Market Analysis of Amaron two wheeler batteries in Hyeraba!" !"
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1 *EC/ARAT'ON I, hereby declare that the Summer Internship Project Work titled( Market Analysis of Amaron two wheeler batteries in Hyeraba is an original work done by me under the Supervision of M"J"RAMAKR',HNA M"J"RAMAKR',HNA ( ssistant Professor( IP!, "# $ampus, %yderabad &' (r) *rivikaram , (arketing %ead, maron batteries Pvt ltd), %yderabad) *his project has not been submitted elsewhere for the award of any degree or diploma either in part or full in any university+institution) Place, %yderabad ( S-I.&*%-!''/ 'ate0 2 ACKNOW/E*-EMENT &o task however small can be completed without proper guidance and encouragement) It is a pleasure to acknowledge my debt to the many people involved directly or indirectly, in the successful completion of the project) I would like to acknowledge the help rendered to me by Prof" R"K"Mishra, *ire$tor( 'PE Hyeraba) I would like to thank *r","K"Math&r( Coorinator( P-*M0'1( 'PE( Hyeraba( for guidance and support throughout the course of this project) I e1press my gratefulness to Mr" TR'8'KRAM( -egional (anager, maron 2atteries 3td, Mr" NA'.*. for providing me with an opportunity to be associated with the project) I e1press my deep sense of gratitude to MR" M"J"RAMAKR',HNA MR" M"J"RAMAKR',HNA for her timely help and integrity in handling my needs) I take this opportunity to thank her profusely for her e1cellent guidance and support throughout the course of this project) 3 'ne< $ontents0 Page &o4s 5" 'n&stry o=er=iew 6 ;" Com%any %rofile 5> ?" 'ntro&$tion to st&y ?3 >" *ata Analysis ?6 6" 7inin+s >@ @" ,&++estions >: 7. Conclusion 48 8. Questionnaire 50 9. Bibliography 51 4 5" 'N*.,TR2O8ER8'EW 5 'N*.,TR2 PRO7'/E 'n&stry O=er=iewA *he total Indian storage battery market is appro1imately estimated at #S5 677 (illion with the automotive battery segment contributing 87 to 86 percent of the overall market value) In terms of volumes, the overall consumption of automotive batteries could be around 8)9 million units with the "! segment comprising around :); to :)9 million units per annum, according to an interview with the !1ecutive <ice President of -23 that was published on the website chennaibest)com) *he late :==7s also saw a surge in the sales of the passenger car segment for around ; years due to certain factors like the software boom, lowering of interest rates, etc) , which increased the overall sales of batteries) *he automotive sector did not see any significant growth during the early part of the new millennium and is slowly showing signs of growth during this financial year) *his factor also adds to the demand in the aftermarket as more number of cars was sold around ; to 9 years back which is generally the life of a lead acid battery) *he replacement automotive battery market is e1pected to grow at a healthy rate in the coming years) *he S3I market in the Indian subcontinent is a highly fragmented industry with a few manufacturers in the organi>ed segment and a lot many belonging to the tier ; + tier 9 categories which have a regional presence and thrive especially among the semi urban and rural areas) Role of Te$hnolo+y With the advent of newer more advanced technologies, the consumer is getting the best of both worlds? a superior product at an affordable price) -23 sells its automotive battery under the brand name maron which is the country@s first Aero (aintenance Bree utomotive battery while the competitors had only maintenance free batteries that needed topping up of distilled water) *oday, all the leading manufacturers are also offering a similar product with focus shifting towards offering a technologically superior product) maron was also the first to talk about what goes into making a great product) It spoke of having silver inside which is used as an alloy mi1 that actually 6 increases the battery life and this was the first attempt by any battery manufacturer to educate the consumers) 7&y *&y Cate+ory to Creati=e A=ertisement of the 2ear *he interest level shown by any car owner to a battery revolves around only when the car fails to start) maron therefore reali>ed the need to make the consumer think about automotive batteries, because thinking before a purchase will definitely lead to a comparison among the brands available in the market) maron thus went ahead with its C$hicken 3egC media campaign that created a storm in the advertising industry and made people look to this relatively new player in the battery industry) "ver the years, the creative bent of all its campaigns starting from the media blit>, to below,the,line campaigns have been towards educating the consumer about a battery) *he lead shown by -23 was Duickly followed by the others, with !1ide Industries sponsoring a cricket series in India for the first time with the campaign CIndia moves on !1ideC becoming a major success) ll this action in the automotive battery industry did not go unnoticed) n automotive battery manufacturer EmaronF for the first time was in the same league as mega ad spenders like $oca $ola, *imes of India, and others and won the $reative dvertiser of the /ear, which was a shot in the arm for the entire automotive battery industry" *istrib&tion Bor the success of any aftermarket product, availability of the same is as important as the product Duality and competitive pricing which go a long way in increasing the visibility and creating a network across markets) %ere again, the leading automotive battery manufacturers became aggressive in e1tending their reach to the nooks and corners of the country and also moved away from the traditional distribution network and instead appointed dealers and distributors who were the first timers to the battery business like service outlets of some of the automobile majors like (aruti, %yundai, *elco, shok 3eyland, %industan (otors etc, roadside mechanics and lube shops etc), which went a long way in increasing the reach and visibility) *here has been certain uniDueness that has been brought into the business by establishing e1clusive 7 outlets with some flashy names like CPitstopsC and C*erminalsC which was never seen earlier in this industry) ll this, resulted in taking the smaller + regional manufacturers head on and helped in building better brand recall and awareness among the end users) -lobal s$enarioA Global "pportunities for dvanced 2attery *echnologies in utomotive pplications, :==H to ;77H is a multi client report designed specifically to provide subscribes with an accurate and independent assessment of emerging opportunities in the automotive battery industry) In addition to providing invaluable information and insights intodevelopments in starting, lighting, and ignition ES3IF technology, the report focuses specifically on opportunities emerging from electric vehicles and hybrid electric vehicles) *he report provides material suppliers, advanced battery companies, automotive original eDuipment manufacturers, investors, and others with an e1cellent resource to build soil, strategic plans and respond to competitive forces, emerging technologies, and evolving market needs) Specifically, the report assists subscribers in growing their business by providing the following0 7eat&resA Identification of the issues and timing for large scale commercial implementation of advanced battery technology in the global automotive industry) #nbiased global scenario forecasts of commercial systems to ;779 and ;77H) Borecast of material reDuirements for advanced batteries) Profiles of companies those are active in this field) 2enefits0 Identification of emerging business opportunities for advanced batteries &ew S3I technologies %!<s !<s $ompetitive intelligence for use in bench marking resource for screening potential merger and acDuisition candidates *he business0 8 -evenues for the global battery market reached an estimated 597 billion in :==H)S3I and related secondary battery applications represent appro1imately one,half of the overall revenues and are mostly utili>ed in automotive applications) %igh,performance secondary batteries used in such applications as portable electronics represent appro1imately :6I of the overall battery market) *hese high,performance secondary batteries have the fastest growth rates, at over :7I a year) Primary batteries represent the remaining one,third of battery industry revenues) battery is an electro chemical device in which the free energy of chemical reaction is converted in to the electrical energy) *he chemical energy contained in the active materials is converted electrical by means of electrochemical o1idation reduction reactions HOW 1ATTER2 WORK,A When you place the key in your car4s ignition and turn the ignition switch "& a signal sent to the battery) #pon receiving the signal, the battery takes energy that it has been strong in chemicals form and releases it as electricity power is used to crank the engine) *he battery also release energy to power the car4s light and others accessories) It is the only device, which can store electrical energy in the form of chemical energy, and science it is called as a storage battery) ,EA/E* MA'NTENANCE 7REE B,M7C 1ATTER2A Sealed maintenance free ES(BF batteries technologies are leading the battery industry in the recent years in automobile and industry battery sector around the globe) S(B batteries come under the rechargeable battery category so it can be used a number of times the life of a battery) S(B batteries are more economical than cadmium batteries) *hese batteries are more compact then the wet type batteries) It can be at any position, these batteries are very popular for portable power reDuirements and space constraint applications) *he replacement market, on the other hand, is much longer) *he replacement market is characteri>ed by the presence of large unorgani>ed sector, which constitutes around 66,87I of the total replacement market) 'N*.,TR'A/ 1ATTER'E,A 9 Industrial batteries can be basically classified into two main categories0 A.TOMOT'8E 1ATTER'E, ,TAT'ONAR2 1ATTER'E, *he automotive batteries are used in electric vehicles and forklifts) *he stationary batteries used in *elecom, -ailway and power industries have -egistered a growth in e1cess of ;7I and this trend in likely to be continuing in the ne1t 6 years) *he industrial segment is highly technology is an important factor land is vital for brand reference) *he total demand for the industrial battery segment is met by indigenous production with a small saves of about :7I of by imports) *he demand for industrial has grown slowly and steadily) REC2C/'N- O7 1ATTER'E,A 2attery acid is recycled neutrali>ing it into water of converting it to sodium soleplate for laundry manufacturing) $leaning the battery cases, melting the plastics and reforming it into pellets recycle plastic) 3ead, which makes up 67I of every battery, is melted, poured into slabs and purified) PRO,PECT., O7 ,M7D 8R/A 1ATTER'E,* 'N 'N*'AA *he following factors are influencing demand of <-3 technology batteries) !ntry of multinationals in telecom industry) '"*4S policy decision to upgrade the overall technology base) $onstraints in the use of conventional battery in radio TE/ECOMA *he government policy to increase the capacity from :7 million lines by ;777 increased the demand for storage batteries considerably) *he value added services like radio paging and cellular will increase the demand for storage batteries in future considerably) RA'/WA20 10 In railways, the demand estimate is based on the annual post production which comes to ;677 numbers by railways itself and :777 numbers more by various other segments, plus replacements demand and annual reDuirements for railway electrification) POWER ,ECTORA In power sector the estimated =7 private power projects which are e1pected to produce J7777 (< with appro1imate capital outlay of -s) :, J7,777 crores would keep the industry figured brighter in the coming years) *he demand for <-3 batteries is increased due to its performance over the conventional batteries) So it is more acceptable to the consumers) 8A/.E RE-./ATE* /EA* AC'* 1ATTER'E,A In the recent years in automobiles and industry battery sector around the globe <-3 batteries have become the preferred choice in various applications such as uninterrupted power supply, emergency lights, security systems and weighting scales) <-3 batteries are leak, proof, e1plosion resistant and having life duration of :6,;7 years) *hese batteries withstand the environment conditions due to high technology, in built in the batteries) !ach cell is housed in a power coated steel tray making them convenient to transport and installation) So transit damages are minimi>ed in case of these batteries) AMARA RAJA -RO.P O7 COMPAN'E,A (- -K 2**!-I!S 3I(I*!' E-23F, karakambadi, *irupathi) (- -K P"W!- S/S*!(S P<*)3*' E-PSP3F, .arakambadi, *irupathi) (&G3 P-!$ISI"& P-"'#$*S P<* 3*' E(PP3F, karakambadi, *irupathi) (&G3 P-!$ISI"& P-"'#$*S P<* 3*' E(PP3F, petamitta, chittoor) (- -K !3!$*-"&I$S P<*) 3*' E-!P3F, 'ighavamagham, $hittoor) 11 EN8'RONMENTA/ PRO-RAM,A dvancement for IS",:J77: $ertification) %ealth monitoring and industrial safety program) 2oth personnel and industrial programs) Start,up of environment management system E!(SF implementation Programs) &il discharges and lowest emission awareness and implementation program) Waste reduction program) !nergy conservation program) $ontinuous and massive greenbelt development program ground water level improvement program) $entral wastage collection, treatment, storage on safe disposal personal health safe guarding program) AWAR*,A 12 *he spirit of e1cellence , awarded by academy of fine arts, *irupathi) 2est entrepreneur of the year :==H , awarded by %yderabad management association Industrial economist business e1cellence awards L :==: , awarded by the industrial economist, $hennai) !1cellence award , Institution of economic studies E&ew 'elhiF) #dyog ratton award , Institution of economic studies E&ew 'elhiF)
13 ;" COMPAN2 PRO7'/E 14 COMPAN2 PRO7'/EA 2ackground and inception of the company0 mara -aja 2atteries 3td0 mara -aja 2atteries 3imited E-23F $ompany incorporated under the company4s act, :=68 in :9 th Bebruary :=H6 and converted into public limited company on 8 th September :==7) -23 is the first company in India to manufacture <-3 Evalue regulated lead acidF 2atteries) *he main objective of the company is manufacturing of good Duality of S!3!' (I&*!&&$! B-!! lead acid batteries ES(BF) *he company was set up with -s):=;7 lakhs in :H acres area near .arakambadi village, -enigunta (andal) *he project site is notified #nder 2 category) *he company has the clear,cut policy of direct selling without any intermediate) So they have set up si1 branches and are operated by corporate operations office located in $hennai) *he company has virtual monopoly in higher )% Emp %ourF rating market its product <-3) It is also having the facility for Industrial and utomotive 2atteries) (r) Galla -machandra &aidu, chairman who is an &-I having engineering background promoted (- -K 2**!-I!S 3*') in :=H6 at .arakambadi <illage near *irupathi) %e also seeded %-S% !3!$*-"&I$S Pvt) 3td) in :==7 at .arakambadi <illage near $hittoor and (- -K !3!$*-"&I$S 3td) in ;777 at 15 'iguvamagham village near $hittoor) 2efore embarking on this venture he worked as senior project engineer with (+S SergeantM 3undy, #S Epower consultantsF for about ;7 years) Prior to this, he worked as an !lectrical !ngineer for #S Steel $orporation for about 9 years) In :=H=, -23 has entered into Industrial 2attery market with *echnical alliance with G&2 2atteries, #S to promote advanced (aintenance Bree <alve -egulated 3ead cid E(B,<-3F batteries prior to setting its own facilities -23 Imported the product in semi,.nocked down condition) In September :==7, it was converted into a public limited company and it4s IP" EInitial Public "fferF in Kanuary :==: aggregating -s)6=)6(illion) It was formed to manufacture (aintenance,free, sealed lead acid batteries in which commercial production commenced from (ay :==;) 'espite its initial technical support from G&2 2atteries, during the financial year :==H -23 ceded a ;9)NI stake to Kohnson $ontrols Inc) #S, at a premium of -s)N6 per share to cement a financial and technical tie,up to foray into utomotive 2atteries) 2esides having overall control of the company as the chairman (r)-)&)Galla) %is son, (r) Kayadev Galla, who is acting as a managing director of the company, has worked earlier with G&2 2attery *echnologies, #S as an International Sales !1ecutive) &ature and business carried0 -23 comprises of two major divisions vi>, J) Industrial 2atteries 'ivision EI2'F 6) utomotive 2atteries 'ivision E2'F 8) Small 2atteries 'ivision ES2'F 'n&strial battery i=ision B'1*C mara raja has become the benchmark in the manufacture of industrial batteries) India is one of the largest and fastest growing markets for industrial batteries in the world and mara raja is leading the front with an H7I (arket share for stand by <-3 batteries) It is having the facility for producing plastic components reDuired for industrial batteries) 16 'n$or%orationA -23 is the first company in India to manufacture <-3 batteries) *he company has setup of -s) :=;7 lakhs) Plants in :H acres in karakambadi village, near *irupati) -23 was established in the year :=H6 as private limited and then it has been changed into public limited company with the advent of G&2 industrial batteries #S, for manufacturing sealed value regulated) Ca%a$ity *he actual installed capacity of I2' is over J, 77,777 cells per annum and utili>ation capacity is reached over 9, 67,777 cells per annum) A&tomoti=e 1attery *i=ision BA1*C -23 inaugurated its new automotive plant at karakambadi near *irupati) "n September ;77: this plant part of the most completely integrated battery manufacturing facility in India with all critical components including plastics sourced in house from e1isting facilities on site) *his gives mara raja is having complete control own inventory and product Duality in this project, mara raja strategic alliance partners Kohnson $ontrols #S have closely worked with their Indian counterparts to put together the latest advances in manufacturing technology and plant engineering) It is also having the capacity for producing plastic components reDuired for automotive batteries) Ca%a$ityA mara -aja has a replacement 2attery 2rand maron hi,life) -23 has a capacity for manufacture of around :,777,777 units at its facility at *irupati with an investment of #S 5 :7)77 million) Greenfield project is planned at the same site with an additional investment of #S 58 million to augment capacity to ; million batteries) *he maron hi,life battery is a product of the collaborative efforts of engineers at Kohnson $ontrols Inc) and mara -aja) *his Aero maintenance product incorporates the latest technological advances in the field and is on par with batteries manufactured and 17 marketed in developed countries) fully charged, factory,activated battery provides e1tra high starting performance and power at any temperature) Mission( =ision an historyA MissionA (ission, mantra, way of thinking, philosophy, what we live forO call it what you want, you4ll find it below) *o transform our spheres of influence and to improve the Duality of life by building institutions that provide better access to better opportunities, goods and services to more peopleOall the time) 'ntro&$e latest +eneration te$hnolo+iesA dapt these technologies to suit the operating environment 'evelop and manufacture globally competitive, customer,focused products of world,class Duality) -esponsibly introduce these products into relevant markets) Provide world,class customer support) 8isionA In Kanuary ;77N, -23 announced e1pansion plans to invest -s)HJ crores to set up the combined manufacturing capacity of 9); million units for ;,wheeler batteries and small <-3 batteries for #PS applications) $urrently : million units combined capacity is ready and will scale up to 9); million units by B/ ;7:7) 18 Pro&$t %rofileA A&tomoti=e battery %ro&$tsA Bour,wheelers0 5" Amaron hi0way maron hi,way truck batteries,lasts long, really long maron hi,way truck batteries, brought to you by mara -aja 2atteries 3imited E-23F, the largest manufacturer of Stand, by <-3 Industrial 2atteries in the Indian) ;) Amaron %ro hi0life maron P-" hi,life batteries design features and benefits 3ongest life L thanks to the reformulated dvanta paste recipe) Aero maintenance L high heat technology, premium silver alloys for a low,corrosion and no top,ups e1perience) %ighest cranking power L largest intercell welds, :=mm lugs) maron harvest *ypes of %arvest tractor batteries N6 h L *- 677 '9:-+3 =7 h L *- 877 %;=-+3
?" Amaron shiel maron shield L power Infinite *he new maron shield, with an unheard of ;J months warranty) product of mara -aja 2atteries 3imited, maron shield is a result of a partnership between the mara -aja 19 Group and Kohnson $ontrol Inc, #S, the global leader in interior e1perience, building efficiency and power solutions)
maron shield design features and benefits 3ong life L the robust plate design and a ribbed container provide e1tra strength and improved resistance to corrosion) #ltra low maintenance L the special hybrid alloy system minimi>es water loss, making the battery ultra low maintenance and ensuring longer life)-eady to install L factory charged, wet shipped and eDuipped with *9 terminals)$harge acceptance L the uniDue paste formulation provides for Duick charging between power failures) >" Amaron +oA maron go batteries design features and benefits 3ong life L thanks to the reformulated advanta paste recipe) (aintenance free L %igh heat technology, premium silver alloys for a low,corrosion and no top,ups e1perience) Bactory fresh L wet shipped and ready to fit) 6" Amaron fresh 20 @"Amaron o%tima "ptima yellow top0 deep cycle batteries for e1treme applications "ptima blue top0 for twice the life of traditional marine and -< batteries "ptima red top0 the battery that withstands the most vibrations A%%li$ationsA ")!)$ustomer (odel &umber -ating 21 %yundaiESantroF 9H2;7- :;<96h (aruthi #dyog 3tdEWagon -F 9H2;7l :;<96h (aruthi #dyog 3tdESwiftF 9H2;7- :;<96h G(I3E*averaF H7';8- :;<87h G(I3E"ptraF 66';9- :;<66h shok 3eylandEGoodsF N6'9:- :;<N6h shok 3eylandEPassengerF %$<P77'7J- :;<:67h shok 3eylandEGoodsF %$<677'9:- :;<H7h (M(EScor+$omm+(arshallF 86';8- :;<86h (M(E2oleroF N6'9:3 :;<N6h (M(E$hampionF JH';8- :;<67h (M(E*ractors,ll *ypesF *-677'9:3 :;<N6h %"&'E$ityF 9J2:=3 :;<9;h %"&'EccordF 662;J3 :;<87h *!3$"Ece,$ubF 9H2;73 :;<96h *!3$"E;7N'I+Sumo+<ariantsF N6'9:- :;<N6h *!3$"ESafari,$-'IF =6'9:- :;<H7h *!3$"E*elcoN7=+=7NF %$<N77%;=- :;<:77h *!3$"E:8:9F %$<H77'7J- :;<:;7h *!3$"E:9:9+:6:;F %$<P77'7J- :;<:67h SW-K (A'E*ruckF N6'9:- :;<N6h %(3,.olkataEmbassador,'F N6'9:- :;<N6h %(3,.olkataEmbassador,PF 66';8- :;<87h %(3,$hennaiE3ancer,PF 9H2;73 :;<96h %(3,$hennaiE3ancer,'F =6'9:3 :;<H7h !I$%!- *ractorsEfor available modelsF *-677'9:- :;<N6h I&*!-&*I"&3 *ractors *-677'9:- :;<N6h Two wheelersA
A%%li$ationsA <ehicle Scooters 2attery type 22 manufacturer 2ajaj 2ajaj 2ravo P,*P;)63 2ajaj Saffire, sprit,wave P,*P63 *<S Scooty !S,Scooty pep,spectra P,*P63 %erohonda Pleasure, Street P,*P63 Su>uki ccess :;6 P,*P63 .inetic honda .inetic honda'P,A1 P,*P63 kinetic &ova :96,&ova !P,2la>e P,*P= 'n&strial battery i=isionA mara -aja4s Power Stack is a high performance battery designed to meet the demands of a wide range of industrial applications) *he power stack range is modular in structure and is capable of accommodating a wide spectrum of capacities depending on the application) (ajor application areas include telecommunications, power utilities, railways, defence, and other heavy industries) 23 *he advantages of powerstack at a glance0 *he advantages of power stack at a glance 'esign floats life of ;7 years Proven performance in harsh tropical conditions 'eep discharge capabilities #nbeatable track record in applications across heavy industries QS =777 L accredited across all functional areas and business ranging from manufacturing to services) World class IS" :J:77 accredited facility Quanta is not just another #PS battery, it is a #PS battery with a back,up for a back,up)#PS battery is further backed by the world renowed technology that others cannot provide you with) Put simply, Quanta is the product of fail,safe, fool,proof battery technology, produced and tested in our premier manufacturing facility and provides several firsts for a battery of its kind) 24 *he advantages of Quanta at a glance #niDue heavy,duty, corrosion,resistant alloy for positive grids, to increase cyclic life in a tropical environment) 3ower internal resistance for superior high,discharge performance) Interchange, a patented paste recipe for e1cellent charge acceptance) esthetically designed with a rugged Blappon terminal protector that prevents shorts $ompact, lightweight, factory,charged, e1plosion,resistant and environment friendly clean and sleek looks) part from the technology itself, helping us meet our stringent Duality norms is our QS =777 accredited manufacturing plant) ll of which makes Quanta the unrivalled choice for the smart #PS eDuipment buyer) Power Control0 *hey provide back,up critical installations in power generating units and provide back,up power for transmission and distribution sub,stations like0 &orth $hennai thermal power station -23 is an approved vendor for &*P$+&%P$ and power Grid $orporation) Oil E +as0 :) -23 provides integrated solutions for renewable energy back,up power for "&G$4s offshore platforms) ;) *he island of 3akshadweep is powered through mara -aja Power Systems) 9) *hey also provide back,up power for low power transmitters for 'oordarshan) Moti=e PowerA 25 :) -23 is the country4s first manufacturer of maintenance,free traction batteries used in Borklifts and Pallet trucks) *efen$eA -23 introduced new technologies for back,up power in defiance, police and paramilitary communication systems) .P, E EPA1FA -23 is the preferred suppliers for all leading #PS back,up manufacturers like P$, &umeric, '2 power, P 3ab, !lectronics M $ontrols etc) our #PS batteries are the fastest growing battery brand since its launch in Kuly ;77; with a nation,wide footprint of sales and service points and over 9,77,777 batteries in use at over :7,777 customer sites) RailwaysA -23 pioneered the use of maintenance,free batteries in the Indian -ailways) "ver 67I of Indian -ailways4 two and three tier self,generation ir,conditioned coaches are powered by -23) "ver J7I of -ailway4s Signalling and *elecom power supply solutions are provided by -23) Area of o%erationA Re+ionalA 3eading battery manufacturer mara -aja 2atteries 3imited launched maron pit shop in .akinada and -ajamundry today) With these the total number of pit shops in ndhra Pradesh will grow to :J) *he complete range of maron automotive batteries, the most popular product from -23, will be available at the pit shop) maron pit shop is an innovative concept pioneered by mara -aja in the automotive battery industry NationalA *he $ompany currently has a pan,India sales and service network with :6; franchisees, :;7 pit shops and over :6777 active retailers) Ownershi% %atternA Shareholding of promoter and promoter group 26 Indian , ;7)6J;NI Boreign , 9:)6:HNI Public shareholding Institutions, :6):;NHI &on,institutions , 9;)H:78I Com%etitorGs informationA EF'*EA *he $ompany was incorporated as ssociated 2attery (akers E!asternF 3td), on 9:st Kanuary, :=JN under the $ompanies ct, :=:9 to purchase all or any of the assets of the business of manufacturers, buyers and sellers of and dealers in and repairers of electrical and chemical appliances and goods carried on by the $hloride !lectric Storage $ompany EIndiaF 3td, in India , since :=:8 with a view thereto to enter into and carry into effect Eeither with or without modificationF an agreement which had already been prepared and was e1pressed to be made between the $hloride !lectric Storage $o EIndiaF 3td on the one part and the $ompany of the other part) *he $ompany manufactures the widest range of storage batteries in the world from ;)6 h to ;7,J77 h capacities, covering the broadest spectrum of applications) *he $ompany has si1 factories strategically located across the country L two in (aharashtra, one in West 2engal, two in *amil&adu and one in %aryana) *he $ompany4s predecessor carried on their operations as import house from :=:8 under the name $hloride !lectrical Storage $ompany) *hereafter, the $ompany started manufacturing storage batteries in the country and have grown to become one of the largest manufacturer and e1porter of batteries in the sub, continent today) !1ide separated from its #.,based parent, $hloride Group Plc), in :=H=, after the latter divested its ownership in favour of a group of Indian shareholders) *he $ompany has grown steadily, moderni>ed its manufacturing processes and taken initiatives on the service front) $onstant innovations have helped the $ompany to produce the world4s largest range of industrial batteries e1tending from ;)6 h to :6777 h and covering various technology configurations) 27 AMCO ($" 2atteries 3imited of the malgamations Group is the leading battery manufacturer with a wide spectrum of world class high performance polypropylene batteries for the automobile industry) ($" is &o) : battery for *wo Wheelers and the preferred choice for the new generation 2ikes, Scooters, $ars and all other passenger vehicles) ($" batteries ensure instant start, long life and trouble free performance) It occupies pride of place in both the "riginal !Duipment and -eplacement markets enjoying an enviable preferred choice as "! fitment) "n account of its track record in the two wheeler battery segment, the company has the privilege of being an e1clusive supplier to %ero %onda, *<S, %(SI, /amaha, 2ajaj, -oyal !nfield etc) *he company has a track record of supplying J,wheeler batteries to *B! *ractors, !icher *ractors, $ummins India 3td, Sonalika *ractors etc)Pioneering Quality Standards in batteries with contemporary technology and ceaseless attention to Duality, ($" 2atteries 3imited is the first battery in manufacturer awarded IS",=77: $ertification by 2<QI)($" 2atteries 3imited with its state of the art technology E-M'F recogni>ed the 'epartment of Science and *echnology, Government of India that contributes towards import substitution and indigeni>ation) ($" 2atteries has proven its commitment to its customers by establishing well supported nation,wide network of marketing offices and service centers that ensure ready availability and reliable after sales service and maintenance4s) Kayshree <enkatraman, 'irector, ($" 2atteries 3imited M *B! Power Source won the distinguished alumnus award from the International (anagement Institute EI(IF which is given in recognition of dedicated and meritorious service to business and society above and beyond e1pectations of e1pertise in the workspace) H'-H/'-HT,A maron *( is the preferred supplier to 'aimler $hrysler, Bord and General (otors 28 utomotive product of the year ;777 by overdrive !1cellence in !nvironmental management in ;77; by P Pollution $ontrol 2oard $reative dvertiser of the year 47; by 22/ Bord World !1cellence ward Bord Q: ward IS" , =77: in :==NO)-W*#< QS =777 in :===O)-W*#< IS"+*S :8=J= in ;77JO)-W*#< Quality benchmarks 2est business practices as per K$I IS" :J77: in ;77;O))-W*#< Part of the world4s largest battery manufacturing alliance, Kohnson $ontrols Inc), #S 3argest manufacturer of standby <-3 batteries for industrial application in India uto $' for sheet metal design 3argest M dominant market leader of standby batteries in -ailways, *elecom, power generating stations in India "ne of the largest Edesigned for producing ;)6 million batteries p)aF and most modern automotive battery plants in sia %ighly automated Eo1ide preparation to finishing? all processes and operations are automatedF Part of mara -aja4s highly integrated battery comple1 Emost components are built in,houseF Industrial !conomist 2usiness !1cellence ward L :==: by the Industrial !conomist, $hennai) 2est !ntrepreneur of the year :==H L by %yderabad (anagement ssociation) !1cellence award by Institution of !conomic Studies E!SF, &ew 'elhi) #dyog -attan L :=== by Institution of !conomic Studies E!SF, &ew 'elhi 29 Q: vendor status by Bord India 3imited L ;779 World !1cellence Silver ward by Bord #S *he spirit of !1cellence by cademy of fine arts, *irupathi 7&t&re +rowth an %ros%e$t&sA *he company has plans of e1panding its battery manufacturing capacity a robust 67I from 9)8 million units per annum to 6)J million units per annum) *he company intends to make an investment of -s HH; million for the e1pansion) *he company plans to e1pand the capacity of the industrial battery division, which would incur a capital e1penditure of -s 867 million) *he company would be investing -s :,:9J million in setting up a facility at *irupati for the manufacture of two wheeler and small <-3 batteries) *he proposed Share valueinvestment would be spread over three years) *he capacity4s facility would increase to 6)NJ million units Share value) 30 ?"'NTRO*.CT'ON 31 'NTRO*.CT'ON TO ,T.*2 Problem efinitionA *o find out the factors that influence the customers to buy maron two wheeler batteries and also to find the market potential of maron two wheeler batteries in %yderabad" ,$o%e of the st&y0 *he scope of the study can be defined in terms of the area and the sample si>e which will be reviewed for satisfying the objective of the subject matter) *he scope of study is in %yderabad, and around 67 2attery retailers and "!(S was targeted for the door to door survey which was done through Duestionnaire) Ob#e$ti=eA study on factors influencing purchasing decision of the customers and identifies the reason for better sales of maron batteries and e1amines option for enhancement) /imitation of the st&yA :F *his study is limited to only %yderabad) ;F Sample si>e is only 67) s sample si>e is very small it might not give the e1act fig or may not be the e1act representative of the actual population) 9F -espondents are not very much cooperative and some time biased answer so understatement and overstatement observed 32 RE,EARCH METHO*O/O-2 -esearch is scientific M systematic search pertinent information on a specific topic the meaning of research is a careful investigation EorF inDuiry especially through search for new facts in any branch of knowledge) 'ata sources0 "ne of the important tools for conducting research is the availability of necessary and useful data collection is more of an art that science) *he source of information fall under two categories) :) Primary data0 Primary data is collected with the help of Duestions, which consisted of Duestions of closed ended) *he Duestionnaires are chosen because of its simplicity and reliability) -esearchers can e1pect a straight answer, which is directly related to the Duestions asked) Interpretation of data under this can also be done correctly) It helps the responded to understand the significance and answer to their ratability) In this method response rate and reliability is high) In addition to this the data is collected through observation, Duestionnaire method and personal interview) ;) Secondary data0 Secondary data is collected through the document provided in internet by the company, manuals and reports regarding financials etc), and books) 33 9) Sampling0 It is necessary to collect data from the retailers and "!(S in the market) small represents sample may serve the purpose) sample means group taken from a large lot) *his small group should be imitative cross section and really representative in character) *his selection process is called sampling) J) Sampling Si>e0 Sample is device for learning about masses by observing a few individuals ,the selected sample is 67) J) $ollecting and analy>ing data 0 'ata collection is usually done by trained interviewers who are employed by field data collection companies to collect primary data) choice has to be made between collecting the data yourself or hiring an e1ternal office who are speciali>ed in interviews) 'ata analysis is needed to give the raw data any meaning) *he first step in analy>ing the data is cleaning the data) *his is the process of checking the raw data to verify that the data has been correctly entered into the files from the data collection form) fter that the data have to be coded) *his is the process of assigning all response categories a numerical value) Bor e1ample males R :, females R ;) fter that the data can be tabulated, which refers to the actual counting of the number of observations that fall in to each possible response category 6) *ools of analysis0 *he collected data was first codified) $lassified and then crystalised into tables which are further elucidated by dint and by pie chats) *he conventional statistical techniDues used in this survey are the percentage analysis and the graphical representation) Percentage analysis has been used as the main tool and graphs are helpful to analysis and interpret the data) Suggestions and recommendations were made at the end of the report 34 J) '* &3/SIS 35 *ata analysisA :) re you dealing with any two,wheeler batteriesS S)&" -esponse &o of respondents Percentage : /es 67 :77 ; &o 7 7 *otal 67 :77 Interpretation: From the above graph that it can be stated that 100 percent of retailers are dealing with two wheeler batteries 36 J) Price of the battery is the main factor which attracts the customerS I&*!-P-!**I"&0 *he above graph depicts the opinion of the retailers, from the above graph we can say that in sample of 6o, e1actly half of them agree that price is one of the factors which attracts the customer, ;6 I of them are neutral, and only J of them disagree that price is not a factor which really attracts a customer )so from the graph we can conclude that price is one of the key factor which plays a vital role in customer mind while purchasing a two,wheeler battery) 37 9) Warranty period of the battery is the main factor which attracts the customerS I&*!-P-!**I"&0 Brom the above graph we can say that, from the sample of 6o, ;H members strongly agree that warranty period is the main factor which attracts the customer,:H members agree that it is also one of the factor which customer perceives while buying a battery, and only J of them disagree )from the above data we can conclude that while comparing both price and warranty period warranty period is the factor which scores more over price while purchasing) 38 J) Bree maintenance of the battery is the main factor which attracts the customerS 7ree maintenan$e of the battery means that battery does not reDuire continuous monitoring after it is fit in to the vehicle) Bor e1ample maron batteries are embedded with a latest technology called <-3 , the significance of the technology is that, the battery does not reDuire any e1ternal sourcingE like water F once it is fit in to the vehicle) I&*!-P-!**I"&0 Brom the above graph, it shows that, out of the 67, 9; members strongly agree that free maintenance of the battery is the main factor which customer is attracted to, :; members agree ,J members are neutral i)e the cant decide and only ; members disagree with the statement) Brom the given data we can conclude that customers are biased with the latest technology , it stresses on the fact of continuous up gradation of the technology a company must strive for, to able to sustain in the market ) 39 6) $ustomers are aware of the brands available in the marketS I&*!-P-!**I"&0 Brom the above graph we can say that, out of sample 67 e1actly half i)e) ;6 of them agree that customer are aware of the different brands available in the market, seven of them are neutral M eight of them feel that customers are not aware of the brands available in the market 40 8) *he first choice of the customer is maronS I&*!-P-!**I"&0 Brom the above graph we can say that, out of sample 67, ;6 members disagree with the statement that maron is the first choice of the customer, :J members agree with the statement, 6 members are neutral, 9 members strongly agree M 9 members strongly disagree) 41 N) *he distribution chain of the maron batteries is goodS I&*!-P-!**I"&0 Brom the above graph , we can say that there is mi1ed response from the participants e1actly ;7 of them agree that distribution chain of maron is good M ;7 of them disagree, 6 members are neutral, 9 members strongly agree,M ; members strongly disagree with this) *he maron follows a different kind of distribution chain which is uniDue from its competitors, they follow franchise method i)e) they allow their products to flow in the market through franchises, the company does not have direct link up with the retailers, so distribution chain of maron batteries is different in different markets, which clearly depicts in the data shown in the graph i)e) retailers in some areas agree that maron has got good distribution network, while in some areas they feel it should improve M the response is e1actly same in number) 42 H) *he replacement of fault batteries is Duick in case of maronS -eplacement of fault batteries here means that , how Duick the company EfranchiseF responds in replacing the fault battery with a new battery within a specified warranty period) I&*!-P-!**I"&0 Brom the above graph we can say the out of the sample 67 e1actly ;6 of them disagree with the statement that replacement of the fault batteries is Duick in case of maron , :9 of them agree, 6 of them strongly disagree M J of them are neutral) s we see from the graph majority of the respondents feel that the replacement of the fault batteries is a concern with maron ) gain this points out the effective functioning of the franchise in a area ) maron two,wheeler batteries have a 87 month warranty period which is Duite a long period compared to its competitors) While collecting the data from the retailers they complained us about giving high warranty period , some of the 43 retailers also felt that they refrain from suggesting a customer a maron battery because of high warranty period) =) Which brand has the highest sales record in the recent pastS Interpretation0 Brom the above graph we can say that out of the sample 67 , ;7 respondents feel that !1ide has got the highest sales in the recent past , :9 members feel that maron is leading in the sales, N members are up for mco , 9 members for SB, N members are for other batteries) 44 :7) /ou have s!"cient stoc# of $maron two wheeler battries% Sucent stoc! o" #$aron batteries : &nterpretation' From the above graph we can sa( that the o!t of 50 samples 19 peoplestrongl( feel that there is no stoc# of amaron batteries )6 people said that the( said the( are not having the stoc# )4 retailers are *e!tral and 10 people said that the( are having s!"cient stoc# of batteries 45 6) BI&'I&GS :) *he first preference of most of the customer is !1ide) ;) $ustomer wareness regarding maron batteries is pretty average))it4s likeE J+:7F) 9) *he retailers are not satisfied with the time taken for replacement of maron two wheeler batteries) J) *he warranty period of the maron batteries is very high when compared to other brands available in the market) I found that warranty period is very important in maron battery sales) 6) *o keep up the motivation M also to make the retailers loyal to the brand, company should initiate to give some incentives M promotional offers to retailers) 8) Bree maintenance of the battery+the technology E<-3F which is used in the maron batteries is the most competitive factor of the brand) N) In our survey, we found that many of the "!(s M also some of the retailers are not aware of the maron two,wheeler battery) H) lthough the technology E<-3F of maron two wheeler batteries is of highest Duality, some retailers complained to us that few batteries are prone to technical faults) =) Some retailers complained that they not satisfied with the lead time)
46 6 +,--.+/&0*+ :F *he present Warranty period E 87 monthF is very high , I found that retailers are reluctant to suggest the customer to buy maron as they are afraid they have to cater the needs of the customer for 6 years ) so I suggest to lower the warranty period to match up with its competitors)
;F lthough the company follows Branchise system, it should (aintain direct link ups with the retail owners) *he company should also give some incentives to the retailers with the amount of sales they produced) 9F *he company should get in to contracts with the "riginal !Duipment (anufacturers) JF I "bserved that , now there is a huge demand of two,wheeler 2atteries in the market , every company is falling short of supply , this is the right time to penetrate in to the market) 6F *he company should modify their supply chain so as to reach the present days demand) 8F *he most important suggestion for the maron company , it should take some initiatives in bringing awareness regarding the uniDueness of the maron two,wheeler battery , advertising should be increased) 47 710*12,+&0* *o conclude, the overall market share in %yderabad with regard to maron two, wheeler batteries is pretty average , there is a lot of scope to increase its market share, although it has been only for year since it is in the market , it is not reached the position to where it has to beE keeping in mind the brand image maronF) lthough technically , regarding warranty period, the price it is on par with its competitors , the area where it lacks is in bringing awareness among the consumers , the company should take immediate initiation in advertising the product , so as to create awareness among customers, another area of setback to maron two wheeler battery is that the company doesn4t have any tie,ups with the original !Duipment manufacturing dealers , while talking to the retailers , majority of them opined that , most of the customer insist to have their new battery with same brand that of the old one, this tells us the importance of tie, ups with the "!(s ) *he distribution of maron two,wheeler battery is different, the company doesn4t have direct link,ups with retail market , each area is segmented and given to franchises , in our research we found mi1ed responses regarding this distribution chain , the other side who complained us, their main problem is that , there is no set policies for these franchises, the even run retail i)e) they even sell the product directly to the customer , where he gets lesser price than what he might got at the retailer, retailers are unhappy with this) (ost important of all is that, during my research i found that there is a lot of shortage of two wheeler batteries in market at present, lot of retailers complained about time delay in supplying the orders, i think this is the right time for new entrant like maron to capture the market , they should make their supply chain effective so as to reach the future demands of market) 48 H) Q#!S*I"&I-! 49 %ar!et #nalysis o" #$aron Batteries H&estionnaire &ame of the shop0 Place0 Phone0 : Fre you dealing with *wo Wheeler batteriesS EaF /es E F EbF &o E F ;F What are the brands are you dealing withS EaF !1ide E F EbF maron E F EcF SB E F EdF ($" E F EeF (inda E F EfF "thers E F 9FWhat brand do you suggest for the customersS ns0 S R Strongly gree, R gree, & R &eutral, ' R 'isagree, S' R Strongly 'isagree S & ' S' JF Price of the battery is the main factor which attracts the customer 6F Warranty period of the battery is the main factor which attracts the customer 8F Bree maintenance of the battery is the main factor which attracts the customer NF *he distribution chain of maron batteries is good HF $ustomers are aware of the brands available in the market =F *he first choice of the customer is maron :7F *he sales of maron has increased compared to past ::F *he replacement of fault batteries is Duick in case of maron) :;F you have sufficient stock of the brand maron ) :9Fcan u suggest, how maron could improve to serve you betterS $ns' 50 9 3&3&20-4$567 51 /',T O7 1OOK, :) (3%"*-, &-!S% .), ;77H, (arketing -esearch, Pearson Prentice %all, &ew 'elhi) ;) ."*3!- P%I3IP M .!33!- .!<I&, ;779) (arketing (anagement, &ew 'elhi0 Prentice %all of India) 9) I$(- P#23I$*I"&, ;77N) (arketing (anagement, %yderabad0 I$(- Publication) J) *he I$BI #niversity Press,;77N, Project M Profit, %yderabad, I$BI #niversity /ist of websitesA 5" www"amarara#a"$o"in ;" www"amaron"in ?" www"batteryfa)"or+ >" www"iniamart"$om 52