Study of selected Distribution Channels of Ralco Cycle Tyres and

Tubes

INTRODUCTION TO RALSON INDIA LTD

History :-Ralson India Ltd is pioneer of the tyre and tube company based at Ludhiana.

The company was floated by Shri Sant Prakash Pahwa and Shri Om Prakash Pahwa.

It is India’s largest company in the field of automobile tyres

Product Mix:-Tyres TubesHubs

Sister Concerns

Ram Lubhhaya and Sons Ltd

Priya Machines

Ralco Enterprises Pvt Ltd

Ralco Exports

Brands of Ralson

Ralson

Ralco

Awards and Certifications

Capexil Award

Decathlon Award

ISO 9001 Certified company

Additional Qualities of Ralson Group

R&D Department of this company is the only one of its kind

in Tyre industry

It is recoganized by Department of Science and

technology, govt of India.

Organization Chart of the CompanyChaiman (Mr Sanjeev Pahwa)

Senior V.P. Materials

(Mr Darshan Kumar)

V.P. Marketing (

Mr G.S. Passi)

V.P. Accounting

(Mr A.K Sareen)

V.P.Works ( Mr N.P. Gupta)

V.P. Tax ( Mr

Hoshiar Singh)

G.M. {HRD}( Mr

V.K Khurana)

Chairman ( Mr Sanjeev Pahwa)

Vice President (Mr G.S.Passi)

Publicity Manager (Mr Yogeshwar Sharma)

Deputy General Manager (Mr Karanjit Singh)

Senior Sales Manager(Mr Dutta Rai)

Sales Manager (Mrs Rajinder Kaur)

Sales officers

SWOT ANALYSIS OF TRAINING UNIT

STRENGTHS :- Company has highest production base, it produces 1lakh tyres,

1 .5 lakh tubes, 20000 hubs every day. Ralson tyres have highest sales in the market inspite of highest prices. Company has best R&D department recoganized by GOI Weaknesses:- Lack of Advertisement. Lack of Market Research Oppurtunities:- It has huge untapped demand for Ralco Tyres in the

domestic market. It has huge oppurtunities in other segment of auto tyres. Threat :- The labor comes from Bihar, thus company faces acute

shortage of labor Increase in the prices of Raw material -Rubber

Financial Ratios

CURRENT RATIO 2007-08 2008-09

1.42:1 1.46:1

CURRENT RATIOS :-- CURRENT ASSETS/CURRENT LIABILITIES

LIQUID ASSET RATIO

2007-08 2008-09

0.93/1 1.05/1

LIQUID ASSET RATIO :- LIQUID ASSETS/ CURRENT LIABILITIES

ABSOLUTE LIQUID ASSET RATIO:- ABSOLUTE LIQUID ASSETS/CURRENT LIABILITIES

ABSOLUTE LIQID ASSET RATIO

2007-08 2008-09

0.03:1 0.14:1

DEBT EQUITY RATIO :- TOTAL OUTSIDERS FUND/ SHAREHOLDERS FUND

DEBT EQUITY RATIO 2007-08 2008-09

1.64:1 1.48:1

EPS = NET PROFIT(AFTER TAX)/ NO OF EQUITY SHARES

Year EPS Trend

2004 4 100

2005 13.59 339.75

2006 4.13 103.25

2007 1.34 33.5

2008 13.28 332

2009 26.34 658.5

2004 2005 2006 2007 2008 20090

100

200

300

400

500

600

700

800

Earning Per Share

TrendEPS

EPS

Introduction to Distribution Channels Of Ralson

DISTRIBUTION CHANNELBRANC

H NETWORKS

OEM EXPORT CONSIGNE AGENTS

Branch Networks

BRANCH MAINDEALERS

SUBDEALERS

OEMPRODUCER

ORIGINAL EQUIPMENT MANUFATURERS

Consigne Agents

PRODUCER CONSIGNE AGENT MAIN DEALER

Title of the Research Project.

A STUDY OF SELECTED DISTRIBUTION CHANNELS OF RALCO CYCLE TYRES AND TUBES.OBJECTIVES:1) To study satisfaction level of DEALERS and OEM’S in context

with certain attributes, who are dealing with the company for more than one year.

2) To know the problems faced by the Dealers and OEM’s

Research Methodology

Research Design :- Frame work or blueprint for conducting the research project.

R esearch design employed – Descriptive Research design for studying the market characteristics.

Data collcetion Method :- Questionnaire and Schedule. Sampling plan :- Feasible way to collect Market Research Data. Population :- Dealers of the following areas:- Ludhiana MogaSidharRaikotJagraon Ahmedgarh

Sampling Frame : List of all dealers of these areas. Universe : List of all dealers of Punjab, and OEM’S of

Ludhiana. Sample Size : 50 Dealers, 4 OEM’S. Sampling Technique :- Convenience Sampling of Location.

Need of Study

As Distribution channel plays a crucial role in having worthy market position and goodwill, so this project was chosen.Benefit to the Dealer and Oem:- It would help them to have the product according to the expectations.Benefit to the Company :- It will help the company to know thw factors which need improvement inorder to satisfy the dealers to a greater extent.

Data Analysis And InterpretationFig 4.1 Status of Dealership of Dealers(Percentage wise).

66%

34%

Chart Title

NO OF WHOLESALERS NO OF RETAILERS

Fig 4.2 Name of Brands dealt by the Dealers.

HINDUSTAN RALCO INTERNATIONAL METRO BEDROCK

10

50

39

26

6

20

100

78

52

12

Brands dealt by the dealersRESPONSE OF THE DEALERS PERCENTAGE

Fig 4.3(a) Ranking of Brands by Dealers

1 2 3 4 5

1

46

20 19

Ranking of HindustanNo of dealers giving this rank

Fig 4.3 (b)

1 2 3 4 5

25

18

5

2

0

Ranking of RalcoNo of dealers giving this rank

Fig 4.3(c)

1 2 3 4 5

14

17

11

5

3

Ranking of MetroNo of dealers giving this rank

Fig 4.3(d)

1 2 3 4 5

109

21

8

2

Ranking of InternationalNo of dealers giving this rank

Fig 4.3(e)

1 2 3 4 5

02

7

15

26

Ranking of BedrockNo of dealers giving this rank

Cumulative Ranking of all brands together.

HINDUSTAN RALCO METRO INTERNATIONAL BEDROCK

202

84

116

133

215

Ranking of Brands by dealers

Fig 4.4 No of years of association of dealers with Ralco

1 YR 2 YRS 3 YRS 4 YRS 5 YRS MOREA B C D E F

15

1 25

36

2

10

2 410

72

No of years of association of dealers with Ralco

No of Dealers PERCENTAGE

Fig 4.5Means of communication used by the Dealers for placing

order.

A)THROUGH SALES REP

B)TELEPHONE

C)PERSONAL VISIT

D)ANY OTHER

21

13

3

13

42

26

6

26

Means of communication used by dealersPERCENTAGE No of Dealers

Fig 4.6(a) Major segmenr of Ralco tyres dealt by the Dealers.

2%

8%

34%56%

Major Segment of Ralco tyres dealt by the dealers

A)SHORT TYRESB) SEMI HEAVY DUTY TYRESC)HEAVY DUTY NYLON TYRESD)COTTON TYRES

Fig 4.6(b) Major Segment of Tubes Dealt by the Dealers.

68%

32%

Major Segment of tubes dealt by the dealers NO OF DEALERS

A) JOINTED TUBES B) MOULDED TUBES C) BUTYL TUBES

Fig 4.7 Lead time taken by the branch to execute the order.

54%34%

4%4%

4%

Lead Time taken by Branch to execute the order

A) 0-1 DAY B)1-2 DAYS C)2-3 DAYSD) 3-4 DAYS E)MORE THAN 4 DAYS

Fig 4.8Time taken by the company to replace the goods.

A) 1 WEEK B) 2 WEEKS C) 3 WEEKS D) 1 MONTH

33

12

2 3

66

24

46

Time taken by the company to replace goods

No of Dealers Percentage

Fig 4.9 (a)Satisfaction regarding timely delivery of goods.

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

58

11

0

-5 -4

29

11

35

2

Satisfaction regarding timely delivery of goodsResponse No of the dealers

Fig 4.9 (b)Satisfaction regarding Replacement Services.

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

32

27

0

-3

0

16

27

4 3

0

Satisfaction level of dealers regarding replacement services

Replacement services No of the dealers

Fig 4.9(c) Satisfaction regarding Discount Schemes.

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

22

19

0

13

0

11

19

7

13

0

Satisfaction level of dealers regarding Discount SchemesResponse No of the dealers

Fig 4.9(d) Satisfaction regarding Price.

Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

42

13

0

-9

-2

21

13

69

1

Satisfaction level of dealers regarding priceResponse No of the dealers

Fig 4.10 Attributes which need improvement.

1 2 3 40

2

4

6

8

10

12

14

16

18

20

0 0 0 00,Quality

19,Price

13,Replacement services

11,Delivery time of goods

Attributes No of Dealers

Fig 5.2 Ranking of Brands by Oem’s.

A)METRO

B)INTERNATIONAL

C)RALSON

D)HINDUSTAN

E)BEDROCK

0 2 4 6 8 10 12 14 16 18 20

Fig 5.3 No of years of association of Oems with Ralson.

A)5 Yrs B)10 Yrs C)15Yrs D)More than 15 Yrs

0

20

40

60

80

100

120

0 0 0 4

100

NO OF OEMS PERCENTAGE

Fig 5.4 Level of Agreement regarding Quality.

Highly Agree(+2) Agree(+1) Neutral(0) Disagree(-1) Highly Disagree (-2)

8

0 0 0 0

4

0 0 0 0

Level of Agreement regarding QualityResponse No of OEM's

Fig 5.5 Level of agreement regarding Demand fulfillment.

Highly Agree(+2) Agree(+1) Neutral(0) Disagree(-1) Highly Disagree (-2)

3

1

0 0 0

6

1

0 0 0

Level of Agreement Regarding Demand Fulfilment

Response No of OEM's

Fig 5.6 Allocation of points to different attributes of Ralco by

Oems .

A) Brand Name B)Quick Delivery C) After Sales Services D)Price

205

110

65

20

Totalof each attributeTotal

Fig 5.7 Response of Oems towards increasing the quant of products.

1 20

20

40

60

80

100

120

100

0

RESPONSE OF OEM TOWARDS INCREASING THE QUANT OF PROD-UCTS

Series2

No of oems

Percentage

Findings and Conclusion

• Replacement services although provided should be more speedy.

• Price should be decreased a bit to have more dealers and to beat its competitors in this context

• Greater inventory is required to satisfy the demand of OEMs.

• More discounts should be available to dealers.

LIMITATIONS:-

• The sample size is limited ( only 50 dealers).• Survey represents the response of Dealers of

Punjab only( Raikot, Sudhar, Ahmedgarh Mandi, Moga, Jagraon and Ludhiana).

• Time was limited.• Information by dealers might be incorrect

Thank You