1. CHAPTER - 1
INTRODUCTION

2. 1.1 GENERAL OVERVIEW
An organization is a social arrangement which pursues collective goals, controls its own
performance, and has a boundary separating it from its environment. The word itself is
derived from the Greek word organon, itself derived from the better-known word ergon.
Organizational structure is a mainly hierarchical concept of subordination of entities that
collaborate and contribute to serve one common aim.
Organizations are a variant of clustered entities. An organization can be structured in many
different ways and styles, depending on their objectives and ambience. The structure of an
organization will determine the modes in which it operates and performs.
Organizational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as the branch, department, workgroup and
individual. Individuals in an organizational structure are normally hired under timelimitedwork contracts or work orders, or under permanent employment contracts or program
orders.
The organisational study was undertaken mainly to study the department functions of VGuard Industries ltd. Established in the year 1977,from the vision of one man, Kochouseph
Chittilapilly. V-Guard is nurtured by quality consciousness, passion for hard work and the will
to succeed. V-Guard‘s product range deals into various ranges of products which
cater the requirements of consumer durable industry, agriculture and construction
sectors of the country. V-Guard with its diversified products has a strong distribution and
marketing channel in small towns across India, which helps in tapping the rural and the interior
market.
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3. 1.1.1 OBJECTIVE OF THE STUDY
Primary Objective:The main objective of the study is to have a practical knowledge about the functioning of the
organisation.
Secondary Objective:To understand the organisation structure.
To study various functional areas of the organisation.
To understand how theory matches with practice.
To understand the duties and responsibilities of various department heads.
To identify the strengths, weakness, opportunities and threats of the organisation.
1.1.2 METHODOLOGY OF STUDY
The organisation study has been conducted by using qualitative form of analysis. But enough
attention is given for careful and complete observation of organisation and its functions.
Sources of data collection
The main sources of primary data are:
1. Discussions and interviews with managers and employees of V-Guard Industries Ltd.
2. Observation method.
Secondary Data :
The major source of secondary data includes company manual brochures circulars, annual
report and various other internal documents. In addition to this related Articles from journals,
books, magazines, internet were referred.
3

4. 1.1.3 PERIOD OF STUDY
This study has been conducted at V-Guard Industries Ltd, during the period 2nd May 2012 to
5th June 2012.
1.1.4 SCOPE OF STUDY
The study is confined to gain some knowledge about the culture and structure of the
organization and the functions of departments of V-Guard Industries Ltd., Cochin.
1.1.5 LIMITATIONS
The main constraints or limitations for the study were:
Limited time available for the study.
Authorities of all the departments had a busy schedule and hence there was no
scope for detailed interviews or interaction with them.
4

5. 1.2INDUSTRIALPROFILE
The Indian electrical equipment manufacturing industry is witnessing a sustained growth
momentum, with the industry registering a double digit growth in the financial year 201011, in spite of sustained imports, especially from China and South Korea.
The domestic electrical equipment manufacturing industry clocked a 16.6 per cent growth
during the first quarter of 2011- 2012, the same as in the previous year, according to industry
estimates. The Indian Electrical and Electronics Manufacturers‘ Association (IEEMA),an
industry association of manufacturers of electrical, industrial electronics and allied
equipment, has based these growth figures on the production and sales data collected from
its member organizations.
The electronics industry in India took off around 1965 with an orientation towards space and
defense technologies, which was initiated and controlled by the government. This was
followed by developments in consumer electronics mainly with transistor radios, black and
white TV, and other audio products. In 1982, the government allowed thousands of color TV
sets to be imported into the country to coinciding with the broadcast of Asian games in New
Delhi. The year 1985 witnessed the advent of computers and telephone exchanges, which
was succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the
golden period for electronics during which the industry witnessed continuous and rapid
growth.
From 1991 onwards, there was first an economic crisis triggered by the gulf war which was
followed by political and economic uncertainties within the country. Pressure on the
electronics industry remained though growth and developments have continued with
digitalization in all sectors, and more recently the trend towards convergence of
technologies. After the software boom in mid 1990s, India‘s focus shifted to software. In
recent years, the electronic industry is growing at a brisk pace. It is currently worth $ 10
billion but according to estimates has the potential to reach $ 40 billion by 2011. The largest
segment is the consumer Electronic Spare Part, which is also the largest export segment of
components.
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6. 1.2.1SECTOR OVERVIEW
Due to increased focus on power quality and energy efficiency by utilities, discoms and user
industries, demand for capacitors surged by 35 per cent in 2010-11. Rising demand from
power grid, independent power producer (ipp) and some utilities for high voltage (hv) and
extra high voltage (ehv) switchgear including products like automatic identification system
(ais), geographic information system (gis) resulted in a 28 per cent growth. Pent up demand
of medium voltage breakers for substation projects resulted in huge growth of more than 30
per cent.
A positive high is the increased participation from organized sector visible due to BEE
(Bureau of Energy Efficiency- star labelling programme), rapdrp (restructured accelerated
power development and reform programme) and cea‘s (central electricity authority) recent
recommendations for utilities to procure minimum three-star rated distribution transformers.
Presently, Indian exports of electrical equipment are less than 1 per cent of the global trade.
With the electricity sector being a sunrise sector across the entire developing world, there
also exists a significant export potential for the domestic industry.
Industry experts believe the ideal way forward to sustain the growth momentum would be
faster goods and services tax (gst) implementation, creation of level playing field, increased
focus on exports and sme development. This will lead to further acceleration in the
industry‘s growth process and contribute significantly reducing the power demand-supply
gap in the country.
1.3ROBUST GROWTH OUTLOOK FOR CONSUMER DURABLES IN
INDIA
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.
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7. The market for consumer durables is estimated at Rs 300 billion and is expected to reach Rs
500 billion by 2015. While the urban consumer durables market is growing at an annual
rateof 9% to 12%, the rural durables market is growing at 30% annually.
India is a power-deficient country with the per capita consumption of electricity at 566KW
as compared to the global average of 2782KW. With the improvement in per capita power
availability and consumption, the demand for electrical and consumer durable goods will
increase.
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. To expand their
business, foreign companies have done made 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.
7

8. CHAPTER – 2
COMPANY PROFILE
8

9. 2.1 OVERVIEW
V-Guard Industries Limited is a house hold name across India, a Kerala based company,
manufacturing and marketing of electrical and electronic products.
Established in 1977, from the vision of one man, Kochouseph Chittilapilly, V-Guard is
nurtured by quality consciousness, passion for hard work and the will to succeed. With a
production of over 1, 25,000 Stabilizers and processing 500 tons of copper every month.VGuard Industries Ltd has crossed a gross turnover of Rs. 1000 crores for the financial year
2011-12. A point to be noted is that V - Guard had achieved a turnover of 100 crores in 2000
and has grown by a whopping 10 times in the last 11 years.
India‘s largest manufacturer of voltage stabilizer (source: IMRB survey in India) enjoys
brand popularity in all over India and is now making a global presence with its increasing
exports and markets spread over the world.
V-Guard‘s success is measured not in terms of financial considerations, but in terms of
customer satisfaction and quality that is built into every product. V-Guard has employee
strength of more than 1300 and over 5500 indirect employees through its SHG initiatives.
With nearly 230 distributors and service centres and above 9500 retailers serving the needs
of a 50 million customers, V-Guard stands as a market leader spread across all states in India
except North East and J&K,with prompt, efficient and courteous after-sale service, that is
the foundation for V-Guard‘s excellent customer relations. In fact, millions of satisfied
customers have played a pivotal role in promoting V-GUARD‘s image.
Currently V-Guard‘s products are Electronic Voltage Stabilizer for TV, DVD, Refrigerator
and Air Conditioner, Digital Stabilizers, UPS, Monobloc / Jet / Compressor / Submersible
Pumps, Electric & Gas Water Heaters, PVC House Wiring Cables, LT Power & Control
Cables, Ceiling/Table/Pedestal/Wall mounting Fans, Solar Water Heaters, Inverters/Digital
UPS, MCB and Switch Boards. The company has electro controls division in a state-of-theart facility for the production of stabilizer cabinets, the fully automated, ISO 9001 Certified
Electrical Cable Division located at Coimbatore, facilitating the manufacturing of electrical
cables starting from 0.25sqmm size to 10sqmm size and the Solar Water Heater plant uses
International Manufacturing Technologies with high quality standards.
The ‗V-Guard‘ brand name is a household name in India and helped a lot to promote other
products. At V-Guard, Quality is not an accident but a continuous process, beginning with the
9

10. careful selection of only the finest components through the best sources. From hi-tech product
designs to stringent quality checks at every stage of the manufacturing process, to ensure
world class performance, V-Guard‘s passion for perfection gets first priority. Then comes the
service to the customers. At V-Guard success is measured in terms of customer satisfaction.
The pricing of the product also plays a major role in marketing. V-Guard does not believe in
creating an artificial demand for their product. Before a product is advertised it is made
available in the market so as to avoid inconvenience and confusion to the customer. V-Guard
Supply Chain Division is playing an important role in the safe distribution of goods all over
the country with speed.
In the meanwhile V-Guard had another ace up on her sleeve. A 20 crore P.V.C. cable
manufacturing unit at Coimbatore completed with imported machinery, now manufacturing
House Wiring Cables, Flat Cables, Round Cables, Submersible Cables and Power Cables.
V-Guard is also manufacturing Solar Water Heaters (Models ranging from 100 LPD to
10000 LPD) at its own factory located near to Coimbatore.
The company is also introducing two new products - domestic switch gear and induction
cooker in the market in the current financial year. This is the first entry of V-Guard in the
kitchen appliances segment.
2.2COMPANY HISTORY
The foundation of business was laid with the formation of a Partnership Concern viz.
Premiere Electronics by Promoter Mr.KochousephChittilapilly in the year 1977 which was
engaged in the business of manufacturing and marketing voltage stabilizers under the brand
name V-Guard. In the year 1992, Premier Electronics, the partnership concern was dissolved
and Mr.Kochouseph Chittilapilly continued thebusiness as a proprietaryconcern.Also, in the
year, 1985, Mr.Kochouseph Chittilapilly started another proprietorship concern by the name
of M/s Prompt India for marketing of the products under the brand name of V-Guard.
Subsequently, M/s Prompt India changed its name to M/s V-Guard Industries.
On February 12, 1996, Company was incorporated under the name of V-Guard Industries
Limited culling ‗v‘ from volt and a kangaroo mascot to indicate protection under the
Companies Act, 1956, with the Registration No. 09-10010 of 1996 having its registered
10

11. office at 44/1037, Little Flower Church Road, Kaloor, Cochin- 682017, Kerala, India.
With effect from 1st April, 1996, the company took over the business of theproprietary
concern i.e. M/s V-Guard Industries, on-going concern basis for a lump sum consideration
of Rs.234 lakhs and carried on the business of the firm namely manufacturing and marketing
of electronic and electro mechanical appliances.
With effect from November 15, 2001 the Company was converted into a private limited
company and converted into a public limited company on August 1, 2007 and received a
fresh certificate of incorporation in the name of V-Guard Industries Limited.
V – Guard has now diversified into a multi-product company which now manufactures and
markets Electronic Voltage Stabilizers, Monobloc,Jet, Submersible, Compressor Pumps and
Electric Motors, Insulated Electrical Cables (House Wiring, Industrial), Electric Storage &
Instant Water Heaters, Solar Water Heaters, UPS, Electric Fans and is also in generation of
Power in a small way.
2.3PROMOTERS OF V-GUARD
• Mr KochousephChittilapilly, Post graduate in Science majoring in Physics from Calicut
University.
• Ms Sheela Kochouseph, B.Sc. Home Science graduate from University of Calicut.
2.4BOARD OF DIRECTORS
• Managing Director:
Mr Mithun Chittilapilly is a Post Graduate in Finance from University of Melbourne,
Australia. Mr Mithun after completing his Graduation in Commerce joined V-Guard to be
trained in the various departments of the company.
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12. • Joint Managing Director:
Dr. George Sleeba is a Graduate in Mechanical Engineering with First Class Honours
from Kerala University and M Tech in Industrial Engineering from IIT, Madras. Dr.
Sleeba has a Post Graduate Diploma in Management from All India Management
Association (AIMA) and Doctorate in Social Sciences from the Cochin University of
Science & technology (CUSAT).
• Chairman:
Mr P.G.R Prasad is a Certified Associate of the Indian Institute of Bankers, Chartered
Financial Analyst and Certified Financial Planner, Financial Planning Standards Board
India. He was inducted to the Board of Directors of V-Guard as an Independent Director
on 16th August, 2007.
• Vice Chairman:
Mr Kochouseph Chittilapilly is a post graduate in Science majoring in Physics from
Calicut University. He started his career as a Supervisor in an electronics company,
where he worked for 3 years.
2.5INDEPENDENT DIRECTORS
• Mr C.J George
Aged 49 years, is a Post Graduate in Commerce, Certified Financial Planner and a
Research Scholar with School of Management Studies of Cochin University of Science and
Technology. He joinedthe company as an Independent Director on 16th August 2007.
• Mr A.K Nair
Appointed as the Non-Executive Director of the Company on 27th May 2009 Mr
A.K.Nair holds a Bachelor‘s degree in Mechanical Engineering with Masters in Business
Administration and has over 45 years of experience in engineering industry.
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13. 2.6 COMMITIES
• Audit Committee
• Remuneration Committee
• Share transfer/ Shareholders Grievance Committee
• IPO Committee
2.7VISION
―Let us endeavour to make v guard a trusted household name.‖
2.8MISSION
1. 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
2. To make their products meet international quality standards and provide trouble free
performance.
3. To adopt designs, which support timely brand efficient post sales service.
4. To continuously innovate and add value to their products, if needed with technical
collaboration.
2.9BUSINESS STRATEGY
• Maximise revenue through capacity expansion and increase in efficiency.
• Reduction in cost of borrowing.
• Enhancing production efficiency and minimize process losses
• Reduce operational costs and be cost competitive
• Have a consumer centric approach
• Deliver value for money to our clients
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14. • Adopt best practices in all functions and processes
2.10MAIN OBJECTS OF COMPANY DURING INCORPORATION
To establish and carry on the business of manufacturing, selling, distributing or otherwise
dealing in all types ofelectrical, electro mechanical, and electronic appliances, equipment,
lighting and lighting fixtures, accessories and spares including stabilizers, electric motors,
pump sets, clocks, time pieces, watches, water heaters, washing machines, dish washers,
ovens, mixies, electric irons, refrigerators, television sets, air conditioners, communication
equipment‘s photocopying machines, cameras, panel boards, relays, switch gears, switches
and control gears, circuit breakers, transformers, electric meters, water meters, uninterrupted
power supply systems, constant voltage transformers, accumulators and computers, security
alarms, security systems, door locks with or without power, padlocks, other locking devices,
printed circuit boards of all kinds and for all purposes whether populated or otherwise,
insulated cables, insulated and enamelled winding wires of all varieties and uses, all kinds of
tubes, pipes, pipe fittings, hoses, components, accessories, moulded goods of all kinds and
for all purposes including tanks, containers, bottles, toys and all other blown, moulded,
formed or extruded goods and articles, whether made of steel, alloys, stainless steel, PVC,
plastics, rubber or any other metal, or substance or materials, photovoltaic solar energy
devices/systems such as lighting, pump sets, audio-video equipment‘s, fans and all kindsof
solar energy systems.
2.11QUALITY POLICY/PROCESSES
V-guard has a holistic, enterprise -wide approach to quality. Utmost care is taken while
selecting the various components that go into production.
Sourcing is done from manufactures of repute. Each component is checked for quality
compliance ,and those that do not meet set parameters are rejected.
Various checkpoints along the production line ensure quality standards are adhered to.
Post-production inspection and certification ensures each individual product that moves
off the assembly line conforms to internationally accepted quality and performance
benchmarks. It is v-guard commitment to the quality that has made it ‗the name you can
trust‘.
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15. MNRE - CRISIL
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.
BIS CERTIFICATION
The PVC cable factory at Coimbatore bears the Bureau of Indian Standards certification for
quality of the cables produced.
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.
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.
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.
OHSAS 18001: 2007
Concern for employee safety has even lead to OHSAS certification of the Coimbatore and
Kashipur factories.
15

16. 2.12MILESTONES ACHIEVED
1977
Mr.KochousephChittilapilly sets up Premier Electronics with an investment of
Rs. one lakh and with just two employees. Two Refrigerator Stabilizers were
manufactured each day.
1980
1982
1983
Launched AC Stabilizers.
Started another unit called "Universal Electronics".
Started "Supreme Electronics".
1986Started "Prompt India".Expanded operations outside Kerala by opening of Tamil Nadu
branch, followed by a branch in Karnataka. Prompt India started marketing
Stabilizers in the brand name of V-Guard.
1987
1989
1992
1996
Launched Servo-Controlled Stabilizers.
'Prompt India' converted into 'V-Guard' Industries.
Launched V-Guard Pumps and started new branch office in AndhraPradesh.
V-Guard Industries became a Public Limited Company. Launched V-Guard
WaterHeaters and Wiring Cables.
1997
Launched Aquatron, an Electronic Water Level Controller for overhead water tanks.
1998
Launched UPS (Online & Offline).
1999
Launched Digital Stabilizer, diversified into Electric Cable business with VGuard Cable manufacturing unit at Coimbatore.
2000
Turnover crosses INR 1000 Million Mark.
2001
Launched Compressor Pumps. Company is converted into Private Limited for
better manoeuvrability.
2002
Launched V-Guard Solar Water Heaters.
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17. 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 Collector Technology.
2006
Launched V-Guard Fans. Branch office at Bhubaneswar, Pune &Hubli.
2007
New Branch offices at Vijayawada, Bhopal, Kala Amb, Vadodara, Kanpur,
Nagpur, Raipur, Jamshedpur, Kolkata, Ludhiana and Jaipur. Turnover crossed
INR 240 Million Mark. V-Guard Industries became a Public Limited Company.
2008 Listed in BSE & NSE. Launched Inverters& LT Cables. New Factories at
Coimbatore &Kashipur established.
2009 New LT Cable Factories at Kashipur and Coimbatore became operational.
2009 Opened Manufacturing facility for Water Heaters and Fan at Kala Amb
2010
Turnover crosses 4600 million marks.
2010
New branch office in Madurai.
2011
Turnover crosses 7263.5 million marks.
2011
2012
New branch offices in Ghaziabad, Dehradun, Patna and Chandigarh.
Mr.Mithun Chittilapilly has become the Managing Director of V-Guard
IndustriesLtd. Mr.KochousephChittilappilly continuing in the role of Vice
Chairman of V-Guard Industries Ltd.
The appointment of Mr.V.Ramachandran as Director-Marketing & Strategy from April 2012
was also announced
Turnover crosses 1000 crore marks.
17

18. 2.13RECOGNITIONS
Best Entrepreneur in Kerala awarded to KochousephChittilappilly, CMD, V-Guard
Industries Pvt. Ltd. (1993).
Highest Individual Income Tax Payer from the State 1993 to 1995 from the
Government of India.
VyavasayaJyothi Award given by the Ernakulam Chamber of Commerce (1996).
Industry Excellence Award for Medium Scale Industries awarded by The Institution
of Engineering (India), Cochin (1998).
Millennium Businessman of Kerala awarded by Business Deepika (2000).
Most popular consumer product brand in Kerala awarded by Dhanam publications in
2006.
Productivity award 2006-2007 for medium scale industries by Kerala Productivity
Council.
Best productivity performance award 2007 in the medium industry segment by
FACT MKK Nair Memorial.
Businessman of the Year awarded by Dhanam Magazine (2007).
Award for corporate sustainability 2009, Times of India.
Samoohya Suraksha Award by the National Safety Council, Kerala Chapter (2010).
Award by Energy Management Centre 2010 in appreciation of achievements in
Energy Conservation and management in Kerala.
The Prestigious Management Leadership Award by Kerala Management Association
Award (2012).
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19. 2.14 PRODUCT PROFILE
PRODUCTS
1. VoltageStabilizer
Fig 2.1 Stabilizers
V- Guard stabilizers offer the best technology with features like automatic restart, turn-on
delay, time-delay system and high-low voltage cut-off that provide efficient and reliable
protection for electronic appliances against voltage problems.
V- Guard stabilizers are unmatched in every sense. It‘s ‗jellybean‘ design is registered to
prevent cheap imitations. V-Guard stabilizers come in different capacities for different
applications like Air conditioner, LCD TV, Music system, Refrigerator, washing machine,
microwave oven and treadmill.
2. Wiring Cables
V-Guard cables are manufactured in a fully-automated
ISO 9001 certified factory at Coimbatore and Kashipur.
ISI marked V-guard cables come with HFT Technology,
3-layer insulation and length assurance seal in every 90
Fig 2.2 cables
meters. Multi-core flat, Round, LT Power Cables and
Control Cables are also available. All cables are available in FR and FRLS variants.
3. Power and Control Cables
V-Guard cables are manufactured in a fully-automated
ISO 9001 certified factory atCoimbatore andcomplywith
world-class standards. All cable designs conform to IS:
Fig 2.3 PVC Cable
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20. 7098(Part1) for XLPE and IS: 1554 (Part1) for PVC Insulated Cables for working voltages
up to including 1.1 KV. These high quality cables ensure protection against electrical
hazards. V-Guard LT Power & control Cables come in armoured and unarmoured variants.
4. Pumps
Ultra efficient V-Guard Pumps with ‗high-speed
pumping technology can pump water even from the
deepest of wells quickly. V-Guard pumps are made
from top-grade casting, fine components and highquality aluminium. With a wide application range, these
pumps are available in more than 400 models ranging
from 0.25 to 25 HP (Including 3-Phase models) for
Fig 2.4 Pumps
domestic, agricultural and commercial purposes.
5. Geysers/Water Heaters
V-Guard offers a wide range of instant and storage
model water heaters. The latest ‗Energy Saving
Technology‘ with 5-star rating saves up to 50% energy
and the ‗Penta Protection system‘ assures maximum
user safety.
The outer body is made of high-quality ABS and
powder coated metal.1,6,10,15,25,35,50,80,100 litre
capacity water heaters are available in different models
Fig 2.5 Geysers
like Electric water heater, Gas water heater and
immersion water heater to suit bathrooms and kitchens.
6. Solar Water Heaters
V-Guards solar water heaters with international ETC
(Evacuated Tube Collector) technology are way ahead of the
competition, in terms of quality, technology. Approved by
Ministry Of New and Renewable Energy-Guard solar heaters
are completely eco-friendly and non-polluting. They are
Fig 2.6 solar Water Heater
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21. available in 100, 125, 150, 200, 300, 500,1000,2000,3000,4000 and 5000 LPD capacities.
Manufacturing takes place at ISO Certified factory in Coimbatore.
7. Fans
V-Guard Fans with unique ‗High-Angled Technology‘
and specially designed blades that facilitate ‗full
coverage‘ of cool breeze in the entire room. The sleek
metal painted body and stylish design, add a touch of
class to the interiors. Fans are available in different
models andcolours.
Fig 2.7 Fan
8. UPS (Line Interactive and Inline UPS)
V-Guard UPS series starts from 600VA to 60 KVA to match
the wide range of customer requirements from different
verticals. Some of its features are:
Microcontroller/DSP controller based technology
Fig 2.8 UPS
Line interactive and online UPS technology.
Capability to handle various types of loads.
Active power factor compensation design.
Off mode battery charging with HVP protection.
Over voltage protection module.
Generator/Inverter compatibility.
9. Digital UPS, Inverters, Batteries and Trolley
V-Guard digital UPS is equipped with advanced Microcontroller based line interactive Technology and a host of
features like MOSFET based Power Stage with PWM
Fig 2.9 Digital UPS
output, FRCM with UST(Uni Polar Switching Technology) for uninterrupted back-up during
power failure.
10. Switch gears
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22. V-Guard switch gears have been designed with world class tripping mechanisms to ensure
maximum safety. It conforms fully to IEC standards. It has high quality moulded casing
with superior thermal and dielectrically properties. It has got improved and rugged design of
operating mechanism
11. Distribution boards
V-Guards distribution boards are designed with the objective of easy assembling and
inside wiring. It has got high quality surface treatment and superior powder coating and
has enhanced protection against corrosion. It is available in attractive colour shades and
aesthetic design. Phase selector DB‘s, Plug and sockets and MCB enclosures are also
available.
22

23. Table 2.1 Manufacturing and outsourcing
facilities of VGIL
Fig 2.10 Contribution per Product to Revenue
VGIL‘s major chunk of revenue is generated through cables and stabilizer contributing 29%
and 23% respectively. Both the products grew substantially by 37% and 71% yoy. Further,
LT Cables, Digital UPS and fans individually registered triple digit growth at 168%.
146%and 108% respectively. Other products such as water pumps, water heaters and solar
water heater reported expansion in its sales by 42%, 62% and 31% respectively.
Table 2.2 Product Wise Turnover (In Crores.)
23

24. 90
80
70
60
50
Q3 FY 2012
40
Q3 FY 2011
30
20
10
0
wires
Stablizer Pump LT Cable Water
Heater
Solar
WH
UPS
Electric
Fan
DUPS
Others
Fig 2.11 Graphical representation of product wise turnover
There has been tremendous growth by 45% in turnover in Q3 2012. The highest turnover is
for the product segment wires which contributes around 77 crores having growth rate of
47%.The wires is followed by stabilizer‘s which accounts 28% growth. The highest growth in
turnover is for Digital UPS, trolley an batteries which accounts 395% respectively. The least
growth is for solar water heaters and electric fan which has growth of 11% and 16%.
2.15MARKET SHARE
24

25. The company‘s southern region contributes around 65% to the total revenues. Whereas rest
35% comes from the northern markets. Compared to the previous years the dependency on
the south Indian market has been decreased which is a positive sign for the growth drive of
V-Guard. The company strategy is to penetrate into northern markets and the management
expects around 40% will be northern markets share in FY 13. The company gradually plans
to increase 5% in other markets. With this strategy the management plans to take V-Guard at
a pan India level.
South India
91%
North India
85%
70%
65%
30%
35%
15%
9%
2009
2010
2011
2012
Fig 2.12 Region Wise Revenue
2.16COMPETITION ANALYSIS
25

26. Much of the market in which v guard operates in its unorganised and fragmented of each of
the products from other manufactures in domestic or divisions of large multinational
corporations as well as competitors .They compete with their manufacturers on the basis of
product range, product quality, product price after sales service including factories based on
repetition, regional needs and customer convenience. Their completion varies for each of the
products and regions. They compete different players in different products in different
regions.
Table 2.3 Major Competitors (product Wise)
PRODUCT
Stabilizers
COMPETITORS
Vigil, Premier,V-Care, Shalimar, Everest,
Safeguard,Keeline, Blue Bird, Premier, Logicstat
Cable
Finolex,Polycab, Anchor, Havells etc.
Pump
Crompton Creaves, Kirloskar, Texmo, etc.
Electric Water Heaters
Racold, Bajaj, Venus etc.
Solar Water Heaters
Tata BP, Bajaj, Rancold
Electric Fan
UPS
Crompton Greaves, Havells
APC,Numeric, Emerson
However competition levels vary for each product in each region .In addition, the market
share keeps changing constantly with advent of new technologies and products. In present
competitive environment, companies which develop effective, improved and reliable home
appliances and have strong customer focus in the form providing after sales services will be
increasingly differentiated from the others in the field.
2.17 DISTRIBUTION CHANNELS
26

27. The Distribution network:
Fig 2.13 Channels Of distribution
There are 230 distributors, 300 Direct Market Associations and 9000 retailers for the
company. The company follows a distribution dealership models depending upon the
products and how comfortable and economical the company is able to sell. For stabilizers and
pumps, the company follows distributors model and has more than 180 distributors network
largely in South India. For cables, wires and other company follows a mix of distribution and
dealership model. In states other than South India, the company largely follows this
distribution plus dealership models. It does not own a shop or any franchisees. No plans to
open its own shop or mall, given the high cost and lower success ratio in that model.
I.
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.
II.
Company—-> Direct Marketing Association—-> Customers
In this, the products are marketed through direct marketing associations. Products like solar
water heaters and digital UPS's are marketed this way.
27

28. III.
Company--> Direct Dealers--> Customers
In this, the company markets their products among their customers only through authorized
dealers all over the country.
Table 2.4 ZONE 1 Distributors per state
STATE
Andaman and Nicobar Island
No. of distributors
3
Kerala
Tamil Nadu
Pondicherry
Andhra Pradesh
Odisha
42
31
2
14
16
Table 2.5 ZONE 2 Distributors per state
STATE
Madhya Pradesh
Gujarat
Rajasthan
Chattisgarh
West Bengal
No. of distributors
4
1
5
3
3
Bihar
4
New Delhi
6
Haryana
15
Uttarkhand
1
Uttar Pradesh
22
Punjab
7
Himachal Pradesh
2
Jammu and Kashmir
3
Uttaranchal
Chandigarh
5
2
Table 2.6 ZONE 3 Distributors per State
STATE
Karnataka
No. of Distributors
23
28

29. Goa
Maharashtra
2
15
2.18 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.
THE THOMAS CHITTILAPILLY TRUST
The Thomas Chittilapilly Trust was founded by Kochouseph Chittilapilly, 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 TholurPanchayath, Kerala and 105 families in RamanagaramTaluk in
Bangalore, Karnataka.
It also conducts free health camps at villages and backward areas where the reach of proper
health care is absent. It sponsors the education of 1587 school children from economically
backward sections in Thrissur and Ernakulum Districts in Kerala and RamanagaramTaluk,
Bangalore.
The trust has also made substantial contributions to NGO‘s working for various social
welfare causes like Udhavumkarangal and the SOS village. It has also donated generously
tomany 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.
29

30. SHANTIMANDIRAM
An old age home for women, providing shelter and care for those who are unable to care of
themselves in Parappur 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 60 inmates 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.
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.
SOCIAL WELFARE FUND
An employee CSR activity Social welfare consciousness being embedded in V-Guard
work culture has motivated the employees to join hands in reaching out in charity.
The Social Welfare Fund was created out of the goodwill of the employees who collate funds
and donate towards cost of medicines for the poor in the cancer ward at the
Ernakulum General Hospital.
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 SHG‘s (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.
CHAPTER – 3
THE ORGANIZATION
30

31. 31

32. 3.2 DEPARTMENTS IN V - GUARD
Table 3.1 Names of the Departments
Sl No.
Departments
1.
Supply Chain Management
2.
Electronic and New project
3.
Electro Mechanical
4.
Systems
5.
Corporate Communication
6.
Mechanical and Electrical
7.
Finance
8.
Human Resource
9.
Marketing
10.
Customer Service
32

33. 3.2.1SUPPLY CHAIN MANAGEMENT
Supply chain management is a cross-functional approach including managingthe movement
of raw materials into the organisation,certain aspects of the internal processing of materials
into finished goods and the movement of finished goods out of the organisation and towards
the end-consumers.
The purpose of Supply Chain management is to improve trust and collaboration among
supply chain partners.There are above 100 employees under this department .The major
threat that SCM faces is duplication of the products of the company .SCM ensures the
coordination among the department through effective communication for achieving the
ultimate goal.
Objectives
To reduce lead time.
To reduce order to delivery cycle time.
To improving On-Time delivery.
To reducing warehouse Cost.
To enhance customer service.
To expand sales revenue.
Functions
The functions of this department can be studied under two heads
1. Inbound material movement function(Purchase Function).
2. Outbound material movement function(Logistics and Distribution).
33

34. The following are the activities under each function
SCM
Logistics control
Raw material
Purchase
Failure and FeedbackInventory
management
Vendor development
Vendor Rating
Warehousing
Vendor approval
Price negotiationsTransportation
Bench marking
Market intelligence
Order fulfilment
Quality approval of
Raw materials
Fig 3.2 Major activities Of SCM
34

35. DEPARTMENT CHART
VP (PURCHASE AND
LOGISTICS MANAGEMENT)
DEPUTY GENERAL
MANAGER (RAW
MATERIAL PURCHASE)
DEPUTY GENERAL MANAGER
(LOGISTICS CONTROL)
CHIEF OFFICER
CHIEF OFFICER
OFFICERS
OFFICERS
Fig 3.3 Supply chain Management department
35

36. 3.2.2ELECTRO MECHANICAL DIVISION
The Electromechanical department of V-Guard industries ltd handles the production activities
of its products such as water pumps,electric fan, switch gears, industrial motors and also
electronic mixer and grinder which is in stage of development.
There are around 30 manufacturing units for the production of the products mentioned above.
Table 3.2 Manufacturing units (Product wise)
PRODUCT
Water Pumps
Fan
MANUFACTURING UNIT
Coimbatore, Gujarat, Punjab ,Haryana
Hyderabad, Own unit in Himachal Pradesh,
also imports from China.
Switch gears
Completely manufactured in Hyderabad.
Industrial Motors
Completely manufactured in Coimbatore.
There are 150 employees working under this department, most of whom are diploma
electronics holders and also engineers.
Objectives
•To provide cost effective and reliable products.
•To provide best quality pumps and motors.
•To provide products that is conforming to international standards
•To provide high power products with energy saving technology
Functions
Satisfying marketing need
-
Making production as per requirement of marketing department.
Designing of product and development.
36

37. Maintaining good quality system.
Auditing of systems and checking for any deviations in quality for taking corrective action.
Sub Functions
1. MARKETING SUPPORT FUNCTION
The electro mechanical department support the marketing department in several ways. The
engineers in electro mechanical department have got a better understanding about the product
and its features. Hence they can provide a better response to the customer‘s queries.
2. TECHNICAL SUPPORT FUNCTION
The electro mechanical department also support the service department. When situations arise
where the staffs in service department is unable to handle the complaints of the customer, the
engineers from electro mechanical department supports them. They visit the site and fix the
problem.
3.VENDOR DEVELOPMENT FUNCTION: This function is about finding the right
suppliers for attaining raw materials required for production.
37

38. DEPARTMENT CHART:
VICE PRESIDENT
DEPUTY GENERAL
MANAGER
(PRODUCTION)
DEPUTY MANAGER
(PRODUCT
DEVELOPMENT)
ASSISTANT
MANAGER
(MOTOR)
EXECUTIVES
ELECTRONICS
EXECUTIVES
ASSISTANT
MANAGER
CHIEF
OFFICERS
EXECUTIVES
EXECUTIVES
MECHANICAL
EXECUTIVES
CHIEF
OFIICERS
EXECUTIVES
Fig 3.4 Electro Mechanical Division
The VP handles the overall activities of the department and is assisted by the deputy manager
and assistant manager. V-Guard industries ltd provides two types of pumps, the single phase
38

39. pumps and 3 phase pumps, within each are different categories.DGM (Production) takes
control of the product production activities.DGM(product development) deals with
development of new products. There are two separate divisions under it one dealing with
electronics and other with mechanical product development.The Assistant manager takes
control over the motor production alone.Under every heads there are executives which assist
others.
3.2.3SYSTEMS DEPARTMENT
An organisation is managed by taking various decisions at the various levels of its
management hierarchy. Information is needed to take these decisions. Quality of decisions
will largely depend on nature and type of information provided for taking decisions.
Therefore, designing of an effective information system is important.
The system is
responsible for maintaining the information in the organization. The data centre in v guard is
centralized and servers are maintained at the head office.
Objectives
Providing high availability of IT services.
Integrity of information in complete.
Security of data.
Role Of Systems
Procure system hardware‘s, software and services.
Deploy IT services.
Maintain IT equipment.
Components

IT OPERATION TEAM
They procure hardware, software, maintain annual maintenance contract
with
vendors.

IT TECHNICAL TEAM
They deal with systems administration, application support in SAP,portal(.net)

SAP FUNCTIONAL TEAM
It consists of specialists in finance, costing, production etc.
39

40. IT TEAM
HEAD OF THE
DEPARTMENT
SENIOR MANAGER
ASSISTANT MANAGER
HARDWARE
EXECUTIVE
DEVELOPER
SOFTWARE
CONNECTIVITY
SECURITY
EXECUTIVE
EXECUTIVE
EXECUTIVE
DEVELOPER
DEVELOPER
DEVELOPER
Fig 3.5 Systems Department
IT Operations

PROCUREMENT: Capital Items, spares and consumables.

IT SUPPORT:Desktops,printers,CCTV etc.

SERVICES: Mail, Internet, Disaster recovery.

CORE APPLICATION: SAP, Intranet.
40

41. 3.2.4MECHANICAL AND ELECTRICAL DEPARTMENT
This department mainly deals with products such as:
Electric water heaters
Gas water heaters
Immersion heaters
Room heaters
Solar heater
Induction cooker
Among these products 60% of the manufacturing process of electric water heater is done by
V-Guard and the rest 40% is outsourced. Gas water heater. Immersion water heater, room
water heater and induction cooker are completely outsourced. Manufacturing units are mainly
located in Himachal Pradesh and Coimbatore.
There are ground 60 direct staff and 30-35 indirect staff under this department.
Objectives
To develop the product as per the market requirement.
Improve the quality of the products day by day.
To facilitate innovations in production.
To provide products with consistent performance.
Functions
Support the customer service department through technical assistance in case the
service department fails to solve or couldn‘t reply to consumers queries and
complaints.
To design and develop the product as per the required standards.
To understand the requirement of the product in the market.
41

42. DEPARTMENT CHART
VICE
PRESIDENT
GENERAL
MANAGER
(Manufacturing)
CHIEF
OFFICER
(Admn.Group
))
)
Sr.MANAGER
(Manufacturing
QC
ENGINEERS
WATER
HEATER
CHIEF OFFICER
(Outsourcing)
QC
ENGINEERS
CHIEF
OFFICER
(Product group)
DEPUTY
MANAGER
(Design)
FANS
Fig 3.6 Mechanical and Electrical
3.2.5CORPORATE COMMUNICATION
Corporate communication is the message issued by a corporate organization, body, or
institute to its publics. "Publics" can be both internal (employees, stakeholders, i.e. share and
stock holders) and external (agencies, channel partners, media, government, industry bodies
and institutes, educational and general public).There is 7 employees working.
The entire process begins with earmarking the advertisement and promotion budget for the
year. This budget is further divided between the above-the-line activity (ATL) including
mediums like TV, print, radio, and below-the-line activity, which includes outdoor activities
like hoardings, dealer sign boards, collaterals, and plumber, meets and electrician, meets.
A 360 degree engagement is made toward consumers by reaching out them with mass media
and regional focused activity. IPL team of Kerala being sponsored by V Guard is one such
example.70% of the expense is for ATL and rest 30% for BTL.
42

43. Objectives
To flesh out the profile of the "company behind the brand" (corporate branding);
To minimize discrepancies between the company's desired identity and brand
features.
To delegate tasks in communication;
To formulate and execute effective procedures to make decisions on communication
matters;
To mobilize internal and external support for corporate objectives
Functions
Creative Advertising and Public relations.
Media planning and buying.
Support to activities including design, purchasing mementos.
Printing
DEPARTMENT CHART
GENERAL
MANAGER
CHIEF OFFICERS
SENIOR OFFICERS
EXECUTIVES
IN HOUSE
DESIGNER
IN HOUSE
DESIGNER
Fig 3.6 Corporate Communication
43

44. 3.2.6MARKETING DEPARTMENT
This department performs all the business activities that direct the flow of goods and services
from producer to consumer, this may be through advertisements in any of the media or
through the sales promotion measures.V – Guard has got a technically skilled and motivated
sales team who understand changing customer requirements and shifting customer
preferences. They give base level feedback to Company which forms the foundation for
devising various promotional schemes and programmes etc.Sales turnover of 5-6% is
earmarked for advertising the products to relevant segments.Both 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.There are 200 distributors, 300 Direct Market
Associations and 9000 retailers for the company.
The company believes that its dealers and distributors are the best brand ambassadors.
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
distributor.
Table 3.3 Mode of appointing dealers
PRODUCT
MODE
Stabilizer
Appliances dealer
Water heater
Appliances & electrical dealers
Pump
Pump dealers
Wires
Electric dealers
Fan
Appliances, electrical & pump dealers
UPS
Computer dealers
Online UPS
Direct dealers
LT Cable
Dealer & direct project
SWH/DU
DMAs
Switchgear
Electrical dealers
Induction cook top
Appliances dealers
44

45. Dealers Promotion Activities
1.
Margin
2.
Schemes
3.
Advertisement policy – press and TV from corporate office.
4.
Dealer‘s meet- held in every two years with the main intention of imparting relevant
sales skills and motivation and rejuvenating the social bond with them.
5.
Below-the-line activity – state head budget
Marketing Strategy
i.
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.
ii.
Company—-> Direct Marketing Association—-> Customers
In this, the products are marketed through direct marketing associations. Products like solar
water heaters and digital UPS's are marketed this way.
iii.
Company--> Direct Dealers--> Customers
In this, the company markets their products among their customers only through authorized
dealers all over the country.
Credit Policy
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 cheques.
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 headof departments,
45

46. 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.
46

47. DEPARTMENT CHART
MARKETING
ZONE 1
ZONE 3
ZONE 2
M.V Muralidharan
Deepak Augustine
Surya Prasad
VP- MARKETING
VP- MARKETING
VP- MARKETING
V
PIC-
PIC-
PIC-
STABILIZER
UPS
PUMP
PIC3
PHASE
PUMP
PICWIRE
PICLTCABLE
PIC-
PIC-
PIC-
SWH
PIC – WATER HEATER
DUPS
SWITCH GEAR
PICFAN
PICINDUCTION
COOK TOP
DATA SUPPORT
Fig 3.7 Marketing department
The marketing activities are divided across 3 different zones each which has a vice
president(marketing).Under them are the executives of product incharge.There are 6
executives under each product in-charge. In case of distribution centers, a manager,
sales persons, van drivers and unloading boys are present. Training to all these persons
is given on the basis of the products they are handling.
47

48. STATES AND BRANCHES UNDER THE 3 ZONES
Table 3.4 ZONE 1 Branches
STATE
BRANCHES
44
Kerala
Cochin and Palakkad
Tamil Nadu
Coimbatore , Chennai
Andhra Pradesh
Hyderabad,Vijayawada
Odisha
Bhubaneswar
Table 3.5 ZONE 2 Branches
STATE
BRANCHES
Madhya Pradesh
Bhopal
Gujarat
Ahmedabad
Rajasthan
Jaipur
Chattisgarh
Raipur
West Bengal
Kolkata
Bihar
Patna
Assam
Guwahati
Other states under zone 2 : Delhi, Haryana, Dehradun/Uttarkhand, Uttar Pradesh, Punjab,
Himachal Pradesh & Jammu Kashmir.
Table 3.6 ZONE 3 Branches
STATE
BRANCHES
Karnataka and Goa
Bangalore, Hubli
Maharashtra
Mumbai, Nagpur
48

49. 3.2.7CUSTOMER SERVICE DEPARTMENT
Customers are the strength of every organization. V-Guard aims at making their products as a
trusted household name. For this, the product needs to meet or exceed the customer‘s
expectation.This department deals with the relationship that the company maintains with the
public. They mainly deal with providing after sales service to the customers.
It has total of 70 employees spread across India and above 200 service centers across India .
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: Serviced is provided through the dealers who deal with v guard
products. In this case, the customers can approach the dealers with the defected product and
the dealers return the products after the complaint has 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 Service
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.
49

50. DEPARTMENT CHART
HEAD OF
DEPARTMENT
MANAGER
Regional –incharge
Regional –incharge
Regional –incharge
Branch –incharge
Branch –incharge
Branch –incharge
Service-incharge
MSC & Help
Line
Service-incharge
Service-incharge
Fig 3.9 Customer Service Department
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
50

51. 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 tollfree number 1800 3000 1800. Customers
from any state can contact the branch office in the state through this number.
Register the complaints through official website
The customer can also register their complaints through www.vguard.in
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.
3.2.8HUMAN RESOURCE DEPARTMENT
This department assure that the organisation will have adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of the enterprise and
which provide satisfaction to individuals involved.Its function is to develop an organizational
culture where superiors, subordinates relations, team work and collaboration among different
sub units must be strong and contribute to organizational, health, dynamism and employees
pride.
HR Policy
The basic principles of V-Guard human resource policies include:
1. Recruitment based solely on merit by following well-defined and systematic selection
procedures without discrimination.
2. Sustain motivated and quality work force through appropriate and fair performance
evaluation, reward and recognition systems.
51

52. 3. Identify training needs within the organization and design and implement those need
based training programmes resulting in continuous up gradation of knowledge, skill and
attitudes of the employees.
4. Maintain a quality human resource management system plan, design, and train, equip and
motivate the department staff to meet this standard of expectation.
Table 3.7 Statutory and Non statutory benefits
STATUTORY
•
Provident fund
•
NON STATUTORY
Employee State Insurance
• Reimbursement of travelling expenses
• Leave travel allowance
• Medical reimbursement
•
Employees Deposit Linked Insurance
•
Service Gratuity
•
Labour Welfare Fund
• Personal accident insurance and mediclaim
insurance
• Performance linked bonus
• Reimbursement of telephone/mobile rent
•
Bonus
• 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 /Wonderla passes
52

53. •
Discount offer for V-Guard products
•
Suggestion awards
•
Reimbursement of credit card renewal fee
•
Best Article Award (V and We)
•
Contribution for employee‘s marriage
•Performance linked incentive scheme
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. 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.
53

54. TRAINING
V-Guard human resource department believes that quality is the hallmark of any successful
venture. Quality training and development of human resource is realized through Identifying
training needs within the organization and designing and implementing those need based
training programs to bring about continuous up gradation of knowledge, skill and employee
attitudes.
The following brief highlights V-Guard‘s training methodology for the comprehensive
development of its employees.
Training plan
Companies success in today's free market economy, only because their employees perform to
their fullest potential .alive to this home trust, V-Guard draws up on annual training calendar
highlighting the training activities for the year It also includes detailed discussions
with the faculty to decide on the contest of the training programs guard's training plan
includes
technical/functional
programs (mechanical, electrical, finance related and
behavioural programs etc) ,covering a wide cross-selection of employees, as follows:
•A week long induction program for fresher‘s.
•Development of top performer through leadership development programsaimed at bringing
up future leaders .
•Development
of managerial staff through intensive management development programs
tailor made for them providing exposure to holisticunderstanding of the business,
strategic planning, customer relationship,enhancing shareholder value, and financial
management.
•Sustained effort in training has led to creation of highly skilled andmotivational employees
ready to take on higher roles and responsibilities in the company.
54

55. Performance appraisal
The first step towards carrying out performance appraisal at V-Guard is the evaluation
of personal skills for the tasks assigned to an employee during the period of appraisal
.To evaluate the performance ,different criteria like timeliness ,quality of work carried
out by the employee, customer satisfaction .peer satisfaction and business potential is
considered. The personal skill of the employees are also evaluated based on their
learning
and
analytical
ability ,communication skills, decision making, planning and
organizing skills. Each of these criteria is measured on a scale and then evaluated. A
performance appraisal system is a strong tool in the development of human resources in the
organisation. It is considered 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 thereby aiding their self-development. It is vitally
important that every individual has a clear understanding of his or her work, objectives, and
responsibilities, because performance will measure against these.
Culture
V-guard have built a culture in tandem with the vision and values of the organization that
makes v -guard,a great place to perform where members take pride in being a part of the VGuard family, are intellectually and emotionally bound with the organization, feel
passionately about their goals and are committed towards the organization's vision and values
.Complete ownership of the vision and values ensures alignment of member's personal
vision with organization's vision, thereby achieving focus in all the endeavours.
Work culture emphasizes
• Freedom to experiment
• Continuous learning and training Transparency and openness
• Quality in all aspects of work
• Reward based on performance and potential Company Policy
• All selected candidates are initially placed on probation for a period of 6
months
• On completion of probation period and upon recommendation by the head
of the department, the employee shall be absorbed and confirmed onto the rolls.
• Management cadre employees are directly appointed into the skills Benefits and Perquisites
55

56. Salary components:
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
Stores allowance
UNIQUE HR PRACTICES
• Niyuktasamaya
This
is
employer
engagement
programme
which
we
have
started
in
2010-
2011financial 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 candirectly register
their CV for any position listed on the site. Similarly allconsultants are also, required to
post their CV through this site. As a resultduplication of CV is immediately identified and not
accepted the CV thencomes data bank and for short listing /screening both the functional,
users and HR dept. .has got the rights. Once a candidate is rejected, immediatelyInformation
goes to the consultant or to the candidate. In case this is selectedfor interview then the
information goes for finalization of interview atspecified date and time. This speeds up
56

57. the whole process as it does the initialscreening of the vital parameters in terms of age,
qualification, experience etc.
Meetings with workers
Creative problems solving when it comes to employees is also v-guards forte. The company
has regular line meeting at the manufacturing lines in the factory with the workers to discuss
and solve their problems then and there. Morning meetings are also a norm at v-guard were
the whole management together with the VP's gets together to discuss the plans for the
weeks.
DEPARTMENT CHART
DIRECTOR
ADMINISTRATION
SENIOR GENERAL
MANAGER (HR)
DEPUTY GENERAL
MANAGER (HR)
GENERAL MANAGER
ADMINISTRATION
DEPUTY
MANAGER(HR)
SENIOR
OFFICER
ASSISTANT
MANAGER
(ADMINISTRA
TION)
ASSISTANT
MANAGER
(CIVIL)
OFFICER
SENIOR
EXECUTIVE
EXECUTIVES
Fig 3.10 Human resource department
57

58. 3.2.9ELECTRONICS AND NEW PROJECTS DEPARTMENT
This department consist of two segments namely Research and development
and Production divisions.
RESEARCH AND DEVELOPMENT
The ingenuity of the R&D team play a pivotal role in v- guards persistent quest for
innovation.A confluence of design and technological functions, the team relentlessly works
towards creating cutting-edge products. The strength of V- Guard emanates from its dynamic
R&D that painstakingly tests and refines product designs.R&D labs at Cochin and
Coimbatore explore and reinvent existing product technology 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 anchor the Coimbatore R&D outfit. There are 22
employees under this division.
Functions:
1. Facilitate innovation in product.
2. Product development as per market requirement.
3. Improvement, modification, replacement of products
4. Supporting customer service department in terms of technical support.
58

59. DEPARTMENT CHART
R&D
VICE PRESIDENT
MANAGER-STABILIZER
SR.MANAGER UPS
CHIEF OFFICER
CHIEF OFFICER
SR. ENGINEER
ENGR.
SR. ENGINEER
ENGR.
ENGR.
GENERAL
MANAGER
ENGR.
ENGR.
ENGR
.
POWER
ELECTRONIC
S
ENGR.
ENGR.
Fig 3.11 Research and Development
PRODUCTION
V-Guards products are manufactured using the latest technology in up-to-the-minute
manufacturing units,under stringent quality control measures, to ensure unmatched quality
and performance.There are 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 Paul‘s
systems .They produce 1.5lakh stabilizer a month. V guard has
about 62 factories in all over India.
59

60. DEPARTMENT CHART
PRODUCTION
PRODUCT
COSTING
MANAGER
(PRODUCTION)
QUALITY
CONTROL
LAB
CHIEF OFFICER
MATERIAL RESOURCE
PLANNING
SR.MANAGER
(SOURCING)
CHIEF OFFICER
ENGINEERS
ONLINE
UPS
CHIEF OFFICER
ENGINEERS
Fig 3.12 Production
Manager (production) is in charge of 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.
Quality Control Lab:
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
thiscentre. 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.
Product costing: This segment deals with the costing of the product after adding the cost of
raw materials and a margin of profit.
60

61. 3.2.10FINANCE DEPARTMENT
The finance department of a business takes responsibility for organizing the financial
and accounting affairs including the preparation and presentation of appropriate accounts, and
the provision of financial information for managers.It is responsible for preparing journals,
ledgers, statements like trial balance, balance sheet, cash flow statement. It is also in charge
of the calculations of the income tax and also the payment at the right time.
The finance department had got 40 employees in the corporate office and around 65
employees outside the firm to support their activities. The finance department in V-Guard
Industries Ltd is headed by Mr. Jacob Kuruvila.
V-Guards share value in market ranges from 195 – 200 Rs. /share .V-Guard has implemented
ERP named Lakshya to make easy recording of transactions and better presenting of results
within limited time.
Functions
Managing cash transactions of the organisation.
Managing Accounts payable and Accounts receivables.
Maintaining Journal Voucher.
Remote cheque printing function.
Internal audit
Finalisation, consolidation of accounts.
Secretarial function
Tax remittance.
Scrutiny and approval of funds needed by various departments of the organization
Disbursement of wages / salaries.
V- Guard is expecting a turnover in sales from 1000 to 1350 crores in this financial year. Out
of the total turnover 65% is contributed by south Indian market in which Kerala alone
contributes 40%, thereafter Tamil Nadu and Andhra Pradesh. 35% of turnover is contributed
by northern states.
House wiring cable has the highest sales. Stabilizer‘s occupies second position in sales and
Pumps in third position.
61

62. VP & CFO
DGM
(COSTING &
APPLICATION)
DGM
(ACCOUNTS &
ADMINISTRATION)
DGM
DGM
(STATUTORY)
(SECRETARY
ACTIVITIES)
Sr. MANAGER
Sr.MANAGER
Sr.MANAGER
MANAGER
.
Sr.MANAGER
MANAGER
MANAGER
MANAGER
CHIEF OFFICER
CHIEF OFFICER
Sr. OFFICER
Sr. OFFICER
Sr. OFFICER
Sr. OFFICER
OFFICERS &
EXECUTIVES
OFFICERS &
EXECUTIVES
OFFICERS &
EXECUTIVES
OFFICERS &
EXECUTIVES
CHIEF OFFICER
CHIEF OFFICER
Fig 3.13 Finance Department
62

63. IMPORTANT RATIOS
Table 3.8 Net Profit Ratio
YEAR
Net Profit
Net Sales
Net Ratio
2007-2008
3,742.31
27,811.00
13.45
2008-2009
1,734.65
31,677.67
5.47
2009-2010
2547.26
45408.91
5.60
2010-2011
4263.67
72332.12
5.89
2011-2012
5080.10
98655.97
5.14
Table 3.9 Current ratio
YEAR
Current Asset
Current Liability
Net Ratio
2007-2008
14878.02
6514.06
2.28
2008-2009
9505.26
4633.57
2.05
2009-2010
19040.34
8244.38
2.30
2010-2011
33178.01
22178.66
1.49
2011-2012
28663.93
21420.43
1.33
63

64. CHAPTER – 4
SWOT ANALYSIS
64

65. 4.1 STRENGTHS
1. Company‘s presence in the industry for around three decades.
2. Strong dealer network.
3. Diversified client base.
4. Diversified product base enabling de-risking of the business model.
5. Outsourcingcapability.
6. Research and developmental capabilities in product design and technology.
4.2 WEAKNESSES
1. Excessive dependence on copper as it is the primary raw material for cable business
segment of V-Guard.
2. Seasonal demand for the products.
3. Company is subject to restrictive covenants in certain debt facility.
4.3 OPPORTUNITIES
1. Growing middle class consumption in India.
2. Unexploited rural market.
3. The penetration level of white goods is lower as compared to other developing
countries.
4. International consumer markets.
4.4 THREAT
1. Huge presence of unorganized market in segments which VGIL operates.
2. Volatility of raw material prices such as copper, aluminium etc.
3. Slowdown of economy affecting demand.
4. Increased competition in the product lines.
5. Adverse changes in government policies like laws to control pollution, monetary
policies etc.
65

66. CHAPTER – 5
OBSERVATIONS AND
SUGGESTIONS
66

67. 5.1 OBSERVATIONS
The company made public issue in the year 2008.
Several energy conservation measures are undertaken by the company.
Continuous efforts are made by the R & D department for reducing themanufacturing
costs.
As a result of intensive R & D, the size of the products was reducedconveniently.
Technology, which aids production, was imported in the year 2007 and2009.
Technology imported in 2007 was not fully absorbed.
39 % of the shares are held by the promoters of the company.
The competition from the unorganized sector is severe. If the company isnot able to
manage competition then it will affect severe growth.
Improper coordination among the superiors and subordinates during certain situation.
This leads to delay in certain orders, or the functioning of certain product
development programmes.
Increase marketing strategies for the promotion of air conditioners. They adopt direct
marketing strategy in order to increase sale and also providesafter sales service.
Credit facility is provided for only trusted dealers.
5.2 SUGGESTIONS
1. The rural markets have not been covered yet. The company should takenecessary steps for
the same.
2. The Company should frame up the market strategy to combat the competition from the
products in the unorganized sector.
3. The company should stock raw materials especially copper so as to avoid the continuous
pricefluctuations.
5. The company should increase its foreign exchange earnings.
6. It‘s better to establish own wholesale shops so that intermediaries can be reduced.
67

68. CHAPTER – 6
CONCLUSION
68

69. CONCLUSION
V – Guard proves to be a trusted household name due to the quality and support it offers to its
consumers. The company was able to achieve new heights year after year only because of the
understanding and coordination between the management and the staff.
V-guard has been able to develop new products as per the customer‘s perceptions and tastes
and offering consistent performance of the products. The company also has a goodwill it has
brought up by the dedicated Social welfare activities it is doing in different parts of the India.
So in a nutshell we can say that the V-Guard is ‗the name which all can trust‘. The company
is focussing on its vision for this ―let us endeavour to make V guard a trusted household
name.‖
69

70. BIBLIOGRAPHY
A. Company Documents
V-guard Prospectus
Annual Reports of V-guard
B. Internet or website
www.vguard.in
www.moneycontrol.com
70

71. 71