nagender
TRANSCRIPT
SUMMER TRAINING PROJECT
ON
HERO CYCLES LTD
PRESENTED BY:
NAGENDER SINGH SHEKHAWAT
BICYCLE
A bicycle or cycle is pedal- driven, human powered vehicle with two wheels attached to a frame, one behind the other.
The basic shape and configuration not changed
Details improved-modern materials and CAD
INDIAN BICYCLE INDUSTRY
MAJOR PLAYERS IN INDIA IN BI-
CYCLE INDUSTRY HERO CYCLES ATLAS AVON TI
LOCAL PLAYERS OPERATING IN PUNJAB
S.K BYKES RAJA CYCLE SUN CROSS EVERBEST TOP TRACK
HERO GROUP
Hero Group ranks amongst the Top 10 Indian Business Houses
Started in 1944, started business of bicycle spare parts in Amritsar.
By 1956, began to assemble the entire cycle at
their manufacturing plant in Ludhiana. In the early days, the plant had a capacity for
25 cycles per day and now it is about 18,000 per day.
Hero Cycles Limited
Hero Honda Motors Limited
Hero Cold Rolling Division
Hero Motors Limited
Hero Exports
Majestic Auto Limited
Rockman Cycle Industries
Highway Cycle Industries
Sunbeam Auto Limited
Munjal Auto Industries Limited
Munjal Showa Limited
Munjal Castings
Munjal Auto Components
Hero Global Design
Hero Corporate Services Limited
Hero ITES
Hero Mind mine
Hero Soft
Munjal e-systems
Easy Bill Limited.
HERO CYCLES
Type Public Ltd company
Founded 1956 Headquarters Ludhiana Industry Bicycles
MISSION OF HERO CYCLES
Continuously striving for synergy between technology, systems and human resources to provide products and services that meet the quality, performance, and price aspirations of the customers.
QUALITY POLICY
“Hero cycle limited shall have to stay in Global mainstream by continually innovating products and services and instutionilizing its efforts for Quality and Productivity improvement
Through
Effective leadership, Human Excellence, Technological up gradation, Appropriate work environment and ensuring compliance to applicable regulatory requirements
Thereby
Enhancing the Customer confidence.”
SWOT ANALYSIS
STRENGTHS – Management with vision Good corporate image Location advantage Strong brand image Good customer base Good infrastructure facilities
WEAKNESSES –Packaging material not of the required
standardsDamages during transportations
OPPORTUNITIES –Growth in auto sectorRising economic standards in states like UP.Growth in economic structure will put
company in driving seat(E-bikes).Increase in demand of kids cycles.
THREATS –Local / non branded
manufacturers of cycle parts.Chinese cycles entering in INDIA
in big way.Motor bike industry is damaging
business.
FINANCIAL ANALYSIS
Current ratio = (Current Assets / Current Liabilities)
2006-2007 2007-2008 2008-2009
Current Assets
3,514,169,012 4,078,120,805 4,500,174,202
Current Liabilities
2,174,339,220 2,117,280,044 1,897,907,454
Current Ratio
1.61 1.92 2.37
FINANCIAL ANALYSIS
Cash Ratio= Absolute Liquid Assets / Current Liabilities
2006-2007 2007-2008 2008-2009
Absolute Liquid Assets
22,134,657 151,600,603 1,52,820,715
Current Liabilities 2,174,339,220 2,117,280,044 1,897,907,454
Cash Ratios 0.0101 0.0716 0.0805
FINANCIAL ANALYSIS
Working Capital = Net Sales /
Turnover Ratio Net Working Capital
2006-2007 2007-2008 2008-2009
Net Sales 13,308,705,116
12,850,038,969
14,901,978,247
Net Working Capital
1,339,829,792 1,960,840,761 2,602,266,748
Working Capital Turnover Ratio
9.93 6.55 5.73
FINANCIAL ANALYSIS
Average Collection Period of Debts = Days in the year/ Debtor’s Turnover Ratio
Years 2007 2008 2009
Days in the year
365 365 365
Inv. Turnover Ratio
14.92 11.96 13.65
Inv. Conversion Period
25 days 31 days 27 days
FINANCIAL ANALYSIS
Inventory Conversion Period= Days in the year/
Inventory Turnover Ratio
Years 2007 2008 2009
No. of Days in the Year
365 365 365
Debtor’s Turnover Ratio
6.51 6.12 6.81
Average Collection Period of Debts
56 days 59 days 54 days
FINANCIAL ANALYSIS
Gross Profit Ratio=( Gross Profit/ *100
Net Sales)
Year 2007 2008 2009
Gross Profit 1,575,635,349
1,412,590,733
2,036,019,569
Net Sales 13,308,705,116
12,850,038,969
14,901,978,247
Gross Profit Ratio
11.83 10.99 13.66
FINANCIAL ANALYSIS
Net Profit Ratio= (Net Profit After Tax /
Net Sales )*100
Years 2007 2008 2009
Net Profit 1,006,668,276 675,309,685 576,997,711
Net Sales 13,308,705,116 12,850,038,969 14,901,978,247
Net Profit Ratio 7.56 5.25 3.87
TITLE OF RESEARCH
A study on dealer’s perception
on cycle industry in Punjab
NEED OF STUDYDealers- drivers of businessTo know the dealer’s satisfaction
towards Hero Cycles Ltd.The study would give ideas in terms
of the expectations of dealers and their suggestions for better business.
The study would also suffice a comparative study of major cycle brands.
OBJECTIVES
To know cycle brands dealt with by dealers along with the market share of major brands.
To find the factors of satisfaction and dissatisfaction regarding major players in cycle industry
To find the market leader of cycle industry .
To identity the dealers’ suggestions and expectations with respect to the cycle industry
.
RESEARCH METHODOLOGY
DESIGN- DescriptivePOPULATION- Bicycle dealers in PunjabSAMLPING UNIT- Each dealer who has filled
the questionnaire is the sampling unit.SAMPLING TECHNIQUE -Non probability
convenient sampling DATA COLLECTION –
PRIMARY DATA
SECODARY DATA
LIMITATIONS IN RESEARCH
AREA RESTRICTION
SAMPLE SIZE
MINDSET OF DEALERS WHILE SHARING INFORMATION
SHOP INCHARGE MAY NOT BE THE OWNER
EXPERIENCE IN DEALERSHIP
less than 1 yr
1-3 yrs 3-5 yrs more 5 yrs
0
20
40
60
80
100
120
0 0 0
100
YEARS
PERCENTAGE
OF
DEALERS
No fresh entrants in form of dealers
AUTHORIZED DEALERSHIP OF VARIOUS COMPANIES
Hero cycles tops the no of authorized delaers
Others are the least in this line
Avon
Hero
Atlas TI
Other
s0
20
40
60
80
100
120
59.52
100
66.67
40.48
19.05
Percentage
of
dealers
DEALING OF CYCLES OF VARIOUS COMPANIES BY DEALERS
All dealers sell Hero cycles
Local brands are highly sold after Hero brand
Avon
Hero
Atlas TI
Other
s0
20
40
60
80
100
120
65.12
100
72.09
48.84
90.7percentage
of
dealers
TOTAL PERCENTAGE SALES(MONTHLY) BREAKAGE FOR VARIOUS CYCLE BRANDS
52.92
8.49
15.28
8.52
14.79
Hero Atlas Avon TI
OTHERS
CYCLE BRAND RECOMMENDED TO CUSTOMER BY DEALERS
Avon Hero Atlas TI Others ALL/NONE
0
20
40
60
80
100
120
0 0 02.33
0
97.67
Percentage
of
dealers
CYCLE BRAND HAVING MAXIMUM COMPLAINTS
Hero Atlas Avon TI Others NONE0
5
10
15
20
25
30
35
40
45
50
30.23
34.88
37.21
25.58
44.19
25.58
Percentage
of
dealers
COMPLAINT HANDLING ABILITY OF VARIOUS CYCLE COMPANIES
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.61.47
0.03
0.24 0.270.42
AVERAGE
RATING
2=HIGHLY SATISFIED
1=SATISFIED
0=AVERAGE
-1=DISSATISFIED
-2=HIGHLY DISSATISFIED
PROMPTNESS OF CYCLE COMPANIES TO RESPOND TO REQUESTS/ENQUIRIES OF DEALERS
Hero
Atla
s
Avon TI
Other
s0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.19
0.43 0.38 0.41
0.54
AVERAGE RATING
2=HIGHLY SATISFIED
1=SATISFIED
0=AVERAGE
-1=DISSATISFIED
-2=HIGHLY DISSATISFIED
PRICE JUSTIFIABILITY OF CYCLE COMPANIES ACCORDING TO DEALERS
Hero Atlas Avon TI Others0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
0.58
0.280.34 0.36
0.89
AVERAGE RATING
2=HIGHLY SATISFIED
1=SATISFIED
0=AVERAGE
-1=DISSATISFIED
-2=HIGHLY DISSATISFIED
REQUIREMENT OF TRAINING TO HANDLE HIGH-END CYCLE’S PROBLEMS
OPTIONS NO OF RESPONSES PERCENTAGEYES 40 93NO 3 7
Few dealers say that training should be given frequently Few say that once given, it can be spread to other
mechanics But all agree that they require training.
FACTORS CONSIDERED TO BECOME DEALER OF A CYCLE COMPANY
Quality Schemes Company Policy
Margin Others0
20
40
60
80
100
120
78.57
50
64.29
100
0
Percentage
of
dealers
COMPANIES DOING PROMOTIONAL ACTIVITIES ACCORDING TO DEALERS
Avon Atlas Hero TI Others None0
5
10
15
20
25
30
35
40
45
50
16.28
20.93
39.53
11.6313.95
46.51Percentage
of
dealers
COMPANIES EXPECTED TO GET ADDITIONAL MARKET SHARE IN FUTURE ACC. TO DEALERS
Hero Atlas Avon TI Others0
10
20
30
40
50
60
70
80
74.42
02.33
16.28
25.58
PERCENTAGE
FINDINGS AND RESULTS
No fresh entries in form of dealers in the cycle industry
Dealers also deal with other companies apart from Hero cycles
Many dealers feel that there is need of more promotion
Most of the dealers are satisfied the most from Hero as compared to other brands
FINDINGS AND RESULTS
Other brands are growing rapidly even though their authorized dealership is very less
Avon is performing better than Atlas in terms of sales even with less no of dealers
Dealers are mostly not satisfied by the margin and bonuses which they get
The high end cycles need specially trained mechanics to solve the problems
SUGGESTIONSNeed of better promotional
activities and margin
Complaint handling ability should be maintained
Company should not lose its quality standards at any cost
Promotional activities of different kinds.
Contd..
Proper trainingFeedback from dealersInspectionDifferent advertisement like T
shirtsTake care while packing ,loading
and unloadingAttractive color schemes