Part A IFB Full Project Final REPORT

Organization study of IFB Automotive Pvt Ltd
PART –A
CHAPTER - 1
INDUSTRY PROFILE
Auto components Industry
Introduction
Indian auto component industry is robustly driven by the growth in demand for
automobiles. The sector has become a lucrative business proposition for global players,
majorly owing to two factors. The demand for automobiles is increasing day by day in
the country. India, a market with high potential for the automobiles sector, is expected to
witness a three-fold increase in demand for automobiles by 2020. Secondly, all major
global auto-makers are establishing their bases here due to highly positive business
environment, favorable policies and government support.
The Automotive Component Manufacturers Association of India (ACMA) is the

nodal agency for the Indian Auto Component Industry. Its active involvement in trade
promotion, technology up-gradation, quality enhancement and collection and
dissemination of information has made it a vital catalyst for this industry's development.
Its other activities include participation in international trade

fairs, sending trade delegations overseas and bringing out publications on various
subjects related to the automotive industry. The Automotive Component Industry's
output amounted for the financial year 2010-11 US$ 39.9 billion with a growth rate of
33% against financial year 2009-10
History of Auto Component Industry

The Indian auto component industry started out small in the 1940’s,supplying
components to Hindustan Motors and Premier Automobiles. In the1950’s,the arrival of
Telco, Bajaj, Mahindra and Mahindra led to steadily increasing production . In India,
the vehicle industry till the 1980s was characterized by an oligopoly structure, small-
scale operations, high cost of production, technological obsolescence and numerous
government regulations. During these periods, there was a tendency for vehicle
RNSIT, Department of Management Studies Page 1

manufacturers to produce parts and components in-house and components manufacturers

started mainly to cater to replacement demand.
It was however in the 1980, with Maruti, that growth suddenly accelerated and the
industry came of age. Before entry of Maruti, majority of the components were produced
in house by vehicle manufacturers leaving uneconomic volumes and lower profits
margins. But the entry of Maruti Udyog Ltd (MUL) in mid 80s led to a paradigm shift in
the auto ancillary sector. The Boon time for the auto components industry started with
the arrival of India’s people’s car. This gave birth to a variety of new age auto
components manufacturers who manufactured components that combined the best of
technology with quality. With the success of Maruti, the paths of Indian auto component
industry took an upswing with the climbing of export Charts as a result of low cost labour
and material. The giant players in automobile industry encouraged and facilitated growth
of auto component industry around their units.
Graph 1.1: MARKET STRUCTURE OF INDIAN AUTO COMPONENT
INDUSTRY
Supply to the Original Equipment Manufacturer constitutes the major share of the
Indian auto component market, at 50 per cent of the total market, followed by the
replacement market. Exports account for roughly 15 per cent of total sales. In terms of
the component type, engine parts lead the sales, followed by drive transmission and
steering components.

Table 1.1: INDUSTRY’S COMPONENTS IN INDIAN MARKET
Chart 1.2: Various Product Categories in Auto Component Industry
Performance growth of Auto Component Industry

The growth in the Auto Component Industry over the last few years has been
fuelled to a large extent by the investments that have flown into this sector. The auto
components industry has attracted investments, to the tune of US$ 5.4 billion, in 2006-07
alone. The bulk of these investments have been made by Indian companies, which have
expanded their manufacturing capacities. India expects to attract US$ 5 billion in foreign
direct investment (FDI), over the next five years in this sector.

Present Scenario and GDP of Indian Auto component Industry
The Indian auto component industry is expected to achieve an annual turnover of

USD 110 billion by 2020, for which a total investment of USD 35 billion is likely to be
made.
According to a report, jointly prepared by Automotive Component Manufacturing
Association of India (ACMA) and consultancy firm Ernst & Young, the industry is
expected to contribute 3.6 per cent of India's GDP by 2020 from the current level of 2.1
per cent.
New heights have been scaled by the industry in the year 2010. In January 2010,
total automobile sales in the domestic market reached 11,14,157 units, the Charts shows
an increment of 44.9% compared to the sales units of 7,68,698 of same period last year.
Even for the month of April-October 2010 after a gap of 11 years, total automobile
sales in India stood at 11,20,081 units. Annually, the Indian automobile industry is
growing at an average rate of 30% and marking itself as one of the fastest growing
industries in India.

CHAPTER-2
COMPANY PROFILE
2. a. Background and Inception of the company
IFB Automotive Pvt. Ltd., a pioneer in design, development and manufacturing

of Seating systems, Door systems, Latches and Automotive motors has built a
reputation as a leading solution provider for safety critical and comfort related products
in the automotive industry. To meet the growing needs of the auto industry, IFB
Automotive has spread its manufacturing base across different parts of India to ensure
just in time supplies to its customers.
IFB Industries Ltd is an Indian company. The company is engaged in

manufacturing and marketing engineering products. They operate in three segments,
namely engineering, home appliance and others. The engineering divisions are located
at Kolkata and Bangalore.
The company's product range includes fine blanked components and sub-
assemblies, using Fine blanking technology. They also provide household appliances,
including washing machines, dryers, microwave ovens, and dishwashers. In addition,
they manufacture motors for white goods and automotive applications.
IFB Industries Ltd was incorporated in the year 1974 as Indian Fine Blanks Ltd
in collaboration with Hienrich Schmid AG of Switzerland. The company was
established with the objective of manufacturing fine blanking tools press tools and fine
blanked components used in a wide range of precision engineering industries. In the
year 1985, the company took 4.84 acres of land on lease at Gangarampur in West
Bengal for the manufacture of high technology machines as well as for future
expansion-cum-diversification programs.
In the year 1988, the company set up a new division, namely Project and
Construction division to take up projects abroad as well as in India. In addition, the
company in association with P A Rentrop Hubert and Wagner GmbH & Co KG West
Germany set up a joint venture company called RHW India Pvt Ltd in India for the
manufacture of automatic seat adjustment mechanism.

In the year 1989, the company entered into collaboration with Bosch-Siemens
Hausgerate GmbH, Germany for production of fully automatic washing machines and
for the manufacture of the state-of-the-art domestic appliances.
IFB Automotive Milestones
Year Division
1989 IFB Automotive Seating & Systems, Bangalore Established
1989 Launched Seat Recliners
1995 Launched Seat Sliders
1995 Launched Window Regulators
1999 Launched Blower Motors
2000 Launched Radiator Motors and Condenser Motors
2003 Launched Door Latches
2003 R & D Center, Bangalore Established
2004 Launched Seat Latches
2004 Launched Door Modules
2005 Launched High strength recliners and sliders
2006 Launched Seat Frames
2007 Launched Window Regulator Motors
2008 Launched Recliner cum Flat Fold, Adjustable Arm Rest,

Rotary Recliner
2010 Launched light weight and cost effective Power Window

Motors
2011 Launched Power recliner and Power Slider
2011 Launched Fan Motor and Shroud Assembly

2. b. Nature of business carried
IFB Automotive Pvt. Ltd. is a pioneer in Design and Manufacture of seating

systems, door systems, latches and automotive motors. The company has built a
reputation as a leading technology provider for safety critical and comfort related
products in the automotive sector.
2. c. Vision, Mission, and Quality Policy
Vision:
To be the vehicle manufacturer's first choice for safety and comfort related
products through innovation and quality excellence.
Mission:
 Our mission is to create and deliver high quality and innovative products that will
contribute to our customer's success and deliver value to our shareholders.
 We shall provide complete solutions through our system capabilities in design,
analysis, development, testing and validation.
 We are committed to environmental preservation and social responsibility.
IFB Automotive Pvt ltd, Company’s Punch Line:
“Your Safety and Comfort is our Concern”
Quality Policy:
Quality Policy objective statements of IFB Automotive Pvt Ltd are as follows:
 To visualize customer needs and provide satisfaction through prompt supply

of value added goods and services continually.
 To achieve and sustain excellence in performance through use of

appropriatetechnology, cost efficient operations and team work of all associates.
 To have world class human resources through training and motivating them
for higher aspirations and also maintain safe working environment.

IFB has good quality systems and based on the credits given by customers the
following are the quality credentials are:
YEAR QUALITY CREDENTIALS
1998 ISO 9000
2000 QS 9000
2003 ISO 14001
2003 TS 16949
2004 100 PPM
2006 FORD Q1 STATUS
2012 6 SIGMA JIT
Chart showing the quality credentials at IFB Automotive Private Ltd.

Product Profile
IFB Automotive Pvt Ltd, are into the production of 3 major categories of
products, they are as follows: -
 SEATING SYSTEMS
 DOOR & LATCH SYSTEMS
 AUTOMOTIVE MOTORS
Chart showing the IFB automotive Products: At the core of safety.
Seating Systems
IFB Automotive designs and manufactures multi functional seating systems

configurable to cater to specific Original Equipment Manufacturer requirements.

The company backed by its comprehensive expertise in mechanical & electronic

components is able to produce:
 Seat Recliners – Lever type & Rotary  Two Position Adjuster

type  Seat Floor Latch
 Seat Sliders  Rear Seat Back Latch
 Adjustable Arm Rest  Recliner cum flat fold
 Height Adjusters  Power sliders
 Front Seat Back Frame Assembly  Power Recliners
 Front Seat Cushion Assembly
Seating Systems is an across-the-board solution provider of seating mechanisms

with capability of supplying both manual and powered mechanisms. The mechanisms
are designed to adjust basic functions; angle of back rest, linear movement of the seat
and height adjustment of the seat to augment the comfort systems of the car. This
system at the heart of seating empowers automakers to offer the end users safe &
pleasure seating and driving experience.
Chart showing products at seating division(seat recliner, seat slider, front seat back
assembly)
Door and Latch Systems
Doors comprise the second most complex system in the vehicle since they
combine aesthetics with safety, reliability & functionality by accommodating many
intricate mechanisms in a compact space.

IFB Automotive is the only full service system supplier in India, with design &
manufacturing capability for window regulators, latches and door modules.
The company is proudly associated with all major Original Equipment

Manufacturer requirements and has been supplying window regulators, door latches,
hood and trunk lid latches. The company designs and manufactures powered and
manual window regulators and latches.
Our diverse manufacturing facilities are supplemented by our continual R&D

efforts. All our assembly modules are equipped with mistake proofing and online
functional checks to deliver consistent quality products.
IFB have an excellent and dedicated engineering team that develops:
 Assembly modules with appropriate level of automation

 Special purpose machines & online testing machines
 Jigs, Fixtures, Tools etc., with in-built mistake proofing.
Chart showing the products in door and latch system(window sliders(manual and
automatic), doors )
Automotive Motors
The Motor Division was started in 1999 to produce HVAC Blower motors &
Condenser motors for Air conditioning, Engine Cooling Fan Motors for various
passenger car applications in India.

At present IFB manufacture five lakhs motors annually with a planned capacity of 1
million motors. The division has entered into a strategic license agreement with
Siemens in India.
Product ranges includes:
 HVAC Blower Motors 12V / 24V

Power rating upto 360W
 Condenser Motors 12V / 24V

 Engine Cooling Fan Motors 12V / 24V

 Power Window Regulator Motor 12V

Torque upto 16Nm
 Fan Motor and Shroud Assembly
Chart showing the products in motor division(fan motor, window motors )

Chart showing IFB Company’s Esteemed Customers
Area Of Operations
To meet the growing needs of the auto industry, IFB Automotive has spread its
manufacturing base in different parts of India to ensure just in time supplies to all its
customers.
Nationally the company is situated in following places:
 Bangalore - Main Manufacturing Plant and R&D Centre
 Chennai - Assembly Plant to support Southern Region Customers
 Pune - Assembly Plant to Support Western Region Customers
 Binola&Rudrapur - Assembly Plant to support Northern Region Customers

2. f.Ownership Pattern
IFB Automotive is a Private limited company

A Private Limited Company is a type of company that offers limited liability to
its shareholders but that places certain restrictions on its ownership.
BOARD OF DIRECTORS
KEY POSITION NAME Shareholder Pattern

%
Chairman MrBijon Nag 32%
Joint Executive Chairman MrBikramjit Nag 28%

& Managing Director
Director Dr. RathindraNathMitra 26%
Compliance Officer Mr. G. Raychowdhury 14%
2. g. Competitors Information
The main competitors of IFB Automotive Company are
India Based:
 Swaraj
 IEPL
Other competitors globally are:
 DAS – Korean ,
 Faurecia – France ,
 Keiper – Germany
 Imasen – Japan
 CRH – Germany

Major Competitor’s Information
FAURECIA
It is one of the largest international automotive parts manufacturers in the world.
Company Products Market Share (%)
Faurecia Seats, Cock pits, doors, 57.4

acoustic packages, front
end and exhaust.
Headquartered in Nanterre, France, Faurecia operates over 238 production sites

and 38 R&D centres in 33 countries worldwide.
Faurecia joined the United Nations Global Compact in 2004. Faurecia, the world's
number three seat supplier designs and produces the complete seat and its main
components: frames, adjustment mechanisms, runners, foam and covers, and safety and
comfort features. This group accounts for 35% of the company's sales.
SWARAJ
Formerly Punjab Scooters Limited, a sick unit in backward area, was revived by PTL in
1980 with full management control. SAL discarded unviable scooter line and
diversified into manufacturing Seats,
Year of Establishment: 1980

Products & Services
Company Products %of Share
Swaraj Auto Components, Automobile Seat, 40.6
Recliners, Seating System, Tractor Seat

2. h. Infrastructural Facilities
IFB automotive has a State of the Art Manufacturing facility. The management
has provided adequate infrastructure facilities to carry out departmental and
manufacturing activities, like.
 Buildings
 Machines and tools
 Parking facilities
 Conference Rooms
 Cafeteria/Canteen
 Medical Facility Room
 Material Handling & Safety Equipments Room
 Quality control Laboratory and Testing Equipment Room.
Achievement / Awards
IFB Automotive is known for its good quality manufacturing of fine blanking parts and
service. For their excellence performance they have won many awards and
achievements as follows:
ACHIEVEMENTS
YEAR QUALITY CREDENTIALS

1998 ISO 9000
2000 QS 9000
2003 ISO 14001
2003 TS 16949
2004 100 PPM
2006 FORD Q1

AWARDS
AWARD NAME COMPANY
Design & Development award Maruti Suzuki
Vendor performance award Maruthi Suzuki
2. j. (Fig: 2.7)Work Flow Model – Manufacturing process (End to End)
Sub-
Raw
contract(
Material
drilling)
IFB
Automotiv
e Stores
Customer
IFB Sub Packaging

Assembly
Vendor Plating / Coating IFB Final

Assembly

Manufacturing process (End to End)
 Raw material–In this stage raw materials flow from suppliers to the
manufacturer or assembling house.
 IFB Automotive Stores – In this stage raw materials are received and stored in
warehouse for further use.
 Sub Contract–In this stage its is contract given for the out sourcing company
for making raw materials into the proper auto parts and sending it back to IFB
company.
 IFB Sub Assembly – In this stage the auto parts which is been sent back from
sub contract to the stores at IFB then it goes into the manufacturing plant for sub
assembling the auto parts.
 Plating or coating – At this stage after the process of assembling happens then
it is sent to plating/ coating of the parts this is from vendor or outsourced.
 IFB final Assembly – At this stage after the process of plating / coating
happens the materials is been sent back to the IFB final assembly were the
materials are assembled finally.
 Packaging – After the process of final assembly happens then it is packed at

IFB and stored in warehouse for final dispatch.
 Customer – In this stage after the products is been manufactured and packed
based on the order of the customers the products are been delivered to the
ultimate customers.

2. k. Future Growth & Prospects
The emergence of India as a major player on the global economic landscape has
triggered an era of high growth across all the sectors. The company wants to expand
their business by producing innovative products for next 3years (seating systems).
Following are the future plan of action at IFB Automotive Pvt ltd:
 Power sliding mechanism
 Head rest Tilting
 Lumbar Support
 Power Recliner Mechanism
 Universal sliders - S2K10
 High strength L2K9 Recliner
 High strength Low cost recliner – L2K10
 Heavy Duty ABTS Recliners
 Rotary recliner
 Rotary cum lever
 Lumbar Support mechanisms
 Head Rest Tilting mechanisms
 Slouch mechanism

CHAPTER-3
MC-KENSYS’S 7S MODEL
The 7-S framework was developed by the consultant at the Mckinsey Company,
a very well-known management consistency firm in USA, towards the end of 1970’s to
diagnose the cause of organization problem and to formulate programs for
improvement the 7-S frame work.
The 7s model is a tool for managerial analysis and action that provides a
structure with which to consider a company as a whole so that the organization
problems may be diagnosed and strategy may be developed and implemented. The 7s’s
is a framework for analyzing organization and their effectiveness. It looks at the seven
key elements that make an organization successful or not.
Chart 3.1: MC-Kensys’s 7s Frame work.

3. a. STRUCTURE:
The structure is the skeleton of the whole organizational edifice. It is built by

dividing the total task into smaller groups and creating coordination among the groups.
The structure here is mainly concentrated on seating systems because the major
turn over and the major part of the business carried is under seating division only so,
the structure is FUNCTIONAL ORGANIZATIONAL STRUCTURE based on
Seating division at IFB Automotive Pvt Ltd.
Chart 3.2: Showing Organization Structure of IFB Automotive Pvt Ltd.
VICE CHAIRMAN
CEO
HR SCM V.P & HEAD DOOR LATCHES IT

SEATING SYSTEM SYSTEMS
PGRM R & D MANAGER PROCESS ENGG & QUALITY D&D

MGMT
OPERATIONS
MANAGER
Designers Designers Designers SQA Designers
Analyzers
Analyzers Analyzers Testing
Analyzers
Drafting
Process
Shift
QA
Supervisor
PPC

Various Departments at IFB Automotive Pvt Ltd
HR department
Human resource management at IFB Automotive Pvt Ltdis one of the most
important functions it includes Resource Management Group and learning and
development, also comprises of various sub-functions that facilitates the identification
and development of talent that helps the organization meet its business objective.
The various functions are as follows:
 Talent planning – includes functions like manpower planning, staffing, skill

mapping HR budgeting.
 Training –aims at enhancing the skill. Also takes care of induction and pre
process trainings.
Compensation and benefits- envisages the compensation and benefits practices of
benchmarking, fitments, policies and guidelines.
Marketing department
Marketing department look after all the marketing activities like sales, distribution
and business development etc.
Functions
Order taker
Creating quotations
Answering the customer queries
Delivery of products in time
Finance department
The main purpose for any organization to exist is to have financial gains, thus
each activity of the organization should justify the cost attached to it. Finance is life
blood of any organization hence it becomes very important to manage the funds properly.
The finance department consists of diverse procedure for accounts related to personnel,
costing budgets, tax and credit, general accounts, bank and payroll, bill collection etc.

IFB Automotive Pvt Ltd has a strong financial background and financial
department manages and controls the financial activities of the organization like,
 Budget allocation
 Salary distribution
 Bill payment etc
Production department
Production department is one of the important functional area of IFB Automotive
Pvt Ltd. The function of this department is,
Work process management: managing and controlling furniture manufacturing as

per the plan and schedule.
Inventory management: managing and controlling inventory
Design department
IFB Automotive Pvt Ltdis known for best designing in the automotive products in
attractive design. All the credit goes to designing department.
Functions
Designing auto products

Creating innovative designs
R&D department
IFB Automotive Pvt Ltd has research and development department which enables
the company to identify the latest trends of the automotive products manufacturing
industry.
Information technology department
Information Technology Dept plays a major role in connecting the

communication between customers, suppliers and in-house employees through email and
internet.
Supply chain department
Supply chain refers to a business or organization attempting for supplying of

goods or services in and out the company to accomplish the goals of the enterprise.
Functions are
 Order placing for raw material  Analyzing of suppliers

3. b. SYSTEM:
A system refers to formal process and procedures are used to manage the
organization.
The main system used here to communicate to the higher authority is Information
Technology, Word of mouth, manual form of writing, SAP for Material handling, and
TS 16949 system. The company has provided internet facility for communicating with
the clients through mails and telephone facility.
ISO/TS16949 is an ISO technical specification aiming to the development of

a quality management system that provides for continual improvement,
emphasizing defect prevention and the reduction of variation and waste in the supply
chain.
SAP is a German software corporation that makes enterprise software to manage

business operations and customer relations SAP is the market leader in enterprise
application software.
SAP Business One software is used by IFB, which manage sales, track inventory,
monitor customer demand, coordinate loyalty programs, and view supplier schedules all
in a single system. The software provides support for:
 Order processing – picking, packing, final delivery – and shipment tracking

 Managing inventory across multiple warehouses and locations
 Predicting what customer will buy based on past transactional data, and managing
production and stock levels to match demand
 Tracking customer contacts and purchasing preference
 Executing more targeted promotions, offers, and campaign management
 Increase sales by reducing stock-outs, so you have the right items on hand when
customers come to the store.
 Broaden your market reach with online presence and sales.
 Reduce inventory costs through accurate and streamlined inventory and
distribution processes.

3. c. STRATEGY:
Strategy is a plan or course of action in allocating resources to achieve

identified goals over time. Unlike tactic, strategy is well thought and often rehearsed. It
transforms the organization from the present position to the new position described in
the objectives, subject to constraints of the capabilities.
 Quality Assurance Strategy.
o The company is planning to give best Quality products
o Company’s aim is to provide the best quality under competitive

pressure.
 Pricing/Cost Strategy.
o IFB automotive provides best quality products at best price, compare to

that of the competitors.
 Delivery Strategy.
o The company mainly concentrates on the On Time Delivery of the

products whenever the clients orders for the products.
3. d. STYLE:
Style is the way in which key managers behave in achieving organizational goals, that is
the management style. IFB Automotive posses PARTICIPATIVE LEADERSHIP
STYLE. Where the top management take suggestions from the subordinates and work on
it and if its really beneficial to the organization then they will implement it.
These decisions are made through mutual exchange of knowledge and by sharing
the experience of the employees. The top management consults their immediate
subordinates in case of any important decisions, which are of strategic in nature.

Implementation:
Toyota gave a contract for manufacturing of Seat sliders and recliners on Dec 29th 2011,
for the same reason there was a conference held on Jan 2nd 2012 with all the employees
and managers. It had given an opportunity for employees to participate in decisions like
designing of products. A best design was selected based on employee’s suggestion and
opinions and the same design was implemented for manufacturing the products.
3. e. STAFF:
Staffs are personnel categories within the organization, such as engineers, sales
persons, etc. Unlike traditional organizations, new leading organizations put more
emphasis on hiring the best staff. They provide their staff with rigorous training and
monitoring support, and give incentive for their staff to achieve professional excellence.
This forms the basis of these organizations’ strategy and competitive advantage over
their competitors.
Table 3.2: Showing Total Staff- As on: 10th Jan 2012
Key position No. of employees Duties and responsibilities

Vice Chairman 1 -Strategic planning
-creating vision and mission
CEO 1 -Decision maker
- Leader
Functional Managers 11 -Ensuring that new
appointees are introduced to
the policy during their
induction
-Ensuring that line
managers live up to their
responsibilities to approve
flexible
Operational Employees 850 - Ensure that the quality
standards of product are
met.
IT Executives/Technical 292 -handle technical problems
Employees - technological skills
R&D and Design Personnel’s 52 -prepare innovative designs
Marketing Executives 15 -handle advertisement
objectives.
- handle promotions
Total number of employees 1222

3. f. SKILL:
Skill is the character that one should posses to perform a given job. It includes
those characteristics company expects its members to have to perform the assigned job
effectively.
Key position Skills required
CEO & Vice Chairman  Leading

 Motivating
HR Manager  Involves motivating a large team of
people with diverse occupations.
 Time-management and scheduling
skill.
 Strong communication skills
 Organizational Skill
 Management skill
 Analyzing skills of employees
needs.
 Maintaining the employee’s
records.
Assistant Manager  Working within a team

environment
 Numerical skills
 Flexibility
 positive attitude
 Able to work evenings and
weekend shifts
Finance and accounting officers  Accounting procedure
 Taxation
 Balance sheet analysis
 Some fare idea about financial
product
 Re-consolidation of bank accounts
Basic computer knowledge in
(tally and MS Excel
Auditor  Complete knowledge about

accounts
 Tax laws
 Financial analysis
 Latest rules and regulations
 Masters in finance aspects

Marketing executives  Should have a plan advertising

 Able to convenience the customers.
 Should have plan for meeting
people interacting with them
Marketing the products
 Good health and unblemished past

Security record
 If x- service man should have been
discharged with exemplary
character they should be prepare to
work during nights also
 The basic knowledge of control
over fire accident.
 They should know technical skills

Information technology executives  They should have the capacity of
handling h/w and s/w.
 They should be having the
capability of rectifying errors.
 Problem solving skills

Operational employees  Interpersonal skills
 Convincing skills
 technical skills
 Learning skills
 Machine handling skills
Measures taken to close skill gap:
To address the skill gap the company had conducted various training programs
some of the major training programs are as follows
 On the job training is given for operational employees to improve the efficiency
in their works.
 Presentations - Regular presentation will be given by the experts from IT

departments about the latest updates and how to implement the latest technology
available in the market, to all the employees of IFB Automotive pvt ltd.

3. g. SHARED VALUES:
Shared values refer to a set of values & aspirations that goes beyond the
conventional formal statement of corporate objectives. Culture of an organization is
usually determined by some of the value benefits and working practices that exist
within an organization operational standard.
The Shared values that are followed at IFB are as follows:
 ‘Your safety and comfort is our concern’.

 Role model in driving social responsibility.
 Respect for individuals.
 Learning and sharing.
 Reliability, Credibility, and Legality
 Good Interaction Between the higher authority towards the lower.
 Sensitive towards the environment, safety and health of the employees.

CHAPTER - 4
SWOT ANALYSIS
A scan of the internal and external environment is an important part of the

strategic planning process. Environmental factors internal to the firm usually can be
classified as Strengths (S) or Weaknesses (W), and that external to the firm can be
classified as Opportunities (O) or Threats (T). Such an analysis of the strategic
environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's
resources and capabilities to the competitive environment in which it operate. As such, it
is instrumental in strategy formulation and selection. The following diagram shows how a
SWOT analysis fits into an environmental scan:
(4.1) FRAME WORK OF SWOT ANALYSIS:
SWOT
ANALYSIS
INTERNAL EXTERNAL
ANALYSIS ANALYSIS
STRENGTHS WEAKNESS OPPURTUNITIES THREATS

STRENGTHS
A large Indian Original Equipment customer base.

Long presence and proven domain knowledge
Emphasis on continuous education & training.
Techniques for aligning digital strategy with organization and marketing strategy.
Established R&D working on Future products
Every employee is given an equal opportunity to develop himself and grow in his
career.
They have in house engineering management facility which is an advantage.
The company is indigenous in its manufacturing & designing i.e., SAP system is
used for designing and maintaining database.
WEAKNESS
They are not exposed much towards Branding and brand strategies related
aspects.
They are not focusing much on promotional activities.
High cost of Fine Blanking parts which effects in purchasing of raw materials.
Development lead time is too high since the company is having their own
designing department which requires more time in manufacturing products.
Due to age or personal reasons employees may leave the organization which
deplete skill force.

OPPORTUNITIES
India has been chosen as a global hub for Car manufacturing and exports.
Great scope for power driven machines.
Global OEMs looking at India as an auto parts sourcing base.
Growth in existing products and market, volume growth, increasing profit.
Increasing market share and customer share.
Growth in new product, existing markets and new markets.
In India and abroad the company has lot of opportunities in technical aspects for
designing and developing a product.
The company has got huge customers for business activities to survive in global
competition world.
THREATS
Tremendous pricing pressures due to local competition

Regular supplies issues may force loyal customers to switch to other companies
products.
Poor Supplier Base may affect regular supplies and delay in development.
The company has to face huge local and global competition that compete
(European, Korean and Japanese manufacturers) with well-equipped
infrastructure.

Table 4.1: Showing SWOT Analysis.
STRENGTHS WEAKNESS
In house engineering management  Lack in branding and brand
facility. strategies.
Every employee is given an equal  High cost of Fine Blanking parts.
opportunity to develop himself.  Lack in promotional activities.

Style of equal participation helps in
 Development lead time is too high
making effective designing.
R&D working on unique Future

products.
SAP system is used for designing.
OPPORTUNITIES THREATS
Global OEMs looking at India as an Pressures due to local competition
auto parts sourcing base. Customers are switching to other
Growth in new product, existing companies products due to supply
markets and new markets. issues.
They have got huge customers for Poor Supplier Base affecting regular
business activities. supplies.
Great scope for power driven They have huge local and global
machines. competition with well-equipped
infrastructure.

CHAPTER - 5
ANALYSIS OF FINANCIAL STATEMENT
(5.1) BALANCE SHEET as on March 2011

(5.2) PROFIT AND LOSS ACCOUNT for the year ended March 31, 2011

Table 5.3: showing the Ratio Analysis in IFB as on 2010-2011.
Ratio Analysis 2011 2010
Current Ratio 1.4191 1.7990
Asset Turnover Ratio 3.70329 3.9808
Return on Assets 0.2060 0.2055
Current ratio:
Current ratio shows that in year 2010 it was 1.7990 and in the year 2011 it was
1.4191. The bench mark of the current ratio is 2:1. Therefore the company liquidity
position is very favorable.
Asset Turnover Ratio:
Asset Turnover Ratio shows that in year 2010 it was 3.9808 and in the year 2011
it was 3.70329. As compared to both the years we can infer that there is a slight decrease
in the asset Turnover ratio, due to improper utilization of assets. By decrease in the asset
turnover the firm has increase costs and will decrease the eventual profit to its owners.
Return on Assets:
Return on asset shows that in year 2010 it was 0.2055 and in the year 2011 it was
0.2060. This is due to increase in EBIT. There is an increase in both fixed assets and
current assets therefore total assets are increased. Earning power of IFB APL is quite
satisfactory. The company is performing well.

CHAPTER-6
LEARNING EXPERIENCE
The whole project provided a lot of experience and helped to know about the
management practices in real and how it differs from those of theoretical knowledge and
the practically in the real life.
This training was framed to give an exposure towards how an organization works
and how theories learned in class rooms relates with actual events happening in an
organization.
Although I came to know lot of similarities between the theory and the practical
situation in the company and also there were many differences in their working style. The
main objective of practical training is to develop skill in student by supplement to the
theoretical study of business management in general.
Company helped to gain real life knowledge about the industrial environment and
business practices. Professors give us theoretical knowledge of various subjects in the
college but we practically exposed of such subjects when we get the training in the
organization.
 This project helped to understand the manufacturing and automotive sector

in Bangalore, its market conditions as well as current trends in terms of
strategies, marketing policies, and consumer decision making.
 It helped to understand the future growth prospects and expectations in
themarket. Organisational study helped in understanding the IFB
AUTOMOTIVE PVT LTD structure, work culture, products and services,
technological advancements.
 The experience at IFB AUTOMOTIVE PVT LTD Bangalore has really helped
me to understand the process and corporate culture that the organization has been
carrying on for many years.
 MC-Kensys 7s frame work helped me in studying the overall Chart of

theorganization and helped me in company analysis and preparing swot analysis.

Part A IFB Full Project Final REPORT

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Organization study of IFB Automotive Pvt Ltd

Auto components Industry

The Automotive Component Manufacturers Association of India (ACMA) is the

Its other activities include participation in international trade

History of Auto Component Industry

RNSIT, Department of Management Studies Page 1

manufacturers to produce parts and components in-house and components manufacturers

RNSIT, Department of Management Studies Page 2

Table 1.1: INDUSTRY’S COMPONENTS IN INDIAN MARKET

Chart 1.2: Various Product Categories in Auto Component Industry

Performance growth of Auto Component Industry

RNSIT, Department of Management Studies Page 3

Present Scenario and GDP of Indian Auto component Industry

The Indian auto component industry is expected to achieve an annual turnover of

RNSIT, Department of Management Studies Page 4

2. a. Background and Inception of the company

IFB Automotive Pvt. Ltd., a pioneer in design, development and manufacturing

IFB Industries Ltd is an Indian company. The company is engaged in

RNSIT, Department of Management Studies Page 5

IFB Automotive Milestones

1989 IFB Automotive Seating & Systems, Bangalore Established

1989 Launched Seat Recliners

1995 Launched Seat Sliders

1995 Launched Window Regulators

1999 Launched Blower Motors

2000 Launched Radiator Motors and Condenser Motors

2003 Launched Door Latches

2003 R & D Center, Bangalore Established

2004 Launched Seat Latches

2004 Launched Door Modules

2005 Launched High strength recliners and sliders

2006 Launched Seat Frames

2007 Launched Window Regulator Motors

2008 Launched Recliner cum Flat Fold, Adjustable Arm Rest,

2010 Launched light weight and cost effective Power Window

2011 Launched Power recliner and Power Slider

2011 Launched Fan Motor and Shroud Assembly

RNSIT, Department of Management Studies Page 6

2. b. Nature of business carried

IFB Automotive Pvt. Ltd. is a pioneer in Design and Manufacture of seating

2. c. Vision, Mission, and Quality Policy

 To visualize customer needs and provide satisfaction through prompt supply

 To achieve and sustain excellence in performance through use of

RNSIT, Department of Management Studies Page 7

YEAR QUALITY CREDENTIALS

1998 ISO 9000

2003 ISO 14001

2004 100 PPM

2006 FORD Q1 STATUS

2012 6 SIGMA JIT

Chart showing the quality credentials at IFB Automotive Private Ltd.

RNSIT, Department of Management Studies Page 8

 DOOR & LATCH SYSTEMS

Chart showing the IFB automotive Products: At the core of safety.

IFB Automotive designs and manufactures multi functional seating systems

RNSIT, Department of Management Studies Page 9

The company backed by its comprehensive expertise in mechanical & electronic

 Seat Recliners – Lever type & Rotary  Two Position Adjuster

Seating Systems is an across-the-board solution provider of seating mechanisms

Door and Latch Systems

RNSIT, Department of Management Studies Page 10

The company is proudly associated with all major Original Equipment

Our diverse manufacturing facilities are supplemented by our continual R&D