8/8/2019 Acknowledgement Project 2
1/82
1
INTRODUCTION
Marketing is changing and if you are stuck in the old patterns of marketing you
may be taking your business down a destructive path. Consumers want more
engagement and interaction from those that they buy from. Our consumers have
faced an overstimulation of marketing messages over the last several years and
now in order to get their attention we have to come with new and innovative ideas
in order to get their focus on the particular product of the company.
Consumer are getting smarter and making choices. We are no
longer telling them what to buy; they are listening to other consumers and paying
attention to word-of-mouth marketing now more than ever.
As consumers we like to buy from people that others
recommend We like to purchase our products and services from people we feel we
have a relationship with.
Thus in short we can say that marketing is an on going process which
has many process which ultimately revolve around customer satisfaction because
in this present world if you can not satisfy the customer than your business is going
to be lacking behind Thus in order to keep the organization on the track the
marketing department undertakes much activity like pricing, competitor analysis
product designing, and packaging etc
8/8/2019 Acknowledgement Project 2
2/82
2
TOPIC REVIEW ABOUT COMPETITOR ANALYSIS
Thus Marketing should include competitor analysis on the part of the competitor
presence in the market. They should see the competitors presence in the market,
What are the customer needs and preferences is an organization competing to meet
and what they are being offered from others and What are the similarities and
differences between their products/services between the competitor and the
competing organization thus we should see what are the strengths and weaknesses
of each of their products and services and what are the prices they are offering to
the prospective customer because prices are the most important factor on which the
marketer has to focuses and we should also see the overall working of the
competitor on day today basis on the basis of which the strategies could be made
because the customer they are dealing we to deal that prospective customer too
8/8/2019 Acknowledgement Project 2
3/82
3
EXECUTIVE SUMMARY
Every student of post graduate diploma in management at Institute of environment and
Management College has an essential requirement to do Six to Eight weeks summer
training in any of the well reputed organization. The purpose of this program is to
acquaint the students with practical applications of theoretical concepts taught to us
during conduct of their PGDM program; it was a nice opportunity to have a close
comparison of theoretical concept in practical field, involving the use of the main
objective of the project.
Thus the main objective of the is to get the full knowledge
of the products of the HBL Power system ltd and what are they doing to get the
customer loyalty, to maintain there market in the respective field in respect of the
competitors presence in the market. This is also to find the preferences of customer
and there market knowledge and product information, information about the
presence of the rivals of HBL power system like Exide, Amaron okaya, Amco etc
and all the other options they have in the market.
What are the techniques they adapt to?
Know about the preferences and changing needs of customer?
HBL is also looking to tap the market in the segment by entering in automotive,inverter batteries.
8/8/2019 Acknowledgement Project 2
4/82
8/8/2019 Acknowledgement Project 2
5/82
5
And also manufactures products required by many sectors thosecompanied are as follows.
DELTA
ACME
EMERSON
HBL POWER COPORATION Etc are the kind of the companies which
manufactures equipments like PIU (power interface unit) for telecom, IPS
(integrated power supply) for railways etc is some of the equipments which are
being made by them. Thus these are the companies which are manufacturing
batteries used in commercial and non commercial purpose and the companies
manufacturing other Equipments used by other sectors e.g. railways,
telecommunication, defense, industries, are being wholly are the part of theindustries.
8/8/2019 Acknowledgement Project 2
6/82
6
COMPETETIVE SITUATIONCut throat competition prevails in all form of business in todays world whether it
could be any form of business organizations due to changing condition of market
and consumer behavior pattern thus in order to fulfill the requirements of the
consumers the companies always tries to give them better than other which enables
them to compete them with watch other on the bases of different grounds.
Like wise under this industry stiff competition is prevailing the major player
which are manufacturing batteries like Amaron, Exide, HBL and others which are
producing batteries of all the categories e.g. tow wheelers, cars, trucks etc.
Competition is being done one the basis of some factors they are as follows.
1. On the basis of prices.2. On the basis of service provided.3. On the basis of product differentiation.
On the basis of services the competition is being done among each other
on the basis of the after sales services provided by the company to the
prospective customers like warranty, guarantee etc
Some of the company provides warranty for 24 months,
36 months and for a year and also replacement guarantee under some
conditions.
Like - Amaron replaces batteries up to 50%,
Exide replaces batteries up to 5% and,
HBL power system replaces batteries up to 90%.
8/8/2019 Acknowledgement Project 2
7/82
7
And also gives after ales service to their prospective customers related
maintenance of various kinds of batteries like cars bikes trucks inverter
batteries etc.
On the basis of product differentiation- there are number of different
variety of product are being produced by the companies in order to give the
customer the desired range of product so that it can not easily for them to
switch to another companies product.
Like Exide produces 7 or 8 kinds of batteries, Amaron
produces batteries of 10 to 15 and HBL produces more than 20 different
kinds of batteries for different segments of the society.
Apart from other product some of them produce goods for
defense like Exide produces batteries for submarine and HBL produces also
produces various other products used in many other defense armaments.
On the basis of prices- the competition in this industry being also prevails
on the basis of prices because prices of the goods is such which effect
preference of the prospective customers thats why prices is being set up in
such a way that it should be suitable for him and also should be fixed while
watching the cost of the product of the competitor of the industry because if
the prices will slightly high the consumer will switch to another companies
product.
Thus in market the major players which are giving HBL the
competition are Exide, Amaron, Okaya, Amco, luminous etc are some of the
players
8/8/2019 Acknowledgement Project 2
8/82
8
Glimpse about the Players in the Market
LUMINOUS:-
Luminous Power Technologies (P) Limited is a leading global company
delivering high quality power products for home and commercial
applications. The companys portfolio also includes products and services in
telecom infrastructure & renewable energy systems like solar, wind and
hybrid solution
The group businesses include Power Backup, Power Storage, Distributed
Power Generation, Renewable & Alternate Energy solutions and Physical
infrastructure solutions for IT & Telecom, Engineering Design & Support
services, Plug-in Hybrid Electric Vehicles and mobile phones & accessories.
Luminous apart from its dominating position in the domestic market has
strong foothold in over 32 countries worldwide. Its Global Technology
8/8/2019 Acknowledgement Project 2
9/82
9
Centers located in India, United States & China delivers cutting edge
technology that goes into making every luminous product a class apart from
its competitors. Luminous follows its proprietary UGC (Universal Grid
Compatibility) process to ensure consistency & very
High standards of reliability for its products across the globe. Luminous has
been consistently winning awards & accolades for market leadership and
excellent reliability of its products in domestic as well as international arena.
Luminous is the proud recipient of Frost & Sullivan Industry Technological
Leadership Award for market penetration in DC-AC Inverters in Non
Renewable Energy markets in Asia Pacific.
8/8/2019 Acknowledgement Project 2
10/82
10
AMCO
AMCO Batteries Limited of the Amalgamations Group is the leading batteries
manufacturer with a wide spectrum of world class high performance
polypropylene batteries for the automobile industry. AMCO is also one of the
leading manufacturerTwo Wheelers and the preferred choice for the Bikes, Scooters, Cars
and all other passenger vehicles. AMCO also supplies batteries to many companies such as
Hero Honda, TVS, HMSI, Yamaha, Bajaj, Royal Enfield etc. The company has a
track record of supplying 4-wheeler batteries to TAFE Tractors, Eicher Tractors,
Cummins India Ltd, Sonalika Tractors etc.
8/8/2019 Acknowledgement Project 2
11/82
11
OKAYA
We at OKAYA produce World Class Batteries for various Industrial & Domestic
utilities. We have products for any segment be it Telecom, Railways, UPS,
Inverters, Photovoltaic,E
V projects etc. Having five manufacturing plants, eachspecializing in different sphere of the industry has made it possible for OKAYA to
harness the World's latest technology, perfect it and incorporate it in its product
range, for the user's benefit. Through its consistent focus on quality, company
awarded by ISO 9001:2000 and ISO 14001:2004 certifications.
8/8/2019 Acknowledgement Project 2
12/82
12
Exide
Exide Industries Limited, India's flagship of the storage battery industry- is also
the largest Power Storage Solutions Company in South and South East Asia. It
designs, manufactures, markets and sells the widest range of lead acid storage
batteries in the world from 2.5Ah to 20,600Ah capacity, to cover the broadest
spectrum of applications.
Formerly known as Chloride Industries Limited, the company was a part of the
Chloride Group plc, UK. The leader in packaged power technology, Exide today
is India's largest storage battery company with widest range of both conventional
flooded as well as latest VRLA batteries.
It has Six factories strategically located all over India.
Collaborations with Shin Kobe and Furukuwa of Japan and Oldham of UK give it
a global dimension in manufacturing capability.
The company has subsidiaries in the UK, Singapore and Sri Lanka. Exports span
18 countries across five continents in a growing list of overseas customers.
Technology, innovation, quality and country-wide service network are the four
8/8/2019 Acknowledgement Project 2
13/82
13
pillars on which Exide achieves its high pedestal.
The R&D Center, set up in 1976, is counted among the premier battery research
facilities in the world and is recognized by the Department of Scientific &
Industrial Research under Ministry of Science & Technology, Govt. Of India.
Recognition of our pursuit of quality was achieved when RWTUV of Germany
awarded us the ISO 9001. We have also received ISO 14001 Certificate in
recognition of our eco-friendly production process.
For customers all these attributes transcendE
xide from a manufacturing companyto a solution provider. After all who can provide all these benefits together with its
wide range of products, the ability and competence to guide a user to select the
right battery for a particular application, skilled and experienced engineers for
erection commissioning and assured professional assistance throughout the service
life of a battery
Is some of the example of the competitor who all is competition to
HBL power systems in the market.
8/8/2019 Acknowledgement Project 2
14/82
14
COMPANY PROFILE
Background
HBL Power Systems Ltd has more than 30 years of experience and also
being acknowledged in the field of specialized Batteries and DC PowerSystems in INDIA. The company is the result of a merger between
Hyderabad Batteries Limited (1977) and SABNIFE Power Systems Ltd
(1986) in 1999. The company has its Head Quarters in Hyderabad, India
with factories and Sales Offices in various parts of the country. HBL also
has Offices, Distributors and Agents all over the Globe to cope up with its
ever-growing Export Business.
HBL power system is an organization which focus on batteries and
electronics and focus on customers in five major sectors and manufactures
products according to their needs the sectors are as,
INDUSTRY
RAILWAYS
DEFENSE
AVIATION
TELECOM
8/8/2019 Acknowledgement Project 2
15/82
15
Which gives HBL an opportunity to meet diversify customer needs, India.
And also HBL is being listed on BSE (Bombay StockExchange) and NSE
(national stockExchange).
HBL is committed to improving global competitiveness by sharing
knowledge, drive for innovation & growth, and investments in
internationally benchmarked technology & niche products.
INFRASTRUCTURE
The factories and various sales & services offices of the HBL power
corporation are being located in major cities of India nationwide and service
centers more than 100 locations with in the country from where all the
operations of the company are being managed by the dedicated employees of
HBL power system. Various locations of HBL power system factories
situated in India are as follows.
SHAMEERPET
8/8/2019 Acknowledgement Project 2
16/82
16
NANDIGAON
HARIDWAR
BHOOTHPUR
8/8/2019 Acknowledgement Project 2
17/82
17
VISAKHAPATNAM (VSEZ)
VIZIANAGRAM
(Above are some of the sites of the factories of HBL power system ltd in India)
8/8/2019 Acknowledgement Project 2
18/82
8/8/2019 Acknowledgement Project 2
19/82
19
RECENT ACHIEVEMENTS OFTHE COMPANY
1.HBL Power Systems Ltd. Announces Setting Up Of JointVenture Company in Saudi Arabia to Manufacture
Industrial Batteries
HBL Power Systems Ltd. announced that it is the process of setting
up a Joint Venture (JV) Company in Kingdom of Saudi Arabia (KSA)
with Advance Electronics Company Ltd (a Government Offset Partner
Company) and Abdullah H Al Shuwayer & Sons T&C Co Ltd as local
JV partners. The JV Company will be named as Gulf Batteries
Company Ltd. The proposed JV is to setup a unit to manufacture
industrial batteries (NICAD, VRLA & LMLA) in the eastern province
of KSA at an estimated project cost of about $28 million, which will
be completed in three phases by 2011-12. HBL Power Systems' share
in the equity of JV Company will be about $2.9 million, which works
out to 40% of the total paid up equity Capital of the JV. An agreement
to the above effect was executed by all the partners in January 27,
2009.
8/8/2019 Acknowledgement Project 2
20/82
20
Organizational Structure
Chairman & Managing Director Dr. A J Prasad
Director Battery Technology Mr. Ashok nagarkatti
Director Operations Mr. J K verma
Directors Mr. P Ganapathi Rao
Mr. M S Ramakrishna
Mrs. Preeti Khandelwal
Mrs. M Kavita Prasad
Mr. V V Rao
COMPANY SECRETARY Mr. D Mabu Basha
8/8/2019 Acknowledgement Project 2
21/82
21
PRODUCT RANG
E OF HBLHBL Power system manufactures products for various markets of the industry like
railways, industry, telecom, defense and aviation the products of various sectors
are as follows.
RAILWAYS:-
(In railways signaling and level crossing warning)
-Batteries for Locos, coaches, signaling-
Nickel cadmium
Lead Acid
8/8/2019 Acknowledgement Project 2
22/82
22
Electronics
Train Charting &data logging
HF and Audio Track circuits
Electronics Interlocking Systems
Level crossing gate warning systems
SERVICES
HBL Rail also offers IPS for railways stations and does turnkey
signaling works on contracts including design, installation and
commissioning.
DEFENSE:-
PRODUCTS-
Electronics fuses
8/8/2019 Acknowledgement Project 2
23/82
23
Mines and grenade electronics
Laser weapon sights
Secure communications, Field Telephone Exchanges.
And various kinds of batteries
TELECOM:-
IT MANUFACTURES BATTERIES LIKE
Valve Regulated Batteries
Low Maintenance Lead Acid
Pure Lead Tin VRLA etc
8/8/2019 Acknowledgement Project 2
24/82
24
AVIATION
Nickel Cadmium Sintered Plate
SilverZinc
Pure Lead VRLA etc
INDUSTRY
Pure Lead Tin VRLA
Low Maintenance lead Acid
Valve Regulated Lead Acid
Nickel Cadmium Pocket Plate
Custom built battery charger
AC+DC Distribution Board etc
8/8/2019 Acknowledgement Project 2
25/82
25
THIS ARE THE VARIOUS KINDS OF BATTERIES AND ELECTRONICS ITEMS WHICH
ARE BEING MANUFACTURED BY HBL power system for the market segments stated above
8/8/2019 Acknowledgement Project 2
26/82
26
PRODUCT STATUS OF INDUSTRY
Among the products manufactured by organized sector are Batteries,
automotive Battery, Inverter Battery, UPS Battery, etc.
As the automotive segment of the industry is one of the organized sector of the
industry which constitute of many national and international companies as the
technology is improving in the automobiles sector need of better power source
requires to start up the latest cars, bikes and other commercial vehicles thus new
technology and improvements in the secondary power source which make them
starts and run on the roads like many companies introduced low maintenance
battery in the market under which there is less requirement to change he water in
can be changed in once a year \
Like wise the automotive product of HBL is egnite and Excel which are
the name of the batteries which are used in battery operated operated vehicle bikes
cars commercial vehicles trucks apart from it, it has mf battery for auto segment
means the are water free or dry battery
Liberalization of the economy has led to a flood of new entrants, including MNCs
due to good prospects and abundant supply.
8/8/2019 Acknowledgement Project 2
27/82
27
RESEARCH AND DEVELOPMENT IN BATTERIES
INDUSTRY:
The research and development need to the batteries industry to develop and
survives for long time with better status. The various institute and batteries
companies R&D results provide base for todays industry growth and
development. The research and development of products of battery, like battery
market research and company reports provides insights into product and market
trends, analysis opportunities, sales and marketing strategies will help local battery
unions to develop and spread world wide through obtaining this knowledge.
Specific on market share, segmentation, size and growth in the US and global
markets are also helps industry to expand its market worldwide even small unionalso.
8/8/2019 Acknowledgement Project 2
28/82
28
FINANCIAL POSITION OF THE
COMPANY
NO. Particulars 2008-09 2007-08
1. Net Sales 124390 97276
2. Operating Profit before interest,
Depreciation and 19977 15480
Extra-ordinary items
3. Other Income 509 370
4. Finance Cost 3883 3175
5. Depreciation 2784 1546
6. Extra-ordinary losses/non-recurring cost 136 103
7. Provision for tax & tax adjustment 4372 4075
8. Deferred tax liability 215 242
9. Net Profit 9096 6709
8/8/2019 Acknowledgement Project 2
29/82
8/8/2019 Acknowledgement Project 2
30/82
30
During the next 18 months. This 18 months plan involves a capex ofRs.340 crores,
including term loans ofRs.250 crores. This is part ofRs.240 crores capex planned
last year.
DIVIDENDS:
Your Directors are pleased to recommend a dividend ofRs.3/- per equity share of
Rs.10/-fully paid up share @30% (Previous Year 15%) for the Financial Year
2008-09, subject to the approval of the members at the ensuing Annual General
Meeting. The proposed dividend including Corporate Dividend Tax will absorb
Rs.852.17 lakhs.
8/8/2019 Acknowledgement Project 2
31/82
31
SHARE HOLDING POSITION OF THE COMPANY
PROMOTEROWNED SHARE 70.19%
PUBLIC OWNED SHARE 14.30%
FII OWNED 7.75%
OTHERS OWNED 7.76%
PROMOTER
OWNED,70.19%
PUBLIC
OWNED, 14.30%
FIIOWNED,7.75%
OTHERS
OWNED,7.76%
8/8/2019 Acknowledgement Project 2
32/82
32
SECTION-2
8/8/2019 Acknowledgement Project 2
33/82
33
PROJECT PROFILE
INTRODUCTION
As the title of the project is competitive analysis of battery market with reference
to the city of Lucknow the focus of the study is to analyze the market condition
prevailing and the competitive situation among the competitor in the market
because as the current scenario is of the cut throat competition in any field of
market and also t becoming hostile because of new entrants in the markets.
As the market is becoming diversified and many companies which act as the giants
in the Indian market of specialized batteries like Exide, Amaron , HBL, AMCO,
luminous etc are ruling the market in meeting the demand by manufacturing
substitute source of energy as batteries which are not being used by house hold as
inverter but also automobiles batteries which is needed as starter also in backing up
computers power by manufacturing ups batteries not only this but also manufacture
the batteries and electronics components which are being used by different sectors
like railways, defense, aviation, telecom sectors of the country.
8/8/2019 Acknowledgement Project 2
34/82
34
The study then goes on to evaluate and analyze the findings so as to present a
clear picture of trends in battery market prevailing in the market.
Because many companies are aiming for high satisfactions who are
highly satisfied are much less ready to switch. High satisfaction creates an
emotional bind with the brand not just a rational preference. The result is highly
customer loyalty. Hence an attempt has been made to identify the customer attitudeand satisfaction on HBL BATTERIES.
8/8/2019 Acknowledgement Project 2
35/82
35
Objective of Studies
As per as the topic of the project report as competitive situation analyses in respect
to HBL batteries in accordance with the Lucknow city which enables us to analyze
the competitive situation of the battery market.
To see the impact which HBL has given to the marketTo see the consumer preference in respect with the other companies batteries
present in the market.
To give suggestion for the improvement and growth of automotive segmentsbatteries to HBL.
To see what sought of policies adopted by the companies attract theconsumer
To see the response of SMF batteries in the marketTo see during the survey who is the good service provider
8/8/2019 Acknowledgement Project 2
36/82
8/8/2019 Acknowledgement Project 2
37/82
37
Project Methodology
Problem identification
8/8/2019 Acknowledgement Project 2
38/82
38
RESEARCH DESIGN
The Research Design of my project is based on two methods which are as follows:-
Descriptive
R
esearch
Exploratory Research
DESCRIPTIVE RESEARCH:-
As descriptive research includes survey and fact finding enquiries of different from
different kinds of respondents whose data provided could be analyzed and a result
can be achieved.
As we know in this kind of method is used it is termed as most ex post
facto research in which researcher tends to measure such items as preference of the
people, buying behavior etc descriptive research is mainly conducted through
survey under which comparative and correlative measures are being used
8/8/2019 Acknowledgement Project 2
39/82
39
EXPLORATORY RESEARCH:-
This is a flexible design which must provide opportunity for considering different
aspects of the problems and by building hypothesis the result can be predicted and
the interpretation can be give. The research conducted is primarily both
Exploratory as well as descriptive in nature. The sources of information are both
primary & secondary.
A well-structured questionnaire was prepared and personal interviews were
conducted to collect the customers and various dealers and shopkeepers
preferences in using different kinds of batteries which can be said as most
important part of an vehicle whether commercial or personal, because with the help
of an battery the vehicle starts.
8/8/2019 Acknowledgement Project 2
40/82
8/8/2019 Acknowledgement Project 2
41/82
41
SECONDARY DATA
The secondary data are those which have already been collected by
someone else and which have already been passed through statistical problem. The
methods of collecting primary and secondary data differ since primary data are to be
originally collected while in case of secondary data the nature of data collection work is
merely that of compilation.
Secondary data collected from
Through ReferencesOffice data baseWeb SitesBooks
8/8/2019 Acknowledgement Project 2
42/82
42
SAMPLING PLAN
It contains the following things.
SAMPLING UNIT:-
The respondents who were asked to fill out questionnaires are the sampling units. These
comprise of dealers of batteries of batteries, single proprietor in this business and those who
produce their own battery operate houses like banks
SAMPLE SIZE:-
The sample size was restricted to only certain about to around 95 to 96 units, after rounding of
turns out to be 100 which comprised of mainly peoples from different areas of Lucknow due to
time constraints.
SAMPLING AREA:-
The area of the research was LUCKNOW, UTTARPRADESH
SAMPLING PROCEDURE:-
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy of the Questionnaire. The final Questionnaire was
arrived only after certain important changes were done. Thus my sampling came out to be
judgmental and continent.
8/8/2019 Acknowledgement Project 2
43/82
43
Limitation of the study
y The area of coverage was limited to the different areas of Lucknow.y Sample size was limited to 110 and respondent turned were around 97.y Some of the respondent hesitated and didnt want to share the information
regarding different product.
y Time was also one of the problems regarding the survey
8/8/2019 Acknowledgement Project 2
44/82
44
Section-3
8/8/2019 Acknowledgement Project 2
45/82
45
THEORITICAL DUSCISSION ABOUT THE TOPIC
The past couple of years have been a roller-coaster ride for players in the Indian
lead acid battery market. From being powered by a virtual monopoly, this market
has witnessed a slew of new product introductions, technology innovations, the
emergence of domestic competition, joint ventures, and corporate consolidations
that have totally altered its landscape.
The lead acid battery market can be divided into two broad market spectrums:
industrial and automotive batteries.
Automotive Battery Segment
Liberalization of the Indian economy in the early 90s brought about a phenomenal
change in the Indian automobile industry. Through joint ventures or completely
owned forays, a number of leading international auto giants have entered India and
established their production bases. Their demand for world-class batteries for their
vehicles urged Indian battery manufacturers to tie up with international players or
buy technology, so as to upgrade their offerings to meet the high standards
expected.
With consolidation and growth being the maxim of most auto players today, we are
seeing increased participation and partnership of battery manufacturers with auto
players in creating battery solutions for new vehicle introductions.
8/8/2019 Acknowledgement Project 2
46/82
46
The automotive segment contributes in excess of 55 percent of the total turnover of
the Indian lead acid battery market. Automotive batteries are SLI (start, light, and
ignition) batteries, though they are expected to fuel a greater number of functions
including in-vehicle entertainment systems, power steering, power locking, power
window systems, etc. Demand for auto batteries can be divided into the OE
(original equipment) market and the aftermarket segments. Growth in the former is
driven by automobile production in a concerned time frame.
This is a difficult segment to service as each automobile manufacturer has different
specifications for which the battery has to undertake mass customization.
Additionally, margins for battery manufacturers are usually thin in this segment
due to the bargaining power of the auto majors. However, inherent advantages
such as a steady source of production and revenue, and strong brand recall during
battery replacement make this an attractive segment for battery manufacturers.
The past couple of years have been bumpy in the automotive sector. This has
reflected in the performance of the battery market. While there has been a drop in
HCV and LCV (Heavy and Light commercial vehicles) segment sales, there has
been an increase in sales in the passenger car and two-wheeler segments. Though
this has not offset the sales loss, it has helped soften the blow.
The replacement market has a sizeable small player component - as this was
traditionally in the realm of the small scale sector. These players have hence been
able to offer new/reconditioned unbranded or lesser known branded batteries at
very attractive rates. The replacement market is where the margins are, and hence
battery majors are now paying a lot of attention to this segment. With the
introduction of sealed long-life batteries by these players in the OE and
replacement market segments, there could be a drop in battery sales in the
8/8/2019 Acknowledgement Project 2
47/82
47
replacement market for relatively new vehicles. However, this market is still
substantial, considering that the discerning Indian vehicle owner is today more
quality and brand conscious and hence willing to pay more to be free from battery
problems.
The market leader in this automotive battery segment is Exide Industries Limited.
The other players include Tudor India and Amoco Batteries. Amara Raja battery
and HBL batteries which are relatively new player in the auto battery segment, has
made very impressive inroads into the market.
Industrial Battery Segment
Compared to the automotive battery market, the industrial market is a steadier,
growing market. Batteries here are used as a rugged high-drain standby source of
power. These can be used for moving power and stationary applications. Moving
power application batteries are used in trains, forklifts, submarines, etc. The
demand for stationary batteries is substantially higher and these are used in
applications such as UPS systems, telecommunication networks, power plants, etc.
Industrial batteries are of three types - conventional flooded (lead acid) batteries,
valve regulated lead acid (VRLA) batteries, and nickel cadmium batteries. VRLA
batteries have, within a very short period of time, gained leadership as the highest
selling industrial batteries, replacing conventional batteries. The VRLA battery
works on the principal of valve venting, by which gas discharge produced in
chemical reactions inside the battery is safely released thereby averting potentialexplosions.
With the emergence of India as an IT super power, and the liberalization of the
wired and wireless telecom sector, there has been a swift rise in deployment of
8/8/2019 Acknowledgement Project 2
48/82
48
computer and communication networks at infrastructural and organizational levels.
This has augmented the demand for industrial batteries, and this trend is only
bound to increase as India continues to develop the service sector that includes call
centers, data centers, banking networks, etc.
The industrial battery market has a few established players as capital investment in
technology and the manufacture of these batteries is considerably high, compared
to investment in the automotive battery industry. The per-unit realization is also
substantially higher than that of automotive batteries, but the frequency of
purchase is limited. This also acts as a barrier for players in the unorganized sector
to enter this market. Amara Raja, HBL Batteries are the strong player in the
industrial battery segment.
OTHER ISSUES
Some of the other issues affecting the Indian lead acid battery market include are
as follows:
ENVIORNMENTAL CONCERN
THREATS OF IMPORT AND DUMPING
8/8/2019 Acknowledgement Project 2
49/82
49
Environmental Concerns
Lead, a major component of the lead acid battery, has to be handled very carefully,especially during smelting, disposal, and recycling. Based on environmental norms
set in the late 90's, today only authorized plants are able to recycle lead. This has
had an adverse effect on the unorganized market.
Threat of Imports and Dumping
With the progressive dismantling of the import norms in 1999 and inclusion of
batteries into the open general license, there is increased threat of cheap substitutes
to the locally available batteries from players in Thailand, Bangladesh, China,
Taiwan, Japan, Korea, etc. These cater mainly to the replacement market where
price sensitivity is critical.
Some local players are importing batteries to cater to segments that are rendered
unfeasible for them to invest in manufacturing. These could be from their foreign
principals or from tie-up partners. Some of the arguments against the import threat
are the high cost of setting up a distribution network, requirement to "tropicalize"
the batteries to meet Indian conditions, and strong brand image of existing brands.
Based on a petition by Exide Industries Limited and Amara Raja Batteries, the
government initiated investigation into certain battery imports from Chinese Taipei
(Taiwan), Singapore, and Hong Kong on the grounds of dumping. Subsequent to
this, the Indian Government has recently declared an anti dumping duty to be
levied on these imports.
8/8/2019 Acknowledgement Project 2
50/82
50
Profile of Major Players
Exide Industries Limited (EIL)
EIL is the overall leader in the Indian lead acid batteries market. Not to be
confused with Exide Corporation of the United States, this organization traces its
origins to Chloride Industries U.K. and is currently owned by the Rajan Raheja
group.
Being one of the oldest players in the market, EIL's biggest strengths include its
strong brand recall, its presence in all business segments of the battery market, and
its wide reach of dealers. With timed acquisitions of the lead acid battery business
of Standard Batteries in India, and recent acquisitions in Singapore and Sri Lanka,
EIL has ensured that it has leadership position in all segments of the market-
especially in the OEM segment of the automotive battery market. EIL has forayed
into the maintenance-free battery segment with the Exide Freedom range of
batteries, which is making impressive inroads into the market. It also acquired a
stake in a charger manufacturer to integrate this segment, and is looking to
backward integrate its operations by manufacturing separators.
EIL entered the VRLA segment of the industrial batteries market later than its
competition, but has been able to catch up. This was facilitated by a tie-up with
Shin Kobe, with whose assistance they have set up a modern production facility at
Mysore in South India recently.
EIL has always adopted innovative marketing and product strategies. Rural and
semi-urban India is still plagued with power shortage. EIL realized this potential
and introduced a range of products to cater to this segment. The company has also
8/8/2019 Acknowledgement Project 2
51/82
8/8/2019 Acknowledgement Project 2
52/82
52
Tudor India
Tudor India is owned by Exide Corporation of USA through its British subsidiary
CMP Batteries. Tudor is a key player in the automotive battery aftermarket with its
Prestolite range of automotive batteries.
Looking Ahead
Owing to increased domestic competition, Indian lead acid battery manufacturers
will be forced to invest strongly in their product R&D, brand building, competitive
pricing, and a very effective distribution network.
Another area that players would have to continue focusing on is the export market.
Exports would offer opportunities to offset low domestic demand and capacity
under-utilization, despite the fact that export returns may not be as high as
domestic returns. Players would have to leverage their tie-ups and international
acquisitions to capitalize on these opportunities.
By investing in R&D, these players would be able to offer niche products that
propel them ahead of the low-price fiercely competitive segment. On the industrial
front, battery manufacturers would have to constantly upgrade their offerings for
the telecommunication and IT industry, taking into consideration the requirement
8/8/2019 Acknowledgement Project 2
53/82
53
to expand power storage and discharge capacities, while reducing storage spaceoccupied at installations and charge time.
On the automotive front, domestic demand from the automotive sector is bound to
rise. Delphi Automotive Systems Pvt. Ltd., a subsidiary of Delphi Automotive
Systems USA - one of the largest players in the global automotive battery segment,
has entered this market segment following FIPB (Foreign Investment Promotion
Board) approval to commence seed marketing of its range of batteries. It is also in
the process of commissioning its own manufacturing facility shortly. Batteries of
Panasonic, Japan and Varta, Germany are being imported and marketed in India.
Existing battery majors would have to work closely with automobile manufacturers
to retain their market shares in the OE segment, considering increased competition
in this segment.
Innovative attempts in the domestic battery replacement market to de-commoditize
batteries would earn them rich dividends. Supplies to niches such as the electric
vehicle segment could also offer interesting opportunities.
Given their track record so far, it seems certain that the major players in the Indian
lead acid battery market will continue to power their way ahead by tapping the
tremendous potential of this market.
8/8/2019 Acknowledgement Project 2
54/82
54
SECTION 4
8/8/2019 Acknowledgement Project 2
55/82
55
ANALYSISTOPICS
y SAMPLE PROFILEy TABULATION OF DATA COLLECTEDy INTERPRETATIONy SWOTy SUGGESTION, FINDINGSy CONCLUSION
8/8/2019 Acknowledgement Project 2
56/82
8/8/2019 Acknowledgement Project 2
57/82
57
TABULATION AND INTERPRETATION
To convert the available data into useful information the analysis is done with
respect of usage of graphical method statists method
: - TYPES OF DEALERS DEALING IN DIFFERENT
BATTERIES
COMPANY NAME DEALERS PERCENTAGE
EXIDE 54 54%
AMARON 26 26%
OTHERS 20 20%
DEALERS DEALING IN NO OF COMPANIES
EXIDE
AMARON
OTHERS
8/8/2019 Acknowledgement Project 2
58/82
58
INTERPRETATION
As the graphs shows the market shared by the different players in the automotive
segments of the battery market in respect to Lucknow the major part of the market
is being shared by the Exide batteries is up to 54% of the market area and Amaron
has covered over 26%of the market and 20% of the market is being covered by
another company like AMCO, HBL and other companies
Thus we can see from the above data thatE
xide is one of themajor player in the automatic segment and Amara raja automotive batteries can be
seen as the player which is making its place in the market thus the players which
are as AMCO, HBL, STANDARD etc is also making the statement in the market
Form the above statement we can see that EXIDE is loosing its share
in the market with the other emerging which are giving it the tough competition.
8/8/2019 Acknowledgement Project 2
59/82
59
: - SERVICES PROVIDED BY THE COMPANIES
Comparison is being made on the basis of service provided by EXIDE and HBL
METHODOLOGY USED: -
Chi- square test to compare the better service provider between the two companies
HYPOTHESIS
HYPOTHESIS PARAMETERS
HO-(Null hypothesis) = are customers satisfied with the service of it
HO-(Expected hypothesis) = are customers satisfied with the service of HBL
The data collected is being given below on the basis of which the test will be
applied
Satisfied Not satisfied total
Exide 65 35 100
HBL 80 20 100
140 55 200
8/8/2019 Acknowledgement Project 2
60/82
60
TESTING ON THE BASIS OF HYPOTHESIS
Observed
frequency
Expected
frequency(E)
Q-E (Q-E)^2 (Q-E) ^2/E
65 (100*100/200)=55 65-55 = 10 100 100/55 =
1.818
35 (100*55/200)=27.5 35-27.5= 7.5 56.25 56.35/27.5 =
2.045
80 (100*140/200)=70 80-70 = 10 100 100/70 =
1.428
20 (100*55/200)=27.5 20-27.5 = 7.5 56.25 56.25/27.5 =
2.045
= 7.3361
DEGREE OF FREEDOM
(C-1) (R-1)
= (2-1) (2-1) = 1
SIGNIFICANCE LEVEL =5%
The value of 5% at1 of degree of freedom is 3.841
8/8/2019 Acknowledgement Project 2
61/82
61
INTERPRETATION
Thus from the above analysis after comparing the the value of DOF with the
significance level figure so we can say that the service provided by HBL is better
than that ofEXIDE because some of the respondent were not satisfied with its ater
sales service where as HBL is growing concern the amount of customer which it
had in the market are satisfied with the service because HBL replaces the battery of
the customer which is having problems in their battery more frequently than any
other company does it.
8/8/2019 Acknowledgement Project 2
62/82
62
: - DETERMINING THE VARIOUS MARKETING MIX
ADOPTED IN THE MARKET
PRODUCTS PRICES PROMOTION DISTRIBUTION
EXIDE HIGH QUALITY
AVERAGE
SERVICES
HIGH
PRICES
Newspaper,
TV. adds print
adds
Through wider
network of
dealers
AMARON HIGH QUALITY
PRODUCT,BETTER
SERVICES
UPPER
MEDIUM
PRICES
Newspaper,
TV. adds print
adds
Through wider
network of
dealers
HBL HIGH QUALITY,
GOOD SERVICES
MEDIUM
PRICES
Through
pamphlets
broachers
Not distributed at
large scale of
dealersAMCO AVERAGE
QUALITY
SATISFACTORY
SERVICES
LOW
PRICES
Newspaper ,
magazines etc
Through wider
network of
dealers
8/8/2019 Acknowledgement Project 2
63/82
63
: - CUSTOMER PREFRENCE OVER THE BATTERY PRESENT IN THE
MARKET BASED ON THE FOLLOWING FACTOR
Price
Brand
Service
Brand
RESPONDENTS
Number of respondent were 110 turned on 97 and rounding them of it becomes
100
DATA FORMULATED IN THE TABLE
Response Percentage
Quality 36 36%
Service 42 42%
Brand 30 30%
8/8/2019 Acknowledgement Project 2
64/82
64
: - APPLYINGGRAPHICAL METHOD FOR REPRESENTATION
INTERPRETATION
From the above situation we can see that people generally go toward the
companies which provides good service rather than the brand name or the type and
secondly comes the response of the towards the brand as per the survey many said
the big company do give good product thus they are being preferred by the
customers
33%
39%
28%
prefrence ofpeople
quality
Service
BRAND
8/8/2019 Acknowledgement Project 2
65/82
65
PORTERS FIVE FORCES MODEL
IndustryBargainingpower of
supplier
Substituteproducts
Bargaining
power of
customer
Threat ofnew
Entrants
8/8/2019 Acknowledgement Project 2
66/82
66
SUBSTITUTE PRODUCTS
Substitute product are those which can be used in place of the other product SMF
battery can be the substitute for the battery which requires water to be filled in it.
BARGANING POWER OF CUSTOMER
Customer are the person who has to be satisfied under the facilities which are
being provided to them by the companies which provoked them to buy the product
are like after sales service various discounts offers given to them by various
companies.
BARGANING POWER OF SUPPLIER
This can be said at which rate the supplier is ready to take the goods and ready to
supply the material for the goods to be manufactured comes under this.
THREATS OF NEW ENTRANTS
Some of the local producing unit also came in this market which is becoming
threat to the company because they provide batteries lesser than the other
companies product.
COMPETETION FACED IN INDUSTRY
The competition faced by HBL from other players is quite intense the major
competition got by Exide which is the leading producer in the automotive battery
in the market
8/8/2019 Acknowledgement Project 2
67/82
67
: -MOST BATTERIES OF COMPANIES ARE BEING SOLD BY VARIOUS
COMPANIES
Companies Respondent Response Percentage
Exide 100 46 46%
Amaron 100 32 32%
Others 100 22 22%
Graphical representation of the above stated data
46%
32%
22%
Sales madby variousdealers ofthecity
Exide
Amaron
others
8/8/2019 Acknowledgement Project 2
68/82
68
:-AVABILITY OF HBL BATTERIES IN THE MARKET
Analysis on the basis is as follows
Availability Respondents Percentage
Yes 66 66%
No 44 44%
Presenting the above data in the face of graph
INTERPRETATION
From the above analysis it can be seen that battery is readily available but in come
due to unawareness of the products of the company and also due to less dealership
the battery is not as readily available as it could be in comparison of the other
companys battery in the market.
avaliablity ofthebattery inthe market
yes
no
8/8/2019 Acknowledgement Project 2
69/82
69
SWOT
STRENGTH
Experienced management team work. Strong industrial background in order to backup the automotive segment of
the company.
Comes with innovativeness in this field by bringing SMF batteries forautomotive segments in the market.
Strong and confident sales team of the csg department of the company.
WEAKNESS
Their many strong competitors present in the market. People are less averse of the HBL automotive batteries in the market name
as Egnite and Excel.
OPPORTUNITY
Market is wide open there is much scope for expansion for the business Thus it has introduced SMF batteries in the market which responded
positively.
THREAT
Presence of the competitor in the market which are leaders Wider product range given by other companies. Local batteries are also giving threat to the companies.
8/8/2019 Acknowledgement Project 2
70/82
70
FINDINGS
During the survey we came across some information and those are being
consolidated in under the heading finding they are as.
During the analysis I found out that HBL bears the sound financial condition
because in respect of the recessionary period it generated profit thus by seeing it
with the use of BCG MATRIX HBL will be placed as bellow is as follows.
HBL is being placed in the category of cash cow because it oes not have much
market share in automotive segment but it high growth rate thus it is termed as a
cash cow in my opinion. Thus as in future it had really good chance to grow
because it provides good quality products at reasonable price.
8/8/2019 Acknowledgement Project 2
71/82
71
During the research work we have seen their less dealership in comparison of
Exide, Amaron etc thus it is available but through limited source and also due to
limited dealers dealers services are also being lacking.
We came across to know that most batteries which is sold in the
market is that because customer wants their favorite brand product to buy thus
mostly they sells Exide Amaron and other fall with others category. In the process
of the survey we came through that selling EXIDE does not give much profit
margin to various dealers in comparison of the other company products.
The products which are being preferred is through its service quality than
quality and than brand e.g. if big brands does not provide good service customer
will switch to another company or brand.
The brand products are being sold by dealers is EXIDE, AMARON, than
any other including HBL, AMCO etc.
As the dealers response toward SMF batteries in automotive segment
is on the positive side so we can say the scope fro its market can be good in future.
8/8/2019 Acknowledgement Project 2
72/82
72
SUGGESTION AND RECOMENDATION
As customers are vital for an organization so in order to retain them and to give
them information they should promotion through various media so people can
know about the various products of HBL power system.
As per the survey the availability of HBL automotive batteries is from
selected place so its dealership has to be increased so it can be easily available to
various customers.
As the response toward SMF battery seems to be positive from many
persons so this product should be promoted trough various media.
Occupation of the user influences the purchase decisions. The particular
occupation plays a vital role in deciding the product or services. Men are the
influencer and buyer of the battery. Therefore, it should this factor influencing
from the product and occupation
Apart from the facilities good quality the company should provide some
discounts to the customers and some offers because this thing also attracts the
customer toward their product.
Since HBL power system Ltd is leading with several companies it should be easy for them
to penetrate into the market and secure a good position if they pay greater attention to the service
part provided to their customer and thereby forming a long and trusted relationship.
8/8/2019 Acknowledgement Project 2
73/82
73
CONCLUSION
From the survey conducted in the city of Lucknow I came across that there
is opportunity for the growth in the automotive segment of the market because the
batteries which it provides are of good quality and at a reasonable rate thus all this
things are being backed by the HBL industrial background which will help it to
penetrate in the market in near future.
I conclude that, majority of the customers are being satisfied with the
HBL Batteries in automotive segment named as ignite and excel because of its
good quality, reputation, easy availabilities. Some customers are not satisfied with
the HBL Batteries because of lack of dealer services, spoilage and low shelf life
etc. therefore, if slight modification are needed in the marketing programme such
as dealers and outlets, promotion programmers, product lines etc., definitelycompany can be as a strong market leader player among the older player and will
be able to give them stiff competition in future
HBL has also to take care of its competitors into consideration and more
importantly its customers before making any move.
8/8/2019 Acknowledgement Project 2
74/82
8/8/2019 Acknowledgement Project 2
75/82
75
APPENDIX ( QUESTIONARE)
ANNEXURE 1
Questionnairefor Research
General Questions
yName ofthe Company
y Name ofcontactperson ..y Designation ofcontactperson .y Contact No. ..
Questionsfor Data Collection
1) Whetherbatteries are installed inyour Institute/Industry?Yes
No
2) What isthe Application UPS/ Inverter/ Emergency Light/ Others.
3) What isthe Brand ofthebattery which is installed inyour Institute/Industry?
Batteryname
8/8/2019 Acknowledgement Project 2
76/82
76
4) Which types ofbatteries is installed inyour institute/industry?SMF (VRLA) Tabular Traction Flatplate
5) What istherating ofthebattery?Volts
A.H
6)
How manybatteries are installed inyour institute?
Quantity ofBattery
7) What isthe application ofthesebatteries?
U.P.S
Inverter
Other
8) What wasthe installationdate ofthesebatteries?Day Month Year
8/8/2019 Acknowledgement Project 2
77/82
77
9) Areyousatisfied with theperformance ofthebatteries?Notsatisfied Somehow
satisfied
Satisfied Fullysatisfied Cantsay
10)Aftersales/Supportprovidedby Company/Distributer/Dealer.
11)Areyousatisfied with theserviceprovidebythecompany?Notsatisfied Somehow
satisfied
Satisfied Fullysatisfied Cantsay
12)What isthepresentcondition ofthebatteries?Notgood Somehow good good verygood Cantsay
13)Which manufacturersbattery wouldyouliketo install infuture?Make Rating
8/8/2019 Acknowledgement Project 2
78/82
78
14)Wouldyouliketo suggest anythingregardingthebatteries?..
..
THANK YOU
8/8/2019 Acknowledgement Project 2
79/82
79
Questionnairefor Marketfeedbackfeedbackfrom Business Today
Name of
dealer
Add.
Contact
no.
Person
Avgsale
ofAuto
batteries
Brand
Car Medium
car
HCV Tractor Inverter 2w Inverter
Tubular
1
2
3
4
5
Areyousatisfied with theperformance ofthebatteries?
Notsatisfied Somehow
satisfied
Satisfied Fullysatisfied Cantsay
8/8/2019 Acknowledgement Project 2
80/82
80
Areyousatisfied with theserviceprovidedbythecompany-
Notsatisfied Somehow
satisfied
Satisfied Fullysatisfied Cantsay
Do youthinknow SMF batteriesshould also be availablefor Automobile-
Yes it is Required Maybe Cantsay
Ifyesthen whatdo youexpectfrom the Battery andthecompany-
THANK YOU
8/8/2019 Acknowledgement Project 2
81/82
81
MANISH PATHAK
PGDM TRIMESTER 3rd
IEM MANAGEMENT COLLEGE,
ANWARI, BARABANKI.
8/8/2019 Acknowledgement Project 2
82/82
82