Growth of battery industry in India & future prospect: a year over year study.Summer Training ReportFrom: 24/05/2011 to 07/07/2011 At: D-145, Hosiery complex, Phase 2, Noida.

Submitted to: Mr. Anuj Gupta; Business Manager; D-145, Hosiery complex, Phase 2, Noida

Submitted By: Sandeep Bisht; A7002210001; Summer Trainee; MBA (Marketing & Sales)(2010-2012); Amity University; Lucknow Campus.

CHAPTER I INTRODUCTION

INTRODUCTION

As a part of Master of Business Administration course of Amity University Uttar Pradesh Lucknow Campus, and for the fulfillment of this course, I had to go through a seven weeks of summer training in a reputed organization, which would lead to the development of my managerial skills and gives me a glimpse of practical knowledge and market dynamics. I joined Bindal & Bindal Batteries Pvt Ltd. Noida Branch for the successful fulfillment of my summer training program, and my tenure of summer internship program was from 24/May/2011 to 07/July2011. Bindal & Bindal Batteries Pvt Ltd is an ISO 9001:2000 certified company catering to the global market with batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. since 1972. It is a well established and renowned manufacturer, exporter and importer of a wide range of automotive batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. We also specializes in the production of Heavy Duty PP Containers and Hard Rubber Containers for all battery application designed for long life of batteries. We have created a niche in the production and catering of various battery requirements to diverse industries all across the world. This unit has world class manufacturing plant to manufacture Tubular, Industrial, Starter and Solar batteries. Bindal & Bindal Batteries Pvt Ltd. is a noted manufacturer, exporter and importer of the following products:

Heavy Duty PP Containers Resin Bonded Hard Rubber Containers and Covers Lead Alloys and Sub-oxides PVC Separators Automotive Batteries Two Wheeler Batteries Tubular Batteries for industrial application Inverters.

The company is equipped with state of the art machinery and experienced workforce. The machineries at our unit include Injection Moulding Machines, Hydraulic Presses, etc. Our company immensely benefits from our technically expert team of professionals who enable

the production of modern range of all kinds of automotive batteries in accordance with the International Standards. It is the superior quality of our automotive batteries, containers & covers, lead alloys, suboxides, PVC separators, etc. that has kept us going in the competitive domain. Stringent quality checks are observed at every stage of the manufacturing process. This is the key factor facilitating flawless output, which has further led us to maintain success and continue to grow in the relevant mark The Battery Industry in India, which is worth Rs. 1,600 cr, has a market size of 2000 million units. The industry is dominated by dry carbon cell batteries and the demand to a large extent is from the rural areas. The Industry Focus highlights the classification of the battery market and the product portfolios of the domestic players in India. It also throws light on the recent developments like cheaper Chinese products being available and the market for rechargeable batteries growing at a rapid pace, which have affected the industry players. The demand for batteries, which has been fuelled by increase in the usage of small pocket radios and high-powered cameras, has improved dramatically. The shift, in the nature of demand (from D size batteries to pencil size batteries) has also brought in a drastic change in the demand pattern. Eveready Industries leads the Indian dry carbon cell market with over 40% market share. Though Eveready is a strong national player, Nippo has a prominent presence in the southern region. Novino, on the other hand, has a strong presence in certain pockets in the northern region, while BPL, a new entrant, has also managed to garner sizeable market share. The alkaline battery market only accounts for 5% of the total market. This is because the alkaline battery costs twice as much as a traditional zinc carbon battery. The higher pricing is due to the relatively higher cost of production. Contrary to the global trend, the higher price of alkaline battery has dampened the market's growth in India. Alkaline batteries in developed countries account for more than 70% of the battery market. The alkaline segment in India is dominated by the global brands: Duracell and Energizer.

The research work topic which was assigned to me was Growth of battery industry in India & future prospect: a year over year study.

The objective of the research work is : 1-To know the increasing use of different brands of batteries among customers. 2- To know the acceptance level of customers regarding different brands of batteries. 3- To know different uses of batteries i.e. in inverters, cars etc.

To achieve the objective more efficiently a strong understanding of the market was necessary in terms of offerings of competitive brands at different prices etc.; so to gain this information prior to starting the survey work, I went to different dealers in Delhi NCR region to access the current trends in market place. A lot of information which I received from my immediate head at Bindal who also helped me a lot to come to my conclusions and recommendations. After gathering the required information I started with my survey work; the survey was conducted in Delhi and the sample size chosen was 100. The tool of data collection used was questionnaire . A sincere effort has been made to present the information in a very lucid manner.

SANDEEP BISHT A7002210001..

CHAPTER II ORGANIZATIONAL PROFILE OF THE COMPANY

COMPANY PROFILEBASIC INFORMATIONCOMPANY NAME: BINDAL & BINDAL BATTERIES PVT LTD BUSINESS TYPE: Manufacturer, Trading Company, Agent, Distributor/Wholesaler, Other. YEAR OF ESTABLISHMENT: 1972 Standard Certification: ISO 9001:2000 ADDRESS: 21&22, Dr. Ambedkar Stadium, Delhi Gate. NUMBER OF EMPLOYEES: 501-1000 people COMPANY WEBSITE URL: www.bindalbatteries.com EXPORT PERCENTAGE: 20 % IMPORT PERCENTAGE: 60% PRIMARY COMPETITIVE ADVANTAGES: Superior quality, wide experience, competitive prices, durable products. SALES VOLUME: Rs 50 crore IMPORT VALUE:

Rs 10 crore NUMBER OF PRODUCTION LINES: 3 EXPORT MARKETS: SOUTH EAST ASIA, UAE. IMPORT MARKETS: Jordan, China, Amsterdam, Germany and Middle East Investment on Manufacturing Equipment: Rs. 3 crore OEM Service Provided: Yes Production Type: Automatic and manual No of Engineers: 7 Monthly Production Capacity: 10,000 batteries Memberships: Indian Lead Zinc Association, IBMA

Credit Rated: Yes

Product Range:

Heavy Duty PP Containers Resin Bonded Hard Rubber Containers and Covers Lead Alloys and Sub-oxides PVC Separators Automotive Batteries Two Wheeler Batteries Tubular Batteries for industrial application Inverters.

THE BACKGROUND

Bindal & Bindal Batteries Pvt Ltd is an ISO 9001:2000 certified company catering to the global market with batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. since 1972. It is a well established and renowned manufacturer, exporter and importer of a wide range of automotive batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. We also specializes in the production of Heavy Duty PP Containers and Hard Rubber Containers for all battery application designed for long life of batteries. We have created a niche in the production and catering of various battery requirements to diverse industries all across the world. Hard labor, dedication, leadership and foresight to attain success have led us to be globally recognized. Our export market for our automotive batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. is centered in South East Asia, UAE and our import markets cover Jordan, China, Amsterdam, Germany and Middle East. We are a member of Indian Lead Zinc Association and IBMA.

Strength:Most of the machines like Grid Casting, Pasting, and Parts Casting are from MAC USA, Writz and other world class battery plant manufacturers. This company is also equipped with its own laboratory with most advance battery testing equipments. Our batteries are approved from organization like Central electro chemical research institute, kariakudi, Indian Defense and Indian Railways. In fact we are among few elite companies who are approved to provide batteries to Indian Defense.

Core Management TeamThe core team of the group always keeps itself up to date with the latest technologies in various fields of battery manufacturing and is always eager to incorporate the latest trends in the product development process. The core management team consists of the 10 most qualified and dedicated personnel available in the industry and has collective experience of 350 years.

The Group ProfileBindal Batteries is the unique brand of Battery industry which has expertise in advance battery manufacturing. We have well experience team of developing and manufacturing advance battery which is use in various works. Our all batteries are authenticated by ISO. We are offering latest lead battery products for the demand of our global customer. Our all business process is aiming the maintained higher level of environmental integrity as well as cost effective manners. Bindal team achieved the best battery scrap recycling and became a true Indian multidimensional strategically stepped where demand is very high and quality is superlative

The Group:The Bindal Group is power house of three independent profit centers. 1. Bindal Batteries Pvt. Ltd. 2. Bindal Metals & Minerals Pvt. Ltd. 3. Bindal & Bindal Batteries Pvt. Ltd.

FEATURES OF THE PRODUCT

It is the superior quality of our automotive batteries, containers & covers, lead alloys, sub-oxides, PVC separators, etc. that has kept us going in the competitive domain. Stringent quality checks are observed at every stage of the manufacturing process. This is the key factor facilitating flawless output, which has further led us to maintain success and continue to grow in the relevant market.

Ribbed construction and porous PVC separators ensures resistance free circulation of electrolyte.

Heavy duty terminals are designed to give optimum current flow with minimum electrical resistance.

Intercell welded connections minimize the voltage drop and optimize the current efficiency for quick starting of the engine .

Safety vent plugs designed for elimination of electrolyte spray and easy exit of gases . Low antimonial grids for extra low maintenance. Durable positive plates designed to give long life. Negative plates designed to provide perfect charge to positive plates for maximum efficiency .

Injection moulded strong construction of PP containers.

ORGANISATION STRUCTURE

Core Management TeamThe core team of the group always keeps itself up to date with the latest technologies in various fields of battery manufacturing and is always eager to incorporate the latest trends in the product development process. The core management team consists of the 10 most qualified and dedicated personnel available in the industry and has collective experience of 350 years.

Management TeamMr. Manohar Lal Gupta: Chairman and founder of the group. His experience in government and corporate sector has proven him to be an able leader of the group. Dr. Vijay Kumar Gupta: Cofounder of the group. His professional experience in the business both national and international, has added incredible vision and direction to the team. Mr. Vinod Gupta: Finance & Administrative director of the group. His accounting & finance experience has given a very rapid growth & strengthening of ties among group companies. Mr. Ashok Gupta: Technical Director of Bindal group. Under his technical guidance company is equipped with all latest technology to provide the best product in the market. Mr. Ajay Gupta: Development Director of Bindal group. In addition to various developments he is actively engaged in after sales service on all India basis.

Mr. Sunil Gupta: Liason Director of Bindal group. His excellent approach & visibility makes the company one of the leading suppliers to various O.E.M's and bringing the technology to help reduce the production costs and increase the group efficiency. Mr. Naresh Soni: Executive Director-Smelting Operations. A graduate in Metallurgical Engineering from IIT Kharagpur, widely experience over the last four decades in the field of Non Ferrous Metallurgical operations both in India & Abroad. Served in senior positions in Hindustan Copper, Engineer India Limited, Zambia Copper Mines Zambia, and Oman Mining Co. Oman. Mr. R.D.Rastogi: Executive Director of the group. A highly qualified M.Sc, M.tech & MBA, battery technologist with 24 years of wide experience in the field national & internationally (Nicco Batteries Ltd. India, Chloride Batteries Ltd. Yemen) meet the force that has always been inspired by his innovative approach to product development and meticulously dedicated towards job related problems. Mr. Kapil Gupta: Marketing Director. Being an MBA his efforts in marketing makes the group to reach the significant level of achievements. Mr. Vipul Gupta: Just after finishing his engineering in Electronics, has taken the charge of new developments and export market of Bindal group. Mr. Aman Gupta: Import & Export director of Bindal Group. Master in Business Administration with 5 year of experience and have worked in different countries like India, Dubai, New Zealand, Australia and United Kingdom. Currently he works from Bindal Group from London office.

CHAPTER III PRESENTATION OF DATA AND ANALYSIS

OBJECTIVE OF THE RESEARCH

The research work is aimed at fulfillment of certain objectives, and those objectives are as follows:

1- To know the increasing use of different brands of batteries among customers. 2- To know the acceptance level of customers regarding different brands of batteries. 3- To know different uses of batteries i.e. in inverters, cars etc.

RESEARCH METHODOLOGY

To proceed with the research work in a structured way certain methodology is used so as to yield exact and correct results from the study. The methodology adopted by me is as follows:

Type of research design used:Research design is a basic plan, which guides the d ata collection and analysis phases of the project. It is a frame work, which specifies the type of information to be collected, the resources of data collection procedure. For my study I have used Descriptive Research design because Descriptive Research Design is a method which involves observing and describing the behavior of a subject without influencing it anyway.

Method of Data Collection:For completing my study I needed both primary and secondary data. Source of Primary data: Primary data is to be collected through survey and the tool used for survey is questionnaire which consisted of closed-ended questions and questions based on Likert Scale. Source of Secondary data: The data which has been collected by someone else and already passed through statistical process. This data was collected from the Internet. The companys broachers were of a great help, and other sources were also used.

Method of Sample Selection:SIMPLE RANDOM SAMPLING

Sample size and area of study:The survey is being conducted in Delhi NCR. The sample size of hundred(100) has been selected. The places being visited are malls, societies and banks.

Analytical tools used:The tools used for summarizing the data collected and to interpret the results is: Bar Graphs

These tools helped in easy understanding of the data and are useful to the company for taking the desired decisions on various aspects.

QUESTIONNAIRE ANALYSIS

1) Are you a owner of any kind of automobile, inverter etc kind of batteries.

Responses120 100 80 60 40 20 0 Yes No

Responses

Figure-1

This graph shows that all people use some kind of batteries related to this industry.

2) Of which brand your present battery is ?

Responses35 30 25 20 15 10 5 0 Exide Luminous Ameron Bindal Other Responses

Figure-2

3) Why you bought this brand of battery for your use?

Responses40 35 30 25 20 15 10 5 0 Brand name Repeat purchase Referral Increasing presence in market others Responses

Figure-3

4) How many batteries do you use in your household ?

Responses60 50 40 30 20 10 0 1 2 More than 2 Responses

Figure-4

5) Do you think that the use of these kind of batteries have become a necessity?

Responses120 100 80 60 40 20 0 Yes No Responses

Figure-5

6) Are you planning to buy any battery in near future ?

Responses80 70 60 50 40 30 20 10 0 Yes No Responses

Figure-6

7) Regardless of the above question for your future purchase decision for which brand of battery you will go for?

Responses40 35 30 25 20 15 10 5 0 Exide Luminous Ameron Bindal Other Responses

Figure-7

8) What influences you most while making a purchase decision for battery?

Responses40 35 30 25 20 15 10 5 0 Price Brand name Quality Durability Guaranty Responses

Figure-8

9) Does the use of these batteries have increased in your household in last few yrs?

Responses90 80 70 60 50 40 30 20 10 0 Yes No Responses

Figure-9

10) For what purpose you purchase these batteries? (i.e. for inverters, automobiles etc) Since this question was open ended question i received mixed responses which will be useful to write my further findings of my project.

CHAPTER IV FINDINGS, CONCLUSIONS AND SUGGESTIONS

FINDINGS

Based on the data which is presented in Chapter III and the whole sample size here are the results which are drawn from the interpretation of data:

Majority of people use some kind of batteries as their home appliances.

People perceive batteries as necessity.

Among all the factors that initiate the customer to buy batteries respondents have given price the top priority .

There are lots of competitors of Bindal batteries like Luminous, Exide , Ameron etc because of which Bindal is lacking somewhere.

Most of the respondents were planning to buy batteries in near future.

Most of the people use batteries in inverters and cars.

Most of the respondents make there purchase decision of there last brand because of brand name of the product.

Since the use of batteries is increased in last 3 years there is a hope of market expansion .

SWOT ANALYSIS

Based on the findings and the information gathered by me, the SWOT analysis for Bindal & Bindal Batteries is as follows:

Strengths

Weakness Strong competitors Not much known Low in demand. Unable to generate substantial

Bindal company is equipped with its own laboratory with most advance battery testing equipment.

Bindal batteries are approved from organization like Central electro chemical research institute, Indian defence and Indian railways.

business from potentially strong mass market (i.e. consumer market)

Bindal company uses most of the machines which are from MAC USA, Writz & other world class battery plant manufactures.

Opportunities Threats Shoud advertise and through publicity can gain customers attention. Can diversify. Can enter into new product line. Can enter into new areas which can yield higher profits. Shift of consumer preference towards known and recognized brands. Strong competitors like Luminous, Ameron and Exide.

The highly potential mass market is yet to be touched.

CONCLUSION

Based on the findings it can be said that there is a immense scope of growth in battery market due to rising level of disposable income of individuals and changing preferences of customers and in addition to these factors the present climatic condition which affected the power supply and thats why people needs batteries atleast to use inverters. The main factor that influences customers to buy batteries are price so a company to be successful can use its after sales service network and unique and low pricing as its unique selling proposition. Bindal company is doing well since 1972 and they have lots of channels in the overseas as well but they should target their own country first, and for that they shoud do strong marketing with the help of advertisements so that this brand gets famous and recognized and can bear the competition as well.

RECOMMENDATIONS

Based on the findings these are the following recommendations for the company:

There is a lot of scope of growth in this company.

To survive the cut-throat competition and to capture the untapped market Bindal should constantly focus on product innovation to appeal more efficiently to its target market segment.

Bindal should put more emphasis on its marketing efforts to increase its awareness about products among target customers as its gives customers more trust on it.

In its marketing campaign it can also emphasize that they cater excellent after sales service which will induce customers to buy Bindal batteries.