part a ifb full project final report

Organization study of IFB Automotive Pvt Ltd

GCEM, Department of Management Studies

PART –A

CHAPTER - 1 INDUSTRY PROFILE

Auto components Industry

Introduction

Indian auto component industry is robustly driven by the growth in demand for

automobiles. The sector has become a lucrative business proposition for global players,

majorly owing to two factors. The demand for automobiles is increasing day by day in

the country. India, a market with high potential for the automobiles sector, is expected to

witness a three-fold increase in demand for automobiles by 2020. Secondly, all major

global auto-makers are establishing their bases here due to highly positive business

environment, favorable policies and government support.

The Automotive Component Manufacturers Association of India (ACMA) is the

nodal agency for the Indian Auto Component Industry. Its active involvement in trade

promotion, technology up-gradation, quality enhancement and collection and

dissemination of information has made it a vital catalyst for this industry's development.

Its other activities include participation in international trade

fairs, sending trade delegations overseas and bringing out publications on various

subjects related to the automotive industry. The Automotive Component Industry's

output amounted for the financial year 2010-11 US$ 39.9 billion with a growth rate of

33% against financial year 2009-10

History of Auto Component Industry

The Indian auto component industry started out small in the 1940’s,supplying

components to Hindustan Motors and Premier Automobiles. In the1950’s,the arrival of

Telco, Bajaj, Mahindra and Mahindra led to steadily increasing production . In India,

the vehicle industry till the 1980s was characterized by an oligopoly structure, small-

scale operations, high cost of production, technological obsolescence and numerous

government regulations. During these periods, there was a tendency for vehicle



manufacturers to produce parts and components in-house and components manufacturers

started mainly to cater to replacement demand.

It was however in the 1980, with Maruti, that growth suddenly accelerated and the

industry came of age. Before entry of Maruti, majority of the components were produced

in house by vehicle manufacturers leaving uneconomic volumes and lower profits

margins. But the entry of Maruti Udyog Ltd (MUL) in mid 80s led to a paradigm shift in

the auto ancillary sector. The Boon time for the auto components industry started with

the arrival of India’s people’s car. This gave birth to a variety of new age auto

components manufacturers who manufactured components that combined the best of

technology with quality. With the success of Maruti, the paths of Indian auto component

industry took an upswing with the climbing of export Charts as a result of low cost labour

and material. The giant players in automobile industry encouraged and facilitated growth

of auto component industry around their units.

Graph 1.1: MARKET STRUCTURE OF INDIAN AUTO COMPONENT

INDUSTRY

Supply to the Original Equipment Manufacturer constitutes the major share of the

Indian auto component market, at 50 per cent of the total market, followed by the

replacement market. Exports account for roughly 15 per cent of total sales. In terms of

the component type, engine parts lead the sales, followed by drive transmission and

steering components.



Table 1.1: INDUSTRY’S COMPONENTS IN INDIAN MARKET

Chart 1.2: Various Product Categories in Auto Component Industry

Performance growth of Auto Component Industry

The growth in the Auto Component Industry over the last few years has been

fuelled to a large extent by the investments that have flown into this sector. The auto

components industry has attracted investments, to the tune of US$ 5.4 billion, in 2006-07

alone. The bulk of these investments have been made by Indian companies, which have

expanded their manufacturing capacities. India expects to attract US$ 5 billion in foreign

direct investment (FDI), over the next five years in this sector.



Present Scenario and GDP of Indian Auto component Industry

The Indian auto component industry is expected to achieve an annual turnover of

USD 110 billion by 2020, for which a total investment of USD 35 billion is likely to be

made.

According to a report, jointly prepared by Automotive Component Manufacturing

Association of India (ACMA) and consultancy firm Ernst & Young, the industry is

expected to contribute 3.6 per cent of India's GDP by 2020 from the current level of 2.1

per cent.

New heights have been scaled by the industry in the year 2010. In January 2010,

total automobile sales in the domestic market reached 11,14,157 units, the Charts shows

an increment of 44.9% compared to the sales units of 7,68,698 of same period last year.

Even for the month of April-October 2010 after a gap of 11 years, total automobile

sales in India stood at 11,20,081 units. Annually, the Indian automobile industry is

growing at an average rate of 30% and marking itself as one of the fastest growing

industries in India.

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CHAPTER-2

COMPANY PROFILE

2. a. Background and Inception of the company

IFB Automotive Pvt. Ltd., a pioneer in design, development and manufacturing

of Seating systems, Door systems, Latches and Automotive motors has built a

reputation as a leading solution provider for safety critical and comfort related products

in the automotive industry. To meet the growing needs of the auto industry, IFB

Automotive has spread its manufacturing base across different parts of India to ensure

just in time supplies to its customers.

IFB Industries Ltd is an Indian company. The company is engaged in

manufacturing and marketing engineering products. They operate in three segments,

namely engineering, home appliance and others. The engineering divisions are located

at Kolkata and Bangalore.

The company's product range includes fine blanked components and sub-

assemblies, using Fine blanking technology. They also provide household appliances,

including washing machines, dryers, microwave ovens, and dishwashers. In addition,

they manufacture motors for white goods and automotive applications.

IFB Industries Ltd was incorporated in the year 1974 as Indian Fine Blanks Ltd

in collaboration with Hienrich Schmid AG of Switzerland. The company was

established with the objective of manufacturing fine blanking tools press tools and fine

blanked components used in a wide range of precision engineering industries. In the

year 1985, the company took 4.84 acres of land on lease at Gangarampur in West

Bengal for the manufacture of high technology machines as well as for future

expansion-cum-diversification programs.

In the year 1988, the company set up a new division, namely Project and

Construction division to take up projects abroad as well as in India. In addition, the

company in association with P A Rentrop Hubert and Wagner GmbH & Co KG West

Germany set up a joint venture company called RHW India Pvt Ltd in India for the

manufacture of automatic seat adjustment mechanism.



In the year 1989, the company entered into collaboration with Bosch-Siemens

Hausgerate GmbH, Germany for production of fully automatic washing machines and

for the manufacture of the state-of-the-art domestic appliances.

IFB Automotive Milestones

Year Division

1989 IFB Automotive Seating & Systems, Bangalore Established

1989 Launched Seat Recliners

1995 Launched Seat Sliders

1995 Launched Window Regulators

1999 Launched Blower Motors

2000 Launched Radiator Motors and Condenser Motors

2003 Launched Door Latches

2003 R & D Center, Bangalore Established

2004 Launched Seat Latches

2004 Launched Door Modules

2005 Launched High strength recliners and sliders

2006 Launched Seat Frames

2007 Launched Window Regulator Motors

2008 Launched Recliner cum Flat Fold, Adjustable Arm Rest, Rotary Recliner

2010 Launched light weight and cost effective Power Window Motors

2011 Launched Power recliner and Power Slider

2011 Launched Fan Motor and Shroud Assembly



2. b. Nature of business carried

IFB Automotive Pvt. Ltd. is a pioneer in Design and Manufacture of seating

systems, door systems, latches and automotive motors. The company has built a

reputation as a leading technology provider for safety critical and comfort related

products in the automotive sector.

2. c. Vision, Mission, and Quality Policy

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.

IFB Automotive Pvt ltd, Company’s Punch Line:

“Your Safety and Comfort is our Concern”

Quality Policy:

Quality Policy objective statements of IFB Automotive Pvt Ltd are as follows:

To visualize customer needs and provide satisfaction through prompt supply of

value added goods and services continually.

To achieve and sustain excellence in performance through use of appropriate

technology, cost efficient operations and team work of all associates.

To have world class human resources through training and motivating them for

higher aspirations and also maintain safe working environment.



IFB has good quality systems and based on the credits given by customers the

following are the quality credentials are:

YEAR QUALITY CREDENTIALS

1998 ISO 9000

2000 QS 9000

2003 ISO 14001

2003 TS 16949

2004 100 PPM

2006 FORD Q1 STATUS

2012 6 SIGMA JIT

2.1 Chart showing the quality credentials at IFB Automotive Private Ltd.



2.d. Product Profile

IFB Automotive Pvt Ltd, are into the production of 3 major categories of

products, they are as follows: -

SEATING SYSTEMS

DOOR & LATCH SYSTEMS

AUTOMOTIVE MOTORS

2.2 Chart showing the IFB automotive Products: At the core of safety.

Seating Systems

IFB Automotive designs and manufactures multi functional seating systems

configurable to cater to specific Original Equipment Manufacturer requirements.



The company backed by its comprehensive expertise in mechanical & electronic

components is able to produce:

Seat Recliners – Lever type & Rotary

type

Seat Sliders

Adjustable Arm Rest

Height Adjusters

Front Seat Back Frame Assembly

Front Seat Cushion Assembly

Two Position Adjuster

Seat Floor Latch

Rear Seat Back Latch

Recliner cum flat fold

Power sliders

Power Recliners

Seating Systems is an across-the-board solution provider of seating mechanisms

with capability of supplying both manual and powered mechanisms. The mechanisms

are designed to adjust basic functions; angle of back rest, linear movement of the seat

and height adjustment of the seat to augment the comfort systems of the car. This

system at the heart of seating empowers automakers to offer the end users safe &

pleasure seating and driving experience.

2.3 Chart showing products at seating division(seat recliner, seat slider, front seat

back assembly)

Door and Latch Systems

Doors comprise the second most complex system in the vehicle since they

combine aesthetics with safety, reliability & functionality by accommodating many

intricate mechanisms in a compact space.



IFB Automotive is the only full service system supplier in India, with design &

manufacturing capability for window regulators, latches and door modules.

The company is proudly associated with all major Original Equipment

Manufacturer requirements and has been supplying window regulators, door latches,

hood and trunk lid latches. The company designs and manufactures powered and

manual window regulators and latches.

Our diverse manufacturing facilities are supplemented by our continual R&D

efforts. All our assembly modules are equipped with mistake proofing and online

functional checks to deliver consistent quality products.

IFB have an excellent and dedicated engineering team that develops:

Assembly modules with appropriate level of automation

Special purpose machines & online testing machines

Jigs, Fixtures, Tools etc., with in-built mistake proofing.

2.4 Chart showing the products in door and latch system(window sliders(manual

and automatic), doors )

Automotive Motors

The Motor Division was started in 1999 to produce HVAC Blower motors &

Condenser motors for Air conditioning, Engine Cooling Fan Motors for various

passenger car applications in India.



At present IFB manufacture five lakhs motors annually with a planned capacity of 1

million motors. The division has entered into a strategic license agreement with

Siemens in India.

Product ranges includes:

HVAC Blower Motors 12V / 24V

Power rating upto 360W

Condenser Motors 12V / 24V


Engine Cooling Fan Motors 12V / 24V


Power Window Regulator Motor 12V

Torque upto 16Nm

Fan Motor and Shroud Assembly

2.5 Chart showing the products in motor division(fan motor, window motors )



2.6 Chart showing IFB Company’s Esteemed Customers

2.e. Area Of Operations

To meet the growing needs of the auto industry, IFB Automotive has spread its

manufacturing base in different parts of India to ensure just in time supplies to all its

customers.

Nationally the company is situated in following places:

Bangalore - Main Manufacturing Plant and R&D Centre

Chennai - Assembly Plant to support Southern Region Customers

Pune - Assembly Plant to Support Western Region Customers

Binola&Rudrapur - Assembly Plant to support Northern Region Customers



2. f.Ownership Pattern

IFB Automotive is a Private limited company

A Private Limited Company is a type of company that offers limited liability to

its shareholders but that places certain restrictions on its ownership.

BOARD OF DIRECTORS

KEY POSITION NAME Shareholder Pattern

%

Chairman MrBijon Nag 32%

Joint Executive Chairman

& Managing Director

MrBikramjit Nag 28%

Director Dr. RathindraNathMitra 26%

Compliance Officer Mr. G. Raychowdhury 14%

2. g. Competitors Information The main competitors of IFB Automotive Company are

India Based:

• Swaraj

• IEPL

Other competitors globally are:

• DAS – Korean ,

• Faurecia – France ,

• Keiper – Germany

• Imasen – Japan

• CRH – Germany

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Major Competitor’s Information

FAURECIA

It is one of the largest international automotive parts manufacturers in the world.

Company Products Market Share (%)

Faurecia Seats, Cock pits, doors,

acoustic packages, front

end and exhaust.

57.4

Headquartered in Nanterre, France, Faurecia operates over 238 production sites

and 38 R&D centres in 33 countries worldwide.

Faurecia joined the United Nations Global Compact in 2004. Faurecia, the world's

number three seat supplier designs and produces the complete seat and its main

components: frames, adjustment mechanisms, runners, foam and covers, and safety and

comfort features. This group accounts for 35% of the company's sales.

SWARAJ

Formerly Punjab Scooters Limited, a sick unit in backward area, was revived by PTL in

1980 with full management control. SAL discarded unviable scooter line and

diversified into manufacturing Seats,

Year of Establishment: 1980

Products & Services

Company Products %of Share

Swaraj Auto Components, Automobile Seat,

Recliners, Seating System, Tractor Seat

40.6

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2. h. Infrastructural Facilities

IFB automotive has a State of the Art Manufacturing facility. The management

has provided adequate infrastructure facilities to carry out departmental and

manufacturing activities, like.

Buildings

Machines and tools

Parking facilities

Conference Rooms

Cafeteria/Canteen

Medical Facility Room

Material Handling & Safety Equipments Room

Quality control Laboratory and Testing Equipment Room.

2.i. Achievement / Awards

IFB Automotive is known for its good quality manufacturing of fine blanking parts and

service. For their excellence performance they have won many awards and

achievements as follows:

ACHIEVEMENTS

YEAR QUALITY CREDENTIALS

1998 ISO 9000

2000 QS 9000

2003 ISO 14001

2003 TS 16949

2004 100 PPM

2006 FORD Q1



AWARDS

AWARD NAME COMPANY

Design & Development award Maruti Suzuki

Vendor performance award Maruthi Suzuki

2. j. (Fig: 2.7)Work Flow Model – Manufacturing process (End to End)

IFB Sub Assembly

Packaging

Customer

Plating / Coating IFB Final Assembly

Vendor

Raw Material

Sub-contract(drilling)

IFB Automotive

Stores



Manufacturing process (End to End)

Raw material–In this stage raw materials flow from suppliers to the

manufacturer or assembling house.

IFB Automotive Stores – In this stage raw materials are received and stored in

warehouse for further use.

Sub Contract–In this stage its is contract given for the out sourcing company

for making raw materials into the proper auto parts and sending it back to IFB

company.

IFB Sub Assembly – In this stage the auto parts which is been sent back from

sub contract to the stores at IFB then it goes into the manufacturing plant for sub

assembling the auto parts.

Plating or coating – At this stage after the process of assembling happens then

it is sent to plating/ coating of the parts this is from vendor or outsourced.

IFB final Assembly – At this stage after the process of plating / coating

happens the materials is been sent back to the IFB final assembly were the

materials are assembled finally.

Packaging – After the process of final assembly happens then it is packed at

IFB and stored in warehouse for final dispatch.

Customer – In this stage after the products is been manufactured and packed

based on the order of the customers the products are been delivered to the

ultimate customers.



2. k. Future Growth & Prospects

The emergence of India as a major player on the global economic landscape has

triggered an era of high growth across all the sectors. The company wants to expand

their business by producing innovative products for next 3years (seating systems).

Following are the future plan of action at IFB Automotive Pvt ltd:

Power sliding mechanism

Head rest Tilting

Lumbar Support

Power Recliner Mechanism

Universal sliders - S2K10

High strength L2K9 Recliner

High strength Low cost recliner – L2K10

Heavy Duty ABTS Recliners

Rotary recliner

Rotary cum lever

Lumbar Support mechanisms

Head Rest Tilting mechanisms

Slouch mechanism



CHAPTER-3

MC-KENSYS’S 7S MODEL

The 7-S framework was developed by the consultant at the Mckinsey Company,

a very well-known management consistency firm in USA, towards the end of 1970’s to

diagnose the cause of organization problem and to formulate programs for

improvement the 7-S frame work.

The 7s model is a tool for managerial analysis and action that provides a

structure with which to consider a company as a whole so that the organization

problems may be diagnosed and strategy may be developed and implemented. The 7s’s

is a framework for analyzing organization and their effectiveness. It looks at the seven

key elements that make an organization successful or not.

Chart 3.1: MC-Kensys’s 7s Frame work.



3. a. STRUCTURE:

The structure is the skeleton of the whole organizational edifice. It is built by

dividing the total task into smaller groups and creating coordination among the groups.

The structure here is mainly concentrated on seating systems because the major

turn over and the major part of the business carried is under seating division only so,

the structure is FUNCTIONAL ORGANIZATIONAL STRUCTURE based on

Seating division at IFB Automotive Pvt Ltd.

Chart 3.2: Showing Organization Structure of IFB Automotive Pvt Ltd.

VICE CHAIRMAN

CEO

HR SCM V.P & HEAD SEATING SYSTEM

DOOR SYSTEMS

LATCHES IT

PGRM MGMT MANAGER

R & D MANAGER PROCESS ENGG & OPERATIONS

QUALITY D & D

Designers

Analyzers

Designers

Analyzers

Designers

Analyzers

Shift Supervisor

PPC

SQA

Testing

Process QA

Designers

Analyzers

Drafting



Various Departments at IFB Automotive Pvt Ltd

HR department

Human resource management at IFB Automotive Pvt Ltdis one of the most

important functions it includes Resource Management Group and learning and

development, also comprises of various sub-functions that facilitates the identification

and development of talent that helps the organization meet its business objective.

The various functions are as follows:

• Talent planning – includes functions like manpower planning, staffing, skill

mapping HR budgeting.

• Training –aims at enhancing the skill. Also takes care of induction and pre

process trainings.

• Compensation and benefits- envisages the compensation and benefits practices of

benchmarking, fitments, policies and guidelines. Marketing department

Marketing department look after all the marketing activities like sales, distribution

and business development etc.

Functions

• Order taker

• Creating quotations

• Answering the customer queries

• Delivery of products in time

Finance department

The main purpose for any organization to exist is to have financial gains, thus

each activity of the organization should justify the cost attached to it. Finance is life

blood of any organization hence it becomes very important to manage the funds properly.

The finance department consists of diverse procedure for accounts related to personnel,

costing budgets, tax and credit, general accounts, bank and payroll, bill collection etc.



IFB Automotive Pvt Ltd has a strong financial background and financial

department manages and controls the financial activities of the organization like,

• Budget allocation

• Salary distribution

• Bill payment etc

Production department

Production department is one of the important functional area of IFB Automotive

Pvt Ltd. The function of this department is,

• Work process management: managing and controlling furniture manufacturing as

per the plan and schedule.

• Inventory management: managing and controlling inventory

Design department

IFB Automotive Pvt Ltdis known for best designing in the automotive products in attractive design. All the credit goes to designing department.

Functions

• Designing auto products • Creating innovative designs

R&D department

IFB Automotive Pvt Ltd has research and development department which enables the company to identify the latest trends of the automotive products manufacturing industry.

Information technology department

Information Technology Dept plays a major role in connecting the communication between customers, suppliers and in-house employees through email and internet.

Supply chain department

Supply chain refers to a business or organization attempting for supplying of goods or services in and out the company to accomplish the goals of the enterprise.

Functions are

• Order placing for raw material • Analyzing of suppliers



3. b. SYSTEM:

A system refers to formal process and procedures are used to manage the

organization.

The main system used here to communicate to the higher authority is Information

Technology, Word of mouth, manual form of writing, SAP for Material handling, and

TS 16949 system. The company has provided internet facility for communicating with

the clients through mails and telephone facility.

ISO/TS16949 is an ISO technical specification aiming to the development of

a quality management system that provides for continual improvement,

emphasizing defect prevention and the reduction of variation and waste in the supply

chain.

SAP is a German software corporation that makes enterprise software to manage

business operations and customer relations SAP is the market leader in enterprise

application software.

SAP Business One software is used by IFB, which manage sales, track inventory,

monitor customer demand, coordinate loyalty programs, and view supplier schedules all

in a single system. The software provides support for:

• Order processing – picking, packing, final delivery – and shipment tracking

• Managing inventory across multiple warehouses and locations

• Predicting what customer will buy based on past transactional data, and managing

production and stock levels to match demand

• Tracking customer contacts and purchasing preference

• Executing more targeted promotions, offers, and campaign management

• Increase sales by reducing stock-outs, so you have the right items on hand when

customers come to the store.

• Broaden your market reach with online presence and sales.

• Reduce inventory costs through accurate and streamlined inventory and

distribution processes.

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3. c. STRATEGY:

Strategy is a plan or course of action in allocating resources to achieve

identified goals over time. Unlike tactic, strategy is well thought and often rehearsed. It

transforms the organization from the present position to the new position described in

the objectives, subject to constraints of the capabilities.

Quality Assurance Strategy.

o The company is planning to give best Quality products

o Company’s aim is to provide the best quality under competitive

pressure.

Pricing/Cost Strategy.

o IFB automotive provides best quality products at best price, compare to

that of the competitors.

Delivery Strategy.

o The company mainly concentrates on the On Time Delivery of the

products whenever the clients orders for the products.

3. d. STYLE:

Style is the way in which key managers behave in achieving organizational goals, that is

the management style. IFB Automotive posses PARTICIPATIVE LEADERSHIP

STYLE. Where the top management take suggestions from the subordinates and work on

it and if its really beneficial to the organization then they will implement it.

These decisions are made through mutual exchange of knowledge and by sharing

the experience of the employees. The top management consults their immediate

subordinates in case of any important decisions, which are of strategic in nature.



Implementation:

Toyota gave a contract for manufacturing of Seat sliders and recliners on Dec 29th 2011,

for the same reason there was a conference held on Jan 2nd 2012 with all the employees

and managers. It had given an opportunity for employees to participate in decisions like

designing of products. A best design was selected based on employee’s suggestion and

opinions and the same design was implemented for manufacturing the products.

3. e. STAFF:

Staffs are personnel categories within the organization, such as engineers, sales

persons, etc. Unlike traditional organizations, new leading organizations put more

emphasis on hiring the best staff. They provide their staff with rigorous training and

monitoring support, and give incentive for their staff to achieve professional excellence.

This forms the basis of these organizations’ strategy and competitive advantage over

their competitors.

Table 3.2: Showing Total Staff- As on: 10th Jan 2012

Key position No. of employees Duties and responsibilities Vice Chairman 1 -Strategic planning

-creating vision and mission CEO 1 -Decision maker

- Leader Functional Managers 11 -Ensuring that new

appointees are introduced to the policy during their induction -Ensuring that line managers live up to their responsibilities to approve flexible

Operational Employees 850 - Ensure that the quality standards of product are met.

IT Executives/Technical Employees

292 -handle technical problems - technological skills

R&D and Design Personnel’s 52 -prepare innovative designs Marketing Executives 15 -handle advertisement

objectives. - handle promotions

Total number of employees 1222



3. f. SKILL:

Skill is the character that one should posses to perform a given job. It includes

those characteristics company expects its members to have to perform the assigned job

effectively.

Key position Skills required

CEO & Vice Chairman Leading Motivating

HR Manager Involves motivating a large team of people with diverse occupations.

Time-management and scheduling skill.

Strong communication skills Organizational Skill Management skill Analyzing skills of employees

needs. Maintaining the employee’s

records.

Assistant Manager Working within a team environment

Numerical skills Flexibility positive attitude Able to work evenings and

weekend shifts Finance and accounting officers

Accounting procedure Taxation Balance sheet analysis Some fare idea about financial

product Re-consolidation of bank accounts

Basic computer knowledge in (tally and MS Excel

Auditor Complete knowledge about accounts

Tax laws Financial analysis Latest rules and regulations Masters in finance aspects



Marketing executives

Should have a plan advertising Able to convenience the customers. Should have plan for meeting

people interacting with them Marketing the products

Security

Good health and unblemished past

record If x- service man should have been

discharged with exemplary character they should be prepare to work during nights also

The basic knowledge of control over fire accident.

Information technology executives

They should know technical skills They should have the capacity of

handling h/w and s/w. They should be having the

capability of rectifying errors.

Operational employees

Problem solving skills Interpersonal skills Convincing skills technical skills Learning skills Machine handling skills

Measures taken to close skill gap:

To address the skill gap the company had conducted various training programs

some of the major training programs are as follows

• On the job training is given for operational employees to improve the efficiency

in their works.

• Presentations - Regular presentation will be given by the experts from IT

departments about the latest updates and how to implement the latest technology

available in the market, to all the employees of IFB Automotive pvt ltd.



3. g. SHARED VALUES:

Shared values refer to a set of values & aspirations that goes beyond the

conventional formal statement of corporate objectives. Culture of an organization is

usually determined by some of the value benefits and working practices that exist

within an organization operational standard.

The Shared values that are followed at IFB are as follows:

• ‘Your safety and comfort is our concern’.

• Role model in driving social responsibility.

• Respect for individuals.

• Learning and sharing.

• Reliability, Credibility, and Legality

• Good Interaction Between the higher authority towards the lower.

• Sensitive towards the environment, safety and health of the employees.



CHAPTER - 4

SWOT ANALYSIS

A scan of the internal and external environment is an important part of the

strategic planning process. Environmental factors internal to the firm usually can be

classified as Strengths (S) or Weaknesses (W), and that external to the firm can be

classified as Opportunities (O) or Threats (T). Such an analysis of the strategic

environment is referred to as a SWOT analysis.

The SWOT analysis provides information that is helpful in matching the firm's

resources and capabilities to the competitive environment in which it operate. As such, it

is instrumental in strategy formulation and selection. The following diagram shows how a

SWOT analysis fits into an environmental scan:

(4.1) FRAME WORK OF SWOT ANALYSIS:

SWOT ANALYSIS

INTERNAL ANALYSIS

STRENGTHS

EXTERNAL ANALYSIS

WEAKNESS THREATS OPPURTUNITIES



STRENGTHS

A large Indian Original Equipment customer base.

Long presence and proven domain knowledge

Emphasis on continuous education & training.

Techniques for aligning digital strategy with organization and marketing strategy.

Established R&D working on Future products

Every employee is given an equal opportunity to develop himself and grow in his

career.

They have in house engineering management facility which is an advantage.

The company is indigenous in its manufacturing & designing i.e., SAP system is

used for designing and maintaining database.

WEAKNESS

They are not exposed much towards Branding and brand strategies related

aspects.

They are not focusing much on promotional activities.

High cost of Fine Blanking parts which effects in purchasing of raw materials.

Development lead time is too high since the company is having their own

designing department which requires more time in manufacturing products.

Due to age or personal reasons employees may leave the organization which

deplete skill force.



OPPORTUNITIES

India has been chosen as a global hub for Car manufacturing and exports.

Great scope for power driven machines.

Global OEMs looking at India as an auto parts sourcing base.

Growth in existing products and market, volume growth, increasing profit.

Increasing market share and customer share.

Growth in new product, existing markets and new markets.

In India and abroad the company has lot of opportunities in technical aspects for

designing and developing a product.

The company has got huge customers for business activities to survive in global

competition world.

THREATS

Tremendous pricing pressures due to local competition

Regular supplies issues may force loyal customers to switch to other companies

products.

Poor Supplier Base may affect regular supplies and delay in development.

The company has to face huge local and global competition that compete

(European, Korean and Japanese manufacturers) with well-equipped

infrastructure.



Table 4.1: Showing SWOT Analysis.

STRENGTHS

In house engineering management

facility.

Every employee is given an equal

opportunity to develop himself.

Style of equal participation helps in

making effective designing.

R&D working on unique Future

products.

SAP system is used for designing.

WEAKNESS

Lack in branding and brand strategies.

High cost of Fine Blanking parts.

Lack in promotional activities.

Development lead time is too high

OPPORTUNITIES

Global OEMs looking at India as an

auto parts sourcing base.

Growth in new product, existing

markets and new markets.

They have got huge customers for

business activities. Great scope for power driven

machines.

THREATS

Pressures due to local competition

Customers are switching to other

companies products due to supply

issues.

Poor Supplier Base affecting regular

supplies.

They have huge local and global

competition with well-equipped

infrastructure.



CHAPTER - 5

ANALYSIS OF FINANCIAL STATEMENT

(5.1) BALANCE SHEET as on March 2011



(5.2) PROFIT AND LOSS ACCOUNT for the year ended March 31, 2011



Table 5.3: showing the Ratio Analysis in IFB as on 2010-2011.

Ratio Analysis 2011 2010

Current Ratio 1.4191 1.7990

Asset Turnover Ratio 3.70329 3.9808

Return on Assets 0.2060 0.2055

Current ratio:

Current ratio shows that in year 2010 it was 1.7990 and in the year 2011 it was

1.4191. The bench mark of the current ratio is 2:1. Therefore the company liquidity

position is very favorable.

Asset Turnover Ratio:

Asset Turnover Ratio shows that in year 2010 it was 3.9808 and in the year 2011

it was 3.70329. As compared to both the years we can infer that there is a slight decrease

in the asset Turnover ratio, due to improper utilization of assets. By decrease in the asset

turnover the firm has increase costs and will decrease the eventual profit to its owners.

Return on Assets:

Return on asset shows that in year 2010 it was 0.2055 and in the year 2011 it was

0.2060. This is due to increase in EBIT. There is an increase in both fixed assets and

current assets therefore total assets are increased. Earning power of IFB APL is quite

satisfactory. The company is performing well.



CHAPTER-6

LEARNING EXPERIENCE

The whole project provided a lot of experience and helped to know about the

management practices in real and how it differs from those of theoretical knowledge and

the practically in the real life.

This training was framed to give an exposure towards how an organization works

and how theories learned in class rooms relates with actual events happening in an

organization.

Although I came to know lot of similarities between the theory and the practical

situation in the company and also there were many differences in their working style. The

main objective of practical training is to develop skill in student by supplement to the

theoretical study of business management in general.

Company helped to gain real life knowledge about the industrial environment and

business practices. Professors give us theoretical knowledge of various subjects in the

college but we practically exposed of such subjects when we get the training in the

organization.

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 IFB AUTOMOTIVE

PVT LTD structure, work culture, products and services, technological

advancements.

The experience at IFB AUTOMOTIVE PVT LTD 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.

part a ifb full project final report

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