an organisation study at ifb industries ltd-engineering division, bangalore

An organisation study at IFB INDUSTRIES LTD-Engineering Division, Bangalore

INDIAN ACADEMY DEGREE COLLEGE

CHAPTER-1

INTRODUCTION

An Organization Study is an important part of our curriculum in this semester. This

organization study is aimed at observe the objectives and vision of the organization and

functioning of its various departments.

Internship tranning enables to get a practical and real time feel of various aspects concerned

with the organization to relate it to the concepts and theories studied so far.

This exercise would enable the future managers to face the challenges laying a head

with the permission and consent from the company management and our department co-

ordination I got an opportunity to undertake an organization studied in one of the tiles and

pavers manufacturing company. INDIAN FINE BANK (IFB) is a tool and appliances

manufacture in India. The main aim of IFB is to manufacture Fine blanked tools and press

tools with the help of advance and utmost efficient engineering technologies. Incorporated in

West Bengal and formed in 1974, IFB Industries Ltd. Started its journey with the cooperation

of Hienrich Schmid AG which is based in Switzerland.

The engineering units of IFB are based in Kolkata and Bangalore. IFB manufacture necessary

and important machine tools like strip loader, IFB produces expertly engineered and uniquely

designed appliances for the household.

Dishwashers, microwave ovens, chineys, refrigerators, water purifiers, built-in ovens and

hobs, washing machine, air conditions are the commonly know IFB application available in

the market. IFB also manufactures automotive product related to door systems, seating

system, and automotive motors. this company is also engaged in Agro industries.

OBJECTIVES OF THE STUDY:

The major object of the practical situation of business

To get exposed to the practical situations of business

To know how things work practically in corporate world

To learn to interact with various people in corporate

To understand the importance of logistics and operations in business



To know various details which are important in a company

LIMITATIONS OF THE STUDY:

1. Study is based on only three departments.

2. Time constraint.

3. Findings cannot be generalized to the entire industry.



CHAPTER-2

INDUSTRIAL PROFILE

The global washing machine market is poised to witness a surge in demand over the forecast

period. Technological advancements and an overall improvement in the living standards are

expected to drive the demand globally. These have become an essential part of everyday lives

of people. Its demand has been increasing globally due to the increasing availability of new

innovative models in the market and increasing purchase power across the consumer bases.

The consumer electronics industry is flooded with numerous leading electronics brands

presenting variety of models to choose from.

Washing machines are available ranging from normal stationary and domestic models to

more portable and stylish look models such as front loading, top loading, semi-automatic, and

fully automatic. New innovative machines are equipped with wireless Bluetooth technology

and a messaging feature that can receive operational assistance and control settings even

when the user is away from home. One of the key factors contributing to such growth is the

increasing need for energy efficiency. In addition, the introduction of smart washing machine

has led to an increase in demand throughout the market.

These appliances can be categorized according to its loading techniques into top loading and

front loading. They can also be classified into automatic and semi-automatic, wherein in the

latter, there are separate washers and dryers and the machine has to be operated manually to

an extent. However, such top loading and semi-automatic machines are becoming extinct due

to ease-of-operation in their fully-automated counterparts. These are extensively used in

commercial applications as well. These are used in rented Laundromat services and have a

huge market for it. In addition, they are required in hotels, hospitals, and hostels to address

their laundry requirements.

Smart washing machines have gradually started penetrating into the market. Leading players

have incorporated several sophisticated technologies in their washing machines in a bid to

differentiate their products from their competitors’ and consolidate their customer base.

Whirlpool Corporation’s smart washing machine connects via Wi-Fi and can be stopped or

started remotely. Moreover, it can be operated from a smart phone application, and is

programmed to text or email the user when its detergent is low or when the clothes are ready



to dry. LG Electronics’ dual-tub machine that allows users to do two loads of laundry

simultaneously. The features are aimed at maximum utilization of space and the economy of

time with one-dual load feature. In addition, the company claims that its Direct Drive motor

technology, which is directly attached to the washer’s drum results in the increase in

performance and durability. High cost of smart washing machines and government

regulations could pose a challenge to the industry growth.

Asia Pacific region has a strong presence of consumer appliances manufacturers, especially

in countries such as Japan, Korea, China, and Taiwan. This has resulted in availability of

such advanced appliances at relatively cheaper rates and has subsequently propelled the

demand in this region. North American countries such as Canada and the U.S. are

experiencing an upsurge in replacement activities for their semi-automatic types, fuealing the

demand in this region.

European nations are largely focused on creating a sustainable environment and are stressing

on using eco-friendly and energy-efficient products. Such advanced and low power-

consuming machines are experiencing high demand in this region. Washing machines display

an EU Energy Label with grades for energy-efficiency, performance, and spin-efficiency. All

appliances for sale must be performance rated A, which prevents manufacturers from

compromising on performance in order to improve the energy-efficiency. In addition, these

appliances in the U.S. are manufactured to be more energy- and water-efficient according to

the Federal standards and are certified by the more strict Energy Star standards.

Durable goods are those which don’t wear out quickly, yielding utility over time rather than

at once. Examples of consumer durable goods include electronic equipment, home

furnishings and fixtures, photographic equipment, leisure equipment and kitchen appliances.

They can be further classified as either white goods, such as refrigerators, washing machines

and air conditioners or brown goods such as blenders, cooking ranges and microwaves or

consumer electronics such as televisions and DVD players. Such big-ticket items typically

continue to be serviceable for three years at least and are characterized by long inter-purchase

times.



Performance

The Indian consumer durables segment can be divided into 3 consumer electronics groups:

White Goods Kitchen appliances Brown Consumer Electronics goods Air conditioners

Mixers Televisions Refrigerators Grinders Mobile phones Washing machines Microwave

ovens MP3 players Sewing machines Iron DVD players Speakers and audio Electric fans

VCD players equipments Cooking range Watches and clocks Chimneys Cleaning equipments

Other domestic appliances Performance India’s consumer durables market is riding the crest

of the country’s economic boom. Driven by a young population with access to disposable

incomes and easy finance options, the consumer market has been throwing up staggering

figures. The Indian durables market, with a market size of US$ 27.38 billion in2008-09, has

grown by 7.1% over the previous year.

Indian durables industry-segments Air conditioners 6% Audio/video equipments 12%

Components 7% Computer and peripherals 19% 1% 1% 6% Electric fans 1% 18% 12%

Industrial electrical and 1% electronics 5% 2% 7% Mobile phones 20% 3% 4% Other

domestic appliances 4% Others 3% 19% 20% Refrigerators 2% 5%1% Sewing machines 1%

Telecommunication 18% Washing machines 1% Watches and clocks 1%In the past 10 years,

the global market has witnessed a surge in demand as economies such as Brazil, Mexico,

India and China have opened up and begun rapid development, welcoming globalization with

élan. The consumer durables industry has always exhibited impressive growth despite strong

competition and constant price cutting, and the first contraction since the 2001 dot-com bust

has been due to the global recession. Given the strong correlation between demand for

durables (both new and replacements) and income, the industry naturally suffered during the

2008-2009 period. However, projections for current year going forward are very optimistic,

as consumers resume spending, and producers launch new enticing variants to grab new

customers.

The Indian consumer durables industry has witnessed a considerable change in the past

couple of years. Changing lifestyle, higher disposable income coupled with greater

affordability and a surge in advertising has been instrumental in bringing about a sea change

in the consumer behavior pattern. According to ba research report ―Booming Consumer

Electronics Market in India‖, with huge middle-class population and rapid economic growth,

India isone of the largest spenders in consumer electronics in Asia. How ever still the



consumer electronics goods, have low penetration in the country leaving vastroom for future

growth. The market is projected to grow at a CAGR of around15% during 2010-

2013.According to recent reports, the Indian consumer sector is attracting more interest from

both private equity (PE) and mergers and acquisitions (M&A).India ranks first in the Nielsen

Global Consumer Confidence survey released in January 2011. ―India is one of the fastest

growing markets in the world and the current consumer belief that recession would soon be a

thing of the past has filled Indians with confidence,‖ said Piyush Mathur, Managing Director,

South Asia, The Nielsen Co. With 131 index points, India ranked number one in there cent

round of the survey, followed by Philippines (120) and Norway (119)

Key industry participants include Electrolux AB, Haier Electronics Group Co. Ltd., IFB, LG

Electronics Inc., Samsung Electronics, Siemens AG, TCL Corp., Videocon Industries Ltd.,

and Whirlpool Corporation.



CHAPTER-2A

COMPANY PROFILE

Date of Establishment 12-09 1989

Revenue 224.199 ( USD in Millions ) ( year ending

Mar 2016)

Market Cap 14868.372 ( Rs. in Millions ) ( year ending

Mar 2016)

Corporate Address

No.16, 1st Main Visveswariah Industrial

Estate, off Whitefield Road, Mahadevapura,

Bangalore-560037

[email protected]



Management Details Chairperson - Bijon Nag

MD Bikram Nag

Directors

Sudip Banerjee,

Sangeeta Sumesh,

R Muralidhar,

Radharaman Bhattacharya,

Tridibesh Mukherjee,

RathindraNath

Prabir Chatterjee,

Sudam Maitra

Business Operation Consumer Durables - Domestic Appliances

Financials Total Income - Rs. 15142.5 Million

( year ending Mar 2016)

Net Profit Rs. 313.6 Million ( year ending Mar 2016)

Company Secretary G Ray Chowdhury

Bankers No Bankers Details in A.R

IFB Industries Limited is India’s leading home appliances and fine blanks producer. The

company was known as Indian Fine Blanks Ltd. It started operations in 1974 in collaboration

with Hienrich Schmid AG of Switzerland. The company got listed on the BSE in 2000.

Today, the company manufactures fine Blank components such as straighteners, Decoilers

and strip loaders as well as other engineering components, and home appliances such as

washing machines, dishwashers, microwaves, hobs, Chimneys and other cooking appliances.

Its manufacturing plants are located at Kolkata and Gangarampur (West Bengal), Select and

II has (Goa), Bhopal (Madhya Pradesh) and Bangalore. Its registered and corporate office is

located at Kolkata.



Established player in home appliances segment

IFB Industries Limited has an established market position in the home appliance segment.

The company manufactures home and kitchen appliances such as washing machines, washer

dryer, laundry dryer, Dishwasher, Microwave oven, hobs, chimneys and other cooking

appliances. In FY10, the home appliances segment contributed almost 82% of revenues.

The company also manufactures engineering products like fine blanked components, cushion

plate for seat recliners, K12 tongue for seat belt assembly, door latches, gear shift selector for

transmission, gear shifter for transmission, rotor segment for aircrafts, plate valve for

compressors, gears, etc for two-wheelers. Clients for its engineering products include Maruti

Suzuki, Ford India, Fiat India, Toyota Kirloskar Motors, Lucas.

TVS, Brakes India, Rane TRW, Bosch Chasis, TVS Motor Co, Yamaha Motorcycles, Honda

Motorcycles & Scooters India, Royal Enfield, Hero Honda, L&T, SKF, etc. In FY10, fine

blanks and engineering operations contributed 18% to total revenue in FY10.

Appliances

1. Front loading washing machines

A.R&D

B. Quality

C. Purchase

D. Manufacturing

Auto Components

2. Fine Blanking

A. Tooling

B. Design

C. Process Engineering

D. Quality & Manufacturing

E. Seat Mechanisms

F. Manufacturing & Quality

G. Window Lifter

H. Manufacturing & Quality



Business Segments:

(A) Home Appliances Division:

The home appliance division contributes around 81% of the total sales of the company with

sales of Rs. 1025 crores in FY15. Under this division, the company mainly produces Washing

Machines (both domestic and industrial) and Cloth Dryers. The company imports rest of the

products like Microwave Oven, Dishwasher, Kitchen Appliances, refrigerators, air

conditioners etc. from different vendors across the world. The sales in the home appliance

division have grown at a CAGR of around 16% over FY12-FY15.

Earlier the company was present only in the fully automatic front loading washing machine

category. Its fully automatic front loading model is now available in capacities ranging from

5.5-8 kgs. It has also launched top loading washing machines in the Indian market in the

capacity of 6.5-9.0 kgs. The appliances segment has its manufacturing facility in Goa for

front-loading washing machines (capacity of ~1.2mn units per year). The company also set

up a capacity of 150,000 units for making top-loading washing machines on a single-shift

basis in Q4FY15. The clothes dryers have total capacity to produce ~10,000 to 12,000 units

per annum.

IFB Senator Smart Touch and Senator Smart:

IFB Smart Loader Washing Machine is India’s first smart load IFB Smart Loader Washing

Machine. This smart front loading washing machine is smart in every sense of the word -

design, savings and washing. IFB Smart Loader Washing Machine has a 4-year 100% Super

warranty and 10 years of spare parts warranty with an excellent service network across India.

IFB Front Loading Washing Machines:

IFB's state-of-the-art Front Loading Washing Machines are equipped with user-friendly

features and unique programmes. IFB Front Loaders of 5.5-8 kg capacities operate with a

dominant market share of 50% in FY15. IFB is the only brand to give 4 Years 100% Super

warranty and 10 Years spares parts support that gives complete peace of mind with an

excellent service network across India. It is running its plant for this product at near full

utilisation.

IFB Top Loader Washing Machines



IFB Top Loaders epitomizes form and functionality with eye-pleasing designs and the

revolutionary Deep Clean, Aqua Energie, Aqua Spa Therapy, 3D and 4D Wash, Triadic

Pulsator and Crescent Moon Drum. The capacities range from 6.5 kg to 9.5 kg with

Intelligent Wash Programs. IFB Top Loaders come with a 2 year warranty and 10 years of

spare parts support with an outstanding service network across India. In the industrial

washing machines, IFB has a close to 35% market share in value terms

IFB Clothes Dryer

IFB Clothes Dryers are manufactured in India, IFB Clothes Dryers are competent for 100%

drying. Moreover, IFB Clothes Dryers come with a 4-year warranty and 10 years of spare

parts support apart from a world-class service network across the country. IFB has 80%

market share in India.

IFB Microwave Oven

IFB provides Microwave Ovens with a range of Solo, Grill, Convection and Rotisserie

Microwave Ovens. A 3-year warranty on Magnetron and Cavity means that one does not

have to worry about the most critical components in the microwave for a long time to come.

IFB is the third largest player with a market share of 18% in Q2FY16.

IFB Refrigerator

The new range of IFB Refrigerators are easy to mount and also complement the style and

decor of interiors. The LED Internal Lighting LCD Display and Touch Control only add to

the IFB Refrigerator’s user friendly features and sophistication. There is one year warranty on

the product and 5 years of warranty on the Compressor.

IFB Dishwasher

IFB dishwasher Design and functionality makes a perfect brand. With its Eco Wash feature,

It saves water and electricity bill. Take advantage of incredible features & technologies such

as Extra Hygiene 70°C, Eco Wash, Flexible Half Load, Adjustable Racks, Jet Wash, Steam

drying, water softening device and more. IFB has 50% market share in India

Water Purifier: Altech

With a depth of just 174 mm, the IFB Altech is the slimmest water purifier in its category. On

the inside, the 6- Stage Filtration with Reverse Osmosis (RO) membrane promises the purest,



safest and freshest water, every day. Altech aligns its quality standards to meet the highest

health and safety protocols set by the United States Food and Drug Administration (USFDA).

IFB Chimney:

IFB provides new range of IFB Chimneys which consume less power and are easier to

maintain. There is an Auto Start function and Booster Speed to remove fumes and odor. IFB

offers 5 years of Warranty on IFB kitchen Chimney.

IFB Built-in Hobs:

The new range of IFB Built-in Hobs command respect even from the most demanding

customers in terms of functionality and elegance. In Built in ovens, chimneys and Hobs, IFB

has a 5% market share.

IFB Modular Kitchen:

IFB Modular Kitchens provides excellent storage facilities that will help to put away pots and

pans and maintain a clean and uncluttered look for guests.

The market size in ACs stands at 3.5mn units and IFB aims to garner a 5%-7% market share

by FY17, which translates into sales volume of over 175,000 units from 43,995 units in

FY15.

The appliances division operates through 5 marketing channels i.e. Multi brand stores (65%

of sales), IFB exclusive stores (plan to reach 500 in the near future from 350 now) and

website (21% of sales), CSD, Defence canteen, Institutions (4% sales), Channel of dealers

who are also service providers (1% sales) and channel of distributors (9% sales)

IFB has 700 service franchisees across the country and 28 service training centres, 1 call

service centre at Goa (120 seater).

(B) Fine Blanking Division

The fine blanking division contributed around 19% of the sales of the company in FY15 with

sales of Rs 236 crores. The division is growing at a CAGR of around 17.5% over FY12-

FY15.



The fine blanking division of the company mainly caters to the automobiles industry - mainly

two wheelers and four wheeler segments. In the fine blanking division the company

manufactures components such as door latches,gate assembly for gear transmission, seat

recliners, gear shift selector, gears, cam plate assemblies, rotor segment for aircrafts,

sprockets etc. The division is planning to increase exposure to Electricals sector. The After

market division within the fine blanking is growing well (sales up 138% YoY in Q2FY16 to

Rs.5.97 cr). In Nov 2013, IFB entered the after market business of two wheeler motorcycle

chains and sprocket kits under the brand “Ultramiles”.

Clientele:

The key clients of the company in this business segments includes companies like Maruti

Suzuki, Fiat India, Ford India, Toyota Kirloskar Motors, TVS Motors, Honda Motorcycles,

Yamaha Motorcycles, Hero Motocorp Ltd., Royal Enfield, Scooters India, Lucas TVS,

Brakes India, Rane TWR, Bosch Chasis, Larsen & Toubro Ltd., SKF etc.

The IFB Group is a highly valued brand in West Bengal. Its founder, Bijon Nag, has over

four decades of industry experience in diverse sectors such as consumer durables, automotive

components and food and beverages.

Incorporated in 1986, IFB Agro has a presence in two business segments: alcohol and marine

products -contributing around 47% and 53% to the revenue, respectively in FY15. The

alcohol segment comprises extra neutral alcohol manufacturing and country liquor bottling,

while the marine division comprises trading prawn and fish feed, marine exports and

domestic retail. Incorporated in 1980, IFB Automotive manufactures auto components such

as recliners, sliders, window regulators, motor assemblies, and door beams. It has five

manufacturing plants, one each in Bangalore, Chennai, Pune, Haryana, and Uttaranchal.

The group co.’s are:

IFB Industries Ltd.

Engineering Division.

Home Appliances Division.

IFB venture Capital Ltd.



IFB Agro Ltd.

IFB Securities Ltd.

IFB Leasing and Financing Ltd.

IFB Subsidiaries

Subsidiaries IFB even ventured abroad by setting up European Fine Blanking Plant at

Wrekhan, Northern Wales, UK along with Heinrich Schmidt. As mentioned before

setup over two decades ago, IFB has moved beyond the world of Fine Blanking and

Tool making to machine tools, F.H.P Motors, Home appliances, automotive sub

assemblies and accessories and global training .

IFB Engineering Division

Fine Blanking

IFB is the Premier Fine Blanker in India having Fine Blanking Presses, rangingin size from

90 to 800 T. It has two manufacturing unit in Kolkata andBangalore. The 2nd unit Bangalore

was established in 1988. The company has total of nine (9) Fine Blanking Presses, capacity

range from 90T to 800T.

Machine Tools

The company’s potential in tool design promoted it to diversify into themanufacture and

supply of precision NC and CNC special purpose machinesused for coil processing.

IFB Home Appliances Division

The IFB brand offers fully automatic washing machines, Microwaves, Domesticand

Industrial dishwashers, clothes dryers. They have also recently launched fully built up

modular kitchens and kitchen equipments.

The IFB front loading design is based on German principles for both aesthetics as well as

mechanical and electronic configuration.

Having established the image of a high quality brand of fully automatic machines, the

company is to reach a wider section of buyers through an exhaustive dealer network spread

all over India and 12 other countries. The main washing machine production plant at Goa is

poised for a major expansion and modernization program to meet the growing demand.



IFB International Division

The company’s international business division has become a recognized Export House

dealing in not only IFBs own products but also third-party exports. The company’s customers

include Maruti Udyog, Ford India, Fiat India, Toyota Kirloskar Motors, Lucas TVS, Brakes

India, Autoliv India, Rane TRW, IFB Automotive, Germany’s Takata Petri, BorgWarner,

Avtec and Bosch chasis.

IFB Venture Capital Finance Ltd

The company was incorporated in 1992 with a view to achieve long term capital gains by

investing in ventures having an attractive potential for growth and earnings has since started

commercial activities. In view of the need for stronger capital base, the company went public

in March 1995 and was considerably oversubscribe, the allotment was made in May 1995.

IFB Agro Ltd

IFB Agro Industries Limited is a reputed Public Limited Company. The company has various

consumer oriented products both for domestic & export markets. The Corporate office is

situated at EM Bypass, Kolkata, West Bengal.

IFB Agro Industries Limited is a Public Limited Company, listed in the Indian Stock

Exchange. The company is one of the largest producer of alcohol in Eastern India, having 6

large captive bottling plants situated in Bengal, Orissa &North East. The company is also

engaged in the production of Carbon Dioxide Gas & processing of marine products for

Export as well as for the Indianmarket.

IFB Securities Ltd

The company has obtained the membership in both the wholesale and capital market

segments of the national stock exchange. In addition to the member ship of the O.T.C.E.I., it

has already commenced full-fledged commercial operations.

IFB Leasing and Financing Ltd

The increasing scope in money market operations prompted the company to venture into the

relatively newer areas of Foreign exchange Brokering &Merchant Banking activities in

addition to its existing line of activity in Hire, Purchase Financing & Leasing. The company



has branch offices at Bangalore, Mumbai, Delhi and Madras. Resource mobilization activities

have been stepped up substantially and public response to deposit mobilization has shown an

encouraging trend.

IFB Subsidiaries

IFB, in collaboration with Germany’s RHW and Sweden’s Electrolux, has twojoint venture

subsidiaries -- RHW India and RHW Autoliv India – to manufacture automotive seat

recliners or seating systems and safety equipments.

PRODUCTS AND ITS FEATURES

There are various types of product in its Home Appliances Division. They are.

Front loaded washing machine

Top loaded washing machine

Microwave oven

Dishwasher

100% clothes dryer

Washing care product

Front loaded washing machine

The different modal of front loaded washing machine

Digital 7 kg



CAPACITY 7KG of dry clothes

WEIGHT 74kg

SELECTOR BUTTONS Pre wash, soak, quick wash, intensive, water plus,

additional rines, rines hold, time dealy, start plus,

door open.

MOTOR RATING 500W max

DRU Stainless steel

POWER SUPPLY

220-240 v single phase 50hz

WARRANITY 48 months

Digital SX

CAPACITY 6 kg

TEMPERATURE Wash temperature selection cold to 95%c

SPIN SPEED SELECTION 1100/1000/900/800/700/600/500/ no spin rinse



hold

CORRECTIVE SYSTEM Auto restart /memory back up, imbalance load

sensing and correction, self diagnosis

COLOUR Silver

DOOR TRIM Chrome

WARRANTY 48 months

Senator DX

CAPACITY 6KG

CONTROL ELECTIVE

PROGRAMMES >100 WASH CARE PROGRAMMES

SPECIAL PROGRAMMES ECO, QUICK, DELICATES, WOOL HAND



WASH, SHARE , MIX,

DRUM STAINLESS STELL

TEMPERATURE 960C

COLOUR WHITE

WARRANTY 48 MONTHS

SENATOR

CAPACITY 6 KG

WEIGHT 78 KG

SELECTOR BUTTONS Eco , soak, water plus, rines hold

MOTOR RATING 690 watts max

DRUM Stainless stell

POWER SUPPLY 220-240 v single phase 50 hz

WARRANITY 48 months



DIGITAL 5.5 KG

CAPACITY 5.5 KG

DRUM Stainless stell

TUM Strengthned pp

CHILD LOCK Yes

USER INTERFACE 7 segment

SELECTION BUTTON Soak option, extra rinse options

WARRANITY 48 months

Wash care Products:

Protecta



Descal

Limo

Fabo

Autodish dish detergent

Autodish rinse aid

New launches

There are some more upcoming products in pipeline which are going to belaunched next year

by IFB. These new launches are:

Water Filter

Combo kit Washing Machine

Combo kit Dish Washer

Combo kit Microwave Oven

Dry sheet

Electrical & Plumbing

Small Appliances

Refrigerator

Washing machines

Washing machines and tumble dryers accounts for 3% of the electrical energy

usage in South African households. Due to the fact that most regions in South Africa has the

perfect weather conditions for drying laundry outside, the assumption was made that washing

machines accounts for 2% of the electrical energy usage of laundry, while tumble dryers

accounts for the remaining 1%.

The discussion of washing machines starts with a literature study which explains the main

components and operation of washing machines. After the literature study there is a

consumer profile that provides home owners with the most critical information about a few

washing machines with EU ratings. The third and second to last subsections provides the

results of the practically measured washing machines and the financial model respectively.

Last but not least, to summarize all the information and the results, the reader is provided

with a conclusion.



The main components of the top- and front-loading washing machines are as follows:

Front panel – The front panel serves as an interface, meaning that it provides the

user with certain information for example, is it a hot or

cold wash, what washing cycle will be used etc

Timer – The timer enables timed functioning, meaning that the timer can be used

to set the wash time manually.

Switches – The switches are used to select different functions and modes.

Water inlet and water inlet valve – The water that is used to wash and rinse the

laundry comes from the water inlet, in older washing machines there are two

inlets, one for cold water and one for hot water, but the newer models comes with

only a cold water inlet, so if hot water is required the washing machine will heat

the water. Near the water inlet there is a water inlet valve, the valve controls the

flow of water into the washing machine. The quantity of water that is allowed

into the washing machine is determined by pressure sensors. These sensors

determine the mass of the laundry and the quantity of water needed to wash the

laundry.



Water pump and hose connectors – The hose connectors connect the water from

the water inlet valve to the water pump, and the water pump circulates water

through the washing machine. The water pump works in two directions, meaning

that it re-circulates the water during the wash cycle and drains the water during the

spin cycle.

Inner and outer tub – For top-loading washing machines, the inner and outer

tubs are placed upright, as can be seen in the figure, and for front-loading washing

machines these tubs are placed horizontally. The laundry is washed, rinsed and

half dried in the inner tub. The inner tub has small holes in it, these holes are used

to drain the water from the inner tub into the outer tub, which is stationary. The

outer tub supports the inner tub and the water is drained from this tub by means of

the pump and drain pipe.

Agitator or rotating disc – Only top-loading washing machines has agitators or

rotating discs. The agitator or the rotating disc; depending on the model; rotates

continuously, this rotation is required to mix the laundry detergent, water and

laundry thoroughly in order to clean the laundry during the wash cycle, but it also

enables the drainage of the water during the rinse cycle. In front-loading washing

machines the inner tub rotates about a horizontal axis, which causes the laundry,

water and laundry detergent to mix.

Motor – The motor is connected to the agitator or the rotating disc (top-loading

washing machine) or the inner tub (front-loading washing machine), seeing that

these components cannot drive themselves. In other words, the motor rotates the

agitator or rotating disc (top-loading washing machines), or the inner tub (front

loading washing machines). These electric motors can reach high speeds very

quickly, to smoothen the acceleration, washing machines are provided with a

drive belt, as shown in the figure, or a clutch, similar to that of a car.

Drain pipe – The drain pipe is used to drain the water from the washing machine

after the wash and rinse cycles.

Power supply – The power supply supplies the electrical energy that is needed to

power the front panel, switches and motor.



How washing machines work

A washing machine washes and half dries laundry in three main cycles, they are:

Wash cycle – Water flows into the inner tub that already has the laundry and

laundry detergent in it. When the correct quantity of water has flown into the

inner tub, the motor starts to drive the agitator or rotating disc in a top-loading

washing machine, or the inner tub in a front-loading washing machine, this causes

the water, laundry and laundry detergent to mix. This process ensures that the

laundry is washed thoroughly. When the wash cycle is complete, the soapy water

flows to the outer tub and then the pump drains the outer tub as well, when this is

done the rinse cycle begins.

Rinse cycle – During the rinse cycle, clean water is once again pumped into the

inner tub, the motor starts to drive the agitator, rotating disc or inner tub and this

time all of the detergent particles that are trapped in the laundry is removed. On

completion of rinsing, the washing machine again drains out the water and the

spinning cycle begins.

Spinning cycle – During the spinning cycle, the agitator, rotating disc or inner tub

starts to turn once more to half dry the clothes, no water is added in this cycle.

FINE BLANKING

Fine Blanking, a precision mass production technique, is an unique development in the metal

forming industry, occurring over the last eight decades.

Its conception, although innovated from traditional metal stamping techniques, employs an

entirely different philosophy of machine movement, tooling and the plastic deformation of

metal.

Its achievement is the geometrical accuracy and close tolerance of metal cutting operations;

chip flowing like milling, grinding, shaving broaching etc; combined with the productivity of

metal stamping operations.

The fine blanking process presented for the first time in 1923 in Germany for production of

parts for watch and clock industry has undergone massive change over the years.



There have been several technological breakthroughs both in tool making and press

manufacture, most revolutionary is the development of Electro Wire Erosion Machine and

CNC Control Presses.

In today's scenario, fine blanking technology has created exclusive positions in automobile

industry for producing high precision parts for engine, door latch, window lifters, gearbox

etc.

The capability of the technology in producing 100% shear edge with extremely close

tolerance has been recognized even by other industries like switchgear, compressors,

motorcycles and scooters, aircraft and many others.

The modern fine blanking deploys a triple action press and a short

discussion of the process is as below :



(A) Tool in open condition along with strip ready to be cut.

(B) Bottom moves up and tools closed. Ring groove (Fr) and counter (Fg) forces

activated.

(C) Blanking Force (Fr) activated and material being out to produce part. Ring

Groove and Counter Force still remains active.

(D) Bottom moves down and tool in open condition.

(E) Ejector Force (Fe) activated. Strip and slug ejected.

(F) Part Ejected.

Fine Blanking Conventional Blanking

Edges are 100% sheared and bright over the

entire thickness.

Edges are sheared upto one-third of the

thickness the rest remaining fractured.

No deformation occurs in blanking even upto

a thickness of 14 mm, i.e. component remains

flat.

Components get dished in blanking, especially

with material above 1.5 mm thickness.

A wall thickness of 60% of the material

thickness can be achieved in the blank. Not possible.

Hole diameter of even 60% of the material

thickness can be pierced to close tolerances.

Practically impossible, especially in the case

of material thickness of over 1.5 mm.

Hardness of the sheared edges can be achieved

upto 150-200% over the original hardness, due

to work hardening. This gives better wear

resistance and avoids heat-treatment in some

cases.

Practically impossible.

Surface finish on sheared edges can be

achieved upto 0.8 microns CLA. Not possible.



Manufacturing and Desingn Facilities

The Company invests regularly to upgrade its infrastructure to maintain the

technology leadership.

All the Fine Blanking Presses are supported by an excellent uptodate tool room

infrastructure comprising of Jig Boring, Jig Grinding, CNC Cut Wire Machines,

Special Milling Machine for ring groove Machining, Metallurgy Microscope and

other Instruments.

The pool of Company's skilled engineers with specialization in tool design, tool

making and manufacturing systems are continuously upgraded through training

and exposure to customer needs in the field.

The Company engineers frequently visit the customers to solve their problems and

issues and participate jointly in reducing the PPM rate of the customers' end

product.

The tool design section is supported with a proper CAD Station and the design

engineers carry out proper analysis of the process and product through PFMEA a

When the occasion arises, company also carries out advanced stress analysis in the

computer to find solution to customer's field problem.

The Company also deploys high quality utilityservices, material handling system



and storage systems to ensure reliability in production systems and also achieve

high degree of productivity.

The Company also practices advanced workshop management systems for

continuous improvement and high degree of house keeping and cleanliness.

Quality

The Company has established modern test laboratory for checking various assemblies to

meet International Standards.



Fine Blanking material should have good cold deformation properties, i.e. higher strain

hardening sensitivity. Further, fine blanking demands material with a low elastic limit /

strength ratio of approximately 60% and high elongation.

For all practical purposes, there is no difficulty in fine blanking material with a carbon

content of less than 0.35% and a tensile strength of 40-60 kg/mm2 if it has high elongation. If

there is an increase in the percentage of carbon – over 0.35% - special care should be taken

about the microstructure of the material i.e. it should be fine grained, well-dispersed

spheriodised cementite. Carbon steel with a carbon percentage of upto 1% and alloyed steels

with a low carbon percentage can also be fine blanked after taking proper care of the material

microstructure. If these steels are to be made suitable for fine blanking, the sorbite / pearlite

content in the microstructure should be reduced to the minimum possible. Hot rolled strips

can also be fine blanked if properly close annealed and acid pickled.

Influence of grain structure on fineblanking components (sample steel C45)

Material A1

Material A2



Material B1

Material b2

Heat Treatment



IFB has built a reputation for professional high quality 'Fine Blanking' parts and

'Heat Treatment' services through the application of proven technology and

modern equipments.

IFB specialises in the heat treatment e.g. Austempering, carburising,

carbonitriding and through hardening of volume production components for the

automotive and general industry. Metallurgical consulting is also an important

function. IFB uses proven technology and modern equipment to achieve a high

level of product quality and furnace reliability. IFB utilises modern computer

controlled atmosphere furnaces with electronic data logging to ensure a

reproducible, high quality outcome.

IFB provides a wide range of performance enhancing processes particularly suited

to mass produced components. The team consists of well qualified experts

supported by highly motivated professionals in carrying out the precision

processes with 'First Time Quality'.

Applications



Product : Cushion Plate for Seat Recliners

Specification QStE 380 TM Steel,4mm thick

Product : K12 Tongue for Seat Belt Assembly

Specification C 60 Steel, 3mm thick

Product : Door Latches

Specification SCM 415 Steel, 4mm thick



Product : Gate Assy for Gear Transmission

Specification C 10 3mm thick

Product : Gear Shift Selector for Transmission

Specification Hot Rolled Low Carbon Steel, 6mm thick

Product : Gear Shift Interlock for Transmission

Specification QStE 420 TM , 10mm thick



Product : Gear Shifter for Transmission

Specification Hot Rolled Low Carbon,Steel 6mm thick

Product : Rotor Segment for Aircrafts

Specification Dunlop 127, 10mm thick

Product : Plate Valve for Compressors

Specification UNS G10150 , 3.5mm



Product : Face Comp Drive for Two Wheelers

Specification Cold Rolled Low Carbon Steel,4mm thick

Product : Gear for Two Wheelers

Specification 16MnCr5, 4mm thick

Product : Cam Plate Assy for Two Wheelers

Specification 15Cr3,4.5mm thick



Product : Sprocket 13T for Two Wheelers

Specification 16MnCr5 Steel, 7.2mm thick

Engineering capabilities

The objective is to achieve and sustain excellence in performance through use of appropriate

technology, cost efficient operations and teamwork of all associates. The Company's

continuous emphasis is to develop better ways to enhance productivity and make

manufacturing process more efficient. The Company has earned a very high reputation of

delivering high quality products. The infrastructure and assembly facilities provide "just in

time" delivery to customers.

The Management philosophies and goals are the clearly defined driving force. The Company

is committed in creating value through continuous knowledge sharing, participative

management and high transparent culture.



Research and Development

Evolving technologies in the auto industry worldwide force the component manufacturers to

offer a high level of technical skills. IFB Automotive’s R & D Centre constantly strives to

develop innovative products and stay abreast with the latest developments in the auto

industry.

IFB Automotive’s state of the art R & D Centre in Bangalore is fully equipped to accept

turnkey assignments ranging from developing new designs to conducting testing and

validation to meet the exacting demands of its global customers. Here concepts emerging out

of research in user needs translate into tomorrow’s innovative products.

IFB Automotive’s product design and development team consists of some of the most

experienced and visionary professionals in the country to meet the rapidly growing demands

from automobile manufacturers as well as end users for greater safety, longer life and more

cost-effective products.



The engineers at the IFB Automotive’s R & D Centre specialize in:

Conceptualisation

3D modelling

Finite Element Analysis (FEA)

Kinematic analysis

Crash analysis

Geometric dimensions and tolerance (GD & T)

Prototype making

Tools design and manufacture

Jigs and fixtures design and development.

The R & D Centre has the latest high-end workstations with high speed servers used for

modeling and analysis. Design software such as CATIA , UniGraphics, I-DEAS , PRO-E and

FORMING SUITE are used. Analysis is done on software such as ADAMS, LS-DYNA and

HYPER MESH. The centre follows the process of Advanced Product Quality Planning

(APQP) as per ISO/TS 16949.

In order to remain at the cutting edge of innovations, the R & D Centre constantly interacts

with leading research institutes such as Indian Institute of Science, Bangalore for materials,

Indian Institute of Technology, Chennai for mechanism simulation, AU-FRG, Chennai for

FEA and kinematics and CIPET, Chennai and Mysore for plastic materials and processing

techniques.



Global Testing Facilities

IFB Automotive believe that testing of products to national and international standards is

very vital, for conformance to quality, product development and; research and development’.

At IFB Automotive there is no compromise on quality for all its products. The components

and products are put through rigorous testing at all levels, which, includes structural, dynamic

life cycles, environment and metallurgical testing. Superior and sophisticated measuring and

recording instruments and gauges are used to facilitate the testing provision of the Company.

Company has set up the state of the art global standard testing and validation facilities, which

includes



Crash Teat Combined Environmental and

Vibration chamber

Performance and endurance testing systems for door regulators, automotive latches,

seat sliders, seat recliners and motors

Door slam test rig for latches and window regulators

Combined vibration and environmental chamber to test products at temperatures

ranging between –65 and +180 degrees Celsius, along with vibrations measuring 1000

kgf in humidity range of 10 - 95%

Seat anchorage test

Crash test

Quality policy / Processes

Quality ISO Certified Company brand, end user safety and total reliability for all stakeholders

associated with the company are at the core of IFB Automotive’s quality policy. High quality,

stable, cost-effective products manufactured through meticulous production planning,

production methodologies and production engineering adhere to company’s self-imposed

stringent product quality targets. The company’s superb quality assurance record exceeds the



international benchmark of 100 defective parts per million (PPM) shipped to OEMs and

targets the ambitious 0 defect goal in near future.

Customers

IFB Automotive believes that the most important issue for the customer is on time delivery

with technical service. The application engineers constantly are in touch with the customers'

development engineers from the incept of the project to ensure that proper design and process

are deployed to make the part of high quality standard. The focus of the application engineers

are not restricted to the parts supply, they even study the field problems along with the

customer engineers to unlock the hidden technical problems for finding innovative solutions.

At in house level, all the functional departments participate in the APQP process, along with

customer representative to ensure reliable solutions to customer's need of quality, cost and

performance of the relevant part.

Our Customers are all leading OEM’s and Tier 1 suppliers.

Customers are:

Maruti Udyog limited



Mahindra and Mahindra

Ford

Hyundai

Tata Motors

General Motors

Honda

Toyota



FIAT

BEHR India

Tata Johnson controls

Tata Toyo

Hanil Lear India private limited

Subros



Krishna Maruthi LTD.

BSl

TS Teach

Sanden Vikas

Company Aim / Vision /Mission

Vision To be the vehicle manufacturer’s first choice for safety and comfort related products

through innovation and quality excellence. Mission Our mission is to create and deliver high

quality and innovative products that will contribute to our customer’s success and deliver

value to our shareholders. We shall provide complete solutions through our system

capabilities in design, analysis, development, testing and validation. We are committed to

environmental preservation and social responsibility.

Consumer profile

The main goal of this project is energy saving in homes, thus the consumer profile will only

include front-loading washing machines, seeing that they consume much less electrical

energy than top-loading washing machines during warm wash cycles. The front-loading



washing machine consumer profile is shown in the table below. The first column is the

criteria column, the second column is the unit’s column and columns three to six are the top-

loading washing machine columns.

Top-Loading Washing Machine Consumer Profile

Criteria Unit Front-loading washing machines

Energy efficiency

class A+++ A+++ A+++ A+++

Spin drying efficiency

class D B B A

Weighted annual

electrical energy

consumption

kWh 165 204.6 275 314.6

Weighted annual

water consumption ℓ 10686 11560 13640 16940

Capacity Kg 7 8 9 12

Noise emission Db 58 54 52 57

Noise emission Db 74 74 75 75

Cost of electrical

energy per unit R 1.51 1.51 1.51 1.51

Weighted annual cost

of electrical energy R 249.15 308.95 415.25 475.05



Cost of washing

machine R 4400 7499 7799 10999

Typical lifecycle Y 10 10 10 10

Total lifecycle cost

(Excl. cost of water) R 6891.50 10588.50 11951.50 15749.50

All four top-loading washing machines have energy efficiency class ratings of “A+++”, but

due to the fact that they have different capacities, their weighted annual water consumptions

and thus their weighted annual electrical energy consumptions differ. It is important to

remember that the weighted annual energy consumption takes into consideration the

weighted electrical energy consumption, the weighted power in off-mode, weighted power in

the left-on mode, weighted program time and the total number of standard washing cycles per

year for the 60 °C cotton program at full load, meaning that this is the maximum electrical

energy that these washing machines will consume over 220 wash cycles under normal

circumstances. It is also important to remember that these washing machines generate their

own hot water.

Practical measurements

The practical measurements of two top-loading washing machines were taken and are shown

in the table below. The first column is the criteria column, the second column is the unit’s

column and columns three and four are the two top-load washing machines.

Practically Measured Top-Loading Washing Machines

Criteria Unit Washing machines

Measurements

Electrical energy consumption kWh 0.423 0.750



Frequency Hz 50 50

Cost of electrical energy per unit R 1.51 1.51

Annual cost of electrical energy (220

Three part cycles)

R 140.52 249.15

Cost of electrical energy per day R 0.38 0.68

Cost of electrical energy so far R 0.64 1.13

Measured time (1 Three part cycle) h 0.75 0.83

Electrical energy needed to heat water

Mass of water kg 60 113.5

Specific heat of water J/kg/F 4180 4180

Temperature difference F 40 40

Energy needed J 10032000 1897720

0

Electrical energy needed kWh 2.79 5.28

Total electrical energy required

Total electrical energy per three part

cycle

kWh 3.213 6.03

Total cost per three part cycle (Excl. R 4.85 9.11



Both of these washing machines are fairly new, but they do not have EU energy efficiency

labels. The first washing machine has a capacity of 8.2 kg and consumes 120 litres of water

when washing a full load, the second one has a capacity of 13 kg and consumes 227 litres of

water when washing a full load. Both of these washing machines receives hot water from the

hot water supply of the house and both make use of sensors that detects how much water is

needed.

For the practical measurements, the first washing machine was filled to its maximum capacity

and set to perform the normal, cold wash, rinse and spin cycles. The second washing

machine was also loaded to its maximum capacity and set to a complete a standard, medium

temperature wash, rinse and spin cycle. It is important to note that although the second

washing machine washed the laundry in medium temperature water, its electrical energy

consumption will be the same if the laundry was washed in cold water seeing that the

washing machine does not heat its own water.

To be able to compare the practically measured washing machines to those provided in the

consumer profile, the electrical energy used to heat the water will have to be calculated and

added to the electrical energy consumed to perform the three part wash cycle. The first

washing machine washed a full load of laundry, thus a total of 120 litres of water was used.

At least half of this water (60 litres) comes from the hot water supply. The second washing

machine also washed a full load of laundry, thus it used 227 litres of water and at least half of

this water (113.5 litres) comes from the hot water supply.

Due to the fact that the electrical energy usage of the washing machine varies a great deal in

the different cycles, only a few of the criteria provided by the measurement device was used

and the other criteria were calculated. The highlighted rows in the table above are the

practically measured criteria.

cost of water)

Total annual electrical energy

consumption

kWh 706.9 1326.6

Total annual cost (Excl. cost of water) R 1067.42 2003.17



From the measurements of the first washing machine it can be seen that it consumes 0.423

kWh during the three part cycle that takes 45 minutes. The electrical energy needed to heat

half of the water that is consumed in a typical full load three part cycle of the first washing

machine is 2.79 kWh, adding this to the electrical energy consumed by the motor and

multiplying it with 220

cycles, results in an annual electrical energy consumption of 706.9 kWh. The annual running

costs of the first washing machine, excluding the cost of water, is R1067.42. This cost would

increase slightly if the electrical energy consumption in the left-on-mode and left-of-mode is

included.

From the measurements of the second washing machine it can be seen that it consumes 0.750

kWh during the three part cycle that takes 50 minutes. The electrical energy needed to heat

half of the water that is consumed in a typical full load three part cycle of the second washing

machine is 5.28 kWh, adding this to the electrical energy consumed by the motor and

multiplying it with 220 cycles, results in an annual electrical energy consumption of 1326.6

kWh. The annual running costs of the second washing machine, excluding the cost of water,

is R2003.17. This cost would increase slightly if the electrical energy consumption in the

left-on-mode and left-of-mode is included.

Financial model

The financial model for the two measured washing machines is shown in the table below.

The first column is the criteria column, the second column is the unit’s column and the third

and fourth columns are the washing machine columns.

Washing Machine Financial Model

Criteria Unit Washing machines

Weighted annual electrical energy

consumption (Old washing machine)

kWh 706.9 1326.6

Weighted annual electrical energy

consumption (New washing machine)

kWh 204.6 314.6



Cost of electrical energy per unit R 1.51 1.51

Savings per year R 758.47 1528.12

Cost of new washing machine R 7499 10999

Payback period Y 9.89 7.2

In this financial model the 8.2 kg top-loading washing machine is replaced with the 8 kg

front-loading washing machine and the 13 kg top-loading washing machine is replaced with

the 12 kg front-loading washing machine. As can be seen from the financial model, the

payback period of the 8 kg front-loading washing machine is slightly shorter than ten years,

now seeing that the typical lifecycle of a washing machine is ten years, this would not be a

wise investment. On the other hand, the payback period of the 12 kg front-loading washing

machine is only 7.2 years, thus it would be a good investment if the older model is replaced

by the newer model.

Investment Rationale:

7th Pay Commission payout, One Rank One Pension and Direct Benefit transfer could

transfer a large amount to the consumers beginning 2016, a significant part of which can be

spent on Household/Electronic appliances. IFB could be one of the bigger beneficiaries of

this. From 2016, Seventh Central Pay Commission payouts, One Rank One Pension and

Direct Benefit Transfer could generate cash flow of Rs.6,000+ bn for India’s consumers (over

FY17-18), which alongwith the multiplier effect of at least 1.5x could lead to a minimum

additional spend of Rs.750000 cr. Payouts would drive urban consumption first, followed by

a secondary impact on Rural India. A good proportion of this can be spend on House hold

/Electronic appliances (apart from on Cars/Two Wheelers, Travel, Real estate, Education,

Textiles and Garmenting). IFB could be one of the bigger beneficiaries of this spend.

Incremental payout of from the Centre and States is 3.3x bigger than the Sixth CPC over

FY17-18. Ex-service personnel and their families would receive additional pay and arrears of

~Rs.28000 cr over FY17-18E. Incremental money of Rs.80000 cr will flow into the bank

accounts of aggrieved households as subsidy from the Central government over FY17-18E.



These additional cash flows will chase aspirational items while demand for basic items could

remain flat.

IFB Industries could see a benefit out of this additional spends due to its strong image in

certain regions/products.

Maintains growth in existing Home Appliances products:

Leader in front load washing machine:

IFB manufactures washing machines - both categories of domestic and industrial and cloth

dryers at its Goa manufacturing units, while rest of the products which the company sells like

microwave ovens, dishwashers (domestic and industrial), air conditions, refrigerators,

modular kitchens, kitchen appliance (hobs, cooker hoods and built in ovens) are all imported

from various quality vendors across the globe from various countries like China, Europe etc.

The total market size of front loading washing machine in India is around 7,00,000 to

7,50,000 units.

Tech Navio's analysts forecast the Washing Machine market in India will grow at a CAGR of

17% over the period2013-2018. IFB is a leading player in front load washing machine with a

market share of ~50% led by superior product quality and premium pricing than peers. IFB’s

revenue from the front loader segment grew 28% to Rs.7.3bn in FY15.

In the overall market – front and top load and all models, IFB has a market share of ~5% in

FY15, which has been steady for some time. LG, Samsung and Videocon are the three

leaders in the market. The washing machines market has been growing @14% CAGR in

terms of value over the past 5 years.

Till FY14, IFB was present only in front load washing machine. It used to trade in a small

way in top load washing machines. But it entered the top load washing machine

manufacturing in Feb 2015 at a capex of Rs.42 cr. This will make it possible for IFB to

capture a much higher market share in the overall washing machine market. IFB’s leadership

position in front-loading washing machines (with a market share of 50%) will help it leverage

the brand to gain a foothold in top loaders.



In the Top loaders range IFB is present in 6.5-9 kg capacity segments and is targeting a

market share of 15-20% in the first two years of launch. It reached volumes of close to 12000

in Sept 15 and is targeting to reach 16000 by end FY16.

In Q3FY16 IFB was to introduce a new range of high end designs and user interfaces with

extremely feature rich models for the customers to choose from.

In the washing machine segment the company competes with existing global leaders like LG,

Samsung etc. As the company introduces newer products in the markets it expects the share

of washing machine to gradually come down in coming years. Along with a strong product

profile, the pricing is lower than with its competitor, which helps the company to maintain its

leadership position. In most categories, a product pricing of IFB is better than of its peers. A

part of this, IFB is the company which offers 4 years of warranty on all SKU with the

availability of spare and parts, while most of its peers provide 1-2 years of warranties.

Manufacturing Contract with Panasonic could get bigger:

In order to utilize the surplus capacity available at its Goa plant, the company has over the

last few years commenced commercial supplies to Panasonic under an OEM arrangement.

This arrangement will help the company to utilize its surplus capacity which will help it to

improve operating leverage and expansion in operating margins. The scope of this contract

has been recently extended to 6 countries of Asia Pacific from 5 earlier. IFB anticipates

adding few more countries for its export business. Besides this, there is interest shown in top-

loading washing machines also. Gross margin will be lower in contract manufacturing than in

branded sales, but as the overheads are already covered, operating margin won’t be

significantly lower for IFB. Depending upon the performance, the tie-up with Panasonic can

be expanded to other products also. IFB sold 3,500 units to Panasonic in Q1FY16. It supplied

to three countries in Q4FY15, five countries in Q2FY16 (two added at the end of the quarter),

and will supply to six countries in Q2FY16. The scope for further contract manufacturing is

great considering Panasonic’s global sales from washing machines is at USD2.1bn

Contract manufacturing will lead to higher utilization, better operating leverage, and lead to

partial hedge given the high import intensity of the company’

Brand value extended by launching other home appliances which are now gaining

traction:



Apart from washing machine, the company has strong presence in the Microwave category

which account of 13% of Sales in FY15. IFB is third largest player with a market share of

around 18% (Q2FY16). Over the last 3-4 quarters, company has launched new innovative

product pipeline in the segment. IFB continues to run the industry largest microwave cooking

class programme under the brand:” Spice Secrets”. This teaches customers to optimize

microwave oven usage. Approx 150000 customers have attended this type of programme.

The new pipeline of products introduced in Q2 should strengthen the market share going

forward.

Dish-washers, clothes dryers and industrial segment (washing and laundry equipment)

product profiles are niche segments and IFB enjoys 80% market share in clothes dryer

segment and 50% in dish-washer segments. These categories can report a 50% CAGR for a

couple of years and have the potential to be revenue drivers in future as they develop in line

with the global trend.

We believe IFB could extend it brand lineage of front load washing machines to other

categories, given the growth opportunity in home appliances industry, company focus on

distribution expansion, new product addition, and increase share of manufacturing vs

outsourced and maintaining high service standards.

We are optimistic on the entire household appliances segment considering growth of nuclear

family, superior hygiene needs and difficulty in finding house helps. Brand recognition and

satisfaction helps in pushing sales of other products.

Fine Blanking:

Fine Banking segment is likely to show 20-25% revenue CAGR in FY14-FY18 with decent

profitability.

The fine blanking division of the company caters to the automobiles industry mainly two

wheelers and four wheeler segments. The division has grown at a CAGR of 17.5% over

FY12-FY15. In Q2FY16 the division reported a 19% (YoY) increase in sales at Rs 70.8

crores. PBIT margin stood at 8.2% v/s 6.8% (YoY) in Q2FY15. The growth was led by

increased business from the two wheelers segment. The fine blanking division expects to post

a 25%-30% revenue growth in FY16. Constant capital infusion is required in the fine



blanking division to support capacity expansion and revenue growth. However, as per the

company, at any given point, capex is not likely to exceed free cash flow generation of the

division.

IFB is also undertaking capacity expansion and up gradation in its engineering division to

cater to the growing orders from its customers, which will further boost manufacturing sales

in FY17. The total project cost is likely to be around Rs.43 cr, funded by internal accruals and

a term loan of Rs.30 cr. The capex is likely to be completed by March 2016.

Strong Clientele:

IFB’s fine blanking division is aggressively building a profitable order book and expanding

capacities. The revival of the 4-wheeler segment augurs well for the division. It is also

focusing on increasing the customer base, both in the auto and non-auto segments (like

Electricals) to take care of fluctuations in the demand scenario of automobiles. The key

clients of the company in this business segments includes companies like Maruti Suzuki, Fiat

India, Ford India, Toyota Kirloskar Motors, TVS Motors, Honda Motorcycles, Yamaha

Motorcycles, Hero Motocorp Ltd., Royal Enfield, Scooters India, Lucas TVS, Brakes India,

Rane TWR, Bosch Chasis, Larsen & Toubro Ltd., SKF etc.

Expanding distribution network and promoting IFB points:

The company has around 6500+ dealers across India and the company currently has a total of

650+ service franchisees and 2800+ service engineers across India. Currently, IFB has

around 340 IFB stores. Of this, 100 stores are Company Owned & Company Operated

(COCO) – that contributes 17-20% of sales and around 200+ are multibrand stores which

contribute around 65% to 70% of sales.

However, large rentals, poor choice of location and larger store size led to closure of many

IFB points in FY15 (53 stores). While, company is gradually right sizing the number of touch

points, it is also focused on expanding its network. Company plans to add 80-90 IFB points

(COCO) in metros, which will take its COCO network to about 100 by FY16.

Profitability and return ratios set to improve:



Debt reduction, benign Raw material cost, commencing production at Goa plant, cost

effectiveness efforts and a change in product mix could lead its margin growth going

forward.

In house manufacturing of plastic moulds for washing machines has led to a rise in the OPM

for IFB in FY15, which benefit could continue going forward.

Competitive Intensity:

The company operates in the home appliance industry which is a highly competitive and

partly unorganized industry. The company faces competition from both domestic and global

players in the different product categories in which it operates despite its superior product

quality and attractive product pricing. It may be difficult for the company to gain market

share in the new product segment/launches due to competition from other domestic and

global players such as Samsung, LG, Videocon, Whirlpool, etc who have wide distribution

reach, higher advertising spend and stronger brand positioning. Further the fact that IFB is

not present in semiautomatic Washing machines (which constitutes 44% of total market)

means that it will find it difficult to capture a sizeable market share of overall Washing

Machine market.

Fine blanking division depends a lot on Auto Industry:

The fine blanking division of the company supplies finished products to the automobiles

companies both to the 2w and 4w manufacturing companies. The rise in petrol & diesel

prices and high inflation has impacted the demand of bikes and cars adversely. Any

slowdown in auto sales can have an impact on the sales and profitability of the company.

However the company has now introduced products in the replacement market in the

automobile sector which is less cyclical business segment.

Volatility in currency movements:

The company imports all its products except for the front loading washing machine which

exposes the company to foreign exchange fluctuation risk in case of significant volatility in

exchange rate and rupee depreciation. Rupee depreciation could materially impact

profitability, as traded/outsourced components form about 40% of the raw materials and off

that, imported components is about 25-30%. Though the company started to hedge its forex

exposure from FY15, yet it is not totally insulated from the effects of Rupee weakening.



No Dividend payment over the last two decades:

There is no history of dividend payment over the last two decades to its share holder by IFB

despite profits earned in the past.

Dependency on specific region:

IFB has geographical concentration of revenue in Southern Region. Southern region forms

more than 50% of revenue of IFB.

Trading business results in lower margins: As much as 22% of its sales in FY15 came from

trading in appliances (outsourced). Though this has come down from 24% in FY14, it pulls

down the overall margins for the company.

Aggressive store addition, if they don’t perform as per expectations, could lead to impacting

profitability.

Q2FY16 results review:

Sales were up 18.5% YoY. OPM fell on a YoY basis due to higher raw material costs as a

result of Rupee weakening and also due to higher sales and marketing expenses. PBT fell also

due to lower depreciation in the previous year due to write back in that quarter. Capex of

Rs.13.6 cr was spent in the quarter in line with the annual plans. IFB has been focusing on

localizing its raw materials to insulate from forex fluctuations on imported raw materials.

Staff expenses were higher for enabling sales of new products and entering new regions. IFB

is hopeful of better margins in H2FY16. Fine Blanking sales grew 22.9% YoY.



CHAPTER-3

ORGANIZATIONAL STRUCTURE OF THE FACTORY

ORGANIZATION CHART

BORAD OF

DIRECTORS

CHAIRMAN

EXECUTIVE

DIRECTOR

Y. GENERAL MANGER

COMMERCIAL

MANGER-PERSONEL &

ADMINSTRATIVE

MANGER PRODUCTON

&MANINTANCE

MANGER PROJECT

SECURITY&VIGILANCE

DY.

MANAGER

STORE

MANGER-MARKETING

FINANCE MANAGER I/C

MANGER

DESIGN/Q.C/TRANSPOR

DY.

MANAGER

Q.C/TESTING

MANGER-PURCHASE/STORES

MANGING

DIRECTOR

ASST,

ENGINEER

MAINTENANCE

ASST. ENGINEER

Q.C/ TESING

ASST.ENGINEER

PRODUCTION



Before we study the organization structure of INDIAN FINE BANK (IFB) it will be better to

understand the meaning of organization and its importance and also the meaning of

organization structure. Organization, broadly means, the process of bringing together the

physical factors of an office i.e. men, machines and materials and to integrate them with the

functions of the management

PURPOSE OF ORGANISATION

In organisation we can do many types of work with collectively, because

every individual is expert in his field, the main purpose of this to earn maximum profit in

short time. The working process in organization is so fast other than who work separate

(synergy)..

It is of great importance for any enterprise or institution to have a sound organization

because it is the organization which productive result. Good organization can contribute

greatly to the continuity and success of the enterprise. Good management always

concentrates on organizing and directing the cooperative efforts of human beings so as to

achieve the best possible results. Organization is definitely the backbone of management

through which operations of on enterprise are run. A sound organization facilities

administration of any business enterprise, encourage growth and diversification and helps to

improve the operation of the business as a whole.

An organization structure establishes pattern of relationships among various components of

an organization. A planned organization structure outlines required functions, relates those

functions in a systematic fashion, and assigns authorities and degrees of responsibility. An

organization chart is a graphic representation of formal organization structure shows the

formal superior-sub-ordinate relationships.

He will be assisted by the managing director who in turn will be assisted by the executive

directors. The managing Directors is the over all in charge of the organization who is with the

responsibility of coordinating the different functions of various departments. Under the

general manager, manager, finance manager, deputy manager and company secretary.



The functions of the top management are:-

Determine objectives of the organization. Frame the policy to carry out the set objectives.

Determine the organization structure. To make arrangement for the resources of men,

machine, materials, money etc.

Executive Director is a responsible person who co-ordinates the function of various

departments. He is responsible for executing the policies and procedures laid down by the

Board of directors to rest of the organization. The officers who directly come under the

executive directors are production manager, marketing manager, personal &administration

manager and manger-security.

The company secretary also come under executive Director is responsible for complying with

the requirements of companies act, 1956 and to liaison with the Government Departments in

the matters of legal or official etc., conducting Board meeting, Boards sub-committee, filing

of monthly/ quarterly/ annual returns with registrar of companies, interaction with central and

state Government etc., all these functions comes under his preview.

The finance manager is the other Top Level manager who comes under the executive

Director. He is in charge of the overall finance and accounts and is assisted by manager-

finance, accounts officer and internal auditor.

Middle management consists of manager, Deputy Managers of various departments. This

level of management is responsible for implementing the policy and plans decide by the Top

management.

The Lower management consists of assistant engineer, charge men, foremen and senior

commercial superintends. Accounts officers, Labour welfare officer. The Executive of this

level are in direct touch with the rank and file of workers and will have to see that the work is

properly carried out. This level of management acts as an intermediary between the worker

and the top level management. As they will be in direct touch with the workers they try to

understand their views and bring the same in front of the top management and also they bring

the coordinating the efforts of various departments in the organization.

The workers look to him for orders, policies, guidance, and encouragement. The assistant

Engineer is responsible to plan the activities of his section, to assign jobs to the workers.



DEPARTMENTS IN INDIAN FINE BANK (IFB):

FINANCE/ACCOUNTS DEPARTMENT.

MARKETING DEPARTMENT.

PERSONNEL/ADMINISTRATION DEPARTMENT.

STORES DEPARTMENT.

QUALITY CONTROL DEPRTMENT.

DESIGN DEPARTMENT.

PRODUCTION DEPARTMENT.

FINANCE DEPARTMENT

INTRODUCTION

Finance is the study of how investors allocate their assets over time under conditions of

certainty and uncertainty. A key point in finance, which affects decisions, is the time value of

money, which states that a unit of currency today is worth more than the same unit of

currency tomorrow. Finance measures the risks vs. profits and gives an indication of whether

the investment is good or not.

According to Norman Hart (1993), “Marketing starts in the market place with the

identification of customer needs and wants. It then moves on to determining a means of

satisfying those needs and of promoting, selling and supplying a satisfaction.”

Marketing is "the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and

society at large.”

DEFINITION:

For the purpose of recording all the transaction of the company under appropriate head of

account a systematic way, taking in to account of mode of information that is required from

time to time, besides the statutory provision, a numeric set of account frame has been set both

financial and cost accounts.



Accounts department plays key role in the success, profitability, budget control, cash flow

management and other activities of it stated below:

Management accounting.

Budget analysis.

To discover sources of fund for the additional cash needs.

To maintain amicable relationship with creditors and bankers.

Monitoring and controlling cash flow.

Budget planning.

To keep a check on overheads.

FINANCE DEPARTMENT:

ACCOUNTS DEPARTMENT

The various divisions of the accounts department of the company are as follows:

ACCOUNTS DEPARTMENT:

1. COSTING SECTION.

2. BILLS PAYABLE SECTION.

3. BILLS RECIVABLE SECTION

FINANCE DEPARTMENT

DIRECTOR

GENERAL MANAGER

FINANCE MANAGER

ASSISTANT FINANCE

MANAGER

CLERKS AND STAFFS



4. PAY ROLL SECTION.

1. COSTING SECTION:

A fully fledged cost accounting followed in INDIAN FINE BANK (IFB) is batch costing, job

costing, component costing, standard costing, labor costing, materials costing and marginal

costing.

In batch and job costing system, cost is recorded in the cost sheets/cost cards under the

following elements of cost.

Labor and overheads.

Materials.

Sundry debtor’s charges.

2. BILLS PAYABLE SECTION:

This section deals with the purchase bill of the suppliers. According to the need of the

company, when the purchase department placed an order, the stores department will receive

the goods and it is entered in the good receipt note and invoice will be received.

On the basis of the invoice bills and other documents, a voucher will be prepared sent to the

cash section for the payment of the cash though the agreed mode of payment.

3. BILLS RECEIVABLE SECTION:

This section is responsible mainly for the preparation and submission of invoice to customers

for the suppliers made and service render and follow up for recovery of amount and

accounting for the same,

The following are the main functions of this section:

Scrutiny of sales order.

Preparation of invoice for work done/to be done and service rendered. Review of

close work orders for which invoice not been prepared

Recording of invoice rendered.

Compilation of sales tax returns and payment of sales tax.

Customs duty and excise duty.



Travel expenses.

Leave travel concession expenses.

Loan and advances register.

4. PAYMENT PROCEDURE:

Disbursement of salaries and wages.

Unpaid wages.

Remittance of amount recovered.

Annual bonus etc.

OTHER FUNCTIONAL AREAS:

Credit control.

Maintaining invoices.

Documentation.

Record keeping.

ACCOUNTING PROCEDURE:

Salaries and wages journal.

Travel expenses journal.

Leave travel concession expenditure journal.

MARKETING DEPARTMENT

The market

Meaning:

The concept of market is very important in marketing. Market is a group of buyers and sellers

interested in negotiating the terms of purchase/ sale of goods/services.

Marketing:



Marketing is an integrated system of action that creates value in goods through its creating of

from, place, time and ownership utilities.

“Marketing is economic process by means of which goods and service are exchanged and

their values determined in terms of money prices”.

Objective:

To market all segment of the state.

To make people to know about the reputation of company.

To consider immediate response to customer wants.

To increase target number of selling . annually.

Functions of Marketing Department:

They must make sure that the customer’sorders are filled correctly and on time.

They must check that customers have received proper instructions, training and receipt of

order from customers they issue work orders for manufacturing department.

Participation in tenders, execution of orders.

Contract review.

They handle customer’s complaint in an effective and speedy manner and see to it

satisfied with after sale service.

Dispatch of the . to the client

Approving and implementation of quality system procedure pertaining to the area.

Functions of Marketing Manager /Activities carried out

DY MANGER, Marketing:

Advertising: arrange release of advertisement in journals, magazines, etc., participate

in trade fairs etc. publication of booklets, pamphlets and literature.



Tender: Scan / gleam news for requirements of private customers, electricity boards

and industrial customers.

Query: Attend to queries from customer and offer technical guidelines.

Tender participation: Arrange to obtain tender documents from electricity boards,

etc. coordinate with design department to obtain material estimate, delivery schedule

etc.

Offers: After obtaining necessary approvals make out detailed, comprehensive offer

to the customer veering teach-commercial aspects.

Follow up: Attend tender opening, negotiations and follow up with the customer to

obtain orders.

PERSONNEL/ ADMINISTRATION DEPARTMENT:

General:

The personnel and administration department take care of all the policies rule and regulation

relation to various aspects of human resource management and is main tended to serve as a

basis for the effective and uniform implementation of these across the entire organization. In

other words it is just managing the people by personal policy.

indian fine bank is proud of the personal policy that was formed more than 5 decades ago

and updated very often. It provides various benefits to the employees. These are a common

head for personnel and administration department.

Human resource/ man power planning in indian fine bank :

To ensure that trained and qualified man power can be made available at the right time, right

place, to right person and reviewing the minimum qualification on the basis of future

requirements.

In indian fine bank (ifb) man power planning is done by the management and service

department’s human resource development is more future oriented and more concerned with

education than is employee training or assist a people to become a better performer.



Human resource department is a continuous process to ensure the development of employee’s

competencies, dynamism, motivation and effectiveness in a systematic and planned way:

salary structure of an officer:

PERFORMANCE APPRAISAL AND PROMOTION

Appraisal:

Every authority maintains an ACR (annual confidential report) of all his subordinates

with the performance recorded very often. It is kept highly confidential and is available only

to the senior authorities and personnel dept. During the time of performance appraisal

various positive factor and negative factor are discussed by the promotion committee. Rating

system is followed.

Promotion:

Every employee is eligible for promotion the criterion for promotion is time bound and

performance and merit based.

Training and Development:

Training and Development refer to the imparting of specific skill ability and

knowledge to an employee the objective of training are:

To continuously develop the competency and skill of its employee.

Training expertise available to enable the divisions to get their employees in that area

which they require.

To cover at least 1/3rd

of the total of the population of the company every year is

need based training programs.

Job rotation is being implemented its training in various areas.

Production

Quality management/ control

Computers.



Functional areas.

Interpersonal relationship

Communication skills and others

Labour union:

In INDIAN FINE BANK (IFB) only one union exists and it got recognition by the

management. INDIAN FINE BANK (IFB) Labour union follows the guidelines of trade

union act of India.

The employees elect their representatives.

Right of collective bargaining.

Trade union conflicts:

There are major two types of grievances:

Imaginary and actual. The trade union conflicts are settled at labour department, labour

councils. Only in case major disputes or failure of settlement by the former councils the

enquiry is handed over to labour court.

PERSONNEL DEPARTMENT

Functions:

1. The following are the major functions of the personnel and administration department

of INDIAN FINE BANK (IFB).

All personnel functions of organization.

Maintaining officers/employee personnel records.

Casual leave, privilege leave, sick leave etc.

Grievance handling.

Retirement benefit payment, gratuity, gift cheque etc.

2. Discussing with the management and taking guidance in personnel matters.



3. Extending benefits to employees as per memorandum of settlements entered between

management and labor union.

4. Extending promotions as per the settlement.

5. Maintaining of training records or arranging training as per ISO 9001, ISO 14001.

PERSONAL DEPARTMENT

STORES DEPARTMENT

Storages are used for functioning of receiving, storing issuing materials required for assembly

of . and proper maintenance of information regarding receipt, issue and issuing materials.

FUNCTIONS:

EXECUTIVE

DIRECTORS

DY.GENERAL MANAGER (c) PERSONAL AND

ADMINISTRATIVE I/C

SECTION SUPERIDENTS

CLERKS AND STAFFS

PERSONAL ADMINISTRATION DEPARTMENT



To preserve the materials in stores by using proper storage measure so that is no

wastage the process.

To materials proper records of total quality of material present, different type of

material and also the different specifications of items.

Efficient record maintenance.

1. Handling: Appropriate material handling equipment’s such as forklift, overhead cranes

and conveyers. Hand trolleys etc. shall be used for handling and storage of materials in stores

in various production shops.

2. Packaging: No special packing requirements are necessary for the product except that the .

shall be rigidly tied ropes in the time of dispatch.

3.Preservation: Conformity of material in stores and at different in process stages 1

preserved by appropriate methods for storage periodic checks of conditions as described in

the above paragraphs for finished products,nospecial storage condition are necessary as they

are meant for outdoor application.

OBJECTIVES

To define the procedure for preserving product conformity during internal processing and

delivery to the intended destination. It includes product identification, handling, packaging,

storage and protection. It also covering rising of purchase requisition and it applies to all raw

materials such as CRGO coils, Kraft paper, copper wire, brought out components like studs,

capital equipment’s, spare tools measuring instruments, in process items and finished

products.

Responsibility:

The personnel of stores, marketing, design, production and dispatch sections are responsible

for implementing this procedure

QUALITY CONTROL DEPARTMENT

The INDIAN FINE BANK (IFB) quality policy is to provide quality performance reliability,

safety and be sustained in the market’.



QC department is headed by the chief-quality assurance having the profession of B.E

graduated.

To ensure 100% quality & to reduce the defective product being further processed inspection

and testing at these stages.

1. Incoming material inspection

2. In process inspection

3. Final inspection of outgoing process

Objective

To lay down the procedure for receiving inspection and of materials/ product to verify

conformance to specified requirements and applies to all items procured by the company such

as raw materials, components, for production including outsource items.

Responsibility

A QC department is responsible for receiving inspection and testing of incoming

items as per applicable procedures and maintenance of records.

Stores purchase and user department is responsible for implementing and maintaining

this procedure.

Functions:

To control the activities connected with incoming material in process activities in the

production shops consisting of CSS, WDP and TPS II.

Ensuring implementation of quality system procedures. Identification and

implementation of timely corrective action in response to quality system audit.

Maintenance of applicable quality records and all computers related activities.



CHAPTER-4

SWOT ANALYSIS

This project helped to understand the manufacturing and automotive sector in

Bangalore, its market conditions as well as current trends in terms of strategies,

marketing policies, and consumer decision making.

It helped to understand the future growth prospects and expectations in the

market. Organisational study helped in understanding the INDIAN FINE BANK

(IFB).

Structure, work culture, products and services, technological advancements.

The experience at INDIAN FINE BANK (IFB).

Bangalore has really helped me to understand the process and corporate culture

that the organization has been carrying on for many years.

MC-Kensys 7s frame work helped me in studying the overall Chart of the

organization and helped me in company analysis and preparing swot analysis.

Categories : market analysis, cost analysis, financial report

Tag : business description, company history, financial history, key employees



Description : International demand can increase. The company faces a growth potential.

This SWOT Analysis of IFB Industries Ltd provides a strategic SWOT analysis of the

company's businesses and operations. This free SWOT analysis shows strengths, weaknesses,

opportunities and threats. This SWOT analysis of IFB Industries Ltd can provide a

competitive advantage.

This SWOT analysis contains 1000 data points.

Strengths

- Reduced labor costs

- Barriers of market entry

- High profitability and revenue

- Existing distribution and sales networks

- Main strength of IFB in Bangalore region is well known premium brand itself.

- IFB is already famous for premium category and mostly purchase by higher class people

and always well known for its premium category.

- IFB strength in Bangalore is its brand itself. Though it is a premium brand high class

people are mostly brand loyal of IFB

Weaknesses

High loan rates are possible

Opportunities

- Growth rates and profitability

- Growing demand



Threats

- Increasing rates of interest

- Price changes

- Financial capacity

- Rising cost of raw materials

- Growing competition and lower profitability

Financial and Strategic SWOT Analysis provides a comprehensive insight into the

company?s history, corporate strategy, business and financial structure, management and

operations. The report contains a detailed SWOT analysis, information on the company?s

products and services, key competitors, as well as detailed financial information.



CHAPTER-5

Findings, suggestions, conclusion

FINDINGS

IFB company should provide new offers, good models

IFB washing machines should be user friendly they should also provide new offers

not only for festivals but at least for one month soon after launching of new product

The company should concentrate upon technical advancement and customer care and

provide reasonably priced washing machine

There should be weekly billing so that sales could be evenly distributed in the entire

month

Area wise distribution Can minimize the cost to some extent

The collection from dealers should also he done at time to time and not at month

closing only

Stock from Bhopal should come till the second week of the month to distribute the

product evenly in the entire month

Products and its features are excellent but there should be some more promotional

activities like TV ads to promote the products and its features in market

Quality of products is good in dealers’ point of view

Dealers want the new kitchen equipment products to be promoted because there is

some demand from customers’ side

There should be some products which can target the rural segment because still India

has its major population in rural areas

SUGGESTION

Better scheme should be offered to retailers.

Quality of advertisements should be increased

Ties up with finance company

Offers and schemes should given to other times of the year also

Rate stability is very important

Restructuring of prices so that the middle class segment can be penetrated deeply.



CONCLUSION

There has been a change in the levels of aspiration across India and this is evident in the Tier II cities

as well. These cities are going for the completely automatic washing machines. The front loading

washing machines have gained a lot of popularity in the B and C category towns in the past 10 months

or so.

At present companies like LG, Videocon, Samsung, and Whirlpool occupy approximately 74.6

percent of the market. Companies like Onida and Godrej together occupy almost 6 to 8 percent of the

market.

Other companies such as IFB, Haier and Panasonic are also making their presence felt in this segment

in the last couple of years.

IFB washing machines are built with German technology and have features like Aqua Energie, a

device that makes it easier for detergents to operate and makes clothes softer. These washing

machines also use less water, electricity, and washing powders.

These machines have smart sensors that find out any imbalance during the spin and then correct it and

also make the least sound during extra insulation. They have shower and water jets in the paddles that

makes sure clothes are totally soaked.

These washing machines are ideally suited for small amounts of clothes that have been worn once and

have to be cleaned urgently. They also have protective facilities against rodents like rats.

This internship has been an excellent and rewarding experience. have been able to meet manager and

other subordinates and interacting with them surely will help me with opportunities in the future.

After completing the internship the important thing one should focus on is observation is a main

element to find out the company and self motivation , these things is not important only for internship

,it is important in daily activities also.

This conclusion of the internship can given as IFB is one of the fastest moving Brand of Today.

There are number of completing brands which has came into market, but still they are all are

unable to beat IFB because it has created trust worthiness in the “MIND OF PEOPLE” and

has became the “KING OF WASHING MACHINES IN THE MARKET”