V-GUARD BIG IDEA CONTEST

GROUP : BG-19

COMPANY PROFILE

• V-Guard Industries Limited (V-

Guard), a Kerala-based company, was

incorporated in February

1996, Promoted by Mr. Kochouseph

Chittilappilly. V-Guard has been an

established player in the stabiliser

business since the last 30 years with a

market share of 50% in South India. It

operates 3 divisions i.e., Electronics

(manufacturing voltage stabilisers, UPS

and digital home UPS), Electrical/

electro-mechanical products. The

company has manufacturing facilities at

Coimbatore in Tamil

Nadu, Udhamsingh Nagar

(Uttarakhand) and Sirmour in Himachal

Pradesh.

1977

V-guard begins

1980

stabilizer

1986

New branches

In TN and karnataka

1991

New branch in Andhra Pradesh

1992

Water pump

1996

Launch water heater

&cables

1998

UPS

1999

Cable manuf.

2003

Solar water heater

2004

Wind mill

2006

Fan

2007

Became public limited company

2008

Listed in BSE & NSE

2012

Domestic switch

2014

Mixer grinder

OUR PRODUCT…

CCTV Camera

• IP HD Camera

• Analog HD Camera

CCTV Camera

• CCTV (closed-circuit television) is the use of video cameras, primarily

for surveillance and security purposes, to

• CCTV is commonly used for a variety of purpose, including:

• Maintaining perimeter security in medium-to high-secure areas and

installations

• Observing behavior of incarcerated inmates and potentially dangerous

patients in medical facilities

• Traffic monitoring

• Building and ground security

• Overseeing location that would be hazardous to a human

Analog camera

Cameras in analog CCTV system send

video in traditional base band format over

coax or UTP cabling back to a digital video

recorder (DVR)

Video digitized & stored on hard drives.

Most modern DVRs are a network

device, and can be accessed remotely from

LAN, WAN or internet.

Video is kept on hard drives, typically on a

FIFO basis so there is always a rolling

video archive of the past X days.

So, despite video being transmitted from

cameras in analog format, live & recorded

video is still available over the network.

IP camera

IP video cameras broadcast their video as a

digital stream over an IP network.

Like an analog system, video is recorded

on hard drives, but since video is an IP

stream straight from camera, there is more

flexibility as to how and where that video

is recorded.

The DVR is replaced with an NVR

(network video recorder), which in some

cases is just software since it doesn't need

to convert analog to digital.

Video footage can then be stored on new or

existing network RAID drives as directed

by the NVR software.

Types of CCTV Camera

• Camera Type by appearance and function

• Dome camera

• Bullet camera

• PTZ camera

• Bullet cameras and Dome cameras are most common camera

types used for home and business security today.

• Both are easy to install, manageable, and offer complete control

to the user when securing areas of any size.

• Bullet cameras, as the name suggests, protrude outwards like a

gun’s barrel, while dome cameras have rounded “dome” shape.

• PTZ cameras, also known as PTZ IP cameras, are able to

pan, tilt and zoom while recording video. Can find a PTZ

camera for outdoor or indoor use.

Components of a CCTV Camera

• Power board

Usually positioned in a sort of "caboose" fashion at the back of the camera. Internal as well as external wires are connected to this.

• CMOS image sensor

An image sensor is directly attached to lens and will also always contain a square, or rectangular, piece of glass directly in the center of the board. All images and motions are sensed by this.

• Lens

fixed or adjustable type lens

Fixed lens are tightened to a particular angle but adjustable lens can be rotate t any angle.

• Infrared LED board

Infra-Red light can be used to provide discrete or covert illumination for CCTV; to minimize light pollution; or to provide very long distance illumination. IR LED which give red light at night and turn off at day time. light sensor under the camera lens which control the LED turning on or off.

Major Components

Infrared LED board Lens

CMOS sensor Power board

Working inside a CCTV camera

IP/digital and analog cameras may seem more alike than they are different. Both cameras

employ an analog image sensor, which is either CCD (charge coupled device) or CMOS

(complementary metal oxide semiconductor). Virtually, all analog cameras use a CCD sensor

and IP cameras can utilize either type. The analog signal from the sensor is then converted to

digital form by an analog-to-digital converter and further processed by the camera’s onboard

digital circuitry (DSP). Remember both IP camera and digital camera have digital signal

processing and digital video output but IP camera additionally has embedded web-server with

IP address to transmit video & audio through internet.

FOR V-GUARD

We suggest assembling CKD kits rather than importing fully build units in initial years

Once the volumes pick up, V-Guard can plan for technology transfer, setting up an

assembly line with higher levels of localization

Why assembling strategy ??

• Government benefits for promoting manufacturing and creating employment

• Sector specific incentives (25% CAPEX) under make in India

• Area based incentives and State incentives

• Tax breaks

• Using local labour we may able to sell the product at a better margin

Future plan

Intrusive Burglar alarm

A security alarm is a system designed to detect

intrusion – unauthorized entry – into a building or

area. Security alarms are used in

residential, commercial, industrial, and military

properties for protection against burglary (theft) or

property damage, as well as personal protection

against intruders

Monitoring the potential intrusion entry points with

sensors that communicate with a control

panel, transmitting alarm signal when detecting the

illegal intrusion, that's the basic concept of theory

of alarm systems.

MARKET

ANALYSIS

SECURITY&SURVEILLANCE

SYSTEM

• Currently, Analog based surveillance systems

accounts for nearly 68% of the market, yet IP

based surveillance systems are expected to

grow with relatively higher CAGR of 41.78%

in the coming years

INDIA CCTV MARKET

• The security systems sector in India can broadly be

divided into 4 main categories: Access Control, Detector

& Scanners, CCTV and Alarm Systems.

• Largest amongst these is the CCTV segment, accounting

for more than 50% of entire electronic security equipment

market in India .

• With high-success rate of CCTV surveillance

devices, security conscious organizations (both

government & non-government) in India are

implementing CCTV surveillance, reflecting an annual

expected growth rate of more than 20%. The growth in

the market has been driven by the growing awareness

among different end user segments.

1.93-3.06

(Billion)

CAGR (9.7%)

3250-20312.5

(Crore)

CAGR (25%)

55%30%

2%

2% 11%MARKET ASSESSMENTS

CCTV

ACCESS

DOOR INTERCOM

INTRUSION

OTHERS

BCG -ANALYSIS

While analysing the BCG matrix of competitors in security & surveillance system space we

observed that there are symptoms of a problem child. Most business unit have relatively small

market share in a high growth market. Further, there is a concerted entry by some major players

into the market as it shows a potential to turn enter the “Star Quadrant "from the “Question

Mark” where it currency is. We propose to V-guard to invest into this business portfolio which

can grow into an approximately 40 Crore market, without accounting for other offerings in this

space, in the next 5 years at a CAGR of close to 90%.

today.

However in the next 5 years V-Guard can have a very high relative market share taking the

product to the “Star Quodrant”

We recommend V-Guard to launch Analog and IP surveillance cameras with an extension to

other products covering entire Surveillance and Security Space.

CURRENT MARKET SCENARIO

• Today, security segment is a largelyfragmented industry. Tillnow, organized sector, has beenflourishing within the securitydomain, due to their low-pricedsecurity products.However, established brands willgradually dominate the market withconsumers now becoming conscious onaspects such as quality and the featuresof the product they are buying.

• A case in focus is that of Cannon whichsuccessfully forayed into this spacewith cash only acquisition of MilestoneSystems, a global leader in IPsurveillance solutions and AxisCommunications, the global marketleaders in network cameras in 2015 andin Indian Market the big brand Sonyentered in IP market recently

• Our Project proposal suggest security

surveillance market in initial year by

concentrating CCTVcamera and Burglar

alarm and introducing other security systems

as future such as: video door

phones, intrusion &, access control, smartcard

solution and biometric products.

• Factors such as the threat of terrorism and a

regular increase in the incidence of criminal

as well as illegal activities has led to an

increased sensitivity towards the security

compliance requirements at hotels, railway

stations, airports, hospitals, etc. which in

turn, has proven to be a growth driver for the

market in India. Although, the government

sector is the biggest segment in terms of

volume and demand, the private sector is also

increasing its expenditure on security

surveillance, due to increasing concern on the

safety of life and property.

RATIONALE OF PLAN

Go to Market strategy (GTM)

• The GTM strategy will cover the operational and marketing plan for the initial years

of operation of this division. For its initial foray into the Surveillance Space, V-Guard

can begin with the marketing and sales of the Analog and IP cameras. It should

operate as an assembly unit by importing products from China and selling in the

domestic market.

• Over a period of time when the volume make sense to get into manufacturing

space, V-Guard may look at setting up a fully owned manufacturing unit or acquiring

some niche players who have the technological advantage which can act in synergy

with V-guards superior understanding of the large untapped market and its sales

channel

MARKETING PLAN

• Total potential market

The total population of Kerala at around 3.4 Crores (roughly68 lakh households), and

number of commercial establishments, the retail or household segment and the

commercial enterprises are both segments with significant market potential.

• Addressable market

Limiting factors like income, dwelling units, size of the establishment etc. can used to

delimit the total potential market and derive the addressable market. Out of the total

dwelling units, roughly 20% of them are Below Poverty Line (BPL) leaving roughly

54lakh dwelling units that can be considered as potential customers

• Feasible market

The derived market size is again delimited considering the user preference based on

highly subjective factors like price, interest in the product, intent, already installed a

competitor product etc. We consider 65% of the addressable market as our feasible

market and so the feasible market can be roughly sized at shortlisted to 35 lakh

dwelling units

Target marketOut of the 35 lakh dwelling units in our feasible market, we target the affluent and

upper middle class population. Also, accounting for a ratio of 1:8 as the ratio of

dwelling units to establishments and applying similar limiting constraints we have a

target market of roughly 5 lakh establishments as our target market

Market share

We foresee that will the strength of a brand like V-Guard to back and taking

conservative estimate of two cameras per potential customer, we are looking at a size of

about80 lakh cameras with an additional replacement market which we are not

accounting for simplicity. We expect V-Guard to conquer roughly 15-18% of the

market share of CCTV cameras in Kerala within the first 3 years. That is our final

target is 14 lakh CCTV cameras in the first 3 years. So we have divided our target of

assembly into 3 years and increasing the production in the successive years.

Potential customer

• Industrial places:

Offices, warehouses, research and development centre, store room, security

gate, conference room , factories, plant, building, corporate

house,office,flats,township,warehouse, server room or MIS centres, research and

development centre, training centre, conference room, canteen, security

gate, cabin, chamber, store room and Exhibition Hall.

• Retail Sector

Jewellery store owners, departmental store owner, super market hypermarket and

Shopping Malls with a high demand for CCTV Camera Security System.

• Hospitality and Entertainment Sector

The CCTV system are widely used in

Restaurant, Hotels, Spa, Resorts, Waterparks, Gymnasium, Health Clubs and Guest

Houses.

• Residential sector

The product can find a marker for the people who feel intense need for Security for

their Personal Assets like Bungalows, villa, Home, Farm House, Flat[Apartment].

In Government, Public and Private Sectors

• V-Guard can provide CCTV and Security Systems to Auditorium, High

Courts, Government Offices, Museums, Convention Centres, Town Hall, City Civic

Centres, Airports, Ship Dock Yard, Harbours, Jetty, Ports, Special Economic Zones /

Export Zones [SEZs], Railways Stations, Bus Stops, Police Stations, Research and

development centres.

• Public parking areas, Cross road Traffic signals, Public garden, Highways, City

Roads, Public transport system, Sea [ocean] beaches, Electric Power

plants, Dams, Bridges, Mines, Irrigation canals, Petroleum oil Refineries, Fertilizer

plants, Auction Houses, Space Stations, Government Residential Colony, Public

Stadiums, Municipal Corporations, Offices.

• Mobile Cell Phone Towers, Commodity TravelCenters and Money Exchanges Market

Places, Stock Exchanges, Country Borders Security, Weapon Arsenal, Highway Toll

Booths, Beacons, Fire Brigade, Industrial Zones, Wind Farms, Tunnels, Air Craft

Runways, Petrol pumps & Gas Fuel Stations.

Positioning

• The product can be positioned as a slightly premium offering in line to the existing

position of the other offerings from V-Guard with an expected margin of 35-40%from

the business.

DISTRIBUTION CHANNEL

• V-Guard can market and sell the cameras primarily to installing dealers, system

integrators, government entities and security products distributors and through the

existing retail distribution business. Since V-Guard is in the industry for the last 35

years, there is an established, wide distributive network all over India for the supply

and distribution of its products. V-Guard has got 280 distributors, 12000 retailers and

1200 channel partners across India which can be effectively leveraged to market and

sell the products

COMPETITIVE ANALYSIS

Products

Samsung Sony Honeywell Cp plus Hikvision

Analog IP Analog IP Analog IP Analog IP Analog IP

Price 5000-6000 7000-

8000

5000-

6000

7000-

8000

2500-

3000

5000-

7000

2500-2700 5500-

6000

2500-

3000

5500-

6000

Common

features

High definition, Mega pixel, Vandal proof, HD resolution, Backup power

Service Excellent Satisfactory Satisfactory Maintenance problems

COMPETITIVE ADVANTAGE

• The major competitors are Samsung, Sony, Hikvision, CP plus, Bosch, Honeywell

etc. Majority of them doesn't have a limited cost affordable product with digital

technology.

• The main advantages of V-Guard are the production of coaxial cables which is

suitable for connection of CCTV cameras, which helps to convert Analog signals into

digital signals.

• It also boosts up the promotion of V-Guard UPS which provide power back up for

CCTV cameras.

• Some of the major competitors have not yet penetrate into IP camera market, so it

may be a competitive advantage for V-Guard by introducing IP cameras.

• Make a 24*7 customer service centre for booking

complaints, grievances, suggestions etc., which lead to a harmonic relationship

between customer and company

COMPETITIVE ADVANTAGE :PORTER MODEL

FACTOR CONDITONS

• V-Guard has excellent factor

conditions including Low cost and

highly trained sales force and model

management

• Excellent physical resources covering

a very strong distribution

channel, warehouse and other allied

infrastructure.

• An excellent accumulated knowledge

of the business and market for

consumer durables in India.

• The company has a very favourable

capital structure to enable it to foray

into new markets and product offering.

• The company has an excellent

ecosystem that is sustainable and

amenable to the demands of the

market it in operating in.

DEMAND CONDITIONS

• The demand for the security and

surveillance system is significant

enough and it can be placed in the

Question Mark quadrant of a BCG

matrix where the market growth is

relatively very high but the relative

market share is non existent for V

Guard today. However in the next 5

years V-Guard can have a very high

relative market share taking the

product to the “Star Quadrant”

Related and Supporting divisions

• V-guard has a large group of

electronic offering in related industries

with which they can coordinate or

share activities in the value chain.

• Manufacturing/assembly expertise

distribution, marketing or service are

all areas in which sharing of activities

could occur.

• This helps V-Guard establish a

competitive advantage over other

firms offering similar products.

Firm Strategy, Structure, and

Rivalry

• The goals, strategies, and ways of

organizing of V-Guard help in gaining

competitive advantage in the industry.

Company goals, ownership

structure, the motivation of

owners, the nature of the corporate

governance, and the incentive

processes that shape the motivation of

senior managers are all favourable to

V-Guard. A sustained commitment of

capital and human resources in turn

enhances productivity and

effectiveness of V-guard.

DEALER SURVEY

• We had done a dealer survey for our product among some of the prominent dealers ofsurveillance systems

Most of the dealers shared many feedbacks. One of the valuable feedback receivedfrom a dealer is that most of the customers demanding for CCTV cameras insurveillance and security systems. The only complaint received from customer is aboutthe night vision of the cameras. The proprietor also suggests that HD cameras willovercome this situation. So it may be a benefit for V-Guard if HD cameras introducedinto the market.

FOCUS GROUP INTERVIEW

• A focus group interview was conducted at Self help group, in our nearest location .The respondents aged between 30-65 and the key learnings derived from the focusgroup interview as the follows.

• All respondents are very conscious about their security.

• They are very supportive to CCTV surveillance system to reduce crimes andatrocities against women.

Sl No Dealers name No .of brand Monthly sale

1 Oxygen 3 30-50

2 Zak electronics 3 20-50

3 Target 4 15-40

SURVEY

• A survey was conducted among 86 potential business and household users covering

textiles, jewellers, hotels, commercial building, residential apartments and

educational institutions.

• Majority of the respondents having CCTV surveillance in commercial

establishments, apartments &public sectors

• Expected spending :About 50 % of the customers were willing to spend more than

Rs.50,000 on surveillance systems and another 30% between Rs.25, 000 –

Rs.50, 000.

• Pricing of the product: Around 40% of the respondents rate the pricing of the

product as very good when compared to others in the market. 32% rate the pricing of

the product as good as they think the prices can be more modified.

• Quality of the product: About 55% of the respondents rate the quality of the product

as very good & 28% rate the quality of the product as good.

• Installation and service support was considered as one of the primary factors in

choosing a brand

PLACE

• Since V-Guard is in the industry for

the last 35 years, there is an

established, wide distributive network

all over India for the supply and

distribution of its products. V-Guard

has got 280 distributors, 12000

retailers and 1200 channel partners

across India.

• Some of the Chinese suppliers from

whom the assembled product could

be imported are:

• Ningbo Wincar Auto Accessories

Co., Ltd.

• Yuyao Darrow Industry & Trade

Company Limited

• Ningbo Klinsmann Intelligent

Technology Co., Ltd., etc

PRICE

• The product is priced upon the basis

of a combination of three factors;

Competition, Cost and use. As a

business, we look at the prices of the

competitors and their offerings and

we price at a point that falls within the

competitors‟ price. Another factor we

found that the life of our product is

depends upon the quality of

components. So cost of this raw

material is an important factor for

pricing our product also. Therefore

there is a huge demand for this

product.

Promotion strategy• Advertisement through Media like TV, FM, Newspapers etc.

• Social Media pages and advertisement

• Tie up with big builders, BMS companies and corporate

• Cross selling to existing client base

• V Guard CSR initiatives to promote safe work place and dwellings for Improved

safety, especially to women and children, in the light violence against women.

• Make social awareness Camp with School NCC cadets.

• Tie up with builders, contractors, architects, electricians. Using radio advertising

it is very cost effective and easily reachable to customers in urban areas who are

on the move and the housewives at the homes.

• Tie-Up with real estate companies, builders, industry forums like

FICCI, ASSOCHAM, CII, CREDAI etc will help drive the product awareness

and sales. Conducting safety drives campaigns, joining with NGOs working on

women issues etc. can increase the awareness of the product.

• We Suggest film actor Mr.Prithiviraj’as Brand Ambassador

• Tie up with builders, contractors, architects, electricians. Using radio advertising

it is very cost effective and easily reachable to customers in urban areas who are

on the move and the housewives at the homes.

Projects in India

SMART CITY INITIATIVES

• Smart Cities Initiative of the government along with UN-Habitat Safer Cities

programme(Habitat II, 1996) focus on personal safety and reduction of fear by

improving safety services and accountability to the community. Capturing and

collating data in real time is the lifeline of a safe city project, especially if the data

pertains to an incident leading to a security threat.

• Funds will be allocated to procure modern equipment's, CCTV systems, perimeter

security systems, network equipment. Several state governments are also moving in

this direction.

SMART POLICING

These agencies collect and analyse data to devise solutions to problems such as street

robberies, juvenile prescription drug abuse, repeat violent offenders, and

neighbourhood drug markets. For evidence tracking CCTV market helps.

FINANCIAL ANALYSIS

We will be setting up an Assembling unit where the components

sourced from vendors will be assembled into the finished unit.

This assembly unit will have a cellular manufacturing layout

•Initial investment : Rs. 562,25,000

•Interest on working capital loan :14.5%

•Interest on term loan : 12%

•Number of workers : 2

•Number of Territory Sales Officer : 2

Financial details :- Hyperlinked…