EXECUTIVE SUMMARY

Executive Summary
KIRLOSKAR OIL ENGINES LTD. (KOEL) is acknowledged leader in Engines, Engine Bearings, and Engine Valves & Diesel Generating Sets. These engines are the preferred choice when it comes to powering Agricultural Machinery, Construction & Material Handling Machinery, Marine applications & equipment used by Armed Forces. The Diesel Generating Sets in the range 5kVa to 6 MW are preferred by the industry at large, households & the service sector comprising of banks, telecommunication establishments, commercial buildings, hotels & restaurants. KOEL also offer generating sets over 1 MW that run on Heavy Fuel Oils. The company only manufactures the engine for the generator. Then they send it to the AGOEMs (Authorized genset Original Equipments Manufacturer) for final process. They cover it by a canopy for being sound proof & attach the logoKIRLOSKAR GREEN with the generator. Today in Ambala many new buildings are being made for both Commercial & residential purpose. For that the building contractors help to make a building. These building contractors also help hospitals, shopping malls, complexes, apartments & hotels to make a good building with all the amenities. As there is fiery competition between generator manufacturers, role of builder become vital.Hence we decided to do a Survey on building contractors in Ambala which help company to know pros & cons for their product & also lead me to direct interact with customer. This project helps me to understand & analyze available products strength & weaknesses, different competitors, behaviour of customer & vital experience to communicate with people. The sample was selected of them who are the customers/visitors of Kirloskar Green DG Set. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical & statistical tools. The sample size of my project was limited to 120 people only. Out of which only 70 people had invested in Kirloskar Green. Other 50 people did not have invested in Kirloskar Green. 2

After conducting this survey on building contractors, I come to the conclusion that, company has huge potential in Ambala region & it can capture major share by providing excellent after sales service.In the end I would say that in future the differentiating factors would be the quality of service & convenience in term of ease of use. KOEL need to focus on the speed & delivery of the serviceability part more & ease of use.

CHAPTER - 1

INTRODUCTION

CONSUMER BEHAVIOUR
1.1 Consumer behaviour & consumer decision making Consumer decision making has long been of interest to researchers. Beginning about 300 years ago early economists, led by Nicholas Bernoulli, John von Neumann and Oskar Morgenstern, started to examine the basis of consumer decision making (Richarme 2007). This early work approached the topic from an economic perspective, and focused solely on the act of purchase (Loudon ANDDella Bitta 1993). The most prevalent model from this perspective is Utility Theory which proposes that consumers make choices based on the expected outcomes of their decisions. Consumers are viewed as rational decision makers who are only concerned with self interest (Schiffman ANDKanuk 2007, Zinkhan 1992).

Where utility theory views the consumer as a rational economic man (Zinkhan 1992), contemporary research on Consumer Behaviour considers a wide range of factors influencing the consumer, and acknowledges a broad range of consumption activities beyond purchasing. These activities commonly include; need recognition, information search, evaluation of alternatives, the building of purchase intention, the act of purchasing, consumption and finally disposal. This more complete view of consumer behaviour has evolved through a number of discernable stages over the past century in light of new research methodologies and paradigmatic approaches being adopted.

While this evolution has been continuous, it is only since the 1950s that the notion of consumer behaviour has responded to the conception and growth of modern marketing to encompass the more holistic range of activities that impact upon the consumer decision (Blackwell,Miniard et al. 2001). This is evident in contemporary definitions of consumer behaviour:

consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires. (Solomon,Bamossy et al. 2006, p6).

(Schiffman ANDKanuk 2007) take a similar approach in defining consumer behaviour: the behavior that consumers display in searching for, purchasing, using, evaluating, and disposing of products and services that they expect will satisfy their needs (p.3).

While most contemporary definitions of consumer behaviour are similar in scope, section 1.2 will identify and discuss the differing psychological approaches that have been applied to research in this area. 1.2 Theoretical approaches to the study of consumer behaviour A number of different approaches have been adopted in the study of decision making, drawing on differing traditions of psychology. Writers suggest different typological classifications of these works with five major approaches emerging. Each of these five approaches posit alternate models of man, and emphasise the need to examine quite different variables (Foxall 1990); they will briefly be introduced in turn. Economic Man Psychodynamic Behaviourist Cognitive Humanistic

1.3 Economic Man As identified in section 1.1, early research regarded man as entirely rational and self interested, making decisions based upon the ability to maximise utility whilst expending the minimum effort. While work in this area began around 300 years ago (Richarme 2007), the term economic man (or even Homo economicus (Persky 1995)) was first used in the late 19 th century (Persky 1995) at the start of more

sustained research in the area. In order to behave rationally in the economic sense, as this approach suggests, a consumer would have to be aware of all the available consumption options, be capable of correctly rating each alternative and be available to select the optimum course of action (Schiffman ANDKanuk 2007). These steps are no longer seen to be a realistic account of human decision making, as consumers rarely have adequate information, motivation or time to make such a perfect decision and are often acted upon by less rational influences such as social relationships and values (Simon 1997). Furthermore, individuals are often described as seeking satisfactory rather than optimum choices, as highlighted by Herbert Simons Satisficing Theory (Simon 1997), or Kahneman and Tverskys Prospect Theory (Kahneman ANDTversky 1979) which embrace bounded rationality (Simon 1991). 1.4 Psychodynamic Approach The psychodynamic tradition within psychology is widely attributed to the work of Sigmund Freud (1856-1939) (Stewart 1994). This view posits that behaviour is subject to biological influence through instinctive forces or drives which act outside of conscious thought (Arnold,Robertson et al. 1991). While Freud identified three facets of the psyche, namely the Id, the Ego and the Superego (Freud 1923), other theorists working within this tradition, most notably Jung, identified different drives (Ribeaux ANDPoppleton 1978). The key tenet of the psychodynamic approach is that behaviour is determined by biological drives, rather than individual cognition, or environmental stimuli.

1.5 Behaviourist Approach In 1920 John B. Watson published a landmark study into behaviour which became known as Little Albert (Watson ANDRayner 1920). This study involved teaching a small child (Albert) to fear otherwise benign objects through repeated pairing with loud noises. The study proved that behaviour can be learned by external events and thus largely discredited the Psychodynamic approach that was predominant at the time. Essentially Behaviourism is a family of philosophies stating that behaviour is explained by external events, and that all things that organisms do, including actions, thoughts and feelings can be regarded as behaviours. The causation of behaviour is attributed to factors external to the individual. The most influential proponents of the behavioural approach were Ivan Pavlov (1849-1936) who investigated classical conditioning, John Watson (1878-1958) who rejected introspective methods and Burrhus Skinner (1904-1990) who developed operant conditioning. Each of these developments relied heavily on logical positivism purporting that objective and empirical methods used in the physical sciences can be applied to the study of consumer behaviour (Eysenck ANDKeane 2000). There are a number of branches of research that conform to the major tenets of behaviourism, but differ subtly in other ways. Initially Classical Behaviourism, established by John Watson, required the entirely objective study of behaviour, with no mental life or internal states being accepted. Human thoughts were regarded by Watson as covert speech (Sternberg 1996), and strict monism was adhered to (Foxall 1990). Between 1930 and 1950 Skinner founded Radical Behaviourism which acknowledges the existence of feelings, states of mind and introspection, however still regards these factors as epiphenomenal (Skinner 1938);(Nye 1979). The assumed role of internal processes continued to evolve in subsequent decades, leading to more cognitive approaches with a new branch of study Cognitive Behaviourism claiming that intrapersonal cognitive events and processes are causative and the primary irreducible determinants of overt behaviour (Hillner 1984, p107).

While behavioural research still contributes to our understanding of human behaviour, it is now widely recognised as being only part of any possible full explanation (Stewart 1994). Behaviourism does not appear to adequately account for the great diversity of response generated by a population exposed to similar, or even near identical stimuli. 1.6 Cognitive Approach In stark contrast to the foundations of Classical Behaviouralism, the cognitive approach ascribes observed action (behaviour) to intrapersonal cognition. The individual is viewed as an information processor (Ribeaux ANDPoppleton 1978). This intrapersonal causation clearly challenges the explicative power of environmental variables suggested in Behavioural approaches, however an influential role of the environment and social experience is acknowledged, with consumers actively seeking and receiving environmental and social stimuli as informational inputs aiding internal decision making (Stewart 1994).

The Cognitive approach is derived in a large part from Cognitive Psychology which can trace its roots back to early philosophers such as Socrates who was interested in the origins of knowledge (Plato 360 B.C.), Aristotle who proposed the first theory of memory (Aristotle 350 B.C.) and Descartes who explored how knowledge is represented mentally in his Meditations (Descartes 1640) (Sternberg 1996). It was not until the middle of the 21 st Century however, that Cognitive Psychology truly

emerged as a mainstream and useful field of study with the development of the Stimulus-Organism-Response model by Hebb during the 1950s (Figure 1.1) (Cziko 2000) and the publication of the landmark text by Ulric Neisser in 1967 (Neisser 1967). From this point many writers suggested that Cognitivism had taken over from Behaviourism as the dominant paradigmatic approach to decision research (Furedy ANDRiley 1987).

Figure 1.1: Stimulus-Organism-Response Model of Decision Making

Stimulus

Organism

Response

Source: (Cziko 2000) While there are distinct branches of cognitive psychology, they all share an abiding interest in exploring and understanding the mental structures and processes which mediate between stimulus and response (Kihlstrom 1987). Contemporary Cognitive Psychology has identified and developed a wide range of factors which are thought fundamental to these intrapersonal processes including: perception, learning, memory, thinking, emotion and motivation (Sternberg 1996). While this is far from a complete list of the possible constructs at play, it does serve to outline the complexity and multiplicity of issues inherent with this approach. Early Stimulus-Organism-Response models (as depicted in Figure 1.1) suggest a linear relationship between the three stages with environmental and social stimuli acting as external antecedents to the organism. This approach assumes that stimuli act upon an inactive and unprepared organism (Eysenck ANDKeane 2000). Most modern theorists now, however, acknowledge that information processing is conducted by an active organism whose past experience will influence not only the processing of such information but even what information is sought and received. Information processing will be both stimulus driven and concept driven (Moital 2007); (Groome,Dewart et al. 1999). This development has resulted in more recent depictions of consumer decision making being circular in fashion (Peter ANDOlson 2008), or drawn through a Venn diagram (Jacoby 2002). Despite coming from a Radical Behavioural perspective, Foxall (1990 p.18) identifies 10

four key strengths of cognitivism as a means of explaining consumer behaviour:

Its closeness to the common-sense explanations of everyday discourse make it an intuitively attractive means of offering explanations of everyday behaviours such as purchasing and consuming;

The ability of consumers to describe their experiences in terms of their attitudes, wants, needs and motives ensures that an explanation proceeds in the same terms as the description of what is explained;

It brings a measure of unity and consensus to a still young field of inquiry; The extensive use made by other social science and humanity disciplines of cognitive explanation has assisted the conceptual development of this line of consumer research by making possible the borrowing of theoretical and methodological inputs.

Furthermore, Cognitivism has the capacity to explain complex behaviours, an acknowledged deficiency of the competing Behavioural perspective where it is impossible to ascertain the contingencies that control response (Foxall 1993). However, the cognitive approach is also criticised for a number of reasons. Foxall comments that the cognitive approach relies extensively upon the use of abstract and unobservable explanatory variables which seldom prove amenable to empirical investigation and evaluation (1990 p. 96). Additionally, cognitivism assumes the consumer is rational, discerning, logical and active in decision making; assumptions that have been questioned by a number of writers (Bozinoff 1982) (Solomon,Bamossy et al. 2006) (Schiffman ANDKanuk 2007). Despite these criticisms, a cognitive approach is more appropriate in the examination of ethical purchasing behaviour. Firstly, the complexity of such actions cannot be accommodated through behavioural models and secondly, the benefits of ethical consumption are largely vicarious in nature, requiring extensive intrapersonal evaluation. Key existing studies into ethical purchasing have all accepted the role of intrapersonal examination (Hines ANDAmes 2000, Nicholls ANDLee 2006, Ozcaglar-Toulouse,Shiu et al. 2006).

11

PROFILE OF COMPANY
Kirloskar Oil Engines limited

It has now been more than a century since the Kirloskar story started. We started with an aim of becoming the pioneers in fields in which our country needed innovation. In the 100 years and more that we have been in existence as a family and as an organization, we've been seminal to Indian agricultural and industrial development. We gave India its first iron plough, pump and engine; inventions that were devised from the need of the hour and went on to become signs of the time. Which is why our group history can in many ways can be considered a history of the economic and industrial revolution in India.

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The first Kirloskar Group Company

Kirloskar Brothers Limited (KBL) - the first Kirloskar venture at Kirloskarvadi was to become the base for all of the Kirloskar Groups subsequent enterprises. It began as the only Indian company with its own standard products - the fodder cutter and the iron plough, which competed with the British products. KBL also manufactured groundnut shellers, sugarcane crushers and pumps, which were to usher in a new economic order in the Indian industry. To power these machines, diesel engines, coal gas generators and electric motors were developed at Kirloskarvadi. In a display of great versatility, KBL then shifted its focus to fluid handling and control. As India's largest manufacturer of pumps and valves, and also the group's flagship company, KBL lends its strength and expertise to every new venture of the Kirloskar Group. Playing a part in the War The intensified boycott of the British goods and the approaching World War threatened to stop imports of machine tools into India. The Kirloskar, with characteristic foresight began making machine tools. This paradigm shift of sorts, from farm implements to machine tools, created a new company - The Mysore Kirloskar Limited. This company, situated in Harihar, benefited greatly from the patronage of yet another Raja - the Maharaja of Mysore. In the first month of production, Mysore Kirloskar sold all of manufactured seven lathes.

The new generation -Innovation, creation, tradition from colonialism to independence

13

An important change for the country and for one of its premier industrial houses was the Kirloskar Group. The altered political climate of the 1940s heralded the end of the princely patronage for enterprise. The policy shifts and changes in authority were the order of the day. This marked a turning point for the group. Shantanurao Kirloskar, the eldest son of the founder travelled to Ambala to initiate a new aspect of the group's activities - diesel engines. His experience of trying to secure the land for his factory in Ambala was quite different from his father's in Kirloskarvadi. There was no benevolent ruler here to bestow acres gratis. Shantanurao had to face the tangle of red tape and public resistance to acquisition of land for industrial purposes. Finally, after arguing that factories have a longer life than human beings Shantanurao Kirloskar won a place for Kirloskar Oil Engines Ltd. (KOEL), twelve months after signing an agreement of collaboration with Associated British Oil Engines Export Ltd. of UK. This collaboration, incidentally, was the first of its kind between an Indian and a foreign company, and signified a bridging of the technological gap between east and west. The KOEL factory was incorporated in 1946, and soon after that gave India her first vertical high-speed engine. Brijlal Sarda, who reported its satisfactory running for over 4 decades, bought this first engine!

14

A new direction - services

The phenomenal success of the Kirloskar name prompted entrepreneurs and businessmen of the time to approach the group for guidance and expertise. This gave birth to the concept of formalized engineering consultancy and a new company Kirloskar Consultants Limited (KCL) in 1963. Marking an extension of the group's repertoire from manufacturing to services, KCL, in its 25 years of operation, has contributed to critical areas such as defence, irrigation, roads and environment. This paradigm shift saw the setting up of yet another service company - Ambala Industrial Hotels Limited in 1964, the Kirloskar Group's first foray into hospitality. This company set up Hotel Blue Diamond in Ambala and began to manage Hotel Pearl in Kolhapur. The Baker's Basket confectionery chain and the Hotel and Catering Consultancy Services (HOCON) were also set up. The dawn of a new millennium To meet the changing demands of a global business environment and emerging economic trends, the Kirloskar Group has refocused and restructured its direction by concentrating on its core segment of agriculture, water supply, power, and air conditioning. By consciously opting out of hospitality, advertising and unreal services, the Group has channeled its potential in these core sectors. The Group aims at unlocking the strength and value in the Kirloskar brand and distribution to enhance returns for its stakeholders. It has identified and is implementing processes that would bring greater customer focus and competitiveness. Today, the Kirloskar Group is a conglomerate with interests across a diverse range of industries. It is still spurred by the simple yet profound ethic born with Laxmanrao Kirloskar.

15

HISTORY
Kirloskar oil Engines limited was formed in 1946 by late Mr. Shantanurao Kirloskar .He founded Kirloskar oil Engines limited with the object of carrying on business of manufacturing and selling of all type of internal combination engines. The factory is situated on 55 acres of land in Khadki, Ambala and was inaugurated on 25 th April 1949.The production commenced immediately thereafter. The company secured the technical collaboration of British oil Engine (Export), now known as Hawker siddeley Brush International limited, for the period of 15 years up to 26th June 1961. Initially production was restrieted to small diesel engines having agriculture and industrial applications. Over the period of time, the company developed medium and large engines; The year 1954-55 was the beginning of the decade of rapid growth. The company began exporting engines to Germany, The Middle East and The Far Eastern countries. In 1954 the company started manufacturing bearing primarily for the captive use stationary engines. In 1957,The Company entered into a technical collaboration agreement with Glacier Metal Co. Ltd. To cope-up with the increased demand, The Company launched the first phase of its expansion in 1958. In 1959-60, the company acquired Shivaji Works Ltd.as a subsidiary. The Company entered into technical collaboration agreement with French Company, e-Agro French, 1961-62, for the manufacturing of light air cooled engines of modern design in the range of 20hp to 60hp: In 1970-71, The company promoted Kirloskar Kisaan Ltd., as fully owned subsidiary. In 1979, the company got the approval for collaboration agreement with Societe DEtidues De Machines Thermiques (SEMT), France for manufacturing of pielstick engines. The agreement is valid for 13 years from 1981.In 1983-84; the Company manufactured the high power diesel engines in collaboration with SEMT Pielstick of France. In 1989-90, the Company undertook a scheme for modernisation of the Companys plant at Ambala and Ahmednagar. During 1990-91 Company undertook packaging of gas turbines for industrial power generation market in 1MW to 10MW range in association with Solar Turbines Inc U.S.A. a subsidiary of Caterpillar U.S.A.

In late 1993 Company. Secured the ISO 9001 certificate in first go.

16

In 1995 - Approval from Government was received for setting up a project at District Nasik in Maharashtra for the manufacture of 300 units per annum of heavy duty large diesel generating sets. In this connection, a technical collaboration agreement was entered into with M.A.N.B & W Diesel GmbH, West Germany.

In 2000, KOEL has been named the country's best automotive components manufacturer by the Automotive Components Manufacturers Association (ACMA) for 1999-2000. The Company has launched its `Gen Power 2000 Project' in Guwahati in collaboration with Assam Allied Industries. In 2001, Kirloskar Oil Engines has launched a new range of ready-to-use gensets. In 2003, KOEL becomes the first company in the country to achieve compliance with the Central Pollution control Board's mass emission and smoke norms.

17

Business Location and Services

18

Organization Structure

Corporate Social Responsibility:

KOEL, as has been its tradition, willingly wears its social responsibility by sustaining initiatives that support the community. Throughout the year, it organized 19

programs to improve the status of education and health of people living in the vicinity of its premises. KOEL continues with following initiatives
1. HEALTH Individual Health check up camp Spectacles distribution Women Women health programme Yoga camp for women Community Tree plantation Spraying & fogging De-addiction in workshop Pollution check ups HIV/AIDS Awareness program Employability Various occupational training programme for making candles, washing powder, Agarbatti, Rakhi & Papad. 3. GENERAL Sport Tournament Community Gymnasium Well Reconstruction Environment program by Green peace Energy Conservation Competition 2. EDUCATION Sponsorship Donation to SOFOSH and labs Financial support to orphans Performance awards for school children School bag and raincoat distribution

Awareness Computer literacy for school children Livelihood programme for youth Study visits by school and college students

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KOEL Objectives
Kagal Project should be financially viable without considering the incentive benefits. To recover 100% Fixed Capital Investment at Kagal within shortest possible period in terms of VAT refund (recovered on Sales and paid to GOM) from GOM. This is critical in view of KOELs > 90% sales being out of Maharashtra and also because of proposed CST phase out plan of the Government Any restructuring by KOEL should not be perceived as a device for solely availing incentive benefits from GOM. While achieving above, follow Corporate Governance guidelines and keep intact the image and reputation of KOEL. Restructuring, if any, should be long term. Restructured Company should be a going concern. Its existence shouldnt end after availing of incentive from GOM. Restructuring should be logical, justifiable and should achieve long-term business objectives. e.g. creation of customer centric organization focusing on sales and servicing of products. Price to the ultimate customer should remain the same. Creation of separate manufacturing/sales & services Company entails additional overheads, which should be offset by increased

Vision 2013
KIRLOSKAR will become a globally major player in off - highway engines & power generation businesses by offering winning combination of quality, cost & delivery through innovation & unmatched services. Thus, we will strive to attain amongst top ten positions worldwide in selected engine businesses. While pursuing the above, we will continue to enhance the value of engine bearing & values business. Business for us is the best service, customer care and a lifelong relationship.

Mission 2013
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Over 11% profits on sales of Rs.8525 Cr. Achieve CII Exim Business Excellence Score of 600+ points by Assessment Year 2012.

Sales turnover of Rs. 20,000 million Profit of Rs. 2000 million Exports at 25% of total sales Increasing market share by 5% in the domestic market 1,00,000 engines per annum by 2008-2009 Process centric customer driver organization.

Kirloskar has got market presence in all the sectors generic to the engines. i.e. Agriculture, industry and services.

22

The Memorable Journey of K Group

First pielstick engine manufactured. Thyristor convertor made; Kirloskar Ebara JV established for specialization in Pumps. Kirloskar Group completes a 100 years in operation; the Centenary year. Kirsons Trading Pvt. Ltd. Singapore established. Kirloskar Ferrous Industries Ltd. established. All major companies in the group receive ISO 9001 Certification. India's first Concrete Volute Pump installed in Dahanu; KOEL and KEC celebrate Golden Jubilee Merger of Kirloskar Oil Engines Limited, with Prashant Khosla Pneumatic Limited on March 1, 1996. With Baramati, undertakings of Poona Industrial Hotel Ltd. were sold to Taj Group of Hotels. Shivaji Works Ltd., merged with Kirloskar Oil Engines Ltd. Kirloskar Oil Engines Limited gets ISO 14001 certification for Environment Management Systems from TUV. He stepping down of Mr. Vijay Kirloskar as Chairman and Director as on 23rd July 1998, the following took over as Chairman and Managing Directors of the respective companies: 1998 Mr. Atul C. Kirloskar, Kirloskar Oil Engines Limited. Mr. Sanjay C. Kirloskar, Kirloskar Brothers Limited. Mr. Rahul C. Kirloskar, Kirloskar Pneumatic Company limited. Mr. Gautam Kulkarni co-opted as an additional director on the Board of Kirloskar Oil Engines Limited, and the directors appointed him as the Joint Managing Director with effect from 20th August 1998, for a period of five years. Joint Venture between Kirloskar Oil Engines Limited and Denso Corporation, Japan, for the manufacture of car air conditioners and aluminum radiators for Automotive applications. 1999 Hotel Blue Diamond, Ambala and Hotel City Inn, 4. 23

1982 1984 1988 1991 1992 1993

1996

Collaboration Agreement of Kirloskar Brothers Limited with Ebara Corporation-Japan for Hydro Turbines. ISO 14001 Certifications for major plants of Kirloskar Brothers Limited and Kirloskar Oil Engines Limited. All India trophy of largest exporter of pumps for 11th successive year from EEPC. Mr. Vijay Kirloskar and six companies under him separate from the Kirloskar group of Companies. 2000 Launch of Kirloskar Green Power Ideas by KOEL at New Delhi on 26th Feb 2000. KBL gets order to supply concrete volute pumps worth 78 Million US Dollors to world's largest hydro-electric project : Sardar Sarovar Narmada Valley Project. Toyota Corp. Japan forms a joint venture with Kirloskars to manufacture multi-utility vehicle QUALIS. Agreement to dissolve the partnership between Kirloskar Oil Engines Limited and Briggs & Stratton Corporation, USA. 2002 Agreement to dissolve the partnership between Kirloskar Oil Engines Limited and KNECHT Filterwerke, Germany. Toyota-Kirloskar introduces its latest offering in India the luxury sedan CAMRY.

2001

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BEARINGS

25

From 3hp to 800hp, and from 2,400hp to 11,000hp, both air cooled and water cooled.

QUALITY AND PROCESS GEAR

ISO 9001, QS 9000, ISO 14001 and TS 16949 certified plants Self-certification status for quality systems from the Indian Army Modern Emission, Research Center and NVH Lab E-Business Suite covering the entire demand-supply chain, including CRM module

EPacks FOR STAND-BY AND PRIME POWER FOR GENERATING SET OEMS

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EPack is a sub assembly of engine complete with cooling package and alternator close coupled and resting on a common base-frame through anti-vibration mountings. With over 45% share of the Indian power generation segment we lead the world majors such as Perkins, Cummins, Iveco, and Caterpillar by a substantial margin. With annual volumes exceeding 55,000 gensets in the 15kVA to 300kVA range, we represent the world's largest Genset business.

GENSETS FOR TELECOM AND CELLULAR POWER

We are the first choice of global telecom OEMs and cellular service providers. A national fleet of over 45,000 Kirloskar Green Gensets ensures India's cellular network is kept ticking round the clock. To just name a few cellular majors, AT&T, Airtel, Hutch, Alcatel, Idea Cellular, BPL, RPG, Essar and ESCOTEL all count on Kirloskar reliability. An active population of over 2 million engines amply demonstrates product reliability and customer acceptance in these fiercely competitive markets.

GENSET AND ePacks - 15KVA / 50HZ PRIME TO 300KVA / 60HZ STAND-BY

We offer a comprehensive range of Gensets as well as ePacks to suit a wide-spectrum of end uses. These are available from 50Hz to 60Hz, with multiple voltage options, 1- and 3-, stationary or towable, open-skid to silent to super silent and manually operated to auto mains failure to web-enabled.

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LIQUID-COOLED R1040 SERIES ENGINES 42HP TO 210HP

Sectors: agriculture, construction and earthmoving, power, oil and gas and transport

Applications: gensets, agri tractors, backhoes, loaders, excavators, forklifts, pavers, compressors, cranes, aerial platforms, harvesters and assorted pump sets.

Most rugged engine in 2,3,4 and 6 cylinder configuration. Specially designed for heavy duty application.

Modular Design, No external piping. Wide available range from 42HP to 210 HP Wet liner design ensures high reliability and low maintenance cost.

LIQUID-COOLED SL90 SERIES ENGINES 169HP TO 365HP

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Sectors: agriculture, construction and earthmoving, fluid handling (fire pumps), power, oil and gas and transport

Applications: gensets, fire pumps and compressors Highest power to weight ratio in its class. Low fuel and oil consumption. Wide available range from 169HP to 365 HP Wet liner design ensures high reliability and low maintenance cost.

AIRCOOLED HA SERIES ENGINES, THE POWER DIFFERENTIATIONS, 20HP TO 121HP

Sectors: agriculture, construction and earthmoving, oil and gas, power, utilities and transport

Applications: gensets, compactors, pavers, loaders, cranes, transit mixers, tractors, and assorted pump sets.

Air Cooled technology, 2, 3, 4, and 6 Cylinder configurations. Modular Design, No external piping. Wide available range from 20HP to 121 HP Highest Reliability and Economy. Auto belt tensioning system, resulting in increased belt life. Ease of Maintenance. 29

R810 Series

Highly fuel efficient Robust construction 3000 rpm application capability 0.81 liter per cylinder configuration. Naturally aspirated and turbo charged. 3,4 cylindre incline versions available . Multiple auxiliary drive arrangements possible. Long life..

K Series

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World renowned technology 6,8,10 and 12 cylinder configurations. Modular construction, No external piping. Wide available range from 386 HP to 723 HP Flat SFC curve from 50 to 100% loads, unmatched fuel economy and lowest generating cost.

Electronic governor for isochronous governing and paralleling operations. Ease of Maintenance.

PA Series

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World renowned SEMT Pielstick technology. Suitable for running on HFO fuel. 1.6 to 6.3 MW Power plants Marine & coast Guard applications. Over150 prestigious PG installations

The KIRLOSKAR GREEN Genset

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BUSINESS MODEL 3 to 15 KVA 15 to 600 KVA Gensets exclusively manufactured by Kirloskar, sold and serviced through Dealerships. 14 Exclusive Generating Set OEMs (GOEMs). They do not manufacture Gensets using others Engines, even in range not provided by Kirloskar. GOEMs sell through 270 Dealer network , who are linked to Kirloskar. Kirloskar takes responsibility for Complete Project Manufacture, Supply, Installation and Services.

2000 to 6600 KVA

ENGINE BEARINGS
Our bearings are available in a wide range of alloys: White metal, Copper- lead, Aluminium-lead-tin. All leading vehicle manufacturers in India - such as

Eicher motors (Mitsubishi Cater),

33

 Bajaj Tempo (Daimler Benz OM 616), Maruti (Suzuki), Premier Automobiles (Nissan-Sunny), Mahindra & Mahindra, Escorts (Ford 3600) and Simpsons (AD3-152) Tata Motors (Indica) source 75% of their engine bearings from us.

OFFERED SERVICES OF KOEL

Extensive service network across the country with a service dealer located within 50 kms. of engine location anywhere in India. Warranty of 18 months from date of dispatch and 12 months from commissioning or 3600 hours for Industrial Engines. Hrs). Over 2000 Company Trained Service engineers offering round the clock service. 50 % service dealers with service vans. 50 % service dealers with ISO certification. Single window service for Gen Set. Customized AMCs to suit segment specific requirements. K-oil / K-cool super plus for Product life extension. Online MTTR system to track engines under breakdown (Avg MTTR 42

1. KEY CUSTOMER
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(A)ENGINES

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

(B)POWER GENERATION

35

(C)CELLULAR/TELCOM

36

GLOBAL & DOMESTIC PRESENCE

(A)GLOBAL PRESENCE
37

(B)DOMESTIC PRESENCE (a) MANUFACTURING & AREA OFFICES

38

(b)OEMs NETWORK

39

(c) DEALER NETWORK

40

41

CHAPTER - 3

RESEARCH METHODOLOGY

42

3. RESEARCH METHODOLOGY
Significance:
Significance of the project is to find out the prospect buyer of Genset and also to provide key information about the buyers perception and preferences. The study also helps in getting information about the performance of the company as well as their own investment center or why people go for KIRLOSKAR GREEN. Study also helps in finding out the problems related to buyers.

Managerial Usefulness of Study:

The study also provides the problems related to distribution of genset so that they can improve the service rendered by them as a distributor. The study also gives information about prospective buyers both individual as well as institutional clients. The study provides the complete information about all close competitors in genset. It provides the feedback from customers regarding their problems and perception about investing in genset so that they can improve their services.

Objectives:
To study the Oil Engine industries in detail. To study the Investment procedure in Gensets. To study in brief all the competitors. To study in brief various Genset Models of KOEL. To study the investors preference regarding Investment in Gensets.

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RESEARCH METHODOLOGY
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem .It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and critical ones.

Data sources:
(A) Primary Data

Primary data are those, which were collected afresh & for the first time and thus happen to be original in character. However, there are many methods of collecting the primary data. All have not been used for the purpose of this project. The ones that have been used are:

Face to face communication (Interviewing) Observation

(B)

Secondary Data

When an investigator uses the data that has been already collected by others is called secondary data. The secondary data could be collected from the journals, reports and various publications. The advantage of the secondary data can be economical, both in the terms of money and time spent. In this report secondary data was collected through: Worked in both primary and secondary data.

Company balance sheets Reports and records Flow charts and tables Websites

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Duration of Study:
The study was carried out for a period of forty days from July 2012 to August 2012.

Sampling:
(A) Sampling procedure:

The sample was selected of them who are the customers/visitors of Kirloskar Green DG Set. It was also collected through personal visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool. (B)

Sample size:
The sample size of my project is limited to 120 people only. Out of which only 70 people had invested in Kirloskar Green. Other 50 people did not have invested in Kirloskar Green.

(C)

Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc. The following are the questionnaires that was been carried out at the time of survey. The questionnaires also shows the value of KOEL & perception of customers towards KIRLOSKAR GREEN DG set. 1 2 3 4 5 6 7 8 KIRLOSKAR GREEN IN MARKET USES OF GENSET OF KIRLOSKAR GREEN SATISFIED CUSTOMERS OF KIRLOSKAR GREEN PERCEPTION ABOUT THE BRAND NAME BUYING BEHAVIOUR OF CUSTOMER TO KIRLOSKAR GREEN PREFERENCE OF CUSTOMERS TO KIRLOSKAR GREEN REASONS TO PREFER KIRLOSKAR GREEN AWARENESS OF THE BRAND NAME IN MARKET

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Chapter 4

Analysis & Interpretation

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Analysis of data
After the data was collected, the real task was started. The analysis of data required a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inference. The unwieldy data was condensed into a few manageable groups and tables for further analysis. Thus classified the data into some purposeful and usable categories. Coding, editing and tabulation was done simultaneously then analysis was based on computation of various percentages.

Preparation of report:
Finally I prepared the report with great care, under the able guidance of my project guide.

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Data Analysis and Interpretation

1. Which brand you are planning to buy? Cummins-Jakson Eicher Escorts Mahindra Kirloskar Ashok Leyland Other brand 35% 5% 2% 18% 22% 12% 6%

Interpretation It is cleared from the above data that maximum customers are planning to buy Cummins-Jaksons Gensets.

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2. Which brand are you using at present? Cummins-Jakson Eicher Escorts Mahindra Kirloskar Ashok Leyland Other brand 33 7 5 25 13 7 10

Interpretation It is shown from the above chart that Cummins-Jakson is the king in the silent genset section in Ambala city.

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3. Before the survey how often have you heard of Kirloskar Gensets? Oftenly Not Much Never 70% 26% 4%

Interpretation It is cleared from the above chart that Kirloskar is a well known brand in the town.

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4. How you came to know about Kirloskar? Pre-Installed Genset Public Others 55% 35% 10%

Interpretation It is cleared from the above chart that major source of genset publicity is the roadside pre-installed gensets.

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5. Which of the following attributes enticed you to try the brand initially? Best quality Brand Image Price Service 35% 15% 40% 10%

40% 35% 30% 25% 20% 15% 10% 5% 0% Best quality Brand Image Price Service

Interpretation It is cleared from the above chart that price plays major role in attracting the customers although quality also matters a lot.

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6. Which feature do you prefer in Silent Genset?

Brand Image After Sales Service Fuel Efficiency

12 38 50

Interpretation It is cleared from the above chart that fuel efficiency is the keen feature of any genset also after sales service attracts more customers.

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7. Which company is giving the best after sales service?

Cummins-Jakson Ashok Leyland Mahindra Kirloskar Others

3 0 5 2 0 4 0 5

Interpretation It is cleared from the above chart that Kirloskar is leading the market in after sales service which is a key feature in attracting the customers.

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8. How much is your requirement? 5-20 KVA 25-40 KVA 45-62.5 KVA 82.5-140 KVA 160-200 KVA 13 32 25 20 10

Interpretation From this pie-chart we came to know that maximum demand of silent genset is in the range of 25-40 K.V.A in Ambala region.

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9. Where do you place Kirloskar? First Seccond Third Fourth Fifth 20 55 15 13 2

Interpretation According to the customers of Ambala region Kirloskar holds second position in the market of silent gensets.

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CHAPTER - 5
FINDINGS, SUGGESTIONS & CONCLUSTION

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Findings Kirloskars market share is expected to grow by 9-10%. The Present market leader is Cummins, but growth rate is comparatively lower then Kirloskar. Other brands like Kirloskar , Eicher and Escorts are loosing there market share. Despite of no advertisement in the market Kirloskar is a well known brand. Most people rely upon the prices offered by the various companies. Fuel efficiency is the key feature which a customer wants in a Genset. Kirloskar is providing best after sales service in the market which is comparatively much higher then the market leader i.e. Cummins

Maximum demand of Gensets is in the range of 25-40 K.V.A. According to the survey done Kirloskar is on the second rank in the eyes of the customers.

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CONCLUSIONS:
After conducting this survey on building contractors in Ambala, I come to the conclusion that, company has huge potential in Ambala region & it can capture major share by providing excellent after sales service. There are some other conclusions are also included: . The market reach of the company is very good. The growth of the company is also appraisable The company is a major player in the sector of power generation. The service providing network of the company is very strong.

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SUGGESTIONS:
The following are some suggestions, which will be useful for further improvement and efficient working of the company in future. It is necessary to decrease the total expenses and to increase the profit. Target based incentive. Need for a checklist. Branch wise budgeting. Delivery channel must be fast. Make the product easy to use. Analysis and interpretation at the end of month.

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SWOT ANALYSIS

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SWOT ANALYSIS
STRENGTHS:
The company has some its own strengths and competencies. They are as under: Good brand image in the market. Market leader in quality. Delivery to customer as per schedule. Well trained and flexible manpower. Good dealership network and area officer. Base load with institutional customer. Low power cost in manufacturing. Near to the transportation railways as well as road transportation. Quality is established presence in all market eastern zones, reasonable transportation facilities available for all area 25% of production is tied up with institutional customer.

WEAKNESS:
Everyone should have its own weaknesses like this company also has some weaknesses. They are: Transportation problem during harvest season. Inconsistency in appearance. Already at peak utilization of current capacity. Weakness core expertise on prevention maintenance.

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OPPORTUNITIES:
The company has some opportunities in future for its growth. They are mentioned as under: The company has a good share in the market. The company has opportunities to tie up with customers. Can capitalize an upswing in market demand because of all India presence.

THREATS:
The company has some threats by competitors, market environment and some legal & political changes. They are mentioned as under: Companies like Cummins Powerica, Mahindra Greaves etc. are major threats to Kirloskar. Competitors product price is low in comparison to Kirloskar products. More increase in competition. Non exclusively with dealers.

FINDINGS:
The company is performing well in regard to long term stability in the market. The system has a strong after sale service channel. Company is well known in the market. Financial position of the company is strong. Customers give good response to the KIRLOSKAR persons.

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LIMITATIONS:
Suggestion is based on the given information. Due to the large number of employee it was not possible to collect all the information from each. The time period is limited to know the entire process .We cannot draw effective conclusion as it is continuous process. The area of survey was limited to some particular areas.

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CHAPTER - 7

BIBLIOGRAPHY & QUESTIONAIRE

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BIBLIOGRAPHY Sites visited

1. 2.

www.kirloskars.com www.google.com

3. Annual Reports of KOEL. 4. Data from Dealers of KOEL. 5. Marketing Management- Philip Kotler. 6. Times of India. 7. Hindusthan Times. 8. Financial Express.

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CUSTOMR SURVEY FORM

Questionnaire Of Silent Gensets Name:Age:Sex:Education:Occupation:1. Which brand you are planning to buy? Cummins-Jakson Eicher Escorts Mahindra Kirloskar Ashok Leyland Other Brand

2. Which brand are you using at present? Cummins-Jakson Eicher Escorts Mahindra Kirloskar Ashok Leyland Other Brand

3. Before this survey how often have you heard of Kirloskar gensets? Oftenly Not Much Never

4. How you came to know about Kirloskar? Pre-Installed Gensets Public Others 67

5. Which of the following attributes enticed you to try the brand initially? Best quality Brand Image Price Service

6. Which feature do you prefer in Silent Genset? Brand Image After Sales Service Fuel Efficiency

7. Which company is giving the best after sales service? Cummins-Jakson Ashok Leyland Mahindra Kirloskar Others

8. How Much Is Your Requirement? 5-20 KVA 25-40 KVA 45-62.5 KVA 82.5-140 KVA 160-200 KVA

9. Where you will place Kirloskar ? First Second Third Fourth Five

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