project file on replacement marketing by faizan ahmad

SUMMER TRAINING REPORT

ON

MARKETING RESEARCH PROCESS(REPLACEMENT MARKET)

IN

CLUTCH AUTO LTD.

Submitted to M.D. University Rohtak in partial fulfillment of the requirement for the award of degree of Bachelor Of Buisness Administration(Computer Aided Management)

(Session: 2010-11)

Submitted by:

Name: FAIZAN AHMAD Class : BBA(cam) 5th semester

Enrollment No : 08 DAVM 4611

DAV INSTITUTE OF MANAGEMENT NH-3, NIT,

FARIDABAD

ACKNOWLEDGEMENT

This project report has been possible through the direct and indirect Cooperation

and in valuable assistance of various officers, bears the Imprint of their efforts for

my work. I extend my grateful thanks to Mr. Vijay Krishan Mehta (G.M. – Clutch

Auto. Ltd) and Mr.Anuj Mehta ( Director ), for letting me work under their

extremely talented staff & giving me a chance to bring out best in myself for the

benefit of the Industry. I wish to express my sincere thanks and appreciation to all

those under whom I took my training and interacted .

In Faridabad (Managerial Body And Staff) :

Mr.Parmod Kumar (Marketing Replacement)

Mr.S.C.Bhardwaj ( Marketing OEM)

Mr.Vikas Singhla ( Marketing Exports)

Mr.P.K. Wig ( Head Personnel)

Mr.Promod Kumar (G.M. Marketing) and Mr.Griraj Sharma ( Asstt. Marketing

Manager) their thoughts and invaluable guidance helped me in broadening my

understanding and knowledge of working in an organization.

I also thank to the staff member of Clutch Auto Ltd., Faridabad in Marketing

department for their help and support & allowing me to acquaint myself with the

overall congenial atmosphere, which Exists in the organization.

Finally, I give my thanks to all the faculty members of D.A.V.Institute Of

Management, Faridabad who helped and guided me in making of my training

Report.

Faizan Ahmad

BCAM 5th Sem

DECLARATION

I FAIZAN AHMAD hereby declare that the Final report entitled “MARKETING

RESEARCH PROCESS” using a research that is compiled and submitted by me as my

original work. The findings in the report are based on the data collected by me while

preparing this report. I have not copied the data from any previous report. However, my

Project Guide helped me at various points while preparing this report.

Signature of the candidate

PREFACE

Books are the treasure of knowledge and a theoretical base is pivotal for understanding the realities of practical field. But at the same time, practical knowledge is critical for having an insight into the implementation of theory in corporate world.With the privilege of an opportunity provided to us by CLUTCH AUTO LIMITED, for the fulfillment of our purpose “bridging the gap between theory and practical’. We under took four weeks summer training at MARKETING department of CLUTCH AUTO LIMITED. The report is a product of a project undertaken from 16th June 2010 to 16th July 2010 in MARKETING department of CLUTCH AUTO LIMITED.The main objective for preparing this project report is to understand the working of REPLACEMENT MARKETING in company and .The analysis of this project enables us to understand how CLUTCH AUTO LIMITED imorove his product quality.

TABLE OF CONTENTS

S.NO CONTENTS P.NO

1. INTRODUCTION 1 - 7

2. LITERATURE REVIEW 8 - 13

3. COMPANY PROFILE 14 - 62

4. DATA ANALYSIS

&

DATA INTERPRETATION

63 - 80

5. RECOMMENDATION

&

SUGGSTIONS

81 - 82

6. BIBLIOGRAPHY 96

CHAPTER 1. INTRODUCTION

COMPANY :

Clutch Auto was founded way back in 1971 and now it is India’s largest clutch

manufacturer & exporter. Clutch Auto Ltd (CAL) is the largest supplier of clutches to the

commercial vehicle and tractor segment in India. It also caters to the passenger vehicle

and replacement demand.

The company is India’s largest clutch manufacturer & exporter has held 3 Decades of

undisputed Leadership. The company is also India’s largest exporter of clutches and

exports to 40 countries, 85% to Americas. The company is having largest aftermarket

distribution network in India and has state-of-the-art testing facility for Clutches. The

company is having Govt. of India recognized Research &development facility.

Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and

tractor segment in India. It also caters to the passenger vehicle and replacement demand

and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota,

BEML, Escort Tractors and StateTransport Undertakings, among others.

Clutch is a technology intensive business dominated by 6 players in the world, all

operating either as joint ventures or as technology partners or license arrangements. CAL

is the only standalone clutch company in the world, which is testimony to its technology

capability.

The company has developed, upgraded and upsized Ceramic and Cushioned Organic

Clutches with Retrofittability on old models of the popular trucks and buses, carving a

new market segment with a long term aftermarket potential besides fitment on current

ongoing production. Peculiarities of Indian operating conditions both in case of passenger

carriers and commercial vehicles and driving habits have been taken into consideration

and performance demonstrated after simulation and evaluation of modified Designs based

on the valuable field data.

The ‘Cool Clutch’ developed for the US market along with Wear Indication capability –

the ‘Whisper’ series and ‘Ez N Lite’ – Twin Ceramic Self-Aligning clutch for heavy

applications have been offered to the Indian customers.

The company has ventured into the US truck market through the aftermarket route

making it the only offshore company to be able to do so. It plans to be a niche player in

the low volume, high value added heavy-duty clutch segment for class 7 and 8 trucks.

This is because, the replacement demand for trucks in US, with a population of nearly

4.5-5mn units, is nearly as high (250,000 units pa) as the demand for new trucks.

CAL invested in technology, research and filed for patents and trademarks for a number

of products that it developed. Today, the company is the only independent component

company from India with an independent patents and trademarks portfolio. It has built

many innovative products like the ‘Cool Clutch’,’ Whisper’ and ‘EZ N Lite’ offering

interchangeability unit-to-unit, component-to component with the same serviceability

norms and tools.

The company’s clientele includes Tata Motors, Ashok, Leyland, Maruti Udyog, TAFE,

Toyota, BEML, Escort Tractors and state transport undertakings, among others.

OBJECTIVES OF THE STUDY :

Primary objective of the study is to get some practical knowledge and training in a

reputed clutch plate manufacturing industry.

a) To find out the market share of the company in a particular field.

b) To identify the problems of the consumer and customer.

c) To analyze the perception of customers about CLUTCH AUTO Ltd.

d) Conclusion and suggestion.

INTRODUCTION

Marketing Research :

According to American Marketing Association :

“Marketing Research is the function that links the consumer, customer and public to the

marketer through information-information used to identify and define marketing

opportunities and problems, generate, refine and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a process.”

Marketing Research is systematic problem analysis, model building and fact finding for

the purpose of important decision making and control in the marketing of goods and

services. Marketing Research is a well-planned, systematic process which implies that it

needs planning at all the stages. It uses scientific method. It is an objectiveprocess as it

attempts to provide accurate authentic information. Marketing Research is sometimes

defined as the application of scientific method in the solution of marketing problems.

Marketing Research plays a very significant role in identifying the needs of customers

and meeting them in best possible way. The main task of Marketing Research is

systematic gathering and analysis of information.

Before we proceed further, it is essential to clarify the relationship and difference

between Marketing Research and Marketing Information System (MIS).Whatever

information are generated by Marketing Research from internal sources, external sources,

marketing intelligence agencies-consist the part of MIS.

MIS is a set of formalized procedures for generating, analyzing, storing and distributing

information to marketing decision makers on an ongoing basis.

1. While Marketing Research is done with a specific purpose in mind with information

being generated when it is conducted, MIS information is generated continuously.

2. MIS is continuous entity while Marketing Research is a ad-hoc system.

3. While in Marketing Research information is for specific purpose, so it is not rigid;

in MIS information is more rigid and structured.

Marketing Research is essential for strategic market planning and decision making. It

helps a firm in identifying what are the market opportunities and constraints, in

developing and implementing market strategies, and in evaluating the effectiveness of

marketing plans.Marketing Research is a growing and widely used business activity as

the sellers need to know more about their final consumers but are generally widely

separated from those consumers. Marketing Research is a necessary link between

marketing decision makers and the markets in which they operate.Marketing Research

includes various important principles for generating information which is useful to

managers. These principles relate to the timeliness and importance of data, the

significance of defining objectives cautiously and clearly, and the need to avoid

conducting research to support decisions already made

MARKETING RESEARCH PROCESS IN CLUTCH AUTO Ltd :

1) Define the problem and research objectives. 4) Analyze the information

2) Develop the research plan. 5) Present the findings

3) Collect the information . 6) Make the decision

1). Define the problem and research objectives -

The nature of the problem or opportunity should be communicated and

defined.This is the first step in finding solution.

2). Develop the research plan -

Designing a research plan calls for decision for the data source ,research

approaches the research instruments , sampling plan and contact method.

a) Data Source (Primary Data) :

The normal procedure is to interview some people

individually or in groups to get a sense of how people

feel about topic in the question.

b) Research Approach (Survey) :

A company undertakes surveys to learn about people’s

knowledge,benefits and preferences and to measure

these magnitudes in the general population.

3). Research Instruments (Questionnaire) -

In the preparing a questionnaire the research carefully chooses the

questions and their form ,wording and sequence . The form of

questions asked can influence the response.

4). Sampling Planes -

I. Dealers of Clutch Auto Ltd. (50 dealers)

II. Spare parts shops. (100 spare shops)

III. Sampling size (How many people should be surveyed ?)

IV. Sampling procedure. (how should be the responded choosen?)

5) Conduct Method -

I. Personal Interviewing :

Personal interviewing is the most versatile method .The

interviewer can ask more questions and record additional

observation about the respondent ,such as dress and

body.

II. Collect Information :

Gathering Information by interviewer on customer site by two

people.

III. Analyze The Information :

The second last step in the marketing research process is to

extract finding from the collected data.

IV. Present The Finding :

As the last step ,the researcher should present the finding that

are relevant to the major marketing decisions facing

management.

V. Make The Decision :

Finally we make the decision according to the all of the above

points.

LIMITATIONS :

The survey and research has been done in Delhi and Faridabad.

Therefore the results showing the market position of Delhi and

Faridabad area only but due to small sample size and short time

Duration, results cannot be consider as representative of whole of

the population.

Convenient sampling was used as the mode of conducting the

research.

Retailers may not have been true in answering various questions

and may be baised to certain other questions. Some retailers

however were not willing to share their views and did not give any

information.

Many respondents did not give a proper thought before filling up

the questions, and some even ticked things,which were not

applicable.

Respondents were reluctant to answer some questions,as they took

them as personal, therefore increasing the possibility of error.

CHAPTER 2.

LITERATURE REVIEW

INTRODUCTION

Marketing Research :

According to American Marketing Association :

“Marketing Research is the function that links the consumer, customer and public to the

marketer through information-information used to identify and define marketing

opportunities and problems, generate, refine and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a process.”

Marketing Research is systematic problem analysis, model building and fact finding for

the purpose of important decision making and control in the marketing of goods and

services. Marketing Research is a well-planned, systematic process which implies that it

needs planning at all the stages. It uses scientific method. It is an objectiveprocess as it

attempts to provide accurate authentic information. Marketing Research is sometimes

defined as the application of scientific method in the solution of marketing problems.

Marketing Research plays a very significant role in identifying the needs of customers

and meeting them in best possible way. The main task of Marketing Research is

systematic gathering and analysis of information.

Before we proceed further, it is essential to clarify the relationship and difference

between Marketing Research and Marketing Information System (MIS).Whatever

information are generated by Marketing Research from internal sources, external sources,

marketing intelligence agencies-consist the part of MIS.

MIS is a set of formalized procedures for generating, analyzing, storing and distributing

information to marketing decision makers on an ongoing basis.

1. While Marketing Research is done with a specific purpose in mind with information

being generated when it is conducted, MIS information is generated continuously.

2. MIS is continuous entity while Marketing Research is a ad-hoc system.

3. While in Marketing Research information is for specific purpose, so it is not rigid;

in MIS information is more rigid and structured.

Marketing Research is essential for strategic market planning and decision making. It

helps a firm in identifying what are the market opportunities and constraints, in

developing and implementing market strategies, and in evaluating the effectiveness of

marketing plans.Marketing Research is a growing and widely used business activity as

the sellers need to know more about their final consumers but are generally widely

separated from those consumers. Marketing Research is a necessary link between

marketing decision makers and the markets in which they operate.Marketing Research

includes various important principles for generating information which is useful to

managers. These principles relate to the timeliness and importance of data, the

significance of defining objectives cautiously and clearly, and the need to avoid

conducting research to support decisions already made

SIGNIFICANCE OF MARKETING RESEARCH

Market research surveys are carried out to collect crucial information about the

market trends, consumer behavior, competitors and budding areas of growth. This

research can be carried out through various means such as surveys, interviews etc.

Some companies undertake the primary research method whereas the others go

for the secondary research method.

To carry out the research in a cost effective way, companies are increasingly

adopting Internet-based market survey and market research report tools. This will

help them to not only cut the cost but also to reach a larger segment of people.

The added benefit will be that larger audience from different regions and with

different perceptions will give a clear view of the market and help the company in

designing its strategies accordingly.

The companies that undertake market research often complaint that it is difficult

to gather information unless one is willing to pay. Though market research is

expensive, yet it is one of the finest sources through which information about the

market can be gleaned.

In primary research, the surveyor has to go from door-to-door and person-to-

person to collect information whereas in secondary research, information already

exists in one form or the other. Secondary research is cheaper as vital information

can be collected from the Internet about consumer behavior and the market. After

data has been collected from the net, all that the analyst has to do is study the

collected information. The only disadvantage with secondary research is the data

collected from the net is not always authentic. It may prove out to be wrong for a

certain type of business. This is not the case with primary research as the

information collected is first hand information.

Market research surveys can fully amalgamate and update the existing market

research and other business systems. This will benefit the company, as it will be

enabled to conduct better surveys and keep the market research data up to date.

Market research reports provide an insight into the difference in customer

attitudes in different countries and regions and are supplemented with graphs,

figures, and tables for better comprehension of the data.

FLOW CHART OF MARKETING RESEARCH PROCESS:

PROBLEM DEFINITION

DEVELOPMENT OF APPROACH

DESIGN FORMULATION

DATA COLLECTION

DATA ANALYSIS

REPORT PREPARATION

MARKETING RESEARCH PROCESS :

step 1: Problem Definition

The first step in any marketing research project is to define the problem. In defining the

problem, the researcher should take into account the purpose of the study, the relevant

background information, what information is needed, and how it will be used in decision

making. Problem definition involves discussion with the decision makers, interviews with

industry experts, analysis of secondary data, and, perhaps, some qualitative research, such

as focus groups. Once the problem has been precisely defined, the research can be

designed and conducted properly.

Step 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or

theoretical framework, analytical models, research questions, hypotheses, and identifying

characteristics or factors that can influence the research design. This process is guided by

discussions with management and industry experts, case studies and simulations, analysis

of secondary data, qualitative research and pragmatic considerations.

'Step 3: Research Design Formulation'

A research design is a framework or blueprint for conducting the marketing research

project. It details the procedures necessary for obtaining the required information, and its

purpose is to design a study that will test the hypotheses of interest, determine possible

answers to the research questions, and provide the information needed for decision

making. Conducting exploratory research, precisely defining the variables, and designing

appropriate scales to measure them are also a part of the research design. The issue of

how the data should be obtained from the respondents (for example, by conducting a

survey or an experiment) must be addressed. It is also necessary to design a questionnaire

and a sampling plan to select respondents for the study.

More formally, formulating the research design involves the following steps

1. Secondary data analysis

2. Qualitative research

3. Methods of collecting quantitative data (survey, observation, and

experimentation)

4. Definition of the information needed

5. Measurement and scaling procedures

6. Questionnaire design

7. Sampling process and sample size

8. Plan of data analysis

Step 4: Field Work or Data Collection

Data collection involves a field force or staff that operates either in the field, as in the

case of personal interviewing (in-home, mall intercept, or computer-assisted personal

interviewing), from an office by telephone (telephone or computer-assisted telephone

interviewing), or through mail (traditional mail and mail panel surveys with prerecruited

households). Proper selection, training, supervision, and evaluation of the field force

helps minimize data-collection errors.

Step 5: Data Preparation and Analysis

Data preparation includes the editing, coding, transcription, and verification of data. Each

questionnaire or observation form is inspected, or edited, and, if necessary, corrected.

Number or letter codes are assigned to represent each response to each question in the

questionnaire. The data from the questionnaires are transcribed or key-punched on to

magnetic tape, or disks or input directly into the computer. Verification ensures that the

data from the original questionnaires have been accurately transcribed, while data

analysis, guided by the plan of data analysis, gives meaning to the data that have been

collected. Univariate techniques are used for analyzing data when there is a single

measurement of each element or unit in the sample, or, if there are several measurements

of each element, each RCH variable is analyzed in isolation. On the other hand,

multivariate techniques are used for analyzing data when there are two or more

measurements on each element and the variables are analyzed simultaneously.

Step 6: Report Preparation and Presentation

The entire project should be documented in a written report which addresses the specific

research questions identified, describes the approach, the research design, data collection,

and data analysis procedures adopted, and presents the results and the major findings.

The findings should be presented in a comprehensible format so that they can be readily

used in the decision making process. In addition, an oral presentation should be made to

management using tables, figures, and graphs to enhance clarity and impact.

For these reasons, interviews with experts are more useful in conducting marketing

research for industrial firms and for products of a technical nature, where it is relatively

easy to identify and approach the experts. This method is also helpful in situations where

little information is available from other sources, as in the case of radically new products.

CHAPTER 3.

COMPANY PROFILE

COMPANY PROFILE :

• Founded in 1971

• India’s largest clutch manufacturer & Exporter

• 3 Decades of undisputed Leadership

• Our Customers

• India’s largest exporter of clutches, exports to 40 countries, 85% to Americas

• Largest aftermarket distribution network in India.

• State-of-the-art testing facility for Clutches

• Govt. of India recognized R & D

• Recipient of prestigious National Awards

BOARD OF DIRECTORS

Chairman & Managing Director : Sh. Vijay Krishan Mehta

Executive Director : Sh. Anuj Mehta

Non-Executive Director : Sh. K.K. Taneja

Non-Executive Director : Sh. Avinash P. Gandhi

Non-Executive Director : Sh. Chandra Shekhar Aggarwal.

Non Executive Director : Sh. Satish Sekhri

Non-Executive Director : Smt. Pooja Kapur

KEY EXECUTIVES

S.No

NAME

DESIGNATION

1.

Pritam Paul

Company secretary

2.

K. K. Taneja

Director

3.

C.S. Aggarwal

Director

4.

Pooja Kapoor

Director

5.

Anju Mehta

Exec.Director

6.

A.P.Ghandhi

Add.Director

7.

Satish Sekhri

Add.Director

Business Areas :

Clutch Auto is catering to three sectors viz. OEM, Replacement Market and

Exports. Even under depressed business environment, the Company was able to

optimally use its product mix. The Company was able to make good the shortfall

in OEM sales by introducing 77 new products by fiscal year end in the

Aftermarket and Exports segment. Clutch Auto has made long term commitments

to OEMs' in Commercial Vehicle & Tractor segments including a Co-

Manufacturing Agreement with a MNC Clutch Manufacturer.

Company History :

Clutch Auto was founded way back in 1971 and now it is India’s largest

clutch manufacturer & exporter. Clutch Auto Ltd (CAL) is the largest supplier of clutches

to the commercial vehicle and tractor segment in India. It also caters to the passenger

vehicle and replacement demand.

The company is India’s largest clutch manufacturer & exporter has held 3 Decades of

undi-sputed Leadership. The company is also India’s largest exporter of clutches and

exports to 40 countries, 85% to Americas.The company is having largest aftermarket

distribution network in India and has state-of-the-art testing facility for Clutches. The

company is having Govt. of India recognized Research &development facility.

Clutch Auto Ltd (CAL) is the largest supplier of clutches to the commercial vehicle and

tractor segment in India. It also caters to the passenger vehicle and replacement demand

and its clientele includes Tata Motors, Ashok Leyland, Maruti Udyog, TAFE, Toyota,

BEML, Escort Tractors and StateTransport Undertakings, among others.

BUSINESS AREAS

OEMREPLACEMENT EXPORTS

Clutch is a technology intensive business dominated by 6 players in the world, all

operating either as joint ventures or as technology partners or license arrangements. CAL

is the only standalone clutch company in the world, which is testimony to its technology

capability.The company has developed, upgraded and upsized Ceramic and Cushioned

Organic Clutches with Retrofittability on old models of the popular trucks and buses,

carving a new market segment with a long term aftermarket potential besides fitment on

current ongoing production.Peculiarities of Indian operating conditions both in case of

passenger carriers and commercial vehicles and driving habits have been taken into

consideration and performance demonstrated after simulation and evaluation of modified

Designs based on the valuable field data.

The ‘Cool Clutch’ developed for the US market alongwith Wear Indication capability –

the ‘Whisper’ series and ‘Ez N Lite’ – Twin Ceramic Self-Aligning clutch for heavy

applications have been offered to the Indiancustomers.The company has ventured into the

US truck market through the aftermarket route making it the only offshore company to be

able to do so. It plans to be a niche player in the low volume, high value added heavy-

duty clutch segment for class 7 and 8 trucks. This is because, the replacement demand for

trucks in US, with a population of nearly 4.5-5mn units, is nearly as high (250,000 units

pa) asthe demand for new trucks.

CAL invested in technology, research and filed for patents and trademarks for a number

of products that it developed. Today, the company is the only independent component

company from India with an independent patents and trademarks portfolio. It has built

many innovative products like the ‘Cool Clutch’,’ Whisper’ and ‘EZ N Lite’ offering

interchangeability unit-to-unit, component-to component with the same serviceability

norms and tools.

The company’s clientele includes Tata Motors, Ashok, Leyland, Maruti Udyog, TAFE,

Toyota, BEML, Escort Tractors and state transport undertakings, among others.

Awards/ Achievements:-

In 1996-ISO 9002 Certification by KPMG Peat Marwick LLp Certification

In 2000 -QS 9000 Certification by KPMG Peat Marwick LLp

In 2003 -QS-9000:1998 Certification by TUV Anlagentechnik Gmbh

In 2005 - TS 16949:2002 Certification by TUV Anlagentechnik Gmbh. R& D

Certification by - Ministry of science & Technology Department of Science & research

In 2004 - Export House Certification by - Ministry of Commerce & Industry, Office of

Joint Director General of foreign Trade.

Fig 1.1: Achievements

COMPANY PRODUCTS

Product

Name

Year

Month

Sales

Quantity

Sales

Value(Rs.Million)

% of

STO

Clutch

Cover

Assemblies 2009

03 805188.00

1057.93

48.11

Clutch

Plates/Discs 2009

03 1074459.00

853.31

38.80

Others 2009 03 0.00 219.95 10.00

Metallic

Clutch

Plates/Discs 2009

03 21793.00

37.23

1.69

Clutch

Repairs

Kits 2009

03 78579.00

30.80

1.40

Ceramic

Metallic

Pad 2009

03

0.00

0.00

0.00

Fig 1.2 : Products

Clients

1. Tata Motors Ltd. (Daimler Benz)

2. Ashok Leyland Ltd. (Iveco)

3. Eicher Motors (Mitsubishi)

4. Bajaj Tempo Ltd.

5. JCB Ltd.

6. Mahindra & Mahindra (Automotive Division)

7. Bajaj Auto Ltd.

8. Bajaj Tempo Ltd.

9. Scooters India Ltd.

10. Maruti Suzuki, and Hindustan Motors

11. Mahindra Gujarat Tractors Ltd.

12. Tractors & Farm Equipments Ltd. (TAFE)

13. Case New Holland Tractors Ltd.

14. Eicher Tractors Ltd.

15. Escorts Tractors

16. Farmtrac Tractors

17. Punjab Tractors Ltd.

18. International Tractors Ltd. (Renault)

19. HMT Tractors (Zetor)

20. John Deere, and Indo Farm

21. Bharat Earth Movers Ltd. (BEML) – Komatsu

Competitors :

Company

Sales

(Rs.Million

)

Current

Price

Change

(%)

P/E

Ratio

Market

Cap.

(Rs.Million)

52-Week

High/Low

Bosch 48095.28 5736.70 -0.68 24.38 181367.90 5914/3381

Exide Inds 42134.70 133.90 -0.48 19.72 114367.50 142/73

Motherson

Sumi Sys12949.43 166.45 0.39 36.01 64254.76 167/72

Amtek Auto 10524.57 191.55 -1.77 23.32 39474.44 239/107

Tube

Investments23456.40 129.25 -1.52 29.88 24267.38 133/51

Wabco - TVS 4259.46 859.55 -2.58 21.30 16735.10 983/234

Amara Raja 14634.02 199.10 2.79 9.90 16543.19 199/107

Bosch Chassis 5311.69 595.95 0.00 16.19 12391.59 597/593

Banco

Products2879.14 128.90 -1.53 11.91 9361.79 135/29

Amtek India 7994.47 63.70 -0.86 11.67 8308.25 78/35

Federal-Mogul 7599.70 139.95 -1.41 14.93 7896.98 182/47

Goetze

Auto.Axle 2672.39 495.80 0.53 18.39 7453.23 519/130

Sundaram-

Clayton4923.70 179.30 -2.45 56.69 6972.48 194/60

Jamna Auto

Inds.5576.06 128.10 -0.58 29.66 4711.66 140/29

Sona Koyo

Steerg Sys8852.10 22.80 -3.18 21.62 4680.37 24/10

Gabriel India 6969.94 59.40 -3.10 18.31 4402.69 68/13

ZF Steering 2161.20 414.50 -3.48 10.90 3896.53 458/127

Shanthi Gears 1213.87 45.30 -0.88 23.07 3734.41 56/32

Rico Auto Inds 7279.10 26.95 -2.36 58.59 3556.40 33/17

Wheels India 12413.76 335.00 0.30 25.45 3296.39 370/151

Minda

Industries4456.95 293.00 -1.61 13.68 3128.41 362/143

Subros 6944.16 50.55 2.02 10.72 2972.44 53/25

Pricol 7793.61 33.15 1.22 11.57 2947.50 33/10

Lumax 6341.54 312.15 0.27 49.10 2909.95 309/100

Industries

SteStrWhe 3173.14 212.75 0.45 19.86 2883.90 212/59

Denso India 5306.46 95.75 -0.26 14.17 2676.45 109/54

Munjal Showa 8291.25 64.75 -2.26 10.77 2649.67 70/43

Halonix 3840.63 91.30 0.55 0.00 2544.15 109/61

Hind.Compo 773.08 455.00 1.35 0.52 2469.23 480/151

Suprajit Engg 1634.65 19.15 -2.05 10.76 2346.39 20/5

Setco

Automotive1633.44 255.20 2.20 12.37 2202.82 271/115

Fiem Inds 2192.89 174.75 -0.23 19.51 2095.18 182/53

India Nipon

Electric1279.20 256.45 0.45 10.35 2062.59 270/118

Ucal Fuel Sys. 3002.57 86.55 -3.35 30.81 1980.28 110/42

Autoline Inds 2340.73 159.35 0.95 14.26 1926.55 165/68

Fairfield Atlas 1126.56 68.65 0.07 12.42 1874.19 78/25

Automobile

Corp2333.59 281.95 -3.16 0.00 1869.66 297/170

Hi-Tech Gears 2947.76 194.85 -1.57 10.41 1857.56 205/52

Tudor India 1265.90 69.25 0.00 146.67 1704.71 69/69

Jay Bharat

Maruti6917.26 77.80 -0.83 7.32 1698.44 86/39

LumAutTec 2270.27 134.55 2.16 22.61 1531.87 143/26

Rane Engine

Valve2360.31 290.15 -1.64 31.70 1519.54 332/76

Rane Brake

Linings2363.00 190.15 0.00 13.60 1371.93 194/168

Rane Madras 4196.56 132.45 -1.71 8.23 1369.62 140/38

Pren.Pipe 1274.51 99.00 1.54 10.05 1365.00 111/45

Shivam

Autotech1428.13 130.25 0.66 11.18 1294.00 138/53

REIL

Eleetricals191.41 339.00 4.21 66.01 1279.73 339/210

Munjal Auto

Inds2351.13 126.60 -0.43 7.98 1271.50 132/54

Ceekay Daikin 1038.82 194.55 -4.98 0.00 1229.87 224/46

Omax Autos 8120.76 56.70 -1.31 8.59 1228.75 71/30

Clutch Auto 1974.49 71.80 -1.24 14.45 1212.77 90/27

IST 190.43 202.00 2.02 65.35 1154.75 249/96

Perfect Circle

India736.88 32.55 0.00 0.00 1085.11 0/0

Igarashi

Motors2578.13 73.85 -4.95 39.52 1078.04 79/19

Enkei

Castalloy3006.96 92.80 -4.33 7.96 1067.00 150/48

Auto.Stamp 4143.70 102.10 -1.35 14.59 1055.55 110/38

JMT Auto 1953.40 63.00 -5.69 27.23 961.60 78/31

IP Rings 678.55 135.35 1.31 16.91 940.83 135/37

Sund.Brake 1993.32 225.90 -3.38 16.51 919.90 285/137

Talbros Auto

Compo2291.43 73.45 -0.74 15.06 913.58 79/33

Rane Brake

Lining1810.23 114.95 0.88 9.04 901.91 129/60

Harita Seating

Sys1962.52 115.00 0.44 0.00 889.56 117/41

Samkrg Pistons 991.29 88.00 3.83 11.71 832.29 86/44

Triton Valves 913.26 804.55 -1.69 16.85 810.24 1100/283

ANG

Industries1154.34 65.10 5.00 10.72 777.48 60/34

JBM Auto 2163.64 67.50 -1.82 8.51 701.17 82/31

Jay Ushin 2508.83 154.15 0.42 8.98 593.20 170/58

Bharat Seats 3360.63 18.00 0.00 13.64 565.20 27/10

Bharat Gears 2462.40 71.40 0.28 9.06 556.63 75/25

Hella India 139.75 166.00 -1.01 0.00 531.84 202/95

Machino

Plastics1234.44 82.00 -0.36 7.08 505.06 86/40

Jai Parabolic

Sprg873.21 29.05 0.00 0.00 501.52 30/27

Menon

Bearings438.88 52.40 -0.66 10.69 492.69 67/28

Menon Pistons 1074.89 93.20 2.47 7.13 463.85 98/55

PAE 2407.45 44.95 -4.26 9.40 446.95 57/21

Mah.Compo 459.97 90.35 -2.90 15.86 408.33 99/54

KAR Mobiles 833.90 156.40 -2.43 15.13 359.07 183/108

Autolite India 735.93 34.90 -2.38 61.47 338.06 45/21

LumAutSys 1000.45 41.65 -1.30 0.00 312.45 52/25

Bosch Rexroth

(I)3575.84 54.25 0.00 1.50 287.50 0/0

GS Auto Intl. 926.52 32.70 -1.95 5.69 266.80 59/19

Hind Hardy

Spicer333.78 143.15 2.54 56.41 209.18 138/41

Vybra Automet 547.72 27.05 -2.52 0.00 197.83 31/10

KEW Inds. 532.19 12.12 -1.94 8.33 185.82 19/10

Raunaq Auto

Comp577.89 22.40 0.00 7.11 177.67 28/11

Remsons Inds 690.33 28.85 -0.52 9.87 164.83 32/15

Trident Tools 0.16 22.60 0.44 25.14 151.88 79/16

Delta Magnets 74.53 28.15 3.87 89.61 131.73 34/12

FrontSpring 269.55 33.85 3.36 4.27 128.99 43/11

Guj.AutGe 144.35 341.00 3.27 8.74 115.57 386/167

Spectra

Industries184.88 14.75 1.72 17.79 102.64 19/6

Gajra Bevel

Gears230.61 6.91 19.97 3.32 54.15 9/4

Coventry

Spring127.41 8.25 0.00 0.00 43.31 0/0

Coventry

CoilOMatic323.91 8.82 -3.08 19.91 41.02 11/6

GG

Automotive

Gears

43.79 4.90 0.00 12.82 38.79 0/0

Jagan Lamps 106.32 5.35 -1.11 44.41 37.30 9/3

Brakes Auto 239.10 9.03 -2.59 37.04 36.30 15/4

Mipco

Seamless Rings0.00 0.92 0.00 0.00 3.30 0/0

Fig 1.3 : Patents

Fig 1.4 : Trademark

TECHNOLOGY USED BY COMPANY:

Company is committed to deliver superior products across all segments. Under Capacity

expansion and modernization plan with investment of US$ 15 Mio targeted to be

implemented by December, 2010, the Company has ordered specialized machines from

leading Global manufacturers. These machines include Engine based Clutch

Dynamometer and other latest test machines, Virtual testing, Automatic riveting

machines, latest NVH Systems, Torque test machines etc., which will not only sharpen

the Technology edge of the Company but will also increase the productivity at large.

New concept "Traceability Till Death" (TTD), have been implemented successfully.

This unique process of Bar coding the Clutch with the Engines &Transmission has been

widely accepted across vehicle manufacturers. Additional machines are being imported to

support the 100% production system with this unique characteristic. This will kill the

spurious products being available in the market.

Development of Dual Sintered Buttons –

In association with Hindustan Aeronautics Ltd. (HAL), Clutch Auto has developed the

technology for Dual Sintered Buttons used on commercial vehicles clutches known as Hi-

Life & Extra Life Clutches, specialized CA City and universal Clutches for Domestic as

well as Overseas applications. By use of the Dual Sintered Buttons, the Clutch life will

increase by at-least 100%.

Development of Cerametallic Buttons –

There are only two recognized sources of this type of buttons, one in Australia and the

other one in USA. We have successfully done localization of these kind of button with

active assistance of Hindustan Aeronautics Ld. (HAL) with technology edge i.e. double

life - the Road Raider source with matching service life of clutches with much more

competitive prices. This development activity is being extended to local manufacturers

under the DEG Project which will be a major step in terms of containing cost of clutches

both for domestic and international truck manufacturers (US, Europe and other markets).

Market penetration of 77 new items launched during 9th International Auto Expo, 2008

(New Delhi) have opened up new vistas/opportunities with an edge in such segments

where the Company has not pursued business opportunities. The order book position in

this segment have been increased by at-least 1.5 times.

CAL’s Technology for Millennium FULL SCALE TESTER

CAL’s Technology for Millennium DIAPHGRAGHM ASSL’Y TEST

BENCH

FST CAPABILITIES

Full Scale Test - As per JASO ( Measurement

of Torque,Friction

Face Temp, Speed under

specific inertia on flywheel )

Test Under specific Torque

Stall Test

Anti Chatter Test - As per

JASO ( Under different Temp & Humidity)

Comparative Testing of

Facings with a special Flywheel

R & D - Simulation under

specific conditions

CAL’s Technology for Millennium

BALANCING MACHINE

CAL’s Technology for Millennium

TORQUE / HYSTERESIS TEST BENCH

Machining of Forging

Castings

Fully integrated

manufacturing infrastructure

having vast production and

testing facilities.

Two million Clutch Discs

andHalf million

Clutch Cover Assemblies per

annum and increasing.

Plant on New Delhi's

periphery sprawling over

30,000sq. meters.

Automatic Facing Riveting.

Automated Heat Treatment

DISC DRAG CHECKING MACHINE - ONLINE

TORQUE/HYSTERESIS TEST BENCH- ONLINE

TECHNICAL SPECIFICATIONS TECHNICAL SPECIFICATIONS

RANGE - 160-430 MM DIA

THICKNESS UNDER LOAD OF DISC

CONCEPT OF DRAG-PRACTICAL

METHOD OF CHECKING

DISTANCE UNDER WHICH DISC

BECOME FREE – SUBJECTIVE

METHOD

OBJECTIVE METHOD

• BY INTRODUCTION OF SMALL TORQUE & SPLINE SHAFT PRINTING AND DATA STORAGE FACILITY

• HISTOGRAM OF BATCH PARAMETERS AND Cp/CpK

RANGE 160-430 MM DIA

TORQUE AND HYSTERESIS

MEASUREMENT

TWIST UPTO 30 DEGREE BOTH

DIRECTIONS

CAPABLE OF CHECKING PREDAMP

TORQUE SIMULTANEOUSLY

PLOTTING PRINTING & STORING

FACILITIES

COVER ASSLY PARAMETER LOAD CHECKING RIG - ONLINE

TECHNICAL SPECIFICATIONS

RANGE - 160 MM TO 310MM DIA

CHECKING 27 PARAMETERS IN 24 SECONDS

SETUP HEIGHT / FINGER RUN OUT – BY

NON- CONTACT SENSOR

PLOTTING AND PRINTING FACILITIES

STORAGE FACILITIES FOR 10 YEARS

BATCH WISE HISTOGRAM / CALCULATION OF

CP/CPK

PERCUSSION MARKING

MISTAKE PROOF – UNCLAMP

AUTOMATICALLY IF JOB IS

REJECTED – OPERATOR HAS TO UNCLAMP

MANUALLY.

HEAT TREATMENT FACILITY

DUAL CHAMBER FURNANCE

Two Zone Gas Carburizing Furnace

Computerised PLC Controlled ( 54 Programmes )

Carbon Potential Control + 0.04 %

Temperature Control + 4 dg. Cn.

STATE OF THE ART ROTARY FURNACE SHOT PEENING MACHINE

Feature of 4 step forward and 3 step backward

(variable depending on size of Diaphragm Spring.

Flame Curtain while opening of the door, so no

chances of Decarb.

PSA Nitrogen Generator for protective atmosphere.

Hearth speed control through PLC

As quenched hardness consistency in ± 1 HRC.

Conveyorised shot peening machine

Shot velocity and conveyor speed

adjustable

Impingement of shots at 90°resulting

uniformity of shot pattern.

Auto shot replenishment provision

Shot peening control – Almen strips and

Almen gauge.

GLOBAL MARKET

INTERNATIONAL EXPERIENCE

Exports to > 40 countries around the Globe.

85%of total Global Sales to USA

> 400 designs

Pull Type Clutches

More focus on heavy duty clutches

Speedy customer service and product development.

100% compound growth in total Global Sales.

AFTER MARKET

Strengths Strongest Brand Equity

Widest Range

Competitive Pricing

7 Warehouses

After Sales Service

100 State/Town Distributors

400 Stockiest

3000 Retailers

35 Area Representatives

Aggressive Sales Policy

50% growth since last 3 yrs.

VEHICLE APPLICATION

Categories Range of Vehicle Applications

Passenger CarsMaruti- Suzuki

Premier- Fiat

JCBL Motor

Sipani

HM

Datsun

Honda

Isuzu

Mazda

Mitsubishi

Nissan

Suzuki

Toyota

Audi

Austin

Bedford

BMC

British

Leyland

DAF

Fiat

International

Land Rover

Mercedes Benz

Peugeot

AMC

Chrysler

Ford

GM

Daewoo

Hyundai

Lada

Proton

Skoda

Buick

Cadillac

Dodge

Jeep

Komatsu

Lipe

M.A.N.

Mercury

Oldsmobile

Plymouth

Pontiac

Light Commercial Vehicles Allwyn Nissan

Bajaj Tempo

Eicher

Mahindra

DCM- Toyota

Heavy Commercial Vehicles Tata

Ashok Leyland

Swaraj

Tractors Escorts

Ford

HMT

Tafe

Sonelica

Mahindra

Swaraj

GreevesRenault

Scania

Volkswagon

Volvo

Spicer

Studebaker

Subaru

Zetor

Utility Vehicles Eicher

Mahindra

INVESTMENT HIGHLIGHTS

(Q3 FY10)

For the quarter ended on December 31, 2009 (Standalone) the company has

registered a 43.73 % (YOY) growth in the net sales and stood at Rs.577.95 mn from

Rs.402.11 mn of the corresponding period of the previous year.The operating profit for

the quarter stood at Rs.95.73 mn from Rs.49.74 mn, for the same quarter of last year.

Operating profit margin surged to 16.56% from the corresponding previous quarter of

12.37%. PAT for the quarter ended December 2009 increased significantly by 52.26% to

Rs. 23.28 millions from Rs. 15.29 millions. EPS for the quarter stood at Rs.1.42 per

equity share of Rs.10.00.

Quarterly Results – Standalone (Rs in mn)

As at Q3FY09

Q3FY10 %Change

Net Sales

402.11 577.95 43.73%

PAT 15.29 23.28 52.26%

Margins (%) :

Clutch Auto to acquire land in Rajasthan for Rs 150 mn :

The company board has approved the proposal to acquiring 50,000 sq mtrs land

(industrial plot at Kahrani (Bhiwadi extn.) district Alwar, Rajasthan at a to cost of Rs 150

million.The management has taken this decision with a broader objective to shift the

factory from its present site at Faridabad to Kahrani (Bhiwandi Extn.), Rajasthan at a

much bigger space (almost double size) at low cost for its expansion.

The site at Kahrani is close to the industrial corridor - Manesar industrial area, which has

easy proximity and locational advantages.

Ventured into the US truck market :

The company has ventured into the US truck market through the aftermarket route

making it the only offshore company to be able to do so. It plans to be a niche player in

the low volume,high value added heavy-duty clutch segment for class 7 and 8 trucks.

This is because, the replacement demand for trucks in US, with a population of nearly

4.5-5mn units, is nearly as high (250,000 units pa) asthe demand for new trucks.

CAL invested in technology& research :

CAL invested in technology, research and filed for patents and trademarks for a

number of products that it developed. Today, the company is the only independent

component company from India with an independent patents and trademarks portfolio. It

has built many innovative products like the ‘Cool Clutch’,’ Whisper’ and ‘EZ N Lite’

offering interchangeability unit-to-unit, component-to component with the same

serviceability norms and tools.

12 months ended Profit&loss Account (Standalone) :

VALUE (Rs.in million) Description

FY08A FY09A FY10E FY11E

Net Sales 2168.76 1961.20 2353.44 2706.46

Other Income 0.80 - - -

Total Income 2169.56 1961.20 2353.44 2706.46

Expenditure -1828.67 -1697.01 -1965.12 -2273.42

Operating Profit 340.89 264.19 388.32 433.03

Interest -113.39 -133.06 -146.23 -151.45

Gross Profit 227.50 131.13 -242.09 281.58

Depriciation -58.90 -77.74 -141.15 -162.32

Profit Before Tax

168.61 53.39 100.94 119.26

Tax -14.07 -3.80 -10.09 -11.93

Profit After Tax 154.54 49.59 90.84 107.33

Net Profit 154.54 49.59 90.84 107.33

Equity captial 163.15 163.15 163.15 163.15

Reserves 1007.64 1037.37 1128.21 1235.55

Face Value 10.00 10.00 10.00 10.00

Total No.of Shares

16.32 16.32 16.32 16.32

EPS(Rs) 9.47 3.04 5.57 6.58

Quarterly Ended Profit & Loss Account (Standalone):

VALUE (Rs.in million) Description

30-June-09 3m

30-Sept-09 3m

31-Dec-09 3m

31-March-10E 3m

Net Sales 530.97 551.14 577.95 612.63

Other Income - - - -

Total Income 530.97 551.14 577.95 612.63

Expenditure -448.79 -460.95 -482.22 -511.54

Operating Profit 82.18 90.19 95.73 101.08

Interest -32.33 -31.82 -39.10 -41.23

Gross Profit 49.85 58.37 -56.63 59.85

Depriciation -27.00 -39.70 -33.35 -35.16

Profit Before Tax

22.85 18.67 23.28 24.69

Tax -2.70 -0.80 - -2.47

Profit After Tax 20.15 17.87 23.28 22.22

Net Profit 20.15 17.87 23.28 22.22

Equity captial 163.15 163.15 163.15 163.15

Face Value 10.00 10.00 10.00 10.00

Total No.of Shares

16.32 16.32 16.32 16.32

EPS(Rs) 1.24 1.10 1.43 1.36

CHARTS :

A). Net sales & PAT Chart :

B). EV/EBITDA(x) chart :

C). P/E(X) Chart :

D). P/BV(x) Chart :

Industry Overview :

Automotive Industry, a prominent segment of the national economy was adversely

affected due toGlobal slowdown, however, continued to survive due to Govt, of India's

committed expenditure onthe infrastructure sector of the economy. This is the first year

of set back ever since the Automotive Mission Plan 2016 was announced by the

Government of India with growth rate estimated at 6%, after achieving double digit

growth in recent years. The year witnessed steady falling demand for medium and heavy

commercial vehicles (MHCV), which was primarily due to overall slowdown in

industrial production. The severe demand shortage since October, 2008 led the leading

commercial vehicle manufacturers to cut down schedules drastically, followed by

repeated lay-offs, resorting to repeated book closures, job-cuts etc. This was coupled with

huge credit crunch and the working capital of large OEMs virtually exhausted, impacting

on liquidity of the Tier I suppliers. Hardening of interest rates coupled with higher

inflationary pressures and industrial slowdown affected the input costs and availability of

essential raw materials very adversely resulting in both bottom and top lines in the

Automotive Industry. In-spite of RBI and other Financial Institution's continued

initiatives to enhance liquidity in the system, Bankers were shy to increase their exposure

in the Automotive Sector, and as such could not virtually make any impact on the

liquidity. The situation was further fuelled by the Transporters strike in early January,

2009 for a shorter haul. Transporters have deferred purchases despite stable freight rates

with rising cost of ownership impacting their profitability amidst concerns over freight

demand sustainability.

In International arena, US Heavy-Duty truck sales hit their lowest level in 16 years

during 2008, falling for the second straight year, even though they made a modest

recovery after hitting bottom in May, 2008. Further, several North American truck and

engine makers underwent significant change during 2008 as they prepare for the next

round of federal emission regulations slated for 2010. The fall out of the US Big Three

viz. GM, Ford & Chrysler made significant impact on the component manufacturers in

India

As per SIAM Report, overall Industry performance in 200809 was as under –

In domestic market, Passenger vehicle segment registered growth of 0.13% during

2008-09, the sale of overall commercial vehicles declined by (-) 21.69%. Medium and

Heavy Commercial vehicles

declined by (-) 33.16% and Light Commercial vehicles recorded de-growth at (-) 7.10%.

In Exports market, 2008-09 saw automobile exports growth of 23.61% with all

segments except Commercial vehicles, which was declined at (-) 27.67% during the year.

The Indian auto ancillary industry has come a long way since it had its small beginnings

in the1940s. If the evolution of the industry is traced in India, it can be classified into

three distinct phases namely: Period prior to the entry of Maruti Udhyog Ltd, Period after

the entry of Maruti Udhyog Ltd and Period post Liberalization. The period prior to the

entry of Maruti Udhyog Ltd was characterized by small number of auto majors like

Hindustan Motors, Premier Automobiles, Telco, Bajaj, Mahindra and Mahindra, low

technology and assured business for most of the autocomponent manufacturers.

The entry of Maruti in the 1980s marked the beginning of the second phase of the

industry. The auto ancillary industry in the country really showed a spurt in growth

during this period. This period witnessed the emergence of a new generation of auto

ancillary manufacturers who were required to meet the stringent quality standards of

Maruti’s Korean collaborator Suzuki of Japan. The good performance of Maruti resulted

in an upswing for the domestic auto ancillary industry. It was during this period that auto

components from India began to be exported.

The entry of foreign automobile manufacturers ranging from Mercedes Benz, Ford,

and General Motors to Daewoo following the government liberalizing the foreign

investment limits saw the beginning of the third phase of the evolution of the industry.

The auto ancillary industry witnessed huge capacity expansions and modernization

initiatives in the post liberalization period.

Technological collaborations and equity partnerships with world leaders in auto

components 19 became a common affair. However, the tough competitive scenario saw a

lot of consolidation in the industry and it still continues unabated.

In 2008-09, automobile sales are expected to grow by around 12 per cent in value-terms,

driven mainly by favourable demographic trends, anticipated growth recovery in

commercial vehicles and robust export growth. Consistent growth and dedication have

made the Indian automobile industry the second- largest tractor and two-wheeler

manufacturer in the world. It is also the fifth-larges commercial vehicle manufacturer in

the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The

Indian automobile market is among the largest in Asia.

The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata

Motors, Bajaj Motors, Hero Motors, Ashok Leyland, and Mahindra & Mahindra have

been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar

Motor Ltd., Skoda India Private Ltd.,Honda Siel Cars India Ltd. have also entered the

market and have catered to the customers’ needs to a large extent.

Not only the Indian companies but also the international car manufacturing companies

are focusing on compact cars to be delivered in the Indian market at a much smaller

price. Moreover, the automobile companies are coming up with financial schemes such as

easy EMI repayment systems to boost sales. There have been exhibitions like Auto-expo

at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are

many new projects coming up in the automobile industry leading to the growth of the

sector.

The Government of India has liberalized the foreign exchange and equity regulations and

has also reduced the tariff on imports, contributing significantly to the growth of the

sector. Having firmly established its presence in the domestic markets, the Indian

automobile sector is now penetrating the international arena. Vehicle exports from India

are at their highest levels. The leaders of the Indian automobile sector, such as Tate

Motors, Maruti and Mahindra and Mahindra are leading the

exports to Europe, Middle East and African and Asian markets. The Ministry of Heavy

Industries has released the Automotive Plan 2006-2016, with the motive of making India

the most popular manufacturing hub for automobiles and its components in Asia. The

plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the

domestic as well as international arena.

The Future Growth Drivers :

1). India's huge geographic spread- 2). Increasing Road Development.

Mass Transport System.

3). Increasing disposable Income 4). Replacement of aging four wheelers

with the service sector.

5). Graduating from two wheelers 6). Increasing dispensable income

to four wheelers. of rural agri sector.

7). Growing Concept of Second Vehicle

in Urban Areas.

1 Year Comparative Graph :

Outlook and Conclusion :

• At the current market price of the stock Rs81.70.00, the stock trades at a P/E of

14.67 x and12.42 x for FY10E and FY11E respectively.

• The EPS of the stock is expected to be at Rs.5.57 and Rs.6.68 for the earnings of

FY10E and FY11E respectively.

• The top line and bottom line of the company are expected to growth a CAGR of

17.47% and 47.12% over FY09 to FY11E.

• On the basis of EV/EBDITA, the stock trades at 4.20 x and 4.33 x for FY10E and

FY11E respectively.

• Price to Book Value of the stock is expected to be at 1.03 x for FY10E and 0.95

for FY11E.

• The Indian automobile industry is on fast revival after tough period in later half

of

FY09.With confidence returning in economy, CV and Capital goods sales are

witnessing upward trend after almost 2 years of slow down.

• Indian ancillary industry itself has emerged as hub for global markets. There is

fast

expansion in Service network by all auto makers and vehicle owners are becoming

more sensitive to quality of service, which can benefit branded components

makers like CAL.

• Company, by launch of identifiable genuine products across full range, was able to

weed out spurious products which led to sharp rise in sales in replacement market

from current year, leading to further rise in replacement market sales to over 50%

soon.

• A number of global automotive players are setting production capacities in India,

which can benefit component makers.

• The replacement market is the most important segment, accounting for 47% of

the

sales.CAL has vast marketing plan India network of 37 marketing offices in 20

major cities.

• Latest trend indicates that – in second half, the sales to OEMs as well as to

replacement market is growing at a very fast pace. This will result in to much

higher capacity utilizations and with faster growth in replacement market, plus

margins will grow still better.

• Growth in Auto Industry directly benefits the Ancillary industry.

• We recommend ‘BUY’ in this particular scrip with a target price of Rs.100.00 for

Medium to Long term investment.

SWOT ANALYSIS :

Strengths -

> Sustained Brand leadership in a highly technology intensive industry.

> Low manufacturing cost compared to other leaders of the Industry across.

> Efficient supply flow thru' vertical integration.

> Fiercely innovative & focus on heeds of end customers.

> Strong planning & implementation skills.

> Versatile Clutch Dyno - testing facility (under implementation).

> Products are virtually in the verge of Double life.

> Outcome of the NMITLI project will create altogether a different set of products

with high economic benefits.

> MEOST (Multiple Environment Over Stressed Testing) facility.

> Preferred to remain low profile with biting capability.

> Customer Centric development with high care attitude.

> Improving credibility against MNC's.

> Steps taken during the last one year for increasing the Foundry capacity will

supplement Company's efforts to tap new opportunities in the years to come.

> Timely assistance from International Bankers is likely to help establish need

based capacities and test capabilities to meet the Company's International

multifarious opportunities.

> Increase in market share of the leading Truck manufacturer in USA, with whom

the Company has made long term supply contracts will enhance Company's

business opportunity.

Weakness : -

> Present Scale of operations (however, committed to increase capacity to double by

December, 2010 in phased manner).

> Limited Global reach due to lack of complementarity of the products across

various continents.

> Single manufacturing facility, to be grown upto a full scale integrated facility.

> High dependence on Limited resource base.

Opportunities :-

> Agricultural Segment- Five decade monopoly.

> Heavy duty segment - There is no compatibility among dominant players.

> Technology dissemination.

> Cost effective solutions.

> Long obsolescence.

> Retrofittability on 20-30 years old vintage cars has extended service life even on

old vehicles

Threat –

> Infringements by local players in unorganized sector.

> General market environment.

> Penetration of Spurious products in Aftermarket segment.

> New Technologies.

> Consolidation by the Competitors in domestic arena.

> OEM's target to have total control on the Aftermarket can significantly impact

company's Replacement Market operations.

> Competition from Chinese low cost manufacturers can be a threat to Company's

business in some segments.

.

CHAPTER 4.

DATA ANALYSIS & DATA INTERPRETATION

Ques : Are you satisfied with durability of the product ?

Interpretation :

In this chart persons are divided into four categories A , B , C , & D.

A stands for highly satisfied persons ,B stands for satisfied persons

C stands for those persons who are average satisfied and D stands for who

Are not satisfied.

According to this chart 40% consumer are highly satisfied with durability

Of product 60% are satisfied , 10 % are average satisfied and 5% are not

satisfied.

Ques : Are you satisfied with foundation of the product ?

Interpretation :




Are not satisfied.

According to this chart 32% consumer are highly satisfied with foundation

Of product 60% are satisfied , 9 % are average satisfied and 5% are not

satisfied.

Ques : Are you satisfied with the response of the company regarding enquiry ?

Interpretation :




Are not satisfied.

According to this chart 5% consumer are highly satisfied with the respnose

Of the company regarding enquiry 6% are satisfied , 28 % are average satisfied

and 68% are not satisfied.

Ques : Are you satisfied with the packing of the product ?

Interpretation :




Are not satisfied.

According to this chart 4% consumer are highly satisfied with the packing of

the product 50% are satisfied , 30 % are average satisfied

and 10% are not satisfied.

Ques : Does product reach to the consumer without any damage?

Interpretation :




Are not satisfied.

According to this chart 4% consumer says yes,product reach without any

damage the product 50% are satisfied , 30 % are average satisfied

and 10% are not satisfied

Ques : Are you satisfied with discount offered by company ?

Interpretation :

In this pie chart persons are divided into four categories A , B , C , & D.



Are not satisfied.

According to this chart 35% consumer are highly satisfied with the discount

offered by company 45% are satisfied , 15 % are average satisfied

and 5% are not satisfied .

Ques : Are you satisfied with the correct quantity of material send by us ?

Interpretation :

In this pie chart persons are divided into four categories A , B , C , & D.



Are not satisfied.

According to this chart 3% dealers are highly satisfied with the correct quantity

Of material send by company 50% are satisfied , 60 % are average satisfied

and 5% are not satisfied .

FINDINGS OF THE STUDY :

There are many duplicate product in all segments .

Being problems in replacement , some customers are shifting to

purchase competitor’s products.

There is need of imrovement in supply of products.

Advertising is necessary in the replacement segment.

Although Clutch Auto Ltd. Has competitive price for genuine products but th e

Customer want cheaper products , because they compare the price with local

brands.

Quality is satisfactory in all the market .

Distribution is not so good in replacement market.

Company is not providing promotional schemes with itsClutch discs

and clutch covers . But the Dealers are demanding for it.

In the area of faridabad there is no distributor so there atleast one distributor must

be in faridabad.

LIMITATIONS :

The survey and research has been done in delhi and Faridabad .

Therefore the results shows the market position of Delhi and

Faridabad area only but due to small sample size and short time

Duration results cannot be consider as representative of whole of

the population .

Convenient sampling was used as the mode of conducting the

research.

Retailers may not have been true in answering various questions and

may be baised to certain other questions . Some retailers however

were not willing to share their and did not give any information.

Many respondents did not give a proper thought before filling up the

questions , and some even ticked things, which were not applicable.

Respondents were reluctant to answer some questions, as they took

them as personal , therefore increasing the possibility of error.

RECOMMENDATIONS & SUGGESTIONS :

Company should have more experienced and energetic marketing executive to

promote the sales.

Company should try to improve its manufacturing technology to enhance the

quality and technology .

Company should open the executives outlets of CAL products to remove the

duplicity in the products.

Rate list should be issued to all the dealers .

Company should try to improve the exixting marketing channel , visit to the

dealers to create healthy relation and hearing of complaints . Atleast monthly visit

of sales executives should be in the market to create and maintain healthy

relations.

Company should try to give good margin to retailers to promote the sales.

Give credit to the dealers.

CHAPTER 5.

RECOMMENDATION AND

SUGGESTIONS

RECOMMENDATIONS & SUGGESTIONS

Company should have more experienced and energetic marketing executives to

promote the sales.

Company should try to improve its manufacturing technology to enhance the

quality and technology.

Company should open the executives outlets of CAL products to remove the

duplicity in the products.

Rate list should be issued to all the dealers.

Company should try to improve the existing marketing channel , visit to the

dealers to create healthy relation and hearing of complaints. Atleast monthly

visit of sales executive should be in the market to create and maintain healthy

relations.

Company should try to give good margin to the retailers to promote the sales.

Give credit to the dealers.

CONCLUSION :

For my growth as a student of BCAM studies, it was a milestone to work in such a field .

It was a privilege to work in such an efficient field.I have learned and grown a lot during

my training as a professional and as a human being as well . I found my project extremely

knowledgeable and informative. This was the first opportunity I got to get some practical

experience . It made me familiar with the present work culture as I learned does and don’t

s for a professional in marketing. I am very thankful to all those professionala of Cutch

Auto Ltd who helped me in my project by giving their precious time to me. I am

grateful to all the faculty members of my institute for making my report a success.

S.No - 1

Performance Feedback On Standard Product:

Customer Name :- ……………………………………

Address :- Madan Motors (INDIA)

2, Krishna Motor Market

Kashmere Gate,Dlehi

Date :- 25/06/2010

Ques1:- Are you satisfied with on time delivery ?

A B C D

Ques2:- Are you satisfied with the foundation of the product ?

A B C D

Ques3:- Are you satisfied with the figment of the product?

A B C D

NOTE :

A.Highly SatisfiedB.SatisfiedC.AverageD.Not Satisfied

Ques4:- Are you satisfied with the durability of the product?

A B C D

Ques5:- Are you satisfied with the packing of the product?

A B C D

Ques6;- Are you able to release the value for money from the product?

A B C D

Ques7:- Are the product reaching your end safety without any damage?

A B C D

Ques8:- Are you satisfied with the discount offered by us?

A B C D

Ques9:- Are you satisfied with the correct quantity of material sends by us?

A B C D

Ques10:- Are you satisfied with the proper discounts sent with the material ?

A B C D

S.No - 2

Performance Feedback On Standard Product(2) :

Customer Name :- ……………………………………

Address :- BKS Motors Pvt. Ltd

280,Bara Bazar Guru Nanak

Auto Market

Delhi

Date :- 25/06/2010


A B C D


A B C D


A B C D

NOTE :



A B C D


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D

S.No - 3

Performance Feedback On Standard Product (3) :

Customer Name :- Manoj Kumar

Address :- Shanti Automobiles

Railway Crossing ,Bata Chowk

Faridabad

Date :- 28/06/2010


A B C D


A B C D


A B C D

NOTE :

A. Highly SatisfiedB. SatisfiedC. AverageD. Not Satisfied


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D

S.No – 4


Customer Name :- ……………………………………

Address :- TATA Genuine Spares

2852, Bara Bazar

Kashmere Gate,Delhi

Date :- 28/06/2010


A B C D


A B C D


A B C D


NOTE :


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D

S.No - 5


Customer Name :- ……………………………………

Address :- Nanak Motor Stores

1062, Bara Bazar

Kashmere Gate,Delhi

Date :- 5/07/2010


A B C D


A B C D


A B C D


NOTE :


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D


A B C D

BILIOGRAPHY :

“MARKETING RESEARCH ” by Beri G.C.

(Edition 2007)

WEBSITES :

www.google.com

www.jobscript.com

www.mbanotes.com

www.CAL.com

http://www.CAL.com/

http://www.mbanotes.com/

http://www.jobscript.com/

http://www.google.com/

project file on replacement marketing by faizan ahmad

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