CHAPTER 1

BRIEF NARRATIVE ABOUT THE FIRM/COMPANY

1.1 ABOUT JCB INDIA LIMITED

J.C. Bamford Excavators Limited, universally known as JCB, is an English

multinational corporation, with headquarters in Rochester, Staffordshire, England, and

manufacturing equipment for construction, agriculture, waste handling and

demolition. The company started as a joint venture in 1979 and is now a fully owned

subsidiary of J.C Bamford Excavators, United Kingdom. With five state-of-the-art

factories in India, it today manufactures a wide range of world-class equipment, not

only for India, but also for Global markets.

It introduced Backhoe Loaders in India close to four decades ago and has since

expanded its product range to over 50 different models in eight product categories.

The Ballabgarh factory near New Delhi, which is the world’s largest factory for

Backhoe Loaders, is also the Headquarters for JCB India.JCB is the pioneer in this

field and has been recording excellent growth rates. From 9 dealers and 12 outlets in

1987 to 48 dealers and over 320 outlets in 2017 throughout the country along with a

world-class customer service network support, JCB has come a long way. JCB India

has got a wide range that includes backhoe loaders, wheel loaders, Tracked

Excavators, Telehandlers, Vibratory compactors and Skid Steers. JCB also has a

factory in Pune for the manufacture of fabrications and the company is the fastest

growing company in the Indian earthmoving and construction equipment industry.

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1.2 OBJECTIVES OF STUDY

1.2.1 ACADEMIC OBJECTIVES:

a) Work & gain knowledge of real business environment &corporate culture.

b) Analyze application of management concepts in real business situations-

degree to which applied/ not applied.

c) Understand a business entity from management perspective in

different functional areas.

d) Develop skills in technical report writing through data collection, data

analysis, data presentation and draw lessons cogently vis-à-vis a given firm or

company.

e) Enhance analytical abilities of students.

1.2.2 OPERATIONAL OBJECTIVES:

a) To provide highly technological innovative product by reducing cost and

thus make significant profits.

b) To become the top producing manufacturing company in the target market by

providing the highest quality service to the customers.

1.3 PROFILE OF THE COMPANY

JCB India Limited, India’s largest manufacturer of Earthmoving and Construction

equipment is a fully owned subsidiary of JC Bamford Excavators Limited (U.K). JCB

India Limited started operations in 1979 and today it is the fastest growing company

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in the Indian earthmoving and construction equipment industry. The company is a

pioneer in the industry and has been recording excellent growth rates year on year.

JCB India has three operational world class manufacturing facilities; one in

Ballabgarh, Haryana near New Delhi, two in Pune and two upcoming units in Jaipur.

The Ballabgarh facility is the world’s largest backhoe loader plant which also

manufactures Liftall, the ‘pick-&-carry’ crane. This facility also manufactures the

BSIII compliant JCB “ecoMAX” engine, which is big on fuel savings and high on

performance with 16 valve effort.

Out of the two world class manufacturing facilities in Pune; the first plant

manufactures exports oriented fabrications and components and the second plant

manufactures state-of-the-art heavy equipments like Tracked Excavators, Wheeled

Loaders & Compactors. These facilities were inaugurated in the year 2006 and 2007

respectively.

JCB India Limited, Ballabgarh (Haryana), India’s largest manufacturer of

construction equipment is a fully owned subsidiary of JC Bamford Excavators

Limited, UK. The company offers 21 different machines in seven product types such

as Backhoe Loaders, Loading Shovels, Tracked Excavators, Compactors,

Telehandlers, Skid Steer Loaders and Pick and Carry Crane. An excellent network of

54 dealers and over 450+ outlets throughout the country, along with a world-class

customer service network support. JCB also runs Operator Training School with over

15000 operators trained till date.

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A GLOBAL MANUFACTURER

The JCB name is synonymous worldwide with world-class quality: all our products

are designed and built for hard work and reliability. Each of our factories - whether in

the UK, Brazil, North America, India or Germany - uses only the most advanced

technology, components and manufacturing processes, whilst our meticulous design,

rigorous testing, and best-practice lean manufacturing techniques ensure that wherever

they are in the world, our customers will receive the same world-class JCB product

quality.

Also expanding in India, where manufacturing started at its Delhi plant in 1979, JCB

has constructed a second factory in Pune. 1,000 miles from JCB India's Delhi factory

it is positioned strategically close to the port of Mumbai.

(a) Lean manufacturing processes in all factories.

(b) World leader in innovation, research & development.

(c) Worldwide common standards & procedures.

(d) 18 factories - UK, Brazil, North America, India, China & Germany.

(e) World-class manufacturing facilities.

1.4 ORGANIZATION PROFILE

1.4.1 EVOLUTION OF JCB INDIA LIMITED

The story of JCB is one of innovation, ambition and sheer hard work. From small

beginnings building agricultural tipping trailers in 1945 to the global force in

manufacturing the company has become today, JCB has constantly pushed the

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Boundaries in its desire to be the best. In just 67 years it has gone from one man in

a garage in Uttoxeter to major global brand renowned for its pioneering spirit.

Innovation milestones over the decades:

(a) 1979- JCB commences operation in India with a 40% shareholding at the

Ballabgarh plant.

(b) 1987- India specific model launch-3D

(c) 1999- JCB in India increases its shareholding to 60%

(d) 2003- JCB in India increases shareholding to 100%

(e) 2005- 3DX launch

(f) 2006- JCB Pune Plant-I inaugurated and JCB in India achieves 10,000+

machine sales.

th
(g) 2007- 50,000 machine rolled out and JCB Pune plant inaugurated

(h) 2008- 75,000 machine sales

(i) 2009- inauguration of the world’s largest backhoe manufacturing plant

(j) 2010- 1, 00,000 machine produced and sold in India

(k) 2012- Launch of “All New 3DX”

th
(l) 2013- JCB announces setting up of its 4 plant at Jaipur, Rajasthan

1.4.2 HEADQUARTERS

The JCB world headquarters is located in Rocester, Staffordshire, England

whereas the headquarters of JCB India limited is located in Ballabgarh, Haryana.

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1.4.3 REGIONAL OFFICES

In order to achieve better results in the construction sector, JCB has established regional

offices in many cities. It has 8 regional offices in India each headed by a chief engineer.

The offices are located at:

(a) New Delhi

(b) Jaipur

(c) Pune

(d) Hyderabad

(e) Bangalore

(f) Chennai

(g) Kolkata

(h) Ahmedabad

1.4 ORGANIZATION’S MISSION AND VISION

Mission Statement: “Mission is to grow the company by providing innovative,

strong and high performance products and solutions to meet its global customers'

needs."

Vision statement: “Brand of first choice, providing complete solutions for customers

construction equipment needs, through innovative products and services.”

Core Purpose:

(a) Our business is to Design, Develop, Manufacture, market and Support the

Construction & Earthmoving Equipment. Our aim is to exceed customer

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(b) Expectation through innovation continues quality improvement and people

involvement ensuring health, safety of employee and environment protection.

(c) We shall grow profitably along with our stakeholders and achieve market

leadership in the core segment of our business.

(d) We will support our world-class products by providing superior customer care.

Our care extends to the environment and the community.

1.5 PRODUCT RANGE OF THE COMPANY

JCB India offers a diverse range of unmatched Construction, agriculture, waste

handling and demolition machinery.

The Product range includes:

(a) Backhoe Loaders

(i) Manufactured at the Ballabgarh plant,

(ii) JCB currently offers 5 variants (2DX, 3DX, 3DX Xtra, 3DX Super and 4DX)

(b) Excavators

(j) In the tracked excavator segment, JCB offers 6 types of machines (JS30, JS

81, JS 120, JS140, JS205LC, JS220LC and JS360), suitable for all kind of

excavation work

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 (ii) Starting from 8T operating weight (JS81) to 36T operating weight (JS 360),

the machine serves the plant hirers, earthmoving and quarrying customer base

(c) Compactors

(i) JCB offers the finest road compaction equipment through its Vibromax series

(VM 115, VMT 860 and VMT330)

(ii)The VM115 caters to the soil compaction needs of the sector while the

VMT 860 is a master at asphalt compaction

(d) Wheel Loaders

(i) JCB offers 3 Wheel loader models (two variants of 430 ZX, and 432 ZX)

(ii) The two models of 430ZX are 3.3 tonne payload and the 432ZX is for

3.6 tonne payload

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(e) Skid Steers

(i) JCB India offers two variants of Skid Steers (135 – 155)

(f) Telehandlers

(i) JCB is the world’s largest manufacturer of Telehandlers. In India, we have

three models (531-70, 535-140 and 540-170) which are widely used in

construction of multi-storyed buildings, material handling at ports and

industrial purposes etc.

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 (g) Pick-&-Carry Cranes

(i) Currently, there are four models - Liftall 1253,Liftall 1202 in the 12T

category and Liftall 1553, Liftall 1554 in the 15T category

All JCB machines are built with global quality standards and can withstand extreme

vagaries of climate & terrain while delivering their optimum performance.

JCB has strategically set-up large warehouses across India (Pune, Chennai, Faridabad

and Kolkata) to cater to our large dealer base. These warehouses provide JCB dealers

with easy access to all the parts of the machine and most importantly, radically help in

reducing the machine downtime.

1.6 SIZE (IN TERMS OF MANPOWER AND TURNOVER)

OF THE

ORGANIZATION

Manpower of Organization

JCB is one of the world's top three manufacturers of construction equipment. It

employs around 12000 people on 4 continents and sells its products in

150countries through 2000 dealer depot locations.

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 Turnover of the Organization

The turnover of JCB amounted to 5000crores approximately in 2016-17,

whereas its turnover in 2017-18 amounted to 6200 crores approximately. The

annual turnover of JCB increased by 1200 crores in previous one year.

1.7 ORGANISATION STRUCTURE OF JCB INDIA LIMITED

Figure 1.7: Organizational Structure

1.8 PEOPLE AND THEIR LEVEL WITH WHOM TRAINEE HAS

INTERACTED DURING THE SUMMER TRAINING

S.No Name Designation

1. Mr. Ravinder Kumar Associate Vice President

2. Mrs. Shweta Mendiratta General Manager

3. Mr. Gaurav Maheshwari Senior Manager

4. Mrs. Chanchal Dixit Assistant Manager

5. Mr. Vikrant Jain AGM Finance

Table 1.8: Present Leadership

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1.9 NAME AND ADDRESS OF THE COMPANY

BRANCH – Ballabgarh

NAME- JCB INDIA LIMITED

LOCATION- 23/7, Mathura Road, Ballabgarh, Faridabad, Haryana, 121004 India

Telephone No. 0129 429 9000, +91-8071744784

1.10 ORGANISATIONAL CULTURE

1.10.1 Task Orientation

The members of this organization among different departments have proper

coordination which made the team work effective. The job assigned to the members

was completed before the deadline or as on the deadline which helped in the timely

performing series of task. The organization and department rules and regulations are

defined in such a way that the work is done following the strict use of schedule step

by step plan

1.10.2 People Orientation

The different people working in the organization are considered to be trustworthy

employees as they perform by putting the best of their efforts. The top management is

very cooperative and supportive with all the other levels of management which are

middle and lower level. The nature of the employees towards each other was friendly

so that the various conflicts and issues can be easily communicated. This organization

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keeps a proper check on workers welfare by organizing various training workshops

and health awareness seminars.

1.10.3 Team Orientation

Project teams are created for a defined period of time to achieve common goals of the

organization which included the formation of various groups according to their needs

and requirements. There has been assigned a specific role to each member working in

the organization so that there may be no chances of any confusion or delay of work.

To improve breakdown in communication by adopting the appropriate channel of

communication following the hierarchy of the organization so that the information

reaches to all members of the organization.

1.10.4 Competition Orientation

This organization keeps on doing innovation in systems and methods of performing

tasks in order to work for the betterment of the society. The working of this

organization focuses on result orientation instead of profit orientation because their

main motive is optimum utilization of the resources of the economy. This

organization tries to deal with the competition by conducting researches and doing

required modifications in the working process and techniques on the continuous basis.

1.10.5 Openness Orientation

There is an open communication system so that each and every member can freely

interact with each other in case of any problem. This organization also has a privacy

concern due to which they need to maintain secrecy of some information which leads

to limited information sharing. This organization conducts periodical meetings to get

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an idea about the various grievances of the members and also communicating the

various decisions on a regular basis.

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 CHAPTER 2

ENVIRONMENTAL ANALYSIS

2.1 Internal Analysis of the organization

2.1.1 Porter’s five forces model is a useful model to analyze the organization.

Porter’s model was created by Michael Porter of Harvard Business School to

analyze organization’s attractiveness and profitability.

Competitive
Rivalry

Threat of Supplier
New Entry Power

Threat of Buyer
Substitution Power

Figure 2.1. - Porter’s Five Forces Model

(a) Competitive Rivalry

JCB looks at the number and strength of their competitors. They look how many

rivals they have and how does the quality of service can affect the organization. They

focuses on that no one else is doing what they do to have tremendous strength and

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healthy profits. The Company faces competition from many other players in the same

business. Some of its closest competitors include ACE, CAT, Caterpillar Inc.,

Ingersoll Rand, etc.

(b) Supplier power

JCB focuses on how it can be easy or difficult for their suppliers to increase their

prices or how many potential suppliers they have and how unique is the service they

provide and how expensive would it be to switch from one supplier to another. The

Company relies heavily on the European market for the supply of raw materials.

(c) Buyer power

In this part JCB focuses on how it is easy for their buyers to drive the prices down,

how many buyers are there and how big are their orders. JCB also focuses on the cost

to switch from services.

(d) Threat of Substitution

JCB focuses on the likelihood of customers finding a different way of doing what they

do.

(e) Threat of New entry

JCB also focuses on how their position can be affected to enter in the market and how

easily this could be done to get foothold the market, how much would it cost and how

tightly the sector will regulate.

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Strengths and Weaknesses of the Organization

Strengths Weaknesses

(a) Huge Product Line (a)High dependency on Europe

(b)Huge Dealer Network (b)Incapability of work team to adjust to

Working with modern type of framework

(c)Superior Customer Service (c)Shrinking Market Share

(d)Flexible and responsive organization (d)High Maintenance cost

(e)Market leader in Construction (e)Timescales, deadlines, pressures

(f)International Presence (f)Lack of diversification

Table 2.1: Strengths and Weaknesses of JCB

Strengths:

JCB has a wide range of products; this allows the company to fulfill most of the needs

and enables rapid retention of customers. The Company services many different

sectors including Irrigation, Mining, Port, Real Estate, Rental, Roads, Material

Handling Solution, Solid Waste, Power Generation, etc. The Company has about

2000 dealer depot locations and its service availability is very fast.JCB stands for

superior customer service and no other company in the history has ever offered timely

service. This allows the company to have greater brand recall and long-term customers

Weaknesses:

The weaknesses of this organization are that the maintenance cost of JCB products

has usually very high with respect to other products in the market, the competition in

this space has increased so much that the company has been facing heat. Its market

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share has reduced globally in the last 3 years and it is highly dependent on Europe

which leads to lack of diversification in its products. JCB is unable to protect their

patents and this is their biggest weakness. On the other hand, as the organization is

capable of manufacturing more than 300 types of machines, the cost structure of its

manufacturing unit is extremely high.

2.1.3 Best Practices that organization follows in different functional areas:

Following are the various Departments& their brief overview is as follows:

(a) HR & IR (Human Resource & Industrial Relations Department)

The JCB’s all India operations are well managed by this department. MD & CEO of

JCB’s Indian operations is Mr. Vipin Sondhi. He has installed a very effective system

of keeping all operations and activities properly organized.

This department is involved in managing the company’s Human Resource, their

needs, organizing the special trainings, seminars & conferences with the industry

associations like CII, FICCI etc.

(b) CPD (Central Purchase Department)

This department has the responsibility of the purchase and the procurement of the

material needed for the manufacturing operations of the plant.

(c) Product Engineering

This department is the Research & Development cell of the organization. It provides

specifications, support & reference over the details of the components / parts which are

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Continuously improved for the efficiency & effectiveness.

(d) Marketing Department

This department promotes the JCB brand and performs its key role in the improvement

of the end product by providing consumer feedback, competitor’s strategies, etc.

(e) Finance Department

Finance Department provides various financial services like quarterly audit of the various

departments, managing the company’s account, clearing of suppliers’ invoices, bills

settlements etc.

(f) CMD (Central Material Department)

This department manages the material requirement that has been regularized to be used

on the line assembly. This department maintains the inventory, manages stores and

procurement of the material from the regularized suppliers.

(g) Quality Department

Quality of the product is the prime area of concern in today’s consumer mind which is

well perceived and maintained by this department. Various sophisticated equipment’s,

concepts and high standards are used at JCB Ballabgarh plant for all components of its

product.

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(h) Manufacturing Engineering Department

This department manages the manufacturing operations of the plant which are categorized

into following independent units as:

(i) ABU (Assembly Business Unit)

(ii) FBU (Fabrication Business Unit)

(iii) TBU (Transmission Business Unit)

(iv)Paint Shop

2.2 External analysis of the organization

2.2.1Political Factors

(a) Political stability is to be maintained

(b) Changes in different laws may affect the working

(c) Political regulations must be followed

(d) Trade policies

(e) Changes in different laws

Political factors are the main factors that affect the operations of JCB. JCB is

operating in countries of North America, Europe, Africa, Latin America and Oceania.

Every country has their own governments along with different laws and legislations.

Besides, export and import policies are also different in those countries. For example,

the political example political example in Europe and USA are stable; however, in

UK where the recent hike in tax and new legislation from the conservatives can affect

the buying power of the customers

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2.2.2 Economic Factors

(a) Both micro and macro environment is to be benefitted

(b) Timely payment of salary and wages

(c) Availability of credit facilities

(d) Interest Rate

(e) Exchange Rate

Economic factors including recession, inflation, growth in GDP and growth in

population can affect business organizations and their operations. JCB experienced a

major setback due to the recessions in UK. However, the country is recovering slowly

as the inflation rate has increased to 3.4%. On the other hand, different counties have

different prices of raw materials, diesel, petrol, import and export cost which is

another major problem for JCB. In some countries, cost of raw materials is higher

than other countries. Therefore, construction and operational costs in those counties

are also higher that other countries that affects their revenue. As a result, the

organization is forced to increase their prices and loosing competitive advantage over

its rivals.

2.2.3 Social Factors

(a) Right behavior towards human resource

(b) Biasness and immorality must be ignored

(c) Systematic development of every section of the society

(d) Belief of the target audience

(e) Education and qualification

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JCB is operating in almost every continent. Each country has different societies along

with different cultures, religion, value and attitude. Therefore, the organization is

having a hard time to maintain balance in order to avoid any kind of discrimination.

2.2.4 Technological Factors

(a) Out-dated technology is replaced by new updated technology

(b) Research and development must be appropriate

(c) Technology advancements and modern ways of communication

(d) New inventions and discoveries

JCB is a construction-equipment manufacturing organization; therefore, they must

upgrade their technology regularly. It must be enhanced in a way that the organization

can compete in better way and can maintain its position in the market. Currently, JCB

has the world’s best technologies for manufacturing construction equipment. It has

also invented new products such as 3CX Compact backhoe loader with unique

features (Edwards and Love 2016). It is 6’3” wide and has a height of 9’ that offers

maximum maneuverability. With 25mph hydrostatic transmission, it is able to provide

19% ore control.

2.2.5 Environmental Factors

(a) Water being a scarce resource should be optimally utilized

(b) Environment friendly techniques are to be considered

(c) Good quality services are to be generated

(d) Growing demand

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JCB is moving towards sustainable development while focusing to implement new

technologies and innovations in order to improve efficiency and productivity. The

organization is trying to enable economic growth through infrastructure and energy

development.

2.2.6 Legal Factors

(a) Implementation of necessary laws

(b) Abide the rules and regulations of the country

(c) Focuses on issues like dam safety and flood management

(d) Regulation on waste control and disposal

Different countries have various laws and legislation in their countries. Each

organization operating in those countries are bound to obey those rules and

regulations including employment rules, labor laws and other laws.

Opportunities and Threats of the Organization

Opportunities Threats

(a) Emerging Markets (a) Government restrictions

(b) Product Leverage (b)Long term planning is still problematic

(c)Technology innovation and (c) Dependency on other sectors

development

(d) Expansion of Factories (d) Heavy headwinds

Table 2.2: Opportunities and Threats of JCB

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Opportunities:

The Company has more than 300 products and has consistently introduced new

products in the market. This gives the opportunity to introduce new products at a

competitive price to companies in Asia. Rapid expansion into many parts of Asia is a

strong opportunity. With rising opportunity in government projects in construction

and roads, it has the opportunity to make deeper pockets of returns. New technologies

are being introduced almost daily, which is great opportunity for JCB to expand their

business. Besides, most of the countries where JCB operates, are removing

international trade barriers. JCB is also known for their best customer care services.

Threats:

The threats faced by this organization in the external environment are that the

Company faces competition from many other players in the same business. Some of

its closest competitors include ACE, CAT, Caterpillar Inc., Ingersoll Rand, etc. Its

construction types of equipment are heavily dependent on the success and growth of

other industries. Example, its Europe business has slowed down because of the fall in

real estate demand. This might lead to revenue loss in one of its biggest markets.

Although the JCB is fully owned subsidiary company having good financial backup

but still collaboration of big MNC creates hurdles in catering market share in various

earthmovers products by getting economies of scale.

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 CHAPTER-3

DATA COLLECTION AND PRESENTATION

A. DATA COLLECTION

3.1. Sources of data collection

Data for the project is from both primary and secondary sources of data collection are

as follows:-

PRIMARY DATA: Primary data are those which are collected first and thus happen

to be in original character. The primary data includes the data by observing and by

interviews with the company personnel at different level of management.

(a) From the managers

(b) From the office staff

(c) From the employees of the organization

SECONDARY DATA: Secondary data are those data which have already been

collected from the company such as

(a) Business journal

(b) Quality manuals

(c) Annual report

(d) Magazines broachers

(e) Company website

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3.1.2. Collection of data in Key Functional areas

A. HUMAN RESOURCE MANAGEMENT

JCB India Limited has a well-structured Human resource department. The personnel

department of the company runs to look after the welfare and to control the

employees.

JCB is having the best governed department which is the heart and soul behind the

success of the gigantic establishment. Managing director is the head of the department

followed by the factory executive who deals with all the matters in the personnel

department he is assisted by the personnel officer and welfare officer.

Job environment

Reporting to factory executive/head of the personnel functions: however, keep rapport

and liaison with section in charges in all functional areas.

(a) Current informal ways of working: practice of working on oral instruction and

getting such actions ratified in due course.

(b) Want of documentation by way of proper system and procedure.

(c) Habitual cases of absenteeism and in discipline.

(d) The slow pace of work among the staff as a part of past work practice.

I. Classification of workmen:

(a) Permanent workers

(b) Permanent staff

(c) Temporary workers

(d) Temporary staff

(e) Casual workers

(f) Probationary workers

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 (g) Trainees workers

(h) Contract workers

Since the company is running continuously for 24 hours the company follows

shift duty system. Shift working hours of the company are:

(i) 6:30 am – 2:30 pm

(ii) 2:30 pm – 10:30 am

(iii) 10:30 pm -6:30 am

RECRUITMENT:

JCB follows internal recruitment technique as well as external recruitment system.

External recruitment is done by giving advertisement in newspaper and through

recruitment agencies.

SELECTION:

Selection of candidates is done by interview. The selected candidates are provided by

induction manual and standing orders. The head of the department provides on the job

training and job description.

The selected candidates are provided with training and development. Company has

training calendar. Training calendar is prepared on the basis of financial year.

WAGES AND SALARY ADMINISTRATION:

In JCB, the manager analyses and interprets the needs of the employees so that award can

be individually designing to satisfy their needs. Here the workers are paid wages and the

staff officers’ managers etc. are paid salary. The wage/salary system which JCB follows

is time rate system. Under this system workers are paid according to the

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work done during a certain period. He is paid at the settle rate as soon as the time

contracted for is spent. The basic purpose of salary administration is to establish and

to maintain an equitable wage and salary structure.

As benefits to the workers, the company provide co-operative stores with the credit

facility, canteen with subscribe food, staff mess, staff recreation club, ambulance,

festival advance etc.

The company also provide proper incentive scheme as compensation for the employs.

It includes:

(a) Basic pay + DA+HRA (10% of basic pay)

(b) PF for each employee is basic pay + 12% DA

(c) ESI collected from employees with the salary of rupees 7000 per month

is 1. 75% of the income and from employers, 4.75%

(d)Basic leave allotted form workers are about 12 days each year.

(e) DA will be same for all the employees from top level to lower level.

PERORMANCE APPRAISAL:

Performance appraisal of the executed staff is done by questionnaire method. The

staff members are evaluated by head of the department. Performance appraisal of

workers is done by supervisor. The members are provided adequate training after

performance appraisal

Promotion is based on their experience, qualification and service performance. After

retirement the employs can be employed. They are not provided with PF and any

other benefit. They are paid salary only.

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RETIREMENT AGE:

Any workmen who is declared mentally unfit or found to be on continued ill- Health

or reached the age of 58 (fifty-eight years) shall be retired from the service according

to the gratuity act.

GRIEVANCE HANDLING:

The company has a grievance handling committee.

On receiving a complaint committee will sent a memo to the concerned parties.

Parties should give reply within 24 hours. If the committee is not satisfied with the

reply. They can make enquiry about the complaint. If anyone found guilty. In the

enquiry. They may be punished with four days suspension, increment cutting,

dismissal court action etc.

The following acts or omission shall be treated as misconduct

(a) Incorrect handling of package containing materials.

(b) Incorrect handling of materials.

(c) Incorrect workers on machine.

(d) Incorrect packing with materials.

(e) Careless Work

(f) Laziness or negligence or neglect of work.

(g) Improper behaviors.

(h) Spitting in the factory

(i) Late attendance or absence at the working hours without permission

(j) Forcing others to strike the work

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B. Marketing

Marketing is the art of selling products. It is also defined as societal process by which

individual & groups obtain what they need and want through creating, offering and freely

exchanging products and services of value with others. Due to the high standard of

quality maintained by the quality control department of this company, the product of the

company has found ready acceptance in market both in India and abroad. The following

factors are helpful to influence the consumers to buy the products of JCB:

Brand image: As the brand name assures certain quality by identifying the

manufacturer behind the product. The brand image of JCB also helps in attracting a

lot of customers.

High quality: The products of JCB assure high quality. All the products are

qualified as per ISO standards of quality.

Positioning: JCB has a great success in attaining a major position in the mind

of consumers.

The JCB follows “high quality competitive price policy “. The consumers are ready to

buy their products at this price because of its high quality.

Segmentation of marketing:

JCB INDIA LIMITED is well –established organization manufacturing high quality

products. Company believes in quality and to ensure quality each batch of the product

will undergo quality tests. Company has an efficient marketing strategy. The prices of

JCB’S products are comparatively high and targets at high income as well as low

level income groups by marketing more than 300 products.

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(a) Local

(b) Industrial

(c) Export

(d) Applications based segments

Overall marketing strategy:

Marketing strategy of the company revolves around unit’s product quality. The

company’s emphasis on product performance & reliability has enabled to command a

performance premium in the market it has entered. Significant brand equity in its

target market, coupled with superior product development capabilities has enabled the

JCB to sustain its performance premium equity into new market segment it enters.

Competitors: The Company faces competition from many other players in the same

business. Some of its closest Competitors include ACE, CAT, Caterpillar Inc,

Ingersoll Rand, etc.

Marketing mix:

The marketing mix means using different types of tools for promoting the product and

services. In this the better tool of communication is also used to attract more and more

clients. JCB also used marketing mix techniques for covering more market in India. The

objective is to satisfying the customer as to make them delighted with affordable prices

and convenient services. JCB uses four P’s, for the promotion of the marketing mix. It is

the best way to attract more clients in India.

PRODUCT

JCB is a world-recognized corporation that deals in manufacturing of equipment for

the following industries-

31
(a) Agriculture

(b) Construction

(c) Demolition

(d) Solid-Waste handling

(e) Irrigation

(f) Port

(g) Mining

(h) Real Estate

(i) Railways

(j) Roads

(k) Rental

(l) Material-Handling Solution

(m) Power Generation

It manufactures nearly three hundred varieties of machines and

its product portfolio includes several items and their variants.

PRICE

Operations in India account for 17.5% of the total revenues for UK based JCB

Company. It faces stiff competition from rival companies in terms of prices. JCB has

adopted a pricing strategy and kept its price range at same levels of its rival

companies. It does not want to lose its competitive advantage because its brand has

high recall and it offers quality products if compared to its competitors. JCB has

adopted several policies that help the company to invest in assembly and

32
manufacturing plants in other countries. It results in cutting down costs to a very high

margin and thus company can now be competitive and also earn high revenues.

PLACE

JCB is a multinational company with its headquarters base at Rocester in

Staffordshire. It started its work from Uttoxeter in Staffordshire and later shifted to

Rochester. The company conducts its operations via twenty-two factories that have

been spread across continents including South America, North America, Europe and

Asia and one hundred and fifty countries like India, China, Germany, Brazil, United

Kingdom and the United States.

Its factories in India are in Faridabad, Pune and Jaipur, US factories are in Georgia

and Pooler, Brazilian in Sorocaba, Chinese in Pudong and UK factories in Cheadle,

Rugeley, Uttoxeter, Foston and Wrexham. It has a strong distribution channel that

includes services of nearly fifteen hundred franchised dealers that serve through

innovative technology to meet specific and local demands of industry

PROMOTION

JCB recognizes the worth of advertising and hence has organized several promotional

activities and events for marketing its products and thus creating brand awareness.

The company relies heavily on print media and has advertised via trade publications.

The company has been the recipient of several photography awards for its exclusive

advertisements.

33
 JCB has a display team that tours several agricultural and other shows. They display

videos to make the people understand various manoeuvres for supporting vehicles.

The company has a subsidiary that offers insurance to customers against purchases.

These are an all-risks policy with options like employer’s liability, public liability and

road-risk coverage. JCB Academy is a secondary School sponsored by JCB.

C. OPERATIONS

Operational process

The inputs used in the JCB for the operation process like land and building,

equipment, technology, employees and materials etc. in different branches of the JCB

company.

Transformation process of the JCB Company where the raw materials and inputs are

transformed into final goods and services by undergoing through various processes.

Output means the final product and services which are generated after the

transformation process. Outputs of the JCB Company are different types of services

and final products like generators, backhoe loaders, Compactors, Telescopic handlers,

Wheeled Loaders, etc.

Production involves conversion of inputs to finished goods. It can be briefly explained

as follows:

Input Conversion Process Output

34
D.International business:

PURPOSE: To popularize the products to the international level, Exports are carried

out as per the export policy of government of India and responsibilities lies in the

hands of the import/export Executive.

The company has an IE code to deal with international market. This is acquired by

registering into the joint Director of foreign trade.

PROCEDURE:

Quotations are sent along with the product details. In some cases, samples are also

sent. Once the price is approved of, the customer opens the letter of credit that

contains details regarding value, quantity; destination of supply, specification etc.

once the order is confirmed and placed, and the product is not send to the production

department and production requirements. Once the cargo is ready it is taken to the

nearest port for shipment.

In JCB there is an arrangement called house stuffing where in the factory brings the

container from the port to the companies work. The clearing agents carry out all the

customer formalities in order to get the clearance. This includes getting back AR 4

from the customs after the shipment for submission to the central exercise. Once the

shipment is affected and the bill if loading is obtained the document for the buyers are

negotiated through the GILS bank.

Once the cargo reaches the destination the customer retrieves the original document

from there bank. The payment is then made accordingly.

RECORDS MAINTAINED

Filing system, separate file is opened against each enquiry. All correspondence and

related shipping documents are filed separately for ready as well as future reference.

35
Register that contains detail regarding all exports affected is also maintained.

Organizational Chart of Export-Import Department

GENERAL MANAGER

IMPORT EXECUTIVE EXPORT EXECUTIVE

Figure 3.1: Organizational Chart of Export-Import Department

E. R&D Department:

Research and Development of JCB is one of the best researches centers of

Manufacturing Industries in India. The R&D SECTION of this co. was approved by

the department of scientific & industrial research ministry of science & technology

govt. of India.

The company has well equipped R&D laboratory which is one of the best researches

in manufacturing industries in the country approved by department of scientific and

industrial research. Ministry of science and technological government approval.

Where continuous search is going on for improvement of quality and development of

new product through technological up gradation. The benefits of successful R&D

project are rapidly transferred to commercial scale of operations.

36
F. Customer relationship (CRM) Policies:

In the phase of globalization, the changing customer preferences and choices has lead

to a challenge of retaining potential customers for a long period of time, thus

organizations now a day go for a systematic CRM program. The strategies adopted by

major manufacturing firms like JCB were studied to understand current CRM System

and Services provided from the company and its effect on Customer Needs,

Satisfaction Level, their response and emotions. Also, the objective of this study to

analyze existing customer satisfaction as those customers are the key sources to new

customers with respect to the performance, sales efforts and sales service. As JCB is

the most preferred firm in the manufacturing sector in India in aspect of turnover, it is

clear that it has very strong Customer Relationship Management System and perfect

people to handle it properly for the benefit of customers and firm as well.JCB

provides personal relationship manager to its customer. Work of relationship manager

in JCB India Ltd. Is as follows-

(a) Developing marketing techniques to drive new clientage

(b) Maximizing customer lifetime value strategies

(c) Suggesting new methods to meet customers’ needs

(d) Analyzing marketing metrics (conversion rates, web analytics etc.)

(e) Assisting with promotional events to attract leads

(f) Numerous miscellaneous functions to maintain and enhance the company’s

reputation in the eyes of clientage.

37
G.FINANCE

The finance department is the heart of any company. The general manager of finance

heads this department. The responsibility for maintaining the accounts & exercising

financial control is vested with the finance manager. The finance department has direct

interaction with all other departments since all the payments and collections are made

through here.

JCB follows double accounting system and also maintains four types of journals:

(a) Cash payment book (CPB)

(b) Bank payment book (BPB)

(c) Cash receipt book (CRB)

(d) Bank receipt book (BRB)

For these four types of journals a sub ledger is prepared & is classified into

three parts:

(i) Account receivable book (ARB)

(ii) Account payable book (APB)

(iii) Personal ledger (PL)

At the end of every month the sum of the ledgers is transferred to the main ledger.

Then there should have the equality in the amount of the sub ledger and in ledger. The

next accounting procedure is preparing the trial balance. At the end of every financial

year profit and loss account and balance sheet is prepare, from which financial

position of JCB is noticed.

SOURCES OF FUNDS:

The main source of fund is:

(a)Internal source:

38
The main internal source of fund of JCB is the income generated from sale. Reserves

are the sources of fund other than income from sale. Current losses are adjusted by

these reserves.

(b) External source:

The main external source of fund is term loan from bank and financial institutions like

Axis Bank, SBI, Canada Bank, Punjab National Bank, IFCI, IDBI, etc.

SHARE CAPITAL:

JCB India Limited is a Public incorporated on 01 February 1979. It is classified as

Non-government Company and is registered at Registrar of Companies, Delhi. Its

authorized share capital is Rs. 6,099,999,700 and its paid up capital is Rs.

84,900,000.It is involved in OTHER BUSINESS ACTIVITIES.

B & C) DATA PRESENTATION AND ANALYSIS

CAPITAL STRUCTURE

The capital structure is all about to financing business activities through a

combination of equities and liabilities. Capital Structure of a company refers to the

make-up of its capitalization and it includes all long-term capital resources viz loans,

reserves, shares and bonds.

Sources of funds of JCB are as below:

Particulars 2015 2016

Shareholder’s Fund 71,32,00,000 71,32,00,000

Borrowings 68,73,28,400 68,73,28,400

Table 3.1: Sources of Funds

39
 800000000
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
shareholder's fund borrowings

2015 2016

Figure 3.2: Sources of Funds

Capital Turnover Ratio

A ratio of how effectively a publically traded company manages the capital invested in it

to produce revenues. It is calculated by taking the total of the company's annual sales and

dividing it by the average stockholder equity, which is the average amount of money

invested in the company. A high ratio indicates that the company is using its capital well,

while a low ratio indicates the opposite. It is also called equity turnover.

Capital Turnover Ratio = Sales / Capital Employed

Particulars 2015 2016

Sales 638237640 496900300

Capital Employed 323149030 246121620

Capital Turnover Ratio 1.975 2.018

Table 3.2: Capital Turnover Ratio

40
 Capital Turnover Ratio
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
sales capital employed

2015 2016

Figure 3.3: Capital Turnover Ratio

Interpretation: As the capital Turnover ratio is increasing in year by year which

shows in the above table reflects greater efficiency which means that company’s

operation is running in a very smoothly manner and the company should limits the

fund for additional funding in the future.

Debt Equity Ratio

Debt Equity Ratio is a long term solvency ratio that indicates the soundness of

long-term financial policies of a company. It shows the relation between the portion

of assets financed by creditors and the portion of assets financed by stockholders.

The ideal debt equity ratio is considered as 2:1.

Debt Equity Ratio = Total liabilities / Total equity

Particulars 2015 2016

Debt 177901230 144594720

41
 Equity 71320000 71320000

Debt Equity Ratio 2.494:1 2.027:1

Table 3.3: Debt Equity Ratio

Debt Equity Ratio

200000000

150000000

100000000

50000000

0
debt equity

2015 2016

Figure 3.4: Debt Equity Ratio

Interpretation: As shown in the above figure Debt Equity Ratio of the company has

decreased by 2.494 in year 2015 to 2.027 in year 2016 which shows that the

organization is in lower debt to equity ratio. This is considered to be less risky for the

creditors and the investors.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-

term and long-term obligations. To gauge this ability, the current ratio considers the

current total assets of a company (both liquid and illiquid) relative to that company's

current total liabilities.

The ideal ratio for current ratio 2:1

Current Ratio = Current assets / Current liabilities

42
 Particulars 2015 2016

Current Assets 646882800 172807720

Current Liabilities 10916839 75861880

Current Ratio 0.592:1 2.277:1

Table 3.4: Current Ratio

700000000
600000000
500000000
400000000
2015
300000000
2016
200000000
100000000
0
Current Assets Current
Liabilities

Figure 3.5: Current Ratio

Interpretation: As shown in the above table the current ratio has increased in the

current year as compared to the previous year. A higher current ratio is always more

favorable than a lower current ratio because it shows the company can more easily

make current debt payments, the current ratio of the company in the year 2015 was

0.592:1 which increased to 2.277:1 in the year 2016 which means that the company is

in the favorable situation.

Working Capital ratio

The working capital ratio is the same as the current ratio. It is the relative proportion

of an entity's current assets to its current liabilities, and is intended to show the ability

of a business to pay for its current liabilities with its current assets.

43
 Working Capital Ratio = Net sales / Working capital

Particulars 2015 2016

Net Sales 638237640 496900300

Working Capital 96945840 44480110

Working Capital Ratio 6.583:1 11.171:1

Table 3.5: Working Capital Ratio

700000000

600000000

500000000
400000000
2015
300000000
2016
200000000

100000000

0
Net Sales Working Capital

Figure 3.6: Working Capital Ratio

Interpretation: As shown in the above table the working capital ratio in the year

2015 is 6.583:1 which has been increased to 11.171:1 in the year 2016 which means

that the current liabilities are less as compared to the current assets

Profit Estimation

Profit estimation means to calculate future profit on expected sale. This is also called

profit forecasting. This profit estimation is done on the trends of past accounting data.

In profit estimation, we take risk as one of important factor. So, the company also

adjusts all risk of unexpected loss for calculating correct profit estimation. For

estimated profit, company have to estimate cost of goods sold, sales and gross profit

44
margin and fixed cost and variable cost. All these will become the factors of profit

estimation.

Net Profit Ratio

It expresses the relationship between net profit after taxes and sales. This ratio is

measures of the overall profitability net profit is arrived at after taking into account

both the operating and non-operating items of incomes and expenses. The ratio

indicates what portion of the net sales is left for the owners after all expenses have

been met.

Net profit ratio = (Net profit after tax / Net sales) × 100

Particulars 2015 2016

Net Profit after Tax 20389240 77027410

Net Sales 496900300 638237640

Net Profit Ratio 4.10% 12.06%

Table 3.6: Net Profit Ratio

700000000

600000000

500000000

400000000
2015
300000000
2016
200000000

100000000

0
Net Profit after Net Sales
Tax

Figure 3. Net Profit Ratio

45
Interpretation: The above table shows the net profit ratio which is 4.10% in 2015

and in the year 2016 the company has earned a profit of 77027410 with a net profit

ratio of 12.06%.

46
 CHAPTER – 4

SUMMARY AND CONCLUSIONS

4.1 FINDINGS

After going through the functional analysis, I have found that:

(a) Consumers are satisfied with product, price, service, quality and durability

offered by the company.

(b) Net profit of the company is increasing significantly from the year 2012.

(c) The company CRM policies are not up to the mark as compared to the

competitors.

(d) The organizational structure of company is complex and diverse.

(e) Market share of the company is satisfactory.

(f) Company is benefiting from Radialisation due to innovation in technology.

FINDINGS AND RESULTS

4.1.2 ENVIRONMENTAL ANALYSIS

(a) Internal Analysis

Company’s strength lies with its experienced staff, Team management,

Proper allocation of funds, Centralized structure and skilled work force etc.

(b) External Analysis

Opportunities can be achieved by the Growth of the demand and

technology development and innovation.

47
4.1.3 ORGANIZATIONAL CULTURE

Company is highly task oriented, people oriented, team oriented, system oriented and

openness oriented and competitive oriented.

4.1.4 Marketing

JCB deals with the other people through means of annual reports of the organization,

integrated hydrological data book, publication of journals and bulletins, microfilming

of documents, mass Awareness Activities and inviting of tenders.

4.1.5 Human Resource Management

This unit deals with development and management of human resources, financial

management, training, and administrative matters of JCB. It helps the managers to

recruit, select, train and develop members for an organization.

4.1.6 Finance

The finance accounts of JCB provides information about gross budgetary support of

the state governments for projects under construction , extension, renovation and

modernization, command area development program, data about capital expenditure,

working expenses and gross receipts of the organization.

4.1.7 International Business

This deals with the international relations of JCB with the other countries which

included Bhutan, China, Bangladesh, Nepal, Pakistan and Japan for the purpose of

carrying different activities outside the national boundaries of India.

48
4.2 LESSONS LEARNT

4.2.1 Working environment

Working environment was very nice and friendly. It was also very relaxed in working.

4.2.2 Behavioral Practices

(a) Be Punctual

Keep track of time and progress, it is an essential trait to have because it

helps to improve both Individual’s social life and their career path.

(b) Finish one project before starting another

Trainee learned to always work on project at a time and it should apply to all

areas of work.

(c) Work hard

No matter on what aspect of life a trainee is working always works

hard, it will help to build good work ethic and improve activity.

(d) Treat everyone with respect

No matter with whom a trainee is talking, trainee should be respectful

always. One never can be sure who they will need for help someday.

4.2.3 Practical Knowledge

(a) Trainee learned to develop skills

(b) Learned to work in new environment

(c) Trainee learned to engage with profession and worked

with professional mentors.

49
4.2.4 Uniqueness of the organization

Uniqueness of the organization which the Trainee observed is the way they do their

work. They use the software to the work and provide training on regular basis for

employees to learn something new and updated work style

4.3 Suggestions:

4.3.1 Given below are few suggestions:

a) JCB should arrange more workshops for women employees of the

organization. They should make sure that all the related employees are aware

about such workshops being conducted.

b) The employees should be encouraged to strictly follow the prescribed rules in

the same manner in all the departments of the organization.

c) The performance of the employees should be checked on regular intervals to

avoid situations of delay in work.

d) The employees should be trained in such a way that they must not resist a

change in the different concepts and techniques used by the organization.

4.3.2 Recommendation for sending the student in JCB

a) The students should be definitely sent to JCB so that they will understand how

people are recruited at a particular post in the Manufacturing organizations.

b) Student will get to know about the working of such organizations for

the betterment of the economy and optimum utilization of resources.

4.4 CONCLUSION

The company deploys an MTS type of manufacturing strategy which is an approach

through which the company pushes its products to the market. However, it is not

50
possible for a large scale manufacturing company like JCB India to shift from the

traditionally used MTS strategy to an MTO strategy. This challenge can be overcome

by gradually adopting a Hybrid Production Strategy with the help of which the

company can produce its “A-class” items using an MTS strategy and its “B-class” and

“C-class” items using an MTO strategy.

The company currently makes use of the Fixed Time Period inventory model and

places order to its various suppliers on a fixed interval basis. But if we look at the cost

factor as well as the time factor, it is more viable to use a Fixed Quantity Model or the

EOQ Model because if we look at the inventory related costs, the cost of holding

inventory is much higher than the ordering cost. Also, there is no fixed time interval

in the Fixed Quantity model so applying this model helps us to place orders only as

per requirement.

All these recommendations can be re-worked and implemented by JCB India and see

what difference it can bring to the company’s overall management and optimization

of inventory by keeping the cost and time saving factors in mind.

51
 BIBLIOGRAPHY

Text books: -

1) Rustagi, R.P. (2008). Financial Management: Basic Financial Management.

Daryaganj , Delhi: Sultan Chand & Sons.

2) Chhabra, T.N. (2005). Human Resource Management: Concept and Issues. Model

Town, Delhi :GaganKapur For DhanpatiRai& Co. (P) Ltd..

52
 REFERENCES

(a) https://www.jcb.com

(b) www.google.com

(c) http://www.kotlermarketing.com/resources/philipkotler

(d) https://en.wikipedia.org/wiki/JCB_(company)

53
 Annexure-1

Balance sheet for the year 2015-16

Amount in (Rs.)

Particulars As at 31.03.2016 As at 31.03.2015

1. EQUITY AND LIABILITIES

(1) Shareholder’s Funds

a. Share capital 713200000 713200000

b. Reserve & surplus 1060687800 1830961900

(2) Non-Current Liabilities

a. Long-term borrowings 687328400 687328400

(3) Currents Liabilities

a. Short-term borrowings
b. Trade payables
c. Other current liabilities 401414300 125134200
d. Sort-term provisions (Income tax) 690269600 633484600
- -

TOTAL 3552900100 3990109100

II. ASSETS

(1) Non-Currents Assets

a.Fixed assets

i. Tangible assets 89583600 25392400

54
 i. Intangible assets 117868820 104189980
i. Capital work-in-progress 140347550 106651750
b. Non-current investment - -
c. Deferred tax assets (Net) 196780600 107072200
d. Long term-loans & advances 37489400 21150000

e. Other non-current assets - -

(2) Current Assets

a. Currents Investments
b. Trade Receivable - -
c. Cash and cash equivalents 187576700 289585500
d. Short term-loans & advances 235843200 1183973300
e. Other non-currents assets 223462900 254518400
- -

TOTAL 3552900100 3990109100

Table No.12: Balance Sheet

55
 Annexure-3
Company Information

S.no Particulars Details

1. Name of the Organization JCB India Limited

2. Industry Heavy Equipment

3. Logo

4. Address 23/7, MathuraRd, Ballabhgarh,

Faridabad, Haryana 121004

5. Headquarters Rocester, United Kingdom

6. Website www.jcb.com

7. Registered Office Rocester, Staffordshire, England. ST14

5JP

8. Type Private Company

9. Year of Incorporation 1945

56
57