EXECUTIVE SUMMARY
considered
in
selecting
SHRIRAM
TRANSPORT
BABASAB PATIL
SCOPE OF THE STUDY: The study will help the company to know their awareness among the
consumers, the perception, brand position of the company.
The company can find out where their competitors stands in the minds
of the customers.
The study will help the company to make proper marketing strategy for
their weaker areas.
The study covers the customers owning HCV in Aligarh city.
LIMITATIONS OF THE STUDY:Not single work is exception to the limitations every work has got its
own limitations, so due to time constraint, my study confines only to Aligarh
city and it is not possible to make extensive study. It is assumed that the
sample selected represents entire population.
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RESEARCH METHODOLOGY:-
Data source
Area of Research
Research instrument
Sample plan
:
:
:
Aligarh city
Questionnaire
Personal interview
Sample unit
Sampling method
Stratified
Sample size
sampling
50 customers
INTRODUCTION
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Random
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The auto finance industry is expected to grow at 18.6% till 09. Of that
used vehicle finance is expected to grow at 27% p.a, while new car and UV
would grow at 18.9% and 13.8%.
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LITERATURE REVIEW
The world is full of stimuli. A stimulus is any unit of input affecting one or
more of the five senses sight, smell, taste, touch, hearing.The process by
which we select , organiseand interpret these stimuli into a meaningful and
coherent picture is called perception.
Every time you lose a customer, theres a reason why. Do you really know
what your customers think about your business, your offerings, or your
service? Are they having good or bad experiences? Are you equipped with the
insight you need to improve customer satisfaction and loyalty, and make the
changes that matter? Entrepreneurs are often too busy to really take the time to
tap into what customers are really thinking. But customers hold the key. They
know what you need to do to dramatically increase the value you deliver to
them. Why keep this data a secret? Uncovering and understanding it will give
you what you need to be the best, generate higher sales and referrals and earn
repeat business.
Customer Perception Audits by Coach Kevin captures information on
the experiences your customers are having, analyzes the data, and provides
meaningful, actionable recommendations on short-term and long-term
improvements, with the goal of closing the gap between the service that is
delivered and the service that customers expect.
relationship between the supplier of goods and services and its relationship
with the manufacturer or principal and its antecedents. It is on this relationship
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depends the guarantee and warranty terms to which the customer is entitled. A
customer expects trouble free service during the guarantee period. Thereafter it
is expected that a product will last to its full productive life with minimum
down time and the vendor will provide the required support service to ensure
the customer is not put to trouble.
For adopting Japanese management or for customer oriented
management we should first have the willingness and a determination much
above the petty personal gains. It needs an attitudinal change. Looking
towards present socioeconomic and political conditions such change is not
foreseen in immediate future. Market forces will have to play the game with
only customer in mind if India has to make global presence. There is little time
in hand as we are having challenges from all sides. Small nations like Korea,
Taiwan, Singapore etc. have already surpassed us. These nations are working
on a vision and resultant plans. It is the right time for market players to
pamper the customer. As the saying goes, the four deadly sins of corporate
management-complacency, blindness, megalomania, and greed. fit everything
else is overhead!.
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The present day market is flooded with a variety of Non- banking and
as well as banking financial institutions as many as if not more than
companies like SHRIRAM TRANSPORT FINANCE COMPANY, Tata
Finance, Sundaram finance etc. are marketing their products.
Time has become talk of the town therefore the customers give utmost
priority to those financial institutions which gives loans at lower rate of
interest, quick loans, documentation, percentage of finance etc. which have
been exerting influence on the playing decision of the consumer.
SCOPE OF THE STUDY :The scope of the study covers the customers of SHRIRAM TRANSPORT
FINANCE COMPANY and other competitive companies in Aligarh city
Truck owners, Transport companies etc.
BABASAB PATIL
considered
in
selecting
SHRIRAM
TRANSPORT
BABASAB PATIL
CHAPTER II
COMPANY OVERVIEW:Established in the year 1974, the Shriram Group, comprising 750
Branches and Service Centres, in India's premier financial services chain. This
company is the largest player in Truck Financing and Chit funds in the Indian
subcontinent.
The group, having an annual turnover of Rs. 6,000 crore (USD 1.3
billion), has a significant presence in the Insurance Consultancy, Consumer
Durable Finance and Stock Broking businesses. It also have diversified
investments in areas such as Information Technology, Pharmaceuticals,
Property
Development,
Project
Engineering,
Packaging
and
Auto
Components.
putting people first. This 'People First' business philosophy has earned them
unstinted customer loyalty through many generations.
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7MAY2002
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional"
for the year 2002
4FEBRUARY2000
Shriram Recon Trucks incorporated as India's first corporate network for
selling reconditioned used trucks.
15DECEMBER1999
Medicorp, the flagship company of Shriram groups pharmacy
division became the first Indian company to win the Indian Drug
Manufacturers Association
27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and twowheelers.
12MARCH198
Shriram Investments Ltd. Incorporated
13JUNE1979
Shriram Transport Finance Company Ltd. Incorporated
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achieved
the Group closer to the grassroots and has made it the preferred choice for all
financing requirements amongst the customers.
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COMMERCIAL VEHICLE
It is the funding of products include, trucks, buses, tippers, light
commercial vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing loans, Extend product,
working capital loans & other banking products.
How much?
Loan amount can vary from a few thousands to crore depending upon the
specific requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be
extended on special requirement & on the past experience.
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Repayment:
In general repayment period is of 3 -4 years, however depending on the nature
of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement
of the loan.
Interest:
Interest is charged on a flat rate based on the scheme applicable for the
particular product.
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Having minimum 2 acres of land with its value at least twice the loan
amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly installment
Mortgage of land of 2 to 3 times of the loan amount
Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.
Loan Amount:
The loan amount varies from customer to customer depending on the
valuation of the land being mortgaged, income of the customer and tenure
desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the
trailer and 50% of the cost of the implements is funded.
Documentation:
Agricultural use
Application form with photograph of the customer and all co applicants
and/or guarantor.
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Commercial Use
Application form with photograph of the customer and all co applicants
and/or guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :
- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.
The rate of interest varies from customer to customer and depends on various
factors like land holding, loan amount, viability of the proposition and the
underlying collaterals provided.
Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis
as the case may be. Every installment that is paid has a component of principal
as well as interest. Interest is charged on the principal outstanding after every
installment payment.
TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy
installments over a period of 6 to 36 months.
Eligibility Criteria:
1. Salaried Individuals
2. Self Employed Individuals
3. Pensioners, Housewives & Students
4. Partnership Entities
5. Private Limited Companies
6. Public Limited Companies
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Micro credit financing through self- help groups for the marginalized
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FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in
six districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in
June 2005.
PRODUCT PROFILE
1.TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
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Our monthly business amounts to over Rs.25 crore in individual loans, ranging
from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12
months
to
36
months.
Since its inception, we have financed over 2,15,000 white goods and twowheelers, with over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank
and Development Credit
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FMO the Dutch Government owned financial services company has recently
picked up equity stake in SIL and STFC. The company has extended a long
term debt of 6 million Euros each to the two companies.
Reliance Capital has also taken an equity stake in the two companies at a
premium.
AREA OF OPERATION
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ALL INDIA
Branch offices
260
Employees
4000
Depositors
12.20 lakhs
Agency Force
Funds managed
Net worth
Stock Listing
2.CONSUMER FINANCE:We entered the consumer Durable Finance Business business in early
2002. through Shriram City Union Finance Ltd. The consumer arm of the
group. Within a short span o 2 years, we have managed a profile of over rest
684 crores in this business.
Since its inception we have financed over 215000 white goods and
two wheelers with over 90% of the business arising out of the non metro
markets.
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Chits one of the earliest investment instrument known to man, were founded
by the enlightened communities of India. These have, ever since, worked to
the advantages of communities that are batting scarce capital resource.
Shriram chits started its operations in the year 1974 with a single branch that
has quickly grown into trusted household name for making chits a viable form
of saving and borrowing to all sections of the social.
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka
and Maharastra, where has a reputation for timely disbursement of funds and
excellent customer services which differen tiates it from other companies.
Using
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LIMITED
INSURANCE
5.LIFE INSURANCE:The shriram group plans to enter the life insurance segment 05. Am
application has already been filed with the IRDA for the same. We are also
exploring the possibilities
6.STOCK BROKING:Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a
member of the National Stock Exchange , India and the Multi Commodity
Exchange. This unit has expended the network by 150% over the last year and
today it has more than 230 terminals spread across the length and breadth of
the country.
It has a retail customer base of around 50000.
The company launched its new products like Derivatives and commodity
Trading in early 2004.
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ORGANISATION CHART
BOARD OF DIRECORS
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R Sridhar
Managing Director
S. Venkatakrishnan
Executive Director
Umesh G Revankar
Executive Director
K.R.C Sekhar
Director
S. Ranganathan
Dr. T S Sethurathnam
Secretary
&
Compliance
K. Prakash
Officer
SAMPLING:
Sample plan to know the perception of customers in this project is through
personal interview.
SAMPLE UNIT:
I have taken the customers who are owning a truck or (HCV).
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SAMPLING METHOD;
I have used Non- probability sampling i.e. Stratified Random Sampling.
Sample size for this project is 50 customers who are truck owners.
RESEARCH DESIGN:
In this research design of this project the study was conducted by the survey
method.
A. PRIMARY DATA:
The data collected from the company persons.
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Questionnaires
B. SECONDRY DATA:
Interviewing with the owners of trucks
Internet
Magazines, Catloges, etc.
MEASURING TOOLS:
For preparing this project I have considered questionnaire as measuring tool
for collecting the data.
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CHAPTER
CHAPTER - III
III
RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-
Yes
No
Total
Percentage
100%
Nil
100%
The information presented in table3.1 reveals that: Almost all respondents are owning Heavy Commercial Vehicle.
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
4
61
19
16
100%
Percentage
4%
61%
19%
16%
100%
The information presented in table3.2 reveals that: 61% respondents have taken loan from STFC .
19% respondents have taken loan from tata finance and 4%
from co-op banks.
While remaining 16% have taken from other finance
companys.
Number of customers
100
Nil
100
Yes
No
Total
Percentage
100%
Nil
100%
The information presented in table- 3.3 reveals that: Almost all respondents are aware of STFC .
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Number of customers
38
24
32
6
100
Percentage
38%
24%
32%
6%
100%
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Number of customers
84
16
100
Yes
No
Total
Percentage
84%
16%
100%
The information presented in table3.5 reveals that: 84% respondents are in favour of quick finance availability
from STFC .
While remaining 16% of them are not in favour of quick
finance.
The same information is presented in the form of diagrammatically as
follows:-
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Percentage
28%
42%
14%
14%
2%
100%
The information presented in table3.6 reveals that: 28% of the respondents are Highly Satisfied with the
documentation process at STFC , 42% of the respondents are
Satisfied and from the analysis 14% of them are Neither
satisfied/dis-satisfied .
Nearly 14% of the respondents are dis-Satisfied and 2% of
them are Highly dis-Satisfied .
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Yes
No
Total
Percentage
28%
72%
100%
The information presented in table3.7 reveals that: 28% of the respondents require changes in documentation
process at STFC .
While 72% of the respondents are Satisfied with the
documentation process at STFC .
The same information is presented in the form of diagrammatically as
follows:-
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Number of customers
16
44
34
6
100
Percentage
16%
44%
34%
6%
100%
The information presented in table3.8 reveals that: 16% of the respondents are in favour that interest rate at STFC
is very high and 44% of them are in favour of High rates.
While 34% of them are in favour of moderate interest rates and
6% for low interest rates.
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STFC?
Table:3. 9
Number of customers
88
12
100
Yes
No
Total
Percentage
88%
12%
100%
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Percentage
10%
32%
20%
29%
9%
100%
The information presented in table3.10 reveals that: 10% of the respondents are completely Satisfied with
the service offered y STFC, 32% of the respondents are
satisfied and from the analysis 20% o the respondents
are Neither satisfied/dis-satisfied .
Nearly 29% of them are dis-Satisfied and remaining 9%
of them are completely dis-Satisfied .
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11) What are the features that attracted you to borrow loan
from STFC?
Table:3. 11
Sources
Low interest rates
Easy documentation
Quick finance
Low EMI
Total
Number of customers
6
10
84
Nil
100
Percentage
6%
10%
84%
Nil
100%
The information presented in table3.11 reveals that: 84% of the respondents are attracted by quick finance.
10% of the respondents for easy documentation.
While remaining 6% for low interest rates.
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companies?
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Table:3. 12
Sources
Tate
Ashok Leyland
STFC
HDFC
ICICI
SBI
Total
Number of customers
12
18
26
18
14
12
100
Percentage
12%
18%
26%
18%
14%
12%
100%
The information presented in table3.12 reveals that: 12% of the respondents rated Tata in the 1 st place with other
companys and 18% of them for Ashok Leyland and HDFC in
2nd place.
26% of them rated STFC in 3rd place.
Nearly 14% of them for ICICI in 4th place.
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Number of customers
22
48
24
4
2
100
Percentage
22%
48%
24%
4%
2%
100%
The information presented in table3.13 reveals that: 22% of the respondents are in favour of very good behaviour
from the executives of STFC , 48% of them are in favour of
good behaviour.
24% of them are in favour of Neither good/bad.
While 4% of them are bad and 2% very bad.
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Yes
No
Total
Percentage
82%
18%
100%
The information presented in table3.14 reveals that: 82% of the respondents are in favour that their enquiries are
cleared quickly at STFC .
While remaining 18% of them are telling their queries are not
cleared quickly.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Percentage
64%
36%
100%
The information presented in table3.15 reveals that: 64% of the respondents are Satisfied with repayment system at
STFC.
While remaining 36% of them requires changes in repayment
system.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Percentage
68%
32%
100%
The information presented in table3.16 reveals that: 68% of the respondents are in favour of recommending STFC to
others for taking loan.
While remaining 32% of them are not in favour of recommending
to others.
The same information is presented in the form of diagrammatically as
follows:-
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Yes
No
Total
Percentage
60%
40%
100%
The information presented in table3.17 reveals that: 60% of the respondents wants to take finance in near future from
STFC.
While remaining 40% of them are not in favour of taking finance
from STFC .
The same information is presented in the form of diagrammatically as
follows:-
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CONCLUSION
Less than anticipated growth in the face of intensifying competition and rising
costs, can hardly be expected to get the company foaming.
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SUGGESTIONS
The firm should tap the un-tapped locations & market. This will help
them in increasing the business. Rural places are advised
The company should bring down their interest rates compared to other
competitor rates.
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CHAPTER-4
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Questionnaire
Dear Sir/Madam,
1.Do you own a HCV?
Yes [ ]
No [ ]
STFC [ ]
No [ ]
( If no go to Question No:- 17 ).
Agents [ ]
No [ ]
Dis-satisfied [ ]
Satisfied [ ]
Neither
Strongly
High [ ]
Moderate [ ]
Low [ ]
If No specify _________.
Dis-satisfied [ ]
Satisfied [ ]
Neither
Strongly
11. What are the features that attracted you to borrow loan from
STFC?
Low interest rates [ ]
Easy documentation [ ]
Quick finance [ ]
Low EMI [ ]
12. How do you rate STFC with respect to other finance companies
( 1 being highest and 6 being lowest)/
1[ ]
2[ ]
3[ ]
4[ ]
5[ ]
6[ ]
Good [ ]
Neither Good/Bad [ ]
Bad [ ]
Very Bad [ ]
No [ ]
No [ ]
No [ ]
No [ ]
Name:
_______________________________________________________
Address:
_______________________________________________________
Occupation: _____________________________
Annual Income ______________________
Gender: Male [ ]
** Thank You **
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Female [ ]