type of sampling

8/23/2019 Type of Sampling

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TYPE OF SAMPLING

Simple random sampling technique was used.

SAMPLE SIZE

While preparing the project report I will take the response to certain questionnaire from IL

employees. The sample of 15 employees has selected randomly.


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JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC

STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED

RATIONALE BEHIND THE STUDY

Now a days the impact of globalisation is very vast and it becomes the need of an

hour. It is not possible for a company to survive alone. Globalisation not only provides a

platform for fair competition but open gateway for more and more Research & Development.

In the whole process what ultimately gained are better products at competitive prices. If we

get better products then we can provide our customers better equipments and can satisfy to

them.

This is not only provides scope of betterment and sophistication of techniques i.e.

method of production but broadens the horizon of business.

Marketing is an important aspect of the business. Marketing means to identify

customer needs and then providing them. It is very difficult to move global. Financial success

often depends on marketing ability. Finance operations. Accounting and other business

functions will not really matter if there is not sufficient demand for products and services so

the company can make a profit.

To sell the product in a global market is not an easy task. Marketing managers must

make major decisions such as what features to design into a new product, what prices to offer

customers, where to sell products and how much to spend on advertising.

For this a complete understanding related to marketing and stores is must.


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3

COMPANY PROFILE

* Vision of the company

* Objectives of the company

* History of the Company

* Organisation Structure

* Board of Directors of I.L.

* Kota Unit

* The Organisation

* Products of Instrumentation Ltd.

* Customers of Instrumentation Ltd.

* Present Status of Instrumentation Ltd.

* .Future of I.L.

* Achievements & Awards.


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Corporate Vision

To become a leading world class Engineering Organization focused on customer

satisfaction in the field of Control Instrumentation; Automation for Core Sector viz. Power,

Steel, Refineries & other Process Industries; Telecommunication; Railway Signalling,Industrial UPS, Knowledge based systems such as IT & Software and Services; Electrical

Transmission & Distribution; GIS/GPS,SCADA system.

Objective of Instrumentation Ltd.

1. Productivity :

* To ensure optimum utilization of all the facilities in Manufacturing Division.

* To ensure optimum utilization of facilities created for manufacturing of

Railway Signalling System.

* To realize greater operational efficiency, improved productivity and higher

capacity utilization and generation of internal resources.

2. Business :

* To undertake financial restructuring of the company to be more competitive.

* To endeavor to achieve reasonable return on investments.

* To further increasing its contribution in the companys value of production

and profitability.

* To maintain 10% annual growth in the turnover of the company excluding the

bought out items.

* To revaluate the corporate plan for higher growth and dividend objective.

3. Customers :* To achieve and maintain high degree of customer satisfaction with timely

delivery of quality, products and services at competitive rates and also

establish customer feedback system.

4. Employees :

* To upgrade the quality of human resources and strengthen the technical and

managerial competence for growth.

* To achieve higher levels of safety standards.* To restructure the manpower by rationalization.


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PROFILE OF

INSTRUMENTATION LIMITED

Instrumentation limited is a Govt. of India Enterprise set up in 1964 with the prime

objective of attaining self-reliance in the field of Control & Automation for the

process industry. Today IL is manufacturing & supplying state of the art control

equipments on turnkey basis to the various sectors of the industry viz. Power, steel,

fertilizer, chemical and petrochemical.

Instrumentation limited is headquartered at Kota along with its Commercial Divisionspecialization in power and steel sectors. The regional & field offices, at different

sites look after the installation work. The marketing division is based in New Delhi

with branch offices in Calcutta, Chennai & Mumbai. IL has its plants at Kota &

Jaipur.

With over 35 years of experience & a dedicated workforce, IL has mastered all

complexities of control systems requirements & can lead right through any industrial

project from system designing, to detailed engineering , manufacturing , installation

,final commissioning to after sales service & customer training. IL is nowdiversifying in to the field of Telecommunication, Power Electronics & Railway

signaling systems.


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HISTORY OF THE COMPANY

Most of the instruments required for Process Control Industries alongwith main

equipments were being imported in early 1960. Process Control Industries were growing at

rapid rate, so we import the Instruments.

In order to minimize the import to Process Control Instrument and to achieve self

reliance in this vital field a decision was taken by the Government of India to set up a Factory

(Industry) in the Public Sector to manufacture Process Control Instruments and Allied Items.

Instrumentation Limited is a Govt. of India Enterprise set up in 1964 with the prime

objective of attaining self reliance in the field of control and automation in the process

industry. Today IL is manufacturing and supplying state-of-the-art control equipment on

turnkey basis to various sectors of the industry viz. Power, Steel, Fertilizer, Chemical,

Petrochemical, Refineries, Pharmaceutical, Cement, Paper, Textile, Space and Oil & Gas

Tele-Com, Flownozal valve Uninterrupted Power Supply (UPS) Mobile Towers etc.

Kota Plant was setup in technical and financial collaboration with USSR and it

commended commercial production in the year 1968. As a part of its continued efforts for

modernization and standards, the company has entered into technical know-how and

assistance agreements within two internationally renowned manufacturers based at Britain

and West Germany of Process Control Instruments.

The second production unit of the company was established in Palakkad for manufacturing of

Control Valves and allied items for which technology is provided by a leading JapaneseCompany, viz. Yamatake Honeywell Co. Ltd. the unit commended production in December

1975 and has significantly contributed to overall growth of the companys financial results

with its well established mechanical shops and other infrastructure.


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KOTA UNIT

This plant is located at Kota-Jhalawar Road Kota-5 (Raj.). It is the birth place of

Instrumentation Ltd.

This production unit was setup in collaboration with M/s Premmash Export USSR.

This plant commenced its sophisticated process control instruments in various ranges.

The Kota plant cater the need of industrial process control instruments required by

various Thermal Power Station, Electricity Boards, Steel and Chemical Plants, Chemicals

industries, Paper industries and other Heavy Engineering units.

Just from the first year of production the company has been successfully supplying

instrumentation and control equipments and has achieved all time high record of production,

turn over in profit. It has continued to play its vital role in speedy development of process

industries through out the countries in such a brief period and the company has achieved a

leading, reputable and important position not only in India but in abroad also.

Today, the Corporate R&D center of the company is an independent wing like other

units of the company with its own proto-type development shop, various laboratories and

other amenties, manned by well qualified technical personnel and headed by Executive

Director.

I.L. has its registered and corporate office at Kota (Raj.). Manufacturing facilities

accredited with ISO 9000 series. Quality System Certification are located at Kota & Palakkad

(Kerala).


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PERFORMANCE AT A GLANCE

In the year 2005-06 through sustained efforts of the company for performance

enhancement and with the support of Govt. of India and all other concerned stakeholders, the

company has been successful in achieving a higher turnover of Rs. 21,998/- lacs as compared

to previous years turnover ofRs. 17,585/- lacs. The company has also been successful in

recording operating profit of Rs. 1,304.92 lacs for the year 2005-06 as compared to previous

year operating profit of Rs. 1,091.74 lacs. The net loss for the year 2005-06 was Rs. 2,450.84

lacs as compared to previous year loss of Rs. 1,697.81 lacs

Instrumentation Limited has been able to maintain its operations despite various

constraints, mainly the shortage of working capital. In recent years despite challenges the

company has been implementing its BIFR approved sanctioned scheme and displayed

resilience to adopt new economic scenario. Since the implementation of this scheme from 1st

April 1999 the business has been upbeat. In fact, the current year i.e. 2001-02 has been better

than previous year for the corresponding period. The company has been able to address the

main constraints of high wage bill due to surplus manpower and high interest cost. Both these

factors have been brought down by way of rationalization of manpower and financial

restructuring and repayments to creditors. The company has been receiving excellent support

from the owner, i.e. Government of India. Further, State Government of Rajasthan has also

extended support for raising funds through sale of surplus land at Kota complex. With all

these achievements that companys business is growing. In the power sector also the

company has secured and executed some prestigious orders like Santhaldih project of

WBSEB, Obra 6 & 7 project of UPRVUN during the year 2000-01 I.L. is finalizing a major

order for Roper Power Station of Punjab State Electricity Board. The company is enjoyingtechnical & business support from business partners. The companys capability could also be

gauged by other business segments, as it has performed well in supply of state-of-art

equipments by way of MAX-XL Telephone Exchanges supplied at over 250 locations

throughout the country. The diversified field of Railway signaling and Defence Electronics is

also yielding good response. The company continues to maintain cutting edge of competition

through adherence to international quality standards, high standards of customer service in its

business strong hold of control Instrumentation and Telecommunications.


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PRESENT STATUS OF INSTRUMENTATION LTD.

IL has incurred additional cash losses because of delay in implementing of sanctioned

revival scheme. Due to acute shortage of working capital the company has suffered badly in

terms of business. The company has, therefore, submitted a proposal for consideration to the

Administrative Ministry. The Administrative Ministry i.e. Department of Heavy Industry,

Ministry of HI & PE, has been kind enough to consider the proposal for (a) Government

Guarantees for rising funds from Banks/Financial Institutions for reimbursement of additional

cash losses (b) reservation of order by 1 for 10% of Annual requirement of BSNL for

MAXXL Telephone Exchange with 50% advance for a period of 3 yours (c) steps for JVformation of holding unit. (d) and for VRS. The committee of Ministers has recommended

the proposal for consideration of cabinet. The Ministers has recommended the proposal for

consideration of cabinet. The cabinet has also approved this proposal recommended by the

committee of Ministers in the third week of September 2001.

The cabinet approval of the proposal will enable the company to utilize its

manufacturing capacity infrastructure, manpower and get over the working capital shortage.

Rationalization of manpower will be ensured by funds for VRS. Reimbursement of additional

cash losses will enable the company in bridging the working capital deficit. JV formation is

expected to provide technology, finance and marketing input to the company for its long

terms viability.


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Future of I.L.

The company is posed for better growth in the coming years in view of the

following

* The sanctioned revival envisages liquidation of substantional portion of the liabilities

out of the proceeds as loans from sale of surplus land available with the company at

Kota. The government of Rajasthan through Urban Improvement Trust, Kota has

invited offers and principal approval has been given in the favour of the highest

bidder. The company has achieved the target for manpower rationalization as per

sanctioned scheme. However process of rights sizing of manpower strength in

commensurate with the business potential will be continued.

* The sanctioned revival scheme is in its third year of implementation. Joint venture

formation of Palakkad unit is at an advance stage. Qualified interested parties have

completed due diligence activity. Integration of Jaipur unit with Kota unit is also

being taken up.

* The company has also undertaken various measures for further improvement in its

working such as reduction in cost, reduction in salary and wages through right sizing

of manpower, closures of unviable sites, sale of land and building etc. at Sitapur,

Jaipur integration of Jaipur unit with Kota and improvement in working capital

management. The company is also pursuing actively the plans for introduction of new

products to ensure optimum utilization of existing facilities.

* With the implementation of revival package and restructuring business of the

company with assured from BSNL for next few years the company is hopeful of turn

around.

* With recent approval by cabinet for reservation of Telecom order from BSNL will

help the company to improve its net worth and financial position.


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ACHIEVEMENTS & AWARDS

Achievements

An order of over Rs. 300 lacs has been received from Corporation Bank or supply of

UPS products.

Our regular customers have continued their faith and confidence of IL products by

placing orders worth Rs. 436 lacs and Rs. 148 lacs respectively for control values and other

flow elements.

At Palakkad works cryogenic valve testing facility established for testing valves up to6 inches size. Valves can be tested up to minus 196 degree centigrades. Also the

developments of new valve bodies with higher CV valve were tested.

The largest rotary electronic control valve 16" made in the country with in house

design capability. This value was supplied to Formosa Plastics, Taiwan.

All the manufacturing facilities at Kota, and Palakkad revalidated for ISO 9000.


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Important Milestones Achieved

1964 - Established with Registered Office at Kota

1965 - C&I Production Commenced

1975 - Control Value Production Commenced

1982 - Special Temp. Sensor (RTD) for Nuclear Plant

1988 - Major Diversification in Telecommunication

1998 - Diversification in Defence Products

2001 - Production of firing device (Defence order)

2002 - Production of large size Telephone Exchanges

2003 - Production of special solenoid values for nuclear application (Defence

order)


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ORGANISATION STRUCTURE

Board of Director

Chairman-cum-Managing Director

Company

Secretary

Procurement Manufacturing

Facilities

Business Acquisition

Group

Marketing

Unit

Customer

Services

CP & ITProjects DDC

Unit

Regional & Site

Offices

Exports

Division

Branch

Offices

Kota Unit Palakkad Unit

Subsidiary

UnitCorporateF&A

REILCorporate

P&A

Corporate

R&D


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Chart No. 2

Board of Directors of I.L.

Sl.No Name and address of Director Telephone NoEmail Address

1. Shri PM BhardwajDirector (Production)andChairman-cum-Managing Director(Addl. Charge)Instrumentation Limited, Kota

0744 - 24269140744 - 24244760744 2426806

[email protected]@ilkota.in

2. Shri SS DubeyChief Controller of AccountsDepartment of Heavy IndustryMinistry of Heavy Industry & PublicEnterprisesUdyog BhavanNew Delhi.

011- 23061622 -

3. Shri S Jainendra KumarDirectorDepartment of Heavy IndustryMinistry of Heavy Industry & PublicEnterprisesUdyog BhavanNew Delhi.

011- 23061563 -

4. Shri Mohan LallSpecial Director (BIFR)

C-1002, Juhu Abhishek Apartment

Juhu Versova Link RoadAndheri(W)Mumbai-400 053

5. Shri S.K. GuptaDirector (Finance)Instrumentation Limited, Kota

0744 2427278 [email protected]

6. Commodore Harphool Singh, VSMDirector (Commercial)Instrumentation Limited, Kota

0744 2426376 [email protected]

F
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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PRODUCT RANGE OF IL

Instrumentation Limited is an ISO 9002 certified multi-unit, multi-product Company that are

manufacturing those product which are used by any Industry so there are Industry based

marketing. The main products which are manufacture by Instrumentation Ltd. Are given as

under.

1.FAULT TOLERENT CONTROL SYSTEMFICS

Fault tolerant control system, being manufactured in technical collaboration with AUGUSTSYSTEM, UK is an ultra reliable control designed for use in critical industrial, control, safely

shutdown and monitoring application.

It can be used as a standalone control system or be part of a distributed process control

system

CONTROL SYSTEM-FICS

2.MICRO PROCESSOR BASED DISTRIBUTED DIGITALCONTROL SYSTEM STARDIC

The STARDIC microprocessor based Distributed Digital Control System manufacture in

collaboration with M/s Toshiba Corporation; Japan caters to need of flexible and

comprehensive process plant instrumentation and controls to obtain energy conservation,

improved productivity and quality, increase yield and safe innovative operational techniques.

The STARDIC Distribution System is flexible and can be utilized in small, medium or largescale application. The system architecture dually fits process automation .Where a plant

expands physically and functionally involving several phases while still maintaining single

loop integrity.

ECS-1200 DISTRIBUTED CONTROL SYSTEM

This Evolutionary control system is the latest state of the art control system from HF Control

Corporation (HFC), USA. HFC, a wholly owned subsidiary of Doosan Heavy Industries &

Construction (DHICO) is designer, manufacturer assembler, integrator and distributor of

control system & Instrumentation, HFC provides ECS-1200 control system for power plants

and industrial plants. Capabilities include Combustion Controls, Burner/Boiler Management,and Balance of Plant (BOP) control, for combined cycle, Electrical generation, Cement,


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Nuclear, Petrochemical, and Power etc.

3.ELECTRONIC TRANSMITTERS

ELECTRONIC CELL TRANSMITTER, being manufacture in technical collaboration with

M/s Fuji, Japan, is of capacitance type, used for measuring pressure, differential pressure,

flow rate, liquid level and other process variables. It employs a unique floating cell structure

and is available in various compact models with wide measuring ranges.

ELECTRONIC TRANSMETER

4.GAS ANALYSERS AND POLLUTION MONITORINGINSTRUMENTS

It manufactures GAS ANALYSERS and POLLUTION MONITORING INSTRUMENTS in

technical collaboration with M/s MANNESMANN HAREMANNAND RAUN, WEST

GERMANY. The range covers almost all types of online gas analyzers viz. paramagnetic,

infrared, thermal conductivity and pH analyzer- ILS gas concentration robust design allows

these to withstand the stress and strain of everyday industrial operation and can be employed

to identify noxious concentration s in environmental atmosphere.

IL also offers:

i. Zirconium Probe Oxygen Analyzers in collaboration with WESTINGHOUSE.ii. Dissolved Oxygen & Hydrazine analyzer Model Oxyflux-4 in collaboration

with Dr. THIEDING & Co. WEST GERMANY.

iii. Steam and Water Analyzers & systems (SWAS)

5.MICRO PROCESSORBASED RECORDERS /CONTROLLERS

IL now offers microprocessorbased recorders in technical collaboration with M/s ABB

KENT, UK. The microprocessorbased strip chart recorder is designed to provide recording

of up to six input channels in a compact instrument with improved accuracy, reliability and


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ease of programming. Besides strip chart recorder this range also includes circular chart and

digital display controller.

6.CONTROL VALVES

IL manufactures a wide variety of control valves viz. globe, butterfly, angle, three-way,below sealed, flowing, micro flow, top and bottom guided, double seated, low noise, etc. to

cover all conceivable application in technical collaboration with world renowned m/s

YAMATAKE HONEYWELL, JAPAN. Pneumatic and electric actuators are also available.

7.SAFETY RELIEF VALVE

The SAFETY RELIEF VALVES are manufactured in technical collaboration with M/s

NUOVO PIGONE, ITALY. (the world leaders in the design and manufacture of safety relief

valve).

They give prompt relief at the exact pressure for which they have been set and are available

from to 10 with pressure rating of 150 2500 ANSI.

8.LARGESIZE SOFTSEATED BUTTERFLY VALVES

Confirming to American Water Works Association Standard, these valves are the best choice

as isolation valves for water and gas application. Ensuring bubble tight closure, due to soft

seating, these are available in wide range of sizes up to 2400 mm and materials to suit any

process requirements.

9.RAILWAY SINGNALING SYSTEMS

IL has achieved a high degree of excellence in designing, manufacturing, supplying

installation, testing and commissioning of railway signaling systems comprising of panel

interlocking, route relay interlocking, color light signaling, etc. the complex circuit design for

these systems are carried out on computer aided systems. The manufacturing range of IL in

technical collaboration with KYOSAN ELECTRIC MANUFACTURING Co., JAPAN,

includes various types of signaling relays, track circuits, audio frequency track circuit

equipment, modernized systems like CTC, SSI etc.

10.CONTROL PANELS AND DESKS

For electronic and pneumatic instruments in different types, colors and finishes to suits the

customers specific requirements.


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CONTROL PANELS

11.ANNUNCIATIORS

CMOS based Annunciators, based on its in house R&D, are available in integral, wall

mounting and remote configuration featuring all standard requirements.

12.DIGITAL SWITCHING SYSTEMS

The digital switching systems being manufactured are based on indigenously developed C-

DOT technology.

ELECTRONIC PRIVATE AUTOMATIC BRANCH EXCHANGE (EPABX). The system

includes 128 and 256p exchange, working in digital environment which ensures high

reliability and speed.


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CUSTOMERS OF INSTRUMENTATION LTD.

Customer of Instrumentation Ltd., Kota are in the following sectors

I. Steel Plants

Steel authority of India Limited

(a) Bhilai Steel Plant

(b) Bokaro Steel Plant

(c) Durgapur Steel Plant

(d) Rourkela Steel Plant

(e) Tata Iron and Steel Co., Jamshedpur

II. Paper Industries

(a) Hindustan Paper Corporation Ltd.

(b) Andhra Paper Mills (A.P.)

(c) Mysore Paper Mills

III. Power

(a) National Thermal Power Corporation (NTPC)

(b) Bharat Heavy Electrical Limited (BHEL)(c) Steel Authority of India Limited (SAIL)

(d) Durgapur Projects Ltd.

IV. Atomic Energy

(a) Nuclear Power Corporation India, Ltd.

(b) Department of Atomic Energy (DAE)

(c) Bhabha Atomic & Research Centre

V. Fertilizers

(a) The Fertilizer Corporation of India Ltd.

(b) Shriram Fertilizer, Kota

(c) Hindustan Fertilizer Corporation Ltd.

VI. Railway

(a) Western Railway

(b) Central Railway(c) National Thermal Power Corporation Ltd.


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(d) RITES

VII. Defence Products

(a) Defence Laboratory, Jodhpur

(b) ARDE, Pune

(c) DRDL, Hyderabad

(d) Ministry of Defence, New Delhi

VIII. Textile

(a) Grasim Industries

(b) Gwalior Rayon Silk Mfg. Co. Ltd., Nagda

(c) Baroda Rayon Corporation Ltd.

IX. Pharmaceuticals

(a) Indian Drugs & Pharmaceuticals Ltd. Hyderabad, A.P.

(b) Indian Drugs & Pharmaceuticals Ltd., Rishikesh

(c) Hindustan Antibiotics Ltd.


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METHODOLOGY

CONCEPTUAL FRAMEWORK :

INTRODUCTION OF INDUSTRIAL MARKETING

Industrial marketing consists of all activities involved in the marketing of products

and services to organization (i.e., commercial enterprises, profit and not for profit institution,

government agencies and resellers) that use products and services in the production of

consumer or industrial goods and services in the production of consumer or industrial goods

and services and to facilitate the operation of their enterprises. Viewed from the perspective

of Marketing, industrial marketing is, then, human activity directed towards satisfying

wants and needs of organizations through the exchange process.

Exchange transactions in the industrial market consist of

(a) Products or Services Exchange

(b) Information Exchange

(c) Financial Exchange and

(d) Social Exchange

Product Exchange :

The characteristics of the product or service involved have a significant effect on the

industrial exchange process. The ease of exchange depends upon the ability of the seller toidentity the buyers need and the products potential to satisfy those needs.

Information Exchange :

Information Exchange often consists of answering technical, economic and

organisational questions regarding pre and postsale maintenance and servicing. Products must

be planned and designed to serve customers. To accomplish this, buyers and sellers tend to

work together, exchanging productspecific information over long period of time.


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Financial Exchange :

Financial exchanges may involve such considerations as the granting of credit or the

need to exchange money from one currency into another when dealing with foreign buyers.

Social Exchange :

Social exchange is important in such areas as reducing uncertainty between buyer and

seller, avoiding short term difficulties, and maintaining the exchange relationship over a

length transaction period. Many aspects of an agreement between buyers and sellers in the

industrial market are not fully formalized or based on legal criteria until the end of the

transaction period. Rather, much of the process of exchange is based on mutual trust.

Industrial Marketing deals with marketing of specialized industrial products and is

quite different from conventional marketing of FMCG goods.

The main characteristics of industrial marketing are

1. It deals in sale of industrial products.

2. It requires in depth technical knowledge of the product being sold.

3. In industrial marketing Mass advertisement/vigorous advertising through electronic

and Print Media is not done. Instead, Personal one to one contact with customer are

made.

4. No or very small distribution channels are in this marketing.

5. In most of the cases the seller and buyer know each other.

6. The sale is done through the proper marketing process of tender enquiry, quotation,

techno-commercial discussions etc.

Difference in Industrial Marketing V/s Consumer Marketing

Area Industrial Marketing Consumer Marketing

MarketStructure

Geographically concentratedrelatively few buyers

Geographically dispersed Massmarkets monopolistic


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Area Industrial Marketing Consumer Marketing

oligopolistic competition competition

Products Technical complexity

customized service, delivery

and availability veryimportant

Standardized services, delivery

and availability somewhat

important

Buyer

behaviour

Functional involvement

rational/task motive

predominante technical

expertise stable relations

interpersonal relationships

reciprocity

Family involvement, social/

psychological motives

predominate, less technical

expertise non personal

relationships.

Decision

making

Distinct, observable stages Unobservable mental stage

Channels Shorter, more direct, fever

linkage

Indirect, multiple linkage

Promotions Emphases on personal selling Emphasis on advertisement

Price Competitive bidding,

negotiating on complex

purchase, list prices on

standard items.

List prices

Advertising Practically nil advertising in

mass media in this marketing

It heavily dependent on mass

media advertising

Contact Totally dependent upon one

to one contact

No one to one contact with

users

Knowledge Selling requires in depthtechnical knowledge. Selling requires no depthproduct knowledge.

Effective and responsive industrial marketing strategy rests on the industrial

marketers knowledge of how organizational buying behaviour is affected by forces within

the organization. Seldom does an organizational buyer make a decision in isolation.

Purchasing decision are influenced by organizational, group and individual forces as well as

force within the external environment.


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MARKETING PROCESS OF INSTRUMENTATION LIMITED

MAREKETING ORGANISATION

Marketing Origination consists of head office at Bombay & wide network of regional &

branch offices at following places. Calcutta , Delhi , Chennai , Bombay , Durgapur , Guahati

, Pune , Vadodra , Visakhapatnam , Ahmadabad , Secundrabad . Orders are booked by their

offices &supplies are made from factory.

MARKETING ORGANISATION OF SUPPLIERS FOR EQUIPMENT OTHER

THAN PROCESS CONTROL INSTRUMENTATION

Other suppliers in this category also follow the same line i.e. maximum officers for

concentrating on follow up with individual customer & order booking.

There are very large numbers of suppliers in this category vary from very big one like M/s

L&T to very small one like M/s RTPL.

Most of the suppliers are ready in market for other unrelated &related products with their

network of sales services offices which they utilize for this product range also.

Marketing Strategy: This differs from supplier to supplier. Big ones like M/s L&T, M/s Ind.

Chem. Etc. are trying to cover all over India, while some ones like M/s Kalindi, M/s RPTL

are concentrating one or two areas for effective marketing.

Rule of the game for this type of product is low price, fast delivery & efficient after sales

services. To achieve this, many companies like M/s L&T are using to fullest extent their large

network of stockiest. Dealers, service centre, which already exists for other proud range.

Most of the companies are setting up more & more sales offices for regular contacts are

following up with potential customers.

Some suppliers of EPABX like M/s L&T & M/s Uptron are trying to attract customer by

supplying complete system i.e., both exchange & telephone of their own make with package

or erection commissioning.


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MARKETING PROCESS

Marketing is everywhere. Formally or informally, people and organizations engage in

a vast number of activities that could be called marketing. Good marketing has become an

increasingly vital ingredient for business success. And marketing profoundly affects our day-

to-day lives. Financial success often depends on marketing ability. Marketing deals with

identifying and meeting human and social needs.

Marketing is an organizational function and a set of processes for creating,

communicating and delivering value to customers and for managing customer

relationships in ways that benefit the organization and its stake holders. The aim of

marketing is to make selling superflows. The aim of marketing is to know and understand

the customer so well that the product or services fits him and sells itself. Ideally,

marketing should result in a customer who is ready to buy. All that should be needed then

is to make the product or service available. In business markets companies selling

business goods and services often face well -trained and will informed professional buyers

who are skilled in evaluating competitive offerings. Business buyers buy goods in order

to make or resell a product to others at a profit. Business marketers must demonstrate how

their products will help these buyers achieve higher revenue or lower costs. Advertising

can play a role, but a stronger role may be played by the sales force, price and the

companys reputation for reliability and quality.


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The Company is divided into 4 units.

Instrumentation Ltd.

Kota Unit PDDC Marketing Palghat Unit

Factory Unit Unit Factory

Kota and Palghat units are production units, PDDC and Marketing units are

Business Acquisition Units.

Marketing Units :

Since incorporation of the company all selling activities was done by commercial

unit. In 1988-89 commercial units was bifurcated into two units.

(i) PDDC Unit

(ii) Marketing Unit

(i) PDDC Unit : This unit handle all turnkey project of control & instrumentation in

segments like steel, plants and Thermal Power Station. In this method production is

done accordingly to requirement of customer.

(ii) Marketing Unit : The company has product range that include retail industrial

products like Transmitters, UPS, SDDS, C-DOT (MAX/XL), Mobile Tower etc.

solenoid valves, control panels & desks, Defence products.


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This unit of the company looks after the sales of retail products.

The marketing unit is headed by General Manager (Marketing) and its organizational

structure is shown as below :

GM Marketing

Delhi Kolkatta Chennai Marketing

Branch Branch Branch Co-ordination

Kota

Mumbai Jaipur HyderabadBranch Branch Branch

Each branch is headed by Branch Manager and has officials looking after various

products. They contact the customers (Existing and Potential) in their region through various

means like personal contacts fax, telephone, E-mail etc.

Since IL is making industrial products and not customer durables, the company knows

its customers well and customers also know the product range of IL.

Moreover company is more than 43 years old, they have very old and strong

relationship with its customers IL enjoys lot of goodwill with its customer & this results in

repeat orders to the company.

Officials of each branch get enquiries from customers for their requirements and

quotations are submitted.


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Chart No. 4

FLOW CHART OF MARKETING PROCESS IS ADOPTED IN

INSTRUMENTATION LTD.

This process is explained in details in flow chart. Each step is explained in below

paragraph.

Receiving Tender Enquiry

Submitting Quotation

Techno Commercial Discussion

Selected lowest price Technically

accepted offer

Issuinsg Purchase Order

Branch allots O.P. No. (Order Processing Number)

and makes MDS (Manufacturing Data sheet)

and CDS (Commercial Data sheet)

& sends to Kota marketing Co-ordination

Kota Marketing Co-ordination makes PP

(Production Programme) and sent to PPC

(Production Planning & Control)

PPC Makes MPR (Material Purchase Requirement)

to Purchase Department

A


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Purchase Department floats enquiry

to its vendors

Receiving Quotation

Techno Commercial Discussions

with venders

Select lowest price

technically accepted offer

After receipt of all material required to manufacturethe produce PPC Deptt. makes PP to

Production Shop & gives MWV

(Material Withdrawl Voucher) to Production

Product Manufacturing

QA (Quality Assurance Checks)

if OK

Gives QA tag

Product finishing and make PCV

(Production Credit Voucher)

A

B

For Rectification

If not OK

Customer

inspection

not

OK

OK

If

OK

If NO

Inspection

If customer

inspection

Informs Mktg.

co-ordiation for

inspection


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Deposit in Finished Goods (FG)Store through PCV

Inform to Marketing Kota

For giving Challan

Marketing gives challan

to FG stores

FG stores Gives material for

Packing & Despatch

Despatch the material & gives all

documents to Bill only

Marketing Department sent bills to customer &

its banker & collection of payment

B


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DETAILS OF MARKETING PROCESS IN IL

1. Receiving Tender Enquiry :

Enquiry is floated by purchaser to it known suppliers of the product he requires to

purchase. In this enquiry all technical requirements are mentioned by purchaser and

he also mention commercial terms & conditions in this document like payment terms,

taxes an duties, security deposits for EMD and performance etc.

2. Submitting Quotation Tender :

According to the requirements of the tender enquiry the company submitting

quotation mention in this document all technical specifications of the product and also

mentions the prices and commercial terms and conditions i.e. excise duty, P&F, sales

tax, freight, insurance charges etc.

Seller also mentions special terms and conditions regarding payments through

Bank/Advance payment.

3. Techno Commercial Discussions :

Purchaser receives quotation from many suppliers and evaluates them as per technical

specifications required by them and prices quoted by sellers.

4. Selected lowest price technically accepted offer :

After techno commercial discussion the user selects the lowest priced technically

accepted offer. After selecting the offer, the user finalizes the terms and conditions

with supplier by means of telephonic discussion writing letters meetings etc.

5. Issuing Purchase Order :

After receiving the satisfactory reply from the seller the user issues a purchase order

to supplier to supply the material as per technically accepted specifications mentioned

in the purchase order. Purchaser also mentions the commercials terms and conditions

in the purchase order.

Purchase order is a document after which manufacturing process starts.


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6. Branch Function :

After receiving Purchase Order, Branch registers the order and allots a order

processing file no. and prepare manufacturing data sheet and commercial data sheet

and sends to Kota Marketing Co-ordination.

Order processing file no. is an eight digit number as mentioned below there after this

OP No. is used in all codependence processing inside I.L.

9 1 3 0 7 0 0 5

The significance of each digit is explained below :

9 = The first digit specifies the unit and 9 is the digit of marketing unit, 8 is forproject DDC unit & so on.

1 = The second digit specified the branch by which order is procured.

1 denote Delhi branch

2 denote Chennai branch

3 denotes Kolkatta branch

4 denotes Mumbai branch5 denotes Defence Marketing Kota

6 denotes Marketing Co-ordination Kota

7 denotes Jaipur branch

3 = The third digit specify the order is for the retail order or spare items order.

1 denotes retail supply

2 denotes spare items supply

07 = This digit shown the year of the receiving purchase order. For financial year

2007-2008, 07 is used.

005 = This number denotes order processing file number.

7. Kota Marketing Co-ordination makes production programme and sent to production

planning and control :


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After receiving purchase order Mktg. Co-ordination Kota, sent MDS and CDS to

production planning control department on online computer system.

There is an online system for controlling the manufacturing process. So a production

programme is made on online system which is received by PPC Department

8. PPC makes Material purchase Requisition to purchase department :

After receiving the production programme from marketing co-ordination the

production planning and control department checks the items that are not available in

stock. Then PPC make MPR for not available items and sends to the purchases

department for purchasing the required material. This is also done in online system

using PPC module.

9. Purchase department floats enquiry to its vendors :

After receiving MPR from PPC Department the purchase department floats enquiry to

its vendors for the supply of material.

10. Receiving Quotation :

After floating enquiry the purchase receives quotations from various suppliers and

processes it.

11. Techno commercial discussion :

After receiving quotations techno commercial discussions are done by purchase

department.

12. Selected lowest price technically accepted offer :

After techno commercial discussion the purchase department selects the offer which

is suitable according to the technical specifications and prices.

13. Function of PPC Department :

After receipt of all material required to manufacture the product, PPC Department

makes Production Programme to Production shop and gives the Material Withdrawal

Voucher (MWV) to production and production shop gives MWV to stores and gets all

material for making product.


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14. Product Manufacturing :

After receiving all components from store the production shop starts its

manufacturing process.

15. Quality Assurance Department :

After manufacturing the items the production shop offers it to quality assurance

department for checking the manufactured items as per specification of purchase

order.

Quality Assurance checks the items and if it found OK they issue a quality tag

number and if the item is not found OK then the QA Deptt. returns the item to Product

Mgf. Department for rectification as suggested by the QA Department. The

production deptt. after rectification, offers the product back to QA deptt.

16. Gives Quality Assurance Tag :

When the Quality Assurance Department Satisfied for the quality of the manufactured

item then it gives QA Tag to the manufactured item. If customer inspection is

required then production Department informs to marketing co-ordination for calling

the customer for inspection.

17. Product finishing and makes production Credit Voucher :

After QA certification production department finishes the product and makes

production credit voucher document in on line computer system.


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18. Deposit in Finished goods store through PCV :

After preparing Production Credit Voucher all the finished goods are deposited in FG

store through PCV.

19. Inform to Marketing Co-ordination Department :

When the Finished product is deposited in store the store department informs to mktg.

coordination deptt. for giving challan.

20. Mktg. Gives challan to finished goods store :

When the clearance information received by marketing department, it prepares the

challan giving all specifications of materials and mention all commercial terms in thechallan.

21. Finished Goods stores gives material for packing and Despatch :

After receiving the delivery challan, FG store issues the material to packing

department for packing the material and to despatch them.

22. Dispatch the material and gives all documents to Billing Department :

When all the documents i.e. delivery challan, packing list, excise gate pass, copy of

Railway Receipt/Goods Receipt Voucher etc. are available it is send to Billing Deptt.

for raising invoices on customers.


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Then billing department raised the bills as per delivery challan and send all

documents to marketing co-ordination department.

23. Marketing Department sent bills to customer/its banker for collection of

payment :

When bills copies is received by Mktg. Co-ordination it is sent to customer/its banker

/ branches office for collection of payment as per commercial terms and conditions, of

the purchase order.


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PURCHASE DEPARTMENT

All material is purchased by purchase department in I.L. When company receives

order from customer Kota Marketing co-ordination makes production programme and sent to

Production Planning and Control (PPC). PPC makes Material Purchase Requirement and

sends to Purchase Department for purchasing the required material.

In this way procurement action is taken by the purchase department of the

company.

Purchase department is divided into two parts

Purchase Department

Indigenous Purchase Import Purchase

1. Indigenous Purchase : When purchase made from within the country for fulfilling

the order it is known as indigenous purchase.

2. Import Purchase : When purchase made from outside the country for fulfilling the

order which the company receives it is known as import purchase.

PROCEDURE OF INDIGENEOUS PRUCHASE

Analysis of Existing Procedure of store Accounting :

1. Procurement division on completion of purchase procedure (formalities) place the

purchase order on supplier and after entering P.O. details in online ERP System, a

copy of P.O. is sent to the store accounts. (a copy of P.O. format is enclosed). The

copy of P.O. is kept in particular series in respective P.O. file in store accounts.

2. According to the payment terms of purchase order, if advance payment is to be made

to supplier, than procurement division after entering the required details in online

ERP system in respect of payment, IRL is prepared and is sent along with

Performa/confirm invoice to store accounts for further action. (a copy of IRL is

enclosed).


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3. While preparing the payment voucher, all the terms & condition of P.O. is verified

with the PI/Confirm Invoice and with the IRL. After verification of the PO terms, the

payment particulars are recorded in purchase order as well as in suppliers advance

register (manually). Format of advance register is enclosed and thereafter payment

voucher is prepared in online ERP System and is sent to cash section for preparation

of cheque/DD and controlling the voucher in online system. (format of payment

voucher is enclosed)


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Where the payment to supplier is to be release through Letter of Credit, in such cases,

a request for LC opening is sent by procurement to store accounts and LC is opened in

bank accordingly. Either the payment is to the supplier is released through bank on

retirement of LC documents from bank or on due date, it depends on the nature of LC

(I.E. sight or usance LC). LC opening, payment and retirement of dispatch details

from the documents retired from bank, are recorded in the LC register. (LC register

format is enclosed).

4. When input material is received in IC&S Store, various input details are entered in

material module in online system, then receipt voucher and CENVAT voucher (D3) is

prepared. Some samples of input material is sent to QA, after approving the quality,

the samples are returned to the IC&S store, thereafter R.V. is controlled in IC&S store

and the copy of the same is sent to the store accounts (A copy of RV is enclosed).

After verification of P.O. terms, the input material details are recorded in P.O. as well

as in supplier is advance register and thereafter purchase voucher (RV voucher) as

well as payment voucher (if payment is due) is prepared in online system and both the

voucher are sent to book section and cash section respectively of their needful action.

5. A statement of completing items purchased, containing the input details is prepared

periodically by procurement/mktg. Unit/comm. Unit (if PO series is pertaining to KU)

and is sent to store Group-I (if invoicing of subject item is done by billing section)

and to the store accounts respectively. Further (despatch) sale particulars of the input

is incorporated in the statement of completing items and is sent to store accounts.

After verification of input details from the PO, necessary details are recorded in PO

and voucher for consumption and suppliers account are prepared for onward sending

the same to book section. Where the invoicing of completing items is done by other

units as stated above and the PO is placed in KU series, then store accounts sends the

fund/other transfer advice to the respect unit.

6. When input material bought for manufacturing has rejected at shop, then QAD form

containing the information in respect of rejection of the input, is prepared in nine

copies by QA department and a copy of the same is sent to the store accounts, based

on the information containing in the QAD, store accounts debits the suppliers account

and credit the consumption of indg. material other than W.O. account. (format of


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QAD is enclosed). When replacement/refund is received, then suppliers account is

credited accordingly.

7. Sale tax forms are issued in the name of suppliers (in case of inter state sale only) on

receipt of their periodical statement of material and delivered the same to

procurement. The S.T. forms are issued after reconciliation of suppliers statement

with our sub-ledger and clearance (outstanding) debit balance lying in suppliers

account.


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Chart No. 5

Sight draft

A

Imports Department

Advance

payment

Quotation from foreign supplier

Purchase Proposal Vetting

Payment

Advance

paymentLetter of

creditSight draft Direct

payment

Technical and Financial Adjunctions

Financial bid vetting of Technically Ok suppliers

Purchase Order Vetting

Purchase Order Placed

Foreign purchase dept.

Quotation from foreign supplier

Purchase Proposal Vetting

Payment

Technical and Financial Adjunctions

Financial bid vetting of Technically Ok suppliers

Material purchase request (Indent)

Purchase Order Vetting

Purchase Order Placed


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Bank confirmation

Foreign Supplier

Bank

Kota

Material air/ship

Destination (Mumbai/Delhi)

Dispatch to corresponding unit

Quality check

Pricing

Holding Stock

Shop

Approved

RejectedGR waiver

request

Production

Documents Materials

Foreign

Purchase

Dept.

Custom

Documents

FRV

FRV

Rejected

Material

Bill of

Entry

A


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Import Department of Instrumentation Ltd.

Product planning dept. decides for a product to be manufactured. They list out

the raw materials needed and the request for material purchase is sent to purchase

dept. In case the raw material or components are to be imported the procedure is as

follows:

Procurement

1. Material purchase request comes from indenter.

2. A public notification in media like newspapers is given inviting tenders from

suppliers as per mentioned specification. The Tenders can be of three types:

Open tender : Any supplier fulfilling specified conditions may apply.

Limited tender : When only limited suppliers are there. This is the most

common type with IL.

Single source : When there is only one supplier who is in accordance with our

need. Sometimes we receive quotations from only one supplier then in such a

case it comes a single source tender.

3. Tenders received are opened

4. A comparative statement is prepared. The various quotations are compared with each

other in terms of price, quality, period of delivery, basic rate, loading rate, transport

cost, compatibility, etc. and the best are marked as L1, L2, and L3 and so on.

5. The most reasonable party is negotiated with for deciding payment mode, transport

medium and other related areas.

6. Order is then placed.

PAYMENT METHODS

This involves a multi stage process. First of all a material purchase request come from

the purchase dept. to foreign purchase deptt. The deptt. invites various quotations from

foreign suppliers and the best one is selected. A purchase order is placed accordingly.

The mode of payment is decided with the supplier. It can be done in the following

ways:


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# Advance Payment

# Letter of Credit

# Sight Draft

LETTER OF CREDIT

Letter of credit (L/C) is a commercial letter of credit opened for imports of goods by a

banker at the instance of his importer customer in favour of overseas seller.

A L/C may be commercial or non-commercial one. When it relates to a mercantile

transactions, buying and selling of goods, it is called a commercial letter of credit, when it

does not relate to any mercantile transaction, but only conveys an order of the opening banker

to his overseas correspondent to pay to third party named in the order within the specified

period of time against draft drawn upon him by that party up to stated amount, it is non-

commercial letter of credit.

This is the most common mode of payment.


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Advance payment

This is done by way of demand draft or telegraphic transfer (now a days transfer

through SWIFT system). Method is usually used for dealings involving small amounts and

with known parties where delivery period of goods is short. This reduces the delays in getting

the materials due to letter formalities. This also saved the bank charges paid to foreign banks

which are usually quite high.

SIGHT DRAFT

This method is rarely used. When the formalities of method of payment are completed

the foreign supplier dispatches the good by air/sea route to Delhi/Mumbai where they are

received and forwarded to the concerned unit. Meanwhile the payment is done within the

period as specified in the contract which can be up to 120 days. This can be called as L/C at

sight.

Insurance

This is a kind of security against losses via fire, theft and flood. In the words of

Justice Tindall, Insurance is a contract in which a of sum of money is paid to the assured as

consideration of insurers incurring the risk of paying a large sum upon a given contingency.

Insurance is done for:

Inward indigenous

Imports

Outward dispatches


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RESEARCH METHODOLOGY

DEFINITION OF RESEARCH METHODOLOGY & DESIGN

Research study will be based on collection of primary data as well as secondary.

Research Methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. The study of research

methodology gives the student the necessary training in gathering material and arranging

them.

Research Comprises defining and redefining problems, formulasting hypothesis or

suggested solutions; collecting, organizing and evaluating data; making deductions and

reaching conclusions; and atlast carefully testing the conclusions to determine whether they

fit the formulating hypothesis.

-Clifford Woody

Research is an academic activity and as such the term should be used in technical

sense. Research is the systematic approach concerning, generalization & formulation of

theory.

RESEARCH DESIGN

It is an exploratory research design.

studies are also termed as formulative research studies. The main purpose of such

studies is that of formulating a problem for more precise investigation or of developing the

working hypothesis from an operational point of view. The major emphasis in such studies is

on the discovery of ideas and insights. As such the research design appropriate for such

studies must be flexible enough to provide opportunity for considering different aspects of a

problem under study.