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A

Project Study Report


On
Training Undertaken at
A Market Survey on Air Conditioners with special reference to Voltas

Submitted in partial fulfillment for the


Award of degree of
Master of Business Administration

SUBMITTED BY:

SUBMITTED TO:

ABDUL MANNAN PANWAR

Dr. Sonal Jain

MBA 1V SEM

DEEPSHIKHA COLLEGE OF TECHNICAL


EDUCATION JAIPUR

(2015-2016)

PREFACE
The project work on the A Market Survey on Air Conditioners with special
reference to Voltas PRODUCTS OF AIRCONDITIONING which. has been a great

experience for me. In fact it was a learning process. Earlier I was unaware of many
things regarding industry research, analysis and market condition but after
undergoing this project, I have got some knowledge of it at least up to a certain
extent for completing this project I used secondary data. I have collected secondary
data from internet, news paper, Text books, and magazines etc.

Throughout the development of the project it has been my own endeavor to tailor like
approach, subject matter and presentation according to the requirement of its
readers. The language has been kept simple and the entire discussion has been
built on logical and coherent outlines.

ABDUL MANNAN PANWAR

MBA IVSEM

ACKNOWLEDGEMENTS
I express my sincere thanks to my project guide, Md. Mohtab Alam (AREA SALES
MANAGER), for guiding me right from the inception till the successful completion of
the project. I sincerely acknowledge his for extending their valuable guidance,
support for literature, critical reviews of project and the report and above all the moral
support she had provided to me with all stages of this project.
I would also like to thank the supporting staff Pundit of my college faculty, for there
help and cooperation throughout our project.

ABDUL MANNAN PANWAR

MBA IVSEM

EXECUTIVE SUMMARY
The project deals with the Study into the marketing mix of Voltas in the
Mumbai Air-Conditioner Market. The report consists of the primary data
obtained from the dealers. The attributes, which defined the data, were Shelf
Space, Window Display, Prices Given, P.O.P. Material, Dealer Preference,
General Positive and Negative Attributes for various Brands, Dealer Interface,
and Finance Schemes Offered.
In all I visited 50 outlets spread all over Mumbai (includes dealers and
retailer), who dealt in air conditioner I also interviewed 44 customers at
showrooms across Mumbai.
Data thus obtained was then grouped and analyzed, after which the
inferences were drawn. I observed that L.G. was undoubtedly the market
leader.
In Mumbai AC market LG has the highest penetration, as it is available in
almost 75% of the outlets while Hitachi is present in only 64% of the outlets.
L.G. also leads in the other categories like the window display (40%), shelf
space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34%
in the respective categories.
Although Voltas is No.2 brand in Mumbai region but it has the highest
corporate customer or we can say, institutional sales in comparison to other
AC brands of the outlets visited, 44% claim L.G. to be the top Brand whereas
Voltas has 21% of the outlets claim it to be the top Brand.
The strengths of L.G. lie in its low price andgood quality whereas Hitachis
strengths lie in its superior quality and post sales service.
Whereas, on the negative side the claim that LG is not as durable as other
brands & has a life expectancy less than other brands like Voltas, General etc.

TABLE OF CONTENTS

S.

Descriptions

Page no.

NO.
1. Introduction to the industry
2. Introduction to the Organization
3. Research Methodology

1. Title of the Study


2. Duration of the Project
3. Objective of the Study
4. Types of Research
5. Collection Method and Sample Size
6. Scope of Study
7. Limitation of Study
4. Data Analysis and Interpretation
5. Facts and Findings
6. Swot Analysis
7. Conclusion
8. Recommendation and Suggestion
9. Appendix
10.
BIBLIOGRAPHY

INTRODUCTION OF THE INDUSTRY


5

In 1902 Dr. Willis Havilland Carrier invented and secured the patent for a
weather control concept air conditioning. Ever since, life hasnt been the
same. The air conditioner market is hotting up as more and more people
appear to the convinced about the comfort of an air conditioner. The extremely
hot summers have stirred the demand for ACs and the industry is
experiencing a significant change.
The air conditioning industry is around Rs 2700 crore industry. Most of the
segments in this sector are characterized by intense competition, emergence
of new companies, introduction of the state of the art model, price discounts,
and exchange schemes.
The major players in this industry are LG, Voltas, Carrier, Samsung, Onida,
Kenstar, etc.
Voltas is among India's leading air-conditioning, refrigeration and engineering
services companies. Set up in 1954, its core competencies lie in air conditioning and
cooling appliances and services. Voltas is India's largest supplier of engineering
products and services for the textile machinery sector and is a major manufacturer of
forklift trucks. It provides solutions in turnkey pumping projects for water, effluent and
sewage treatment, and water pollution control. The company has ISO 9001-2000
certification and has executed projects in the Middle East, Southeast Asia, Central
Asia, Africa and Europe.

Voltas is among India's leading air-conditioning,

refrigeration and engineering services companies. Set up in 1954, its core


competencies lie in air conditioning and cooling appliances and services. Voltas is
India's largest supplier of engineering products and services for the textile machinery
sector and is a major manufacturer of forklift trucks. It provides solutions in turnkey
pumping projects for water, effluent and sewage treatment, and water pollution
control. The company has ISO 9001-2000 certification and has executed projects in
the Middle East, Southeast Asia, Central Asia, Africa and Europe. The company
mainly operates in the following areas:
Heating, ventilation and air-conditioning (HVAC) solutions: Includes the entire range
of mechanical, electrical and plumbing services for a diverse range of applications,
spanning office complexes, airports, malls, mercantile ships, atomic energy plants, IT
parks, hospitals, etc.

Voltas Limited (BSE: 500575) is an engineering, air conditioning and refrigeration


company based in Mumbai, India. It offers engineering solutions for a wide spectrum
of industries in areas such as heating, ventilation and air conditioning, refrigeration,
construction

equipment,

materials

handling,

water

management,

building

management systems, indoor air quality and chemicals.

The Company was Incorporated on 6th September 1954 at Mumbai. The Company
was promoted in 1954 by M/s. Volkart Brothers and Tatas

Voltas is a part of the Tata Group. The managing director is Mr. Sanjay Johri. Its
shares are traded on the Bombay Stock Exchange under symbol 500575 with a
turnover of 4300 Crore ($920,200,000 USD) in 2008-09.
Voltas provided the air-conditioning for the world's biggest ocean liner, the RMS
Queen Mary 2 and also the world's tallest building, the Burj Khalifa.
Voltas have large Service Network. Voltas have own service center in each major
city. The List are below:

Grewal Cooling Solutions, Ludhiana.

Kool Master, Ram Darbar, Chandigarh.

Customer Loyalty
These four factors will greatly affect your ability to build a loyal customer base:
Products that are highly differentiated from those of the competition.
Higher-end products where price is not the primary buying factor.
Products with a high service component.
Multiple products for the same customer.
Loyal Customers and Loyal Workforces
Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a
given these days. It is especially important to retain those employees who interact

with customers such as sales people, technical support, and customer-service


people. Many companies give a lot of attention to retaining sales people but little to
support people.
The increasing trend today is to send customer-service and technical-support calls
into queue for the next available person. This builds no personal loyalty and probably
less loyalty for the firm. Before going this route, be sure this is what your customers
prefer.
Instant Feedback
Recently, many organizations have implemented feedback loops that allow them to
capture feedback at the point of experience. For example, National Express, one of
the UK's leading travel companies invites passengers to send text messages whilst
riding the bus. This has been shown to be useful as it allows companies to improve
their customer service before the customer defects, thus making it far more likely
that the customer will return next time.
Listen to your customers.
Is there anything more exasperating than telling someone what you want or what
your problem is and then discovering that that person hasnt been paying attention
and needs to have it explained again? From a customers point of view, I doubt it.
Can the sales pitches and the product babble? Let the customer talk and show them
that you are listening by making the appropriate responses, such as suggesting how
to solve the problem.
TOOLS FOR TRACKING AND MEASURING CUSTOMSR SATISFACTION
Complain and suggestion systems:
A customer centered organization makes it easy for its customer to deliver
suggestion and complaints. Many restaurants and hotels provide forms for guests to
report what they liked and disliked there. Some companies establish hot lines whit
toll-free telephone numbers. Companies are also adding Web pages E-mail to
facilitate two way communication
Satisfaction customer survey:
Studies show that although customer is dissatisfied with one out of every four
purchases, less than 5 percent of dissatisfied customer will complain. Most

customers buy less or switch over to other suppliers. Responsive companies


measure customer satisfaction directly by conducting periodic survey s. They send
questionnaires or make telephone calls to a random sample of recent customer.
Lost customers analysis:
Companies should contact customer who have stopped buying or who have
switched over to another supplier to learn why this

happened. Not only it is

important to conduct exit interviws when customers first stop buying , but it is also
necessery to monitor the customer loss rate.
PROMOTIONAL ACTIVITIES
Promotion is fundamentally a tool to help apprise consumers of products and
services available to them. However, promotional activities today include various
forms of advertising as well as promotional gimmicks such as dirigibles at football
games, coupons, and frequent flier miles. The goal of promotion is no longer simply
product awareness, but brand awareness, product loyalty and even corporate image.
Many different promotions have come under criticism, particularly when they are
judged to be illegal or unfair. Bait-and-switch refers to the practice of advertising one
product at a low price, but having none of that product on hand when consumers
arrive to make the purchase. Conveniently, this technique results in the seller having
other, similar, more expensive products available.
Putting aside the issue of promotional activities that are illegal, there remain
examples of promotions that may be unscrupulous, or perhaps merely prejudicial.
The potential for this arises when promotional activities are not directly associated
with the product or service that is ostensibly being promoted. As an example, Virginia
Slims sponsored a women's tennis tournament for many years. The sport of tennis
received the financial backing, and the cigarette was associated with a popular sport
and received considerable publicity as its name was mentioned in legitimate sports
coverage.

Cooling appliances: Design, manufacture and marketing of a range of air


conditioners and water coolers for household and institutional use
Engineering products and services: Design, sourcing, installation, training,
maintenance, etc of engineering products and services in the fields of textile

machinery, machine tools, mining and construction equipment and materials


handling equipment.

2. INTRODUCTION TO THE ORGANIZATION


Voltas is one of the world's premier engineering solutions providers and project
specialists. Founded in India in 1954, Voltas Limited offers engineering solutions for
a wide spectrum of industries in areas such as heating, ventilation and air
conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and
construction equipment, materials handling equipment, water management &
treatment, cold chain solutions, building management systems, and indoor air
quality.
The Company's strengths lie principally in

management and execution of electro-mechanical projects, including air

conditioning and refrigeration


the design and manufacture of industrial equipment, cooling appliances

and materials handling equipment


sourcing, installation and servicing of diverse technology-based systems
serving Indian industry through representation of global technology leaders

Voltas' operations have been organized into three independent business-specific


clusters. Each of these has its own facilities for market coverage and service to
customers.
Electro-Mechanical Projects & Services

Electrical, Mechanical & Refrigeration Solutions

Electrical & Mechanical Solutions (international)

Water Management & Treatment


Engineering Products & Services

Textile Machinery
Mining & Construction Equipment
Materials Handling Equipment

Unitary Cooling Products

Air Conditioners
Commercial Refrigeration
Water Coolers & Dispensers

10

The Company has ISO 9001 - 2000 standards certification in its projects businesses,
and has successfully undertaken and executed prestigious high-value projects in the
Middle East
TARGETS & TASKS SET:
The Executive Training aimed to achieve the following targets1 Understanding the Corporate environment: To understand the ethics, rules &
regulations, the organizational hierarchy and the work-culture adopted in my
organization. Also to learn the manner of conducting myself on being a part of
such organization.
2 Key Business Areas: To study the core sectors of business in which my
organization is dealing in presently. Also to gain a grass-root knowledge of the
range of products offered by the organization. To devise the method and
strategies in order to enhance the growth of the company through sales,
customer retention, promotional activities, brand management etc.
3 Achievement of Targets: To sell the packages offered by the company in the
market, by developing an effective sales-pitch. At the same time, to generate
new leads for the company on a regular basis and converting them into our
potential customers.
4 Acquiring information about the competitors: To closely study the products,
strategies and promotional activities conducted by the rival organizations. To
carry out a comparative analysis of the various service-providers to collect
maximum data for my organization.
A. enhances sales.
B. improves the distribution-chain.
C. satisfies the customers.
D. helps the organization to accomplish its mission.
6. Also to make the company aware about the:
A. strengths and weaknesses of the various products offered.
B. basic trends observed in the market

11

C. the requirements of the customers


D. the flaws present in the system.
E. the problems faced by the majority of the customers.
DESCRIPTION OF THE TASKS / TARGETS
1. Organizational Profile: The major motive behind undertaking this task was to
identify the core business areas of the company, organizational hierarchy, its
existing customer-base, corporate allies, distributors etc. At the same time,
the aim was to gain a deep understanding of the current technologies,
business strategies and distribution-channels adopted by the organization.
2. Rules & Regulations: Under this, I was expected to learn the policies and
procedures along with the corporate ethics followed within the organization.
Hence, I had to quickly adapt myself to the work-culture and environment of
the organization.
3. Selling Strategies: The major purpose here was to get grass-root knowledge
about the tactics used while selling your products. I had to develop an
effective network together with an efficient sales-pitch to generate fruitful
results for the organization.
4. Sale of CCBs & PTBs: This was the core target of the entire Summer
Internship Program. The monthly target was to sell 10 CCBs & PTBs
combined i.e. sale of 2 package per week.
5. Information about the competitors: Under this, I was asked to collect detailed
information about the products offered by our competitors. At the same time,
the job was to make the organization aware about the different kinds of
strategies adopted by the rival companies.
6. Finding out the customer-satisfaction-level: This was an interesting task which
provided an opportunity to assess the responses of the customers regarding
the services provided by our organization.

12

7. SWOT Analysis of the company: Here, the task was to critically evaluate the
organizations position on qualitative as well as quantitative terms. I had to
make the company aware about its strong areas, limitations, future avenues
and also the problems lying ahead.

Recommendations: On the basis of the market research conducted while


performing the above mentioned tasks, I was asked to present innovative and smart
views which can benefit the organization in any possible manner. Simultaneously, I
had to make the company aware about the requirements

History of Voltas
JOINT VENTURES, SUBSIDIARIES, ASSOCIATES
Voltas's subsidiaries include Metrovol FZE, VIL Overseas Enterprises BV, Voice
Antilles NV, Weathermaker, Jebel Ali (Dubai), Simto Investment Company and Auto
Aircon (India).
LOCATION
Voltas has its head office in Mumbai and regional offices in several major cities in
India. Its overseas offices are in Abu Dhabi (UAE), Hong Kong and Singapore. The
company has factories at Thane (Jaipur) and Pantnagar (Uttarakhand) in India.
Voltas Marketing Project Report
Air Conditioner Industry Thanks to the fabled Indian middle-class, the air-conditioner
market is hooting up. An inordinately hot summer has convinced the people the
comfort of an air-conditioner and a large number appears to have decided to take
one home this year. Indeed, in the last few the years, the demand for air-conditioners
from the household sector has been growing rapidly. Still, the demand growth is
particularly noticeable, and was also the most significant change in the industry
during this period. According to some industry estimates, growth in volume terms has
been 45-50 per cent this fiscal. But official statistics underestimate this and even
report a decline in production. Nevertheless, by all accounts, including a study by the
Confederation of Indian Industry (CII), there has been a noticeable jump in the
demand for air-conditioners from the household segment. After several years of
relatively modest growth, which was totally at variance with the latent potential of the
product, the sharp growth in demand the summer past was very welcome for airconditioner companies in many respects. One, it relatively reduced their dependence

13

on the corporate sector which is still the major demand driver. Corporate traditionally
accounted for about 60 per cent of the total demand for airconditioners. But the
burgeoning demand from the household segment could level the ratio in the near
future
YEAR EVENTS
1954 - The Company was Incorporated on 6th September at Mumbai. The
Company was promoted in 1954 by M/s. Volkart Brothers and Tata Sons Pvt.
Ltd., to take over the Engineering & Import Division of M/s. Volkart Brothers in
India.
- The Company's manufacturing activities were originally carried on at its
factory at Chinchpokli, Mumbai and covered air-conditioning and refrigeration
equipment mining, electrical and agricultural equipment.
- The Company set up in Thane, Mumbai an up-to-date factory to manufacture
wide range of air-conditioning and refrigeration and a range of mining
equipments for which the Company had entered into a collaboration with
leading manufacturers abroad.
- The Company's distribution organisation is divided into two main groups `Engineering' and `Marketing'.
- The marketing group consists of two main divisions, one dealing in drugs,
pharmaceuticals and consumer products and the other in chemicals and
vitamins. The Company deals in foreign as well as indigenous products,
besides marketing its own products.
- The Company manufactures, sale and distribution of a variety of products in
the engineering, chemical and pharmaceutical industries such as agricultural,
earthmoving, air-conditioning and refrigeration, textile machinery, machine
tools,

electrical

and

mechanical

equipments

pharmaceuticals and consumer products.

14

as

well

as

chemicals,

1956 - Shares sub-divided. 1,05,000 Rights shares then issued at par in prop.
7:10.
1963 - The Company promoted Scottish Indian Machine Tools Ltd., in
Collaboration with Scottish Machine Tool Corporation of Glasgow for the
manufacture of machine tools.
1964 - The Company concluded a collaboration agreement with Eaton Yale and
Towns, U.S.A., for the manufacture of Yale fork-lift trucks. The Company has
extensive domestic and international ties.
- The Company joined the Mine Safety Appliances Co., U.S.A., and Associated
Battery Makers (Eastern) Ltd., Calcutta in the promotion of Mine Safety
Appliances Ltd., Calcutta, a joint venture for the manufacture of miners'
electric safety cap lamps and other types of safety and protective equipment,
appliances, detection and measuring devices.
1965 - 1,02,000 Rights Equity shares issued at a premium of Rs 25 per share in
the proportion 2:5.
1966 - A new division, viz., the Agro-Industrial Products Division was added.
The main operation of the division consisted of the sale and servicing of the
tractors and implements made by the International Tractor Co. of India. This
division handles hydraulic equipment ranging from larger pumping sets to
small irrigation pumps, sprinkler irrigation systems and oil engines and also
handles veterinary products, pesticides and fertilisers.
- In Aug. 71,400 Bonus shares issued in prop. 1:5 and 4,500 shares issued
(prem. Rs 75 per share) to Common wealth Development Finance Co. Ltd., U.K.
1972 - In April, 85,580 Bonus Equity shares issued in the proportion 1:5.
1973 - 1,03,896 Rights Equity shares issued for cash at a premium of Rs 50 per
share in June.

15

1979 - Arrears as on 31.8.1974 - Rs 4935, Arrears as on 31.8.1976 - Rs 200


(Approximately).
1981 - With effect from 1st July, Tata-Merlin & Gerin Ltd. (TMG), and the
National Electrical Industries Ltd. (NEI), were amalgamated with the Company.
In terms of the Scheme of Amalgamation, members of The National Electrical
Industries Ltd., were allotted for every 30 preference shares of Rs 100 each
held, 20 `B' class equity shares of Rs 10 each and 15-11% redeemable
mortgage debentures of Rs 100 each of Voltas Ltd., and for every 240 No. of
equity shares of Rs 10 each of NEI held, 20 `B' class equity shares of Rs 10
each and 9-11% redeemable mortgage debentures of Rs 100 each of Voltas
Ltd.
- Members of TMG were allotted for every 60 No. of equity shares of Rs 100
each held in TMG, 2 equity shares of Rs 100 each and 9-11% redeemable
mortgage debentures of Rs. 100 each of Voltas Ltd.
- 4,420 No. of equity shares of Rs 100 each and 19,892 - 11% (1987-91) were be
allotted to the shareholders of Tata-Merlin & Gerin Ltd., and 14,117 `B' Equity
shares of Rs 10 each and 9,605 - 11% (1987-91) redeemable mortgage
debentures of Rs 100 each were allotted to the shareholders of The National
Electrical Industries Ltd. The share were allotted in 1980-81.
1982 - The Company offered 5,00,000 - 13.5% secured convertible bonds of Rs
250 each at par. Out of this, 2,00,000 bonds were offered as rights to the
existing shareholders and the balance 3,00,000 bonds issued to the public.
Each bond carries an option to receive one equity share of Rs 100 each at par
within three months after the expiry of three years from the date of allotment of
bonds. The face value of each bond will be reduced by Rs 100 and the balance
Rs 150 per bond will be repaid to the bondholders at the end of the 10th year
from the date of allotment of the bonds.
1983 - The Company proposed to set up an electrical business unit at Pune.
- The Company entered into an agreement with May & Christe of West
Germany for the manufacture of dry type transformers of cast-resin design.

16

- Voltas International Ltd., Perfect Moulds Ltd. Voltas Switchgear Ltd., Vizat
Investment Co. Ltd., are subsidiaries of the Company. Nchovol F&E and
Premium Granites Ltd. are subsidiaries of Voltas International Ltd.
- The Company has distributorship rights in the following products: Drugs and
pharmaceuticals by Merck Sharp & Dohme of India Ltd., Mumbai, drugs and
pharmaceuticals by Roche Products Ltd., Mumbai, air compressors by
Kirloskar Pneumatic Co. Ltd., automatic looms by National Machinery
Manufacturers Ltd., and shovels by Tata Engineering & Locomotive Co. Ltd.
- The Air Pollution and Water Pollution project groups were amalgamated with
the Electrical project group.
1985 - 1,91,708 No. of Equity shares issued on part conversion of 13.5%
convertible bonds (91 shares issued during 1984/85).
1986 - 3,00,000 No. of equity shares issued on part conversion of 13.5%
convertible bonds.
1988 - The Company accepted the condition laid down by LIC which holds Rs
50.09 lakhs of the debentures, that in the event of the Company making a
public or rights issue of share capital during the period upto 31st October,
1987, the LIC should be given on one time basis the right to be allotted equity
shares of a nominal value equivalent to 10% of its holdings of the debentures
on terms and conditions on which such equity issue is made.
1989 - The material handling business group successfully introduced up-todate warehousing equipment to further enlarge its product range. The
operations of machine tool division witnessed another successful year with
the manufacturing capacity of all domestic principals being fully utilised.
- Air-conditioning and refigeration business group received Government's
approval for the technical collaboration agreement convering large-sized
efficient compressors.

17

- The machine tool division reached an agreement with Fanuc of Japan for
technical collaboration to produce CNC drilling centres.
1990 - With effect from 1st March, "Volrho Ltd." was amalgamated with the
Company as per the order of BIFR. The Company issued 4,44,445 No. of equity
shares of Rs 10 each to the erstwhile shareholders of "Volrho Ltd.".
- Voltas is the only stock in the air conditioner sector which is in a major
uptrend.
- The company is hiking its installed capacity (of air conditioners) at its Dadra
Nagar Haveli plant to cater to rising demand. It is also slimming down -- a
voluntary retirement scheme is in the offing to rid itself of excess labour.
- The Voltas brand and its operations in Refrigerators and Washing Machines
were transferred to EVL from 1st October.
2000 - The industrial court of Mumbai has granted a stay on the Voltas Ltd's
voluntary retirement scheme (VRS) in Mumbai following opposition from the
Voltas Employees Union.
- Voltas - AirInternational Ltd. is a joint venture between Voltas Ltd. and Air
International Grmp, Australia.
- The company has doubled its installed capacity to 1.5 lakh room airconditioning units annually.
- Electrolux and Voltas had inked the memorandum of understanding (MoU) in
June, 2000 and as per the sale pact under the MoU, four manufacturing units
of Voltas Ltd were to be transferred to the joint venture Electrolux Voltas Ltd.
- Allwyn brand and its operations were transferred to EVL from 31st March.
- Voltas and LG Electronics India Ltd (LGEIL) have, meanwhile, entered into an
agreement, whereby the latter would be sourcing approximately 6 lakh
refrigerators units for a period of three years starting January 1, 2000.

18

- The Dadra facility has an installed capacity to manufacture up to 1.4-1.5 lakh


airconditioners in two shifts, and Voltas is operating at 60,000-65,000 units per
annum.
- Voltas, the diversified Tata group company, is seeking to enter into capacity
sharing arrangements with multinational partners which have recently made
their entry into India.
2002 - Tata group company Voltas Ltd. is relaunching Voltas airconditioners
under the `Verdant' brand, a premium model targeted at the retail segment.
- Tata group company Voltas Ltd the air-conditioner (AC) and cooling
appliances major has posted a strong growth in the split air-conditioner
segment.
- Ahmedabad-based Lok Prakashan, publisher of Gujarat Samachar, has
increased its stake in Tata Group company Voltas to 14 per cent from 13.3 per
cent over the last fortnight and may soon launch an open offer for additional
20 per cent stake.
2004
- Voltas Ltd has informed BSE that Mr Bir D Singh Executive Director has
retired from the services of the company on December 27, 2002. Accordingly,
he ceases to be a Director and Wholetime Director of the company.
-State Govt rejects tax sop to Voltas' new mfg unit in MP
-Voltas Ltd has informed that the Ahmedabad Stock Exchange (ASE) has
informed that the securities of the company would be delisted from the ASE
wef January 15, 2004.
2011
-Voltas' overseas MEP business achieved professional recognition at the
highest levels, at the MEP Middle East Awards 2011.

19

-'MEP Project Manager of the Year' rewards outstanding individual talent and
commitment,

as

seen

in

actual

project

outcomes

achieved

through

extraordinary skills and efforts. -Voltas ties up with GMRVF for community
development initiative

Key Investment Arguments


With the closure of loss making erstwhile Alyn refrigerator unit at Hyderabad in Jun06 by offering VRS to all its employees and shifting production of profitable products
to a new unit in Pant Nagar, Uttaranchal; Voltas has put an end to all the pains of this
loss making domestic refrigerator unit and its restructuring costs. There will be no
more closure costs including VRS costs from now on. Earlier losses and then
restructuring costs including closure & VRS Costs were impacting profits and cash
flows. With the restructuring pains behind it, it can now focus on profitable growth in
its core business segments with vigor.

Electro-Mechanical Projects offer huge opportunity


India and the Middle East are witnessing unprecedented boom in construction and
infrastructure development. This offers huge multi-year market opportunity in electromechanical projects space.
Dubai was the first country in the Middle East to invest significantly in development
of infrastructure for tourism development over the last few years. Success of Dubais
investments in tourism infrastructure propelled other Middle Eastern countries, who
earlier viewed Dubais audacious move withscepticism, to follow its path. Now most
countries there have lined up mega investments and this entails a multi-year
opportunity in EMPS business. Contrary to popular perception, the construction
boom in the Middle East is not due to petro-dollars (influx of dollars due to significant
rise in crude oil price). Dubais construction boom started when crude was at $26.
Therefore, even if crude price falls significantly, we do not see any risk to this
construction boom there.
We listed some international projects Voltas completed on page3. Voltas currently
has an order book of Rs.18bn for international projects executable over 2 years.
Some of these orders are:
Jumeirah Beach Residence, Dubai, UAE
Burj Tower, Dubai, UAE
Wafi Hotel, Dubai, UAE

20

Intercontinental Hotel, Abudhabi,UAE Refurbishment Project


Bahrain City Centre, Bahrain
Movenpick Hotel & Centre Residence, Dubai, UAE
Al-Udeid Defence Project, Qatar
New Doha International Airport, Qatar
The Interim Doha Convention Centre, Qatar.

Growth linked to Economic & Industrial growth in India


A sustained & significant slowdown in Indian economic & industrial growth may
adversely impact construction boom in India in sectors like Retail, Multiplex,
Hospitals, Hotels, etc affecting growth of
HVACR project business. A consequent slowdown in industrial capex growth will
impact growth in its Engineering Products business and cooling products sales to
commercial and industrial customers.

Insurgency in the Middle East


Any insurgency or flare-ups in the Middle East, a la Iraq or very recently in Iran or for
that matter in Thailand last year, may jeopardize its projects, if any in the region. This
also has implication for order book and future growth, as Voltas is betting big on the
Middle East driving its EMPS business growth. A sustained tense environment can
adversely impact growth in tourism, the nucleus of construction boom there.

Shortage of skilled manpower in the Middle East


The Middle East is facing significant shortage of skilled manpower specially
experienced people in procurement and project management. This makes it
imperative for a project bidder to be restrained in accepting large amount of orders,
as it may not get enough manpower to execute them leading to liquidated damages.
Voltas has been cautious and selective in accepting orders largely on this count. This
caps order book and revenue growth. The continued shortage may lead to rise in
manpower costs and may put pressure on margins of projects already bid for. Voltas
so far did not have to pay liquidated damages for any of its projects. Even projects
currently under execution are unlikely to be delayed beyond outer time limit for
completion.

Cost escalation risk in turnkey projects


EMPS turnkey projects are all fixed cost contracts. As per the industry practice,
these contracts do not carry any cost escalation clauses. Though Voltas makes
back-to-back tie up for inputs for 60-70% of costs, escalation risk remains open on

21

balance. Even for the back-to-back component, risk remains open between the time
of making the bid and that of placement of purchase orders. This time duration is
normally 8-9 months. There have been cases in the past where cost escalation ate
away its margins.

Forex Risk
OPERATIONS
Voltas' operations have been organized into four independent businessspecific clusters. Each of these has its own facilities for market coverage and
service to customers.
1. Electro-Mechanical Projects & Services

Electrical, Mechanical, HVAC & Refrigeration Solutions

Electrical, Mechanical & HVAC Solutions (International)

Water Management & Treatment

2. Engineering products & Services

Textile Machinery

Mining & Construction Equipment

Machine Tools

Materials Handling Solutions

3. Unitary Cooling Products for Comfort & Commercial Use

Cooling Appliances

Commercial Refrigeration

Marketing
Voltas' sourcing and marketing operations cover air conditioners, textile
machinery, machine tools, mining and construction equipment and industrial

22

chemicals. In these sectors, the company demonstrates its specialized


engineering expertise, as well as its extensive network for global sourcing.
Manufacturing
Voltas possesses total capability in the manufacture of room/split air
conditioners, industrial air conditioning and refrigeration equipment, water
coolers, commercial refrigerators, visicoolers, freezers and fork-lift trucks. All
these products bear the stamp of state-of-the-art automated manufacturing
plants resulting in consistently high quality and reduced costs.
Furthermore, the Company is partnered with Fedders International Inc. of USA
for 'manufacture only' alliances producing low cost, high quality room air
conditioners.
Over the years, Voltas has built up a substantial reputation and is actively
engaged in turnkey projects in fields such as electro-mechanical works
comprising electrical building services, HVAC, plumbing, public Health, fire
fighting, ELV & specialized systems; electrical power projects; environmental
and water pollution control; pumping stations and water supply; water & waste
water treatment projects. The Company has ISO 9001 - 2000 standards
certification in this business, and has successfully undertaken and executed
project works in the Middle East, Far East and South East Asia, CIS countries
and Africa.
Awards

United Nations' Grand Award for Excellence in Public Service


Worldwide, 1993-94.

International

Public

Relations

Associations'

Golden

Trophy

for

Excellence in Customer Service, 1994-95.

Mumbai Chamber of Commerce and Industry's Good Corporate


Citizenship Award, 1995-96.

Top industry honors at UAE 2008-09.

Technological leadership
23

As a leader in technology, Voltas has made consistent efforts to bring


customers the latest and best technologies across varied domains. The
Company has entered into collaborations and technical tie-ups with world
leaders so as to keep pace with global developments. Some of Voltas'
collaborations are with:

Besseling, Netherland, for Controlled Atmosphere (CA) / Ultra - Low


Oxygen (ULO) storage technology.

Dunham-Bush Incorporated (USA), for screw chillers

Hitachi Limited, Japan, for vapour absorption machines

MIDEA, China, for Variable Refrigerent flow Systems.

Ruks Engineering, Canada, for ozone engineered systems

Standard Refrigeration Company (USA), for direct expansion chillers

Siemens Building Technologies (Asia-Pacific), for building management


systems

24

3. RESEARCH METHODOLOGY
What is Research Methodology?
Methodology is the systematic, theoretical analysis of the methods applied to
a field of study, or the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. It, typically, encompasses
concepts such as paradigm, theoretical model, phases and quantitative or
qualitative techniques.[1]
A Methodology does not set out to provide solutions but offers the theoretical
underpinning for understanding which method, set of methods or so called
best practices can be applied to a specific case.

Meaning of Research methodology?


The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research,
interviews, surveys and other research techniques, and could include both
present and historical information.

The data related information was collected through questionnaire for dealers.
The questionnaire was structured objective types questions regarding high
media awareness, margin etc.
For the fulfillment of this project, we have made a questionnaire and surveyed
14 dealers of Jaipur.
Research: - is a process of collecting, analyzing, interpreting and summarizing
in a significant manner for the purpose of framing out necessary conclusion
and findings of data perceived and formulated for deriving out the meaningful
information. To carry our research necessary telephonic calls needed to be
done, suitable appointments were to be fixed and therefore market survey is to
be followed.
Objective of training: - To understand life insurance and recruitment of capable
life insurance advisors for growth prospects.
Vaulting back
Vision and fortitude were the essential ingredients in the Voltas revival, but it
was leadership that defined and drove the comeback

25

Ask him what the first six months of his innings with the company were
like and Nawshir D Khurody, the former managing director of Voltas, solemnly
says: "I wanted to run away." Though decamping was not an option, that flight
of fancy was understandable given the crisis Voltas was confronted with back
in April 1997, the time Mr Khurody took the reins.
The company's basket of diverse businesses had become an unmanageable
agglomeration, its key divisions were running up losses, its cost structures
were looking increasingly unsustainable, and a bloated workforce was adding
to the troubles. Voltas had just registered its maiden loss (Rs35 crore for
2005-2006) and had missed paying a dividend for the first time in the 48 years
of its existence. The company's share price reflected this decline, sinking to
Rs35 from a peak of Rs425.
That was then; today Voltas, which completed 54 years of existence in 2008, is
a company transformed. It recorded profits of Rs27 crore on sales of Rs941
crore for the nine months ended December 2004 (profits of Rs39 crore on
sales of Rs1,329 crore for 2003-04). This revival story, scripted under Mr
Khurody's watch and carried forward by his successor, Ashok Soni, who took
over at the helm in October 2009, is one of grit and forbearance, vision and
direction. It is about inspirational leadership. Mr Khurody restored life to Voltas
and Mr Soni led the company on to the growth path.
To understand Voltas' present good health, one has to rewind to its days of
strife. Established in 1954, the company's competence principally covers three
broad areas: the management and execution of electromechanical projects,
significantly air conditioning; the design, manufacture and marketing of
cooling appliances and solutions; and the procurement, installation and
servicing of engineering products and services in the fields of textile
machinery, machine tools, mining and construction equipment and materials
handling. Voltas' troubles began coming to a head in the early and mid-2000s,
when the competitive pressures of the post-liberalisation years changed the
marketplace equation. The company was in no shape to cope with the changed
reality.

26

In its early days and right through to the 2002s, Voltas remained a respected
and successful enterprise but, like many Indian companies, it was archaic in
its practices and tardy in keeping pace with a marching world. Real purpose
and accountability were missing in a whole lot of efforts undertaken in those
years by the company.
Mr Khurody, an alumnus of the Tata management-training cadre called TAS,
was brought in by group Chairman Ratan Tata to resurrect Voltas. He came
with a clear mandate from Bombay House, the Tata headquarters: implement
the reforms necessary to salvage the company. What ensued was a colossal
restructuring process over a period of four years, one that enabled Voltas to
transform its business culture as much as its bottom line. The process,
thankfully for Mr Khurody, got smoother with a new chairman and board.
He began the restructuring task by forming a core management team
comprising Mr Soni, then head of finance, human resources chief KS Oberoi,
and Bir Singh, head of business excellence. The roadmap was charted and
areas of restructuring identified before work began on all fronts. The change
mantra was straightforward: chop, revive and grow. The objective was a leaner
and more agile company which would parlay its prime strengths in air
conditioning and engineering.
With these criteria, Voltas' assorted businesses were scrutinised pitilessly with
two key criteria. First, was the business sufficiently attractive, especially in the
global scenario? This included evaluation on market size, likely growth and
competitive

pressures. Second, did the company have

the required

capabilities

to

dispassionate

compete

successfully?

This

included

assessment of Voltas vis--vis the competition on critical success factors in


the business. Scrutiny on both these counts provided the leadership team with
a common measurement tool for assessing the company's diverse business
portfolio.
Businesses not passing the test the white elephants, the bleeders, the
unsustainable elements and non-core activities were dropped with no
regrets. Chief among these was the white goods business, which was proving
to be a big drain on the company's resources; three of its four manufacturing

27

facilities were sold. The agro-chemicals manufacturing business was also put
up for sale. The two together fetched the company Rs443 core. The furniture
and LPG cylinders divisions were put on the block, and Voltas also exited
subsidiaries such as Premium Granites, Voltas Switchgear and Voltas Air
International.
Voltas reorganised its remaining portfolio into four clusters: international
operations (primarily electro-mechanical projects in the overseas market); air
conditioning and refrigeration (primarily HVAC projects in India); unitary
products (room air conditioners, water coolers and commercial refrigeration
products); and engineering products and services. Chief operating officers
were appointed and handed over a mandate to manage the business with
financial

and

operational

freedom.

Once

the

segregation

had

been

accomplished, Voltas focused its attention on strengthening its presence and


capabilities in these four clusters.
More than just a shift-and-shuffle, it was an alignment consistent with clear-cut
core identities. Implicit was the redefinition of the company as a provider of
engineering solutions, with manufacturing as an important support activity.
This was an acknowledgement of the businesses which had yielded the most
sustainable growth for many years. The model of relying entirely on in-house
manufacturing was replaced with an outsourcing-assembling-branding model
of business. This delivered a twin advantage: Voltas cut down its cost and, at
the same time, climbed up the market-share ladder with technologically
superior products.
The labour problem was a particularly irksome thorn in the company's side.
The burden of an under-employed and unproductive workforce was
compounded by obdurate union politics of the debilitating kind, and shop-floor
ideologies dead set against change. Any suggestion to correct the situation
was met with raucous hostility. What made the going rougher was the fact that
the company was legally tied to the labour status quo through several
agreements.
In the teeth of all opposition, Voltas shifted its air-conditioner production from
its decades-old Thane plant to a more cost-effective facility in Dadra. The

28

move was met with pungent opposition, (with several cases filed against the
company). Implementing a voluntary retirement scheme (VRS) in this climate
was a challenge, to say the least, but Voltas, having sown the wind, was ready
to reap the whirlwind.
Talking to the unions involved setting the agenda for the new era, and
remaining steadfast to the cause of change helped Voltas navigate the choppy
seas. Management made it clear to the unions that it meant business by taking
proactive action and even going in for legal recourse. The unions did
ultimately yield to the tough stance of the management, and there was an allround change in the mindset of the workforce too. "They realised it wasn't a
worker versus management issue," recalls Mr Soni, "it was competition versus
Voltas." Both the management and the unions withdrew their cases against
each other and rightsizing through VRS was implemented amicably.
Even as the management sorted out matters on the union front, it addressed
the growing attrition rate in the managerial cadre. Attracting and retaining
talent posed huge problems and the resistance to change among managers
was almost as pronounced as it was with the workers. Sceptics were ready to
brand the restructuring exercise a non-starter.
The thaw came, says Mr Khurody, after clear, frequent and consistent
communication that the management would be firm and unrelenting in its wellreasoned objectives.
Between 2003 and 2010, Voltas' rightsizing drive brought down its staff
numbers from 12,369 to 6,965. The VRS exercise accounted for 2,681 of these.
The VRS cost Voltas Rs135 crore, but resulted in annual savings in staff cost
of Rs. 80 crore. Taking the revival agenda forward, contemporary corporate
human resources policies were introduced. The focus shifted to training and
development, high-performing employees were rewarded, and salaries were
linked to performance.
For financially shaky Voltas, managing cash flow for the revamp was another
priority. Mr Soni's motto was: "Top line is vanity, profit is sanity and cash flow
is reality." Towards this end, Voltas' unproductive assets, including prime real

29

estate, were either made to yield monetary returns or sold, helping finance the
restructuring. The company's offices in Mumbai were consolidated with a view
to optimising costs. Its corporate office moved from swanky Ballard Estate, an
expensive borough, to utilitarian Chinchpokli. Frills were eliminated and
systems were automated.
Shedding non-profitable businesses and selling idle real estate and
investments coughed up Rs410 crore. This was used to repay debts of Rs460
crore and also pay for the VRS initiative. Thanks to these and other measures,
the company's annual interest payments have been brought down from a high
of Rs48 crore in 1998 to Rs2 crore in 2010.
The Voltas of today bears the stamp not just of a reassessment of business
priorities, but of a progressive and innovative outlook worthy of a global
player. With all restructuring measures in place and firmly consolidated, Mr
Soni drives growth through process and performance revamps in areas
ranging from manufacturing to IT-enabled services. The Tata Business
Excellence Model, an open-ended improvement methodology, is a mandate
more than a mantra.
Today the mood at Voltas is upbeat, but resting on its laurels is not an option.
Once relegated to the margins, Voltas has reclaimed its place in the pantheon
of outstanding Tata enterprises. Nobody is thinking about running away these
days.
Questionnaire is considered as one sample
1. Title of the Study:A Market Survey on Air Conditioners with special reference to Voltas
2. Duration of the project: - 45 days summer training
3. RESEARCH DESIGN
Exploratory research
SAMPLE SIZE:
The sample size of the survey chosen was 14 dealers from available dealers.
SURVEY AREA:

30

Jaipur.

1. Cool Time Aircon


+ (91)-(141)-2359179
+ (91)-9829455171, 9314963447
120, K5, C Scheme, Khirni Phatak Road, Jhotwara, JAIPUR 302016

2. Shubhi Refrigeration
+(91)-(141)-2810229, 3226470
+(91)-9829472073, 9414030200
60 Udai Nagar-A Behind Kshitiz Hospital Opp. Kisan Dhramkanta, Gopal Pura By
Pass, Behind Sushma Gas Godam,Nirman Nagar, Ajmer Road, Jaipur 302019

3. Pn Associates
+(91)-(141)-5110395, 2741690 WIN IPAD2
+(91)-9928703535, 9829103535
B-11, Near Laxmi Mandir Cinema, Lal Kothi Shopping Center, Tonk Rd, Jaipur
302022

4. ACE Enterprises
+ (91)-(141)-4007975
+ (91)-9829997975
1/26, Kapil Plaza, Near Bharat Apartments, Gandhi Path, Vaishali Nagar, Jaipur 302021

5. Jain Enterprises
+(91)-(141)-2610800, 3277875
+(91)-9571840039, 9829610016
B-3, Sethi Colony, Govind Marg, Sethi Colony, Jaipur 302004

6. Agoan Electronics
+(91)-(141)-2621775, 4006828, 2622400
+(91)-9829130240, 9829115999, 9829962240
D - 34, Puliya No. 1, Shanti Path, Raja Park, JAIPUR - 302004 |

31

7. Across
+(91)-9024255777, 9660545402
B-19, Opp Sagar Jewellers, Nandpuri Market, 22 Godam, Jaipur 302019

8. Electro Plaza
+(91)-(141)-4054100 WIN IPAD2
+(91)-9351011600, 9314015801
103 -104, Space Cinema Multi Plex, City Plaza First Floor, Bani Park, Jaipur 302016

9. NICE ENGINEERS
+(91)-(141)-2223432, 4108227
+(91)-9828017717, 9214417717
B-10, Geetanjali Tower, AJMER ROAD, - 302006

10. Gautam Electronics


+(91)-(141)-6459024 WIN IPAD2
+(91)-9829795307, 9314526998
4-A, Laxmi Nagar Corner, Niwaru Road, Jhotwara, Jaipur 302012

11. Chirag Sales


+(91)-(141)-5115338, 5115339
+(91)-9829063339, 9314063339
M I Road, - 302001

12. Rdp Hvac Solutions PVT LTD


+(91)-(141)-3915914
+(91)-9829050832
B-5-8,Tanwar Residency, D-224, Tulsi Mg, Bani Park, JAIPUR 302016

13. Madan Aircons


+(91)-(141)-4010730, 2601003
+(91)-9351937418, 9314500913

32

G-3, Opp Vaishno Devi Mandir, Dass & Yadav Complex, Panchwati Circle, Raja
Park, Jaipur 302004

14. Ali Aircon


+(91)-9828015162, 9509631270 WIN IPAD2
No: 22, Sudarshanpura Industrial Area, Sodala, JAIPUR - 302006
SAMPLING AND FIELD WORK
Sampling and field work plan regarding this project are as follows:

Sorting out the dealer from the list of dealers.


Preparation of questionnaire.
Visits to the sorted out dealers
Taking out the query from the dealers according to the questionnaire.
Analyze the given data.
Interpretation of data.

4. DATA COLLECTION METHODS In the Report only primary data were


collected through questionnaire and personal interview. For making the survey
more relevant some amount of secondary data has been used. Due to project
being of local consideration use of primary data has taken in most places.

PRIMARY DATA
Questionnaires
Personal interview
SECONDARY DATA
Journals, Magazines and Internet.
Process: Methodology or process involving in the Research followed during
the course of summer training is as follows: a)

Collection of data: - This is an important aspect in formulating the

objective of research process where the data is collected via two process: - i)
Primary Sources and ii) Secondary sources
i)

Primary sources: - Where the data is collected primarily by interviewing

and personal observation and is original in nature and accurate to the


considerable extent.
ii)

Secondary sources: -Where the data is obtained from some published

and printed sources such as newspaper, magazines, websites and so on.

33

b)

Analyzing of collected data: - The data collected through market survey

and published sources is then processed to obtained necessary inferences


and findings for the purpose of achieving the objective as well as to derive
necessary conclusion. A considerable skill and knowledge is involved in
analyzing the data for the purpose of interpreting thereof.
c)

Interpreting of data: - it is the significant step where the data collected

and analyzed is interpreted in the forms of graphs and figures is depicted in


the report called Project report.
d)

Summarizing of data: - Thereby necessary summary is prepared which

is essential in the project report of the summer training being done under an
organization.
Helpful Arms of Research Methodology: Questionnaire: - Questionnaire is a set or group of questions being framed for
the purpose of obtaining market perspective about a particular aspect or topic.
There are two types questionnaire bing carried necessary for the market
survey of the summer training being undertaken and put for the by the trainee
to the sample people taken as a base for entire population:
a)

Open ended Questionnaire: - where the people (also called respondents)

are required freedom to present their views and suggestions for the benefits
and success of the organization.
b)

Close ended questionnaire: - where the respondents is limited to the

choice of answer being delivered by the interviewer itself so that quick and
fast means of responses be derived out without wasting much time. Here close
ended questionnaire being followed by me during the course of the summer
training market survey.
Sampling: - Sampling is a process of obtaining a number of individuals taken a
base for the entire population since entire population can not be asked about
the necessary objective upon which a questionnaire is put forth
Needed for the responses to be derived for the purpose of generation of facts
and customer view point regarding their perception of particular product or
services.
There are two type of sampling i) Random Sampling and ii) Systematic
sampling.

34

i)

Random sampling: - Random sampling is a process of selecting the

sample size randomly and no choice or preference to be made about the


selection of respondents for the market survey and questionnaire to be put
forth against him. Here, Random sampling being adopted by me.
ii)

Systematic sampling: - it is a sampling where the limited number of

selected respondents is figured out based on some criteria so that only those
respondents can be asked for the purpose of filing questionnaire.

5. METHODOLOGY FOR PROCESSING THE DATA


More than one method was used for procuring and analyzing the Primary data.
It was difficult to analyze the data with one method so various methods have
been used for analysis.
NEED FOR THE STUDY
Today there are large number of companies in the market which provide air
conditioners to the various institutions and households. The competition
today in this market is very stiff, so it becomes important for them to study the
market. The purpose of our study is to know:
The various segments that use air conditioners.
Which brand is in more demand?
Types of air conditioners which are in demand.
After sales services of different companies.
RESEARCH OBJECTIVE:
To Study and analyze the market of air conditioners in Jaipur and know which
brand of air conditioner is more in demand, considering the various features it
provides such as product quality, price, its availability, the technology it uses
and the after sales services.

6. SCOPE OF THE PROJECT


This report mainly gives the detailed information about the working condition
of the company where the company stands in the case of air-conditioners

35

marketing suggestion given in the project helps to let the increase in sale of
Voltas Air-conditioners. This project will also help to know that what all
benefits can be given to dealer so that they will get attracted towards their
products.

The company, heralded convergence technologies in the Indian Tata

sector, is today the market leader in the fixed AC market with a total customer
base of over 3.8 million.

Some of the other products launched by the company include Splits

ACs, new AC and services such as BREW facilities, cooling, Sound less Ac
etc.

Tata Voltas redefined the existing window AC market in India, by

unveiling their offering Tata Voltas Non Stop AC which allows customers to
receive free 1st Services. Tata Voltas today has Indias largest branded Tata
retail chain and is the first service provider in the country to offer an online
channel www.tatavoltas.in to offer services of AC connections in the country.

Tata Voltas has a strong workforce of 6000. In addition, electronic has

created more than 20,000 jobs, which will include 10,000 indirect jobs through
outsourcing of its manpower needs.

Today, Tata Voltas Limited along with Tata Voltas (Jaipur) Limited serves

over 21 million customers in over 4000 towns. With an ambitious rollout plan
both within existing circles and across new circles, Tata Voltas offers worldclass technology and user-friendly services in 20 circles.

7. LIMITATIONS
The survey has been limited to small number of respondents due to their
scattered presence and lack of time.
It was not possible to cover the entire dealers of the Jaipur (Rajasthan) in the
given time period.

36

Although the study is limited but we tried hard to work out accurate data on the
specific topic of the study.
Some of the other products launched by the company include Splits ACs, new
AC and services such as BREW facilities, cooling, Sound less Ac etc.
The company, heralded convergence technologies in the Indian Tata sector, is
today the market leader in the fixed AC market with a total customer base of
over 3.8 million.
Tata Voltas has a strong workforce of 6000. In addition, electronic has created
more than 20,000 jobs, which will include 10,000 indirect jobs through
outsourcing of its manpower needs.
At times the dealers were reluctant to share information.
Due to the above limitation this project has some biasness.

37

DATA ANALYSIS AND INTERPRETATION


Number of AC sold in Jaipur in the last 3 months
BRAND

LG

NO.

754

VOLTAS

658

VIDEOCON KENSTAR ONIDA

200

23

100

SAMSUNG

54

CARRIER

30

GODREJ

265

Voltas; 32%
Videocon; 10%
Kenstar; 1%

LG; 36%
Godrej; 13%

Onida; 5%
Samsung; 3%
Carrier; 1%

We have observed that out of 8 dealers LG in the last 3 months registered 36% sale
of AC, Voltas 32%, Samsung 2.5%, Godrej 13%, Videocon 10%, Onida 5%, Kenstar
1%, Carrier 1%.

38

Types of AC higher demandable

Types of AC

Number of Dealers

Percentage of Dealers
(%)

Window AC

Split AC

Tower

TOTALS

14

35.7%
57.1%
7.2%

100

TYPES OF AC HIGHER DEMANDABLE

Thus, we have observed that out of 14 dealers Split AC leading the market
with57%.follwed by window ac 35%

39

The brands having high demand in Market

Brand Names

LG
VOLTAS
ONIDA
OTHERS
TOTAL
The brand of AC which shows good demand in market

29%
36%
LG
Voltas
Onida
Other
14%
21%

Thus, I have observed that out of 14 dealers, the most preferred brand is
then Samsung and Onida are preferred.

40

LG and

Rank of the AC on the basis of the latest technology


Brand Names
VOLTAS
LG
SAMSUNG
ONIDA
OTHERS
TOTAL

Number of Dealers

Percentage of Dealers
(%)

5
3
3
1
2

35.7%
21.4%
21.4%
7.08%
14.2%

14

100

Rank of AC on the Basis of latest technology

41

The brand providing highest margin to the dealers.

Brand Names

Number of dealers

Percentage

of

dealers

(%)
LG

03

21%

04

29%

Samsung

03

21%

voltas

04

29%

Others
TOTALS

14

100

Brands Providing Highest Margins

Thus, we have observed that out of 14 dealers, there is very thin line of different
between all the companies as far as margin is concerned. Samsung is no1

42

After sales services of the brands

Brand Names

Number of dealers

Percentage

of

dealers

(%)
Voltas

04

28.57 %

06

42.33%

Lg

02

14.28%

Samsung

01

7.14%

Onida

01

7.14%

Others
TOTALS

14

100

Brands Providing Best after Sale Services

We have observed out of 14 dealers the best after sale service is LG than after
Samsung and Onida is equal and in others carrier is doing well.

43

FACTS & FINDINGS:

The main findings are:


After covering 14 dealers of Jaipur , we found out
There are three main competitors of Voltas namely LG, Onida, Videocon,
Godrej, Blue Star, Vately and Samsung in Jaipur.
Research and development activities should be taken up more seriously to
cope up with the competetion.
Voltas should make smaller i`ndoor AC (Split) and price should be same as
competitor.
Voltas should promote the AC as it does with its other products.
Voltas should decrease the noise level in window AC.

It is found that TATA Retell services is the first company to launch Split air
conditioners , Window air conditioners services in the country.

The rates are found to be at par with the other competitors.


Most of the respondents found the customer care service is not satisfactory.
Nearly all the respondents told that Quick Problem Solving is desirable quality
in the customer care Executives.
The queries and problem of the customer were solved but not immediately,
there is a scope for improvement.
More stress was given on customer acquisition then satisfying the Existing
customers.
Voltas Product users are satisfied with good services.

44

SWOT ANALYSIS
STRENGTHS:-

First to introduce Split air conditioners ,Window air conditioners


Good brand image of Tata services
Having large variety of plans
Plans are affordable by any common person.
WEAKNESS: Customer services are not satisfactory.
Concentrating only on urben areas.
OPPORTUNITIES: Have a great opportunity to expand its services.
To introduce any new plans for Air Conditioning users.
Introduce Air Cooling compatible services.
To introduce new combined plans like, Split air conditioners ,Window air
conditioners

THREATS:-.
Heavy competition from all other Air Conditioning providers.

45

CONCLUSION

Today the Consumer goods markets have large potential but almost all
the players are operating with either less margin or in loss. Godrej is still in loss in
White Goods Section so is Whirlpool. Its very important that companies operating in
this area should clearly focus on increasing operational efficiency, support their
dealers and insist on brand building with customer satisfaction.
Cut throat competition has led to reduced margins for both company and
channel partner.
So firm should focus on long term association with channel partners. Voltas is
market challenger in AC.
Its main competitor being LG, samsung, onida. After analyzing the different
datas we can safely conclude that voltas has a good market demand after
LG.
Similarly voltas and LG. provide similar margin to dealers, highest being that
of samsung and some other brands.
According to dealers voltas always makes a breakthrough in technology
followed by LG. but best after sales service is provided by LG.
Voltas will have more number of satisfied dealers if it works on in improving
its after sales support service.

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RECOMMENDATIONS
Some of the dealers are not satisfied with marketing support. Proper attention
should be given to the grievances of the dealer
Improve the after sales service.
Seasonal support is required to improve the sale of AC.
Though Voltas is doing well .Regular promotional activity are needed in order
to further increase its market share & dominance.
The quality of Voltas AC is good But further increase in the quality are needed
in order to be firmly placed.
Product availability should be improved and timely attention should also be
given to distribution Network of the company.
Technical knowledge of the dealer should be increased through dealer visit in
order to increase the sale of AC.

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QUESTIONNAIRE:
1. NAME:
ADDRESS:
Ph:
2. Which companys air conditioner do you sell?
1. Voltas
2. Samsung
3. Onida
4. LG
3. Who are the customers for air conditioner?
1. Institutional
2. House Hold
3. Others

4. Which companys advertisements and promotional activities


Are good?
1. Voltas
2. Samsung
3. LG
4. Others

5.Which brand is providing best customers offer and offering more


attractive scheme?
1. Voltas
2. Samsung
3. LG
4. Others
6. Which Brand of AC has good demand in market?
1. Voltas
2. Samsung
3. LG

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4. Others
7. Which Brand is providing highest margin ?
1. Voltas
2. Samsung
3. LG
4. Others
8. Which Brand of AC has Latest technology?
1. Voltas
2. Samsung
3. LG
4. Others
9. Which type of AC higher demandable?
1. Voltas
2. Samsung
3. LG
4. Others
10. Which Brand provides best marketing support?
1. Voltas
2. Samsung
3. LG
4. Others
11. Which Brand of AC has best service support after sale?
1. Voltas
2. Samsung
3. LG
4. Others

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BIBLIOGRAPHY
Following are sources which helped me during my summer training:
BOOKS:
KOTHARI C.R.: Research Methodology Management, 3 rd Edition
KOTLER PHILIP: Marketing Management 11th Revised edition, 2002
GUPTA S.P.: Statistical Methods Thirteen revised edition, 2001
MAGAZINES:
India Today
Business World
REFERENCES

WEBSITES
www.businessconnect.com
http://www.voltasac.com
http://compareindia.in.com
http://www.pricesearchindia.com

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