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A STUDY ONMARKET SHARE OF STANDARD FURUKAWA BATTERIES IN
TWIN CITIES
FOREXIDE INDUSTRIES LTD
HYDERABAD
A Report submitted to the Department of Business Administration in partial fulfillment for the award of
MASTER OF BUSINESS ADMINISTRATION
BY
R.MADHU
MBA (2005-2007)Hall-Ticket No:- 250698025
DEPARTMENT OF BUSINESS ADMINISTRATION
SESHACHALA INSTITUTE OF MANAGEMENT STUDIES
PUTTUR.
ACKNOWLEDGEMENT
I take this opportunity to thank Mr. Chandra Shekar, Area Manager EXIDE
INDUSTRIES LIMITED, Hyderabad, for giving me an opportunity to undertake a
project work in their organization.
I express my deep thanks to Mrs. SubbaRao, Senior sales officer (AP) for His
constant guidance and help at every stage of this project work.
With Regards
R.MADHU
DECLARATION
I R. Madhu, declare that this project work titled “Market Share of Standard
Furukawa Automotive batteries” it has been prepared by me for EXIDE
INDUSTRIES LIMITED. I further declare that it is my original work as a part of my
Academic course and not formed the basis for the award of any other Degree or Diploma.
Place:
Date: R.MADHU
CONTENTS
ABSTRACT
PRODUCT PROFILE 01
COMPANY PROFILE 06
INDUSTRY PROFILE 24
PURPOSE OF OBJECTIVE AND STUDY 27
RESEARCH METHODOLOGY 28
DATA ANALYSIS 31
FINDINGS 63
RECOMMENDATIONS 64
QUESTIONNAIRE 65
BIBLIOGRAPHY 68
ABSTRACT
The current Project work titled “Market Share of Standard Furukawa
Auotmotives Batteries in Twin Cities” covers the following aspects.
Product Profile, which describes the importance of Standard Furukawa products.
The Company profile, which includes the history of company and its collaborations.
Industry profile includes the story of how manufacturing of batteries started, where and
for what purpose these products are invented etc.
The analysis part includes the clear analysis of the views of interviews and is also
supported by graphs for clear understanding. Findings include the important information
or facts known during the process of data collection. Recommendations are produced
according to the findings, these includes the suggestions which will be helpful for the
organization.
PRODUCT PROFILE
The product in focus is “Standard Furukawa” which was basically a Japanese
product after few years of introducing this brand in India, Exide industries limited
acquired whole of the Standard Furukawa brand .
The Standard Furukawa range of batteries, designed in technical collaboration with the
Leading Japanese battery manufacturer- The Furukawa Battery co Ltd, combines advaced
grid alloys, improved formulations in process technology and is manufactured using
Modern assembly line machines. SF automotive batteries are available in a wide range of
Capacities in “Hard Rubber” and “polypropylene” containers to meet diverse heavy-duty
Applications. They are supplied as original equipment to a host of car, truck, tractor &
genset manufacturers in India
SF Power Box Range- For Heavy Duty Applications:
These are high performance polypropylene Batteries with unique glassfibre mat
Cushioned polyethylene envelope separator.
Special Features:
Unique glassfibre mat cushioned polyethylene envelope separator.
Thicker plates comparable to the Hard Rubber types.
Through partition inter-cell welding.
Rugged handle.
Substantial savings in weight and floor area.
High cranking power.
Ultra low maintenance characteristics.
Extremely low self-discharge.
Factory charged and wet shipped.
TS 16949 reliability at every stage of manufacturing process.
The Standard Furukawa Power Box Range batteries which is used for heavy duty
applications gives excellent life for all heavy duty non-vehicular applications like
UPS, INVERTORS and GENSETS etc. RANGE OF STANDARD FURUKAWA BATTERIES:
These batteries are designed to meet Japanese standards (JIS D5302) quality
Manufacturing systems awarded ISO9001 by RWTUV of Germany.
These batteries are strong durable polypropylene containers with heat shield leads.
The plates in these batteries are manufactured to an exclusive design using special grid
Alloys to give durability and resistance to corrosion.
The special low resistance flat separators bounded on to non-degradable glasswool
retainer mats prevent plate shedding and ensure enhanced charge –discharge life cycle .
INTIAL CHARGING DESCRIPTION :
Apply petroleum jelly on the terminal cable clamps.
Remove the filling plugs loosely place them in position.
Ensure positive and negative terminals of the battery are connected properly to the
Corresponding charger terminals to avoid reverse charging.
Continue charging at this rate approximately for 8-12 hours till the cells are
gassing freely and the voltage remains same for three hourly consecutive readings at
the top of charge terminal voltage of 16.2 volts for 12v battery .
Adjust the obtained specific gravity to the recommended final specific gravity by
replacing requisite quantity of electrolyte with distilled water in case the obtained
specific gravity is higher .
Dilute sulphuric acid of 1.400 specific gravity in case of the obtained specific gravity is lower .
Confirm specific gravity and levels of all cells are identical as per requirements.
Tighten filling plugs, wash the top of the battery with tap water and apply petroleum
jelly on the terminal cable clamps before installing the battery of the vehicle .
SPECIFIC GRAVITY: Initial filling –1.230+- 0.005 .
Gravity is fully charged condition (270 c)-1.230-1.240.
Charge duration 8-12 hours.
CAUTION:
While charging more than one battery, make sure that identical type batteries are
Charged and they are connected in series keep the charger off before connecting or Disconnecting a charger load.
While charging if Electrolyte temperature exceeds 50deg centigrade stop charging and allow battery to cool.
While charging is in progress, always keep the filling plugs in
loose condition so that gases escape freely .
Batteries expel explosive gases, keep naked flame away.
COMPANY PROFILE
INTRODUCTION TO CAR BATTERIES :
A car battery is principally used to start the engine. It is also used to filter or
stabilize .power and to provide extra power for the ignition, lighting and other
accessories when their combined load exceeds the capability of the charging
system, i.e., when the engine is idling. It also provides power to the electrical
system when the charging system is not operating.
The battery lies hidden under the bonnet and is an
essential component of the vehicle. Regular care is a must, for if it in bad shape,
the car will refuse to move. "Push-start" is a solution but cannot be carried on for
long. A well-maintained battery lasts for two years.
The Product :
The product is a maintenance-free battery, similar in design to a conventional
automotive battery, but just a heavier-duty version of the same arrangement.
Many of the components have thicker construction, and different, more durable
materials are typically used. This design is called a lead-calcium battery. The
heavier-duty parts ensure that fluid loss is kept to a minimum and that
components have a much longer life, making it a closed system.
Purchase Occasions :
The automotive battery business consists of OE (original equipment) and after-
market or replacement market segments. The OE market is around 1.2 million
units and the larger replacement market is around 5 million units per annum.
Purchase therefore occurs when the current battery ‘dies’, which is usually after a
period of approximately two years.
Target Audience Demographics :
Region: India, urban population
Occupation: Service, working professional, self-employed
Gender: Male
Religion: Insignificant
Income: 1,80,000 p.a. upwards
Social class: Upper Middle and upwards
Family life cycle: Middle aged, married with children
Behavioral :
Occasions: When previous battery ‘dies’/breaks down
User status: First time user
Loyalty status: Not defined
Readiness Stage: Uninformed
Attitude toward product: Inquisitive
Attitude toward brand: Trusting.
Competition:
Exide is a market leader in the original equipment (OE) automotive batteries
segment with a market share of over 85% in the OE automotive batteries segment
and more than 25% in the replacement market (more than 60% amongst the
organized players). The unorganized players have a bigger role in the
replacement market, with a market share of above 55%.
For the rest 15 per cent of the pie, there’s a clamour
between players like Prestolite, Volta, AC Delco, Delkor & Amaron and the mid-
range Panasonic batteries and high-end Varta batteries. Other players in the
organized market are Tudor and Amco. The other zero-maintenance batteries,
apart from Amaron such as the German Varta (OE supplier to Mercedes and
BMW in Europe), are at much higher price points. Other competitors are Amara
Raja ABL’s Power Breed; Middle East Battery Company’s JV with Delphi;
Dynex; EL; Furukawa; Standard Furukawa; Index; Power Safe; InStart;
and Sparco Batteries.
Tone and Manner for Advertisement :
If you want to focus on a practical advantage, don't be shy. Say it in the tagline.
Create visuals that bring it to life and show it. Use testimonials or other evidence
to prove it. And guarantee it. You can be clever or direct. But communicate the
advantage clearly, for instance - The last Battery your car will ever need.
The tone can be authoritative and educational like the image of an elder brother
taking care of you as Eveready takes care of your car
OR
It could be humorous while getting the message across; as such advertising in the
category has shown to have positive results with good brand recall.
Products:
Lead Acid Storage Batteries for Automotives, Motorcycles, Gensets, Trawlers,
VRLA,
Industrial Standby, Motive Power and Submarine applications.
Factories:
Exide has 9 Factories spread across India. Together the annual production
capacity is of over 7.2 million automobile batteries(including motorcycle
batteries) and over 360 million AH of Industrial Power.
Quality:
Exide is certified to ISO9001, QS9000 and ISO14001 Quality Systems by
RWTUV, Germany.
OEM Supplier to:
Honda, Fiat, Toyota, Hyundai, John Deere, Telco, Suzuki, Mazda, GM, Leyland,
Caterpillar, Mitsubishi, Piaggio. Only manufacturer of Submarine Battery in India.
R&D:
Exide has a Govt. approved sophisticated R&D Centre manned by hiqhly
qualified personnels. Exide R&D owns 11 Patents for Batery Development
Technology. This member's information has NOT been authenticated or verified
by Alibaba or any third party. Only Alibaba Gold Suppliers and TrustPass
members have completed an authentication and verification procedure conducted
by third-party credit agencies.
Exide Industries hold:
HELPED by the robust demand from the automobile segment, battery major
exide Industries recorded a 28 per cent growth in turnover for the quarter ended
December 2004. As the leader in the original equipment market of the
automobile battery segment, the company benefited from the growth in the
automobile production seen in the recent quarters.
The company also has a presence in the industrial
battery market, which accounts for about 40 per cent of revenues. The enhanced
activity levels in telecom and power sectors have resulted in increased demand
for industrial batteries as well. The profitability was under pressure owing to
spiralling input cost. The price of lead, the key raw material, rose by over 40 per
cent during the period under consideration. Lead accounts for about 75 per cent
of the total cost of production and raw material cost over 50 per cent of
revenues. Owing to a sharp spurt in lead price, the operating profit margin
dropped to 13 per cent from 19 per cent in the quarter ended December 2003. The
competitive environment and the growing demand from the original equipment
market have limited the scope for revising battery prices to completely
accommodate changes in input cost. The soft interest rate regime and the low
gearing have given the company savings in interest cost. The company's
performance depends on the trend in the price of lead.
Though sustaining volume
growth would not be difficult, the fluctuation in the cost of inputs would be the
key determinant of growth in bottom line. The increased automobile production in
the last couple of years would translate into enhanced demand from the lucrative
replacement market. The efforts to gain access to the rural market would also drive
demand from the replacement market. The implementation of the more stringent
norms pertaining to recycling of used batteries is another positive trigger. This is
likely to dilute the presence of unorganized sector players in the replacement
market.
The company is also implementing capacity expansion projects. This, along with
The location of the unit from Aurangabad (Maharasthra) to Bawal (Haryana),
would have long-term positive implications.
On the flip side, the recent decision to permit duty-free imports of sealed
maintenance free batteries could expose domestic players to the threat from
cheaper imports. Besides, the removal of anti-dumping duty on lead acid batteries
could also affect the prospects of domestic players.
The government had imposed an anti-dumping duty a few years ago on
complaints from the domestic companies about the dumping of cheaper imported
batteries.
Though Exide has strong brand equity and products positioned across various
price points, it would remain vulnerable to the threat from imports, especially in
the replacement market segment. There would, however, be a marginal impact in
the original equipment market due to relaxed norms for imports.
From an investment
perspective, shareholders can retain their holdings Fresh exposures
may be considered on evidence of softening of lead price or sustained buoyancy
in automobile production. The key risk is the prospective threat from cheaper
imports.
Besides, any further rise in lead price would also have an impact on profitability.
Leaders in Power Storage Solutions:
Exide Industries Limited, India's flagship of the storage battery industry- is also
the largest Power Storage Solutions company in South and South East Asia. It
manufactures the widest range of storage batteries in the world from 2.5Ah to
20,600Ah capacity, to cover the broadest spectrum of applications. Capital Rs.712 Million(USD$15.8 Million)
Turnover Rs. 12182 Million in 2003-04(USD$271 Million)
Employees Over 4000
Market Share 33% Market Share in overall domestic Auto Battery Market and
90% Market Share in Automotive OE. industrial battery market share50%.
Company History:
1916: Chloride Electrical Storage Co. (CESCO) UK set up trading operations in
India as an import house
1946: First factory set up in Shamnagar, West Bengal
1969: Second Factory, Chinchwad, Pune
1976:R&D Centre established in Kolkata 1981 Third factory, Haldia, West
Bengal
1992 : First Submarine batteries delivered to the Indian Navy
1993 :Technical collaboration with Shin Kobe Electric Machinery Co. Ltd. of
Japan,
1994 : subsidiary of the Hitachi Group
1995 :Chloride Industries Ltd renamed Exide Industries Ltd.
1996 :Fourth factory set up at Hosur, Tamil Nadu
1997 :Exide acquires the operations of Standard Batteries Ltd & adds four more
1998 :factories,
1999 : taking the total to eight.
2000 :Acquisition of 10% stake in Chloride Batteries South East Asia(CBSEA),
2001 :Singapore & 49% in Associated battery Manufacturers Ceylon|(ABMEL), Sri
2002 :Lanka.Battery charging commenced at Bawal, Haryana to cater to OEM IT
2003 :supplies
2004 :Launch of exidetraction.com, an e-commerce website for international
2005 :customers of
2006 :traction batteries.
2007 :Became second largest 2-wheeler battery company in the world. Launch of
2008 :Achieve 100 PPM “ at Hosur Plant
2003: Commissioning of Eighth Plant at Bawal, Haryana
New JV company in UK- ESPEX Batteries Ltd
Strategic Alliance with IBG in Netherlands for Marketing in Europe
2004 Launch of exidereachout.com, a CRM initiative for Exide Trade Manufacturing Capacities:
Factories (Established) Capacity
K Units M Ah
Auto MC INDL
Shamnagar (1946) 600 - 140
Chinchwad (1969) 1300 2400 -
Haldia (1981) 1000 - 160
Hosur (1997) 700 - 270
Taloja (1998)* 750 600 -
Kanjurmarg (1998)* - - 15
Guindy (1998)* - - 15
Bawal (2003) - 1200 -
Total 4500 4800 600 Multi location hedge supply risks to customers - delivery confidence
Strategically located near markets
Logistically efficient, considering 70% raw materials imported
Proximity to ports - cost efficiency in exports Marketing Network
Offices -26
Exide Care Centers -100
Exide Power Centers -25
Dealers
SLI -3423
MC -2469
Marketing Staff -291
EIL is the market leader in the organized sector in both the automotive and
industrial segments. 'EXIDE' and 'SF(Standard Furukawa)', the flagship brands of
the Company, IS also the leading battery brands in the country.
The Company has the dominant share in the original equipment segment for
automobiles. It powers almost all the cars which have been introduced in India
such as Honda City, Honda Accord, Hyundai Santro, Hyundai Accent, Hyundai
Sonata, Suzuki Baleno and Suzuki Wagon R, Mitsubishi Lancer, Tata Indica, Tata
Indigo, Fiat Palio, Opel Corsa, Toyota Qualis, Mahindra Scorpio and Mahindra
Bolero. EIL also has the dominant share in the organised sector replacement
segment for Automobile batteries.
The Industrial applications of EIL batteries extend
to Power, Telecom, Motive Power, Mining, Railways, Emergency Lighting and
Non-Conventional Energy Sources. The Company is the largest manufacturer of
caplamp batteries in the world. It is also one of the five companies in the world
which has the capability to make submarine batteries for both Russian and
German types.
EIL is the first battery company in the country to introduce
polypropylene case batteries and maintenance-free batteries. It is also the pioneer
of several new technologies like flat-plate, and tubular plate batteries.
By virtue of being the largest Sealed Maintenance Free(SMF) batteries in Asia
outside Japan, the Company has earned the status of a global supplier to American
Power Conversion, the largest UPS manufacturer in the world. Besides, it also
caters to other multinationals operating within the country i.e. Siemens and
Ericsson and other major players as TVSE, HTL, Tata Liebert, Numeric and ITI.
The Company has always believed in working closely with the Government in
developing and sustaining applications which are best suited to the country's
national interest. It has tried to do its bit for the country by providing batteries
specially tailored for Bofors guns, armoured vehicles and tanks, wireless
transmission, solar applications in remote areas and devising anti pollution masks
among others. The country's first battery powered electric boat, designed and
developed by EIL is an extension of its social initiatives and it contributes
towards building an eco-friendly and pollution free nation.
Exide was the first to
introduce batteries for electric vehicles, traction batteries for electric wheelchairs,
flat-plate batteries for golf carts and batteries for automated guided vehicles.
In an agrarian economy such as India, the farm sector is one which cannot be
ignored. Accordingly, Exide's avowed objective was to cater to the tractor
segment as a thrust area. Its major initiative, Project Kissan, has made steady
inroads into the rural regions, particularly those of the North and West. This has
helped to spread consciousness among the rural populace on the need to use eco
friendly and technologically superior batteries.
Exide has made extensive use of Kissan Melas and Dhabas to promote this
scheme and has introduced "Jai Kissan" battery to cater to the replacement market
in this segment. In furthering its social commitment, EIL has planned to adopt
select villages to improve social welfare.
The Company exports batteries which have captured niches in South East Asian
Vision Statement :
"To win our customers, stakeholders and employees by transferring quality into a
Performance oriented business which will secure market leadership and profitable
growth through effective fulfillment of customers' needs. " World Class Manufacturing :
Exide has eight manufacturing plants producing world class products. Exide
factories are located strategically around the country to provide logistic support
for its production of over five million batteries per annum.Each of these factories
are equipped with state-of-the-art equipment sourced from the best battery making
machinery manufacturers in the world. Exide, due to its strong roots with the
erstwhile Chloride group, has access to the best manufacturing practices in the
Acid Batteries
A technology tie-up with Shin-Kobe, Japan the makers of world
class Hitachi VRLA batteries has given Exide the technological edge in
maintenance free batteries. Other strategic technology agreements with Furukawa,
Japan and Oldham, U.K. has given Exide the competitive edge in providing the
most reliable solutions for packaged power.
Collaborations :
Shin-Kobe Electric Machinery Co. Ltd.,Hitachi Group, Japan
For Automotive and VRLA Batteries
The Furukawa Battery Co. Ltd.,Japan
For Automotive Batteries at Taloja
Board of Directors :
Mr. S.B. Ganguly Executive Chairman & Chief Executive Officer
Mr. R.B. Raheja Vice Chairman & Non-Executive Director
Mr. T.V. Ramanathan Managing Director & Chief Operating Officer
Mr. S. Chand Director-Corporate Affairs
Mr. P.K. Kataky Director-Automotive
Mr. G. Chatterjee Director-Industrial
Dr. S.K. Mittal Director (R&D)
Mr. R.G. Kapadia Non-Executive Director
Mr. H.M. Kothari Non-Executive Director
Mr. B. Mitter Non-Executive Director
Mr. S.N. Mookherjee Non-Executive Director
Mr. A.H. Parpia Non-Executive Director
Mr. S.B. Raheja (Alternate D.S.Parekh) Non-Executive Director
Mr. W. Wong Non-Executive Director
Mr. V. Aggarwal Non-Executive Director Compliance Officer
. Barun Das Divisional Head - Legal & Company Secretary
Executive Commitee
Mr. S.B. Ganguly
Mr. T.V. Ramanathan
Mr. S. Chand
Mr. P.K. Kataky
Mr. G. Chatterjee
Dr. S.K. Mittal
Mr. Barun Das
Mr. Monodip Chaudhuri
Mr. R.P. Ray
Research and Development:
In the era of intense competition, technological changes are putting extreme
pressure on Companies to innovate or decline.Therefore, contribution of
innovation & technology is becoming a key success fator in many of the
organizations.
Exide recognizes the importance of technology & innovations. In
order to maintain technological leadership, Exide R&D have been actively
developing differentiated battery technologies for tropical countries. The Exide
R&D has been recognized by the Department of Scientific & Industrial Research,
Ministry of Science & Technology, Government of India since April 1977.
R&D work is carried out on various facets of lead-acid battery technology, which
include development of new products for applications such as Automotive,
Motorcycle, VRLA, Telecom, UPS, Railways, Defense, etc. primarily to make the
product range internationally competitive. In addition, the R&D is engaged in
projects embracing process technology aimed at improving the product quality &
consistency, production efficiency and material utilization. Furthermore, R&D
program includes improvement and indigenization of materials such as metals,
alloys, plastics, etc. R&D emphasis is on studying and improving the
environmental aspects associate with the manufacturing process.
Functional Areas:
All the above specific areas are well administered by a strong group of human
assets. The qualified R&D personnel are Ph.D.'s in Engineering / Applied
Science, Post-Graduate / Graduate in Engineering / Science, MBA's and Diploma
in Engineering with broad spectrum of experience and they work in the following
functional areas:
Battery Design & Development :
Process Development
Tool Design & Development
Alloy Development
Development of Plastic Components
Hard Rubber / Soft Rubber Components Development
Analytical Services
Battery Testing & Quality Assurance
Environmental Health Monitoring
Patents:
In addition to several innovative patents granted in India, quite a few International
Patents have already been published with details as under:
Details Published No. Published Date Place Range of Products Covered
Design Patent jointly with Shin-Kobe 1053740 10 November1999 Japan 75D31R
MF95D31R MF
Design Patent Design Regn. No. 1163467 20 January 2003 Japan Leak Resistant
Design 38B20L/R MF
Patent for leak resistant automotive batteries US2003/0017381 A1 23 January
2003 USA Eternity Range (ET40, ET40L) ATB Range (MF70Z, MF50Z,
DIN55MF) DIN-MF Range (DIN66MF, DIN74MF) CV Range (MHD600,
MHD800)
P2003-45398A 14 February 2003 Japan
EP1 280 214 A2 29 January 2003 Europe
Patent for leak retardant automotive batteries US2003/0013006 A1 16 January
2003 USA ATB Range (MFS40, MF40SV, DIN44MF, 55B24LMF) MF Range
for Premium Cars (55D23LMF, 70D23LMF, 75D23LMF)
P2003-31191A 31 January 2003 Japan
EP1 278 254 A1 22 January 2003 Europe
Technology for Tropical Countries:
In tropical countries like India, automotive battery life is adversely affected by the
following conditions:
High ambient temperature
High Vehicle Vibration due to rough roads
Outdated charging system particularly on old vehicles
Sluggish vehicle movement in congested city drives
Frequent start - stop
Weak infrastructure for maintenance
Inferior quality of water for topping up.
Exide R&D Centre, therefore, has a special focus on developing the desired
automotive battery characteristics for India / Tropical conditions which include
the following:
High temperature endurance
Recovery from deep discharge
Resistance to vibration & bumps
High reserve capacity
Good cranking ability at low as well as normal temperature
Heavy load endurance
Resistance to overcharge
Low water loss
Low self discharge
Spill proof / Leak resistant
State-of-charge indication
Spark resistant
Some of the major development work done at the R&D Centre and viewed at a
glance is as follows:
Japanese range of automotive batteries
Japanese range of Motorcycle batteries
Jai Kisan range of Tractor batteries
MHD range of automotive batteries as per Indian Standards
DIN range of automotive batteries suited to vehicles of European origin
Valve Regulated Lead Acid (VRLA) batteries for Telecom application
Valve Regulated Lead Acid (VRLA) batteries for Indian Railways
Valve Regulated Lead Acid (VRLA) batteries for Inverter application
Motive Power Batteries for Fork-lift Trucks § Submarine battery for Indian Navy
High energy density battery for Electric Vehicles § Plante batteries for Power
stations New products have been developed for the domestic and export markets
such as Jai Kisan range of batteries for tractors. Furthermore, long-life,
maintenance-free batteries for cars have also been developed which are presently
being marketed under the brand name Exide Eternity. Also a new heavy duty,
MHD Range of batteries have been developed and introduced for the entire
commercial range of vehicles. Batteries were also developed for CNG/LPG
powered three-wheelers and golf carts.
A range of batteries for Industrial application including new batteries for
Telecom, Solar, Traction and small VRLA for UPS system was also developed.
Major OE customers for automotive batteries include Toyota, Hyundai, Honda,
M&M, Maruti, GMI, Tata Motor, etc. etc.
Major OE customers for motorcycle / three-wheeler batteries include Bajaj Auto,
Hero Honda, LML, Kinetic Motor, Yamaha, etc. etc.
Major OE customers for industrial batteries include DOT, RDSO, NPC, NTPC,
APC, etc. etc.
Infrastructure / Laboratories:
Exide R&D Centre is also well equipped with a Tool-Room, CAD facilities,
material testing and laboratories having the modern equipment for testing of the
raw materials and components used for manufacture of batteries. These include
optical emission Spectrometer, Particle Size Analyzer, Porosemeter, Image
Analyzer Workstation, Profile Projector, Universal Tensile testing machine, etc.
etc.
Product Testing Facilities:
Product Testing Department acts as the nodal point for product validation through
intra R&D linkage with Automotive Design Department for Automotive,
Motorcycle & EV batteries Industrial Design Department for VRLA, Plante
(Flooded), Tubular (Flooded), Submarine, Solar, Minars' Cap Lamp, etc.
Process Development Department for change or improvement in manufacturing
processes
MRR for ISO and QS Quality Standards:
Product Testing Department also interacts with all the manufacturing units i.e.
Shamnagar, Chinchwad, Haldia, Hosur, Taloja, Ahmednagar & Guindy for testing
and quality assurance of their products from time to time and as per QS
Standards.
In order to achieve Business Generation through Type Approval Tests of newly
developed products, Product Testing Department keeps liaison with Industrial &
Automotive Marketing Department and carry out Type Approval Tests which is
usually witnessed by the customer / ultimate user at R&D Test House.
R&D Test House is
equipped with state-of-the art test facilities which are mainly
Microprocessor based computer controlled charge - discharge test system
Environmental test machines e.g. Vibration, Controlled Temperature & Humidity
Chambers, etc.
High Current Discharge Circuits for Automotive & Industrial
Some special testing machines e.g. High Voltage Tester, Spark Tester, Short
Circuit Tester, etc.
In the era of intense competition, technological changes are putting extreme pressure on
Companies to innovate or decline.Therefore, contribution of innovation & technology is
becoming a key success factor in many of the organizations.
Exide recognizes the importance of technology & innovations. In order to maintain
technological leadership, Exide R&D have been actively developing differentiated
battery technologies for tropical countries. The Exide R&D has been recognized by the
Department of Scientific & Industrial Research, Ministry of Science & Technology,
Government of India since April 1977.
R&D work is carried out on various facets of lead-acid battery technology, which include development of new products for applications such as
Automotive, Motorcycle, VRLA, Telecom, UPS, Railways, Defense, etc. primarily to
make the product range internationally competitive. In addition, the R&D is engaged in
projects embracing process technology aimed at improving the product quality &
consistency, production efficiency and material utilization. Furthermore, R&D program
includes improvement and indigenization of materials such as metals, alloys, plastics, etc.
R&D emphasis is on studying and improving the environmental aspects associate with
the manufacturing process.
Functional Areas:
All the above specific areas are well administered by a strong group of human assets. The
qualified R&D personnel are Ph.D.'s in Engineering / Applied Science, Post-Graduate /
Graduate in Engineering / Science, MBA's and Diploma in Engineering with broad
spectrum of experience and they work in the following functional areas:
Battery Design & Development
Process Development
Tool Design & Development
Alloy Development
Development of Plastic Components
Hard Rubber / Soft Rubber Components Development
Analytical Services
Battery Testing & Quality Assurance
Environmental Health Monitoring
Exide , a name coined out of Excellent Oxide –a product ingredient, has
through its continuous commitment and customer-need focus, emerged as one of the most
powerful brands in existence today
PURPOSE AND OBJECTIVE OF STUDY
The objective of the survey is to know the market share of standard
furukawa automotive batteries in twin cities and to rate the batteries in terms of sales,
services.To know the complaints received by the mechanics. To get suggestions and other
information from the mechanics in order to increase the sales by providing good
services.To know the opinion of the standard furukawa batteries and to compare with
other brands of batteries in terms of performance, price, after sales services, package,
promotional activities and other related information.
This is also done to know the features consumers will consider uring
the purchase of batteries and to know the brand suggestions given by the mechanics to
their customers , to know the role of advertisement in drawing the attention of customer
and to know the effective medium of communication such as T.V, radio, news paper ,
magazines, shop paintings and also to know the strengths and Weakness of standard
furukawa batteries and to get good suggestions in order to boost the sales of standard
urukawa batteries.
RESEARCH METHODOLOGY AND DATA COLLECTION
Research plan:
To achieve the objectives, a questionnaire was prepared consisting of questions covering all aspects for which information was to be derived.
1. DATA SOURCE # Primary data
2. RESEARCH INSTRUMENT # Questionnaire
3. RESEARCH APPROACH # Survey
4. SAMPLING PLAN #
a) Sampling unit : Peopleb) Sampling Size : 100c) Sampling Procedure : Random Sampling
5. CONTACT METHOD # Personal
DATA COLLECTION PRIMARY DATA: Primary data collected by the survey method using questionnaires. This questionnaire was of structured, non-disguised form. These questionnaires were given to the respondents to be filled by them as such personal interviews as conducted. SECONDARY DATA: Secondary data was collected from the company sources like journals and other periodicals published by the company. SAMPLING METHODS: Random Sampling was done to eliminate any bias to the greatest extent possible. Thus each respond had and equal chance of being selected. This is done probability Sampling provides an objective measure of the reliability of the sample estimate. SAMPLE SIZE: fixed sample size of 100.This is chosen in such a way to achieve some type of balance between sample reliability and sample cost. SAMPLE AREA: The survey was carried out in the twin cities.
brands No. of respondent’s percentage
Exide,Amron
Exide ,Amron,Amco
Exide,Panasonic
Exide,SF,Amco
SF, Amron,prestolite
All
Exide,SF,Amron
30
29
6
3
10
2
20
30%
29%
6%
3%
10%
2%
20%
Total 100 100%
1. Different types of brands dealing with:
Respondents dealing with Exide and Amron are 30%
Respondents dealing with Exide , Amron and Amco are 29%
Respondents dealing with Exide and Panasonic are 6%
Respondents dealing with SF, Amron and prestolite are 10%
Respondents dealing with all brands are 2%.
Respondents dealing with Exide, SF and Amron are 20%
2.
Demand for automotive batteries:
Demand No. of respondent’s percentage
High
Medium
Low
60
40
0
60%
40%
0%
Total 100 100%
Respondents viewed high demand for automotive batteries are 60%
Respondents viewed medium demand for automotive batteries are 40%
Respondents viewed low demand for automotive batteries are 0%
3. Features consumer will consider during the purchase of the batteries:
Respondents viewed performance and brand name during the purchase of batteries are 30%.
Respondent’s viewed performance during the purchase of batteries is 35%.
Respondents viewed price and brand name during the purchase of batteries are 25%.
Respondents viewed package and performance during the purchase of batteries are 10%.
Features No. of respondent’s percentagePerformance and brand name
Price and performance
Price and brand name
Package and performance
30
35
25
10
30%
35%
25%
10%
Total 100 100%
3. Features consumer will consider during the purchase of the batteries:
Respondents viewed performance and brand name during the purchase of batteries are 30%.
Respondent’s viewed performance during the purchase of batteries is 35%.
Respondents viewed price and brand name during the purchase of batteries are 25%.
Respondents viewed package and performance during the purchase of batteries are 10%.
Features No. of respondent’s percentagePerformance and brand name
Price and performance
Price and brand name
Package and performance
30
35
25
10
30%
35%
25%
10%
Total 100 100%
3. Features consumer will consider during the purchase of the batteries:
Respondents viewed performance and brand name during the purchase of batteries are 30%.
Respondent’s viewed performance during the purchase of batteries is 35%.
Respondents viewed price and brand name during the purchase of batteries are 25%.
Respondents viewed package and performance during the purchase of batteries are 10%.
Features No. of respondent’s percentagePerformance and brand name
Price and performance
Price and brand name
Package and performance
30
35
25
10
30%
35%
25%
10%
Total 100 100%
10. Complaint received from the customers of SF: complaints No of respondents percentage
Yes
No
5
20
20%
80%
Total 25 100%
No of respondents received complaints are 20
No of respondents did not received are 5
9. Average sales at the counter:
No of batteries sold per month by the respondents :Exide---410
SF------336
Amron—308
Prestolite---10
Amco---34
Panasonic—25
Brand name No of batteries
Exide
SF
Amron
Prestolite
Amco
panasonic
410
336
308
10
34
25
Total 1123
FINDINGS
Advertisements of Standard Furukawa batteries are not up to mark.
There are no promotional activities of this brand.
After sales services are not up to the mark at several areas.
There is no relationship with garage people.
Brand awareness is lacking in some areas.
There is no quick response after receiving the complaints.
Battery mobile service is not satisfactory.
SF batteries stands third in ranking exide ranked third and amron ranked second.
While purchasing batteries consumers will consider mainly performance, brand name,
and price
As far as sales are concerned exide ranks first,SF second, amron third etc.
Only few complaints are received from the customers of SF
Most of the people who where interviewed advised advertisement for increasing sales.
The price of SF batteries is competitive and low.
As far as advertisement is concerned T.V, news papers, shop displays and shop paintings,
play major role in drawing the attention of the consumers.
According to the garage people automotive batteries has got high demand as there is an
increase in the purchases of cars
Most of the mechanics suggest their customer to go for a particular brand.
Exide, amron and amco are the brands which are dealt by many of the garage people.
Packaging of SF is normal when compared to other brands.
As far as promotional activities are concerned SF is poor when compared to amron, amco.
Performance of SF batteries is satisfactory
RECOMMENDATIONS
1. Provide battery mobile services effectively to gain customer satisfaction.
2. Provide better after sales services then the competitors, with out delay after
receiving complaints
3. Letting the stock of batteries in the MASS and other big garages by providing
them the batteries at discounted prices will help to increase the sales.
4. More advertisement is needed for increasing the sales.
5. Advertisement in TV’s, news papers and shop display’s plays important role in drawing the attention of consumers.
6. Should have a good rapport with garage people apart from dealers and retailers.
7. Dealer’s margin and retailer’s margin should be more then the margin provided
by the competitors so that they can provide commissions to the mechanics.
8. Take necessary action towards the batteries which are damaged within the warranty
period, without delay.
9. Need to invest more on promotional activities as there is more potential for
automotive batteries.
THE MARKET SHARE OF STANDARD FURUKAWA AUTOMOTIVE BATTERIES IN TWIN CITIES
Name:
Address:
1. What are the different types of brands you are dealing with?a)Exide b)Standard furukawa c)Amaron d)Prestolitee)Amco f)Panasonic
2. Demand for Automotive batteries?
a)High b)Mediumc)Low
3. What are the features consumers will consider during the purchase of batteries?
a) Price b) Performancec) Package d) Brand name
4. Rank the different automotive batteries in terms of sales?
a) Exide ----- b) Standard Furukawa ----- c)Amaron ----- d)Prestolite -----e)Amco ----- f)Panasonic -----
5. Do you suggest any brand to your customer?
a) Yes b) No
6. Which brand do you suggest to your customer?
a)Exide b) Standard Furukawac)Amaron ----- d)Prestolite -----e)Amco ----- f)Panasonic -----
7. Your Opinion of Standard Furukawa batteries?
i)Performance:-
a) Satisfied b)Unsatisfied
ii)Price:-
a)High b)Lowc)Competitive
iii) After sales service:-
a) Good b) Averagec) Poor
iv)Package:-
a)Attractive b)Normalc) Unattractive
v) Promotional Activities:-
a)Good b)Averagec) Poor
8. Do you think advertising plays an important role in drawing attention of the customers?
a) Yes b) No
i) Which media will draw more attention of customers :
a)Electronic Media:
i)TV ii)Radio
b)Print Media:
i) Newspapers ii)Magazines c) Shop display’s: i) Display board ii) Shop painting
iii) Hoardings
9. What is the average sale at your counter?
a)Exide b) Standard Furukawac)Amaron ----- d)Prestolite -----e)Amco ----- f)Panasonic -----
10. Have you received any complaint from the customer after purchasing the batteries?
a) Yes b) No
If Yes
i)Furnish some of the complaints you have faced
a)
b)
c)
11. Please furnish the following:
a)Strength of Standard Furukawa
b)Weakness of Standard Furukawa
12. Any suggestions which help in boosting the sales of Standard Furukawa?
BIBLOGRAPHY
WEB SITES:
WWW. EXIDE INDUSTRIES.COM
WWW. GOOGLE.COM
WWW. STANDARD FURUKAWA.COM
BOOKS:
MARKETING RESEARCH(GC BERRY)
STANDARD FURUKAWA BROUCHERS