Organisation study on KAR Mobiles

Download Organisation study on KAR Mobiles

Post on 04-Apr-2015

466 views

Category:

Documents

4 download

Embed Size (px)

TRANSCRIPT

ORGANISATION STUDY ON KAR MOBILES LIMITEDORGANIZATION STUDY ON Kar mobiles limited

1

Submitted in Partial fulfillment of the requirement for the award of the Degree of Master of Business Administration SUBMITTED BY, Name Reg. No Specialization Partner Institution : Anjali. Gangadharan : 09P35J0119 : HUMAN RESOURCES : ACHARYA LEADERSHIP AND RESEARCH INSTITUTE

Under the guidance of INTERNAL GUIDE Prof. ANIL KUMAR EXTERNAL GUIDE Mr. V. MURALIDHAR

Centre for Participatory and Online Programs Bharathiar University Coimbatore 641 046

(Month & Year)

: DECEMBER 2010

ORGANISATION STUDY ON KAR MOBILES LIMITED

2

DECLARATIONI hereby declare that this project work titled ORGANIZATION STUDY is a record of Original work done by me under the guidance of Prof. ANIL KUMAR and that this project work has not formed the basis for the award of any Degree / Diploma / Associate ship / Fellowship or similar title to any candidate of any University.

Signature of the candidate Name : Anjali. Gangadharan

Reg No. : O9P35J0119 Course with Specialization: MBA, (Human resource)

Date :

Signature of the Guide

ACKNOWLEDGEMENT

ORGANISATION STUDY ON KAR MOBILES LIMITED

3

I would like to express my gratitude to Acharya Bangalore B-school and my teachers and my guide Prof. ANIL KUMAR also thankful to my external guide Mr. .V. MURALIDHAR, of KAR MOBILES LIMITED (Bangalore) whose direction, assistance, and guidance have been invaluable for the project. I wish to thank staff for their constant support.

I particularly like to extend my thanks to my seniors and colleges and friends who supported me during the project.

Anjali. Gangadharan

ORGANISATION STUDY ON KAR MOBILES LIMITED

4

The industry is transforming and the boost in demand will see the emergence of several new players in the industry. The vast market for auto components, and the diverse products and

ORGANISATION STUDY ON KAR MOBILES LIMITED

5

technology involved ensures a place and a role for many. At the same time, the entry of several global auto mobiles manufacturers. Will bring in more regulation into the industry and see pruning of the spurious market. Among the smaller players in the unorganized segment, this implies moving away from being standalone companies, to entering into either contract manufacturing or being ancillary units. The newly defined rules are specialization, development and delivery that hold the key to success in the auto component industry.

According to the investment commission of India, India is among the most competitive manufacturers of auto components in the world. India is also becoming a global hub for research and development (R&D) .Companies like Daimler Chrysler, Bosch, Suzuki and Johnson controls have set up development centers in India.

Auto manufacturers including GM, Ford, Toyota, etc. as well as auto component manufacturers have set up international purchasing offices (IPOs) in India to source for their global operations.

ORGANISATION STUDY ON KAR MOBILES LIMITED

6

INDEX

ORGANISATION STUDY ON KAR MOBILES LIMITED

7

S.NO

TOPICS

PAGES NO

1 2 3 4 5 6 7 8

INDUSTRY PROFILE INDUSTRY GROWTH FOREIGN AQUISITION PROSPECTS COMPANY PROFILE HISTORY NATURE OF BUSINESS OBJECTIVES OF KAR MOBILES VISION MISSION ORGANIZATION STRUCTURE DEPARTMENT DETAILS SWOT ANALYSIS FINDINGS SUGGESTIONS BIBLEOGRAPHY

8 10 13 14 16 17 19 20

9 10 11

21 21 22

12 13 14 15

25 67 72 74 76

ORGANISATION STUDY ON KAR MOBILES LIMITED

8

ORGANISATION STUDY ON KAR MOBILES LIMITED

9

Indian auto component industry is estimated at US $ 9 billion in 2006. Industry has the resources to manufacture the entire range of auto products required for vehicle manufacturing, approximately 20000 components; here the entry of global manufacturers into India during the 1990s enabled induction of new technologies new products improved quality and better efficiencies in operations which effectively acted as a catalyst to the local development of the component industry. Estimates by the department of heavy industries, government of there are over 400 large firms who are part of the organized sector and cater largely to original equipment manufacturers (OEM). 10000 firms exist in unorganized sector that operates in a tier format. Firms in this segment operate in low technology products and cater to tier 1 and tier 2 suppliers and also serve the replacement market. Around 4 % of the company operating in the auto component segment cater to 80 % of the demand emanating from (OEMs). This auto component industry manufacturers components fall into six broad product categories:

1.

Engine parts = (piston ,piston rings , engine valves , fuel pumps ,carburetors and bimetal bearings )

2. Electrical parts =(starter motors ,generators and spark plugs) 3. Transmission & steering = (gears, steering gears, & systems, wheels, clutch plate & disc). 4. Suspension & braking = (leaf springs, shock absorbers, brake assembly & facing). 5. Equipments = (head light ,& dashboard instruments)6. Others = (sheet metal parts, pressure disc castings).

ORGANISATION STUDY ON KAR MOBILES LIMITED

10

Auto components product segments

Engine parts 23%

Others 36%

Electrical parts 7%

Steering parts 23%

Equipments 8 % Suspension and braking parts 11%

RevolutionsAutomobile revolution began with the appearance of automobile manufacturing, about the year 1890. By that time Europeans and North Americans possessed the technology required to produce and successfully operate a mechanically powered road vehicles. A taste & a demand for such a device could than be created building not only on two generations of public acceptance of railways , but also on the widespread interest in a more recent mechanical device ,the bicycle .

ORGANISATION STUDY ON KAR MOBILES LIMITED

11

The opening stages of automobiles production and marketing required nothing new in the form of business organization, factory operation, or selling methods. Nor did it require large sums of capital of large numbers of workers .yet, ultimately the growth of this industry would bring amazing changes in all these areas. Revolutions usually do not announce themselves at their first manifestations.

Industry GrowthThe production of auto ancillaries was estimated at us $10 billion in 2005-2006 and as been growing at a robust 20 % per annum, since 2000. Exports of auto components have been strong growing at 24% per annum since 2000.This growth in exports is sustained for another 5 yrs will see Indias auto components exports will touch us $ 5 billion by 2011 from us $ 2billion at present.

Till the 1990s the auto component industry was solely dependent on the domestic automobiles industry to drive the demand for ancillary products. This composition of the market how ever is undergoing radical changes with global outsourcing gaining momentum. In recent times, exports has emerged as a significant driver of growth and the demand emanating from global OEMs and tier 1 manufacturers has opened now opportunities for the auto component industry in India .At the same time a bright out look for the domestic automobiles industry also offers significant growth potential given the fast rising Income levels with a rapidly growing middle and high income consumers.

Investments

Since 2000 the auto component industry was recorded an investment level of Rs 18 billion and attracted us $ 530 million in terms of foreign direct investment.

ORGANISATION STUDY ON KAR MOBILES LIMITED

12

Investments in this sector have been growing at 14 % per yrs. In 2005- 06, investments touched us $ 4.4 billion, and are expected to grow significantly in future. The investment commission set a target of attracting foreign investment worth us $ 5 billion for the next 5 yrs to increase Indias share in the global auto component market from the amount of FDI currently coming into the industry. The changing perception of global auto makers is however fast altering the scenario. With less than 1 % share in the global market, India has tremendous potential to emerge as a supply base. This changing business scenarios is leading to an inevitable out consolidation with in the industry .The take over of Kar mobiles by RANE Engine and of Gero auto by Uma precision is few instances.

How ever, such mergers & take overs will be few and far in between in the auto components industry unlike the churn out anticipated in other emerging industries the principle factor being the vastness of the market and the range of products that need to be delivered .Rather than domestic consolidation, the general trend at present is for the large auto component manufacturers to establish a global presence. Top auto components manufacturers have already set up base in the global markets, especially in Europe. Overall there have already been 16 acquisitions; with 6 made in 2005.The industry is the third highest, among the Indian industry after IT and Pharma, in acquiring oversea assets. These acquisitions have largely been in Europe and the USA. This trend has been possible as the auto ancillary industries in these countries have been collapsing thus making it affordable to acquire these companies. Nevertheless, this will provide a base for Indian companies to access the European &American markets. Indian auto component companies are also setting up bases in other emerging economies, who are potential competitors, for instance, Sundaram fasteners green field facility in Zhejiang and Bharat f