v guard big idea - bg 19 (1)
TRANSCRIPT
V-GUARD BIG IDEA CONTEST
GROUP : BG-19
COMPANY PROFILE
• V-Guard Industries Limited (V-
Guard), a Kerala-based company, was
incorporated in February
1996, Promoted by Mr. Kochouseph
Chittilappilly. V-Guard has been an
established player in the stabiliser
business since the last 30 years with a
market share of 50% in South India. It
operates 3 divisions i.e., Electronics
(manufacturing voltage stabilisers, UPS
and digital home UPS), Electrical/
electro-mechanical products. The
company has manufacturing facilities at
Coimbatore in Tamil
Nadu, Udhamsingh Nagar
(Uttarakhand) and Sirmour in Himachal
Pradesh.
1977
V-guard begins
1980
stabilizer
1986
New branches
In TN and karnataka
1991
New branch in Andhra Pradesh
1992
Water pump
1996
Launch water heater
&cables
1998
UPS
1999
Cable manuf.
2003
Solar water heater
2004
Wind mill
2006
Fan
2007
Became public limited company
2008
Listed in BSE & NSE
2012
Domestic switch
2014
Mixer grinder
OUR PRODUCT…
CCTV Camera
• IP HD Camera
• Analog HD Camera
CCTV Camera
• CCTV (closed-circuit television) is the use of video cameras, primarily
for surveillance and security purposes, to
• CCTV is commonly used for a variety of purpose, including:
• Maintaining perimeter security in medium-to high-secure areas and
installations
• Observing behavior of incarcerated inmates and potentially dangerous
patients in medical facilities
• Traffic monitoring
• Building and ground security
• Overseeing location that would be hazardous to a human
Analog camera
Cameras in analog CCTV system send
video in traditional base band format over
coax or UTP cabling back to a digital video
recorder (DVR)
Video digitized & stored on hard drives.
Most modern DVRs are a network
device, and can be accessed remotely from
LAN, WAN or internet.
Video is kept on hard drives, typically on a
FIFO basis so there is always a rolling
video archive of the past X days.
So, despite video being transmitted from
cameras in analog format, live & recorded
video is still available over the network.
IP camera
IP video cameras broadcast their video as a
digital stream over an IP network.
Like an analog system, video is recorded
on hard drives, but since video is an IP
stream straight from camera, there is more
flexibility as to how and where that video
is recorded.
The DVR is replaced with an NVR
(network video recorder), which in some
cases is just software since it doesn't need
to convert analog to digital.
Video footage can then be stored on new or
existing network RAID drives as directed
by the NVR software.
Types of CCTV Camera
• Camera Type by appearance and function
• Dome camera
• Bullet camera
• PTZ camera
• Bullet cameras and Dome cameras are most common camera
types used for home and business security today.
• Both are easy to install, manageable, and offer complete control
to the user when securing areas of any size.
• Bullet cameras, as the name suggests, protrude outwards like a
gun’s barrel, while dome cameras have rounded “dome” shape.
• PTZ cameras, also known as PTZ IP cameras, are able to
pan, tilt and zoom while recording video. Can find a PTZ
camera for outdoor or indoor use.
Components of a CCTV Camera
• Power board
Usually positioned in a sort of "caboose" fashion at the back of the camera. Internal as well as external wires are connected to this.
• CMOS image sensor
An image sensor is directly attached to lens and will also always contain a square, or rectangular, piece of glass directly in the center of the board. All images and motions are sensed by this.
• Lens
fixed or adjustable type lens
Fixed lens are tightened to a particular angle but adjustable lens can be rotate t any angle.
• Infrared LED board
Infra-Red light can be used to provide discrete or covert illumination for CCTV; to minimize light pollution; or to provide very long distance illumination. IR LED which give red light at night and turn off at day time. light sensor under the camera lens which control the LED turning on or off.
Major Components
Infrared LED board Lens
CMOS sensor Power board
Working inside a CCTV camera
IP/digital and analog cameras may seem more alike than they are different. Both cameras
employ an analog image sensor, which is either CCD (charge coupled device) or CMOS
(complementary metal oxide semiconductor). Virtually, all analog cameras use a CCD sensor
and IP cameras can utilize either type. The analog signal from the sensor is then converted to
digital form by an analog-to-digital converter and further processed by the camera’s onboard
digital circuitry (DSP). Remember both IP camera and digital camera have digital signal
processing and digital video output but IP camera additionally has embedded web-server with
IP address to transmit video & audio through internet.
FOR V-GUARD
We suggest assembling CKD kits rather than importing fully build units in initial years
Once the volumes pick up, V-Guard can plan for technology transfer, setting up an
assembly line with higher levels of localization
Why assembling strategy ??
• Government benefits for promoting manufacturing and creating employment
• Sector specific incentives (25% CAPEX) under make in India
• Area based incentives and State incentives
• Tax breaks
• Using local labour we may able to sell the product at a better margin
Future plan
Intrusive Burglar alarm
A security alarm is a system designed to detect
intrusion – unauthorized entry – into a building or
area. Security alarms are used in
residential, commercial, industrial, and military
properties for protection against burglary (theft) or
property damage, as well as personal protection
against intruders
Monitoring the potential intrusion entry points with
sensors that communicate with a control
panel, transmitting alarm signal when detecting the
illegal intrusion, that's the basic concept of theory
of alarm systems.
MARKET
ANALYSIS
SECURITY&SURVEILLANCE
SYSTEM
• Currently, Analog based surveillance systems
accounts for nearly 68% of the market, yet IP
based surveillance systems are expected to
grow with relatively higher CAGR of 41.78%
in the coming years
INDIA CCTV MARKET
• The security systems sector in India can broadly be
divided into 4 main categories: Access Control, Detector
& Scanners, CCTV and Alarm Systems.
• Largest amongst these is the CCTV segment, accounting
for more than 50% of entire electronic security equipment
market in India .
• With high-success rate of CCTV surveillance
devices, security conscious organizations (both
government & non-government) in India are
implementing CCTV surveillance, reflecting an annual
expected growth rate of more than 20%. The growth in
the market has been driven by the growing awareness
among different end user segments.
1.93-3.06
(Billion)
CAGR (9.7%)
3250-20312.5
(Crore)
CAGR (25%)
55%30%
2%
2% 11%MARKET ASSESSMENTS
CCTV
ACCESS
DOOR INTERCOM
INTRUSION
OTHERS
BCG -ANALYSIS
While analysing the BCG matrix of competitors in security & surveillance system space we
observed that there are symptoms of a problem child. Most business unit have relatively small
market share in a high growth market. Further, there is a concerted entry by some major players
into the market as it shows a potential to turn enter the “Star Quadrant "from the “Question
Mark” where it currency is. We propose to V-guard to invest into this business portfolio which
can grow into an approximately 40 Crore market, without accounting for other offerings in this
space, in the next 5 years at a CAGR of close to 90%.
today.
However in the next 5 years V-Guard can have a very high relative market share taking the
product to the “Star Quodrant”
We recommend V-Guard to launch Analog and IP surveillance cameras with an extension to
other products covering entire Surveillance and Security Space.
CURRENT MARKET SCENARIO
• Today, security segment is a largelyfragmented industry. Tillnow, organized sector, has beenflourishing within the securitydomain, due to their low-pricedsecurity products.However, established brands willgradually dominate the market withconsumers now becoming conscious onaspects such as quality and the featuresof the product they are buying.
• A case in focus is that of Cannon whichsuccessfully forayed into this spacewith cash only acquisition of MilestoneSystems, a global leader in IPsurveillance solutions and AxisCommunications, the global marketleaders in network cameras in 2015 andin Indian Market the big brand Sonyentered in IP market recently
• Our Project proposal suggest security
surveillance market in initial year by
concentrating CCTVcamera and Burglar
alarm and introducing other security systems
as future such as: video door
phones, intrusion &, access control, smartcard
solution and biometric products.
• Factors such as the threat of terrorism and a
regular increase in the incidence of criminal
as well as illegal activities has led to an
increased sensitivity towards the security
compliance requirements at hotels, railway
stations, airports, hospitals, etc. which in
turn, has proven to be a growth driver for the
market in India. Although, the government
sector is the biggest segment in terms of
volume and demand, the private sector is also
increasing its expenditure on security
surveillance, due to increasing concern on the
safety of life and property.
RATIONALE OF PLAN
Go to Market strategy (GTM)
• The GTM strategy will cover the operational and marketing plan for the initial years
of operation of this division. For its initial foray into the Surveillance Space, V-Guard
can begin with the marketing and sales of the Analog and IP cameras. It should
operate as an assembly unit by importing products from China and selling in the
domestic market.
• Over a period of time when the volume make sense to get into manufacturing
space, V-Guard may look at setting up a fully owned manufacturing unit or acquiring
some niche players who have the technological advantage which can act in synergy
with V-guards superior understanding of the large untapped market and its sales
channel
MARKETING PLAN
• Total potential market
The total population of Kerala at around 3.4 Crores (roughly68 lakh households), and
number of commercial establishments, the retail or household segment and the
commercial enterprises are both segments with significant market potential.
• Addressable market
Limiting factors like income, dwelling units, size of the establishment etc. can used to
delimit the total potential market and derive the addressable market. Out of the total
dwelling units, roughly 20% of them are Below Poverty Line (BPL) leaving roughly
54lakh dwelling units that can be considered as potential customers
• Feasible market
The derived market size is again delimited considering the user preference based on
highly subjective factors like price, interest in the product, intent, already installed a
competitor product etc. We consider 65% of the addressable market as our feasible
market and so the feasible market can be roughly sized at shortlisted to 35 lakh
dwelling units
Target marketOut of the 35 lakh dwelling units in our feasible market, we target the affluent and
upper middle class population. Also, accounting for a ratio of 1:8 as the ratio of
dwelling units to establishments and applying similar limiting constraints we have a
target market of roughly 5 lakh establishments as our target market
Market share
We foresee that will the strength of a brand like V-Guard to back and taking
conservative estimate of two cameras per potential customer, we are looking at a size of
about80 lakh cameras with an additional replacement market which we are not
accounting for simplicity. We expect V-Guard to conquer roughly 15-18% of the
market share of CCTV cameras in Kerala within the first 3 years. That is our final
target is 14 lakh CCTV cameras in the first 3 years. So we have divided our target of
assembly into 3 years and increasing the production in the successive years.
Potential customer
• Industrial places:
Offices, warehouses, research and development centre, store room, security
gate, conference room , factories, plant, building, corporate
house,office,flats,township,warehouse, server room or MIS centres, research and
development centre, training centre, conference room, canteen, security
gate, cabin, chamber, store room and Exhibition Hall.
• Retail Sector
Jewellery store owners, departmental store owner, super market hypermarket and
Shopping Malls with a high demand for CCTV Camera Security System.
• Hospitality and Entertainment Sector
The CCTV system are widely used in
Restaurant, Hotels, Spa, Resorts, Waterparks, Gymnasium, Health Clubs and Guest
Houses.
• Residential sector
The product can find a marker for the people who feel intense need for Security for
their Personal Assets like Bungalows, villa, Home, Farm House, Flat[Apartment].
In Government, Public and Private Sectors
• V-Guard can provide CCTV and Security Systems to Auditorium, High
Courts, Government Offices, Museums, Convention Centres, Town Hall, City Civic
Centres, Airports, Ship Dock Yard, Harbours, Jetty, Ports, Special Economic Zones /
Export Zones [SEZs], Railways Stations, Bus Stops, Police Stations, Research and
development centres.
• Public parking areas, Cross road Traffic signals, Public garden, Highways, City
Roads, Public transport system, Sea [ocean] beaches, Electric Power
plants, Dams, Bridges, Mines, Irrigation canals, Petroleum oil Refineries, Fertilizer
plants, Auction Houses, Space Stations, Government Residential Colony, Public
Stadiums, Municipal Corporations, Offices.
• Mobile Cell Phone Towers, Commodity TravelCenters and Money Exchanges Market
Places, Stock Exchanges, Country Borders Security, Weapon Arsenal, Highway Toll
Booths, Beacons, Fire Brigade, Industrial Zones, Wind Farms, Tunnels, Air Craft
Runways, Petrol pumps & Gas Fuel Stations.
Positioning
• The product can be positioned as a slightly premium offering in line to the existing
position of the other offerings from V-Guard with an expected margin of 35-40%from
the business.
DISTRIBUTION CHANNEL
• V-Guard can market and sell the cameras primarily to installing dealers, system
integrators, government entities and security products distributors and through the
existing retail distribution business. Since V-Guard is in the industry for the last 35
years, there is an established, wide distributive network all over India for the supply
and distribution of its products. V-Guard has got 280 distributors, 12000 retailers and
1200 channel partners across India which can be effectively leveraged to market and
sell the products
COMPETITIVE ANALYSIS
Products
Samsung Sony Honeywell Cp plus Hikvision
Analog IP Analog IP Analog IP Analog IP Analog IP
Price 5000-6000 7000-
8000
5000-
6000
7000-
8000
2500-
3000
5000-
7000
2500-2700 5500-
6000
2500-
3000
5500-
6000
Common
features
High definition, Mega pixel, Vandal proof, HD resolution, Backup power
Service Excellent Satisfactory Satisfactory Maintenance problems
COMPETITIVE ADVANTAGE
• The major competitors are Samsung, Sony, Hikvision, CP plus, Bosch, Honeywell
etc. Majority of them doesn't have a limited cost affordable product with digital
technology.
• The main advantages of V-Guard are the production of coaxial cables which is
suitable for connection of CCTV cameras, which helps to convert Analog signals into
digital signals.
• It also boosts up the promotion of V-Guard UPS which provide power back up for
CCTV cameras.
• Some of the major competitors have not yet penetrate into IP camera market, so it
may be a competitive advantage for V-Guard by introducing IP cameras.
• Make a 24*7 customer service centre for booking
complaints, grievances, suggestions etc., which lead to a harmonic relationship
between customer and company
COMPETITIVE ADVANTAGE :PORTER MODEL
FACTOR CONDITONS
• V-Guard has excellent factor
conditions including Low cost and
highly trained sales force and model
management
• Excellent physical resources covering
a very strong distribution
channel, warehouse and other allied
infrastructure.
• An excellent accumulated knowledge
of the business and market for
consumer durables in India.
• The company has a very favourable
capital structure to enable it to foray
into new markets and product offering.
• The company has an excellent
ecosystem that is sustainable and
amenable to the demands of the
market it in operating in.
DEMAND CONDITIONS
• The demand for the security and
surveillance system is significant
enough and it can be placed in the
Question Mark quadrant of a BCG
matrix where the market growth is
relatively very high but the relative
market share is non existent for V
Guard today. However in the next 5
years V-Guard can have a very high
relative market share taking the
product to the “Star Quadrant”
Related and Supporting divisions
• V-guard has a large group of
electronic offering in related industries
with which they can coordinate or
share activities in the value chain.
• Manufacturing/assembly expertise
distribution, marketing or service are
all areas in which sharing of activities
could occur.
• This helps V-Guard establish a
competitive advantage over other
firms offering similar products.
Firm Strategy, Structure, and
Rivalry
• The goals, strategies, and ways of
organizing of V-Guard help in gaining
competitive advantage in the industry.
Company goals, ownership
structure, the motivation of
owners, the nature of the corporate
governance, and the incentive
processes that shape the motivation of
senior managers are all favourable to
V-Guard. A sustained commitment of
capital and human resources in turn
enhances productivity and
effectiveness of V-guard.
DEALER SURVEY
• We had done a dealer survey for our product among some of the prominent dealers ofsurveillance systems
Most of the dealers shared many feedbacks. One of the valuable feedback receivedfrom a dealer is that most of the customers demanding for CCTV cameras insurveillance and security systems. The only complaint received from customer is aboutthe night vision of the cameras. The proprietor also suggests that HD cameras willovercome this situation. So it may be a benefit for V-Guard if HD cameras introducedinto the market.
FOCUS GROUP INTERVIEW
• A focus group interview was conducted at Self help group, in our nearest location .The respondents aged between 30-65 and the key learnings derived from the focusgroup interview as the follows.
• All respondents are very conscious about their security.
• They are very supportive to CCTV surveillance system to reduce crimes andatrocities against women.
Sl No Dealers name No .of brand Monthly sale
1 Oxygen 3 30-50
2 Zak electronics 3 20-50
3 Target 4 15-40
SURVEY
• A survey was conducted among 86 potential business and household users covering
textiles, jewellers, hotels, commercial building, residential apartments and
educational institutions.
• Majority of the respondents having CCTV surveillance in commercial
establishments, apartments &public sectors
• Expected spending :About 50 % of the customers were willing to spend more than
Rs.50,000 on surveillance systems and another 30% between Rs.25, 000 –
Rs.50, 000.
• Pricing of the product: Around 40% of the respondents rate the pricing of the
product as very good when compared to others in the market. 32% rate the pricing of
the product as good as they think the prices can be more modified.
• Quality of the product: About 55% of the respondents rate the quality of the product
as very good & 28% rate the quality of the product as good.
• Installation and service support was considered as one of the primary factors in
choosing a brand
PLACE
• Since V-Guard is in the industry for
the last 35 years, there is an
established, wide distributive network
all over India for the supply and
distribution of its products. V-Guard
has got 280 distributors, 12000
retailers and 1200 channel partners
across India.
• Some of the Chinese suppliers from
whom the assembled product could
be imported are:
• Ningbo Wincar Auto Accessories
Co., Ltd.
• Yuyao Darrow Industry & Trade
Company Limited
• Ningbo Klinsmann Intelligent
Technology Co., Ltd., etc
PRICE
• The product is priced upon the basis
of a combination of three factors;
Competition, Cost and use. As a
business, we look at the prices of the
competitors and their offerings and
we price at a point that falls within the
competitors‟ price. Another factor we
found that the life of our product is
depends upon the quality of
components. So cost of this raw
material is an important factor for
pricing our product also. Therefore
there is a huge demand for this
product.
Promotion strategy• Advertisement through Media like TV, FM, Newspapers etc.
• Social Media pages and advertisement
• Tie up with big builders, BMS companies and corporate
• Cross selling to existing client base
• V Guard CSR initiatives to promote safe work place and dwellings for Improved
safety, especially to women and children, in the light violence against women.
• Make social awareness Camp with School NCC cadets.
• Tie up with builders, contractors, architects, electricians. Using radio advertising
it is very cost effective and easily reachable to customers in urban areas who are
on the move and the housewives at the homes.
• Tie-Up with real estate companies, builders, industry forums like
FICCI, ASSOCHAM, CII, CREDAI etc will help drive the product awareness
and sales. Conducting safety drives campaigns, joining with NGOs working on
women issues etc. can increase the awareness of the product.
• We Suggest film actor Mr.Prithiviraj’as Brand Ambassador
• Tie up with builders, contractors, architects, electricians. Using radio advertising
it is very cost effective and easily reachable to customers in urban areas who are
on the move and the housewives at the homes.
Projects in India
SMART CITY INITIATIVES
• Smart Cities Initiative of the government along with UN-Habitat Safer Cities
programme(Habitat II, 1996) focus on personal safety and reduction of fear by
improving safety services and accountability to the community. Capturing and
collating data in real time is the lifeline of a safe city project, especially if the data
pertains to an incident leading to a security threat.
• Funds will be allocated to procure modern equipment's, CCTV systems, perimeter
security systems, network equipment. Several state governments are also moving in
this direction.
SMART POLICING
These agencies collect and analyse data to devise solutions to problems such as street
robberies, juvenile prescription drug abuse, repeat violent offenders, and
neighbourhood drug markets. For evidence tracking CCTV market helps.
FINANCIAL ANALYSIS
We will be setting up an Assembling unit where the components
sourced from vendors will be assembled into the finished unit.
This assembly unit will have a cellular manufacturing layout
•Initial investment : Rs. 562,25,000
•Interest on working capital loan :14.5%
•Interest on term loan : 12%
•Number of workers : 2
•Number of Territory Sales Officer : 2
Financial details :- Hyperlinked…