RESEARCHT REPORT

ON

MARKETING STRATGEY TO PROMOTE HOMEMARKETING STRATGEY TO PROMOTE HOME

CREDIT INDIA FINANCE PRIVATE LIMITED INCREDIT INDIA FINANCE PRIVATE LIMITED IN

UTTAR PRADESHUTTAR PRADESH

Towards partial fulfillment of the degree of Master of Business

Administration (2014-2015)

Under Guidance of: Submitted by:

Dr. SANJAY SRIVASTAV ABHILASH OJHA

FACULTY SCM (MBA IV SEM)

Roll no. ____________

SHERWOOD COLLEGE OF MANAGEMENT

INDIRA NAGAR, LUCKNOW

PREFACE

The Topic of study was “MARKETING STRATEGY TO PROMOTE HOMEMARKETING STRATEGY TO PROMOTE HOME

CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR PRADESH”. CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR PRADESH”.

India is going through a retail revolution. All the big business houses are entering this

Sector and it is growing at a very past pace. International giants in this sector like Wal-

Mart, Tesco and Care four are also trying to enter the Indian market. Retail is offering

tremendous opportunities in employment. However, our country also poses a big

challenge to organized large retailers particularly in food sector. Food being perishable

item, for the retailer to be successful the key is proper supply chain management. The

challenge comes from a number of factors, e.g. huge size and population of our country,

varied culture and hence varied taste, very poor infrastructure like improper roads, bad

connectivity between production centers and markets, lack of proper cold chain facility

like refrigerated transportation, ware-housing etc. Under these circumstances it is

interesting to find out how large organised retailers are coping up with these problems. In

this paper a comparative study is made in supply chain management adopted by different

players in food and grocery segments.

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ACKNOWLEDGEMENT

Every work constitutes great deal of assistance and guidance from the people concerned

and this particular project is of no exception.

A project of the nature is surely a result of tremendous support, guidance, encouragement

and help.

Wish to place on record my sincere gratitude to my project guide Dr. SANJAY

SRIVASTAV, Faculty Member, Sherwood College of Management, Lucknow. I

thank him for constructive help and encouragement throughout the project. Without his

support and guidance taking this would not have been possible.

Also, wish to acknowledge enthusiastic encouragement and support extended to me by

my family members.

I’m also thankful to my friends who provided me their constant support and assistance.

ABHILASH OJHA

MBA-4th Sem

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DECLARATION

I do hereby declare that the research report titled “MARKETING STRATEGY TO“MARKETING STRATEGY TO

PROMOTE HOME CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTARPROMOTE HOME CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR

PRADESH” PRADESH” submitted by me in partial fulfillment of the requirement of Master of

Business Administration, exclusively prepared and conceptualized by me and is not

submitted to any other Institution or University or published anywhere before for the

reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not

been obtained from any other part.

ABHILASH OJHA

MBA-4th Sem

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EXECUTIVE SUMMARY

The supply chain management is logistics aspect of a value delivery chain. It comprises

all of the parties that participate in the retail logistics process: Manufacturers,

Wholesalers, Third Party Specialists like Shippers, Order Fulfillment House etc. and the

Retailer. Here, logistics is the total process of planning, implementing and coordinating

the physical movement of merchandise from manufacturer to retailer to customer in the

most timely, effective and cost efficient manner possible. Logistics regards order

processing and fulfillment, transportation, warehousing, customer service and inventory

management as interdependent functions in the value delivery chain. It oversees

inventory management decisions as items travel through a retail supply chain. If a

logistics system works well, the retail firm reduces stock outs, hold down inventories and

improve customer service – all at the same time.

Logistics and Supply Chain enables an organized retailer to move or store products more

effectively. Efficient logistics management not only prevents needless movement of

goods, vehicles transferring products back and forth; but also frees up storage space for

more productive use.

Retail analysts say on-time order replenishments will become even more critical once the

Wal-Mart/ Bharti combine begins operations - the American retailer works almost

entirely on cross-docking and is likely to demand higher service levels, including

potential levies for delays in shipment.

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TABLE OF CONTENT

PREFACE 2

ACKNOWLEDGEMENT 3

DECLARATION 4

EXECUTIVE SUMMARY 5

CHAPTER-I 8

INTRODUCTION 9

SUPPLY CHAIN MANAGEMENT 14

SUPPLY CHAIN MANAGEMENT AT PANTALOONS RETAIL 21

OBJECTIVE OF THE STUDY 49

SCOPE AND LIMITATIONS OF THE STUDY 50

RESEARCH METHODOLOGY 51

CHAPTER-II 54

COMPANY DETAILS 55

MANAGEMENT 57

PRODUCT LINE 59

COMPETITORS 63

GOVERNMENT POLICIES 64

ACHIEVEMENTS 65

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CHAPTER-III 67

LEARNINGS 68

DATA ANALYSIS 69

FINDINGS 79

CHAPTER-IV 80

RECOMMENDATIONS 81

CHAPTER-V 92

CONCLUSION 93

BIBLIOGRAPHY 94

ANNEXURE/QUESTIONNAIRE 95

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CHAPTER I

8

FINANCE IN INDIA

More than half of personal savings are invested in physical assets such as land, houses,

cattle, and gold.

The Indian money market is classified into: the organised sector (comprising private,

public and foreign owned commercial banks and cooperative banks, together known

asscheduled banks); and the unorganised sector (comprising individual or family owned

indigenous bankers or money lenders and non-banking financial companies (NBFCs)).

The unorganised sector and microcredit are still preferred over traditional banks in rural

and sub-urban areas, especially for non-productive purposes, like ceremonies and short

duration loans.

Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in

1980, and made it mandatory for banks to provide 40% of their net credit to priority

sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure

that the banks fulfill their social and developmental goals. Since then, the number of bank

branches has increased from 10,120 in 1969 to 98,910 in 2003 and the population

covered by a branch decreased from 63,800 to 15,000 during the same period. The total

deposits increased 32.6 times between 1971 to 1991 compared to 7 times between 1951

to 1971. Despite an increase of rural branches, from 1,860 or 22% of the total number of

branches in 1969 to 32,270 or 48%, only 32,270 out of 500,000 villages are covered by a

scheduled bank.

Since liberalisation, the government has approved significant banking reforms. While

some of these relate to nationalised banks (like encouraging mergers, reducing

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government interference and increasing profitability and competitiveness), other reforms

have opened up the banking and insurance sectors to private and foreign players.

As of 2007, banking in India is generally mature in terms of supply, product range and

reach-even, though reach in rural India still remains a challenge for the private sector and

foreign banks. In terms of quality of assets and capital adequacy, Indian banks are

considered to have clean, strong and transparent balance sheets relative to other banks in

comparable economies of Asia. The Reserve Bank of India is an autonomous body, with

minimal pressure from the government. The stated policy of the Bank on the Indian

Rupee is to manage volatility but without any fixed exchange rate.

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INDUSTRY PROFILE

India is undergoing rapid development. This means that there are millions of people who

dream of better home, better infrastructure and a better life. This opens several avenues of

potentially limitless growth in the banking and finance sector. Bajaj Finserv Lending will

help grab this opportunity to grow your business, through lending loans, financing, etc.

INDIA'S FINANCIAL SERVICES INDUSTRY

An innovative, competitive and thriving financial services industry in any country plays a

vital role in its smooth functioning and development. India's financial services sector has

posited a stable growth curve over the years driven by sound fundamentals, rising

personal incomes corporate restructuring, financial sector liberalization and the growth of

a consumer-oriented, credit-oriented culture. This has led to the increasing demand for

financial products, including consumer loans (especially for cars and homes), as well as

for insurance and pension products. The soaring demand for financial services offers

promising investment prospects.

According to the Central Statistical Organization (CSO) data, released early this year,

financial services, banking, insurance and real estate sectors rose by 7.4 per cent in 2013-

14.

BACKED WITH

A favorable demographic profile which supports a higher retail off take - 54% of the

population is in the 15-35 years age group. India consists of a dynamic and a growing

middle-class class which on a purchasing power parity basis is much larger than the

entire population of the US and a consumer credit market that is growing by more than

40% per annum.

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Continuous increasing in capital expenditure by the government and private industry.

Significant opportunities in the largely untapped SME segment- which accounts for 40%

of the industrial output and 35% of India's direct exports

India's increasing and consistent growth. As per the CSO, the Indian economy grew by an

estimate of 7.4 per cent in the year 2012-13 and is expected to grow over 8 percent in the

coming months.

Growing investment avenues across all segments in the banking and financial services

sector.

GROWING POTENTIAL IN THE INDUSTRY

Demand for banking services is growing significantly, albeit in a country where less than

half of households have a bank account. It is in the retail sector that the surge in demand

is most marked. Housing loans grew by more than 50% and loans to the retail

commercial sector rose by more than 100%. According to the weekly statistical

supplement (WSS) of the Reserve Bank of India (RBI), Indian bank loans represented a

rise of 19.1 per cent as of June 4, 2013 while deposits were up 14.3 per cent from the

previous year. Furthermore, outstanding loans showed an increase from US$ 12.39

billion to US$ 703.5 billion in the two weeks to June 4, 2013. The WSS reflected that

bank deposits rose by US$ 3.24 billion to US$ 975 billion in the two weeks to June 4. In

2009, there were 21 IPOs that raised US$ 4.18 billion as compared to 36 IPOs in 2008

that raised US$ 3.62 billion.

As per the statistics of RBI, aggregate deposits grew by 3.3% on q-o-q basis in quarter

ended June 10 as against 5.1% during the same period last year; reflecting the relatively

lower rates in term deposits.

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NON-BANKING FINANCIAL COMPANIES

Non-banking financial companies (NBFCs) are fast emerging as an important segment of

the Indian financial system. It is an heterogeneous group of institutions (other than

commercial and co-operative banks) performing financial intermediation in a variety of

ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.

They raise funds from the public, directly or indirectly, and lend them to ultimate

spenders. They advance loans to the various wholesale and retail traders, small-scale

industries and self-employed persons.

NBFC are present in all competitive fields such as, vehicle financing, housing loans,

leasing, hire purchase and personal loans financing etc. NBFC's are not required to

maintain cash reserve ratio (CRR) and statutory liquid ratio (SLR). Priority sector lending

norm of 40% (of total advances) is not applicable to them. While this is at their

advantage, they do not have access to low cost demand deposits. As a result their cost of

funds is always high, resulting in thinner interest spread. But currently with surplus

liquidity in the system, the cost of funds for NBFC's has substantially eased thus

improving their margins. Gradually, they are being recognized as complementary to the

banking sector due to their customer-oriented services; simplified procedures; attractive

rates of return on deposits; flexibility and timeliness in meeting the credit needs of

specified sectors; etc.

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INVESTMENT & FINANCE SECTOR ANALYSIS REPORT

The major Non Banking Financial Companies (NBFCs) in India have their

relative specializations, for e.g. HDFC (mortgage loans), IDFC (infrastructure

loans), Mahindra Finance, Power Finance Corporation (power financer) &

Shriram Transport Finance (auto loans). The trend of segmental monopoly is

changing as banks are entering long-term finance and FIs also meeting the

medium and short – term needs of the business masses 

NBFCs' growth had been constrained due to lack of adequate capital. Going

forward, we believe capital infusion and leverage thereupon would catapult

NBFCs' growth in size and scale. A number of NBFCs have been issuing non-

convertible debentures (NCDs) in order to increase their balance sheet liquidity.

Also to address this purpose, especially in the infrastructure financing space, a

new category of NBFCs was formed called Infrastructure financing companies

(IFCs). 

NBFCs are not required to maintain cash reserve ratio (CRR) and statutory liquid

ratio (SLR). Priority sector lending norm of 40% (of total advances) is also not

applicable for them. While this is to their advantage, they do not have access to

low-cost demand deposits. As a result their cost of funds is always high, resulting

in thinner interest spread. However, the regulatory arbitrage may soon change

between the two entities with the help of the Usha Thorat committee

recommendations, which call for stricter regulations in the space.

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FINANCIAL YEAR’ 2014

FY14 proved to be a challenging year. The uneven political climate led to

stagnant economical scenario – thereby leading to lower infusion of investments

in to infrastructure and core industries – also leading to lower capital expenditure

and less job creation. The inflation remained on the higher side, thereby reducing

the disposable income and leading to lower consumer spends

It was also the most challenging year for the Indian commercial vehicles sector.

India's cycle-prone commercial vehicle industry is not new to downturns. Thus

the vehicle financiers too faced enormous challenges during the year. 

Despite the overall slowdown in the economy, the demand for individual home

loans continued to remain strong. The demand for affordable housing remained

robust with increased growth coming from tier II and tier III cities. In an endeavor

to further support home loans, the Finance Act, 2013 provided a one-time benefit

of additional interest deduction up to Rs 1 lakh for first-time home buyers,

provided the loan amount and property cost did not exceed Rs 25 lakhs and Rs 40

lakhs respectively. This, coupled with the other fiscal benefits available on home

loans has helped reduce the effective rate of interest payable on a home loan.

Thus, overall, FY14 turned out to be a strong year in terms of home loan

disbursements for housing financiers. 

During FY14 India continued to show a deceleration in growth with the GDP

growth rate at lower than 5 percent. The macroeconomic scenario was difficult

with a slowdown in the investment cycle, persistently high headline inflation and

a volatile currency and interest rates. The trend of declining private investment in

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Infrastructure continued during the year. The issues faced by the infrastructure

sector are well known and the Government initiated some steps to reduce the

bottlenecks faced in project execution. And FY14 proved to be an equally

turbulent year for infrastructure financiers. 

The Reserve Bank of India granted branch licenses to two NBFCs; namely, IDFC

and Bandhan Financial services to set bank in the private space.

The retail focused NBFCs witnessed a surge in asset quality issues during the

fiscal ended March and the troubles are likely to continue in FY15 as well. The

agency stated delinquencies due for over 180 days, after which the asset turns bad

as per the existing reporting guidelines, for the retail focused NBFCs increased to

1.9% for FY14 from 1.3% at the end of FY13. Going by the 90-day due rule,

which qualifies an asset as bad for commercial banks, delinquencies increased to

4.5% as of March 2014 as against 3.6% in the year-ago period. 

The credit growth registered by retail focused NBFCs also declined massively

during the fiscal with such NBFCs reporting only 8% growth in advances as

against 19% rise in advances in the previous fiscal. A significant part of the

slowdown was due to de-growth in the commercial vehicle, construction

equipments and gold loan segments as reported by the agency.

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OBJECTIVES OF THE STUDY

To know about the Indian finance industry.

To know about the Home Credit India Private Limited.

To know about the Home Credit India products and services.

To know about Home Credit India marketing strategies.

To know about the customer perception about the Home Credit India Pvt. Ltd.

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SCOPE OF THE STUDY

In order to understand the concepts of logistics in terms of practical usage and to glimpse

in to the how real company or organization uses logistics as a formidable tool to gain

customer satisfaction, reduce overall cost and increase efficiency I selected “Pantaloons

Fashion & Retail Limited” the best retailing company of India. The study is done only

how Pantaloons Fashion & Retail Limited uses logistics system effectively. There are

following strength and weakness of Pantaloons Fashion & Retail Limited.

LIMITATIONS

This report incorporates sincere efforts to submit the best possible dossier on the

topic assigned because no study can be perfect. There are bound to be limitations

that I faced and within which I had to work.

The data used in most part of the report is primary data, it has inherent

discrepancy.

Some of the respondents were not completely aware of its products and track

record.

Report limited to Lucknow region only so it doesn’t resemble the whole state or

nation.

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RESEARCH METHODOLOGY

Research methodology is to discover answer to question through the Application of

scientific procedures the main aim of research is to find out the truth which is hidden and

which has not been discovered as yet. Marketing research is the careful analysis of a

business situation by scientifically analyzing it and using various statistical applications

to the subject of study.

Research is the process of finding a solution through the use of scientific tools and

techniques. Marketing research is a methodical and purposeful study conducted to obtain

solution for specific marketing problem.

As far as method is concerned, I preferred personal interview or face to face meeting to

ensure accurate information and encourage frank response to questions. At the same time

telephone or mail survey was not possible.

While framing the questionnaire, I tried to list a series of question, which could elicit the

needed information for proposed study. Questions, which were of no particular value for

the study objectives, were not included. I also tried to keep in mind the respondents’

understanding capacity, ability to recall the information and his experience limits. I didn’t

include those

Questions in the questionnaire, which could have raised misconception and promoted

non-cooperation on their part.

However in the questionnaire I used simple words, which were easy to understand, and

beyond any doubt. In the same way ambiguous questions were not included and questions

were arranged in a logical order.

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RESESRCH INSTRUMENT

The research instruments generally used to collect primary data are questionnaires and

mechanical instrument. Some of these are;

Questionnaire:-

Questionnaire are formal sets of questions, prepare to collect the require information .this

is one of the most effective and popular technique used in survey. Questionnaire is a tool

which provides right information.

Sampling:-

Proper sampling design is essential in marketing research so the sample has to be

collecting in such a way that it represents the entire population. Sample size has taken of

100.

Collecting of data:-

In dealing with customers it is often found that data, at hand are inadequate, and hence it

became necessary to collect data that are appropriate and adequate. There are two way of

collecting the appropriate data:-

1. By observation:

This method implies the collection of information by investigator’s own observation,

without interviewing the respondents’ .In survey many times I observed that is what

the reason to damages and shortage of goods are.

.Personal interview:

I have also collected my data through Personal interview. I made a well structured

questionnaire and asked them what the reason of damages and shortages are.

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Secondary data:

Secondary data is collected from the company internal and external resources. While the

internal resources include the company literature, sales report, broachers, pamphlets etc.

and the external sources could be included magazines, newspaper etc.

Research type:-

My project based on supply chain and damages and shortage so I am taking interview and

informative research. The main advantages of this research that I have no control over

the variable. I have done my project in Pantaloons Store, Lucknow warehouse.

Sampling method:-

In my survey I have used deliberate sampling. This sampling method involves purposive

or deliberate selection of a particular unit of the universe. It can also be known as

convenience sampling.

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CHAPTER II

22

COMPANY DETAILS

HOME CREDIT INDIA PRIVATE LIMITED

Founded in 1997, Home Credit Group

has established itself as an emerging

markets specialist in consumer

finance, entering attractive and high

growth markets ahead of its

competitors.

Continuing the successful development of the business in Europe (the Czech Republic,

Slovakia, Russia, Belarus and Kazakhstan), Home Credit expanded into Asia in 2007 and

has operations in China, Vietnam, Indonesia, Philippines and in India.

Consumer finance expert

Operations across 10 countries

35 million customers

125,006 distribution points

44,800 employees

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HOME CREDIT INDIA AT A GLANCE

Home Credit Group is a global player in

consumer finance with a prominent presence

across Central and Eastern Europe (CEE), the

Commonwealth of Independent States (CIS: the

former Soviet Union) and Asia.

In line with our strategic growth plans, Home

Credit launched operations in India in 2012.

From our headquarters in Gurgaon, our Indian

journey started in the nation's capital New Delhi and the surrounding National Capital

Region (NCR) with the aim of expanding into other regions of India in the future.

Our offering primarily consists of providing in-store financing (direct non-cash loans in

retail outlets) to qualified customers looking to purchase consumer durable goods such as

home appliances, electronic goods, mobile phones and motorbikes. As we broaden our

distribution network, our range of product offerings will expand.

India is one of the most promising and fast-growing countries with the second largest

population in the world. The country provides Home Credit with outstanding business

opportunities and is a welcome addition to Home Credit's global portfolio.

COMPANY BACKGROUND

Home Credit India is a consumer finance company operating in India via the "Home

Credit India Finance Private Limited" (HCIFPL) corporation.

 Registered & Corporate Office: 3rd floor, Tower C, Infinity towers, DLF phase 2,

Gurgaon, Haryana - 122 002, India. 

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HOME CREDIT GROUP AND PPF GROUP

Home Credit Group is a leading global

consumer finance provider with a

prominent presence and leading market

share positions across Europe and Asia.

We are focused on providing affordable,

flexible, simple and convenient loans to

consumers through our advanced loan

processing system.

We have proven our reputation as a pioneer over time by successfully entering

underpenetrated emerging markets and scaling up our operations to realise their true

growth potential. In less than fifteen years, the business has grown organically and

expanded across eight countries, gaining more than 35 million customers, 125,006

distribution points, and now has 44,800 employees (as of 30 June 2013). Our 5,791

employees in Asia have already served a total number of 1.8 million customers (as of 31

December 2011).

OWNER

Home Credit B.V. is owned by PPF Group N.V.,with an 86.6% stake and EMMA

OMEGA LTD, an investment holding company ultimately owned by Mr. Jiří Šmejc, with

a 13.4% stake.

PPF Group N.V. is one of the largest investment and finance groups in Central and

Eastern Europe (CEE). PPF was founded by Mr. Petr Kellner, a prominent and successful

Czech entrepreneur, who remains the major shareholder. With EUR 21.5 billion of assets

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under management (as of 31 December 2012), PPF's business investments range across a

variety of sectors, with a focus on banking and finance. PPF's reach spans across the CEE

and Russia to Asia.

CORE BUSINESS

Home Credit's core business is to provide consumer finance lending to qualified mass

market customers, often first-time borrowers. Our comprehensive presence across each of

our markets consists primarily of in-store financing, i.e., non-collateralised, non-cash

loans primarily to customers seeking purchases of durable goods, and we provide this

service directly in the shops through our branded "point-of-sales" outlets. This localised

approach means that we have an efficient and flexible distribution model as these POS

outlets are supported by close cooperation with various local payment channels including

automated payment machines, post offices and cash kiosks, and complemented by our

own branches in some markets (Russia, Kazakhstan, Belarus). In selected markets, we

also provide cash loans, credit cards and retail banking services such as, deposits or

current accounts.

CENTRAL RISK MANAGEMENT AT HOME CREDIT

Home Credit's central risk management approach is vital to this ability to build

businesses in different countries successfully. Having created a sophisticated risk

management system tailored to the specifics of CIS and Asian countries, Home Credit's

prudent underwriting is applicable in any new country. These centrally adapted

proprietary models incorporate the wealth of experience gained from multiple countries

and include Home Credit's own set of stringent scoring and verification methods as well

26

as best practice fraud prevention. Furthermore they are supported by a centralised IT

management system that ensures effectiveness and efficiency.

OUR ETHOS

Our success is backed by the highest standards of business practice in our dealings with

customers, employees, investors and other stakeholders. We also look after our chosen

retailers through dedicated support, extensive marketing assistance and training. In each

country, we have an internationally experienced management team and we endeavour to

share best practice across the Group to improve our customer service and to grow the

businesses.

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VISION AND VALUES

At Home Credit, our vision is to be a leading provider of consumer finance services for

our customers in the markets in which we operate, measured by our business practices,

sales, long-term profitability, sustainable growth and corporate reputation.

We aim to create and develop strong relationships with our customers, distribution

networks and agents as well as offer valuable career opportunities for our employees who

are central to the success of our business.

We endeavour to establish, maintain, and promote high standards of business practice in

all our dealings with customers, employees, investors and other stakeholders. This means

acting with responsibility and integrity; complying with applicable laws and regulations;

applying internationally accepted standards of responsible business conduct to our

operations; and respecting the traditions and cultures of the communities and countries in

which we operate.

In order to achieve this vision, our business conduct is based on the following values:

Combining customer focus with financial discipline

One of Home Credit's key strengths is the extensive knowledge we have of our

customers, combined with our expertise of local markets. Our goal is to provide our

customers with high quality service and convenient access to credit as and when they

need it, while ensuring that Home Credit observes the highest standards of financial

discipline and stability in order to maintain profitable growth.

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WORLD-CLASS RISK MANAGEMENT

Home Credit employs a world-class risk management system and operates a fully-

automated underwriting system with a highly effective anti-fraud tool that is backed by

our strong IT systems. The importance of maintaining close relationships with our

customers is integral to providing loans to them. Effective risk management combined

with our unique ability to optimise risk on a large scale enable Home Credit to stand out

from industry peers.

PROFICIENT CENTRALISED IT PLATFORM

Home Credit has developed a fully centralised, efficient IT platform, representing a key

competitive advantage for our business. Offering scalability and flexibility, the

centralised IT platform is uniquely tailored to mass market operations in different

emerging markets. The centralisation of certain key business functions, e.g. risk

management, finance, and IT, helps to increase the efficiency of our operations, and

facilitates the sharing of best practice knowledge and expertise across Home Credit's

markets.

COMPETENT MANAGEMENT

Everywhere we operate, we aim to develop and encourage the values and principles that

are the foundation of our business success: innovation, entrepreneurship, creativity,

financial discipline, and a global perspective. This is why our greatest asset is our people:

led by a successful and experienced management team, enriched with immeasurable

consumer finance and business expertise and a steadfast commitment to deliver.

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MANAGEMENT

Our people are key to the success of our business and the backbone of our localised

approach and it is a crucial component of Home Credit's values to ensure our employees

progress within the company and to share innovation and best practice across the group.

Our local management team receives broad support from the experts at the global Home

Credit headquarters and this is the team that we believe will be successful in growing the

business in India through their experience and expertise:

Pavel Maco-CEO 

Chief Executive Officer

Pavel Maco joined Home Credit Bank, Kazakhstan as Chief

Financial Officer in 2009 and was appointed as Chief Executive

Officer in July 2010. He was appointed as CEO in India in Oct

2013. Prior to joining Home Credit Group, he spent a year at VAB BANK, Kiev, Ukraine

as CFO and Deputy Chairman of the Board of Directors, where he was responsible for

the financial management of the bank, with a primary focus on cost control. He

previously spent ten years at GE Consumer Finance, based in the Czech Republic, Ireland

and Russia in senior roles focused on finance and operations management.

Mr. Maco studied Industrial Electronics at Novosibirsk State University, Novosibirsk,

Russia and also holds an MSc in Accounting and Systems Engineering from Czech

Technical University, Prague and an MBA in Finance and General Management from the

University of Pittsburgh's Katz School of Business in the U.S.

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Magdolna Juridesz

Chief Financial Officer

Magdolna Juridesz joined Home Credit in 2015 with over two

decades of experience across financial services and consulting. At

Home Credit India, she is Chief Financial Officer responsible for

financial planning and analysis, accounting, procurement and treasury functions. Prior to

Home Credit, Magdolna was Chief Financial Officer of CIB Bank (Intesasanpaolo),

Hungary, responsible for 21 entities of the banking group including accounting, taxation,

financial controlling, procurement and economists. In the past she has also worked with

Citibank Hungary as Vice-President, Strategic Projects and Planning where she managed

a wide variety of strategic projects for the CEO and was a member of the bank's

Management Committee. Magdolna has also served as Chief Financial Officer of

Hungarian Post Insurance Companies. Prior to that she worked with

PricewaterhouseCoopers and began her career with Arthur Andersen. She has a Masters'

degree in Economic Sciences from the Budapest University of Economics.

Vlastimil Hrabal

Chief Sales Officer

Vlastimil joined the Home Credit Group in 2012. Over the last

eight years, he has worked in internationally renowned insurance

companies where he managed projects in Operations and Sales.

For the past two years with Home Credit India, Vlastimil has led the Operations

department transforming it into a well-oiled engine. He leads the Sales network across the

country today and holds a Masters degree from the University of Economics, Prague.

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Manu Pal

Chief Strategy and Marketing Officer

A Chartered Accountant by qualification, Mr. Pal has amassed a

rich career spanning over 15 years in various sectors including

Retail Banking, Commercial Finance, Insurance and Healthcare in

both mature and emerging economies. He is responsible to establish the Marketing

function for the India business. His scope encompasses Marketing, Market Strategy,

Market Research, Branding, Cross Sell, Product Management and PR &

Communications. Prior to this, he successfully built the Sales network for India

Operations. Before that he also served as the interim CMO and Head of Customer

Relationship Management with GE Money Bank and was responsible for managing the

integrated Customer Relationship Management (CRM) segment, encompassing direct

marketing, lifecycle management, channel management, customer analytics and related

technology infrastructure across the Personal and Commercial banking, Sales Finance

and Auto product segments in the Czech Republic

Tomas Dudasko

Chief Operations Officer

Tomas has been working with the Home Credit Group for over

six years, and has worked at the global Home Credit IT Centre in

the Czech Republic as well as lead the IT team in India. Over the

years, he has been responsible for rolling out projects across geographies such as Czech

Republic, Egypt and India. As Chief Operations Officer at Home Credit India, Tomas is

responsible for the Client verification process, Customer Care, Registration team and

32

Payment channels. Tomas graduated from Masaryk University, Brno, with a degree in

Computer Science and Mathematics.

Vijay Dhingra

Head of Legal

Vijay brings along a varied experience of over 12 years in the

fields of Corporate Governance, Compliances and Legal affairs of

the Company. His last assignment was with GE Capital Services

India where as part of Legal & Secretarial Team responsible for compliances and legal

matter of the Company. He was also associated with entities like HSBC and IFCI Factors

wherein he was involved in setting up compliance structures and filing of offer

documents with SEBI. Vijay is Law Graduate and Associate member of Institute of

Company Secretary of India.

Manish Kaushik

Head of Security

Manish Kaushik who joined Home Credit India in August 2013

with a rich experience of over 16 years in Security & Fraud Risk

Management, fraud frameworks & policy, fraud prevention

systems & strategy, prevention detection & major investigations - internal & external

obtained within multiple product portfolios & channels.

He has successfully achieved lowest loss ratio in the industry, In his previous company

"SBI Cards" his team was awarded as the best Fraud Control team and was given Leaders

Award by VISA in 2013 for having best in class Fraud Management.

Manish is the Chairman of Industry Forum for Fraud Prevention (IPCRC -North India)

33

and is Guest Speaker/Faculty for Fraud Conferences and Police Training Academies ,He

also has the distinction of having worked for sales of products like Auto Loans, Personal

Loans, Automobiles, Consumer durable and various financial products. He has managed

wing to wing sourcing and approval processes for various retail assets therefore has a 360

degree view of challenges faced by the sales team and the fraud control teams in a

competitive environment.

He is a valuable asset for us on our way towards achieving operational efficiency and

minimizing any potential losses.

Milan Urbasek

Chief Roll Out Officer

Milan has been working with the Home Credit Group for over

four years and currently leads the Roll Out team. A seasoned

professional, he worked, as Manager of Business Applications

unit and later as Director of Quality Management at Home Credit Bank in Kazakhstan .

During his career with Home Credit, Milan has been responsible for project Management,

Process Management, development and support of customized SW. Before joining Home

Credit, Milan had experience of 9 years with organizations like Adastra s.r.o, and

Aquasoft spol. s.r.o. He is a trained Six Sigma expert and holds Ph.D. Degree in

Informatics from Technical University, Berlin, Germany.

Petr Jirat

Chief Risk Officer

Petr has joined Home Credit in 2013 as Chief Risk Officer. In his

10 years of track record, he has done fraud management and risk

34

management in international corporations such as The Royal Bank of Scotland and

ERSTE Group. His carrier covers various projects in Risk and Fraud optimization and

implementation. During his tenure with ERSTE Group he was responsible for Portfolio

analysis and monitoring, Credit line increase strategy, Credit risk policy and collection

strategy. Petr has done Master of Science from University of Economics, faculty of

international relations, Prague, Czech Republic.

Vishal Chopra

Head of Human Resources

A Graduate in Foreign Trade from Delhi University & a Post

Graduate in HR from BVIMR, Pune, Vishal has accumulated

experience of over 13 years in all facets of HRM / HRD in

various sectors including BFSI, IT / ITES & B2B eCommerce. During his journey in the

Corporate World Vishal has taken many challenging assignments like helping the

Organizations in Ramping-up at a very fast pace, devising Talent Acquisition processes

to hire Right Talent, building Organization's capability by developing Internal Talent,

fostering Organization change & alignment of HR Practices with Business Objectives by

deploying PCMM Framework to name the few. In his last assignment at Indiamart

Intermesh Ltd. (India's No. 1 B2B Online Platform) he was responsible to Hire / Build

Talent across India (21 Cities) & own all the Processes related to Talent Acquisition.

35

Martina Kadeřábková

Chief Quality Management Officer

Martina has over a decade of experience in project management,

Business Process management and strategy. With the Home

Credit Group for over a year, Martina heads the Quality

Management team where she leads projects that aim to make business processes more

efficient and effective. Prior to Home Credit, Martina worked as a Business Consultant

with Greyson Consulting as well as with GE Money Bank in the Czech Republic. She

holds a Master's Degree from the University of Economics, Prague, Czech Republic.

Tomáš Paukner

Chief IT Officer

With more than 14 years' of experience in Data Centre

Management, Risk management, Facility Management, GSM and

ICT systems migrations, integration, space diversity solution.

Tomas leads the Information Technology team at Home Credit India. Prior to Home

Credit, he worked at GTS Central Europe, Home Credit China and Vodafone. Tomas

holds a Diploma in Power Engineering from Czech Technical University Prague, Czech

Republic.

36

CODES AND POLICIES

Through our business, we provide consumer finance products and services to more than

35 million customers across Europe and Asia.

In so doing, we aim to uphold our reputation for acting responsibly and with integrity,

respecting the laws and regulations, traditions and cultures of the countries within which

we operate, as well as internationally accepted standards of responsible business conduct.

Home Credit requires international standards of professional and ethical conduct of itself

and from all employees and other persons acting on behalf of the Group. In particular, the

Group's senior management has a special responsibility to lead according to these

standards.

 

View our policies below:-

Happiness Express - Lucky Draw Terms & Conditions

Corporate Governance Policy

Fair Practice Code

Grievance Redressal Policy

General Terms and Conditions of Loan from Home Credit India Finance Private

Limited

Interest Rate Policy

Code of Business Conduct and Ethics and vigil mechanism

37

PRODUCT LINE: LOANS

Do you have your eye on a new mobile phone, laptop or television? Perhaps you need a

new motorbike? Home Credit makes these items not just affordable, but easy to buy, by

offering in-store financing for products such as electronic goods, laptops, mobile phones

and motorbikes.

Home Credit India provides loan service directly to customers who are making purchases

in-store through our branded "point-of-sales" outlets. The service is straightforward and

uncomplicated with simple document requirements and a speedy application process. In

certain cases, your loan may be approved on the spot, making it possible that you leave

the store with your new purchase, straight away.

FEATURES AND BENEFITS

What is a loan and why should I take one out?

If you are buying an electronic or household item, or a motorcycle or scooter and you

want to spread the payments, then a loan can help you do this and make your purchase,

more affordable. Rather than paying for the item upfront, you can pay for the item in

monthly instalments over a fixed period of time. Home Credit loans, available directly in

store, offer a fast and easy application process and enable you to take ownership of your

item, straight away and pay for it later.

What are the benefits of a Home Credit loan?

Loans are available in-store at the time of purchase: Just look for the Home Credit

logo

Minimum documentation needed to apply: In most cases two documents to prove

identity and income is all that's needed

38

Fast and easy processing with approval received on the spot (in certain

cases): You can leave the store with your purchase, then and there

Affordable advance EMIs and monthly payments: Flexible payment options and

term length to suit your budget

Numerous repayment options: Various modes of repayment options like ECS,

direct debit, online fund transfers, payments through authorised kiosks/bank

branches to choose from, giving you peace of mind and saving your valuable time

Clear terms and conditions: All terms and conditions, including fees and

penalties, are clearly explained at the time of submitting loan application. There

are no hidden fees/charges.

ELIGIBILITY AND DOCUMENTS

To be eligible for an in-store loan you must:

Be an Indian National

Be more than 19 years old

Have a source of income (salary, business, pension)

Reside in the same business area in which the loan is being applied

Have two pieces of valid documentation to prove your identity and current

address

Documentation requirements:

At least two documents are required. If a single document can prove both, identity and

address, then a secondary identity document is needed for a successful application. Proof

of identity and address must be issued by any authority under Government of India in the

applicant's name and must not be expired.

39

Proof of identity can include: Pan Card/Voter's ID Card/Passport/Driving License

Proof of address can include: Voter ID card/Passport/Driving License/*Latest 2 months

electricity bills/*Latest 2 months telephone bills/Latest 2 months mobile bills/Latest 2

months credit card statements/Last 3 months bank statements/*Ration Card/Rent

Agreement/ Property Registration Deed

*These documents can be in the name of an immediate family member with whom the

applicant is living, but must still be of the current residence address of such immediate

family member.

For certain purchases, proof of income may be required.

For salaried customers: Salary slips from the last two months/Bank statements from the

last three months showing salary income/Pension certificate along with bank statements

from the last three months showing pension income

For self employed customers: Bank statements from the last three months/Most recent

income tax return assessment

Additional documents accepted as proof of income for certain purchases, across customer

categories are: Credit Card/Car registration certificate (not including company

cars)/Proof of house ownership.

40

LOAN PARAMETERS

CONSUMER DURABLE LOAN

Min & max amount

Mobile

Laptop

Home appliance

4,000-50,000 INR

9,000-60,000 INR

6,000-80,000 INR

Min & max term

Mobile

Laptop

Home appliance

9-15 months

9-24 months

9-24 months

Min. cash payment

Mobile

Laptop

Home appliance

35%

35%

25%

Origination fee

0% - 5% of loan amount

Monthly servicing fee Upto 200 INR

TWO WHEELER LOAN

Minimum & Maximum loan amount 20,000-120,000 INR

Minimum & Maximum term 9-36 months

Hypothecation Yes

Minimum advance EMI 25 %

Processing fee0% - 4 % of loan

amount

41

HOW IT WORKS

Home Credit offers "point-of-sales" services to customers in stores to enable them to buy

goods such as electronic items and mobile phones, without the need to search around for

financing.

A loan application is made in the store with minimum documentation and sent

immediately for approval. Approval is received on the spot enabling the customer to

leave the store with his or her new purchase, then and there. The customer repays the loan

on monthly basis directly to Home Credit.

For customers, the service is simple. The customer applies on the spot and gets the goods

very quickly.

The customer makes a credit application in the shop through Home Credit sales

agent/representative: there are simple document requirements, no credit card is

needed

42

The application is submitted to Home Credit for processing ...

and notification is sent directly back once the application is evaluated

The customer leaves the shop with the item ...

... and Home Credit makes the payment for the item to the shop upon submitting

all the customer's contractual documents

The customer pays for the item by monthly instalments to Home Credit

LOAN REPAYMENT OPTION

Customers can pay us through the following repayment channels:

Repayment Option 1: ECS Debit (Electronic Clearing Service)

Repayment Option 2: Online Fund Transfer (From any bank)

Repayment Option 3: Cash Payment

43

COMPETITORS

Competition in consumer durable and auto loan sector increasing with time as many new

industry players emerging in market. Few of Home Credit India competitors given

below:-

Bajaj Finance

SBI Loans

Capital First

HDFC Loans

44

CHAPTER III

45

LEARNING EXPERIENCE

The opportunity to work with the company given by the company officials was very

helpful to me. I got to meet many players in the marketing and sales field and discussed

business with them which helped me to improve my communication as well as marketing

skills.

Apart from this i was able to understand the real scenario of the market and how things

really work in the market. This made me taste the real flavors of working environment,

work pressures, target achievements and other necessary skills required to be a good

manager.

From this study I got to know the automobile sector from inside and also came to

know about the many industry players and competition amongst them.

I also got a firsthand experience of conducting marketing research and the issues

involved with it.

I also gained knowledge about the retail store- training given by the company

about the outward and inward process.

46

DATA ANALYSIS

1. Could newcomers in the Retail Industry create damaging competition for Pantaloon?

Yes 40%

No 60%

47

Interpretation: Most respondents don’t think that Newcomers can create damaging

competition to the PANTALOONS.

48

2. Is there an equally powerful force as Pantaloon in the market who can muscle into our

territory?

Yes 60%

No 40%

Interpretation: Most respondent believe that there is other retail player which equally

powerful as the Pantaloon in market.

49

3. Are there other kinds of differentiators of other companies which could take away

Pantaloon top position in the market?

Yes 50%

No 50%

Interpretation: Respondents are divided at question of any threat to Pantaloon’s top

position.

50

4. Does Pantaloon have any weaknesses compared to the competition in a key market

segment?

Yes 20%

No 80%

Interpretation: Most respondents think that Pantaloon has not any weakness compared

to competitors.

51

5. Is the market developing in ways that favour competitors more than Pantaloon?

Yes 30%

No 70%

Interpretation: Respondents don’t think that developing market anyhow favoring to the

competitors.

52

6. Could Pantaloon customers possibly move away and take major sources of revenue

away to a competitor?

Yes 32%

No 68%

Interpretation: Respondents don’t think that pantaloon customers will move away.

53

7. Is there a major area in the market where Pantaloon lags rather than leads?

Yes 44%

No 56%

Interpretation: Most of the Respondents don’t think that Pantaloons lags rather than

lead.

54

8. Does any competitor have a stronger hold on Pantaloon biggest customers?

Yes 40%

No 60%

Interpretation: Respondents don’t think that any competitor has stronger hold on

Pantaloon Customers.

55

9. Are there environmental/regulatory threats?

Yes 20%

No 80%

Interpretation: Most of the respondents don’t think that there is any environmental or

regulatory threat to Pantaloon.

56

10. Could unsuspected challenges arrive from outside the existing industry?

Yes 52%

No 48%

Interpretation: Respondents are almost divided on question of unexpected challenges

arrive from outside the existing industry.

57

FINDINGS

It was finding that Newcomers cannot create damaging competition to the

PANTALOONS.

There is other retail player which equally powerful as the Pantaloon in market.

Respondents are divided at question of any threat to Pantaloon’s top position.

Pantaloon has not any weakness compared to competitors.

Developing market anyhow not favoring to the competitors.

Respondents don’t think that pantaloon customers will move away.

Most of the Respondents don’t think that Pantaloons lags rather than lead.

Respondents don’t think that any competitor has stronger hold on Pantaloon

Customers.

Most of the respondents don’t think that there is any environmental or regulatory

threat to Pantaloon.

Respondents are almost divided on question of unexpected challenges arrive from

outside the existing industry.

58

CHAPTER IV

59

SUGGESTIONS AND RECOMMENDATIONS

A. FOR Shortages & Damages in Warehouse

Shortages & Damages in Warehouse

1. Shortage against PO:

Vendor/supplier sends stock only after they received Purchase Order from category team

or from the store according to the quantity that is demanded in the PO but sometimes

category team or store wants that stock mentioned in PO is not seen din bulk by the

vendor they instruct vendor that stock is send in 2 or 3 consignment because of the space

constraints so it is easy for WH and store to hold the stock. But this is not the problem the

real problem starts when WH and stores want full stock mentioned in PO but vendor does

not supply complete stock. When this situation arise then there is a shortage in the WH

and it is not able to fulfill the demand of the different stores and ultimately there is a

shortage in the stores and customer not find the required product in the stores.

Suggestions:

This problem is very critical and some of the possible solutions for this problem are that

the management applies deduction management techniques for solving this problem. If

any vendor is not able to fulfill our demands then company must deduct some amount

from the bill of retailer as a penalty for not fulfilling the demand. Company selects

minimum two vendors for any specific category of product so that if any vendor is not

able to fulfill the demand then we may switch to another one. Company should mention

clearly the terms about deduction and return in the agreement held with the vendor.

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2. Shortage due to theft during transportation:

When WH get stock from supplier then the first thing that is done after documents

check is counting of stock and this is most important because most of the time the actual

quantity does not meet with the quantity mentioned in the invoice (bill) and there are

various reasons for this difference like sometimes there is a counting mistakes during

packing of stock at vendor site but the most critical problem is theft during transportation

by drivers and when stock reach to the WH/stores then there is discrepancy in the stock.

As company is not responsible of this loss this is the problem of vendor and his

transporter company does not borrow that loss the real loss of company is only in terms

of shortage that occurs due to theft.

Suggestions:

Many times it is happen that counting of stock is not done just after unloading of stock it

is done some time after so if there is a shortage in stock then it is hard to convince the

vendor on this issue because vendor sends the right quantity but we don’t get the qty.

according to invoice so to eliminate these kinds of issues counting must be done at the

same time and a note is write on the vendor copy of bill so that vendor know that we get

less quantity. Security must check at the time of unloading that cartons are in good

condition and if there is any damage in cartons then security staff must note it.

3. Damages during transportation from vendor to warehouse:

We all know the condition of Indian transportation and about the worst condition of

Indian roads. Roads are not only the problem drivers are also the create problems many

times because they do not take their work seriously and alcohol is the major problem of

Indian drivers and sometimes it is very dangerous for the stock they carry and also for

61

many lives. If we talk about only roads then many times the stock get damaged due to

bad condition of roads and it is very hard to transport breakable items like glass and

crockery items and in addition to this if drivers do not drive carefully then it also increase

the chances of damage.

Suggestions:

When stock comes from vendor to WH and during this journey if any stock is damaged

then it is totally the liability of vendor but we must see that the stock which we get in the

WH is good in condition so we must check the stock properly and if any damaged is

found in the stock we send it back to the vendor as soon as possible because if we inform

them late then vendor think that damages occurs in the WH. We instruct our vendors that

stock is packed properly.

4. Shortage due to unavailability of finding material in Warehouse:

When stock comes in the store it first entered in the SAP and a GRN is made and after

that every one in the company sees the stock level in the warehouse through SAP. Stores

raise STN after see the stock level in the warehouse through SAP but there is also a

problem because when WH get stock transfer order from stores then a pick list is made

and employee pick stock from the warehouse according to that list. Employee pick stock

according to the article code print on the pick list they just go in the respective section

and find the mentioned article code which print on

the bar code attached with article but sometimes employee does not find some articles

mentioned on pick list in warehouse. There are many reasons for this problem either

because article is not placed at its proper location during inwarding or due to wrong entry

62

in the SAP during inwarding and this creates shortage in stores because WH is not able to

meet the demand of store.

Suggestions:

To solve this problem first we must train our employee about the method according to

which we put the stock in the racks and also tell them where is the particular category is

placed and try that the employee who put the merchandise in any section in the WH is

responsible for picking merchandise from that section only. We must use Bin cards in the

WH as they are not used in many When Article No. is properly printed on the bar code

tags.

5. Damages in the Warehouse:

Warehouses are made because it is hard to for stores to carry much stock because stores

are located in areas of very high property rents and every Sq. ft. of land is very costly and

company try to maximize the usage of this area and it is very hard to transfer stock from

different vendors to different stores and that is the reason for develop warehouses and

storage is one of the main function of WH so better storage is very essential for WH but

damages are also happens in WH. When stock is unloaded from the vehicle then it is very

essential to unload the stock very carefully but due to mistakes of employee sometimes

stock get damaged due to poor handling. Other problem is with the storage because if the

stock is not store properly in the right place then damages also occurs like if put

something on glass items or if we stake the stock very high and during handling it stock

may fall and it may damage. Handling stock inside the store is also a tough job if proper

conveyors are not available in the WH then it is very hard to handle the stock carefully.

63

Suggestions:

For handling damages in the warehouse the fist important thing is that company must

provide proper conveyors to the WH. Other thing is that the breakable items must not be

put near to the aisles like sanitary items, glass items and gift items etc and heavy items

like furniture and consumer durable must put near to exit gate of WH. Proper instruction

are also given on how to handle different type of stock and inform our vendors that they

must print proper information about which type of stock is in any carton and in spite of

writing we use signs for instruction.

6. Damages due to improper packaging

If we want to transfer any thing from one place to another then first and foremost

thing that you require is proper packaging without which no product is safe. So while

transporting goods from vendor to WH or from WH to store proper packaging is must but

due to lack of knowledge about the packaging in employees there is always risk of

damage. Employees in the WH does not use proper material used for packaging like

thermocol, proper size of cartons and proper packed it with tape so because of this there

is more risk of damage in loosely packed items

Suggestions:

I see that many of the employees do not know how to packed the stock and they take

carton of any size and put the merchandise in it and in this way it is completely the

wastage of cartons and stock is also not properly packed, so we must train our employee

about how to pack the different type of stock so that they do not pack stock loosely and

use proper type of carton this also take less space and less risk of damage.

64

7. Damages during transportation from warehouse to store:

We study how the damages occurs during transportation from vendor to WH in the 3

point above but those damages are very different from the damages occurs when we

transport stock from WH to store because when damages occurs during vendor to WH

then financially it is total loss of vendor but when stock is moved from WH to store then

our transporter is responsible for that and according to terms and condition transporter

pay for these damages but many times damages occurs due to bad packaging and proper

packaging is responsibility of WH employees but in some places Pantaloons outsource

the work of logistics to third party Indo Arya.

Suggestions:

From getting rid of these kinds of problem proper packaging is must and driver must

have a good in driving and as pantaloons transportation business is taken care by Indo

Arya so it is not the problem for pantaloon and all the damages that occur during

transportation Indo Arya is responsible.

8. Shortage due to wrong documentation:

We see so many causes of shortages and damages from warehouse point of view but this

last reason of shortage is very different from all of the above because in this case if we

make any mistake then it is complete loss of inventory loaded in a vehicle not just some

item shortage or damage this is happens when our employees make any mistakes in

documentation then there are chances that sales tax department seize the stock because of

improper documentation. If any employee dispatch stock without waybill or OC stamp

then it is against sales tax rules and it is illegal so if there is no OC stamp or waybill in

the WH then employee not dispatch the stock for stores and there may be shortage of

65

stock in stores. I see this in dare WH when there is no OC stamp in the WH and because

of this no out warding is done from the WH.

Suggestions:

Company must provide the proper documents, which are required for dispatch of stock

from WH, on time and instruct the WH that no stock should be dispatch without the

proper documentation.

OTHER RECOMMENDATIONS

1. In warehouse there must be clear distinction between the rows and some space is also

be there for easy handling of material.

2. A first in first out format is used to move stock out from the warehouse so that old

stock is not remaining in the warehouse.

3. Company instructs the vendors of Apparel category that they pack the shirts and

trousers in polycovers of better quality so that they are not comes out from the cover.

4. Vendors must see that bar codes are properly attached to the product because if bar

codes are not attached with product employees are not able to enter that item in SAP in

most of the cases.

5. If WH employee enter any article in SAP which is without bar code by see its article

code on other article of same type then he must put bar code on the product latter so that

same problem does not occur in the store.

6. WH must instruct employees that they open cartons of stock properly so that is used

again because most of the cartons get damaged employee do not open them properly.

66

B. For Shortages & Damages in Stores

SHORTAGES & DAMAGES IN STORES

Shortages and damages of the stores is very much different from the shortage and

damages of the warehouses because if there is any shortage for any merchandise then

customer for which we taken so much precaution is not able to find that merchandise in

the store so whatever steps we take to remove shortages from our system and we are not

able in fulfilling the demand of our customer then it is the failure of our system. In case

of warehouse we only know that we less quantity of that merchandise but customer does

not know that and when customer come for shopping in our store and we are able to meet

the demand of customer then we say that we are successful. Damages in the stores are

also very different because we can not hold the damage stock for a long period of time in

our store because of the space problem and we also check the shelves of the store on the

regular basis so that no damage/defective or expired date product placed in the shelves.

The various reasons of store level shortages and damages are discussed in this section:

1. Damages due to customers:

when shelves replenishment is done by store employees then many times they do not put

the merchandise at the right place and due to which it is easily damage when any

customer even touched with it. Many times we see that children take the merchandise

from the shelf and damage it and in most of the cases children take out the food items

from the shelves like soft drinks, biscuits, snacks etc. If children eat these items in the

stores and the packets are not reach up to the billing counter then it is complete loss but if

parents take empty packets or half filled packets to the billing counter and they pay for it

67

then it is not a problem. In cases when any merchandise damage due to the mishandling

of costumer and even then they are not ready to pay for that then it also a loss.

Suggestions:

The possible solutions for this problem are that the employees pay attention during

placing merchandise in the shelves. They must see that no merchandise is put outside the

shelf; no merchandise is put here and there in the store. For handling the damages occurs

due to children store must take care that they put food stuffs at some height so that

children do not touch easily. Proper paging is also done in stores for prevent the children

from damaging the merchandise. If any merchandise damaged by customer then

salesperson try to convince the customer for paying the charges for that and if customer is

not ready for that then staff must not force them.

2. Shortage due to uncertainty in demand:

“Uncertainty is the mother of inventory and father of stock out”

Uncertainty is the most common reason of stock out because when store order for the

stock then they consider only the normal demand but in many cases the demand get

increased and the store is not capable in dealing with such situation so there is shortage

like in case of big days there is shortage of many items.

Suggestions:

Department managers must consider the past demand in case of special discount days.

Before placing the order DM not only consider only one week sell they must see the

demand of the last season also and see the offers of the competitors in that reason.

68

3. Shortage due to theft (shrinkage):

Shrinkage is the most common problems for the retailers worldwide and theft is the cause

of both shortage and financial loss. Theft is mostly occurs in the items which are easily

comes in the pocket of customer and it of high price value like valet, sunglasses etc.

Suggestions:

For prevent the theft from the store security tags are the best options. Store must put the

security tags on the product according to its requirement like soft tags, hard tags etc. and

especially in case of high price products. Products like watches, sunglasses and valets

must put inside the glass counters. Salesmen and security pay special attention on the

customers on which they have doubts.

4. Shortage due to wrong allocation of stock by category team:

I have seen that the allocation of stock which is done by category team from the WH is

not done after seeing the requirement of that store and its location category team just

distribute the stock according to the availability of stock in warehouse and the price of

the merchandise due to which shortages occurs.

Suggestions:

Before allocating the stock to the stores category team must concerned with the store

team and allocation is done is done according to the requirement of stores.

69

Other recommendations for store level shortages and damages that I like to provide

in this report are as follows:

1. Stock must be transferred to the shelves in time that is before afternoon so that

customers do not feel problem.

2. If there is shortage for any item then any other stock placed in that shelf or if some

merchandise is present in that shelf then we must put these items like that the shelf does

not look empty.

3. Before placing any merchandise in shelves responsible person must see that the

merchandise and if any offer with it is properly entered in the REM so that it do not

create any problem when customer comes for billing of that item because I see in many

cases that offers on the products are not entered properly in the REM and due to which

many times store is not able to provide that item to customer inspite of presence of that

product in the store.

4. The damaged stock from the store must send back to vendor in time and do not store it

in the store if vendor do no take it then destroy it after taking permission from the

concerned person and from the vendor.

5. Non salable items like hangers for clothes, polybags etc are also used properly and if

any hanger is blank then employees must take it out from the Gondola.

70

CHAPTER V

71

CONCLUSION

After doing this project in Pantaloon Retail I understand how exactly the work is done in

the supply chain but after observing many things I reach to the conclusion that there are

still many gaps in the supply chain of the company and we must try our best to fulfill

these gaps so that we provide better service to our customers and also reduce our

operating cost because we are in value retailing so only cost cutting provides us better

margins and to archive all this we have to work hard and make strong relation with our

vendors, logistics service provider and with our customers.

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REFERENCES

REPORTS:

Indian Retail Report 2014-15

BOOKS:

Supply Chain Management by Chopra & Meindle

WEBSITES:

http://www.homecredit.co.in/about-us/home-credit-india-at-a-glance.aspx

http://www.homecredit.co.in/about-us.aspx

https://www.equitymaster.com/research-it/sector-info/finance/Investment-Finance-Sector-Analysis-Report.asp

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APPENDIX

QUESTIONNAIRE

Name of the Employee :-

Department :-

Designation :-

Work experience in Pantaloon :-

1. Could newcomers in the Retail Industry create damaging competition for

Pantaloon?

A)Yes B) No

2. Is there an equally powerful force as Pantaloon in the market who can muscle into our

territory?

A)Yes B) No

3. Are there other kinds of differentiators of other companies which could take away

Pantaloon top position in the market?

A)Yes B) No

4. Does Pantaloon have any weaknesses compared to the competition in a key market

segment?

A)Yes B) No

5. Is the market developing in ways that favour competitors more than Pantaloon?

A)Yes B) No

6. Could Pantaloon customers possibly move away and take major sources of revenue

away to a competitor?

A)Yes B) No

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7. Is there a major area in the market where Pantaloon lags rather than leads?

A)Yes B) No

8. Does any competitor have a stronger hold on Pantaloon biggest customers?

A)Yes B) No

9. Are there environmental/regulatory threats?

A)Yes B) No

10. Could unsuspected challenges arrive from outside the existing industry?

A)Yes B) No

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