Chapter 3project

7/28/2019 Chapter 3project

1/31

12

CHAPTER-3

COMPANY PROFILE


2/31

13

3.1 V-Guard Industries Ltd

V-Guard Industries Ltd was established in 1977, from the vision of one man, Mr

Kochouseph Chittilappilly. The company is nurtured by quality consciousness, passion for hard

work and the will to succeed V-Guard Industries Limited is a household name across India. A

Kerala based company, manufacturing and marketing of electrical and electronic products. It was

incorporated in February 1996. The Company was converted into a private limited company in

November 15, 2001 and subsequently got converted into a public limited company on August 1,

2007 and received a fresh certificate of incorporation in the name of 'V-Guard Industries

Limited'.

Products marketed under the brand name V-GUARD' are Electronic Voltage

Stabilizers, Submersible pumps and Electric Motors, Insulated Electrical Cables (House Wiring

& Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS for

computers, Electric Fans , Inverters ,batteries and the company also busy with Generation of

power through wind mills. It has a network of sixteen branches including head office located in

Cochin, 105 distributors, 75 service centers, 7000 retailers and spread 12 states across the

country, V-Guard, with its array of products for the home, has a consumer base exceeding 40

million. The company has care on manufacture products that meets international quality

standards and provide trouble-free performance. The Company have Electro-Controls Division is

a state-of-the-art facility for the production of stabilizer cabinets, the fully automated, ISO 9001

certified Electrical Cable Division located at Coimbatore facility that manufactures electrical

cables starting from 0.25sqmm size to 10sqmm size and the Solar Water Heater plant uses

international manufacturing technologies with high quality standards. The company received

VyavasayaJyothi Award from the Ernakulam Chamber of Commerce for the year 1996 and

also Industry Excellence Award for Medium Scale Industries from The Institution of

Engineering (India), Cochin for the year 1998.V-Guard recently ventured into states of

Maharashtra, Haryana, Madhya Pradesh, Orissa, Himachal Pradesh, Chattisgarh, Uttar Pradeshand Gujarat.

Under in expansion the company plans to set up a factory in Coimbatore, for producing

L.T.Power Cables and another unit in Himachal Pradesh or in Uttaranchal for producing

domestic cable.


3/31

14

In 2012,the total turnover crosses 10,000 million. Company has been making profits and

has been paying dividends consistently since last 5 years. At V-Guard, success is measured in

terms of customer satisfaction and quality that is built into every product. The value of

commitment to quality is also cherished by each of the 852 staff members and is consciously

upheld by a network of over 7000 retail dealers and 105 distributors spread all over India. ThePromoters of our company have also ventured into business areas of amusement park, Fashion

Accessories and BPO services by incorporating four entities namely Veega Holidays and Parks

Pvt. Limited, Wonderla Holidays Private Limited, V-Star Creations Private Limited and Vintes

Solutions Private Limited.

Company has been present in this industry for the last 3 decades which has helped in

understanding ever-changing needs and demands of our customers. On account of this long-

standing presence in the Indian market and with constant improvement in performance of

products, augmented with quality, consumers recognize our brand, company believe that they are

enjoying considerable brand equity and reliability in the market. With a production of over

1,25,000 Stabilizers every month, V-GUARDs winning edge is in its technological excellence,

automation and computerization that provides the impetus for a turnover racing past the Rs.650

Crore mark.

Indias largest manufacturer of voltage stabilizer enjoys brand popularity in Kerala,

Tamil Nadu, Port Blair, Karnataka, Goa, Andhra Pradesh, Maharashtra, Gujarat, Rajasthan,

Madhya Pradesh, Chhattisgarh, Orissa, Jharkhand, West Bengal, Uttar Pradesh, Delhi, Haryana,

Punjab, etc. and is now making a global presence with its increasing exports and markets spread

over the world. At V-GUARD, success is measured not in terms of financial considerations, but

in terms of customer satisfaction and quality that is built into every product. The value of

commitment to quality is also cherished by more than 1300 staff members and over 4000

workers engaged in the production process either directly or indirectly. It is consciously upheld

by a network of over 9500 retail dealers and 200 distributors/service centers spread all overIndia, with prompt, efficient and courteous after-sale service, that is the foundation for V-

GUARDs excellent customer relations. In fact, millions of satisfied customers have played a

pivotal role in promoting V-GUARDs image.


4/31

15

The V-Guard brand name is a household name in India and helped a lot to promote

other products. At V-Guard, Quality is not an accident but a continuous process, beginning with

the careful selection of only the finest components through the best sources. From hitech product

designs to stringent quality checks at every stage of the manufacturing process, to ensure world

class performance, V-GUARDs passion for perfection gets first priority. Then comes the serviceto the customers. At V-Guard success is measured in terms of customer satisfaction. The

pricing of the product also plays a major role in marketing. Everybody knows a superior product

needs a reasonably good pricing. V-GUARD does not believe in creating an artificial demand

for their product. Before a product is advertised it is made available in the market so as to avoid

inconvenience and confusion to the customer.

3.2 History and Growth of the Company

V-Guard was transformed into its present form (as of January 2005) by journeying

through Partnership in 1977 to 1982 Proprietary firm from 1982 to 1996 Pvt Ltd company from

2001 onwards.Veegaland and V Star creations are separate entities registered as private limited

companies. It was for professionalization and leveraging the legal and financial benefits that V

Guard was converted into a private limited company. There was major structural transformation

in three phases from its birth till today. V Guard underwent restructuring to cope with the

external and internal environment. Due to the increasing competition in different product

categories, V Guard had to be more product and market focused. Hence, it was transformed into

a product structure bringing each product under an assistant manager to be responsible for the

marketing of each product. These assistant managers report to the marketing manager, by and

large. However, cable and solar water heaters were placed under a separate assistant general

manager who is the operational head for these products. There are branches of the company

under a Branch Manager in each state of south India and metro cities. There is a branch set up in

the Union Territory of Pondicherry also.


5/31

16

These branch managers were responsible for the sales and distribution of the company's

various products in their respective geographical areas. Each branch has technical and account

staff. The technical supervisor is responsible for servicing the technical and after-sales

requirements of the distributors and dealers in the branch's command area. It is exceptionally

noticeable from the organization structure that Chitilapally has placed an AGM in charge of newprojects to exploit, coordinate commission and institutionalize new projects.

3.2.1 Major Events and Milestones

1. 1977 Mr. Kochouseph Chittilappilly sets up Premier Electronics with an investmentof Rs.one lakh and with just two employees. Two Refrigerator Stabilizers were

manufactured each day.

2. 1980 Launched AC Stabilizers.3. 1982 Started another unit called Universal Electronics.4. 1983 Started Supreme Electronics.5. 1986 Started Prompt India. Expanded operations outside Kerala by opening of

Tamil Nadu branch, followed by a branch in Karnataka. Prompt India started

marketing Stabilizers in the brand name of V-Guard.

6. 1987 Launched Servo-Controlled Stabilizers.7. 1989 Prompt India converted into V-Guard Industries.8. 1992 Launched V-Guard Pumps and started new branch office in Andhra Pradesh.9. 1996 V-Guard Industries became a Public Limited Company. Launched V-Guard

Water Heaters and Wiring Cables.

10.1997 Launched Aquatron, an Electronic Water Level Controller for overhead watertanks.

11.1998 Launched UPS (Online & Offline).


6/31

17

12.1999 Launched Digital Stabilizer, Diversified into Electric Cable business with V-Guard Cable manufacturing unit at Coimbatore.

13.2000 Turnover crosses INR 1000 Million Mark.14.2001 Launched Compressor Pumps. Company is converted into Private Limited for

better manoeuvrability.

15.2002 Launched V-Guard Solar Water Heaters.16.2003 Solar Water Heater manufacturing unit and Electro Mechanical Works for

manufacturing pumps in Coimbatore becomes operational. Branch Office started in

Delhi.

17.2005 Launched Solar Water Heaters with Evacuated Glass Tube CollectorTechnology.2006 Launched V-Guard Fans. Branch office at Bhubaneswar, Pune &

Hubli.

18.2007 New Branch offices at Vijayawada, Bhopal, Kala Amb, Vadodara, Kanpur,Nagpur, Raipur, Jamshedpur, Kolkata, Ludhiana and Jaipur. Turnover crossed INR

2400 Million Mark. V-Guard Industries became a Public Limited Company.

19.2008 Listed in BSE & NSE. Launched Inverters & LT Cables. New Factories atCoimbatore &Kashipur established.

20.2009 New LT Cable Factories at Kashipur and Coimbatore became operational andOpened Manufacturing facility for Water Heaters and Fan at Kala Amb, HP.

21.2010 Turnover Crosses 4600 million mark.22.2011 turnover crosses 7263.5 million marks.23.2011 New branch offices in Ghaziabad, Dehradun, Patna and Chandigarh.24.2012 turnover crosses 10,000 million marks.25.2012 April1st board of V-guard restructured with, Shri Kochuseph Chittilapilly as

executive vice chairman and Shri Mithun chittilapilly as Managing Director.


7/31

18

3.2.2 Vision & Mission of the Company

Vision

Company`s vision is to make V-Guard a trusted House hold name by creating a distinct

status for themself in the electrical, electronic home appliances and electro mechanical markets,

driving growth through both organic & inorganic initiatives, keeping shareholder interests at the

core of business and put Customer Satisfaction on top of the agenda.

Mission

1) To offer at affordable prices, a range of products that eliminates manual labour, save time

and energy and add to comfort and enjoyment

2) To manufacture products that meets international quality standards and provides trouble-free performance.

3) To adopt designs that support timely and efficient after-sales service.

4) To continuously innovate and add value to products, if needed to be through technical

collaboration.

3.2.3 Product Range

1) Electronic Voltage Stabilizers

2) Jet, Submersible pumps and Electric Motors.

3) Insulated Electrical Cables (House Wiring & Industrial)

4) Electric Storage& Instant Water Heaters

5) Solar Water Heaters.

6) UPS.

7) Electric Fans.

8) Generation of power through wind mills.

9) Digital UPS


8/31

19

1) Electronic Voltage Stabilizers:

A voltage regulator is an electrical regulator designed to automatically maintain a

constant voltage level. It may use an electromechanical mechanism, or passive or active

electronic components. Depending on the design, it may be used to regulate one or more

AC or DC voltages. During the year 1977 the stabilizer unit was started by Mr.

Kochouseph Chittilappilly for manufacture of Electronic Voltage Stabilizers. V-Guard

stabilizers provide protection against voltage fluctuations, and are used to safeguard

electronic equipments and home appliances such as televisions, refrigerators and air-

conditioners. They come in various power capacities with features like auto restart, time

delay system and high-low voltage cut off which provide reliable protection for electronic

appliances against voltage fluctuations. V Guard is one of the few recognized brand in the

stabilizer market with stabilizer being the major driver of our revenues, contributing more

than 40% of the total turnover of 22,227.48 lakhs for the year ended March 31st March

2007. This recognition is due to the fact that the customers recognize the brand V-Guard

because of its quality and its presence in the market for more than three decades V-Guard

also enjoys the largest geographical spread as compared to the next competitor brand. V-

Guard is thrice the size in value to the second largest stabilizer players and almost 15 times

than the third largest.

2) Pumps

During the year 1992 Mr. Kochouseph Chittilappilly entered the electro-mechanical arena

by marketing monobloc pumps under the brand name V-Guard in the year 1992.

The Electro Mechanical Works Division at Peelamedu, Coimbatore was set up during the

year 2000 for R& D and pilot production plant of Pumps. These pumps ideally find application

in domestic as well as for agricultural purposes. The R& D and product development team

depending on the feedback and demand received from the marketing team develop product after

testing on various parameters and condition. These products are then introduced in the market to

test against the field conditions. This period can anywhere be between 4-5 months during which

the modifications and improvement on the product are made as per the market feedback and field

report. As part of the quality drive we have placed our quality assurance team at the units who


9/31

20

scan each and every product before embossing it with our brand. V Guard pumps commands

good demand in Southern parts of India.

3) Cables

As part of diversifying plans, Company started manufacturing Insulated Electric Cables

in the year 1999 by setting up a factory at Coimbatore in Tamil Nadu with an initial investment

of Rs. 1500 lakhs. V-Guards cables are manufactured in conformity with ISI standards and is

ISO 9001 certified with a fully-automated manufacturing unit. All major machineries required

for production of cables have been imported. ISI marked cables comes with High Flexible Triple

Extrusion Technology and length assurance seal at every 90 metres. Cables do not follow the

business model which is followed by stabilizers and pumps. It is manufactured in their own

manufacturing unit located at Coimbatore.

4) Electric Water Heaters

Electric water Heaters is another range of product unveiled by V-GUARD during the

year 1997. V-guard offers a wide range of instant and storage model water heaters that combine

quality and technology. V-Guard water heaters are available in 28 different shapes and sizes.

5) Solar Water Heaters

As part of promoting the use of non-conventional energy, we have ventured into the

manufacture of solar water heaters with their own Manufacturing unit located at K.G.Chavadi

Coimbatore. V-guard solar water comes with an international ETC (Evacuated Tube Collector)

technology which facilitates efficient absorption and utilization of solar energy, with minimal

heat loss. o

6) Uninterrupted Power Supply Systems (UPS)

UPS (Uninterrupted Power Supply) is a power conditioning equipment that allows for a

smooth changeover to mains operation on resumption of power. It also has the capability of

taking care of the problems like, burn outs, voltage sags, voltage surges, transient surges,

impulses, noises and harmonic distortions.


10/31

21

Normally an UPS consists of a battery, a battery charger/ converter and an inverter. The

battery charger has an input isolation/step-down transformer whose output is rectified to get a

required DC output, which is used to charge the battery. The same output is used, in most cases,

as input for the inverter, which converts DC into AC output.

This product UPS was also introduced to the market in the year 1997. Currently V -

guard offers a wide range of UPS which comes with advance features like micro-controller based

compact design, Off-mode Battery charging, High voltage protection, ZPD technology, PID

controlled PWM-MOSFET technology, intelligent audio indication and generator compatible.

UPS are available in 13 different models. Major competition comes in the form of players such

as Numeric, Wipro, APC etc.

7) Electric Fans

Company in its urge to diversify introduced electric fans during the year 2005. V-guard

fans come with High-Angle Technology and specially designed blades that facilitate full

coverage of cool breeze in the entire room. Company have been sourcing this product from

small and medium manufacturers without compromising on the quality norms before marketing

it under the brand.. Presently 22 models are competing with big players such as Crompton,

Khaitan, Havells, etc.

8) Wind Mill

V-Guard in the year 2004 setup two windmills in Coimbatore with a capacity to generate

230KW of power each with a total combined installed generation capacity is 13.5 lakh units of

electricity per year. With the manufacturing facilities for building cable and solar water heaters

in Coimbatore, company thought it prudent to setup up these windmills which supply electricity

to these manufacturing units. Until the year 2005, the manufacturing facilities were not

absorbing the total electricity generated by the windmills as these facilities were not functioning

at their maximum capacities.


11/31

22

3.2.4 Competitors of V Guard

Much of the market in which V-Guard is operating in is unorganized and

fragmented with many small and medium-sized companies. They face substantial competition

for each of the products from other manufacturers in domestic or divisions of large multinational

corporations, as well as domestic competitors.

They compete with other manufacturers on the basis of product range, product quality,

product price, after sales service including factors, based on reputation, regional needs, and

customer convenience. Their competition varies for each of products and regions. They have to

compete with different players in different products in different regions. Overall, our V-Guards

major competitors for the product stabilizer are Premier, V-Care, Shalimar, Everest, Safeguard

etc, for the product cable are Finolex, Polycab, Anchor, etc, for the product pump are Crompton

Creaves, Kirloskar, Texmo, etc. Major competition for the product electric water heaters comes

in the form of players such as Racold, Bajaj, and Venus etc. Their competitor for product Solar

Water Heaters is Tata BP.

They also have competition in batteries and inverters in inverters V-guard, luminous, Su

kam, Videocon, Microtek, APC Inverter and batteries are Exide, Luminous, Prestolite, Amaron,

Okaya, V- guard. They also face competition from Crompton Greaves, Havells and Polar for the

product Electric Fans and APC for product UPS. However competition levels vary for eachproduct in each region. In addition, the market share keeps changing constantly with advent of

new technologies and products. In present competitive environment, companies which develop

effective, improved and reliable home appliances and have strong customer focus in the form

providing after sales services will be increasingly differentiated from the others in the field.

3.3 Challenges of V-Guard

The period 198486 was a testing time for Chitilapally. V Guard was still running as a

single product firm. The staff strength was a shade above 100. The refrigerator market was

steadily growing. The TV market was also picking up at a faster pace with the increasing use of

VCR for film viewing and the launch of Doordarshan in southern states on a wider scale. The

market expansion in Kerala, Tamil Nadu and Karnataka led to the growth of dealership network

leading to substantial increase in annual sales. The Gulf boom added much to the sales. But the


12/31

23

workers started giving trouble. They resisted professionalism and modernization. The union

provoked workers even to assault the supervisors.

Many firms who surrendered to these pressures had to buy peace, causing these tactics

come to stay as worker's culture. Chitilapally knew that yielding to this pressure would ruin his

organization. So he decided to take the bull by the horns. He hit upon the idea of outsourcing off-

loading the manufacturing to outside units. Certain small-scale units with charitable interests

were identified for this purpose, and they were engaged for assembling the V Guards products.

Few such units were hired out for this service in 1986-87. V Guard's own production

facility was shut down leading to strikes in front of V Guard's manufacturing facility. The benefit

of the outsourcing was mutual; V Guard got finished products at a lesser cost than producing

from its own facility and many got employment and livelihood. The investment in the owned

facility was not very significant by virtue of the fact that the assembly was highly labour

intensive. The people working in the outsourced units were given adequate instructions by V

Guard supervisors on skills required to assemble the product. Stringent quality control measures

were put into place.

Because of Chitilapally's long-standing association with the suppliers mostly from Tamil

Nadu, he could get few days credit for the raw materials supplied. These raw materials were

supplied to the outsourced units who assembled the products. It was only the labour componentthat was outsourced. Ten such units were outsourced in the beginning, all located around Cochin.

100% of the stabilizers, as on the closing of 2004, were outsourced.

3.5 Market Expansion and Diversification

The market for V Guard stabilizer was steadily expanding in Kerala, Tamil Nadu, Andhra

Pradesh and Karnataka. More and more distribution stockists and dealership outlets-were

established. In latel980s, the number of outlets which sold V Guard was around 2,000. There was

no dilution in after-sales service. Dealership meets were organized and the main intention was to

build good relationships. Shops selling home appliances and electrical and plumbing items were

the types of distribution outlets used by V Guard. As of January 2005, V Guard has

approximately 6,000 outlets mostly spread over south Indian states and Goa, Maharashtra and

the metros


13/31

24

The well-established distribution network was something to be exploited thought

Chitilapally and his team. In the late 1980s, the quartz clock was launched. The product was

differentiated from existing brands by using rosewood as a frame. The product was thus looking

different from existing brands, which were made mostly by the unorganized sector. There was an

increasing demand for clocks, as it was almost a necessity and a decorative piece.

A more influencing reason for the launch of clock was the scope for outsourcing the

assembly of clock. The existing distributors were used to selling the product. It was also priced

more than the existing leading brands. The sales volume achieved was not worth the effort,

remembers Chitilapally.

There was increasing competition from the unorganized sector. The margin was also low.

Good quality rosewood also became scarce. The product was withdrawn from the market.

3.6 Corporate office and branches

Corporate office: V- Guard Industries Ltd, Vennala High School Road, Vennala, Cochin

682028, Kerala.

Stores Section : Cochin, Palakkad, Madurai, Ahmedabad, Gurgaon.

Branches : Hyderabad, Vijayawada, Bangalore,(Marketing Administration), Hubli,

Coimbatore, Chennai, Pune, Mumbai (Godown), Mumbai (Accounts and

Marketing) Nagpur, Bhopal, Bhubaneswar, Kolkata, Ranchi, Rajpur,

Ahmedabad, Jaipur, Gurgaon, Ludhiana, Kanpur

Divisions : Cable/Solar Division (Coimbatore), Cable Division Kashipur, EMW Division

(Coimbatore) Kala Amb (EMH and Fans).


14/31

25

3.6.1 Capital Structure:-

Sources of Funds

i. Shareholders Fundsa. Share Capital (Authorized , Subscribed ,Issued and paid-up) 30,000,000 Equity sharesof Rs 10 each 29,847,520 Equity Shares of Rs 10/-each fully paid up.b. Reserved and surplusSecurities Premium and General Reserves.

ii. Loan Funds:a. Secured LoansTerm loans from banks, working capital loans from banks, Medium

Term Loans (from banks and others).

b. Unsecured LoansWorking capital loans from banks, Book Overdraft, Capital workin progress.

3.6.2 Products

Products marked under the brand name V-GUARD are

1. Electronic Voltage Stabilizers

2. Monobloc, Jet, Submersible pumps and Electric Motors.

3. Insulated Electrical Cables ( House Wiring & Industrial)

4. Electronic Storage & Instant Water Heaters

5. Solar Water Heaters

6. UPS

7. Electric Fans

8. Generation of power through wind mills

The products are not only recognized in all southern States and especially in Kerala but

also enjoy good demand in markets across India.


15/31

26

3.6.3 Distribution Network:

a) Distributors: At present we are having around 210 distributors (103 for South and 107 forNorth), who are selling products to the retailers. Approximately we are having around 200

DMAs throughout India. The DMS throughout India. The DMAs throughout India. The

retailers will be selling the products to the customers.b) Direct Marketing Associates (DMAs): Solar Water Heater Digital UPS are sold through

the Direct Marketing Associations. At present we are having around 200 DMAs

throughout India. The DMAs will be visiting the customers premises directly and make

necessary arrangements for the sales & installation of the product.

c) Direct Dealers: In addition to the above we are having 2665 Direct Dealers across India(1500 for South and 1165 for North) who will be purchasing in bulk.

d) Direct Customers: Products like online UPS LT Cables and higher capacity Solar WaterHeater are supplied to the direct customers after knowing their actual requirements LT

Cables are supplied through dealers also.

V- Guard adopts a hybrid manufacturing model for its product portfolio. It manufactures

products such as cables and water heaters, fun, UPS and Digital UPS. The company outsources

the manufacturing of its products as this enables it to keep control over its cost and also to meet

the increased demand without undertaking significant capital expenditures. The vendors selected

for manufacturing of various products which are to be launched are developed at its R&D Centre

and then given to vendors for manufacturing. V-Guard assists these units to purchase the raw

materials and places it quality assurance teams at the units to scan products before embossing it

with its brands. The products also undergone random verification apart from VGI internal

process audit every six months strengthens the quality of its products.

At V- GUARD, success is measured not in terms of financial considerations but in terms

of customer satisfaction and quality that is built into every product. The Values of commitment

to quality is also cherished by more than 1400 staff members and over 4000 workers engaged in

the production process either directly or indirectly In fact millions of satisfied customers have

played a pivotal role in promoting V-GUARDS image.

Quality products and quality after sales service is the key of success of our organization.

We have more than 300 service centers across India. On receipt of any complaint we provide

doorstep service is the backbone of our Organization. We have toll- free numbers for all India


16/31

27

service India service and also local helpline numbers for all branches. Through these numbers

customers can contact to register complaints.

Trained engineers and technicians are actively involved in solving customers issues .Toll

free number is also highlighted on the top of the produts.Customers can also register complaint

through net. There is a helpline desk in every branch. Complaint registration numbers are given

to all customers. Service feedback is solicited from the customers after solving their problems as

well as from the marketing staff and dealers .Customers feedback is shared with the production

department foe anything related to the quality of the product. We operate a felt of vans in the

metros foe providing prompt customer service .Further we are also carrying out service through

different setups

1. Service through authorized distributors service through different franchisees.2.Service through franchisees3. Service through contract4. Service through resident engineersVGUARD is in process of appointing more franchisees/ service setups in all states .The

plan are to have one service point every 2km.


17/31

28

Organization chart

Figure .no. 3.1 Organization Chart

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

MRKETINGCFO & VP-FINANCE

JOINT MANAGING DIRECTOR

ZONE 1

ZONE 2

ZONE 3

ZONE 4

Customer

Service

Secretarial

Legal

Finance&Accounts

Costing

System

COPORATE

COMMUNICATION

Director

(Admin

HR

&civil)

Sr.VP (SC

purchase

& logistic

VP

Stabl

UP

Digi

UP

Ne

Proje

VP-

WH

SWH

FANVP

pumps

VP-

CABLE

Coimbatore

facility

Kashipur facility

EMW

Coimbator

Proposed

perundurai

facilityKalaamb Fa

SWH Coimba


18/31

29

Departments

1. The various departments at V-Guard are:

2. Human Resources

3. Finance

4. Marketing

5. Corporate Communication

6. Supply Chain Management

7. Customer Service

8. Systems

9. Electro Mechanical Division

10.Mechanical Division

11.Electronic Production.


19/31

30

Human Resource Department

Fig no.3.2 Structure

Director Administration

(Overall HRT Administration)

DGM (HR) Personal&

welfare

GM (HR)

Mana ement Audit

Chief Officer HR

(Incentives)

Senior Executive

(LTA dc)

Officer (Salary)

Officer (Statutory)

Executive HR (Mgtd Officer

Letter of Graduation)


20/31

31

i. HR PolicyThe basic principles of V- Guards HR policies include:

a)

Recruitment based solely on merit by following well-defined and systematic selectionprocedures without discrimination.

b) Sustain motivated and quality workforce through appropriate and fair performanceevaluation, reward and recognition systems.

c) Identify training needs programmes resulting in continuous up- gradation of knowledge,skills and attitude of the employees.

d) Maintain a quality Human Resource Management System .Plan, Design, Train, andEquip and motivate the department staff to meet this standard of expectation.

The human Resource department mainly out of the corporate office in Cochin. The

activities of the department include.

a) Recruitment and Selection of workforce.b) Induction Trainingc) HR Administration activities like attendance regulation, Leave, Compensation and

reward management.

d) Training and developmente) Performance Appraisalf) Exit Management

ii. RecruitmentWhile recruiting new employees, HR focuses on recruiting the candidate who display a

high degree of learn-ability and those who possess professional competences, academic

excellence, analytical ability, teamwork, leadership skills, communication, skills, innovation

and practical and structured approach to problem solving. Recruitments are mostly done by

filtering candidates through internetbased job sites e.g. .Naukri .com.


21/31

32

iii. InductionAll selected candidates are initially placed on probation for 6months, except the

Managerial Cadre. The induction training is given at the head office or branch office, spanning 1

week to 1month depending on the job requirement. HR draws up a detailed training schedule after

discussion with concerned Head of Department.

During induction, employees are exposed to theoretical training as well on then job

training .After induction, they are sent to respective department for further the Job training and

evaluation.

iv. Administrative HR Affairs.a) Work Hours:-

Each Branch /location has work timing suitable for their location. Total working hours per

day in 8hrs (excluding 30 mins, lunch break).Sunday is weekly holiday for all branches. Weekly

leave for shifts is decided locally.

b) Leave Provisions:-For those under the shops and Establishments ACT:-

i. Casual leave = 12 daysii. Sick leave = 12 daysiii.Annual Leave = 12 days

For those under factories Act:-

i. Casual Leave = 12 daysii. Sick Leave = 9daysiii. Annual Leave = 15 days


22/31

33

Employees working on holidays are eligible for compensatory off .Compensatory off can

be clubbed with other leaves. All unmarried employees shall be eligible for 6 days of marriage

leave. Salarydisbursed every month on the last working day to the bank accounts. Deductions

from salary/employers contribution as per the Acts (ESI, PF) to the welfare funds

(LWF/KSCEW) as applicable.

V. Performance Appraisal

To evaluate different criteria like timeless, quality of work, customer satisfaction, peer

satisfaction and business potential is considered .The personal skills of the employees are also

evaluated based on their learning and analytical ability, communication skills decision making,

Planning and organizing skills .Each of these criteria is measured on point based system and

scores determined by the supervised. Based on the appraisal the increments and promotions are

decided .Appraisals are done every year in the month of July for these employees who have been

confirmed as on March 31st.

Training policy of the company stems out from their HR policy their HR Policy itself.

The training policy of the company is as below:-

V- Guards Human Resource Department that quality is the hallmark of any successful

venture. Quality Training and Development of Human resource is realized through. Identifying

training needs within the organization and designing and implementing those needs based

programs to bring continuous up-gradation of know ledges, skill and employees attitudes.

The company draws up an Annual Calendar which highlights the training activities for

the year. It also performs discussions which faculty to decide on the content of the training

programs-Guards training plan includes technical/functional programs (mechanical, electrical,

finance related and behavioral programs), covering a wide cross section of employees .Some

instances of the programs are:

1) A weeklong induction program for the new joiners.

2) Leadership- development programs aimed to harness future leaders.

3) Tailor- Made Management Development Programs for providing exposure and holistic

understanding of aspects of management to the material staff (e.g. Strategic Planning

Customer relationship, Shareholder Values, Financial Management etc.


23/31

34

vii. Culture

V-Guard has built a culture in tandem with the Vision and Values of the organization that

makes it a great place to perform where members take pride in being a part of the V-Guard

family are intellectually and emotionally bound with the organizations Vision and

Values.Compelete ownership of the vision ensures alignment of members personal vision with

organizations vision thereby achieving focus in all the endeavors.

Work culture emphasizes:

a) Freedom to experimentb) Continuous learning and trainingc) Transparency and Opennessd) Quality in all aspects of worke) Rewards based on performance and potential

Viii. HR Initiatives Implemented in the year 2010

1) HR Induction and OrientationWhen new candidates are hired they are invited for a one week induction and

orientation Programme to corporate office, where the candidate is acquainted which

each and every aspect of the organization. A through integration with HR& business

process takes place. As part of the induction programme, they also undergo training on

motivation, a visit to V-Guard Amusement park and also a visit to their Cable Factory

located in Coimbatore.

The new employees have an open and interactive session with the Top management

including the Managing Director. A special induction manual has been designed for new

employees together with an induction kit which would provide all the necessary detail

on the company, allowances and the facilities they are eligible.


24/31

35

2) Sports and Games ActivitiesV- Guard believes that employee brings better productivity .As part of their

fitness movement, they have provided adequate Infrastructure to conduct various kinds of

indoor as well as outdoor sports. They have separated sports facility, which range from

Table Tennis to Badminton, Gymnasium and tie ups with college grounds to conductcricket and football matches. The company organizes inter-units sports competitions by

making a sports calendar on yearly basis to keep on promoting the spirit of sportsmanship

across their branches. The sports activities will comes to an end with the annual sports

day scheduled in the month of January, where individual prizes were awarded to winners

and an overall trophy to the department scoring the maximum points. All the events were

coordinated by the Recreation club formed for this purpose.

3) Leadership Development ProgramOn the growing trajectory on which V-Guard is today there is a strong emphasis

on developing an effective organization that uses its skills in leading and driving its

growth. Hence the company identifies future leaders by identifying members who think

holistically about the organization by considering the big picture and act for the greater

good of the enterprise. These members are made to undergo Coaching Session for

meeting their development requirements enabling to become the Real Leaders to take

the organization to grater echelons.

4) Executive Development ProgramAll managerial carde employees are nominated for executive development

programs conducted internally. Trainers are experts in the field .The duration of the

program is 12 days(2 days in a month over a period of 6 months ).Training

methodology used were Case studies,in Basket techniques, Business games etc.


25/31

36

5) Social welfare FundAs part of the CSR initiative, the company has started a welfare fund to the ailing

cancer patients in the General Hospital, Cochin .Every month; employees make

voluntary contribution to this fund from their salary.

Once the amount is collected the medicines are purchased based on the

requirements of the cancer wars and it is handed over to the doctor directly by the

employees who visit the General Hospital every month by taking turns. This ensures

that the medicine reaches the right person. They have contributed medicines worth Rs

3,00,000 this financial year.

6) Department TourDepartmental tours were organized which included team building and brain

storming sessions. These trips helped the employees to think out of the box and give

new suggestions in their area.

7) Employees CounselingCounseling programs were organized for all employees with the help of

experienced counselors from the respective field.

8) Unique HR Practicesa)NiyuktaSamayary

This is the employees engagement programme started in this financial year

(2010).This session is conducted by inviting employees department wise on a rational

basis every Saturday in the afternoon, for a period of one hour. Two representatives

from the HR department and a person representing the Top management would be

present in all meetings. The programme starts with a small introduction followed by a

session where employees will be free to give their suggestions and speak out their

problems. The open session is filled by games to promote team building and employees

are encouraged to exhibit their skills. Many fruitful suggestions were received from the

employees sides which were implemented successfully.


26/31

37

b) Online recruitment management systemTo cope with the growing expectations of business and in order to give the

organization a competitive edge to the business edge business to the business, V- Guard

has streamlined the whole system by integrating the HR fundamentals with information

Technology and has adopted some practices unique to V- Guard.

Under this planned system prospective candidates visit the company website and

can directly register their CV for any position listed on the site. Similarly all consultants

are also required to post their CV thru this site. As a result duplication of CV is

immediately identified and not accepted .The CV then comes to the data bank and for

short listing/Screening both the functional users and HR dept has got the consultant or

the candidate .Incase the candidate is selected for interview then the information goes

for finalization of interview at specified date and time.

This speeds up the whole process as it does the initial screening of the vital

parameters in terms of age qualification, experience etc.

c) Meeting with workersCreative problems solving among is something the company has attempted to

cultivate. The company has regular line meeting at the manufacturing then and there.Morning meetings are a norm at V- Guard where the whole management together with

VPs and discuss the plans for the week.

d) Fringe Benefits1) Bonus2) Medical reimbursement3) LTA4) Gratuity5) EDLI Coverage6) Term Loan7) Higher Education Financial Assistance8) Education allowance for employees children


27/31

38

9) V-Guard Award for excellence10) Benevolent11) Free Boarding Passes to wonderla Amusement Parks12) House Magazine13)

Suggestion Scheme

14) Performance linked incentive Scheme15) Mobile allowance16) Travel expenses17) Hotel Accommodation18) Daily Allowance for Outstation/Local Trips19) Tea Expense20) Allowance for Exhibition

9 Future Outlook and Strategic Initiatives

The board had approved at 5 years Business plan for the company which is being

revised as a rolling plan every year. Annual Business projections are made based on the

projections on the Business Plan with variations suiting to the emerging business

environment and internal factors. The company has been able to achieve and surpass the

growth targets as envisaged in the plan and the attempt is to show better and better

performance in future and to maintain the leadership in the voltage stabilizers.

To maintain the growth momentum in the existing and new markets, the company

is giving much importance to the quality and reliability of our products and the after sales

service we render. With this objectives the existing products are consistently upgraded on

quality aspects and new models to suits the requirement of the market are being

introduced through intensive R&D efforts .High capacity utilization of the

manufacturing facilities will be continues to ensure optimum cost a production and so

ensure adequate supply of manufactured products. Likewise the number of outsourced

units to meet the growth in sales planned during the coming years. Introduction of new

products under the appliance segment is also under consideration.


28/31

39

Consideration the growth potential in the solar water segment it has been decided

to strengthen the manufacture base of solar water and a state of the art facility for the

manufacture of solar water heater and a state of the art facility for the manufacture of

solar heaters of different capacities with improved technology is being planned at the

industrial and acquired in Perundurai, Tamil Nadu under lease from SIPCOT. It has alsobeen decided to strengthen the existing pilot production units of Electric water heater

(EWH) and Fan at Kala Amb and pumps manufacturing and testing facility include

expanding the ware housing facilities available at Palakkad, Bangalore and Kochi to meet

the increased sales requirement in future.

9. Achievements.Stringent quality control measures have been implemented at every level at V-

Guard, ensuring that products and process are of the highest quality, superior design and

optimum output. From procurement of raw material and components to the final roll out of

products, international standards are adhered to.

a) MNRECRISILThe Solar Water Heater division was awarded the prestigious MNRE CRISIL

rating which indicates high performance capability and moderate financial strength of the

company undertake off grid projects in Solar Thermal Technology. The ministry of New

AND Renewable Energy accredits companies that have efficient products and capabilities

for this certification.

b) BISThe pumps and motor factory at Coimbatore (Electro Mechanical works) bears the

Bureau of Indian Standards Certification (license CM/L -3315141 as per IS 14220: 1994)

for quality of the pumps produced. It certifies the quality and performance of the water

pumps manufactured at EMW.


29/31

40

c) ISO 9001 : 2008The V-Guard R&D Division at Cochin was awarded the ISO 9001:2008 for excellence in

quality management system in Design and Development of Electronic equipments proving the

efficacy of the efforts at V- Guard to reinvent products.

d) BIS certificationThe PVC factory at Coimbatore bears the Bureau of Indian Standards certification for

quality of the cables produced. It certifies the quality of the PVC insulated (heavy duty) Electric

cables and the cross linked polyethylene Thermo Plastic Sheathed Cables at V-Guards

Coimbatore factory. V- Guard at Coimbatore and Kashipur also bear ISO certification for

conformation to the highest international standards of environment management systems. Thiscertification extends over manufacturing of products like PVC sheathed/Unsheathed insulate

cables. LT power & control cables and solar water heaters

e) OHSAS 18001:2007Concern for employees safety has even lead to OHSAS Certification of the Coimbatore

and Kashmir factories, Stipulations of the internationally acclaimed Occupational Hazard and

Safety management system are strictly maintained.


30/31

41


31/31

Chapter 3project

Documents

Transcript of Chapter 3project