Introduction Exide Industries Ltd is the country’s largest manufacturer of lead acid storage batteries and power storage solutions provider. With seven international standard factories spread across the nation, the company offers one of the widest ranges of batteries for every conceivable application in industrial as well as automotive segments. Exide also has a manufacturing subsidiary in Sri Lanka and does business globally through its subsidiaries and affiliates in South-East Asia, Australia and Europe. Exide’s products are sold globally, particularly in developed markets like Australia, Japan and Western Europe, under its own brand name. Exide’s strong brand pull, established in India for close to hundred years, is supplemented by its nationwide dealer network and a very strong R&D center. With the help of two of its Japanese collaborators – Shin Kobe and Furukawa - Exide has consistently remained at the cutting edge of international battery technology and introduced various pioneering products and power storage solutions in the Indian and global markets. Exide’s products find application in automotive, two- wheelers, inverters, UPS, power, telecom, railways and submarines, among others. Exide is also present in the non-conventional energy business where it designs and integrates solar and wind power solutions.
Transcript
Introduction
Exide Industries Ltd is the country’s largest manufacturer of lead acid storage batteries and power storage solutions provider. With seven international standard factories spread across the nation, the company offers one of the widest ranges of batteries for every conceivable application in industrial as well as automotive segments. Exide also has a manufacturing subsidiary in Sri Lanka and does business globally through its subsidiaries and affiliates in South-East Asia, Australia and Europe. Exide’s products are sold globally, particularly in developed markets like Australia, Japan and Western Europe, under its own brand name.
Exide’s strong brand pull, established in India for close to hundred years, is supplemented by its nationwide dealer network and a very strong R&D center. With the help of two of its Japanese collaborators – Shin Kobe and Furukawa - Exide has consistently remained at the cutting edge of international battery technology and introduced various pioneering products and power storage solutions in the Indian and global markets.
Exide’s products find application in automotive, two-wheelers, inverters, UPS, power, telecom, railways and submarines, among others. Exide is also present in the non-conventional energy business where it designs and integrates solar and wind power solutions.
Exide Technologies, with operations in 80 countries and fiscal 2009 net sales of approximately $3.3 billion, is one of the world's largest producers, distributors and recyclers of lead-acid batteries. The Company's four global business divisions – Industrial Energy Americas, Industrial Energy Europe, Transportation Americas, and Transportation Europe – provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications. In addition, Exide’s Asia Pacific/ Rest of World operations contribute sizeable revenues to the Company, divided evenly between the Industrial Energy and Transportation products and services.
Exide Technologies is a global business organized to serve customers’ complex stored energy systems needs. Key strengths of the Company are that its products and services span global markets and geographic borders, melding two significant bases of experience and technology expertise from its Transportation and Industrial battery divisions.
For customers :-
To find out the consumers’ satisfaction level for services provided by the Exide dealers.
To know the specific reasons for which customers purchase Exide batteries.
For dealers:-
To find out the satisfaction level of the dealers for company.
Organization point of view
Beneficial for organization for sales forecasting.
Helps the company to know about their competitor in market.
Make clarifications about dealers.
Moves organization to evaluate SWOT analysis.
Helps in the planning of marketing strategies for the product.
Makes company to know more about current trend and requirement of
market.
Perception is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world.
CONSUMER BEHAVIOUR:-
Successful marketing requires that companies fully connect their customers. Consumer behavior is the study of how individual, groups, and organization select, buy, use, and dispose of goods, services, ideas to satisfy their needs and wants.
ABOUT EXIDE:-
Exide Technologies is the world's second-largest producer of automotive lead acid batteries for automotive and industrial applications. The Company’s four global business groups – Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World – provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
Exide was founded by W.W. Gibbs in 1888 and was then called Electric Storage Battery Company. Gibbs purchased the ideas and patents of inventor Clement Payen to make the storage battery a commercial product. Gibbs targeted electric lighting companies so they could use the storage batteries to provide services to their customers.
In 1900, the company developed a product of greater capacity and less weight for electric taxicabs. This battery was the first to bear the name Exide, short for "Excellent Oxide".
When the United States entered World War I, Exide batteries were used to operate airplane radio sets and power radio stations. In 1938, Exide acquired Giant Storage Battery Company, and expanded into battery chargers and testers.
Exide bought out the dry battery business of a company called Britannia Batteries Ltd. During World War II, Exide was a major supplier of batteries for U.S. Navy submarines and primary contractor for batteries used in the Mark 18 electric torpedo.
Exide entered the dry-cell battery industry in 1957 when it acquired the Ray-O-Vac Company, then the second largest producer of dry-cell batteries in the US. Following the acquisition of the Wisconsin Battery Company, Exide started producing motorcycle and specialty batteries. In 1987, it acquired General Battery Corporation.
COMPANY’S 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.
1947 Two Indian Companies were formed: Associated Battery Makers (Eastern) Ltd. – ABMEL took over the manufacturing operations.
1960 ABMEL became a listed public limited company.
1969 Second Factory set up in Chinchwad, Pune.
1972 ABMEL’s name changed to Chloride India Limited.
1976 R&D Centre established in Kolkata.
1981 Third factory set up in Haldia, West Bengal.
1988 Chloride India Limited was renamed as Chloride Industries Limited.
1992 First Submarine batteries delivered to the Indian Navy.
1994 Technical collaboration with Shin Kobe Electric Machinery Co. Ltd. of Japan, a subsidiary of the Hitachi Group.
1998 Exide acquires the Industrial Operations of Standard Batteries Ltd as a going concern, thereby adding four more factories, taking the total number of factories to eight.
1999 Foundation stone for 9th factory laid at Bawal, Haryana.
2000 Acquisition of 100% stake in Chloride Batteries South East Asia Pte Ltd., (CBSEA), Singapore & 49% in Associated battery Manufacturers, Ceylon, (ABMEL), Sri Lanka.
2000 Implementation of SAP Enterprise Resource Planning integrating Corporate Office, Nine Factories, R&D Centre and More than 30 Sales Offices across India.
2001 Launch of autoexide.com, a full fledged auto portal.
2003 Commissioning of Eighth factory at Bawal, Haryana New JV company in UK- ESPEX Batteries Ltd formed with 51% EIL holding.Strategic Alliance with IBG in Netherlands for Marketing in Europe.
2004 Associated Battery Manufacturers (Ceylon) Limited, Sri Lanka became
a subsidiary consequent to acquiring further 12.50% Equity holding.
2005 Investment in 50% shareholding of ING Vysya Life Insurance Company Limited.
2006 Launch of SAP-CRM in Industrial SBU.
2007 Caldyne Automatics Ltd becomes 100% subsidiary consequent to acquiring the balance 49% shareholding.
2007 Investment with 26% shareholding.in CEIL Motive Power Pty Ltd. A Joint Venture in Australia.
2007 Acquired 100% stake in Tandon Metals Ltd.
2008 Acquired 51% stake in Lead Age Alloys India Ltd.
2009 Stakeover Standard Furukuwa of Japan.
Brands
EXIDE, CHLORIDE
INDEX DYNEX
Standard Furukawa (SF)
SONIC
JUPITER
CONREX
ORGANIZATION FLOW
S.B Ganguly, Chairman Emeritus
R.G. Kapadia, Chairman & Non Executive Director
R.B. Raheja, Vice Chairman& Non-Executive Director
A.K. Mukherjee, Director – Finance & Chief Financial Officer
Vijay Aggarwal, Non Executive Director
PRODUCT PROFLE:-
Energy neither can be created nor destroyed. It can be changed from one
Form to another. – Law of conservation of energy.
A battery is perhaps the only gift of science where eclectic energy is stored by means of electrochemical potential generated by electro- chemical reactions. (Chemical reactions initiated by electric which takes place with the means of electron exchange between the reactants). As and when required, the stored energy can be converted back to electrical energy through similar electro chemical reactions. In certain cases, the electrochemical reaction converting the energy transformation is not reversible. Such batteries are called primary cells, where the electro chemical reactions governing the energy transformation is reversible; the cells are turned as secondary cells. Several cells, when connected in a designed manner give a set of a battery. In this electrical energy can be stored through charging them. This energy can be extracted as and when needed till the entire charge is exhausted through a chemical reaction. The process of battery manufacturing is concerned with creating and sustaining electro chemical potential differences .the potential difference is maintained between two surfaces called electrodes or plates. These electrodes or plates are surrounded in an environment, which connects them and helps them to sustain the potential difference. This usually consists of a medium called electrolyte. In case of lead acid batteries, which are the products of the organization, the electrodes or plates are made of lead and diluted sulphuric acid is used as electrolyte.
BUSINESS PROFILE:-
1. Automotive Batteries.
In the domestic market, the Company sells its products under EXIDE, SF, SONIC and Standard Furukawa Brands. ’EXIDE’ and ‘SF” are its flagship brands. In the international market the products are sold mainly under DYNEX, INDEX & SONIC brands. The Company supplies batteries to almost all the car and two-wheeler manufacturers in the country.
The Company has a distribution network comprising over 4000 dealer outlets. These outlets are supported by 4 regional offices and 28 branch offices. The Company also exports batteries to the Middle East, Japan and CIS countries.
The Company has a market share of 72% in case of Automotive OEM and 70% in case of Organized Retail. The Company also manufactures submarine batteries.
2. Industrial Batteries.
The Company designs and manufacture its industrial batteries in a wide range from 2.5 Ah to 20,600 Ah in conventional flooded and Valve Regulated Lead Acid (VRLA) design. In domestic market, the Company sell its products mainly under EXIDE, INDEX, SF, CEIL & POWER SAFE brands and in the international markets mainly under CEIL, CHLORIDE and INDEX brands.
Industrial batteries are of three types, Conventional lead acid batteries, VRLA (Valve regulated lead acid batteries) batteries and Nickel-Cadmium batteries.
Both organized and unorganized players compete in the OEM and retail industrial battery markets. Industrial batteries cater mostly to the infrastructure sector such as railways, telecom, power plants, solar cells and other industrial segments such as uninterrupted power supply, inverters and traction batteries. Exide’s Inva tubular batteries for Inverter applications were introduced in 2000 and Tele tubular for Telecom Sector introduced in the year 2007 has created volume growth.. The Company also manufactures industrial batteries for niche segments such as miners’ cap lamp batteries and submarine batteries.
3. Submarine Batteries.
The Company also manufactures high-end submarine batteries (Type 1, 2 & 3). The Company manufactures two to three submarine batteries a year to meet the country’s defence requirements. The Company is one of the five companies in the World which has the capability to make submarine batteries for both Russian and German types. With the government’s permission, in recent years, the Company has exported to Algeria.
MANUFACTURING FACILITIES IN INDIA
Golf cart batteries Tabular for inverter0073 VRLA for UPS System
Railway Starter Miner's Cap Lamp Plante
OUR GLOBAL PRESENCE
Automotive exports
• Exide Industries India is of the largest manufacturers of Lead Acid Storage Batteries in World, marketing its products to Western Europe, Middle East, Africa, South America, SAARC and South East Asian Countries.
• EXIDE*, CHLORIDE, INDEX, DYNEX, Standard Furukawa, SF SONIC, JUPITER, CONREX are all brands in which we market our products globally.
• The company has a technical collaboration with Shin Kobe Denki, Japan, the makers of the Hitachi brand of batteries, and Furukawa Battery Company, Japan
• Exide India has its own R&D Centre, which is continuously designing and developing batteries for International and Domestic market.
• ISO/TS – 16949 – give the entire literature.
• Exide are the OEM suppliers to almost every car manufacturer of repute - E.g.: General Motors, Toyota, Hyundai, TATA Motors, Maruti, FIAT, Leyland, Renault, Honda to name a few. Almost 80% of car manufactured in India are fitted with a battery manufactured by us.
Awards/ Certificates and Recognitions:-
Exide Haldia had a rich haul at the CII awards ceremony in Kolkata for 08-09 winning five awards in different categories.
At the CII (Eastern Region) awards ceremony in Kolkata for 08-09 Exide Shyamnagar won
CII Productivity Award -1ST Prize in category “A” for Significant Improvement in Productivity during the year
CII Quality Award – Certificate of Appreciation for Commendable effort in the area of Total Quality at the CII(ER) Quality Award 2008-09
For Industrial Plant
(A) Company’s Plant at Shamnagar, West Bengal is an ISO-9001 & ISO-14001 Certified by TUV-NORD, Germany. It has secured the following awards and recognitions:
Certificate of Appreciation for Commendable Effort in Total Quality – by CII – 2003
Certificate of Appreciation for Commendable Effort in Energy Conservation – by CII – 2003
Certificate of Merit for Most Significant Achievement in Total Quality Management– by CII-2004 & 2005
Certificate of Appreciation for Best Practice in Industrial Relations – by CII –2005-06
1st Position for Sustaining a High level of Productivity Award Contest – by CII – 2006-07
Most Significant Improvement in TQM Quality Award Contest – by CII – 2006-2007
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DATA COLLECTION:-
The task of data collection begins after a research problem has been defined and research design/ plan chalked out. While deciding about the method of data collection to be used for study, the researchers should keep in mind two types of data via .primary and secondary.
Primary data:
Primary data are obtained by a study specifically designed to fulfill the data of the problem at hand .primary data is collected during the course of doing experiment by using various method of data collection such as interview method questionnaires method .Various methods of collections of primary data
1. Observation method
2. Interview method
3. Questionnaires method
4. Collection of data through schedules
Researcher has used questionnaires method as collection of primary data.
Another type of data collected is secondary data.
Secondary data:
Secondary data means information that is already available. Secondary data means which are not originally collected but rather obtained from published data are available in:
a) Various publications of central, state and local governments
b) Various publications of foreign govt. or of international bodies and their subsidiary organizations.
c) Technical and trade journals.
d) Books and magazines.
Secondary data is collected by researcher with the help of:-
Company documents,
Books
Published information
Webpage
M c Kinsey’s 7S Framework
According to Waterman, organization change is not simply a matter of
structure, although structure is significant variable in the management of
change. Again it is also not a simple relationship between strategy and structure,
although strategy is also a critical aspect. In their view effective organizational
change may be understood to be a complex relationship between strategy,
structure, system, style, skills & shared values. The first three elements-strategy,
structure &system are considered the “hardware” of success. The next four –
style skills, staff, and shared values are called the “software”. The complex
relationship is diagrammatically presented below;
SKILLS:
The term “skills” includes those characteristics, which people use to
describe a company. Organization have strengths in a number of area but their
key strengths are dominant skills are few. These are developed over a period of
time of the result of the interaction of a number of factors performing certain
tasks successfully over a period of time, the kind of people in the organization,
the top management style, structure, the management systems, the external
environmental influence etc. Hence when organization makes a strategic shift it
becomes necessary to consciously build new skills.
Employee’s skills in an organization will be unique, this may be due to
their experience in the place of work, and the similarity may also due to
influence of the similar culture.
STYLE OF MANAGEMENT:
Decision-making is centralized with the head office. Authority is
given to unit in-charge to take decision in day-to-day minor matters & other
urgent matters.
Decision-making depends on the authority & responsibility conferred on
each individual & thus it’s distributed based on designation & position held.
In important matters, meetings are held to seek opinions of top
management & various department manager & the decisions are taken &
implemented.
Decision-making is co-ordinate & done with wide consultations of top
management of department manager’s consultation which gives best possible
gains.
SWOT ANALYSISStrengths:
Continued market leadership in the dominant industry segment of batteries
Extensive distribution network in India and South Africa
Strong brand recall in a price sensitive Indian market
Responsive to changes in market conditions and product profiles
Global quality standards, international process and system certifications
Dynamic and progressive leadership, willing to implement Change.
Economies of transportation cost, on account of closeness
to natural rubber growing belt
Weakness:
Capital intensive business
Opportunities:
Leadership position in the commercial vehicle segment
will enable the Company to leverage new and related
business opportunities
New product segments like Truck/Bus Radial (TBR), Off
The Road tyres (OTR), retreading and allied automotive Services
Growth in overseas markets like Europe.
Threats
Imports from neighbouring countries at competitive prices
Raw material price volatility.
LEARNING EXPERIENCE
Exide Technologies is the India’s largest producer of automotive lead-acid batteries for automotive and industrial applications. Exide industries provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
The project was carried out for study and analysis the dealers network and consumer’s perception about Exide batteries in Pune.
It was done mainly to know the satisfaction level of the dealers against the different services provided by the company and also to know the consumer’s satisfaction against the product and services provided by the dealers.
For over 85 years, Exide Industries Limited has pioneered battery technology in India. It is the only company in the country to design and manufacture batteries from 2.5 AH - 20600 AH in conventional flooded and VRLA design.
Exide is only company which manufactures submarine battery in Asia. Exide has responded to defense needs with our indigenous batteries for the Indian Navy’s German design HDV submarines.
Automobile manufacturers are among the largest companies in the world. These corporations are often multinational, meaning they have subsidiaries and manufacturing plants in many different countries. These companies often share parts, use parts made in foreign factories, or assemble entire cars in foreign countries. The three major automobile manufacturers in the United States—General Motors Corporation, Ford Motor Company, and Chrysler, formerly DaimlerChrysler AG—provide much of the industry's total direct employment in the United States, but increasingly foreign automakers, such as Toyota Motor Corporation and Nissan Motor Co., Ltd., are building automobile assembly plants in the United States.
In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.
The Indian automotive component industry is dominated by around 500 players which account for more than 85% of the production. The turnover of this industry has been growing at a mammoth 28.05% per annum from 2002-03 onwards as illustrated in Fig. which clarifies its emergence as one of India's fastest growing manufacturing sectors.
The global battery market is estimated at around US $11bn and is highly consolidated, with the Top-3 players constituting about 55% of the market – Johnson Controls (30%), Exide Tech (14%) and GS Yuasa (11%).The Company has a market share of 72% in case of Automotive OEM and 70% in case of Organized Retail. The Company also manufactures submarine batteries
