IOP REPORT FROM I-MBA 6…

Prepared by ;

JAY BASRANI
UTSAV DHANESHA

[Gujarat technological university]

INDUSTRY ORIENTATION PROJECT REPORT
At

Submitted to Shree Sunshine Group Of Institution

UNDER THE GUIDANCE OF…
(PROF. KHUSBU DAVE)
Submitted by
 JAY BASRANI
ENROLLMENT NO. : 187730571001
 UTSAV DHANESHA
ENROLLMENT NO. : 187730571008
MBA (integrated) - SEMSTER VI
Offered By
Gujarat Technology University
Ahmadabad
Month & Year
March 2021
Institute Certificate
Company Certificate
Plagiarism Report
 PART - 1

INDUSTRY STUDY
 AUTOMOBILE INDUSTRY

01 GROWTH & EVALUTION OF INDUSTRY

02 PRODUCT PROFILE OF INDSTRY

03 DEMAND DETERMINATION OF INDUSTRY

04 KEY PLAYERS IN INDUSTRY

05 DISTRIBUTION CHANNLE OF INDUSTRY

06 KEY ISSUES & CUREENT TRENDS

07 PESTAL ANALYSIS

08
FINANCIAL ANALYSIS OF IMDUSTRY

09 MYCHEL PORTER’S FIVE FORCE MODEL

10 FUTURE OUTLOOK
01. GROWTH & EVALUTION OF INDUSTRY ;
India has been emerged as one of the largest and fastest growing automotive markets in the
world , particularly strong in subsectors like passenger and commercial vehicle, two wheeler
automotive components.

This rapid growth and evolving strengths in R & D and supply chain in a country are creating
fantastic opportunities for engineering and manufacturing companies, in view of this most large
international player have already entered or are taking bold steps to the enter the market. The three
wheeler market has been valued at US$ 9.14 Billions in 2018 and is expected to grow at a CAGR
of 4.9% from 2019 to 2027 to reach US$ 13.73 Billions by 2027.
 In the middle of 1991, the Indian Government made significant changes to its economic and
industrial policies leading to a liberalization of the markets. This provided the impetus for the Indian
automobile industry to flourish further. A new automobile policy was launched in the year of 1993,
facilitating the entry of global assemblers. Auto licensing was abolished in 1991, and the weighted
average tariff was lowered on an average from 87% to 20.3% in 1997.
 Global Three Wheeler Market by Region ;

  • Asia Pacific
• North America
 China ,
 US ,
 India ,
 Canada ,
 South Korea ,
 Mexico .
 Japan ,
   Australia ,
• Europe
 Rest of Asia
 France , Pacific.
 Germany ,  
 Italy , • Rest of the World
 UK ,  Africa ,
 Russia ,  Latin America.
 Rest of Europe .
 
 02.Product Profile Of Industry;
If we talk about the automobile industry, the business of producing and selling self-
powered vehicles, including passenger cars, trucks, farm equipment, and other commercial
vehicles.

The automobile industry has become one of the largest purchasers of many key
industrial products, such as the steel. The large number of people the industry employs has
made it a key determinant of the economic growth.
• No doubt there are so many products in this industry but here we are taking mainly 2 kinds
of products such as ;

1. two-wheeler ;

There Are two Types Of Two Wheeler Would Be Seen In India such as ;
 Mopeds :-
The mopeds are usually powered by a small single cylinder air-cooled 2-stroke petrol engines of
less than 60 cc displacement. It was, and continues to be, preferred by ladies who find it difficult to ride a
motorcycle because of the type of attire they wear.
 
 Motorcycle :-
Usually these types of vehicle are preferred by males for better performance and efficient
mileage. The fuel tank, usually attractively designed, is located right in front of the rider and above the engine.
Motorcycles use wheels of 16” to 17” size. Practically all current models of motorcycles in India are powered
by single cylinder, air cooled 4-stroke petrol engines.
2. Three- Wheeler ;

If we talk about particularly three wheeler products then it contains…

 PASSENGER CARRIERS ;  GOODS CARRIERS

Three Wheeler Market – By Fuel Type ;

• Diesel
• Petrol
• CNG
• LPG
• Electric

 
 03. Demand determination of the industry ;

Here, we are representing demand determination in the context of relative market

share.

 Relative market share of two wheeler ;  Relative market share of three-wheeler ;

 
 Relative market share of four wheeler ;

The following pie chart represents the data of year 2018-19 in which we can say that the major
market share has been owned by Japanese brand that is MARUTI-SUZUKI (50% ALMOST
 04.Major key players of the industry ;
 Major key players in two wheeler sector ;

1. Honda Motors
2. Hero Motocop
3. Bajaj Auto
4. Yamaha
5. Mahindra And Mahindra
6. Royal Enfield
7. Harley Davidson
8. Tvs Motors
9. Piaggo
10. Java
11. KTM
12. Kawasaki
 Major key players for three wheeler sector ;

1. ATUL Auto
2. Bajaj auto
3. TVS
4. Mahindra and Mahindra
5. Lohia auto
6. JS auto
7. Piaggo etc… 
 Major key players for four wheeler sector ;

1. Volkswagen 11.BMW
2. Toyota 12.Mercedes
3. Ford motor 13.Lamborghini
4. Honda 14.porsche
5. Hyundai 15.TESLA
6. Renault 16.Skoda
7. Kia 17.Rolls Royce
8. MG 18.land rover
9. TATA 19.Nissan
10. 10 SUZUKI 20.Ferrari
05.Distribution channel of industry ;
 06. Key Issues & Current Trends ;
 
• Top “Issues” In the Automotive Industry Today;

 Global Volatility
 Changing Consumer Behavior
 New Technology
 Dynamic Workforce
• Top current trends of industry ;

 Light weighting ,
 Electrification of powertrain ,
 Government initiatives in the EV space ,
 Connected vehicles.
 07. PESTEL Analysis ;
• Automobiles have been found around for more than 150 years, but it’s only within recent years
that we’ve noticed the scary Environmental changes or upgradation of the automotive industry.

Here, in the PESTEL analysis the word PESTAL means,

 
P – Political
E – Economical
S – Social
T - Technological
E – Environmental
L – Legal

All of the above mentioned terms are such kind of factors which are affecting automobile
industry.
 
 08. Financial Analysis Of Automobile Industry ;
• If we talk about the financial analysis of automobile sector today, then it is one of the most
important key factor which contributes majorly to our Indian economy. It directly and indirectly provides
employment to over 1.5 million people in the country.

• It is one of the largest sectors in the world, both in terms of sales volume and production.
The Indian automobile industry has a well-established name globally being the second largest two wheeler
market in the world, fourth largest commercial vehicle market in the world, and eleventh largest passenger car
market in the world and expected to become the third largest automobile market in the world only behind USA
& China.
• There are mainly 3 companies in automotive industry which plays an essential role in their
financial performance.
 
1. TATA MOTORS
2. MARUTI SUZUKI
3. MAHINDRA & MAHINDRA

NET PROFIT MARGIN

Year TATA MOTORS MARUTI SUZUKI MAHINDRA & MAHINDRA

2015 -13.05 7.42 8.52
2016 -.014 9.32 7.83
2017 -5.48 10.80 8.27
2018 -1.75 9.68 8.94
2019 2.91 8.71 8.94
Mean -3.5 9.2 8.5
Std. deviation 6.14 1.25 0.47
09.Industry Analysis : Michel Porter's Five
Force Model ;
• The great recession had been occurred in the context of revenues and
profitability of automobile manufacturers deeply. Some of the most well-known brands had
reached the verge of bankruptcy. Had not the government intervened, it would have been
quite difficult for these brands to survive. However, now that the recession has passed and
things are back on track, the automobile industry is flourishing again.

• Here is the five forces analysis of the automobile industry that discusses the
five important forces which affect its competitiveness and attractiveness in any market. This
analytical model was developed by Michael E Porter and is used industry wide to keep track
of competition and to build sources of competitive advantage. 
 Threat of new entrants: Low
 Bargaining power of suppliers: Low
 Bargaining power of buyers: Moderately high
 Threat of substitute products: Low
 Competitive rivalry among existing players: High
 10. Future outlook
• Considering the future outlook of automobile industry in India then as we all know that India is
expected to emerge as the world’s third-largest passenger-vehicle market by 2021. It took India around 7
years to increase annual production to four million vehicles from 3 million. However, the next milestone 5
million is expected in less than 5 years. Hitting that mark will depend on today’s rapid economic
development continuing, with a projected annual GDP growth rate of 7 % through 2020, on going
urbanization, a burgeoning consuming class, and supportive regulations & policies.
 PART - 2

COMPANY STUDY
“No Matter How Tough The Load Or How
Tough The Terrain - Atul Is Tougher – Atul
Is A Trailblazer!’’
.
 ATUL AUTO LIMITED

01 Company information and Product Profile

02 SWOT ANALYSIS

03 FUNCTIONAL DEPARTMENT OF COMPANY

04 CONCLUSION / SUGGESTION
 01. COMPANY INFORMATION ;
• Atul’s journey began in the 1970s, when the automobile industry was still in its initial
stages, growing slowly. Atul’s founder, Mr. Jagjivanbhai Chandra, had envisioned a company that
developed a convenient and affordable automobile that could traverse the rural, uneven roads of
Saurashtra (Gujarat). He turned his vision into action when he developed the first three-wheeler
automobile based on the design of a motorcycle, and adapted engines from a golf cart, giving
rise to the first ‘Chakkada’. Mr. Jagjivanbhai Chandra then started this company that we now
know as Atul Auto.

 
• Soon, Atul started manufacturing new varieties. It manufactured Shakti, a
convenient rickshaw, and many other vehicles under its brand name such as Commercial 3
wheelers, half ton vehicles (carrying capacity) and more.
• Currently, Atul is leading manufacturers of three wheeler transport in
Gujarat. It has managed to increase its production growth by two folds in the last five years. It
achieved a turnover of 625.34 crore for the financial year 2019-2020.

Mission Statement
 To devote ourselves to cater to the common man’s transportation needs by
Introducing environment-friendly vehicles which are empowered by latest Technological
advances.

Vision
 To contribute in eradication of poverty by making the common people self-
dependent with our state of the art technology, products and services.
 02. SWOT ANALYSIS ;
• In any of the company organisation the term like SWOT Analysis matters a lot. Here the word
SWOT stands for,…

 S – STRENGHTS
 W - WEAKNESS
 O – OPPORTUNITY
 T – THREATS

A). STRENGHTS OF ATUL AUTO ;

 Company with Zero Debt

 Book Value per Share Improving For Last 2 Years.
  Strong Cash Generating Ability from Core Business, Improving Cash Flow from Operation for Last 2
Years.
 Company with Zero Promoter Pledge
B). WEEKNESS OF ATUL AUTO ;

 Company With Growing Costs Year Over Year For Long Term Projects.
 Inefficient Use Of Shareholder Funds – Return On Equity Declining In The Last 2 Years.
 Major Fall In Training 12 Months Net Profit
 DE growth In Revenue and Profit.

C). OPPORTUNITY OF ATUL AUTO :

 Hiring SKILLED, FRESH & PASSONATE Human Work Force.

 Reduction in Carbon Footprint
 Expansion of Manufacturing Plants Globally.
 Modernizing Manufacturing Process.
  Focus On Hydrogen Fuel Cell.
D). THREATS OF ATUL AUTO ;

 Global Pandemics
 Offered 4 Wheelers By Other Manufacturers At Similar Price.
 Challenging To Sell E-Rickshaw.
 Labour Turnover
 Technological Changes in Manufacturing.
03.Functional Department Of Company

HR ADMIN

MKRTG R&D
 (A). HR DEPARTMENT
 Human resource management (HRM) is a management function that helps the
managers to recruit, train and develop the members of the organization. HRM is concerned
with the dimensions of the individuals within the organization. For understanding the nature
of HRM, there are certain aspects that need to be taken into consideration.

 The structure of HRM is broad. The major activities that are part of the lives of the
employees from the time they are hired within the organization till the time they leave the
organization comes under the responsibility of HRM. The structure of HRM takes into
consideration various areas:
 (B). R&D DEPARTMENT

ATUL views innovation as the match between technological opportunities and product
market opportunities. As a heuristic device we think of technological and product market
opportunities as specific, countable areas.
 
ATUL distinguish between long-term choices on the one hand and short-term choices
in which the long-term factors are given on the other hand. In this respect, our approach hinges on
the fact that a key long-term decision of the firm is to establish how much the strategic choices about
technology are subordinate to the product market requirements.
 (C). FINANCE DEPARTMENT

It involves activities that enable an entity to obtain capital; ensures efficient allocation of resources,
and maximises income generating potential of the business for survival and sustainability. It is much more
than planning for funds, it entails the management and control of available financial resources within the
organization. Therefore, finance plays key role in the sustenance of business by increasing operational
efficiency within the enterprise, and judiciously allocating funds among activities within and outside the firm.

The Company is financed in one or a combination of ways, namely, equity financing, debt
financing, utilization of retained earnings and disposal of assets. Each of the financing methods is unique and
has some cost implications. Thus, a combination of financial strategies is required for optimal financing of
business operations.
 (D). MARKETING DEPARTMENT
If we talk about automobile industry then there are so many ways of doing a marketing
such as ;
 
1. Build a trust with customer
2. Be at The top of Search engine
3. Taking a regular feedback about the products
4. Bid on competitor keywords
5. Actively manage your negative keyword list in the market
6. Adjust your campaign budget based on car buying trends
7. Target the right people with your automotive campaigns
8. By increasing customer retention ratio
9. Compel shoppers to come into your shop with some having unique offers etc…
 04. Conclusion or Suggestion ;
 Some Pro’s Of ATUL AUTO is,…

 Rising The Number Of Delivery Every Day.

 Consume Natural Source Of Electricity (SOLAR)
  Higher Chances Of Increase Market Share Through Eves
 Expansion Of Manufacturing Plants Globally.
 Corporate relation with industry
 Customer retention ratio
 Quick decision making system
 Working environment of organization
 Some Con’s Or We Can Say Try To Improve Such Below Things In Atul Auto Is,…

 Hiring SKILLED, FRESH & PASSONATE Human Work Force

 Acquire Advanced Machineries To Reduce Manufacturing Timings.
 Reduction In Carbon Footprint.
  Technological Changes In Manufacturing.
 
 U…
YO

NK
HA