regulating technology

and the applications they are suited for can also drive demand.
2.3 INDIAN SCENARIO
Voltage stabilizer are considered to be a necessity in most parts of India to protect
consumer appliances like TV, refrigerators, air conditioners etc as many regions in
India face problem of poor quality power supply fluctuation & high voltage. Though
some models of these appliances are sold with built in stabilizer, many consumers still
prefer to employ stabilizer for complete protection. The total market size for the
consumer durables market is about Rs 13600 crore in which CTV is the largest
contributor in this segment and the market has been estimated at 15.15 million units in
the year 2009-2010(Source: IMRB international survey August 2007) the consumer
durable sector has witnessed an overall growth of 27.5%in 2009 compared to the
corresponding previous year. The sectors which have recorded excellent growth rates
in terms of quantity produced are air conditioners. Colour TV, and refrigerators which
in turn lead to increase in the growth rate of stabilizers in the market tremendously.
2.4 ENTRY INTO GARMENTS
Chittilappilly empowerment of trusted people to implement projects and run them
independently has been a management practice, which was stretched to his wife
Sheela. A garment unit was started and Sheela was fully delegated to run the business.
It was a bold decision to enter a diversified business activity. Chittilappilly was
confident that his wife with her skills in managing home, and interest and
involvement in social projects, could manage this garment unit. "It was her own idea",
Chittilappilly remembers with confidence. Chittilappilly was confident that it was a
business suited to her frame of mind. The confidence is reinforced by the fact that this
Page 18
sector is growing upwardly with much scope for ` exports. However, Chittilappilly
wanted the brand name to be delinked from V-Guard. Therefore, the garment products
were branded as "V Star". At present, the unit sells ladies garments and has a turnover
of approximately Rs. 10.5crones (2003-04). The garment was also outsourced as the
management team had become experienced in running business with complete out
sourcing. At present, the unit faces much competition from unorganized sector, which
is virtually exempt from tax burdens. However V Star's products are targeted towards
the brand conscious up Segment consumers enabling the price to be higher than the
unbranded garments. V Star products are sold through selected outlets where choosy
and finicky women flock in.
2.5 REALIZATION OF A GREAT DREAM: THE THEME PARK
Chittilappilly continuously exercised delegation to his trusted senior management
team consisting of Mr.Vijayan, the GM, Mr. Antony Sebastian, the DGM and Mr. Jay
raj, the AGM, and others. A. major intention was to set apart his time for creative
conceptualization of new projects. Moreover, it enabled him to get out of the
monotony in mundane and routine operations for which his management team is one
more thorough than Chittilappilly himself. It was his desire to do something
unconventional and different from his main stream of business activity. He used to
spend his leisure time in going to amusement parks than going for shopping. A visit
with his family to many such amusement parks in India and abroad created so much
passion for starting an amusement park in Cochin. He said a man to his desire not
because of the 18acres of beautiful land he possessed at Kakannad, the suburb of
Cochin, but because he wanted to be truly creative and unconventional in his
new endeavours. Moreover, he was confident that an amusement park of this kind
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would generate rich cash inflow due to its attractiveness to a vast majority of funloving Keralites.A market research by V-Guard team showed that more than 50 % of
the visitors to parks located in neighbouring Tamil Nadu are Keralites.A.
Chittilappilly confidence was strengthened by the belief that this project with its
comparatively lesser portion of variable expense and at current level of fixed cost can
generate higher sales revenue and profit with reasonably higher margin. Without a
second thought, he conveyed his new idea to his management team and separated a
set of creative-minded subordinates for exploring and exploiting this opportunity.
Eighteen acres of land was added to the existing property to convert the land into a
beautiful landscape. The team was sent to different amusement parks in India and
abroad and they were energized to go into action. It took two years of meticulous
planning and action for Chittilappilly's team to open the floodgates of V-Guard
amusement park to the public in 2000. While selecting human resources for
Veegaland, Chittilappilly was not particular not to pick up anyone having previous
experience in water theme parks, nor did he choose an architect who had experience
in designing theme parks. This was because he was apprehensive of stereotyping and
imitation, which would hamper the creative and innovative culture that V-Guard team
possessed. "A seasoned architect wouldn't accept my ideas", Chittilappilly says.
Therefore, a young and dynamic architect was chosen for this Herculean task. Yet
Chittilappilly confesses that some premature ideas were implemented in the initial
stage which had to be rectified later. The visit to leading theme parks in India and
abroad by the selected empowered team and their experiential learning put
tremendous confidence in the team. Chittilappilly was only coordinating their visit
and action plans. It is amazing to note that even the food and beverage team intended
Page 20
to run the restaurants and eat-outs inVeegaland were from V-Guard Itself. Attention to
every detail and precision and the hard labour of the team made a highly cherished
dream a reality. In 2005, Veegaland is completing its fifth year of operation. People
visit Veegaland just like they go for religious pilgrimage. The beautiful and clean
ambience of Veegaland is a unique experience for the visitors. No wonder many
members of the maintenance staff are engaged in painting and repainting the inside of
the theme park to upkeep the fresh outlook. Although school children constitute the
major segment, Gulf malayalies are a niche segment and brand ambassadors of
Veegaland. These NRIs give good word of mouth publicity for the theme park .VGuard's strong dealer network helped very much in promoting Veegaland in distant
parts of Kerala and outside. A theme park like this is affordable and matching with the
life style of Keralites.A. The investment in the park is comparably so high that the
facilities, design, service and amusement level are unmatchable. Hence, the
investment has caused entry barriers for other ambitious business groups to try their
fortune in a theme park. The scale and magnitude of visitors is very encouraging
according to the management team of Veegaland. In the peak months of March, April
and May, the number of visitors rises to as high as 5,000 per day. This unexpected
boom in the number of visitors necessitated major modification and expansion
involving doubling of the capital investment. With an entry fee of Rs. 350 on weekend
days and Rs. 280 on other days, and 2/3rd of that for children, it is good money that
the business brings. Even with a low figure of 500 visitors per day during lean season,
Veegaland was able to achieve a turnover of Rs.18.5 crore and a net profit of around
Rs. 5 crore in 2004. Even with a daily cost of Rs.30, 000 for electricity and nearly 200
permanent staff, the management makes it a point not to shut the doors for public
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even on day of leanest traffic. Encouraged by the positive outcome and personal
satisfaction, Chittilappilly enjoys from this venture. Chittilappillys vision stretched to
Bangalore making a jewel in Bangalore, a water amusement park which is expected to
be much more attractive than the Vrindavan gardens. The project is underway at the
outskirts of Bangalore. As in the past, a team is cut out from V-Guard, and Veegaland
now headed by Chittilappilly own Australian-educated engineer son and his wife. The
park is to be spread over a large span of 80 acres when it becomes fully operational. It
is comparable to the world-class theme parks. The investment cost is Rs. 65 crore.
Seventy-five percent of the financing is through loan.
2.6 FACTORS GOVERNING THE GROWTH OF THE INDUSTRY
Every industry thrives on some supporting factors. in this connection there are
few factors governing the growth of electrical and electronic industry.
Research and development played an important role to the increased
productivity and higher value added electrical and electronic products.
Foreign investments accelerated growth in production and export as well. to
expand their business ,foreign companies have done huge investments which
lead developing countries in establishing production units.
Global industries like medical, telecommunications, industrial and automotive
industries have been cordially supported by electrical and electronic industry.
Increase in income changed living standards of the common mass. As a result,
it increased in the demand of electronics especially consumer electronics
product globally.
Asia pacific region is emerging as the most spinning place for the consumer
electronics industry, as the market remains still unreached. Innovation has
played importantly in this industry .it led to a consistent demand for newer and
faster products and applications

Page 22
2.2 COMPANY PROFILES

2.2.1 BACK GROUND
In 1977, Shri.Kochouseph Chittilappilly began a small manufacturing unit for voltage
stabilizers with a vision and a capital of Rs 1, 00,000 borrowed from his father. He
soon established V-Guard Industries as a household name. V-Guard became the
synonym for voltage stabilizers across South India. The company soon extended their
range of products to include Pumps & Motors, Electric Water Heaters, Solar Water
Heaters, Cables, UPSs, and Ceiling Fans.
V-Guard continues to remain at the helm through rigorous research and development.
R&D labs at Cochin and Coimbatore explore and reinvent existing products and
design. R&D for electronic products and electric geysers are carried out in Cochin
while electro-mechanical products, electrical wires and solar water heaters are the
strong point of the Coimbatore R&D lab. State of the art production centres ensure
consistency and quality throughout the product range.
Workforce being the core asset of any organisation, V-Guard has employee strength of
more than 1300 and over 5500 indirect employees through its SHG initiatives. With
nearly 200 distributors and service centres and above 9500 retailers serving the needs
of a 50 million customers, V-Guard stands as a market leader.
2.2.2 MAJOR EVENTS AND BREAK THROUGH

Page 23
1977: Mr KOCHUSEPH CHITTILAPPILY set up premier electronics with an

investment of Rs 100000 and with just two employees. Two refrigerator
stabilizer were manufacture each day
1980: Launched AC stabilizer
1982: Started another unit called-Universal Electronics
1983: Started supreme Electronics
1986: Started prompt India. Expanded operations outside Kerala by opening of Tamil
Nadu branch, followed by a branch in Karnataka. Prompt India started
marketing stabilizer in the name of V-guard.
1987: Launched Servo-Controlled Stabilizers
1989: Prompt India converted into V- guard industries
1992: Launched v guard pumps and started a new branch office in Andhra Pradesh
1996: v guard industries became a public limited company. Launched V- Guard Water
heaters and wiring cables.
1997: launched Aquatron, an electronic water level controller for overhead water
Tanks
1998: launched UPS
1999: launched digital stabilizer and diversified into electric cables business withV
guard cable manufacturing unit at Coimbatore.
2000: turnover crosses INR 1000 Million mark
2001: Launched compressor pumps. Company is converted into PVT ltd for Better
manoeuvrability
2002: launched v guard solar water heaters

Page 24
2003: solar water heater manufacturing unit and electro mechanical works for
manufacturing pumps in Coimbatore becomes operational. Branch office started
in Delhi
2005: launched solar water heaters with evacuated glass tube collected Technology.
2006: launched v guard fans. Branch office in Bhubaneswar, Pune and Hubli
2007: new branch offices at Vijayawada. , Bhopal, kalaamb, Vadodara, Kanpur,
Nagpur, Raipur, Jamshedpur, Ludhiana, and Jaipur. Turnover crossedINR 2400
million marks. V guard industries became a public limited company.
2008: Listed in BSE and NSE. Launched inverters & LT cables, new factories at
Coimbatore & Kashipur established.
2009: new LT cable factories at Kashipur and Coimbatore become operational
2009: opened manufacturing facility for water heaters and fan at Kalaamb, HP
2010: turnover crosses 4600 million marks.
2.2.3 PRESENT SCENARIO
The Financial Year 2011-12 has been another milestone in the history of the Company
and a memorable year for the Organization with gross revenue from operations
crossing 1000 crores. During the year under review gross revenue from operations
was 1,006.78 crores and net revenue from operations were 993.63 crores representing
a growth of 36.75% over the net revenue from Operations of 726.62 crores for the
previous year. Company has completed the construction of distribution centres at
Hubli and Vijayawada during the year under review and thus completed all the
projects of the Initial Public Offer. Project relating to construction of a state of art
facility for the manufacture of Solar Water Heater of different capacities at the
industrial land acquired in Perundurai has been completed and commercial production
Page 25
is expected to commence during the Financial Year 2012-13.During the year

Company had organized V-Guard BIG IDEA Business Plan Contest 2011 inviting
B-Tech and B-School students to come up with Business Plans as to what they
thought the Company should be doing for achieving its growth plans in future and to
make V-Guard a trusted household name.
2.2.4 CERTIFICATION, AWARDS AND RECOGNITION
1
Best entrepreneur in Kerala awarded to Kochuseph Chittalllappilly, CMD, V
2
3
guard industries Pvt Ltd. (1993)

Highest individual income tax payer from the state 1993 to 1995.
Vyavasaya jyothi award given by the Ernakulum chamber of commerce.
(1996)
Industry excellence award for medium scale industries awarded by the
5
6
7
8
institution of engineering (India), Cochin (1998)

Millennium businessman of Kerala awarded by business deepika (2000)
Business man of the year awarded by dhanam magazine (2007)
Kerala no 1 consumer durables product category from dhanam magazine
Fact MKK nayar memorial productivity award for the year 2006-2007 from
Kerala state development corporation
2.2.5 PROMOTERS OF V-GUARD

Mr. Kochouseph Chittilappilly, Post graduate in Science majoring in Physics from
Calicut University.
Ms. Sheela Kochouseph, B.Sc, Home Science graduate from University of Calicut
2.2.6 BOARD OF DIRECTORS
CHAIRMAN
: Shri. P G R Prasad
VICE CHAIRMAN
: Shri. Kochouseph Chittilappilly
MANAGING DIRECTOR
: Shri Mithun K Chittilappilly
JOINT MANAGING DIRECTOR
: Dr. George Sleeba

Page 26
DIRECTOR
: Shri. C J George
DIRECTOR
: Shri. A K Nair
BOARD COMMITTEES
AUDIT COMMITTEE:CHAIRMAN
MEMBER
: Shri. Mithun K Chittilappilly
MEMBER
: Shri. C J George
MEMBER
: Shri. A K Nair
REMUNERATION COMMITTEE:CHAIRMAN
: Shri C J George
MEMBER
MEMBER
: Shri. A K Nair
MEMBER
: Shri Kochouseph Chittilappilly
SHAREHOLDERS GRIEVANCE
TRANSFER COMMITTEE:CHAIRMAN
: Shri. C J George
MEMBER
MEMBER
: Shri. Mithun K Chittilappilly
CHIEF FINANCIAL OFFICER
: Shri. A Jacob Kuruvilla
COMPANY SECRETARY
: Smt. Jayasree K
AUDITORS
: Deloitte Haskins and Sells

Chartered Accountants

Page 27
Kochi-682016
BANKERS
: The Dhanalaxmi Bank Ltd.

State Bank of India
Standard Chartered Bank
Citi Bank
HDFC Bank Ltd.
Axis Bank Ltd.
Yes Bank Ltd.
Development Bank of Singapore Ltd
REGISTRAR & SHARE TRANSFER AGENT
: Link Intime India Private Limited

Surya, 35, May Flower Avenue,
Behind Senthil Nagar,
SouripalayamRoad,
Coimbatore-641028
Phone: 0422-2314792
Email:coimbatore@linkintime.co.in
LISTED AT
: The National Stock exchange

of India Limited
The Bombay Stock Exchange Limited
2.2.6 LOCATION DETAILS

Page 28
Selection of proper location is essential for the smooth functioning of the company.
Major reason for the selection of this location is availability of transportation
facilities, Banking facilities and well skilled labours.
Factory/plant
Cable & Solar: K.G. Chavadi, Survey No. 569/2A, 566/2, Ettimadai Village
Coimbatore - 641105
Tamil Nadu India
Factory/plant
2/113 E, Karayam Palayam Road, Mylampatti Post

Coimbatore - 641014
Tamil Nadu India
Factory/plant
6th K M Stone, Moradabad Road, KhasraNo.86, Village Basai, Kashipur

Udham Singh Nagar Di Uttaranchal India
Registered Office
33/2905 F, Vennala High School Road, Vennala

Cochin - 682028
Kerala - India
Phone : 3005000, 2005000
Email : mail@vguard.in
Factory/plant
Vill. Bankebada, P.O. Moginand, Tehsil Nahan

Sirmour District - 173030
Himachal Pradesh India
2.2.7 IDENTIFICATION OF NEW AREA

V Guard continues to identify new application areas as constantly as they can. VGuard Industries is also a holding company for other establishments such

Page 29
as Wonderla and Veegaland, amusement parks, V-Star Creations, a sister concern of V

Guard Group.
2.2.8 SOCIAL OBLIGATION

The Company has been making meaningful contributions to the society in different
areas, for decades now. CSR activities at V-Guard Industries Ltd. extend well beyond
its business objectives, and the Companys concerns for the society are evident from
the various initiatives it has taken indifferent fields. V-Guard aims at bringing about a
radical transformation in the quality of life of people living in and around the
operating divisions of the Company through positive intervention in social upliftment
programs. Its key areas of focus are Health, Education, Environment, Women
Empowerment and Youth Development.
Some of the CSR activities undertaken are:
A) Social Welfare Fund for Ailing Cancer Patients
B) Employment Opportunities to Women & Underprivileged
C) Extending Educational assistance to poor students through Rajagiri Outreach
Program
D) Caring for the aged women and physically disabled children through the
Thomas
E) ChittilappillyTrust
F) Children Education Sponsorship Project (CESP)
G) Adoption of Government Vennala Higher Secondary School, Ernakulum. With
the objective
H) Of improving its physical infrastructure and quality of education.
2.2.9 TEAM WORK

Team work is the ability to together towards the common vision. Its the ability to
direct individual accomplishment towards organizational objectives. Its a fuel that

Page 30
allows common people to attain uncommon results. In V-Guard the team work is
outstanding and their achievements are excellent. The companys goal for equity,
efficiency and customer satisfaction are met through team work and continual quality
improvement.
2.2.10 INFRASTRUCTURE FACILITIES

Infrastructure facilities: Facilities available for manufacturing materials are:
Winding machines element testing machine metal spraying machine

Curling machine welding machine
Heating ovens
AC plant for environment conditioning
DC and AC testing equipments
Winding machine is used for winding the film
Element testing machines are used for winding material whether it is
appropriate or not.
Spraying machine is used for spraying the zinc on the top and bottom part of winded
material.
Curling machine is used for sealing of the cells after filling.
These are latest sophisticated machines, and out of these some of the machines
are imported from other countries to make the work easy, fast and time saving.
2.2.11 QUALITY CONTROL

Stringent quality control measures have been implemented at every level at V-Guard,
ensuring that products and processes are of the highest quality, superior design and
optimum output. From procurement of raw material and components to the final roll
out of products, international standards are adhered to.
MNRE CRISIL

Page 31
The Solar Water Heater Division was awarded the prestigious MNRE CRISIL rating
which indicates High performance Capability and moderate Financial Strength of the
company to undertake off grid projects in Solar Thermal Technology. The Ministry of
New and Renewable Energy accredits companies that have efficient products and
capabilities for this certification.
BIS
The Pumps and motor factory at Coimbatore (Electro Mechanical Works) bears the
Bureau of Indian Standards certification (Licence CM/L - 3315141 as per IS 14220:
1994) for quality of the pumps produced. It certifies the quality and performance of
the water pumps manufactured at EMW.
ISO 9001-2008
The V-Guard R&D division at Cochin was awarded the ISO 9001:2008 for excellence
in quality management systems in Design and Development of Electronic Equipments
proving the efficacy of the efforts at V-Guard to reinvent products.
ISO 14001-2007
V-Guard factories at Coimbatore and Kashipur also bear the ISO certification for
conforming to the highest international standards of environment management
systems. This certification extends over manufacturing of products like PVC
sheathed/unsheathed insulated cables, LT power & control cables and solar water
heaters.
OHASAS 1800:2007
Page 32
Concern for employee safety has even lead to OHSAS certification of the Coimbatore
and Kashipur factories. Stipulations of the internationally acclaimed Occupational
Hazard and Safety management systems are strictly maintained.

Page 33
2.3 PRODUCT PROFILE

2.3.1 Stabilizers
VGuard is the largest selling brand of electronic voltage stabilizers across India. 5 Mil
lions Of customers were experienced the quality of protection of V-Guard stabilizers
for their home appliances. Since 1977 onwards, V-Guard Stabilizer provides reliable
and trusted protection from voltage fluctuations and used to safeguard the electronic
home appliances like Television, DVD, and DTH Receiver, Music system, Home
Theatre, Water cooler, Refrigerator, Deep Freezer, Air conditioner and Microwave
oven. V-Guard Stabilizers are designed with significant features like HMC
Technology, Fail Safe circuit protection, High and Low voltage Protections, Time
Delay Protection and Built In Thermal Overload Protection.
2.3.2 Solar Water Heaters
Solar water heaters were launched by the company in the year 2002.
The manufacturing base of solar water heating systems has since been improved
substantially with the total number of 49 manufactures securing Bureau of Indian
Standards (BIS) certification for their products, V-Guard Solar Water Heaters, a truly

Page 34
International quality product manufactured at the use the highly efficient Evacuated
Tube Collector system enabling optimal utilization of solar energy. The PUF insulated
stainless steel storage tank prevents heat loss. V-Guard Solar Water Heaters
dramatically cut electricity bills, help conserve energy and are environment Friendly.
They are available in: 100 Lpd, 125 Lpd, 200 Lpd, 300 Lpd, 500 Lpd and 1000 Lpd for
domestic use, and are easy to install and last a life time. V-GUARD ETC solar water
heaters are also manufactured for industrial applications that is for pool heating, Large
hotels, Large hospitals, Factories etc. and are available in 2000Lpd, 3000 Lpd, 4000
Lpd and 5000 Lpd and also according to the requirements.
2.3.3 FANS
V-GUARD fans are sleek and elegant, provide excellent air circulation. Double ball
bearings ensure they keep whirling smoothly for years. The hub and blades have a
powder coated finish and rust resistant. HIGH ANGLE Technology used in blade
design ensures wider coverage. The fans are available in various ranges of colours to
suit the interior dcor.
CW 1548
CW 2048 M
CW 3348
CW 3124 M
SF 4048 M
SF 6148 M
Page 35
2.3.4 Pumps
V guard pumps are made according to ISI standards and specifications using high
quality components and meet high performance standards. They are known for their
Sturdiness durability and dependability. The superior technology used in the
construction ensures better efficiency and lower running costs. More than 150
different models are available with capacities ranging from 0.25 HP to 25HP, and are
ideal for domestic as well as for agricultural purposes.
1)
2)
3)
4)
5)
6)
7)
8)
9)
Self Prime & Mini Monobloc Pumps

Centrifugal Pumps
Open well Submersible Pumps
Jet Pumps
Compressor Pumps
Single phase bore well submersible pumps
3 Phase Bore well Submersible
3 Phases Centrifugal Monobloc
3 Phase Open well Submersible
2.3.5 UPS
Incredibly Intelligent! The trusted companion for the computer, driven by high end
features like advanced PWM MOSFET Technology with PID Control, Zero Power
Drain Technology to prevent Deep Discharge of battery, OFF-MODE battery charging
Page 36
and intelligent software shutdown to provide high quality in power management.

Models available in OFFLINE UPS are:
1)
2)
3)
4)
5)
UPS 60 Royal
UPS 70 Vismaya Plus
UPS 120 EB
Online-UPS - Single Phase to Single Phase
Online-UPS - Three Phases to Single Phase
2.3.6 Electric Water Heaters
V-guard Electric Water Heaters (Geysers) are manufactured in the-state-of-the-art

production set up and comes with ISI mark and Pentad Protection System (PPS). Its
outer body is made of rust proof, shock proof ABS.
2.3.7 Cables
These are manufactured in conformity with ISI standards at an ISO 9001 certified
manufacturing plant located at Coimbatore in Tamil Nadu. V-GUARD PVC wiring
cables are manufactured in conformity with ISI standards at an ISO 9001 certified
manufacturing plant located at Coimbatore in Tamil Nadu. The HFT Technology used
in their production ensures absolute safety from electrical hazards. Multi-core
flat/round cables (up to 3 -core) are available. Each coil has an assured length of 90
meters.
Page 37
2.3.8 Induction Cooker
Energy efficient with multiple cooking modes and feather/soft touch controls.
Induction Cook Tops were launched with different models during the year under
review. The factors like high cost of LPG, Supply shortage, consumption of low units
of electricity for induction cook tops, flameless cooking etc. has influenced to a
considerable extent the growth of the product in the country. The product will be
taken to the other markets of the country in the coming years and the segment is
expected to generate good revenue. The Company is also planning to introduce more
number of models during
The current fiscal to cater to the requirements of the customers.
VIC 20
VIC 20
VIC 300
VIC 400
VIC 1000
2.3.9Switchgears & DBs

Page 38
The product has been launched in the southern markets of the Country and it is
expected to generate moderate revenue from the product line in the current fiscal. The
existing brand equity in the wiring segment will support the sale of the product to a
considerable extent.
Features
1. High quality moulded casing with superior thermal & dielectric strength.
2. Improved and rugged design of operating mechanism.
3. Special design of the arc quenching chamber with additional arc diverter and
flashback arrestor.
4. State of the art Arc Runner System.
5. Silver Graphite Contact Tip for Antiweld property.
6. Clear & visible indication for circuit 'ON' / 'OFF' status.
7. Fully conforming to International Standards EC 60898-1.

Page 39
CHAPTER 3
Organizational structure
7s framework
Departmental analysis

Page 40
3.1 ORGANIZATIONAL STRUCTURE
Board
Board of
of Director's
Director's
Executive
Executive Vice
Vice
Chairman
Chairman
Managing
Managing
Director
Director
CFO
VP
CFO &
& VP
Finance
Finance
Director
Marketing
Director Marketing
&
& Strategy
Strategy
Joint
Joint Managing
Managing
Director
Director
DirectorDirectorAdmin
Admin (HR
(HR &
&
Admin,
Civil)
Admin, Civil)
GMGMAdmin/
Admin/
Civil
Civil
Sr.GM_H
Sr.GM_H
R
R
Asst.
Asst. Mgr
Mgr
Admin
Admin
DGM-HR
DGM-HR
Asst.
Asst. Mgr
Mgr
Civil
Civil
Manager
Manager
Legal
Legal
Sr.
&
Sr. VP(SCM
VP(SCM &
Admin)
Admin)
VP-EMD
VP-EMD
VPCable
VP- Cable
GM-SCM
GM-SCM
EMW
EMW
DGMDGMSCM
SCM
Kalaamb
Kalaamb
Fan
Fan Unit
Unit
Cable
Cable
Division
Division
Kashipur
Kashipur
DGM
DGM
Finance
Finance
&
Accts
& Accts
Custome
Custome
rr Service
Service
Costing
Costing
Zone1
Zone1 VP
VP
Secretari
Secretari
al
al
Zone2
Zone2 VP
VP
Zone3
Zone3 VP
VP
HeadHeadCorporat
Corporat
e
e
Communi
Communi
cation
cation

Page 41
VP-MED
VP-MED &
&
Solar
Solar
Perundur
Perundur
ai
ai
Solar
Solar
Unit
Unit
Coimbat
Coimbat
ore
Kala
Amb
Kalaore
Amb
Water
Water
Hetaer
Hetaer
Unit
Unit
VPVPElectronics
Electronics
Production
Production
R&D
R&D
Electronics
Electronics
&Power
&Power
Products
Products
System
System
ss
3.2 MC KINSEYS 7 S FRAMEWORK
Struct
ure
Syste
m
Strate
gy
Shar
ed
Value
Style
Skills
Staf
The 7s frame work of Mckinsey is a management model that describes 7 factors to

organize a company in a holistic and effective way. Together these factors determine
the way in which a corporation operates. Managers should take into account all
seven of these factors to be sure of successful implementation of a strategy large or
small. They are all independent, so if you fail to pay proper attention to one of them,
this may affect all others as well. On top of that, the relative importance of each
factor may over time.
3.2.1 ORIGIN OF 7S FRAME WORK

Page 42
The 7s framework was first mentioned in The Art of Japanese Management by

Richard Pascale and Anthony Athos in 1981. They had been investigating how
Japanese industry had been so successful. At around the same time that Tom Peters
and Robert Waterman was exploring what made a co excellent. The 7s model was
born at a meeting of these 4 authors in 1978. It appeared also in In search of
Excellence by Peters and Waterman and was taken up as a basic tool by the global
management consultancy.
1. Strategy
2. Structure
3. Systems
4. Style
5. Staf
6. Skills
7. Shared values
3.2.2 STRATEGY
Company follows a unique manufacturing model wherein products are sourced from
SSI units/ small manufactures across South India. The Company contracts with third
parties for the manufacture of voltage Stabilizers, Pumps, UPS, Electric Water
Heaters and Electric Fans which are manufactured according to Companys

Page 43
specifications. Our Company has diversified competencies in this area by maintaining

good and cordial relations with the suppliers.
3.2.3 STRUCTURE
Structure is the organizational chart and associated information that shows who
reports to whom and how tasks are both divided up the way the organizations units
relate to each other and integrated. In other words, structures describe the hierarchy
of authority and accountability in an organization. The way the organization
centralized, functional divisions (top- down); decentralized (the trend in larger
organizations); matrix; network; holding; etc. These relationships are frequently
diagrammed in organizational charts. Most organizations use some mix of
structures; pyramidal, matrix or networked ones; to accomplish their goals. Structure
is the framework which the activities of the organizations members are coordinated.
The four basic structural forms are the functional form, divisional structure, matrix
structure, and network structure. The relationship among the individuals working in
the organization and to coordinate the efforts of different individuals in an efficient
manner.
3.2.4 SYSTEM
It refers to procedures such as information systems, manufacturing
processes, budgeting and control process. Thus it is the procedures. Thus it
is the procedures, processes and competitive advantages present within the
organization
Based on requisition from user department, materials will issue on FIFO basis.

Page 44
Up keeping and cleaning of warehouse and storage areas periodically and
during audits.
Each component is checked for quality compliance, and those that do not meet
set parameters are rejected

Post-production inspection and certification ensures each individual product
that moves off the assembly line conforms to internationally accepted quality
and performance benchmarks

Inventory management and control over minimum stock levels as per
production planning
3.2.5 STAFF
It refers to the quality of people in the enterprise and their social
i z a t i o n i n t o t h e o r g a n i z a t i o n a l c u l t u r e . Traditionally staff is treated in
one of the two ways. Firstly, there will be appraisal systems, pay scales
and formal training. Secondly, the employee morale, attitude, motivation and
behavior are considered. Workforce being the core asset of any organisation, V-Guard
has employee strength of more than 1300 and over 5500 indirect employees through
its SHG initiatives
3.2.6 STYLE
Style of operation in V- Guard mainly top down in nature. The Board of Directors
takes major management decisions. It flows further through Departmental Heads to
the Divisional managers, which is made implemented by the first line employee force.
Style means how managers behave in achieving the organizational goal. A particular
style adopted by the company will have various implications over various people
dealing with the organization and thus it will have an impact over the relation between
the organization and the people.
Page 45
3.2.7 SKILLS
Skill refers to expertness, practical ability, or facility in an action or doing
something. Need for imparting skills to the employees may occur if the employees
are newly recruited or if the skills of already working employees are to be updated.
In all the above situations, skill analysis of the employees is of prime importance
before training.
Skills refer to the fact that skills needed to carry out the companys strategy. Training
and development ensuring people know how to do their jobs and stay up to date with
the latest techniques. The company requires technical skills for production divisions.
Also it requires strong management skills in Human resource divisions. Senior level
executives must be good analyzing individual strength and weaknesses, so that they
can allocate work to individuals effectively. They also must have strong skills of
analyzing the market situation and changes.
3.2.8 SHARED VALUES
What does the organization stands for and what it believes in. central beliefs and
attitudes.

Page 46
3.3 ORGANIZATIONAL DEPARTMENT PROFILE
Customer service department

Electronic and new projects department
Electro mechanical department
Finance and accounts department
Human resource and administration department
Mechanical & Electrical department
Marketing department
Supply chain management
Systems department

Page 47
3.3.1 Customer service department

This department is the provision of service to customers before, during and after a
purchase. Its importance varies by products, industry and customer; defective or
broken merchandise can be exchanged, often only with a receipt and within a
specified time frame. It has total of 15 employees in this department .the customer
service of this company is handled by 275 service centres in 20 states.
DEPARTMENT CHART
Head of
Department
Manager
Zonal Incharge
Branch
Incharge
Service
Incharge
TYPES OF SERVICES PROVIDED

a) Service at service spot
V guard provides service through service centres located in different states customers
who detect complaints can bring them to the nearest service centre to get the required
service.
b) Service at dealers spot
Page 48
Serviced is provided through the dealers who deal with v guard products. In this case,
thecustomers can approach the dealers with the defected product and the dealers
return the Products after the complaint have been rectified.
c) Service at customers spot
Service
is also
provided at
the
spot
where
the
customers
are.
In
this
case, technicians are sent to the customers after the complaint has been reported
.According
to
their
policy;
complaints should be rectified
within
24-
48 hours of registering the complaint.
Levels of services
1) Customer satisfaction
It is ensured that all the complaints are solved within 24 hours of receiving the
complaint .employees are assigned to visit the customers spot for solving issues that
might have occurred while using the product and even replacing the product if
required. The service charges are collected as per the approved manual
2) Customer care
As per the company policies, all the details regarding the service terms, warranty
details, service charges etc are to be displayed in front of the service centre. After the
service has been done, feedback from the customers is collected. This improves them
in correcting their flaws in the service provided and to serve them better. Feedback
regarding the quality of the products, after sales service etc is collected by visiting the
dealers dealing with their products.
3) Customer delight
Page 49
The very favourable experience of the client of a business when they have received a
good or service that significantly surpasses what they had initially anticipated.
A marketing department can
a company's advantage by
use
instances
of
requesting referrals and
customer
delight
to
obtaining testimonials from
delighted customers that can help attract new customers.

Channels for registering complaints
Various channels have been provided to the customers for registering their complaints.
They are:
Through dealers:
The customers are able to register their complaints with the company through the
dealers dealing with their products.
Directly contact to service centres

Customers can report their complaints by contacting the service centre that is the
closest to them.
Contact through helpline

The customers can contact through their toll free number 1800 3000 1800. Custo
mersfrom any state can contact the branch office in the state through this number
Register the complaints through mail

The customer can also register their complaints through mail.
Service efficiency management

The efficiency of the services provided are measured by doing the following
Checking the number of complaints solved within 48 hours Service audit reports
Feedback received from marketing department Feedback received from dealers
Feedback received from end users
Page 50

Page 51
3.3.2 ELECTRONIC AND NEW PRODUCT DEPARTMENT
Electronic and
new products
Senior
Manager
Production
Department
Product
Developme
nt
Product
Engineeri
ng
CARC
MPR
New
Projects
This department is in charge of coming up with the new and innovative ideas,
conducting a study on feasibility analysis. A total of 138 employees belong to this
department. This included quality controllers who are appointed at various factories.
These quality controllers ensure that the processes are being followed as instructed by
the head office. They ensure that the quality of the product is uniform with that of the
products of the other factories. The quality controller approves the components that
are being used in the outsourced factories. They provide such works to charitable
institutions like Cherupushpa electronics, Sengo Pauls Systems. They produce 1.5lakh
stabilizer a month. V guard has about 62 factories in all over India
Production
The production department is in charge of looking into the production patterns and the
processes that is to be followed in all the factories. They make sure that the patterns
and products are uniform and according to the requirements

Page 52
Product development
The product development department conducts research regarding the feasibility of
the new product that may be implemented by the company.
Product engineering:
Product engineering department product standardizes the process that is supposed to
follow and the work that is to be done in the factories. The processes that are formed
at the head office are given to the quality controllers that are appointed at the
various factories. They ensure that the processes are followed as per the orders from
the head office.
Component research and approval centre (CARC)
This department is responsible for testing each component that is to be used in the
manufacture of a product. The test is done over a period of 21 days in which the
suitability and usability of the component is tested .It is checked whether it meets the
expectations of the company. Components as minute as screws, bolts, etc used only
after they have been tested at this centre. Suppliers who are interested in supplying
their materials to the company are made to submit a sample with the centre. Major
suppliers are Keltron and in cap.

Page 53
3.3.3 ELECTRO MECHANICAL DEPARTMENT
Head of
Department
Deputy
Manager
Senior
Engineer
Assistant
Manager
Executives
This department concentrates on production part Based on the nature of products

following
1. Cable
2. Electronics
3 Heating devices
4. Electro mechanical process
5. Dealing with water pumps, Electric fan, motors, switch gears, mixed grinders.
1) Production control

Page 54
Activities involved in handling materials, parts, assemblies, and subassemblies, from

their raw or initial stage to the finished product stage in an organized and efficient
manner. It may also include activities such as planning, scheduling, routing,
dispatching, storage, etc
2) Production developments
Production development is about improving existing production systems and
developing new ones. The production system should be developed in integration with
the product, as a part of the overall product realization process and not in sequence
after the product has already been designed.

Page 55
3.3.4 FINANCE DEPARTMENT

CFO
Head
Accounts
Inventory
Manageme
nt
Secretari
al
State &
Local Tax
Costing
Internal
Audit
Indirect tax&
Vendor
Management
Legal
&Complianc
e
Finance is the life blood of business. Managing the finance is a tedious task in any
organization. The ambitions and plans of business man would remain a merge dreams
unless adequate money is available to cover them in reality. Financial management is
concerned with planning and controlling of the firms financial resources. The
financial management include deciding upon the investment, sources of fund,
dividend financing, fund allocation etc...
V Guard is following decentralized account system
A system of accounting under which most of the accounting operations (sometimes
including compilation of the balance and of accounting reports) are done in separate
divisions of the enterprise. Under decentralized accounting the functions of the main
accounting office consist of verifying the accounts of these divisions, giving
instructions to the accounting workers, and doing the accounting for centralized
operations, including compiling the bookkeeping of balances and reports. Since the
Page 56
decentralized accounting system reduces the possibility of the division of accounting

labour involved in the accounting and its mechanization and increases the overall
volume of accounting procedures and their cost, it is relatively rarely used in practice.
Usually, decentralized accounting is practiced in those sections of an enterprise that
encompass a variety of operations (housing and utilities, public transportation, capital
construction, and other areas, as well as in an enterprises independent sections
territorially separated from its centre (such as purchasing points or agencies,
subsidiaries of large-scale offices and chain stores, and distribution warehouses or
bases of trade organizations).
TYPES OF SOFTWARE FOR ACCOUNTING PROCEDURE
V Guard is using SAP ERP software. With SAP ERP, you can efficiently deal with
business challenges in the following areas:
1) Financials Ensure compliance and predictability of business performance
2) Human Capital Management Optimize your HR processes with a complete,
integrated, and global human capital management (HCM) solution. SAP ERP
provides this HCM solution for organizations of all sizes and in all industries
3) Operations Manage end-to-end procurement and logistics business processes
for complete business cycles from self-service requisitioning to flexible
invoicing and payment optimizing the flow of materials.
ACCOUNTING POLICIES OF V- GUARD INDUSTRIES LTD
Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before
extraordinary items and tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or payments. The

Page 57
cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.
Depreciation and amortisation
Depreciation has been provided under the straight-line method as per the rates
prescribed in Schedule XIV to the Companies Act, 1956 except in respect of Moulds,
Patterns and Dies, which are depreciated over their useful life of 5 years, as estimated
by the Management. Leasehold land is amortised over the duration of the lease. Assets
costing less than ` 5,000 each are fully depreciated in the year of capitalisation.
Intangible assets are amortised over their estimated useful life as follows: Trademark
10 years, Computer software 5 years.
The estimated useful life of the intangible assets and the amortisation period are
reviewed at the end of each financial year and the amortisation method is revised to
reflect the changed pattern.
INVENTORIES, Raw materials & work in process are valued at cost. Finished goods
are valued at cost or net realizable value whichever is less4.
Investments
Long-term investments are carried individually at cost less provision for diminution,
other than temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of investments includes
acquisition charges such as brokerage, fees and duties.
Employee benefits
Employee benefits include provident fund, gratuity fund and compensated absences

Page 58
Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including
the post tax effect of extraordinary items, if any) by the weighted average number of
equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit / (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares, by the weighted average
number of equity shares considered for deriving basic earnings per share and the
weighted average number of equity shares which could have been issued on the
conversion of all dilutive potential equity shares. Potential equity shares are deemed
to be dilutive only if their conversion to equity shares would decrease the net profit
per share from continuing ordinary operations. Potential dilutive equity shares are
deemed to be converted as at the beginning of the period, unless they have been
issued at a later date. The dilutive potential equity shares are adjusted for the proceeds
receivable, had the shares been actually issued at fair value (i.e. average market value
of the outstanding shares). Dilutive potential equity shares are determined
independently for each period presented. The number of equity shares and potentially
dilutive equity shares are adjusted for share splits / reverse share splits and bonus
shares, as appropriate.
Borrowing costs
Borrowing costs include interest; amortisation of ancillary costs incurred and
exchange differences arising from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost. Costs in connection with the borrowing
of funds to the extent not directly related to the acquisition of qualifying assets are
Page 59
charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing
costs, allocated to and utilised for qualifying assets, pertaining to the period from
commencement of activities relating to construction / development of the qualifying
asset up to the date of capitalisation of such asset is added to the cost of the assets.
Capitalisation of borrowing costs is suspended and charged to the Statement of Profit
and Loss during extended periods when active development activity on the qualifying
assets is interrupted

Page 60
3.3.5 HUMAN RESOURCE MANAGEMENT
Director
Senior vice
president
Deputy GM
Senior Officer
Officer
Senior
Executive
Executive
HUMAN RESOURCE develop an organizational culture where superiors subordinate relations,

teamwork and collaboration among different sub units must be strong and contribute to the
organization health, dynamism and employees pride. In short Human Resource Department aims at
helping people to acquire competencies required performing their functions well and
make their organization do well. Thus the Human Resource Department has become very popular
in the last decade and especially the Human resource network of human resource development.
In an organization and a profession body the advancement of knowledge skill, value and
attitude in human resource development are done through education, training and sharing
experience. Human Resource Department in an organization context is a process where employee
of a organization are continuously helped in a planned way to acquire capabilities
required for performing various tasks or functions associates with their present or
Page 61
future expected roles. To develop they are general enabling capabilities as individual
so that they are able to discover and utilize their own inner potential for organizational
development purpose. Now a days human resource development departments are known as
personnel department. In organizations the human resource development functions are taken care by
the personnel department. The main functions of the personnel department are Administration
Welfare measures Good industrial relations
The HR practices
Most of the HR practices of V-Guard industries were a result of the vision of its
founder and the culture that they have been created over the years. The founder
advocated simplicity and maintained the culture of a small company and the
employees were encouraged to share their learning experiences too.
RECRUITMENT
V-Guard's greatest asset is its employees. It is committed to attracting, retaining, and
developing the highest quality and most dedicated work force possible in today's
market. It strives to hire and promote people on the basis of their qualifications,
performance, and abilities, and is determined to provide a work environment free of
any form of discrimination both direct and indirect, including sexual harassments.
While recruiting new employees V-Guard takes adequate care to identify the right
candidates guard focus on recruiting candidates who display a high degree of learn
ability, i.e. candidates who are open to learn new things and supply the same in new
situations we also place significant importance on professional competence, academic
excellence, analytical ability, term work, leadership potential, communication and
innovative skills, along with a practical and structured to problem solving.

Page 62
PERFORMANCE APPRAISAL
A performance appraisal system is a strong tool in the development of human
resources in the organization. It is consider as a mutual feedback to the management
and thereby help to decide the carrier growth, training needs and other human resources
development interventions required for each of them there by aiding their self-development.
Performance is the way forward for every individual and for the company as a whole. It is therefore
vitally important that every individual has a clear understanding of his or her work, objectives and
responsibilities, because performance will measure against these. Performance management must
create a shared vision of purpose and aims of the organization. It must help each individual to
understand and recognize their part of contribution to the organization success and there
by managing and improving the performance of the both individual and organization.
High performance by way of performance management is the only guarantees for survival in an
unpredictable and dynamic world. Managers have to continuously motivate their employees
besides considering other factors that enables superiors level of performance
INFRASTRUCTURE
It is the responsibility of the department heads to identify, defines, provide and
maintain appropriate work facilities that are required for the performance of activities,
processes and service in order to ensure conformance and specified requirements. Facilities
shall include adequate workspace and associated utilities, equipments, hardware and
software, suitable maintenance and other necessary supporting services. To achieve
the performance of activities, processes, end products, delivery and service to the customers
satisfaction the necessary quality plans, work instructions, drawings, test procedures and
checklist are being prepared and adopted.

Page 63
COMPANY POLICY
1) All selected candidates are initially placed on probation for a period of 6
months
2) On completion of probation period and upon recommendation by the head of
the department, the employee shall be absorbed and confirmed onto the rolls
3) Management cadre employees are directly appointed into the skills
BENEFITS AND PERQUISITES

The benefits given to the employees are of two types, statutory and non-statutory
benefits. Statutory benefits
Provident fund
Employee State Insurance
Employees Deposit Linked Insurance
Service Gratuity
Labour Welfare Fund
Bonus
NON-STATUTORY BENEFITS
Reimbursement of travelling expenses

Leave travel allowance
Medical reimbursement
Personal accident insurance and medi claim insurance
Performance linked bonus
Reimbursement of telephone/mobile rent
Incentives to personnel
Group saving linked performance
Benevolent fund Expenses for purchase of suitcase
Concessional loan
Interest free vehicle loans
Higher education loans for employees.
Education allowance to employees' children
V-Guard award for excellence
Veegaland /Wonder Ia passes
Discount offer for V-Guard products
Suggestion awards
Reimbursement of credit card renewal fee
Best Article Award (V and We)

Page 64
Contribution for employees marriage

Performance linked incentive scheme
Types of Leave
1)
2)
3)
4)
5)
6)
Casual Leave
Sick Leave
Annual Leave
Marriage leave
Transfer leave
Maternity leave
Salary components
1)
2)
3)
4)
5)
6)
7)
Basic pay
Dearness allowance
House rent allowance
Conveyance allowance
Compensatory allowance
Special allowance (10% of basic pay and dearness allowance)
Additional compensatory allowance (based on place of posting) Fixed
allowance
8) Stores allowance
HR induction and orientation
When new candidates are hired, they are invited for a one week induction and
orientation programme to corporate office and where the candidate is acquainted
which each and every aspect of the organization. A through integration with hr
&business processes takes place. As part of the induction programme they also
undergo training on motivation, visit to our amusement park and also a visit to our
cable factory located in Coimbatore. All the new joiners have an open interactive
session with the top management including our managing director. A special induction
manual was designed for new joiners together with an induction kit which provide all
the necessary details on the company, allowances and the facilities they are eligible
for.
Sports & games activities
Page 65
V-guard believes in "healthy employees bring better productivity". As part of our

fitness movement we have provided adequate infrastructure to conduct various kind
of indoor as well as outdoor sports. We have separate sports facility, which range from
table tennis to badminton, gymnasium and tie ups with college grounds to conduct
cricket and football matches. company organizes inter-unit sports competition by
making a sports calendar on yearly basis to keep on promoting the spirit of
sportsmanship across our branches the sports activities will come to an end with the
annual sports day scheduled in the month of January 2010 where individual prizes
would be awarded to winners and overall trophy to the department scoring the
maximum points .all the events were coordinated by the recreation club formed for
this purpose.
Leadership development program
On the growing trajectory on which V-Guard is today, there is a strong emphasis on
developing an effective organization that uses its skills in leading and driving its
growth. Hence, our company identifies future leaders by identifying members who
think holistically about the organization, by considering the big picture and act for the
greater good of the enterprise. These members are made to undergo coaching sessions
for meeting their developmental requirements enabling to become the real leaders to
take the organization to greater echelons
Executive development program
All managerial cadre employees are nominated for executive development programs
conducting internally. Trainers are experts in the field and duration of the program
was 6 months (2 days in a month) .training methodology used were case studies,
in basket techniques, business games etc.
Page 66
Social welfare fund

As part of the CSR initiative, we have started a welfare fund to help the ailing cancer
patients in general hospital, Cochin. Every month employees make voluntary
contribution to this fund from the salary. Once the amount collected, the medicines
are purchased based upon the requirements of the cancer ward and its handed over to
the doctor directly by the employees who visit the general hospital every month by
taking turns. This ensures that the medicine reaches the right person. We have
contributed Rs 300,000 worth medicines this financial year.
Departmental tours
As part of the goal setting process for the next financial year departmental tours were
organized which included term building and brain storming sessions. These tips
helped the employees to think out of tile box and give new suggestions in their area.
Employee counselling
Counselling programs were organized for all employees with the help of experienced
counsellors from the respective field.
UNIQUE HR PRACTICES
As we all know requirements of training and experienced professional with the
desired mindset is the need of the hour for any organization to survive and grow in
this competitive environment .while there is node earth of professionals in Indian
industry and people are available in dime a dozen, but what is most important and
difficult to get is the right mindset. This can be easily substantiated by the number
of applications for every job listed on the famous job sites needless to say that
selection of the best candidate with the desired mindset out of such large no of
applicants is a very tedious take. With the business goal being very high the pressure
Page 67
on HR to reduce the time lag for filling a position has substantially reduced. Normally
a position, which was regd. a month to be filled up, has now got to be filled up in 1015 daytime. This has made the job still more challenging. To cope with the growing
expectations of business and in order to give the organization a competitive edge to
the business we in v-guard have streamlined the whole system by integrating the HR
fundamentals with information technology and have adopted some practices unique to
v-guard.
NIYUKTA SAMAAYA
This is our employer engagement programme which we have started in this financial
year. The session is conducted, by inviting employees department wise on a rotational
basis every Saturday in the afternoon, for a period of one hour. Two representatives
from the HR department and a person representing the top management would present
in all the meetings. The program starts with a small introduction followed by an open
session where employees will be free to give their suggestions and speak out their
problems the open session is followed by games to promote team building and
employees are encouraged to exhibit their skills many fruitful suggestions were
received from the employee's sides which were implemented successfully
Online recruitment management system
Under this planed system prospective candidates visit our website and can directly
register their CV for any position listed on the site. Similarly all consultants are also,
required to post their CV through this site. As a result duplication of CV is
immediately identified and not accepted the CV then comes data bank and for short
Page 68
listing /screening both the functional, users and HR dept. has got the rights. Once a
candidate is rejected, immediately information goes to the consultant or to the
candidate. In case this is selected for interview then the information goes for
finalization of interview at specified date and time. This speeds up the whole process
as it does the initial screening of the vital parameters in terms of a g e, qualification,
experience, etc.
3.3.6 MARKETING DEPARTMENT

Department chart
Vice
president
Kerala
Head
Production in
charge of various
products
The marketing department is responsible for sales and promotions of products among
the people so as to have a ready market for them. A number of promotional measures
are in action to maintain an upward trend in sales of the company's products. Sales
turnover of 5-6% is earmarked for advertising the products to relevant segments. Both
Page 69
print and TV media are used for brand communication. Local and English dailies and
weeklies are used for advertisements. Stabilizer, pump set and solar and electric water
heater advertisements find their place in women magazines also. V Star, the separate
garment division advertises mainly in women magazines and TV media. The company
believes that its dealers and distributors are the best brand ambassadors. Therefore, a
number of dealer incentive schemes are in force to keep the dealers momentum
upward. Dealer's meet is held in every two years with the main intention of imparting
relevant sales skills and motivation and rejuvenating the social bond with them. The
company's distributors are exclusive stockists for its products and as such the term of
appointment stipulates that only V Guard's goods would be stocked and supplied by
the distribution.
Types of Distribution activities

i) Distributor oriented sale
In this, the products are available only through distributors. V-Guard has 36
distributors and 3248 dealers all over the country. The company provides their
products to the retailers through the wholesalers. Stabilizers and cables are mainly
distributed through this method.
ii) Direct dealer operations
In this, the products are made available to the consumers through authorized dealers.
Products like fans and UPS are mainly distributed this way
iii)
Direct end user
In this, the products are distributed directly to the customers. There would be any
intermediaries between the company and the customers. Products like online UPS, LT
power cables and project coils are given directly to the customers.
Page 70
Credit Policies
V-Guard extends credit policies when needed. Such services are mostly given to the
old dealers who have been associated with the company for a long time. They allow
such dealers to purchase products on credit. They also accept post dated cheque
Marketing strategies adopted
Company-> Distributors-> Retailers ->Customers
In this strategy, the products are made available to the customers through distributors
and retailers. The company provides the products to the distributors who provide them
to the retailers at the price set by the company. Retailers provide the products to the
customers as per their demand.
Promotions
Every year a budget is set aside solely for advertising expenses. V-Guard gives a lot of
importance in making their presence felt among the public and also making them
aware of the various products that they have to offer. Some of the ways in which they
promote their products are:
Electronic and print media
Dealer meets, Plumber meets and Electricians meets. This is done for the
purpose of product familiarity. Feedback is also collected at such events.

Hoardings, lite and non- lite boards
Acrylic boards
Activities on radio station
Exhibitions in campuses for products like online UPS s
Exhibitions like Vanitha Ice, Vanitha Utsav, Paarpidam, and Thrissur Pooram
Branding
Dummy displays in showrooms
Salesmen meet
Offers and gifts during seasons e.g. Towels gifted with water heaters
Wall paintings e.g. Sabarimala route

Page 71

Page 72
3.3.7 MECHANICAL & ELECTRICAL DEPARTMENT

Page 73
HOD
Senior
Manager
Chief
Officer
Chief
Officer
Deputy
Engineer
Deputy
Engineer
Assistant
Assistant
Engineer
Engineer
s
Engineers
This department consist of 50 employees who look after the corporate planning and
also by controlling its activities

Page 74
3.3.8 RESEARCH AND DEVELOPMENT

The research and development team in the marketing department is responsible for
conducting surveys about products. This survey is mainly done among the dealers to
get their feedback about the demand patterns of the customers and also ideas for
products which have a potential in the market. They then discuss with the concerned
head of departments, management and technicians for their opinions. After this they
move onto the product enhancement stage.
Product strategy
V-Guard has different demand patterns for their products during the year. During the
vacation time i.e. during April and May, the demand for air conditioners is high and so
is the demand for stabilizers. From the month of November till May, the demand for
pumps is high than during the other months of the year. In the months of June, July,
November and December, the demand for water heaters is high. During the summer
season the demand for freezers and coolers is high. During festival seasons like Onam
and Christmas, demand for televisions is high.

Page 75
3.3.9 SYSTEMS DEPARTMENT

DEPARTMENT CHART
GM
SENIOR
MANAGER
Officers
ASSISTANT
MANAGER
Executives
Officers
Executives
The system is responsible for maintaining the data in the organization. The data
centres in v guard is centralized and severs are maintained at the head office. The data
recovery centre is maintained at Coimbatore Semantic and MacAfee are the
antivirus software used

Page 76
3.3.10 SUPPLY CHAIN MANAGEMENT

SCM DEPARTMENT CHART
SUPPLY
CHAIN
MANAGEMEN
T
.
PRODUCT
DIVISION
INVENTOR
Y
LOGISTIC
PURCHAS
E
SUPPLY
MATERIA
L
STORE
TRANSPORTATI
ON
SUPPLY
DEVELOPME
NTTNT
SUPPLIER
FIXES
PRICES
OWN
GODOWN
RENTED
GO DOWN
SUPPLIER
SELECTIO
N
PO
DISTRIBUTION
FOLLOW
UP
TRANSPORTATIO
N
DEALER
CUSTOMER

Page 77
SCM can be viewed as a pipeline for the efficient and effective flow of the products,
material, services and information and financial from the suppliers through the
various intermediate organisation or companies to the customer. The extended
enterprise perspective of SCM represents a logical extension of the purchase and
business logistics concepts. It consists of 10 employees
CORPORATE SOCIAL RESPONSIBILITY
They believe in the amalgamation of corporate management, sustainable development
and global responsibility in working toward a better society and thereby a better
world. They are committed to greening our environment, supporting the less fortunate
and nurturing the downtrodden.
ROTARY-BINANI ZINC CSR AWARD

V Guard Industries was awarded the ROTARY-BINANI ZINC CSR AWARD (Private
Sector) by the Rotary Club of Cochin Metropolis, in association with NIPM Kerala
Chapter and ICAI, Ernakulum Branch for Best Corporate Social Responsibility
Initiative by a company in the state of Kerala

Page 78
The Thomas Chittilappilly Trust

The Thomas Chittilappilly Trust was founded by Kochouseph Chittilappilly, in
memory of his late father, C.O. Thomas. It is an extension of the philanthropic and
responsible values espoused at V-Guard. It is dedicated to extending its reach to areas
of health, education and care. The trust provides health insurance cover for 1314
families from financially backward classes, 922 families at Tholur Panchayat, Kerala
and 105 families in Ramanagaram Taluk in Bangalore, Karnataka. It also conducts free
health camps at villages and backward areas where the reach of proper health cares is
absent. It sponsors the education of 1587 school children from economically
backward sections in Thrissurand Ernakulum Districts in Kerala and Ramanagaram
Taluk, Bangalore. The trust has also made substantial contributions to NGOs working
for various social welfare causes like Udhavumkarangal and the SOS village. It has
also donated generously to many national level causes and relief funds like the Prime
Minister's Relief Fund, Kargil war victims, relief for the earthquake victims of Latur
and Gujarat, victims of the Orissa cyclone and the Tsunami Relief Fund of the Prime
Minister as well as the Chief Minister.

Page 79
SHANTIMANDIRAM
An old age home for women, providing shelter and care for those who are unable to
care of themselves inParappur Village, Trissur, Kerala. It is managed by the Sisters of
CMC Nirmala Province in whose able hands the inmates receive love and care
irrespective of caste and community. The facility accommodates 60inmates at a time
and is recognised by the Board of Control for Orphanages and other Charitable
Homes,Kerala.True to its name, all facilities are provided free of cost and it is a haven
of peace and tranquillity where the inmates spend the evening of their lives in dignity
and comfort. Shanthimandiram celebrated its first anniversary on 29th May 2010
along with the Inmates. The function started with the blessings of Fr. Franko
Kavalakkatt, Vicar, and Parappur Forona Church. Various cultural programmes have
been performed by the inmates of Shanthimandiram. The function got enriched with
the Folk dance by Managing Trustee and family. The sisters of Shanthimandiram also
involved with the cultural programmes.
Stabilizer SHG activity

Since its inception V-Guard has been providing a mutually beneficial income
generating option to women.
Women who have grouped themselves to form SHGs
(Self Help Groups) are distributed assembly kits for voltage stabilizers. An efficient
distribution and collection system networks the women with the company and has
been a resounding success for decades. It provides a stable income for their
households and in turn emancipation from poverty.

Page 80
CHAPTER 4
Swot analysis
Vision & mission

Page 81
4.1 SWOT ANALAYSIS

While conducting strategic planning for any of the company it is useful to complete an analysis that
takes into account not only your own business but also your competitors business and the current
business well. The following description will highlight the strength, weakness,
opportunity and threats of the V Guard Industries Ltd.
SWOT analysis of the consumer durable Industry.
STRENGTH
Sufficient human resource power

Competitive price of products is a most powerful weapon of the company
Using the highly qualitative raw materials
Skilled and highly experienced departmental heads
Presence of established distribution network in both urban and rural areas
Presence of well known brands
WEAKNESS
The employees and workers are not satisfied in their work, salaries and
working nature
Demand is seasonal and is high during festive season
Demand of some of the products is dependent on good monsoons
Poor government spending on infrastructure
Low purchasing power of consumers
OPPORTUNITIES
Un exploited rural market
Rapid Urbanization
Increase in Income levels i.e. increase in purchasing power of consumer
Easy availability of finance
THREAT
Presence of established distribution network in both urban and rural areas.
Presence of well known brands.
In recent years organized sector has increased its share in the market wise than
the unorganized sector

Page 82
CHAPTER 5
Findings
Conclusions
Suggestions

Page 83
4.2 VISION AND MISSION

VISION
To offer a range of products at affordable prices, which add to comfort of life
through saving in manual labour, time and energy or for entertainment
To make our products meet international quality standards and provide trouble
free performance.
To adopt designs, which support timely and efficient post sale service.
To continuously innovate and add value to our products, if needed with
technical collaboration.
To continuously assess and improve customer care.
MISSION
LET US ENDEAVOUR TO MAKE
V-GUARD
A TRUSTED HOUSEHOLD NAME

Page 84
5.1 FINDINGS
1) One of the fast growing companies. It has a good technical support from their
employees. They are all well qualified personnel and also they are well trained
personnel.
2) The company having highly equipped modern manufacturing plant
3) Continuous efforts are made by the R & D department for reducing the
manufacturing costs.
4) As a result of intensive R & D, the size of the products was reduced
5)
6)
7)
8)
conveniently.
Technology, which aids production, was imported in the year 2007 and 2009.
Technology imported in 2007 was not fully absorbed.
39 % of the shares are held by the promoters of the company.
Improper coordination among the superiors and subordinates during
certain situation

Page 85
5.2 CONCLUSIONS
The study has helped in getting an insight in the function of the departments in an
organization practically. The details obtained from the company for organization
study are very useful for a professional career and decision making and the study was
a great experience to know all about the working of an organization.
V- Guard Industries Ltd Policy is to service continously for improvement of their
products, service and also to give quality products to their customers. They have
highly qualified and talented departmental heads that is specialized is advanced field
of mechanical design, system engineering &production technology. Company has
established good network all over India and abroad. Employees want more control of
their careers and rewards based on performance. They are also concerned about
opportunities for growth. Employees satisfaction is a measure of how happy workers
are with their job and working environment. Keeping morale high among workers can
be of tremendous benefit to any company, as happy workers will be more likely to
produce more, take fewer days off, and stay loyal to the company. There are many
factors in improving or maintaining high employee satisfaction, which wise
employers would do well to implement.

Page 86
5.3 SUGGESTIONS & RECOMMENDATION

Based on my observation in the organisation during my stint I would like to
suggest /recommend that:
1)
The Company could incorporate the six sigma concept and other related
quality concepts.
2) Build strong and effective relationship between workers and management
3) Solve the employees problems rapidly.
4) The Company should take more promotional activities by advertising
aggressively through TV, Internet and other forms of media.
5) A new and improved product, which suits the needs of the consumers to the
best, should be developed.
6) R&D should concentrate more on reducing the cost of production without
affecting the quality of the product.
7) The company should increase its foreign earnings.
8) The rural markets have not been covered yet. The company should take necessary steps for
the same.
9) The company should take necessary steps to control the effect of continuous
price fluctuation of raw materials.

Page 87
BIBLIOGRAPHY
Books
1) T.N Chabra, 2005, HRM, 5th Edition Gagan kaput for Dhabaptrai&Co.
2) Kotler Philip, 2006, Marketing management, Millennium edition, New Delhi:
Prentice-Hall of India Pvt Ltd.
3) Dr.V Radha, P.t Oommen, NS, Nair, Marketing Management, Revised edition
Websites
1) V Guard Annual Report 2010-2011, viewed on 04/08/2012.
http://www.v-Guard.in/pdfs/annual Report_v-Guard-2010-2012
2) V Guard Annual report 2011-2012, viewed on 04/082012
http://www.v-Guard.in/pdfs/annual Report_v-Guard-2011-2012
3) IPO status details, viewed on 05/08/2012
WWW.Chittogarh/IPO/IPO-details.aspa=165
4) V- Guard prospectus, viewed on 04/08/2012
http://www.sebi.gov.in/dp/vguard.pdf
5) Stories of V- Guard, viewed on 08/08/2012
www.hindu.com/2007/11/27/stories/2/27563700
6) V- Guard information, viewed on 10/08/2012
www.telefolio.com/sample.aspxRn=86
7) Kochouseph Chittilappilly Profile Biography viewed 10/082012
www.spiderkerala.net/resources/8157-kochouseph Chittilappilly-profile
biography.aspx
Other sources
Published sources of company

Page 88

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ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

V- GUARD INDUSTRIES PVT.LTD

PADMASHREE INSTITUTE OF MANAGEMENT

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

I, hereby declare that this project report entitled Organisational Study

Management Studies , Bangalore.

Reg No: 11YYCMA001

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

deep sense of thanks and gratitude to our Director

Dr.K.Y.Reddy, and other faculty members of MBA department, Padmashree Institute

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

2.1 INDUSTRIAL PROFILE

3.1 ORGANISATIONAL STRUCTURE

4.1 SWOT ANALYSIS

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

LIST OF FIGURES AND DIAGRAMS

Mc Kinseys 7s frame work

Customer service department Structure

Electronic& New product department structure

Electro mechanical department structure

Finance Department structure

Human resource management structure

Marketing management structure

Presence of v- Guard In India

Mechanical & Electrical department

Supply chain management department

Rotary- BinaniZinc CSR Award

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

1.2 OBJECTIVES OF THE STUDY

1.3 KEY INDUSTRY REGULATIONS AND POLICIES

The Factories Act, 1948

The Contract (Regulation and Abolition) Act, 1970

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

The Environment (Protection) Act, 1986

The Central Excise Act, 1944

The Employees Provident Fund Act, 1952

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The Employees State Insurance Act, 1948

The Payment of Gratuity Act, 1972

Workmens Compensation Act, 1923

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1.4 SCOPE OF THE STUDY

1.6 RESEARCH METHODOLOGY

Padmashree Institute Of Management Studies

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Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

Padmashree Institute Of Management Studies

ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

2.1 INDUSTRIAL PROFILE

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ORGANAZATIONAL STUDY AT V GUARD INDUSTRIES Pvt Ltd

Padmashree Institute Of Management Studies