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INTRODUCTION

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INTRODUCTION

An organization is a social arrangement which pursues collective goals, controls its own

performance, and has a boundary separating it from its environment. The word itself is derived

from the Greek word organon, itself derived from the better-known word ergon. Organizational

structure is a mainly hierarchical concept of subordination of entities that collaborate and

contribute to serve one common aim.

Organizations are a variant of clustered entities. An organization can be structured in many

different ways and styles, depending on their objectives and ambience. The structure of an

organization will determine the modes in which it operates and performs.

Organizational structure allows the expressed allocation of responsibilities for different

functions and processes to different entities such as the branch, department, workgroup and

individual. Individuals in an organizational structure are normally hired under time-limited

work contracts or work orders, or under permanent employment contracts or program orders.

Havells India Ltd is an electronic equipment company which is a subsidiary and flag ship

company of QRG group, a billion dollar plus organisation. QRG group is one of the fastest

growing Electrical and power distribution equipment company in the country, manufacturing

products ranging from Building Circuit Protection , Industrial and Domestic switchgear ,Cables

and Wires, Fans, CFLs, Luminaries, Bath fittings and Modular Switches

The business today operates in a world of relentless and real-time change as they approach the

second decade of the 21st century. From shifts in the global climate to evolving economic and

demographic trends in the local communities, they live and work in an environment that

constantly challenges them to think a new about their customers, communities and

responsibilities as a company. They embrace these changes and their accountability as a business

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starts with the customers, nearly 10,000 employees, investors, regulators, partners and

communities. It ultimately extends to everyone who shares the interest in ensuring a clean,

secure energy future from national policy makers to industry peers at home and even overseas.

1.1 OBJECTIVE OF THE STUDY

Primary Objective:-

The main objective of the study is to have a practical knowledge about the functioning of the

organisation.

Secondary Objective:-

To understand the organisation structure.

To study various functional areas of the organisation.

To understand how theory matches with practice.

To understand the duties and responsibilities of various department heads.

To identify the strengths, weakness, opportunities and threats of the organisation.

1.2 METHODOLOGY OF STUDY

The organisation study has been conducted by using qualitative form of analysis. But enough

attention is given for careful and complete observation of organisation and its functions.

Sources of data collection

The main sources of primary data are:

1. Discussions and interviews with managers and employees of Havells India Ltd.

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2. Observation method.

Secondary Data

The major source of secondary data includes company manual brochures circulars, annual report

and various other internal documents. In addition to this related Articles from journals, books,

magazines, internet were referred.

1.3 PERIOD OF STUDY

This study has been conducted at Havells India Ltd, during the period 17 May 2010 to 21st June

2010

SCOPE OF STUDY

The study is confined to gain some knowledge about the culture and structure of the organization

and the functions of departments of Havells India Ltd, Ernakulam.

1.4 LIMITATIONS

The main constraints or limitations for the study were:

Limited time available for the study.

Authorities of all the departments had a busy schedule and hence there was no

scope for detailed interviews or interaction with them.

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INDUSTRY PROFILE

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2.1WORLD SCENARIO

Electrical Hardware includes an extensive range of electrical hardware products, components and

accessories that are used for the distribution, supply and usage of electricity. It includes

everything from electrical cable, wire and meters to lighting fixtures, bulbs and fans.

Electrical Hardware Products

Some of the important electrical hardware products types are listed below:

Electrical cable, Electrical socket, Electrical Wire, Electric Cord, Switch Gears,

EarthingAccessories,Cable&WireFittings,ElectricalPlug,Adapters,Busbars,ElectricMeters,

Lighting Fixtures, Electrical box, Light bulbs, Electric Fans.

World electric transmission and distribution equipment demand will rise 4.4percent

annually through 2011.The industrial and commercial sector will see the strongest gains as

cogeneration proliferates and products such as high voltage transformers become more common

outside of the utility sector.

Electrical Hardware Products Applications

Electrical hardware products have found uses in a variety of industrial applications, including

Electric power distribution and supply

Vehicle systems

Production and manufacturing

Communication systems

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Large scale transportation and equipment

Electrical Hardware Industry

The electrical industry provides an important service to modern life. It provides people

with the most prevailing form of energy known to mankind-electricity. Electrical industry

supports the economic-growth and productivity, promotes business development and expansion

and generates vast employment opportunities foe people across the world. The industry includes

establishments primarily engaged in the manufacturing, supply trade and retaining of electric

hardware products.

Electrical Industry

The electrical industry uses a number of applications of petrochemicals to help the industry

perform better and improve manufacturing processes. These petrochemical products are very

essential for the manufacturing of several of the electrical equipments as it helps in insulation,

prevention of loss of energy and safety.

Electrical Industry Trends

a. Increasing construction activity driving the demand for electrical hardware products

According to the recent market studies, the office construction in 2007 had an advanced

growth and this trend will continue till 2010.In the long run growth in the office construction

market is expected between 6% and 7% annually till 2011 and it will reach $75.1billion by then.

This forecast could prove to be profitable for electrical fittings and cable industry worldwide.

The demand for automation solutions will only continue to grow as industry continues to seek

the most flexible and efficient power and control devices to increase system.

b. Increased employment-In recent times, employment in the electrical hardware industry has

gone up globally.

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2.2 INDIAN SCENARIO

The Indian Electrical industry is now finding a good response for its products in the international

markets. What has brought this about? The industry has invested in upgrading technology and

improvements in quality systems so that it is able to offer products/systems contemporaneous to

what the developed countries make at much lower price.

Electricity has become an inseparable part of our daily life. In homes, offices, industries and

hospitals they are myriad systems, equipment and sophisticated appliances that depend on

electrical energy.

Electrical equipment such as motors, transformers, switchgears etc. are used by all sectors of the

Indian economy. Some major areas where these are used are the multi-crore projects for power

generation including nuclear power stations, petrochemical complexes, chemical plants,

integrated steel plants, non-ferrous metal units etc.

Indian electrical industry

a. Prospects of the Indian Electric Industry.

Like every other industrial sector in India, the Indian Electrical Industry too is slowly

emerging from out of its “protective cover”. Since the last decade, India has witnessed what

global players have achieved and what they are capable of achieving. We are becoming aware of

competition on our turf. Many organisations in this industry are looking overseas to develop the

export markets owing to reduced demand at home.

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b. Future Prospects

The domestic market in India is itself large, and one must firstly satisfy this market with

products that meet international quality standards. With increasing globalisation, every

international player is now operating in India, providing goods and services complying with

international quality. The Electrical Industry in India is growing to its full potential in the coming

years and no doubt India will soon come to be recognised for quality products and services

which in turn, will bring this industry to a position of true leadership.

2.3 Factors Governing the Growth of this Industry

Research and development played an important role to the increased productivity and

higher-value added electrical products.

Foreign investments accelerated growth in production and export as well.

Global industries like medical, telecommunication, etc have been cordially supported by

electrical industry.

Increase in income changed living standards of the common mass. As a result, it

increased the demand of electronics.

Asia pacific region is emerging as the most spinning place for the consumer electronics

industry.

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COMPANY PROFILE

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About the company

QRG Group, a billion-dollar-plus group which ranks among the top electric product

conglomerates in the worlds and is a major domestic and global player in the production and

sales of an impressive range of electrical products. The group comprises of 4 companies—

Havells India Ltd (the flagship company with Havells and Crabtree Brands), Standard Electricals

Ltd, Havells-Sylvania and QRG Healthcare.

With 19 state-of-the-art manufacturing plants, 91 branch offices and a strong backing of

over 8000 professionals across the globe, the group has achieved rapid success in the past few

years.

The flagship company, Havells is acknowledged as a manufacturer & supplier of the widest

range of low voltage electrical equipment and has become a name synonymous with excellence

and expertise in the industry.

Driven by a philosophy of dreaming big, empowering team members, a culture based on

transparency, honesty, a high focus on ethical values and entrepreneurship at every level, the

QRG Group of today is literally a dream come true-a world class company which is one of the

most admired organisations in India. With a number of strategic alliances in place, QRG Group

has shown phenomenal growth rate with the help of various joint ventures, acquisitions, mergers

and takeovers. The group, catering to the needs of residential and industrial market globally, has

10 manufacturing units in India.

Following its philosophy of “thinking big”, the group’s product basket offers end-to-end

electrical solutions. The company manufactures a wide range of high quality electrical products

suitable for domestic and industrial use.

QRG’s International Business Division (IBD) is a dynamic team of professionals who are

committed to fulfil the aspirations of the organization in the international markets. IBD caters its

international clientele spread over 51 countries with offices in Dubai, China, Nigeria and

distribution networks in all major countries.

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Innovation is the hallmark of every vital development at QRG. New ideas, inventions deepen

scientific knowledge and give its workforce a new impetus towards technical progress. The

responsibility of providing its customers the best products and zero defect services to enable

them to be comfortable and secure in usage of electricity.

HAVELLS INDIA LTD

Havells India Ltd. is a billion-dollar-plus organization, and is one of the largest & India's fastest

growing electrical and power distribution equipment manufacturer with products ranging from

Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Power

Capacitors, CFL Lamps, Luminaries for Domestic, Commercial & Industrial applications,

Modular Switches, & Bath fittings covering the entire gamut of household, commercial and

industrial electrical needs. Havells owns some of the prestigious global brands like Crabtree,

Sylvania, Concord, Luminance, linolite, & SLI Lighting.

With 91 branches / representative offices and over 8000 professionals in over 50 countries across

the globe, the group has achieved rapid success in the past few years. Its 8 state-of-the-art

manufacturing plants in India located at Haridwar, Baddi, Noida, Sahibabad, Faridabad,

Bhiwadi, Alwar, Neemrana, and 7 state-of-the-art manufacturing plants located across Europe,

Latin America & Africa churn out globally acclaimed products. Havells is a name synonymous

with excellence and expertise in the electrical industry. Its 20000 strong global distribution

network is prompt to service customers.

The company has acquired a number of International certifications, like BASEC, CSA, KEMA,

CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI

(Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have

emerged as the preferred choice of electrical products for discerning individuals and industrial

consumers both in India and abroad.

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In an attempt to transform itself from an industrial product company to a consumer products

company, Havells launched consumer electrical products such as CFLs, Fans, and Modular

Switches & Luminaries. The company has been consistent in its brand promotion with

sponsorship of Cricket events like T20 World Cup, India-Australia Series and IPL Season 1 and

2. The company has also taken the initiative to reach directly to the consumers through "Havells

Galaxy" – a one stop shop for all electrical and lighting needs.

Social and environmental responsibility has been at the forefront of Havells operating philosophy

and as a result the company consistently contributes to socially responsible activities. For

instance, the company is providing mid-day meal in government schools in Alwar district,

covering 15000 students per day. Besides this company has acquired land for constructing a

larger kitchen with all the modern facilities to serve freshly cooked food to 50000 students in the

area. Havells runs a mobile Medical Van, equipped with a trained doctor and necessary

medicines in the rural areas of Delhi & NCR for the very poor and needy villagers. We also set

up free medical check-up camps. In the past also, the company has generously contributed to the

society during various national calamities like the Bihar Flood, Tsunami and Kargil National

Relief Fund etc.

The essence of Havells success lies in the expertise of its fine team of professionals, strong

relationships with associates and the ability to adapt quickly and efficiently, with the vision to

always think ahead.

3.1 Vision:

To be a globally recognized corporation that provides best electrical & lighting solutions,

delivered by best-in-class people.

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3.2 Mission:

To achieve our vision through fairness, business ethics, global reach, technological expertise,

building long term relationships with all our associates, customers, partners, and employees

3.3 Values:

Customer Delight: A commitment to surpassing our customer expectation .Leadership by

example. A commitment to set standards in our business and transactions based on mutual trust.

Integrity and Transparency: A commitment to be ethical, sincere and open in our dealings.

Pursuit of Excellence : A commitment to strive relentlessly, to constantly improve ourselves, our

teams, our services and products so as to become the best in class

QUALITY POLICY

We are committed to maximize customer satisfaction by

Dealing in world class electric products

Helping customers in arriving at the right choice

Providing quick product deliveries

Rendering prompt after sales services

Assuring closest customer interaction

Our work life is characterized by ongoing learning and training and is monitored by a

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quality management system aimed at continual improvement in all processes.

Chairman’s Profile

Mr. Qimat Rai Gupta is the Founder Chairman and Managing Director of Havells India

Ltd .The group's phenomenal success over the years has been due to Mr. Qimat Rai Gupta's

mantra of "growth through quality, innovation and market consolidation". His focus on research

and development has enabled the group to develop products for consumers that offer great value

for money. His constant emphasis on promoting energy conservation and environmental

preservation coupled with his philanthropic service to the economically weaker section of the

society is his way of giving back in return to the society that has helped this organization realize

its true potential. Mr. Gupta has held various responsible positions in Trade and Commercial

associations of the Industry from time to time. He has, in his past, served as the President of

Federation of All India Electrical and Trade association.

Mr.Qimat Rai Gupta has been recognized by various sections of the industry for his path

breaking work in this segment. Amongst the acknowledgments bestowed upon him, Mr.Gupta

received the Self-made Entrepreneur Award "Udyog Patra" in 1989, Distinguished

Entrepreneurship Award 2004, from the PHD Chamber of Commerce and Industry in 2004,

Udyog Vibhushan from the Institute of Trade & Industrial Development, Delhi in 2005 and

Udyog Ratna from PHD Chamber of Commerce & Industry for Economic Contribution to

Uttaranchal State in 2005.

CSR Initiatives

While it acquires companies and builds internally, QRG Group never loses sight of its

responsibility as a good corporate citizen. QRG believes that serving people with meager or no

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means is the duty of every well-to-do person. It consistently puts that philosophy into action and

has initiated several projects for social causes. This has greatly increased the number of children

attending school regularly and also alleviates hunger.

Corporate Social Responsibility (CSR) at QRG portrays the deep symbiotic relationship that the

group enjoys with the communities it is engaged with. As a responsible corporate citizen, we try

to contribute for social and environmental causes on a regular basis.

Research and development

Innovation is the hallmark of every vital development at QRG Group. New ideas, inventions

deepen scientific knowledge and give its work force a new impetus towards technical progress.

QRG’s technological strengths and its endeavour towards continuous research & development

have allowed it to fulfil its responsibilities towards its customers. The responsibility of providing

its customers the best products and zero defect services to enable them to be comfortable and

secure in usage of electricity. Havells has recently invested 50 crores in the QRG Centre for

Research and Innovation, set-up at the company's Head Office premises in Noida, U.P.

The objective of this centre is to provide the theoretical & experimental foundations for all

segments of electrical engineering. The centre closely cooperates with the various departments

so as to provide the best and the latest in terms of technology and design.

Quality Control

The essence of quality is closely wrapped in the way we think, plan and work. It finds its true

expression when we extend beyond ourselves to exceed our customer’s expectations. To deliver

products those are safer, faster and simply better.

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Each time, Building customer confidence through teamwork is a top priority to provide a wide

variety of products and services.

Realising and respecting the basic needs of customers to feel more secure, we've committed

ourselves to make our products better, safer and smarter than what he or she is looking for. That's

a passion that began 30 years ago and that's how it continues to be even today. Our customers

rely on us and it is our responsibility to give them the very best. All our products are as per IEC

standards.

QRG has a simple rule on quality. If it doesn't exceed customer expectation, it's not quality

performance.

Certifications:

Corporate Governance

The QRG Group defines corporate governance strategically, which encompasses not only what

we do as a company with our profits, but also how we make them. It goes beyond philanthropy

and compliance and addresses how our company manages its economic, social, and

environmental impacts, as well as its relationships in all key spheres of influence: the workplace,

the marketplace, the supply chain, the community, and the public policy realm.

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We as a company have been in lead in offering a portfolio of eco responsible products and

services that deliver powerful, sustainable, energy-efficient solutions that don't compromise on

capacity and security. Our eco responsibility initiative also focuses on how we run our business,

and includes efforts to develop an alternative-energy strategy, and thus reduce the environmental

impact of our operations. We strive to bring corporate responsibility to every aspect of our

business. We're committed to managing a responsible and diverse supply chain that's consistent

with our high standards for environmental and business practices.

Breaking down the barriers that constrain innovation is a challenge; we have readily embraced

right from the start. Our ability to build communities and promote the exchange of ideas through

assistive technologies, participation programs, and standardization is transforming the way

people experience our products. We offer our customers holistic energy-efficient solutions,

enabling them to not only save money and protect their capital investment, but also lower their

energy usage and protect the environment, thus fulfilling our CSR responsibility of sustenance of

depleting environmental resources.

Corporate Governance and Ethics

An implicit sense of ethical business conduct has been the cornerstone of the QRG way on

corporate governance. On issues ranging from customer care and business excellence to financial

propriety and more, explicit rules and regulations supplement the traditional values on which our

group companies have been shaped. This is what we have endeavoured to do in the 50 years of

our existence. Our values of understanding, trust, integrity and ethics have served us in good

stead.

Corporate governance as practiced by our Group translates into being fair and civic-minded,

fulfilling our duties to the entire spectrum of stakeholders, and, most importantly, making

integrity an article of faith across all our operations. The group's adherence to ethical business

conduct is rooted in the vision of its Founder Mr Qimat Rai Gupta. We started on sound and

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straightforward business principles, considering the interests of our shareholders and welfare of

our employees as foundation of our long term success.

The 'leadership with trust' philosophy that has come to play such a vital role in how our

customers perceive us is all the more remarkable given the climate of unparalleled public distrust

of people in positions of authority today both in business and politics.

Employee Relations

Our people are the key to our success. Their skills, knowledge, ideas and enthusiasm drive our

business. We have high-quality, diverse workforce and employees who fulfil their potential. We

have achieved this by giving them development and advancement opportunities along with

competitive compensation and benefits that appropriately reward performance

We communicate widely with employees to demonstrate how their efforts contribute to our

success and to listen to their concerns. We also encourage them to align with our vision. We are

committed to open communications and a workplace where everyone's voice is heard.

We use several channels to communicate with employees, including an internal web portal and

company website along with communication sessions with the top management of the company.

These sessions provide assessment of employee satisfaction and are inputs for business planning,

management decision-making and company strategy development. They also help employees

implement company policies, meet high standards of conduct and ensure their behavior reflects

company values and policies.

We seek to meet leading health, safety and wellness standards to enhance our business

performance while optimizing employee health. Our facility policies are designed to continually

reduce the risk of occupational injury and illness while promoting employee health and well-

being. We wish to be a company that is known for its leadership in corporate ethics and

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responsibility. A company where employees are proud to work, and customers, partners and

suppliers want to do business with.

Work Culture

QRG Group is continuously applying modern management techniques such as Kaizen to

enable employees to improve their day to day functioning in small steps, one at a time. QRG has

also implemented Japanese version of 5S which stands for a “a place for everything and

everything in its place”. The company has introduced these techniques as it firmly believes the

small changes add up to large results and the only way for a corporation to grow, is to make its

people grow.

The Group is driven by qualified and experienced professionals backed by a work force of

over 8000 employees. All branches and manufacturing facilities are computerized and networked

with each other. An open door policy at all levels encourages employees to be participative,

innovative and creative. Empowering employees helps the organization in harnessing individual

talents to the fullest. Emphasis is laid on building team spirit which helps employees to realize

collective potential.

3.4 BOARD OF DIRECTORS

Mr. Qimat Rai Gupta (Chairman &Managing Director)

Mr. Anil Gupta (Joint Managing Director)

Mr. Surjit Gupta (Director)

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Mr. Rajesh Gupta (Director Finance)

Mr. S.B.Mathur (Director)

Dr. Abid Hussain (Director)

Mr. A.P.Gandhi (Director)

Mr. Nitan Malhan (Director)

Maj.Gen.D.N. Khurana (Director)

Mr.V.K.Chopra (Director)

Company Secretary : Sanjay Johri

Auditors : M/s V.P Bansal & Co. Chartered Accountants

Bankers : Canara Bank, IDBI Bank, State Bank of India

, Corporation bank, Yes Bank

Registers and Transfer Agents: MCS Limited (Havells India Ltd)

Listed on : The National stock Exchnage of India Ltd,

The Bombay Stock Exchange Ltd

Corporate office : QRG Towers, Noida

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3.5 MILESTONES IN QRG GROUP

1958: Commenced trading operations in Delhi

1971: Bought HAVELLS Brand

1976: Set up the first manufacturing plant for Rewireable Switches and Changeover Switches at

Kirti Nagar, Delhi.

1979: Set up a manufacturing plant for HBC Fuses at Badli, Delhi.

1980: Started manufacturing high quality Energy Meters at Tilak Nagar,Delhi.

1987: Started manufacturing MCBs at Badli, Delhi in a Joint Venture with Geyer, Germany

1990: Set up a manufacturing plant at Sahibabad, UP for Changeover switches.

1996: Acquired a manufacturing plant at Alwar, Rajasthan for power cables and wires.

Entered into a Joint Venture with Electrium, UK for manufacturing Dorman Smith MCCBs and

Crabtree Modular Plate Switches.

1997: Acquired Electric Control & Switchboards at NOIDA for manufacturing customized

packaged solutions.

2001: Acquired business of Havells Industries Ltd, MCCB of Crabtree India Limited and merged

ECS Limited in the company to consolidate its area of core competence.

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2002: Standard Electrical Company becomes a 100% Subsidiary of the company

Attained the IEC certification for Industrial switchgear and CSA certification for all

manufacturing plants.

2003: Set up manufacturing plant at Baddi (H.P.) for manufacturing of switch gear.

Set up a manufacturing plant for manufacturing of CFL at existing manufacturing plant in

Faridabad, Haryana.

2004: Set up a manufacturing plant for manufacturing of Ceiling Fans at Noida, UP.

2005: Set up manufacturing plant in Haridwar, for manufacturing fans.

Awarded the KEMA certification by The Dutch Council for Accreditation, making QRG the

only group to attain this certification.

Set up of Research & Development Center in Noida H.O.

2006: Crabtree India merged with Havells India.

Added CFL production unit in Haridwar manufacturing plant.

Expansion at Alwar manufacturing plant for increase of production control.

Expansion at Baddi manufacturing plant and set-up of an Export Oriented unit.

2006: First Company to get the ISI Certification for complete range of CFLs.

Started mid-day meal program at Alwar, Rajasthan caters to 10,000 students from 77 schools.

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2007: Set-up of Capacitor manufacturing plant in Noida, UP with the capacity of 6, 00,000

KVAr per month.

Acquired the lighting business of a Frankfurt based company "Sylvania", a global leader in

lighting business and now the company's turnover crosses US$ 1 Billion.

Havells at that time was best known for its electrical switches, energy meters and miniature

circuit breakers (MCBs), while SLI Sylvania was a renowned yet under-leveraged European

Lamps and fixtures brand. In March 2007, Havells acquired SLI Sylvania of Netherlands for

$300 Million, making it the fourth largest lighting business in the world, worth over a billion

USD. This was, at that time, the biggest overseas takeover by an Indian Electrical equipment

manufacturer.

This takeover helped take the Havells brand to over 20,000 dealers across Latin America,

Europe, Asia and Africa. It instantly catapulted Havells - Sylvania into the billion-dollar league

(in terms of combined turnover), with more than 60% of its revenues being contributed by

international markets.

Havells’ portfolio of prestigious global brands now includes Crabtree, Sylvania, Concord,

Luminance, Linolite & SLI Lighting.

2008:First Indian CFL manufacturers to have adopted ROHS, European norms on Restriction of

Hazardous Substances in CFLs. Set up of Global Corporate office, QRG Towers at Expressway

Noida. Investment of Rs.50 Crores in Global Center for Research and Innovation (CRI)Set up of

fully automatic plant for Havells Lafert Motors at Neemrana

Change in Corporate brand identity.

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2009: Global consolidation of CFL manufacturing plant at Neemrana for domestic and export

purposes.

Launch of India’s first HPF CFL.

Launch of India’s 1st BEE 5 Star Rated Fan.

2010: Inauguration of fan manufacturing unit 2 at Haridwar.

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3.1 PRODUCTS

Building Circuit Protection

Havells India Ltd has emerged as preferred choice for discerning range of individual and

industrial consumers. Havells is the largest manufacturer of MCBs in the country and 30% of the

MCBs sold in UK are Havells manufactured. The products are approved by international quality

bodies such as KEMA,UL, CSA and are as per IEC standards.

Miniature Circuit Breaker (MCB)

Isolator

Changeover Switch

Residual Current Circuit Breaker (RCCB)

RCBO

Distribution Board (DB)

Indicator Light

Automatic change over with current limiter (ACCL)

Industrial Circuit Protection

Havells India Limited is leading manufacturer of low voltage Industrial products for Three

Phase and Single Phase power distribution, switching control and protection requirements.

Panel Board system

Changeover Switch

By-pass Changeover Switch

Load Changeover Switch

Automatic Transfer Switch

Switch Disconnector

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Load Changeover Switch

Automatic Transfer Switch

Switch Disconnector

Control Gear

Switch Disconnector Fuse

Fuse Switch and Switch Fuse

Chamber System

Fuse Holder

Nylon Fuse Base

Fuse Link and Fuse Base

Motors

Havells is manufacturing three phase LV Motors at Neemrara (Rajasthan).The motors are

manufactured with technical collaboration with Lafert who are now the owners of AEG Electric

Motors. The plant has a capacity to manufacture over 300000 nos. energy efficient motors per

year. The complete ranges of motors are manufactured in- house and the plant and machinery has

been procured from AEG Electric Motors.

Foot Mounting

Flange Motor

Foot Cum Flange

Inverter Duty Motors with Forced Cooling

Crane Duty Motors

Brake Motors

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Capacitors

Havells capacitors are designed and manufactured using S3 technology. It encompasses product

with triple shield with differential disconnector. Advanced technologies adopted in the capacitors

offer unmatched safety and outstanding performance under Indian conditions.

Normal Duty

Heavy Duty

Super Heavy Duty

Agriculture Duty

Motor Run Capacitors

CFL

The company feels proud and privileged to share with you one fine innovation of making

Havells CFLs more environment friendly by introducing India’s first Green CFL, manufactured

using Pill Dosing Technology(PDT). Havells is the largest exporter of Lilliput CFL under brand

name Havells Sylvania and has been awarded the best CFL in Sweden & France.

Retrofit

Non Retrofit

Higher Range

Liliput

FPL

Modular Plate Switches

Havells Switches are aesthetically designed modular plate switched that are engineered to

deliver protection and built to last. They are an architect’s invention while keeping an Italian flair

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in his mind. They are one of the best modular switches available in India, both aesthetically and

technically

Havells Modular Switches

Crabtree Modular Switches

Lighting

Havells owns a wide range of energy efficient luminaries for domestic and decorative

applications .Lighting is important and the quality of light affects every walk of modern life. A

better understanding of light will enable you to use it more effectively.

LED Lighting

Consumer Lighting

Commercial Lighting

Down Lighter

Landscape – Bunker Lighting

Industrial Lighting

Area Lighting

Road Lighting

Specialty Lamps

Accessories

Aura Lighting

Fans

Havells entered fan business in mid-2003 and has emerged as one of the fastest growing brand

in the market. From premium fans in exquisite antique finishes to fans specially designed for

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kids to dual colour fans and super speed fans. Havells brought Energy Saver fans (ES50) model

which consumes only 50watts of power. Havells is the first company to get 5 star rating in fans

from BEE.

Ceiling Fans

Table Fans

Wall Mounting Fans

Air Circulator Fans

Ventilating Fans

Pedestal Fans

Cables & Wires

Set up in the year 1996, Havells Cables plant (an ISO: 9000-2000 certified unit) is located in

Alwar , in the state of Rajasthan. All cables and wires are manufactured on most modern laser

controlled automatic machines, using best raw material from primary manufacturers ensuring

perfect quality.

Power Cables – Aluminium

Control Cables – Copper

Copper Flexible Cables

Latest Innovation

A pioneer in the switch industry, Crabtree introduces its latest innovation in wiring solutions, ‘ i-

sense’. An intelligent switching system equipped with an IR remote, i-sense is a combination of

sophisticated design and advanced mechanism. Crabtree does not create, it innovates.

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Organisation Structure of Havells India Ltd

DIRECTOR

OPERATIONS/ PRODUCTIONS

HUMAN RESOURCE FINANCE MARKETING

PRESIDENT

VICE PRESIDENT

PRESIDENT

VICE PRESIDENT

GENERAL MANGER

Asst. GENERAL MANAGER

COMMERCIAL & ADMINISTRATION

HEAD

COMMERCIAL & ADMINISTRATION

HEAD

PRESIDENT

Asst. GENERAL MANGER

BRANCH MANAGER

SALES MANAGER

Asst. SALES MANGER

OFFICERS EXECUTIVE

JOINT MD

CHAIRMAN

GENERAL MANAGER

EXECUTIVES

VICE PRESIDENT

1 2

32

COMMERCIAL ADMINISTRATION

MANUFACTURING HEAD

PURCHASE HEAD

CLERICAL STAFFENGINEERS ENGINEERS

SUPERVISORSCLERICAL STAFF

WORKERS

ACCOUNTS COMMERCIAL C&F

RECEIVABLE CLERICAL STAFF

CLERICAL STAFF

SALES PURCHASE

CREDIT CONTROL DEPARTMENT

RECEIVABLE

1

2

33

FUNCTIONAL DEPARTMENTS

34

4.1 OPERATIONS / PRODUCTION DEPARTMENT

OPERATING HIERARCHY

V.P

GENERAL MANAGER

WORKERS

SUPERVISORS

PURCHASE HEAD

CLERICAL STAFF

COMMERCIAL ADMINISTRATION

HEAD

ENGINEERS ENGINEERS

MANUFACTURING HEAD

CLERICAL STAFF

35

Plant Locations

Haridwar

Baddi

Noida

Faridabad

Bhiwadi

Alwar

Neemrana

Manufacturing Plants

An integral part of the Havells umbrella, Havells switchgear is a leading name in the circuit

protection devices in India. Catering to the needs of discerning customers, the company is the

largest manufacturer of MCBs in the country and amongst the top 10 in the world.

Manufacturing units have complete in- house facilities equipped with state of the art machines

for conducting short circuit tests and mechanical tests. Manufacturing units are ISO 9001-2000

certified & products boast of quality certifications from various international quality bodies such

as UL, CE, KEMA and VDE as per IEC standards for taking protection to a new level.

Havells cables manufacturing plant located in Alwar, Rajasthan is a BASEC approved cable

plant is the largest cable manufacturing unit in India. At Haridwar Havells has set up India’s

largest integrated fan manufacturing facility, with production capacity of four lakh fans per

month. Motor & CFL manufacturing plant at Neemrana has an installed capacity to produce

36

around 20000 units per month making it the largest motor manufacturing unit the country. 50%

of the motor production in this plant is to export to European countries finding applications in

various sectors. Havells is the second largest manufacturer of CFLs in the domestic market and

the first manufacturer in India to make ROHS compliant eco- friendly CFLs.

Production Planning & Scheduling

In Havells production is mainly based on its monthly sales, plans and the budgets. Havells has its

own warehouses in all its plants and also in its branch offices . In Kochi, Havells has a

warehouse at Willington Island.

Research and Development

QRG technological strengths and its endeavour towards continuous research & development

have allowed it to fulfil its responsibilities towards its customers. Havells has its dedicated R&D

facility at its head office at Noida. Havells has invested 50 crores in a new centre for research

and innovation. The responsibility of providing its customers the best products and Zero defect

services to enable them to be comfortable and secure in usage of electricity.

The task of this centre is to provide the theoretical & experimental foundations for all segments

of electrical engineering. The centre closely cooperates with the various departments so as to

provide the best and the latest in terms of technology and design. The Group has also decided to

dedicate 2% of its turn over towards R &D. More than 100 engineers are being employed to

develop and upgrade products.

Products manufactured in each plant

37

Switchgears – Baddi (H.P)

Wire & Cables – Alwar ( Rajasthan)

Industrial Switchgear – Faridabad (Haryana)

Capacitor – Noida (U.P)

Fan – Haridwar

CFL & Motor – Neemrana

38

4.2 HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE HEIRARCHY

V.P

GENERAL MANAGER

Asst. GENERAL MANAGERS

COMMERCIAL & ADMINISTRATION

HEAD

EXECUTIVES

39

The Human Resource department in Havells India Ltd is headed by the V.P – Human

resource. Havells considers its human resource as a valuable tool with emphasis on enhancing

their productive capacity.

Human resource covers everything from wellness, safety and benefits of employees to their

administration, motivation and communication. Nearly 8000 professionals are employed in

Havells India Ltd (HIL) in over 50 countries across the globe. The total employee strength of

HIL, kochi branch is 75.

Functions of Human Resource Department

Recruitment and Selection

Training and Development

Performance Appraisal

Compensation

Grievance Handling

Employee Safety

Recruitment

In Havells India Ltd. recruitment is done through internal and external sources. The internal

source of recruitment is done by the company itself in form of direct recruitment from colleges.

In this case maximum 4 candidates are selected. The external source of recruitment is done

through consultancies

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Selection Process

In case of selection of candidates for top level position, the applicants have to go through

interviews with the Directors. In case the selection is for the employee of middle level

management he or she will be interviewed by the department heads. The candidates have to do a

presentation before the heads after collecting the relevant information about the products of the

company.

The qualification should be an Engineer and MBA from premier business school. While

selection, preferences are given to candidates who have work experience in any of company

which deals with electrical equipment.

If recruitment is for any managerial position more importance is given to their background,

educational qualifications, talent, communication skill, experience etc.

Training and Development

Once the candidates are selected, orientation and induction classes are given to the candidates.

Both On the Job and Off the Job training are given to the employees. Each employee is given

training as per the job requirement and it is given by the respected branch itself

Performance Appraisal

In Havells India Ltd the performance appraisal is being done on an yearly and half yearly basis.

A questionnaire is given to the employees and they have to fill it and return it back. It’s a 3 level

process and the employees are evaluated after completing all these levels.

The employees are judged by their performance. Every department is assigned with a target and

the members in that department have to reach the target within the time prescribed. If they

41

achieve their targets then they are rewarded with the points and finally these points are calculated

to evaluate the performance of the employees and to provide the incentives.

Employees Safety

A top priority of every employer should be to take the time and initiative to help and protect their

employees. If an employee becomes injured at work, the business may suffer.

In Havells India Ltd. all employees are covered by insurance and also the company has its

mediclaim policy for its employees. Employees are provided with:

Sick Leave (15 days)

Earn Leave (15 days)

Compensation and Grievance Handling

In HIL the matters regarding compensation will be decided by the branches itself.

Compensations are provided after the enquiry. Havells repair or replace products at their

discretion, if the products are found to be defective, solely as a result of faulty material and or

workmanship, within 10 years from the date of purchase.

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4.3FINANCE DEPARTMENT

FINANCE HEIRARCHY

COMMERCIAL & ADMINISTRATION

HEAD

ACCOUNTS COMMERCIALCREDIT CONTROL DEPT

C&F

SALES/PURCHASECLERICAL STAFFCLERICAL STAFF

43

Fund management is crucial and important for the company’s growth. The financial

system of the organisation is responsible for the management of funds. A team of senior

management periodically review organisations funds requirement. The company’s

financial management has held it in good stead over the years

The finance department is headed by Administration head . Every branch is a separate

profit centre and maintains separate accounts. There are separate staffs for accounting in

each branch. The department prepares monthly performance report which is sent to head

office for analysing the operational results. There will be a performance review meeting

every month to evaluate branch performance. The monthly report from branches is

consolidated at the head office to know the overall result of the company.

There are 3 levels of internal audit.

The branches are audited by staff from the head office.

There is internal audit by cluster accountants.

There is internal audit by external auditors

The internal audit observations are sent to the branches for seeking the clarification and

for rectification.

Sources of funds

Basically long term funds are required for creating financial assets and short term funds

are needed for working capital purpose.

There are various sources of funds. The primary one of the company is share capital. It

can be in the form of owners’ funds and funds from the public. For floating the company,

the promoters of the company invests funds in share capital and that is termed as

44

promoters funds. For meeting further requirement of funds are collected from the public

and shares are issued in lieu of that.

Havells India has issued 41, 60,000 Equity Shares to Seacrest Investment Ltd at an issue

price of Rs 625/- per share

The next source of fund is borrowed fund. This can be by way of working capital

borrowing from banks. Deutsche Bank has provide various credit facilities to the

company for an amount equivalent to Euro 14 million.

Significant accounting policies of Havells India Ltd.

The financial statements have been prepared under the historical cost convention as a

going concern accrual basis in accordance with the generally accepted accounting

principles and as per the companies Act 1956

Fixed assets are accounted at cost of acquisition inclusive of inward freight duties, taxes,

and incidentals expenses related to acquisition and installation of the concerned assets.

Fixed assets are further adjusted by the amount of CENVAT credit availed.

Depreciation has been provided on Straight line method at the rate prescribed under

schedule X1V in the companies’ act 1956.

Inventories are valued on the basis of moving weighted average method.

Raw materials stores, spare parts and packaging materials are valued at lower of cost or

net realizable value.

45

Transaction in foreign currency is recorded at the exchange rate prevailing at the date of

transaction

The revenue expenditure on Research and Development is charged as an expense in the

year in which it is occurred.

Current tax is determined as the amount of tax payable in respect of taxable income for

the period.

The main reports generated from the finance department are profit and loss account and balance

sheet. They are taken monthly and annually

Havells India Ltd. installed SAP system software, which is designed to support their complete

business management. SAP is used in systems to handle invoice payment, production resource

management and financial account control. The main advantage of using this software is that an

employee in one branch can access the details of other branches.SAP works in an ON / OFF

mode. Customers can place their orders in Customer Portal.

In HIL, Kochi branch SAP software is used for billing, cheque punching, entry of cheque

against bill, issue of credit/debit notes.

Pay back period

Havells generally follows certain rules in pay back period. If a dealer is new, then he/she has to

make an advance payment. But in case of existing dealers the pay back period is 45 days. If the

customer pays the amount within 15 days then the company will give 3% CD. If it is within 30

days then the CD rate is 2%. And the payment is made after 45 days then no CD is provided

46

4.4 SALES / MARKETING DEPARTMENT

MARKETING HEIRARCHY

V.P

Asst. GENERAL MANAGER

BRANCH MANAGER

SALES MANAGER

EXECUTIVES

&

OFFICERS

Asst. SALES MANAGER

47

For every sales oriented institution sales department has its own significant role to play. As

a sales oriented company this department is very important department in Havells India Ltd.

All other departments are directly or indirectly depend upon the entire sales team.

The sales and marketing functions of Havells India Ltd are under the control of General

Manager (Sales and Marketing).

SALES OPERATIONS

The sales operation consists of the processes like marketing, procurement and delivery. For

marketing of a product a through knowledge of the market should be known. For this

purpose a market analysis should be done. Optimized method of procurement and delivery

helps in customer satisfaction, which in turn helps in their retention. A satisfied customer is

an asset to the organization, who will pass through a process cycle of recommendation,

revisit and repurchase.

Havells India Ltd. has pioneered itself in the manufacturing and exporting of electrical products

over the last 5 decades. The company has already established their global presence across 5

continents and 50 countries with 91 branches and 8000 employees.

Deals in:

Domestic products

Industrial products

Fans

Wires

UG cables

Luminaries

48

CFL

Crabtree switches

Havells modular plate switches

Motors

Capacitors

New launches 2010 –

Geysers

MARKETING OPERATIONS

The company does not sell their products directly to customers, but through dealers. Major

marketing activities are concentrated towards big clients such as institutions; hospitals etc, so

that sales can be made in bulk. A normal customer can purchase the company’s product from

dealers of the products. A marketing team is formed within the company within each branch so

that specific targets are made and is seen that maximum sales is accomplished. Every marketing

executive is assigned with monthly targets, which is the amount of sales that he must acquire

within a period. For that the executives contact the dealers and new clients. The Marketing Team

is headed by the Marketing/Sales manager of each branch. The manager sets out the target sales

that should be accomplished monthly in accordance with guidelines from the head-office.

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Product Mix

Industrial products

Titania Air circuit Breaker

Loadline moulded case circuit breaker

Loadline digital moulded case circuit breaker

Load bank panel board system

Powerline contractor

Domestic products

Eurobreaker MCB

Eurobreaker Mini MCB & isolator

Eurobreaker RCBO

Eurobreaker Isolator

Eurobreaker changeover switch

Fans

Ceiling fans

Table fans

Wall mounting fans

Exhaust fans

Pedestal fan

Lighting

Commercial lighting

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Downlighter

Consumer lighting

Area lighting

Road lighting

Industrial lighting

Land scape lighting

Lamps

Crabtree switches

Athena (dust free switches)

Ovation (designs for classic look)

Platinum (ideas for interior designers)

Sapphire (a boon for home owners)

Emerald (inspiration for architects)

SERENE (for silent moments)

Surrounds (elegance for every moment)

Stripes (classic lines, modern styles)

CASA (under floor box)

Havells modular plate switches

CORAL

One module cover plate with one way indicator switch

Three module cover plate with 6A3 pin socket &one way switch

Four module cover plate with universal socket & one way switches

PEARLZ

One module cover plate with one way switch

Three module cover plate with universal socket & one way switches

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Two module cover plate with telephone socket & TV socket

Distribution Boards (DBs)

Designer DBs (suitable for surface & flush mounting)

Single pole & neutral(suitable for single phase supply)

Three pole & neutral(suitable for single phase & three phase)

Special phase(suitable for three phase incoming supply)

MCB enclosure(plug & socket provide protection to A/C)

Branches

North

o Dehradun

o Delhi

o Haryana

o Noida

o Ludhiana

o Jammu

o Jaipur

o Kanpur

o Chandigarh

East

52

o Bhubaneshwar

o Guwahati

o Kolkata

o Siliguri

o Jamshedpur

o Patna

West

o Ahmedabad

o Indore

o Rajkot

o Mumbai

o Nagpur

o Pune

o Rajpur

o Surat

South

o Banglore

o Chennai

o Coimbatore

o Hyderabad

o Kochi

o Vishakapatnam

Clients

53

Electricians

House owners

Builders

Architects

Institutions (schools, colleges, hospitals)

Projects (hotels, offices, complexes)

Contractors

Electrical consultants

Interior designers

Havells has its own clients not only in terms of domestic market but also in international markets

such as Singapore, Malaysia, Iran, Bangladesh, Russia, Australia, Greece, Srilanka.

Competitors

Legrand

ABB

Finolex

Philips

Wipro

Ba ja j

Kha i t an

Crompton g r eaves

Se imens

MK

54

Pricing strategy

Pricing is an important strategic issue because it is related to product positioning. Furthermore,

pricing affects other marketing mix elements such as product features, channel decisions and

promotion.

The pricing strategy used in Havells India Ltd. is Product- based pricing. HIL sets price based

upon the quality of the product, purely not on the basis of competitive products. Market

conditions are also taken into consideration while setting the price for the product.

Promotional strategy

The company has been promoting its brand through sponsorship of cricket events like

Champions Trophy, Champions League, IPL Season 2, IPL Season1, T20 World Cup. The

company has also taken the initiative to reach directly to the consumers through "Havells

Galaxy" – a one stop shop for all electrical and lighting needs. This is yet another initiative

by Havells targeted at end-users, architects and Consultants, to showcase Havells products.

The Galaxy symbolizes Havells innovative leadership position in the Electrical and Power

Distribution equipment market. It serves to provide an array of electrical appliances and

consumer products, all created to adhere to the demands of modern living. The products they

offer combine the attributes of elegance, technological advancement and convenience all in

one. I n o rde r t o p romote t he p roduc t Have l l s I nd i a L td . conduc t s emina r s a t

co rpo ra t e l eve l , adve r t i s emen t s i n t e l ev i s i ons , magaz ine s , I n - shop

d i sp l ays , dea l e r s mee t i ng , P roduc t c a t a logue .

Key Clients

55

Bharti Airtel Limited

Airport Authority of India

TATA Consultancy Services

DLF Limited

Eros Group

ICICI Prudential

Idea

Infosys

Reliance Industries Limited

Ashok Leyland Ltd.

Bharat Aluminium Co.

Hindustan Lever Ltd

Indian Oil Corporation

NTPC

Vizag Steel Plant

56

5.1 HAVELLS INDIA PERFORMANCE

During financial year 2009 Havells India Ltd has shown a growth of 7% in Net Revenue from

2,056 crores to 2,198 crores . Profit After Tax was up marginally from Rs. 144 crores in FY08

to Rs. 145 crores in FY09.

Segment Wise Revenue of the Company

Cable& Wire 45%Lighting & Fixtures 13%Electrical Consumer Durables 13%Switchgear 28%Others 1%

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Communication process at Havells India Ltd

Communication network of the company is same as the organizational chart. The flow of

information is from top level to the bottom level. In German Motors the management follows

the traditional hierarchal communication pattern, wherein if a worker needs to communicate to

the manager, he has to follow his hierarchal path. But at the same time the manager has opened

his doors whereby anyone can walk in to communicate with him

Downward Communication

Downward communication in Havells India Ltd moves from the top to the bottom authority.

Downward channels are used for passing on managerial decisions, policies and programmes to

subordinates down the line of their understanding and implication.

Top management communicate with the lower levels through Circulars, meetings, seminars,

monthly conferences, mails.etc

Upward Communication

Upward communication in the company is when it flows from the subordinates to top

management. Upward communication is used by subordinates for transmitting information,

ideas, views and request to their superiors on relating to their jobs, responsibilities etc.

Workers communicate with superiors through regular mails, telephones, meetings etc

Horizontal Communication

Horizontal communication at HIL is when the workers of the same position communicate each

other. It is mainly done through telephone, through mails and direct interaction.

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SWOT Analysis

STRENGTHS

Expertise in the field since last four decades

Technology leadership

Excellent Brand Perception

Wide Dealer Network

Excellent after sales service

Value for money

Skilled Motivated Manpower

Wide product range

WEAKNESS

Huge amount spent for promotional activities

OPPURTUNITIES

Ever increasing demand for electrical equipment products due to boom in real estate

sector

The scope for opportunities is wide ranging in that a company will try to make better use

of finance, marketing and other resource based aspects of the business work more

smoothly and efficiently.

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THREATS

Highly competitive industry

Large number of reputed players in the same field

High cost of raw material

Threats include where a company has a successful product on the market or

Product concept, then the threats would be that someone else would try to copy that

concept and market it at a similar or at a lower cost.

A slowdown of the World Economy coupled with Indian economy is quite possible for

the short term due to current global developments. Due to the strong linkage of the

manufacturing industry to the economy, such an event would adversely impact growth in

the short term for the company

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FINDINGS AND RECOMMENDATIONS

Findings

1. There is good employee relationship in the company

2. Committed employees

3. Good working environment

4. High quality service

5. Presence of a good and fast settlement system

6. No political interference in the functioning of the organisation.

7. Existence of a good management employee relationship

8. Havells has a good reputation and goodwill

Recommendations

1. Effective measures should be taken to maintain good employee relationship

2. Employees should be encouraged frequently by giving benefits.

3. Enhance promotional activities

4. Conduct seminars and other programs within the organisation.

5. Training program must be conducted for newly appointed employees.

6. Utilise modern technologies of organisational activities

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Conclusion

Havells India Ltd. is the pioneers and the most reputed and trusted name in electrical distribution

products. The organization study at Havells India Ltd had helped to know the various aspects in

the organisation. The study helped to get practical knowledge on various aspects of current

industrial scenario.

The organisation study at Havells India Ltd. (HIL) has helped to know the various aspects in the

organisation. The study helped to know the practical knowledge in the corporate. This study was

very valuable and informative for me as a management student. In all sense the study in this

organisation was interesting and educative

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BIBLIOGRAPHY

1. Websites

www.have l l s . com

www.QRG Group.com

www.allelectricalproducts.com/indian-electrical-industry.html

2. Company Documents

Annual report

Department files