SUMMER TRAINING REPORT ON MARKETING RESEARCH PROCESS (REPLACEMENT MARKET) IN CLUTCH AUTO LTD.

Submitted to M.D. University Rohtak in partial fulfillment of the requirement for the award of degree of Bachelor Of Buisness Administration(Computer Aided Management)

(Session: 2010-11)

Submitted by: Name: FAIZAN AHMAD Class : BBA(cam) 5th semester Enrollment No : 08 DAVM 4611

DAV INSTITUTE OF MANAGEMENT NH-3, NIT, FARIDABAD

ACKNOWLEDGEMENT

This project report has been possible through the direct and indirect Cooperation and in valuable assistance of various officers, bears the Imprint of their efforts for my work. I extend my grateful thanks to Mr. Vijay Krishan Mehta (G.M. Clutch Auto. Ltd) and Mr.Anuj Mehta ( Director ), for letting me work under their extremely talented staff & giving me a chance to bring out best in myself for the benefit of the Industry. I wish to express my sincere thanks and appreciation to all those under whom I took my training and interacted . In Faridabad (Managerial Body And Staff) :

Mr.Parmod Kumar (Marketing Replacement) Mr.S.C.Bhardwaj ( Marketing OEM) Mr.Vikas Singhla ( Marketing Exports) Mr.P.K. Wig ( Head Personnel)

Mr.Promod Kumar (G.M. Marketing) and Mr.Griraj Sharma ( Asstt. Marketing Manager) their thoughts and invaluable guidance helped me in broadening my understanding and knowledge of working in an organization. I also thank to the staff member of Clutch Auto Ltd., Faridabad in Marketing department for their help and support & allowing me to acquaint myself with the overall congenial atmosphere, which Exists in the organization. Finally, I give my thanks to all the faculty members of D.A.V.Institute Of Management, Faridabad who helped and guided me in making of my training Report.

Faizan Ahmad BCAM 5th Sem

DECLARATION

I FAIZAN AHMAD hereby declare that the Final report entitled MARKETING RESEARCH PROCESS using a research that is compiled and submitted by me as my original work. The findings in the report are based on the data collected by me while preparing this report. I have not copied the data from any previous report. However, my Project Guide helped me at various points while preparing this report.

Signature of the candidate

PREFACE

Books are the treasure of knowledge and a theoretical base is pivotal for understanding the realities of practical field. But at the same time, practical knowledge is critical for having an insight into the implementation of theory in corporate world. With the privilege of an opportunity provided to us by CLUTCH AUTO LIMITED, for the fulfillment of our purpose bridging the gap between theory and practical. We under took four weeks summer training at MARKETING department of CLUTCH AUTO LIMITED. The report is a product of a project undertaken from 16th June 2010 to 16th July 2010 in MARKETING department of CLUTCH AUTO LIMITED. The main objective for preparing this project report is to understand the working of REPLACEMENT MARKETING in company and .The analysis of this project enables us to understand how CLUTCH AUTO LIMITED imorove his product quality.

TABLE OF CONTENTS

S.NO

CONTENTS

P.NO

1.

INTRODUCTION

1-7

2.

LITERATURE REVIEW

8 - 13

3.

COMPANY PROFILE

14 - 62

4.

DATA ANALYSIS & DATA INTERPRETATION

63 - 80

5.

RECOMMENDATION & SUGGSTIONS

81 - 82

6.

BIBLIOGRAPHY

96

CHAPTER 1.
INTRODUCTION

COMPANY : Clutch Auto was founded way back in 1971 and now it is Indias largest clutch manufacturer & exporter. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand. The company is Indias largest clutch manufacturer & exporter has held 3 Decades of undisputed Leadership. The company is also Indias largest exporter of clutches and exports to 40 countries, 85% to Americas. The company is having largest aftermarket distribution network in India and has state-of-the-art testing facility for Clutches. The company is having Govt. of India recognized Research &development facility. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and StateTransport Undertakings, among others. Clutch is a technology intensive business dominated by 6 players in the world, all operating either as joint ventures or as technology partners or license arrangements. CAL is the only standalone clutch company in the world, which is testimony to its technology capability. The company has developed, upgraded and upsized Ceramic and Cushioned Organic Clutches with Retrofittability on old models of the popular trucks and buses, carving a new market segment with a long term aftermarket potential besides fitment on current ongoing production. Peculiarities of Indian operating conditions both in case of passenger carriers and commercial vehicles and driving habits have been taken into consideration and performance demonstrated after simulation and evaluation of modified Designs based on the valuable field data. The Cool Clutch developed for the US market along with Wear Indication capability the Whisper series and Ez N Lite Twin Ceramic Self-Aligning clutch for heavy applications have been offered to the Indian customers. The company has ventured into the US truck market through the aftermarket route making it the only offshore company to be able to do so. It plans to be a niche player in

the low volume, high value added heavy-duty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units pa) as the demand for new trucks. CAL invested in technology, research and filed for patents and trademarks for a number of products that it developed. Today, the company is the only independent component company from India with an independent patents and trademarks portfolio. It has built many innovative products like the Cool Clutch, Whisper and EZ N Lite offering interchangeability unit-to-unit, component-to component with the same serviceability norms and tools. The companys clientele includes Tata Motors, Ashok, Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and state transport undertakings, among others.

OBJECTIVES OF THE STUDY :

Primary objective of the study is to get some practical knowledge and training in a reputed clutch plate manufacturing industry.

a) To find out the market share of the company in a particular field.

b) To identify the problems of the consumer and customer.

c) To analyze the perception of customers about CLUTCH AUTO Ltd.

d) Conclusion and suggestion.

INTRODUCTION

Marketing Research :

According to American Marketing Association : Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objectiveprocess as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. Before we proceed further, it is essential to clarify the relationship and difference between Marketing Research and Marketing Information System (MIS).Whatever information are generated by Marketing Research from internal sources, external sources, marketing intelligence agencies-consist the part of MIS. MIS is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis. 1. While Marketing Research is done with a specific purpose in mind with information being generated when it is conducted, MIS information is generated continuously.

2. MIS is continuous entity while Marketing Research is a ad-hoc system. 3. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS information is more rigid and structured. Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans.Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate.Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made MARKETING RESEARCH PROCESS IN CLUTCH AUTO Ltd :

1) Define the problem and research objectives.

4) Analyze the information

2) Develop the research plan.

5) Present the findings

3) Collect the information .

6) Make the decision

1). Define the problem and research objectives -

The nature of the problem or opportunity should be communicated and defined.This is the first step in finding solution.

2). Develop the research plan -

Designing a research plan calls for decision for the data source ,research approaches the research instruments , sampling plan and contact method.

a) Data Source (Primary Data) :

The normal procedure is to interview some people individually or in groups to get a sense of how people feel about topic in the question.

b) Research Approach (Survey) : A company undertakes surveys to learn about peoples knowledge,benefits and preferences and to measure these magnitudes in the general population.

3). Research Instruments (Questionnaire) -

In the preparing a questionnaire the research carefully chooses the questions and their form ,wording and sequence . The form of questions asked can influence the response.

4). Sampling Planes -

I. Dealers of Clutch Auto Ltd. (50 dealers)

II.

Spare parts shops. (100 spare shops)

III. Sampling size (How many people should be surveyed ?)

IV. Sampling procedure. (how should be the responded choosen?)

5) Conduct Method -

I. Personal Interviewing :

Personal interviewing is the most versatile method .The interviewer can ask more questions and record additional observation about the respondent ,such as dress and body.

II. Collect Information :

Gathering Information by interviewer on customer site by two people.

III. Analyze The Information :

The second last step in the marketing research process is to extract finding from the collected data.

IV. Present The Finding :

As the last step ,the researcher should present the finding that are relevant to the major marketing decisions facing management.

V. Make The Decision :

Finally we make the decision according to the all of the above points.

LIMITATIONS : The survey and research has been done in Delhi and Faridabad. Therefore the results showing the market position of Delhi and Faridabad area only but due to small sample size and short time Duration, results cannot be consider as representative of whole of the population. Convenient sampling was used as the mode of conducting the research. Retailers may not have been true in answering various questions and may be baised to certain other questions. Some retailers however were not willing to share their views and did not give any information. Many respondents did not give a proper thought before filling up the questions, and some even ticked things,which were not applicable. Respondents were reluctant to answer some questions,as they took them as personal, therefore increasing the possibility of error.

CHAPTER 2.
LITERATURE REVIEW

INTRODUCTION

Marketing Research :

According to American Marketing Association : Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services. Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objectiveprocess as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. Before we proceed further, it is essential to clarify the relationship and difference between Marketing Research and Marketing Information System (MIS).Whatever information are generated by Marketing Research from internal sources, external sources, marketing intelligence agencies-consist the part of MIS. MIS is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis.

1. While Marketing Research is done with a specific purpose in mind with information being generated when it is conducted, MIS information is generated continuously. 2. MIS is continuous entity while Marketing Research is a ad-hoc system. 3. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS information is more rigid and structured. Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans.Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate.Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made SIGNIFICANCE OF MARKETING RESEARCH

Market research surveys are carried out to collect crucial information about the market trends, consumer behavior, competitors and budding areas of growth. This research can be carried out through various means such as surveys, interviews etc. Some companies undertake the primary research method whereas the others go for the secondary research method.

To carry out the research in a cost effective way, companies are increasingly adopting Internet-based market survey and market research report tools. This will help them to not only cut the cost but also to reach a larger segment of people. The added benefit will be that larger audience from different regions and with different perceptions will give a clear view of the market and help the company in

designing its strategies accordingly.

The companies that undertake market research often complaint that it is difficult to gather information unless one is willing to pay. Though market research is expensive, yet it is one of the finest sources through which information about the market can be gleaned.

In primary research, the surveyor has to go from door-to-door and person-toperson to collect information whereas in secondary research, information already exists in one form or the other. Secondary research is cheaper as vital information can be collected from the Internet about consumer behavior and the market. After data has been collected from the net, all that the analyst has to do is study the collected information. The only disadvantage with secondary research is the data collected from the net is not always authentic. It may prove out to be wrong for a certain type of business. This is not the case with primary research as the information collected is first hand information.

Market research surveys can fully amalgamate and update the existing market research and other business systems. This will benefit the company, as it will be enabled to conduct better surveys and keep the market research data up to date.

Market research reports provide an insight into the difference in customer attitudes in different countries and regions and are supplemented with graphs, figures, and tables for better comprehension of the data.

FLOW CHART OF MARKETING RESEARCH PROCESS:

PROBLEM DEFINITION

DEVELOPMENT OF APPROACH

DESIGN FORMULATION

DATA COLLECTION

DATA ANALYSIS

REPORT PREPARATION

MARKETING RESEARCH PROCESS :

step 1: Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. 'Step 3: Research Design Formulation' A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study.

More formally, formulating the research design involves the following steps 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors. Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand,

multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously.

Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.

CHAPTER 3.
COMPANY PROFILE

COMPANY PROFILE :

Founded in 1971 Indias largest clutch manufacturer & Exporter 3 Decades of undisputed Leadership Our Customers

Indias largest exporter of clutches, exports to 40 countries, 85% to Americas Largest aftermarket distribution network in India. State-of-the-art testing facility for Clutches Govt. of India recognized R & D Recipient of prestigious National Awards

BOARD OF DIRECTORS

Chairman & Managing Director : Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non Executive Director Non-Executive Director : : : : : :

Sh. Vijay Krishan Mehta Sh. Anuj Mehta Sh. K.K. Taneja Sh. Avinash P. Gandhi Sh. Chandra Shekhar Aggarwal. Sh. Satish Sekhri Smt. Pooja Kapur

KEY

EXECUTIVES

S.No

NAME

DESIGNATION

1.

Pritam Paul

Company secretary

2.

K. K. Taneja

Director

3.

C.S. Aggarwal

Director

4.

Pooja Kapoor

Director

5.

Anju Mehta

Exec.Director

6.

A.P.Ghandhi

Add.Director

7.

Satish Sekhri

Add.Director

Business Areas :

Clutch Auto is catering to three sectors viz. OEM, Replacement Market and Exports. Even under depressed business environment, the Company was able to optimally use its product mix. The Company was able to make good the shortfall in OEM sales by introducing 77 new products by fiscal year end in the Aftermarket and Exports segment. Clutch Auto has made long term commitments to OEMs' in Commercial Vehicle & Tractor segments including a CoManufacturing Agreement with a MNC Clutch Manufacturer.

BUSINESS AREAS

OEM

REPLACEMENT

EXPORTS

Company History :

Clutch Auto was founded way back in 1971 and now it is Indias largest clutch manufacturer & exporter. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand. The company is Indias largest clutch manufacturer & exporter has held 3 Decades of undi-sputed Leadership. The company is also Indias largest exporter of clutches and exports to 40 countries, 85% to Americas.The company is having largest aftermarket distribution network in India and has state-of-the-art testing facility for Clutches. The company is having Govt. of India recognized Research &development facility. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and tractor segment in India. It also caters to the passenger vehicle and replacement demand and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and StateTransport Undertakings, among others. Clutch is a technology intensive business dominated by 6 players in the world, all operating either as joint ventures or as technology partners or license arrangements. CAL is the only standalone clutch company in the world, which is testimony to its technology capability.The company has developed, upgraded and upsized Ceramic and Cushioned Organic Clutches with Retrofittability on old models of the popular trucks and buses, carving a new market segment with a long term aftermarket potential besides fitment on current ongoing production.Peculiarities of Indian operating conditions both in case of passenger carriers and commercial vehicles and driving habits have been taken into consideration and performance demonstrated after simulation and evaluation of modified Designs based on the valuable field data. The Cool Clutch developed for the US market alongwith Wear Indication capability the Whisper series and Ez N Lite Twin Ceramic Self-Aligning clutch for heavy applications have been offered to the Indiancustomers.The company has ventured into the US truck market through the aftermarket route making it the only offshore company to be

able to do so. It plans to be a niche player in the low volume, high value added heavyduty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units pa) asthe demand for new trucks. CAL invested in technology, research and filed for patents and trademarks for a number of products that it developed. Today, the company is the only independent component company from India with an independent patents and trademarks portfolio. It has built many innovative products like the Cool Clutch, Whisper and EZ N Lite offering interchangeability unit-to-unit, component-to component with the same serviceability norms and tools. The companys clientele includes Tata Motors, Ashok, Leyland, Maruti Udyog, TAFE, Toyota, BEML, Escort Tractors and state transport undertakings, among others.

Awards/ Achievements:-

In 1996-ISO 9002 Certification by KPMG Peat Marwick LLp Certification In 2000 -QS 9000 Certification by KPMG Peat Marwick LLp In 2003 -QS-9000:1998 Certification by TUV Anlagentechnik Gmbh In 2005 - TS 16949:2002 Certification by TUV Anlagentechnik Gmbh. R& D Certification by - Ministry of science & Technology Department of Science & research In 2004 - Export House Certification by - Ministry of Commerce & Industry, Office of Joint Director General of foreign Trade.

Fig 1.1: Achievements

COMPANY PRODUCTS

Product Name Clutch Cover Assemblies 2009 03

Sales Year Month Quantity

Sales

% of

Value(Rs.Million) STO

805188.00

1057.93

48.11

Clutch Plates/Discs 2009 03 1074459.00 853.31 38.80

Others

2009 03

0.00

219.95

10.00

Metallic Clutch Plates/Discs 2009 03 21793.00 37.23 1.69

Clutch Repairs Kits 2009 03 78579.00 30.80 1.40

Ceramic Metallic Pad 2009 03 0.00 0.00 0.00

Fig 1.2 :

Products

Clients
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Tata Motors Ltd. (Daimler Benz) Ashok Leyland Ltd. (Iveco) Eicher Motors (Mitsubishi) Bajaj Tempo Ltd. JCB Ltd. Mahindra & Mahindra (Automotive Division) Bajaj Auto Ltd. Bajaj Tempo Ltd. Scooters India Ltd. Maruti Suzuki, and Hindustan Motors Mahindra Gujarat Tractors Ltd. Tractors & Farm Equipments Ltd. (TAFE) Case New Holland Tractors Ltd. Eicher Tractors Ltd. Escorts Tractors Farmtrac Tractors Punjab Tractors Ltd. International Tractors Ltd. (Renault) HMT Tractors (Zetor) John Deere, and Indo Farm Bharat Earth Movers Ltd. (BEML) Komatsu

Competitors :

Company

Sales

Current Change (%)

P/E

Market

52-Week

(Rs.Million) Price

Ratio Cap.(Rs.Million) High/Low

Bosch

48095.28 5736.70

-0.68

24.38

181367.90 5914/3381

Exide Inds

42134.70

133.90

-0.48

19.72

114367.50

142/73

Motherson Sumi Sys

12949.43

166.45

0.39

36.01

64254.76

167/72

Amtek Auto

10524.57

191.55

-1.77

23.32

39474.44

239/107

Tube Investments

23456.40

129.25

-1.52

29.88

24267.38

133/51

Wabco - TVS

4259.46

859.55

-2.58

21.30

16735.10

983/234

Amara Raja

14634.02

199.10

2.79

9.90

16543.19

199/107

Bosch Chassis

5311.69

595.95

0.00

16.19

12391.59

597/593

Banco Products

2879.14

128.90

-1.53

11.91

9361.79

135/29

Amtek India

7994.47

63.70

-0.86

11.67

8308.25

78/35

Federal-Mogul Goetze

7599.70

139.95

-1.41

14.93

7896.98

182/47

Auto.Axle

2672.39

495.80

0.53

18.39

7453.23

519/130

SundaramClayton

4923.70

179.30

-2.45

56.69

6972.48

194/60

Jamna Auto Inds.

5576.06

128.10

-0.58

29.66

4711.66

140/29

Sona Koyo Steerg Sys

8852.10

22.80

-3.18

21.62

4680.37

24/10

Gabriel India

6969.94

59.40

-3.10

18.31

4402.69

68/13

ZF Steering

2161.20

414.50

-3.48

10.90

3896.53

458/127

Shanthi Gears

1213.87

45.30

-0.88

23.07

3734.41

56/32

Rico Auto Inds

7279.10

26.95

-2.36

58.59

3556.40

33/17

Wheels India

12413.76

335.00

0.30

25.45

3296.39

370/151

Minda Industries

4456.95

293.00

-1.61

13.68

3128.41

362/143

Subros

6944.16

50.55

2.02

10.72

2972.44

53/25

Pricol

7793.61

33.15

1.22

11.57

2947.50

33/10

Lumax Industries

6341.54

312.15

0.27

49.10

2909.95

309/100

SteStrWhe

3173.14

212.75

0.45

19.86

2883.90

212/59

Denso India

5306.46

95.75

-0.26

14.17

2676.45

109/54

Munjal Showa

8291.25

64.75

-2.26

10.77

2649.67

70/43

Halonix

3840.63

91.30

0.55

0.00

2544.15

109/61

Hind.Compo

773.08

455.00

1.35

0.52

2469.23

480/151

Suprajit Engg

1634.65

19.15

-2.05

10.76

2346.39

20/5

Setco Automotive

1633.44

255.20

2.20

12.37

2202.82

271/115

Fiem Inds

2192.89

174.75

-0.23

19.51

2095.18

182/53

India Nipon Electric

1279.20

256.45

0.45

10.35

2062.59

270/118

Ucal Fuel Sys.

3002.57

86.55

-3.35

30.81

1980.28

110/42

Autoline Inds

2340.73

159.35

0.95

14.26

1926.55

165/68

Fairfield Atlas

1126.56

68.65

0.07

12.42

1874.19

78/25

Automobile Corp

2333.59

281.95

-3.16

0.00

1869.66

297/170

Hi-Tech Gears

2947.76

194.85

-1.57

10.41

1857.56

205/52

Tudor India

1265.90

69.25

0.00

146.67

1704.71

69/69

Jay Bharat Maruti

6917.26

77.80

-0.83

7.32

1698.44

86/39

LumAutTec

2270.27

134.55

2.16

22.61

1531.87

143/26

Rane Engine Valve

2360.31

290.15

-1.64

31.70

1519.54

332/76

Rane Brake Linings

2363.00

190.15

0.00

13.60

1371.93

194/168

Rane Madras

4196.56

132.45

-1.71

8.23

1369.62

140/38

Pren.Pipe

1274.51

99.00

1.54

10.05

1365.00

111/45

Shivam Autotech

1428.13

130.25

0.66

11.18

1294.00

138/53

REIL Eleetricals

191.41

339.00

4.21

66.01

1279.73

339/210

Munjal Auto Inds

2351.13

126.60

-0.43

7.98

1271.50

132/54

Ceekay Daikin

1038.82

194.55

-4.98

0.00

1229.87

224/46

Omax Autos

8120.76

56.70

-1.31

8.59

1228.75

71/30

Clutch Auto

1974.49

71.80

-1.24

14.45

1212.77

90/27

IST

190.43

202.00

2.02

65.35

1154.75

249/96

Perfect Circle India

736.88

32.55

0.00

0.00

1085.11

0/0

Igarashi Motors

2578.13

73.85

-4.95

39.52

1078.04

79/19

Enkei Castalloy

3006.96

92.80

-4.33

7.96

1067.00

150/48

Auto.Stamp

4143.70

102.10

-1.35

14.59

1055.55

110/38

JMT Auto

1953.40

63.00

-5.69

27.23

961.60

78/31

IP Rings

678.55

135.35

1.31

16.91

940.83

135/37

Sund.Brake

1993.32

225.90

-3.38

16.51

919.90

285/137

Talbros Auto Compo

2291.43

73.45

-0.74

15.06

913.58

79/33

Rane Brake Lining

1810.23

114.95

0.88

9.04

901.91

129/60

Harita Seating

1962.52

115.00

0.44

0.00

889.56

117/41

Sys

Samkrg Pistons

991.29

88.00

3.83

11.71

832.29

86/44

Triton Valves

913.26

804.55

-1.69

16.85

810.24 1100/283

ANG Industries

1154.34

65.10

5.00

10.72

777.48

60/34

JBM Auto

2163.64

67.50

-1.82

8.51

701.17

82/31

Jay Ushin

2508.83

154.15

0.42

8.98

593.20

170/58

Bharat Seats

3360.63

18.00

0.00

13.64

565.20

27/10

Bharat Gears

2462.40

71.40

0.28

9.06

556.63

75/25

Hella India

139.75

166.00

-1.01

0.00

531.84

202/95

Machino Plastics

1234.44

82.00

-0.36

7.08

505.06

86/40

Jai Parabolic Sprg

873.21

29.05

0.00

0.00

501.52

30/27

Menon Bearings

438.88

52.40

-0.66

10.69

492.69

67/28

Menon Pistons

1074.89

93.20

2.47

7.13

463.85

98/55

PAE

2407.45

44.95

-4.26

9.40

446.95

57/21

Mah.Compo

459.97

90.35

-2.90

15.86

408.33

99/54

KAR Mobiles

833.90

156.40

-2.43

15.13

359.07

183/108

Autolite India

735.93

34.90

-2.38

61.47

338.06

45/21

LumAutSys Bosch Rexroth (I)

1000.45 3575.84

41.65 54.25

-1.30 0.00

0.00 1.50

312.45 287.50

52/25 0/0

GS Auto Intl.

926.52

32.70

-1.95

5.69

266.80

59/19

Hind Hardy Spicer

333.78

143.15

2.54

56.41

209.18

138/41

Vybra Automet

547.72

27.05

-2.52

0.00

197.83

31/10

KEW Inds.

532.19

12.12

-1.94

8.33

185.82

19/10

Raunaq Auto Comp

577.89

22.40

0.00

7.11

177.67

28/11

Remsons Inds

690.33

28.85

-0.52

9.87

164.83

32/15

Trident Tools

0.16

22.60

0.44

25.14

151.88

79/16

Delta Magnets

74.53

28.15

3.87

89.61

131.73

34/12

FrontSpring

269.55

33.85

3.36

4.27

128.99

43/11

Guj.AutGe

144.35

341.00

3.27

8.74

115.57

386/167

Spectra Industries

184.88

14.75

1.72

17.79

102.64

19/6

Gajra Bevel Gears

230.61

6.91

19.97

3.32

54.15

9/4

Coventry Spring

127.41

8.25

0.00

0.00

43.31

0/0

Coventry CoilOMatic

323.91

8.82

-3.08

19.91

41.02

11/6

GG Automotive Gears 43.79 4.90 0.00 12.82 38.79 0/0

Jagan Lamps

106.32

5.35

-1.11

44.41

37.30

9/3

Brakes Auto

239.10

9.03

-2.59

37.04

36.30

15/4

Mipco Seamless Rings

0.00

0.92

0.00

0.00

3.30

0/0

Fig 1.3 : Patents

Fig 1.4 : Trademark

TECHNOLOGY USED BY COMPANY:

Company is committed to deliver superior products across all segments. Under Capacity expansion and modernization plan with investment of US$ 15 Mio targeted to be implemented by December, 2010, the Company has ordered specialized machines from leading Global manufacturers. These machines include Engine based Clutch Dynamometer and other latest test machines, Virtual testing, Automatic riveting machines, latest NVH Systems, Torque test machines etc., which will not only sharpen the Technology edge of the Company but will also increase the productivity at large. New concept "Traceability Till Death" (TTD), have been implemented successfully. This unique process of Bar coding the Clutch with the Engines &Transmission has been widely accepted across vehicle manufacturers. Additional machines are being imported to support the 100% production system with this unique characteristic. This will kill the spurious products being available in the market. Development of Dual Sintered Buttons In association with Hindustan Aeronautics Ltd. (HAL), Clutch Auto has developed the technology for Dual Sintered Buttons used on commercial vehicles clutches known as HiLife & Extra Life Clutches, specialized CA City and universal Clutches for Domestic as well as Overseas applications. By use of the Dual Sintered Buttons, the Clutch life will increase by at-least 100%. Development of Cerametallic Buttons There are only two recognized sources of this type of buttons, one in Australia and the other one in USA. We have successfully done localization of these kind of button with active assistance of Hindustan Aeronautics Ld. (HAL) with technology edge i.e. double life - the Road Raider source with matching service life of clutches with much more competitive prices. This development activity is being extended to local manufacturers

under the DEG Project which will be a major step in terms of containing cost of clutches both for domestic and international truck manufacturers (US, Europe and other markets). Market penetration of 77 new items launched during 9th International Auto Expo, 2008 (New Delhi) have opened up new vistas/opportunities with an edge in such segments where the Company has not pursued business opportunities. The order book position in this segment have been increased by at-least 1.5 times.

FST CAPABILITIES Full Scale Test - As per JASO ( Measurement of Torque,Friction Face Temp, CALs Technology for Speed under Millennium specific inertia BALANCING MACHINE on flywheel ) Test Under specific Torque Stall Test Anti Chatter Test - As per JASO ( Under different Temp & Humidity) Comparative Testing of Facings with a special Flywheel R&DSimulation under specific conditions

CALs Technology for Millennium FULL SCALE TESTER

CALs Technology for Millennium DIAPHGRAGHM ASSLY TEST BENCH

CALs Technology for Millennium TORQUE / HYSTERESIS TEST BENCH

Fully integrated manufacturing infrastructure having vast production and Automatic Facing Riveting. testing facilities. Two million Clutch Discs and Half million Clutch Cover Assemblies per annum and Automated Heat Treatment increasing. Plant on New Delhi's periphery sprawling over 30,000sq. meters.

Machining of Forging

Castings

DISC DRAG CHECKING MACHINE ONLINE

TORQUE/HYSTERESIS TEST BENCH- ONLINE

TECHNICAL SPECIFICATIONS RANGE - 160-430 MM DIA THICKNESS UNDER LOAD OF DISC CONCEPT OF DRAG-PRACTICAL METHOD OF CHECKING DISTANCE UNDER WHICH DISC BECOME FREE SUBJECTIVE METHOD OBJECTIVE METHOD BY INTRODUCTION OF SMALL TORQUE & SPLINE SHAFT PRINTING AND DATA STORAGE FACILITY HISTOGRAM OF BATCH PARAMETERS AND Cp/CpK

TECHNICAL SPECIFICATIONS RANGE 160-430 MM DIA TORQUE AND HYSTERESIS MEASUREMENT TWIST UPTO 30 DEGREE BOTH DIRECTIONS CAPABLE OF CHECKING PREDAMP TORQUE

SIMULTANEOUSLY PLOTTING PRINTING & STORING FACILITIES

COVER ASSLY PARAMETER LOAD CHECKING RIG - ONLINE

TECHNICAL SPECIFICATIONS RANGE - 160 MM TO 310MM DIA CHECKING 27 PARAMETERS IN 24 SECONDS SETUP HEIGHT / FINGER RUN OUT BY CONTACT SENSOR PLOTTING AND PRINTING FACILITIES STORAGE FACILITIES FOR 10 YEARS BATCH WISE HISTOGRAM / CALCULATION OF CP/CPK PERCUSSION MARKING MISTAKE PROOF UNCLAMP AUTOMATICALLY IF JOB IS REJECTED OPERATOR HAS TO UNCLAMP MANUALLY. NON-

HEAT TREATMENT FACILITY

DUAL CHAMBER FURNANCE Two Zone Gas Carburizing Furnace Computerised PLC Controlled ( 54 Programmes ) Carbon Potential Control + 0.04 % Temperature Control + 4 dg. Cn.

STATE OF THE ART ROTARY FURNACE

SHOT PEENING MACHINE

Feature of 4 step forward and 3 step (variable depending on size of

backward

Conveyorised shot peening machine Shot velocity and conveyor speed adjustable Impingement of shots at 90resulting

Diaphragm Spring. no

Flame Curtain while opening of the door, so chances of Decarb. PSA Nitrogen Generator for protective Hearth speed control through PLC As quenched hardness consistency in 1

atmosphere.

uniformity of shot pattern. Auto shot replenishment provision Shot peening control Almen strips and Almen gauge.

HRC.

GLOBAL MARKET

INTERNATIONAL EXPERIENCE

Exports to > 40 countries around the Globe. 85%of total Global Sales to USA > 400 designs Pull Type Clutches More focus on heavy duty clutches Speedy customer service and product development. 100% compound growth in total Global Sales.

AFTER MARKET

Strengths

Strongest Brand Equity Widest Range Competitive Pricing 7 Warehouses After Sales Service 100 State/Town Distributors 400 Stockiest

3000 Retailers 35 Area Representatives Aggressive Sales Policy 50% growth since last 3 yrs.

VEHICLE APPLICATION

Categories

Range of Vehicle Applications

Passenger Cars

Maruti- Suzuki Premier- Fiat JCBL Motor Sipani HM

Datsun Honda Isuzu Mazda Mitsubishi Nissan Suzuki Toyota Audi Austin Bedford BMC British

AMC Chrysler Ford GM Daewoo Hyundai Lada Proton Skoda Buick Cadillac Dodge Jeep

Light Commercial Vehicles

Allwyn Nissan Bajaj Tempo Eicher Mahindra DCM- Toyota

Heavy Commercial Vehicles

Tata Ashok Leyland Swaraj

Tractors

Escorts Ford HMT Tafe Sonelica Mahindra Swaraj Greeves

Leyland DAF Fiat International Land Rover Mercedes Benz Peugeot Renault Scania Volkswagon Volvo

Komatsu Lipe M.A.N. Mercury Oldsmobile Plymouth Pontiac Spicer Studebaker Subaru Zetor

Utility Vehicles

Eicher Mahindra

INVESTMENT HIGHLIGHTS

(Q3 FY10)

For the quarter ended on December 31, 2009 (Standalone) the company has registered a 43.73 % (YOY) growth in the net sales and stood at Rs.577.95 mn from Rs.402.11 mn of the corresponding period of the previous year.The operating profit for the quarter stood at Rs.95.73 mn from Rs.49.74 mn, for the same quarter of last year. Operating profit margin surged to 16.56% from the corresponding previous quarter of 12.37%. PAT for the quarter ended December 2009 increased significantly by 52.26% to Rs. 23.28 millions from Rs. 15.29 millions. EPS for the quarter stood at Rs.1.42 per equity share of Rs.10.00.

Quarterly Results Standalone (Rs in mn)

As at Q3FY09 Q3FY10 %Change

Net Sales

402.11

577.95

43.73%

PAT

15.29

23.28

52.26%

600 500 400 300 200 100 0 2008 2009 Net Sales(mn) PAT (mn)

Margins (%) :

Operating Profit Margin (OPM%) Dec'08 20.00% 15.00% March'09 June'09 Dec'08 10.00% 5.00% 0.00% OPM(%) Dec'08 12.37% March'09 16.16% June'09 15.48% Quarters Sept'09 16.36% Dec'09 16.56% Sept'09 Dec'09 March'09 June'09 Sept'09 Dec'09

(%)

Net Profit Margin (NPM% )

Dec'08 4.50% 4.00% 3.50% 3.00% 3.80% 3.79% 3.24% 4.03% March'09 June'09 Sept'09 Dec'09

(%)

2.50% 2.00% 1.50% 1.00% 0.50% 0.00% NPM(%) Dec'08 3.80% March'09 2.15% June'09 3.79% Quarters Sept'09 3.24% Dec'09 4.03% 2.15%

Clutch Auto to acquire land in Rajasthan for Rs 150 mn :

The company board has approved the proposal to acquiring 50,000 sq mtrs land (industrial plot at Kahrani (Bhiwadi extn.) district Alwar, Rajasthan at a to cost of Rs 150 million.The management has taken this decision with a broader objective to shift the factory from its present site at Faridabad to Kahrani (Bhiwandi Extn.), Rajasthan at a much bigger space (almost double size) at low cost for its expansion. The site at Kahrani is close to the industrial corridor - Manesar industrial area, which has easy proximity and locational advantages.

Ventured into the US truck market :

The company has ventured into the US truck market through the aftermarket route making it the only offshore company to be able to do so. It plans to be a niche player in the low volume,high value added heavy-duty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units pa) asthe demand for new trucks.

CAL invested in technology& research :

CAL invested in technology, research and filed for patents and trademarks for a number of products that it developed. Today, the company is the only independent component company from India with an independent patents and trademarks portfolio. It has built many innovative products like the Cool Clutch, Whisper and EZ N Lite offering interchangeability unit-to-unit, component-to component with the same serviceability norms and tools.

12 months ended Profit&loss Account (Standalone) :

VALUE (Rs.in million) Description Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross Profit Depriciation Profit Before Tax Tax Profit After Tax Net Profit Equity captial Reserves Face Value Total No.of Shares EPS(Rs)

FY08A

FY09A

FY10E

FY11E

2168.76 0.80 2169.56 -1828.67 340.89 -113.39 227.50 -58.90 168.61 -14.07 154.54 154.54 163.15 1007.64 10.00 16.32 9.47

1961.20 1961.20 -1697.01 264.19 -133.06 131.13 -77.74 53.39 -3.80 49.59 49.59 163.15 1037.37 10.00 16.32 3.04

2353.44 2353.44 -1965.12 388.32 -146.23 -242.09 -141.15 100.94 -10.09 90.84 90.84 163.15 1128.21 10.00 16.32 5.57

2706.46 2706.46 -2273.42 433.03 -151.45 281.58 -162.32 119.26 -11.93 107.33 107.33 163.15 1235.55 10.00 16.32 6.58

Quarterly Ended Profit & Loss Account (Standalone):

VALUE (Rs.in million) Description Net Sales Other Income Total Income Expenditure Operating Profit Interest Gross Profit Depriciation Profit Before Tax Tax Profit After Tax Net Profit Equity captial Face Value Total No.of Shares EPS(Rs)

30-June-09 3m

30-Sept-09 3m

31-Dec-09 3m

31-March10E 3m 612.63 612.63 -511.54 101.08 -41.23 59.85 -35.16 24.69 -2.47 22.22 22.22 163.15 10.00 16.32 1.36

530.97 530.97 -448.79 82.18 -32.33 49.85 -27.00 22.85 -2.70 20.15 20.15 163.15 10.00 16.32 1.24

551.14 551.14 -460.95 90.19 -31.82 58.37 -39.70 18.67 -0.80 17.87 17.87 163.15 10.00 16.32 1.10

577.95 577.95 -482.22 95.73 -39.10 -56.63 -33.35 23.28 23.28 23.28 163.15 10.00 16.32 1.43

CHARTS : A). Net sales & PAT Chart :

Net Sales & PAT 3000 2500
Rs.mn.

2000 1500 1000 500 0 Net Sales PAT 2009A 1961.2 49.59 2010E 2353.44 90.84
Year

2011E 2706.46 107.33

B). EV/EBITDA(x) chart :

EV/EBITDA EV?EBITDA 6
Multiples

4 2 2009A 0 EV?EBITDA 2009A 0.99

2010E

2011E

2010E 4.2

2011E 4.33

Year

C). P/E(X) Chart :

P/E P/E 20 15
P/E(x)

14.67 12.42

10 5 0 P/E 5.26

2009A 5.26

2010E 14.67
Year

2011E 12.42

D). P/BV(x) Chart :

P/BV
1.2 1 0.8 0.6 0.4 0.2 0 1.03

Multiples

0.95

0.22 2009A 2010E

Year

2009A 2010E 2011E

2011E

Industry Overview :

Automotive Industry, a prominent segment of the national economy was adversely affected due toGlobal slowdown, however, continued to survive due to Govt, of India's committed expenditure onthe infrastructure sector of the economy. This is the first year of set back ever since the Automotive Mission Plan 2016 was announced by the Government of India with growth rate estimated at 6%, after achieving double digit growth in recent years. The year witnessed steady falling demand for medium and heavy commercial vehicles (MHCV), which was primarily due to overall slowdown in industrial production. The severe demand shortage since October, 2008 led the leading commercial vehicle manufacturers to cut down schedules drastically, followed by repeated lay-offs, resorting to repeated book closures, job-cuts etc. This was coupled with huge credit crunch and the working capital of large OEMs virtually exhausted, impacting on liquidity of the Tier I suppliers. Hardening of interest rates coupled with higher inflationary pressures and industrial slowdown affected the input costs and availability of essential raw materials very adversely resulting in both bottom and top lines in the Automotive Industry. In-spite of RBI and other Financial Institution's continued initiatives to enhance liquidity in the system, Bankers were shy to increase their exposure in the Automotive Sector, and as such could not virtually make any impact on the liquidity. The situation was further fuelled by the Transporters strike in early January, 2009 for a shorter haul. Transporters have deferred purchases despite stable freight rates with rising cost of ownership impacting their profitability amidst concerns over freight demand sustainability. In International arena, US Heavy-Duty truck sales hit their lowest level in 16 years during 2008, falling for the second straight year, even though they made a modest recovery after hitting bottom in May, 2008. Further, several North American truck and engine makers underwent significant change during 2008 as they prepare for the next round of federal emission regulations slated for 2010. The fall out of the US Big Three viz. GM, Ford & Chrysler made significant impact on the component manufacturers in India

As per SIAM Report, overall Industry performance in 200809 was as under

In domestic market, Passenger vehicle segment registered growth of 0.13% during 2008-09, the sale of overall commercial vehicles declined by (-) 21.69%. Medium and Heavy Commercial vehicles declined by (-) 33.16% and Light Commercial vehicles recorded de-growth at (-) 7.10%. In Exports market, 2008-09 saw automobile exports growth of 23.61% with all segments except Commercial vehicles, which was declined at (-) 27.67% during the year.

The Indian auto ancillary industry has come a long way since it had its small beginnings in the1940s. If the evolution of the industry is traced in India, it can be classified into three distinct phases namely: Period prior to the entry of Maruti Udhyog Ltd, Period after the entry of Maruti Udhyog Ltd and Period post Liberalization. The period prior to the entry of Maruti Udhyog Ltd was characterized by small number of auto majors like Hindustan Motors, Premier Automobiles, Telco, Bajaj, Mahindra and Mahindra, low technology and assured business for most of the autocomponent manufacturers.

The entry of Maruti in the 1980s marked the beginning of the second phase of the industry. The auto ancillary industry in the country really showed a spurt in growth during this period. This period witnessed the emergence of a new generation of auto ancillary manufacturers who were required to meet the stringent quality standards of Marutis Korean collaborator Suzuki of Japan. The good performance of Maruti resulted in an upswing for the domestic auto ancillary industry. It was during this period that auto components from India began to be exported.

The entry of foreign automobile manufacturers ranging from Mercedes Benz, Ford, and General Motors to Daewoo following the government liberalizing the foreign investment limits saw the beginning of the third phase of the evolution of the industry. The auto ancillary industry witnessed huge capacity expansions and modernization initiatives in the post liberalization period.

Technological collaborations and equity partnerships with world leaders in auto components 19 became a common affair. However, the tough competitive scenario saw a lot of consolidation in the industry and it still continues unabated. In 2008-09, automobile sales are expected to grow by around 12 per cent in value-terms, driven mainly by favourable demographic trends, anticipated growth recovery in commercial vehicles and robust export growth. Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-larges commercial vehicle manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, and Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd.,Honda Siel Cars India Ltd. have also entered the market and have catered to the customers needs to a large extent. Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales. There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are many new projects coming up in the automobile industry leading to the growth of the sector. The Government of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels. The leaders of the Indian automobile sector, such as Tate Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian markets. The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India

the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena.

The Future Growth Drivers :

1). India's huge geographic spreadMass Transport System.

2). Increasing Road Development.

3). Increasing disposable Income with the service sector.

4). Replacement of aging four wheelers

5). Graduating from two wheelers to four wheelers.

6).

Increasing dispensable income of rural agri sector.

7). Growing Concept of Second Vehicle in Urban Areas.

1 Year Comparative Graph :

Outlook and Conclusion :

At the current market price of the stock Rs81.70.00, the stock trades at a P/E of 14.67 x and12.42 x for FY10E and FY11E respectively.

The EPS of the stock is expected to be at Rs.5.57 and Rs.6.68 for the earnings of FY10E and FY11E respectively.

The top line and bottom line of the company are expected to growth a CAGR of 17.47% and 47.12% over FY09 to FY11E.

On the basis of EV/EBDITA, the stock trades at 4.20 x and 4.33 x for FY10E and FY11E respectively.

Price to Book Value of the stock is expected to be at 1.03 x for FY10E and 0.95 for FY11E.

The Indian automobile industry is on fast revival after tough period in later half of FY09.With confidence returning in economy, CV and Capital goods sales are witnessing upward trend after almost 2 years of slow down.

Indian ancillary industry itself has emerged as hub for global markets. There is fast expansion in Service network by all auto makers and vehicle owners are becoming more sensitive to quality of service, which can benefit branded components makers like CAL.

Company, by launch of identifiable genuine products across full range, was able to weed out spurious products which led to sharp rise in sales in replacement market from current year, leading to further rise in replacement market sales to over 50% soon.

A number of global automotive players are setting production capacities in India, which can benefit component makers.

The replacement market is the most important segment, accounting for 47% of the sales.CAL has vast marketing plan India network of 37 marketing offices in 20 major cities.

Latest trend indicates that in second half, the sales to OEMs as well as to replacement market is growing at a very fast pace. This will result in to much higher capacity utilizations and with faster growth in replacement market, plus margins will grow still better.

Growth in Auto Industry directly benefits the Ancillary industry. We recommend BUY in this particular scrip with a target price of Rs.100.00 for Medium to Long term investment.

SWOT ANALYSIS :

Strengths

> > > > > > > >

Sustained Brand leadership in a highly technology intensive industry. Low manufacturing cost compared to other leaders of the Industry across. Efficient supply flow thru' vertical integration. Fiercely innovative & focus on heeds of end customers. Strong planning & implementation skills. Versatile Clutch Dyno - testing facility (under implementation). Products are virtually in the verge of Double life. Outcome of the NMITLI project will create altogether a different set of products with high economic benefits.

> > > > >

MEOST (Multiple Environment Over Stressed Testing) facility. Preferred to remain low profile with biting capability. Customer Centric development with high care attitude. Improving credibility against MNC's. Steps taken during the last one year for increasing the Foundry capacity will supplement Company's efforts to tap new opportunities in the years to come.

>

Timely assistance from International Bankers is likely to help establish need based capacities and test capabilities to meet the Company's International multifarious opportunities.

>

Increase in market share of the leading Truck manufacturer in USA, with whom the Company has made long term supply contracts will enhance Company's business opportunity.

Weakness : -

>

Present Scale of operations (however, committed to increase capacity to double by December, 2010 in phased manner).

>

Limited Global reach due to lack of complementarity of the products across various continents.

> >

Single manufacturing facility, to be grown upto a full scale integrated facility. High dependence on Limited resource base.

Opportunities :-

> > > > > >

Agricultural Segment- Five decade monopoly. Heavy duty segment - There is no compatibility among dominant players. Technology dissemination. Cost effective solutions. Long obsolescence. Retrofittability on 20-30 years old vintage cars has extended service life even on old vehicles

Threat

> > > > > >

Infringements by local players in unorganized sector. General market environment. Penetration of Spurious products in Aftermarket segment. New Technologies. Consolidation by the Competitors in domestic arena. OEM's target to have total control on the Aftermarket can significantly impact company's Replacement Market operations.

>

Competition from Chinese low cost manufacturers can be a threat to Company's business in some segments.

CHAPTER 4.
DATA ANALYSIS & DATA INTERPRETATION

Ques : Are you satisfied with durability of the product ?

60 50 40 30 20 10 0 A B C D
Level Of Satisfaction

Percentage Of dealers

Interpretation :

In this chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 40% consumer are highly satisfied with durability Of product 60% are satisfied , 10 % are average satisfied and 5% are not satisfied.

Ques : Are you satisfied with foundation of the product ?

60 50 40 30 20 10 0 A
Interpretation :

Percentage Of Dealers

In this chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 32% consumer are highly satisfied with foundation Of product 60% are satisfied , 9 % are average satisfied and 5% are not satisfied.

Ques : Are you satisfied with the response of the company regarding enquiry ?

70 60 50 40 30 20 10 0 A
Interpretation :

Percentage Of Dealers

In this chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 5% consumer are highly satisfied with the respnose Of the company regarding enquiry 6% are satisfied , 28 % are average satisfied

and 68% are not satisfied.

Ques : Are you satisfied with the packing of the product ?

50 45 40 35 30 25 20 15 10 5 0 A
Interpretation :

Percentage Of Dealers

In this chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 4% consumer are highly satisfied with the packing of the product 50% are satisfied , 30 % are average satisfied and 10% are not satisfied.

Ques : Does product reach to the consumer without any damage?

40 35 30 25 20 15 10 5 0 A
Interpretation :

Percentage Of Dealers

In this chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 4% consumer says yes,product reach without any damage the product 50% are satisfied , 30 % are average satisfied

and 10% are not satisfied

Ques : Are you satisfied with discount offered by company ?

A B C D

Interpretation :

In this pie chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 35% consumer are highly satisfied with the discount offered by company 45% are satisfied , 15 % are average satisfied and 5% are not satisfied .

Ques : Are you satisfied with the correct quantity of material send by us ?

60 50 40 30 20 10 0 A
Interpretation :

Percentage Of Dealers

In this pie chart persons are divided into four categories A , B , C , & D. A stands for highly satisfied persons ,B stands for satisfied persons C stands for those persons who are average satisfied and D stands for who Are not satisfied. According to this chart 3% dealers are highly satisfied with the correct quantity Of material send by company 50% are satisfied , 60 % are average satisfied and 5% are not satisfied .

FINDINGS OF THE STUDY :

There are many duplicate product in all segments . Being problems in replacement , some customers are shifting to purchase competitors products. There is need of imrovement in supply of products. Advertising is necessary in the replacement segment. Although Clutch Auto Ltd. Has competitive price for genuine products but th e Customer want cheaper products , because they compare the price with local brands. Quality is satisfactory in all the market . Distribution is not so good in replacement market. Company is not providing promotional schemes with itsClutch discs and clutch covers . But the Dealers are demanding for it. In the area of faridabad there is no distributor so there atleast one distributor must be in faridabad.

LIMITATIONS :
The survey and research has been done in delhi and Faridabad . Therefore the results shows the market position of Delhi and Faridabad area only but due to small sample size and short time Duration results cannot be consider as representative of whole of the population .

Convenient sampling was used as the mode of conducting the research.

 Retailers may not have been true in answering various questions and may be baised to certain other questions . Some retailers however were not willing to share their and did not give any information. Many respondents did not give a proper thought before filling up the questions , and some even ticked things, which were not applicable. Respondents were reluctant to answer some questions, as they took them as personal , therefore increasing the possibility of error.

RECOMMENDATIONS & SUGGESTIONS :

Company should have more experienced and energetic marketing executive to promote the sales. Company should try to improve its manufacturing technology to enhance the quality and technology . Company should open the executives outlets of CAL products to remove the duplicity in the products. Rate list should be issued to all the dealers . Company should try to improve the exixting marketing channel , visit to the dealers to create healthy relation and hearing of complaints . Atleast monthly visit of sales executives should be in the market to create and maintain healthy relations.

Company should try to give good margin to retailers to promote the sales. Give credit to the dealers.

CHAPTER 5.
RECOMMENDATION AND SUGGESTIONS

RECOMMENDATIONS & SUGGESTIONS

Company should have more experienced and energetic marketing executives to promote the sales.

Company should try to improve its manufacturing technology to enhance the quality and technology.

Company should open the executives outlets of CAL products to remove the duplicity in the products.

Rate list should be issued to all the dealers.

Company should try to improve the existing marketing channel , visit to the dealers to create healthy relation and hearing of complaints. Atleast monthly visit of sales executive should be in the market to create and maintain healthy relations.

Company should try to give good margin to the retailers to promote the sales.

Give credit to the dealers.

CONCLUSION :

For my growth as a student of BCAM studies, it was a milestone to work in such a field . It was a privilege to work in such an efficient field.I have learned and grown a lot during my training as a professional and as a human being as well . I found my project extremely knowledgeable and informative. This was the first opportunity I got to get some practical experience . It made me familiar with the present work culture as I learned does and dont s for a professional in marketing. I am very thankful to all those professionala of Cutch Auto Ltd who helped me in my project by giving their precious time to me. I am grateful to all the faculty members of my institute for making my report a success.

S.No - 1

Performance Feedback On Standard Product: Customer Name :- Address :- Madan Motors (INDIA) 2, Krishna Motor Market Kashmere Gate,Dlehi Date :- 25/06/2010 NOTE : A.Highly Satisfied B.Satisfied C.Average D.Not Satisfied

Ques1:- Are you satisfied with on time delivery ?

Ques2:- Are you satisfied with the foundation of the product ?

Ques3:- Are you satisfied with the figment of the product?

Ques4:- Are you satisfied with the durability of the product?

Ques5:- Are you satisfied with the packing of the product?

Ques6;- Are you able to release the value for money from the product?

Ques7:- Are the product reaching your end safety without any damage?

Ques8:- Are you satisfied with the discount offered by us?

Ques9:- Are you satisfied with the correct quantity of material sends by us?

Ques10:- Are you satisfied with the proper discounts sent with the material ?

S.No - 2

Performance Feedback On Standard Product(2) : Customer Name :- Address :- BKS Motors Pvt. Ltd 280,Bara Bazar Guru Nanak Auto Market Delhi Date :- 25/06/2010 NOTE : A.Highly Satisfied B.Satisfied C.Average D.Not Satisfied

Ques1:- Are you satisfied with on time delivery ?

Ques2:- Are you satisfied with the foundation of the product ?

Ques3:- Are you satisfied with the figment of the product?

Ques4:- Are you satisfied with the durability of the product?

Ques5:- Are you satisfied with the packing of the product?

Ques6;- Are you able to release the value for money from the product?

Ques7:- Are the product reaching your end safety without any damage?

Ques8:- Are you satisfied with the discount offered by us?

Ques9:- Are you satisfied with the correct quantity of material sends by us?

Ques10:- Are you satisfied with the proper discounts sent with the material ?

S.No - 3

Performance Feedback On Standard Product (3) :

Customer Name :- Manoj Kumar Address :- Shanti Automobiles Railway Crossing ,Bata Chowk Faridabad Date :- 28/06/2010 A. B. C. D. NOTE : Highly Satisfied Satisfied Average Not Satisfied

Ques1:- Are you satisfied with on time delivery ?

Ques2:- Are you satisfied with the foundation of the product ?

Ques3:- Are you satisfied with the figment of the product?

Ques4:- Are you satisfied with the durability of the product?

Ques5:- Are you satisfied with the packing of the product?

Ques6;- Are you able to release the value for money from the product?

Ques7:- Are the product reaching your end safety without any damage?

Ques8:- Are you satisfied with the discount offered by us?

Ques9:- Are you satisfied with the correct quantity of material sends by us?

Ques10:- Are you satisfied with the proper discounts sent with the material ?

S.No 4

Performance Feedback On Standard Product (4) : Customer Name :- Address :- TATA Genuine Spares 2852, Bara Bazar Kashmere Gate,Delhi Date :- 28/06/2010 NOTE : A.Highly Satisfied B.Satisfied C.Average D.Not Satisfied

Ques1:- Are you satisfied with on time delivery ?

Ques2:- Are you satisfied with the foundation of the product ?

Ques3:- Are you satisfied with the figment of the product?

Ques4:- Are you satisfied with the durability of the product?

Ques5:- Are you satisfied with the packing of the product?

Ques6;- Are you able to release the value for money from the product?

Ques7:- Are the product reaching your end safety without any damage?

Ques8:- Are you satisfied with the discount offered by us?

Ques9:- Are you satisfied with the correct quantity of material sends by us?

Ques10:- Are you satisfied with the proper discounts sent with the material ?

S.No - 5

Performance Feedback On Standard Product (5) : Customer Name :- Address :- Nanak Motor Stores 1062, Bara Bazar Kashmere Gate,Delhi Date :- 5/07/2010 NOTE : A.Highly Satisfied B.Satisfied C.Average D.Not Satisfied

Ques1:- Are you satisfied with on time delivery ?

Ques2:- Are you satisfied with the foundation of the product ?

Ques3:- Are you satisfied with the figment of the product?

Ques4:- Are you satisfied with the durability of the product?

Ques5:- Are you satisfied with the packing of the product?

Ques6;- Are you able to release the value for money from the product?

Ques7:- Are the product reaching your end safety without any damage?

Ques8:- Are you satisfied with the discount offered by us?

Ques9:- Are you satisfied with the correct quantity of material sends by us?

Ques10:- Are you satisfied with the proper discounts sent with the material ?

BILIOGRAPHY : MARKETING RESEARCH by Beri G.C. (Edition 2007)

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