vtu mba final summer project on hyundai part a

SHREE HYUNDAI.

PART- A

1. INDUSTRY PROFILE

The Indian automotive industry has witnessed an unprecedented boom in recent year owing the

improvement in living standards of the middle class, and a significant increase in their disposable

incomes. The industry is expected to touch the 10 million mark, to which the commercial vehicle

segment will be a major contributor. Industry experts peg the Indian Automobile Sales growth at

a compounded annual growth rate (CAGR) of 9.5 % by end of 2010.

India is the second largest two-wheeler market in the world.

Fourth largest commercial vehicle market in the world.

Eleventh largest passenger car market in the world.

Fifth largest bus and truck market in the world (by volume).

Envisaged to be the seventh largest automobile market by 2016, and world’s third largest

by 2030 (behind only China and the US).

Domestic Sales

The Society of Indian Automobiles Manufacturers’ Association (SIAM) estimates the sales

figures of 7.5 million motorcycles, 2 million cars (including MPVs, SUVs & MUVs) and 9

million two-wheeler For year 2008-09 fiscal. Consequently, India should be able to contribute

about 6 % to the total global automotive industry output by end 2010.

Automobile Domestic Sales Trends

(Number of Vehicle)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Total passenger

vehicles

902,096 1,061,572 1,143,076 1,379,698 1,549,882 1,551,880

Total 260,114 318,430 351,041 467,882 490,494 384,122

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T-JOHN INSTITUTE OF TECHNOLOGY

SHREE HYUNDAI.

commercial

vehicles

Three wheelers 284,078 307,862 359,920 403,909 364,781 349,719

Total Two

Wheelers

5,364,249 6,209,765 7,052,391 7,857,548 7,249,278 7,437,670

GRAND

TOTAL

6,810,537 7,897,629 8,906,428 10,109,037 9,654,435 9,723,391

Source: www.osec.ch

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%

Three Wheelers 3.6%

Two Wheelers 76.49%

Source: www.osec.ch

Growth and Development of the Industry2


SHREE HYUNDAI.

Auto sales in 2008 and 2009:

Company December

2008

December

2009

%

change

Maruti Suzuki 52,029 71,000 37

Hyundai 15,602 22,252 43

Mahindra &

Mahindra

7,726 16,999 120

General Motors 4,041 8,258 101

Skoda 732 1,113 52

Mahindra Renault 272 308 13

Total 80,402 119,930 49

Source: www.osec.ch

Leading Players

Profile of key Domestic Players:

Name of the

company

Parent company Output Models Plants

Tata Motors

Ltd

Largest

commercial

vehicle player in

the country and

one of the largest

in the

passenger

vehicles

segment.

Capacity –

160’000 units pa

Volumes –

171’870 units in

2004

Operating

income-

US$ 3.8

billion in 2005

Sierra, Sumo,

Safari, Indica,

Indigo

Pune

(Maharashtra)

Mahindra &

Mahindra Ltd

Flagship

company

Capacity –

125’000

Armada, Bolero,

Commander,

Mumbai, Nashik

(Maharashtra)

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of the Mahindra

Group; largest

player in the

tractor segment

in India

units pa

Volumes –

69’737

units in 2004

Operating

income-

US$ 1.47 billion

in 2005

Marshall, Maxx,

Voyager, Scorpio

Hindustan

Motors

Ltd.

A C.K Birla

group flagship

and one of the

oldest auto

companies in

India.

Capacity –

64’000

units pa

Volumes –

15’782

units

Operating

income-

US$ 159.7

million

in 2004

Lancer,

Ambassador,

Contessa,

Trekker,

RTV, Pushpak,

Pajero

Uttarpara (West

Bengal),

Pithampur

(Madhya

Pradesh),

Trivellore (Tamil

Nadu)

Ashok Leyland Hinduja group Operating

Income

- US$ 952.9

million in 2005

Multiaxle

vehicles,

tractor, ecomet,

engines, Viking

BSI,

Viking BS-II,

Vestibule Bus,

222

CNG bus etc

Ennore, two

plants

at Hosur, the

assembly plants

at

Alwar, Bhandara,

castings plant at

Hyderabad

TVS Motor TVS Group Operating

Income

- US$ 641.9

Mopeds - Excel,

Champ, TVS

50Scooterettes -

Hosur, Mysore

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million in 2005 Scooty

Motorcycles

- Max 100,

Victor,

Centra, Fiero

Bajaj Auto Bajaj Group Capacity - 2.52

million units

pa Operating

income - US$ 1.3

billion in 2005

Motorcycles -

Boxer, CT 100,

Discover, Wind,

Caliber, Pulsar,

Eliminator

Scooters

- Spirit, Saffire,

Wave

3 Plants at

Akurdi,

Waluj, Chakan.

Source: www.osec.ch

Profile of key Foreign Players:

Name of the

company

Parent

Company

Output Models Models Plants

Maruti

Udyog Ltd

Suzuki of

Japan holds

a 54.2 per

cent stake in

the company

Capacity -

500’000 units

pa

Volumes -

472’122 units

including

exports in

2004

Operating

iIncome-

US$ 2.4 billion

in 2005

800, Omni, Alto,

WagonR, Zen,

Baleno, Esteem,

Gypsy, Vitara,

Versa

Gurgaon

(Haryana)

Hyundai Wholly Capacity - Santro, Accent, Irrungattukottai5


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Motors India

Ltd

owned

subsidiary of

Hyundai

Motor

Company, S.

Korea

150’000 units

pa

Volumes -

171’905 units

Sonata, Terracan,

i-10, i-20,

(Tamil Nadu)

Daimler

Chrysler

India

100 per cent

subsidiary of

Daimler

Chrysler

Group

Capacity -

10’000 units pa

Volumes -

1’640 units

E class, S class,

C class

Pune

(Maharashtra)

Fiat Motors Subsidiary of

Fiat Auto SpA

Capacity -

50’000 units pa

Volumes -

10’428 units

Uno, Siena,

Palio,

Palio Adventure

Mumbai

(Maharashtra)

Ford Motors

Ltd

Ford Motor

Company, the

world's second

largest

automaker

Capacity -

100’000 units

pa

Volumes -

45’723 units

Ikon, Mondeo Chengaipattu

(Tamil Nadu)

General Motors

Ltd

Collaboration

between

General Motors

Corporation and

C.K. Birla Group

of companies

Capacity –

25’000

units pa

Volumes –

17’986

units

Astra, Corsa,

Swing, Forrester,

Vectra, Sail,

Optra,

Chevrolet Optra

Halol (Gujarat)

Honda Siel Cars

India (HSCI)

Established in

1995, with

Honda

Motor Company,

Capacity –

30’000

units pa

Volumes -

20,550

units

City, Accord,

CR –V

Noida (UP)

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(Japan) and Siel

Ltd (India) being

the key

promoters.

Toyota

Kirloskar

Joint venture

between

Kirloskar

Group and

Toyota Motor

Corp

Capacity –

50’000

units pa

Volumes -

42,549

units

Qualis, Camry,

Corolla

Bidadi

(Karnataka)

Skoda Auto

India

Skoda Auto,

based in Czech

Republic, is a

part

of Volkswagen

group

Capacity –

10’000

units pa

Volumes –

3’712 units

Octavia, Laura Aurangabad

(Maharashtra)

Hero Honda Joint venture

between Hero

Group, the

world's largest

bicycle

manufacturers

and

the Honda Motor

Company of

Japan

Capacity - 2.8

million

units pa

Operating

income - US$

1.66 billion

in 2005

Motorcycles -

CD

Dawn, CD

Deluxe,

Splendour,

Passion,

Karizma, CBZ,

AmbitionStep

Through - Street

2 plants at

Daruhera and

Gurgaon

Honda

Motorcycle &

Scooters India

Pvt. Ltd

(HMSI)

Wholly owned

subsidiary of

Honda Motor

Company Ltd.,

Capacity-

200’000 vehicles

per

annum

Scooters -

Activa,

Dio, Eterno

Motorcycles -

Manesar

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SHREE HYUNDAI.

Japan Unicorn

Source: www.osec.ch

2. COMPANY PROFILE

A. Background and Inception of the company:

Shree Hyundai is one of the dealership of Hyundai Motors India Limited in BOKARO. It

was established in the year 2007. With the opening of this venture, customers may feel ease as

they are having options to take the view from either of the show room. It seems Mr. B.D.Mishra

decided to open this showroom in Chas (Bokaro) area as there is no any passenger vehicle

showroom in this area and it is going to be the future business area of the Bokaro.

Shree Hyundai’ working philosophy is particularly based on “Prepare employees for the future

developments with developments in their personality.” As competition is very much intense

hence the management is working hard for customer relationship to achieve future business

growth.

As it is newly opened organization hence as every other organization it is also facing some

management problems. Management is trying to overcome all these problems and achieving

systematic workings here. Each and every department is distinguished for the employees. Every

employee is having its own designation and job profile and he/she has to work under that profile

only. For each segment of the vehicles, Shree Hyundai is having its separate executives.

Departments are connected through local area networks.

The main aim of management here is self development of employees. So that, they can be

empowered for the benefit of the organization and be able to take future responsibilities. It starts

with the joining of the employee in the organization. Initially, they have to work under various

departments till his/her probation period would be over. They have to start their works from the

ground level, so that they can understand the reality of the business here. Daily reporting at the

morning and the evening make them up to date with the objectives and their future targets. The

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SHREE HYUNDAI.

senior management knows that how they are doing their work and in which way they have to be

directed.

ABOUT HMIL

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor

Company, South Korea and is the largest passenger car exporter and the second largest car

manufacturer of India. HMIL presently markets 54 variants of passenger cars across segments.

These includes the Santro in the B segment, the i10, the Getz Prime & the premium hatchback

i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the

E segment and the Tucson in the SUV segment.

Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car

manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an

increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1

percent as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent, with

export of 270,017 units. HMIL currently exports cars to more than 110 countries across EU,

Africa, Middle East, Latin America and Asia. It has been the number one exporter of passenger

car of the country for the sixth year in a row.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most

advanced production, quality and testing capabilities in the country. In continuation of its

commitment to provide the Indian customer with global technology, HMIL commissioned its

second plant in February 2008 which produces an additional 300,000 units per annum, raising

HMIL's total production capacity to 600,000 units per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global export hub

for compact cars. Apart from the expansion of production capacity, HMIL currently has 286

strong dealer network and 540 strong service points across India, which will be further bolstered

in 2010.

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SHREE HYUNDAI.

In December 2008, HMIL launched the much awaited premium compact the i20 after it had a

global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the new

facelift Sonata Transform and the new Verna which are vastly improved models compared to the

outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh sales since its launch in

October, 2007. HMIL also became the only car manufacturer to introduce Automatic

transmission across segments with the launch of the i20 1.4 Litre Petrol Automatic. The i20 also

simultaneously got a powerful 1.4 Litre CRDi engine in July 2009. The i20 achieved the highest

safety rating by the European NCAP. In September 2009, HMIL introduced the new refurbished

Santro with luxurious interiors and improved exterior features. The Santro has been the highest

selling model for Hyundai with more than 15 Lakhs units sold since its launch in India in 1998.

Hyundai Motor India in December 2009 also crossed the 25 Lakh car production milestone.

Hyundai Motor India remains one of the fastest growing car manufacturers in the country. The

company’s overall performance in the automobile sector was recognized by the media as it was

awarded with the prestigious ‘Manufacturer of the Year’ award by both UTVi Autocar Car and

NDTV Profit-Car & Bike in 2009

HMIL has invested to expand capacity in line with its positioning as HMC's global export hub

for compact cars. Apart from the expansion of production capacity, HMIL currently has 251

strong dealer network across India, which will be further bolstered in 2009.

B. Nature of Business Carried:

Shree Hyundai is a dealer of cars of Hyundai motors. The business carried by Shree

Hyundai is of dealership. It is an also an authorized service centre and it totally aims in

selling cars both passenger and SUV vehicles as per demand of customers.

C. Vision, Mission and Quality Policy:

MISSION:

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SHREE HYUNDAI.

The mission of the Shree Hyundai is committed to develop the firm as a big

competitor and service provider in the Jharkhand Passenger car market.

VISION:

The dealer announced "Innovation for Customers" as our mid–to long–term vision with

five core strategies: global orientation, respect for human values, customer satisfaction,

technology innovation, and cultural creation. They desire to create an automobile culture

of putting customer first via developing human–centered and environment–friendly

technological innovation.

QUALITY POLICY:

Based on a respect for human dignity, it make efforts to meet the expectations of all

stakeholders including customers and business partners by building a constructive

relationship amongst management, labor, executives and employees. Also, they focus on

communicating their corporate values both internally and externally, and gaining

confidence from all stakeholders.

D. Products Profile:

MODEL VARIANT Ex-Showroom Price

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SHREE HYUNDAI.

(As on 19/02/2010)

(In Rupees)

SANTRO

Non A/C (S) 2,69,524

Non A/C (M) 2,72,985

GL (S) 3,34,971

GL (M) 3,38,432

GLS (S) 3,22,168

GLS(M) 3,58,628

I-10

D-Lite (S) 3,38,276

D-Lite (M) 3,41,757

Era 1.1L (S) 3,73,514

Era 1.1L (M) 3,76,996

Magna 1.1L (S) 3,87,693

Magna 1.1L (M) 3,91,174

Magna 1.2L Kappa (S) 3,99,794

Magna 1.2L Kappa (M) 4,03,275

Magna 1.2L-AT (M) 4,48,874

Sportz GLS1.2L (S) 4,27,061

Sportz GLS1.2L (M) 4,30,543

Sportz GLS1.2L-AT(M) 4,72,967

Asta GLS 1.2L (S) 4,85,749

Asta GLS 1.2L (M) 4,89,231

GLE 1.1 3,62,281

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Getz GVS 1.1 3,92,281

GVS 1.1 (175 tyre+ rear spoiler) 4,02,281

I-20

Magna 1.2L 4,83,999

Asta 1.2L 5,63,999

Magna Diesel 1.4L (ABS) 6,23,599

Asta Diesel 1.4L 6,87,199

Accent

Executive IMM 5,03,901

GLE 5,24,652

ECO 5,33,900

Verna

1.6 VTVT 6,46,038

1.6 SX VTVT 7,20,838

1.5 CRDi VGT 7,69,070

1.5 SX CRDi VGT 8,18,967

Sonata

Embera MT (Leather) 13,30,067

Embera AT (Fabric) 13,61,639

Embera AT (Leather) 13,92,927

Embera 2.0 CRDi 14,43,917

Embera MT (Fabric) 12,98,786

TUSCON CRDi 16,96,114

E. Area of Operation:

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The firm operates regionally in the Jharkhand circle. The showrooms are situated

in the important markets of Jharkhand that are Bokaro(Head office), Dumka,

Ramgarh, Ranchi and Purulia (Bengal). But the HMIL under which the dealership

situated operates globally in both Passenger cars segments and SUVs segment.

F. Ownership Pattern:

The firm is private limited firm and the dealership is directly under the HMIL.

Owner – Mr. B.D. Mishra

CEO- Mr. Nitesh Kumar Mishra

Branch Manager and Manager Sales– Mr. Manish Prasad

G. Competitors Information:

Car segment – Maruti Suzuki

M-800 had dominated the Indian car market since it was launched in 1984. The

introduction of new cars by competitors made the M-800 look obsolete as it had not been

changed in any major way for over two decades. Apart from the increased competition,

MUL also had a few other problems on its plate.

There was a delay in setting up of a plant in India for manufacturing diesel engines and

transmission systems for cars. The engines for its diesel variants were imported from other

countries, and there were limits on the quantities it could import. In the market, MUL's

models like the Zen, Alto, WagonR, and Baleno were showing mixed results.

Utility Vehicle segment – Mahindra

Marketing Strategy of Mahindra and Mahindra Limited for Scorpio

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SHREE HYUNDAI.

In June 2003, 'Scorpio,' a sports utility vehicle (SUV) from Mahindra and Mahindra Ltd. (M&M),

a leading Indian automobile company, celebrated the first anniversary of its launch.

This one year journey had been quite fruitful for Scorpio, which had impressed many industry

observers and customers.

A year ago, within the first eight days of its launch, Scorpio had attracted over 10,000 customers

to its dealer showrooms and over 3,000 customer enquiries, resulting in 1000 order bookings.

According to company sources, by the time it completed its first birthday, Scorpio had sold

15,000 units across India.

Media reports, automobile enthusiasts and industry analysts had all given the SUV extremely

positive reports. With demand for the vehicle growing steadily, M&M even had to increase its

production from 1,800 units per month in 2002 to 2,000 per month in June 2003, and 2,500 per

month by late 2003.

Thanks to the high decibel advertising support, Scorpio had acquired high brand recall among

consumers. In fact, it was said to be one of the very few automobile brands in India that

successfully boosted the image of their parent companies (in this case M&M) as well.

H. Infrastructural Facilities:

The firm has good infrastructural facilities these are:

o It is situated in the main market place of the Bokaro Steel City.

o The showroom has good facilities such as Playing area for children who are

coming with the customers,

o Good servicing facilities for cars with advanced technologies,

o Good entertainment facilities available for customers who were wait during the

servicing of their car,

o The showroom uses new technology in their management information

system(MIS).

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SHREE HYUNDAI.

I. Achievement and Awards:

o Achieved the most car seller dealership in Jharkhand.

o Win the best car seller award in Bokaro from Chas Chamber of Commerce.

J. Work flow Model:

There are three broad processes at a showroom.

Pre-sales

Sales

Post –sales

All these are inter-related to each other.

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CUSTOMER APPROACH

MODEL

FEATURES

COLOUR

BOOKING OF CAR

PROCESSING OF ORDER

Order to Manufacturer

Supply of cars from Manufacturer

Delivery to ShowroomsWit in 5 days

DELIVERY OF ORDERS

Customer choose the payment option i.e., car finance or cash.

After all Documentation the car

is finally delivered to customer

SHREE HYUNDAI.

The pre-sales process is very important because if a customer has a satisfying experience during

this process, it greatly increases the chances of him purchasing the car from your showroom. At

this stage, the customer is indecisive as to which car to buy and from where to buy.

The pre-sales activities include:

Cold Calling and Identification of Prospects

Creation of Customer Card

Acquire Knowledge about MUL ‘s range of cars, competitor cars

Knowledge about other allied services like finance, insurance, pre owned cars, extended

warranty etc.

Knowledge about accessories, range offered, prices etc. and about preventive

maintenance of the car.

THE SALES ACTIVITIES INCLUDE:

Visit the prospects

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Walk in Enquiry Telephonic Enquiry

Product Demonstration

Test Drive

SHREE HYUNDAI.

Understanding needs of the prospects

Give a proposition to the customer.

Create interest and preference for MUL

Give a detailed demonstration and test drive

Provide clarification to queries and handle objections

Follow-up with the customer

Secure order from customer

Offer allied services like finance, insurance, accessories etc.

Advice customer on all matters related to his car.

In case there are too many Sales cases, a special focus is required to serve these customers

since ultimately, the customers are also the showroom’s customers and there are suggested ways

to handle them.

K. Future growth and prospects:

Shree Hyundai’s future growth is very bright because it is the newly growing firm in the

Bokaro market. It is the division of Ranju automobiles (Pvt.) Ltd. which is already a well

established Bajaj showroom in the Bokaro market. The customers of Bokaro is already

aware about the Ranju Automobile because this is the very old firm and dealership in

Jharkhand. Due to this customers are committed toward this dealership and due to this

customers do not go for any other showroom of Hyundai.

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SHREE HYUNDAI.

3. McKinsey’s 7S framework :

STRATEGY

Shree Hyundai’s marketing strategy is differentiated marketing.

Its primary consumer target is middle to upper income professionals who need true value

for their money and comfortable ride in city conditions. Its primary business target is

midsized to large sized corporates that want to help their managers and employees by

providing them a car for ease of transport.

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SHREE HYUNDAI.

Its secondary business target is entrepreneurs and small business owners who want to

provide discounts to managers buying a new car

STRUCTURE

Overall Structure of the Shree Hyundai:

SKILL

Shree Hyundai product is Passenger Cars, so they should be handled carefully. So it required

skilled manpower for handling, and skill in the sense testing of cars.

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Employee 1

Employee 2

Employee 3

Managing Director

Branch Manager and Manager ‘sales & marketing’

Corporate &Exchange , Hyundai Advantage

Pre-Owned Cars Finance Dept.

GDMS and Back Office

Accessories & Spares

Service Dept.

S.E. 1

S.E. 2

S.E. 3

S.E. 4

S.E. 5

S.E. 6

Sales Executives

Chief Executive Officer

S.E. 7

Team Leader,Sales

Employee 1

Employee 2

Employee 3

Service Employees 01 to 30

SHREE HYUNDAI.

Training will be conducted in Hyundai Jamshedpur (Jharkhand). For newly recruited employees

will be given basic training program for 10 weeks. And 10 weeks training will be given for

employees for junior technical officer, about machines. Training will be given to employees to

know about the total features of cars in Shree Hyundai.

STYLE

Top down Approach

The management acts with autonomy and independence in excercising strategic

supervision, discharging its fiduciary responsibilities, and in ensuring that the company observes

the highest standards of ethics, transparency and disclosure.

Participating Approach

At Shree Hyundai the management is participating in nature. Anyone in the company can

put in their view points before the management for any improvement in the prospects of the

company, manpower, working environment,etc….

SYSTEM

The marketing department is divided into 5 Teams. For all the different marketing teams, one

Team Leader is assigned. The team leaders take care of their team’s activities and report to the

marketing manager that is further reported to the CEO. The marketing is totally target based and

based on targets given by HMIL, the task is distributed to different teams.

The customers are handled by the same personnel from the beginning to the end. Spot incentive

Schemes etc is placed in the system to motivate the employees. The conversion and Target

fulfillment is traced out via the software.

STAFF

CATEGORY NO. OF STAFF TYPE OF WORK

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SHREE HYUNDAI.

Sales Consultants 10 Generate sales from market

Back Office 02 Maintain the data of customers

Finance Dept. 06 Maintain the financial data

Spares And Accessories 04 Maintain the data and Stock of

parts and spares

Corporate and Exchange 03 Deal in all the pre-owned cars

of Hyundai

Service Dept. 40 Servicing of cars and data

maintenance of Serviced cars

in service station of Shree

Hyundai.

EDP 06 Maintain Showroom data and

customers complaints, etc

DUTIES AND RESPONSIBILITIES OF STAFF

To report him/ her to duty at the place to which he/she posted.

To undergo the prescribed probation under specify period and undergo such training and

for a period has may be arranged for him/her and acquit him/her self creditably in the

training imported to him/her.

To obey and abide the rules, regulations, service conditions and standing orders which

the may adopt, prescribe, frame are issue from time to time to govern its employees.

SHARED VALUES

Review of Customer Care Activities.

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SHREE HYUNDAI.

The review of customer care activities is done through morning meetings and weekly meetings

on customer care. The documents that are necessary during the weekly review are: PSR related,

Internal SSI forms related,HMIL related and other information related.

Customers for Life

A week after the delivery, the concerned sales person must fix an appointment with the customer

and visit him along with the service advisor. He should personally hand over the photographs

clicked also the vehicle’s registration certificate and try to become the customer’s car advisor for

life and never lose touch with the customer.

Show Room Ambience

The hours of operation, outside and insides of the showroom along with reception, car display

area, selling area, customer lounge and delivery area should be taken care of.

Customer Meets

Organizing customer meets helps in improving SSI, helps in introducing the workshop staff to

the customers and in getting referrals and there are guidelines for the same.

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SHREE HYUNDAI.

4. SWOT ANALYSIS

STRENGTH:

Second largest manufacturer of Passenger vehicles in India due to this customers

are attracted towards the company in Bokaro..

Ranju Automobiles Pvt. Ltd. is very old firm in Bokaro due to this customers of

Bokaro area and its surroundings aware about this.

WEAKNESS:

SUV car has only two model i.e., TUCSON and TERRACAN which is fewer

available in India due to uneconomic and out of reach for middle class Families.

Manufacture only Passenger vehicles but some models are not economic such as

Verna, Accent, etc

OPPORTUNITY:

Shree Hyundai has opportunity to grow as a big competitor in Jharkhand

automobile sector.

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SHREE HYUNDAI.

If the cars are more economic then the sales will be more boom and the company

turn into first position in Indian automobile sector and win from their competitors

i.e., Maruti Suzuki, Tata Motors, GM and M&M.

THREATS:

Risk Factors

In the course of its business, Hyundai is exposed to a variety of market and

other risks including the effects of demand dynamics, commodity prices, currency

exchange rates, interest rates, as well as risk associated with financial issues,

hazard events and specific assets risk. Whenever possible, we use the instrument

of insurance to mitigate the risk.

Threats from Competitors

o Maruti Udyog Limited

Maruti Suzuki’s is also the old car showroom in Bokaro due to this

the competition is high with Shree hyundai

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SHREE HYUNDAI.

5. Analysis of Financial Summary

Particulars 2007-08

(in laces)

2008-09

(in laces)

Sales ( nos) 2070147 2621400

Growth in Sales (nos) (%) 23.4 26.6

Total Income 5997 7563

Growth in Total Income (%) 15.5 26.1

Profit before Tax 1072 1217

Profit after Tax 728 810

Share Capital 39.94 39.94

Reserves and Surplus 1099 1453

Total Debt 175 202

Net Fixed Assets 589 715

Total Assets(Net) 1314 1695

Market Capitalisation 9797 10943

Economic Value Added(EVA) 569 564

KEY RATIOS

Long Term Debt/Equity 0 0

OPBIT*/Net sales-% 16.8 15.7

OPBT**/Net Sales*(%) 15.6 14.6

Profit after tax/Total Income(%) 12.1 10.7

Return on Avg. Equity (%) 72.9 61.6

Return on Avg. Capital Employed(%)

92.8 80.9

EVA/Capital Employed(%) 49.3 37.5

26


SHREE HYUNDAI.

Dividend Per Share ( Rs) 20 20

Dividend Payout (%) 61.9 56.3

Earnings Per Share (Rs) 36.5 40.6

Market Value/Book Value 8.6 7.3

Particulars Corresponding nine months endedDecember 31, 2008

Year endedMarch 31, 2009(Audited)

No. of Four-wheelers Sold 1,935,981 2,621,400

Gross sales/ Income from operations

6,356.21 8596.81

Less: Excise duty 874.89 1,175.16

Net sales/ Incomefrom operations

5,481.32 7,421.65

Other income 105.27 141.03

Total Turnover 5,586.59 7,562.68

Total Expenditure 4,610.03 6,257.14

[A] {Increase}/ Decrease in stockin trade

(9.14) (14.95)

[B] Consumption ofraw materials

3,845.23 5,214.57

27


SHREE HYUNDAI.

[C] Staff cost 195.04 267.97

[D] Other expenditure 578.90 789.55

Interest (net) (0.65) (1.09)

Depreciation 63.03 89.38

Profit for theperiod before tax

914.18 1,217.25

Provision for tax - Current 297.11 395.22

- Deferred 13.71 11.56

Net profit (8-9) 603.36 810.47

Paid-up Equity Share Capital

39.94 39.94

Face value per equityshare (Rs.)

2.00 2.00

Reserves excluding revaluation reserve

1,453.44

Basic/diluted earningsper share

30.22 40.59

Aggregate of non-promoters shareholding

(Rs. 2.00 per share) (Rs. 2.00 per share)

Number of shares 89,945,570 89,945,570

28


SHREE HYUNDAI.

Percentage ofholding (to total holding)

45.04% 45.04%

Interpretation:

29


SHREE HYUNDAI.

6. LEARNING EXPERIENCE

There was a great opportunity for me to do my research work there. I was a part of many

promotional schemes in sales. Learnt about the automobile sector, company’s history, how they

promote the company, how to manage sales dept to get more sales, etc….

I started my research in the company and as well as I was looking at other works that was

allotted to me. The best learning experience was that I started from the very basics of getting the

overall idea.

This helped me get useful insight and understanding of various automotive products, the market

details about them and the benefits provided by them to the customers. Apart from the assigned

roles and responsibilities, the Branch manager facilitated me with a training which covers the

sales and permotional schemes of Shree Hyundai. and how they are arranging sales and how they

make strategies to increase sales, about their corporate culture, organizational structure.

I had a very pleasant learning their, I got to know about corporate and its working style of

different departments. The guide helps me to understand the customers in the Bokaro market. In

conclusion, I would like to state that by the experience of this training, the theoretical knowledge

has no meaning without the practical approach. Both theoretical and practical knowledge serves

as the two faces of the same coin. This learning experiences is valuable for me because I got a

opportunity to understand the market situations and customer values.

30


SHREE HYUNDAI.

31


vtu mba final summer project on hyundai part a

Documents

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