DISSERTION

ON
DIRECT MARKETING OF ORIENT
ELECTRICAL
 SUBMITTED BY:-
SHIVANSH SRIVASTAVA
PGDM-19231

UNDER THE GUIDANCE OF

INTERNAL GUIDE:
RITIKA CHAUHAN
 ACKNOWLEDGEMENT
I HAVE BENEFITTED ALLOT FROM PROJECT
DURING THE THIRD TERM OF OUR COURCE
B.COM .THIS PROJECT HAS BEEN A
REWARDING KNOWLEDGE .I HAVE GOT INTO
THE VARIOUS ASPECT OF ORIENT ELECTRIC
BY ANALYSING VARIOUS INFORMATION
SOURCE ON THE WORK FIELD AND INTERNET.
I TAKE THIS OPPORTUNITY TO AKNOWLEDGE
THE INVALUABLE ASSISTANCE OF THOSE
PEOPLE WHO HELPED ME IN SUCCESFUL
COMPLITION OF THIS PROJECT AND ALSO
EXPRESS MY ESPICIAL THANKS TO MAAM
RITIKA CHAUHAN,WHO PROVIDED ME THE
OPPRTUNITY TO DO THIS PROJECT.
INTRODUCTION OF ORIENT
COMPANY
Orient electrical limited is a part of diversified indian conglomerate CK
BIRLA GROUP.A distinguished name in the indian fan industry for more
than 60 years . Orient electricalshas today established itself in the market
as one stop brand for lifestyle electrical solution which include
fans.Lighting,home appliance and switch gears.orient electric takes pride
in its R & D capabilites.Spirit of continous enovation and commitment to
manufacture cutting edge lifestyle electrical product that meet the needs
and acceptation of new age consumers.It has fully integrated
manufacturing facilites based in kolkata,faridabaad,noida,and guwahti .It
is largest manufacturer and exporter of fan from india with a dominating
presence in over 40 international market it is also the second largest
manufacturer of L.E.D bulb in india and first indian lighting brand to have
been awarded BEE STAR RATING FOR LED BULB .In the domestic
market,it has a well organised distribution network driven by over 4000
dealer 125000 retail outlets and a strong service network driven by 450
cities Orient Electric operates with a philosophy to carve out a niche in the
global fan industry and evolve into a premier lifestyle home solutions
provider. With operations spanning over 35 countries, Orient Electric has
earned the trust of millions of customers by providing cutting-edge
lifestyle electrical products. Orient Electric is the largest manufacturer and
exporter of fans in India with more than 60% share in exports.

HISTORY
1939

THE JOURNEY BEGINS

Orient Electric Limited,formerly a division of Orient Paper and Industries

Limited (OPIL), was incorporated as Orient Paper Mills Ltd. in 1939. The
CK Birla Group started Orient Paper with just one paper machine at
Brajrajnagar in Orissa, India.

1954

INDUCTED INTO CK BIRLA GROUP

Orient Fans, the erstwhile Calcutta Electrical Manufacturing Company,

became a part of the CK Birla Group in 1954 and was subsequently
rechristened Orient Electric in 2014.

1990

DEVELOPED & PATENTED PSPO TECHNOLOGY

Orient Electric developed and patented the revolutionary PSPO (Peak

Speed Performance Output) technology in early 90's which changed the
industry outlook altogether. In order to improve production, meet the ever-
changing needs of the customers, and establish itself as a global market
leader, Orient Electric also equipped its manufacturing plants at
Faridabad in Haryana and Kolkata in the state of West Bengal with state
of the art machinery and technology.

2008 ENTERS INTO LIGHTING BUSINESS Leveraging its strong brand

identity developed over the years, Orient Electric forayed into a new range
of electrical products. It started trading of CFLs (compact fluorescent) and
FTLs (fluorescent tube) in the year 2007. In 2008, the company set up an
advanced manufacturing unit at Faridabad in the state of Haryana
dedicated to manufacturing of CFLs and FTLs.It later ventured into LED
lighting solutions in 2014 and as of today, it is one of the leading lighting
companies in India with a diverse LED-centric portfolio. 2011 FORAYS
INTO HOME APPLIANCES BUSINESS Orient Electric ventured into the
home appliances market in 2011 with a wide range of products including
Air Coolers, Water Heaters, Juicer Mixer Grinders, Mixer Grinders,
Toasters, Electric Kettles, Coolers, Induction Cookers, Rice Cookers and
Electric Irons. Orient Electric's Home Appliances division today enjoys a
pan India presence with a strong distribution network. 2014 NEW BRAND
IDENTITY UNVEILED The company changed its brand name and
identity from 'Orient Electricals' to 'Orient Electric' and consolidated its
business verticals of Fans, Lighting and Home Appliances. The brand
revamp was done with an aim to establish the company's identity as a one-
stop home solutions provider with the next generation customers who make
informed buying decisions. As part of the brand repositioning plan, the
company also launched a new unified communications campaign 'Switch to
smart' and its new logo in the vibrant colour 'orange'. The year also
marked the launch of BLDC fans and Orient Electric's entry into LED
lighting solutions.

2015 VENTURES INTO SWITCHGEAR BUSINESS Continuing with its

efforts to position itself as one-stop solution provider of lifestyle electrical
solutions, Orient Electric forayed into the Switchgear market. Orient
ElectricÂ’ s smart range of energy-efficient LV Switchgear products
includes MCB (Miniature Circuit Breakers), RCCB (Residual Current
Circuit Breakers), Isolators and Distribution Boards. The company
manufactures the Switchgear range at its state of the art manufacturing
facility located at Noida in the state of Uttar Pradesh. 2017 ORIENT
ELECTRIC DEMERGES AS A SEPARATE ENTITY Orient Electric gets
demerged from Orient Paper & Industries Limited (OPIL) into a separate
listed Scheme of demerger was approved by the Kolkata Bench of the
National Company Law Tribunal on November 9, 2017.

 Orient group of companies has been on the fore front of

design and development
 Established in Lahore in 1957
 Today orient group of companies is the sole distributor of the
world’s renounwned brand like Mitsubishi air conditioner
  In 1985,orient started marketing various product
 Mitusbishi electric mr.slim a.c is the only 100%japanese
imported brand in Pakistan which is being offered by orient.

PRO DUCT

LIFESTYLE FANS :-
A new breed of lifestyle fans to add glam quotient to your home interiors.
Designed to bring alive exclusivity, these fans exude sheer elegance.

CEILING FANS :-
A wide range of ceiling fans to decorate your interiors. Decorative, Energy
efficient, powerful range of Ceiling fans from Orient.

WALL FANS:-
Direct the breeze of air, where ever you desire! Choose from a wide range
of manual or remote operated smart wall fans.

STAND FANS:-
Give an extra push to your Air Conditioner's air throw and make cooling
personal. Choose from a range of portable stand fans from Orient.

EXHAUST FANS:-
Say goodbye to those smoky kitchen areas and foul odours. Bring home the
super-efficient Orient exhaust fans.

MULTI-UTILITY FANS
With aerodynamic design and multi-directional air deflection feature,
experience the limits of portable fans performance.

VISION AND MISSION

 VISION
 Our vision is to be leading provider of consumer
electronics goods in Pakistan and deliver the best to the
nation and our country

Objectives
 Our target is to become Pakistan’top manufacturer in
electronics and home appliance,photographic and lighting
industries

Mission
"We are a leading Indian electrical brand with significant global
presence. We are focused on making customers happy by
consistently providing smart electrical solutions through
innovation, world-class manufacturing practices, knowledgeable
and customer-oriented distribution network, highly responsive
after sales service and engaged employees."

Objectives
 A general statement of the company is how to vision will be
achieved,the mission statementis an action statement that
usually begins with the word “to”
  Mission of an example of the company- to provide unique
and high quality electrical product to local consumer

MAN-POWER

Orient Electric is part of the CK Birla Group

The CK Birla Group is a growing US$2 billion conglomerate that has a history of enduring
relationships with renowned global companies. With over 25,000 employees, 41
manufacturing facilities and numerous patents and awards, the Group's businesses are present
across five continents. It operates in three industry clusters - Technology and Automotive,
Home and Building, and Healthcare and Education. The group companies are
strengthened by common ownership and shared guiding principles that include a focus
on long-term value, trust-based relationships and philanthropy. Each business is
transforming to build on the collective strength and synergies of the Group's size and
span.

New Delhi, Feb 23 (PTI) CK Birla group firm Orient Electric said it would cross Rs 2,000
crore turnover in next four years, mainly on account of new products additions in existing
segment and increase in exports.
The company, which presently exports primarily fans, is expecting the contribution of
overseas sales to go up to 15 to 20 per cent in next 3-4 years from the present 10 per cent.
The company will continue to expand its product range in the exiting segments - fan, lighting,
durables and switchgear.
When asked that whether the company would cross Rs 2,000 crore turnover in next four
years, Orient Electric CEO Rakesh Khanna said: "We would definitely cross".
He further said: "We would grow at the rate of 20 per cent." Last fiscal, Orient Electricals had
crossed Rs 1,200 crore in turnover, he added.
Presently, the company get 70 per cent of its revenue from fans, followed by lights which
contributes around 20 per cent and rest 10 per cent is from durables and switches.
"However, we believe that in some time other business (other than fan) segment would
increase and would be more than 50 per cent," Khanna added.
Orient Electric had launched switchgear in 2015 in collaboration with Slovenia-based ETI
Group as the technology partner, and the vertical is presently contributing around 2 per cent
of its total sales.
The company is also planning to participate in the governments plan to develop 100 smart
cities and is aiming to start smart lighting segment.
"In the area of smart lighting of the proposed smart cities, that is the area where we can
contribute. It would also have power efficient fans," Khanna added.

ADVERTISEMENT

The company is expecting contribution from exports to be higher in next 4 to 5 years.

"We are Middle East and Africa. We also export to the US and some European countries
and strong in our plan is for deeper penetration in all these markets," he said.
He further added:" Export presently contributes around 10 per cent...It will increase to 15
to 20 per cent in next four years."

Over the demerger and separate listing of Orient Electrical from its parent firm, Orient
Paper and Industries Khanna said:"It would take time and date would be announced".

Khanna further said: "By 28th of this month, the demerger will happen but it will not get
listed. Business will continue to be a part of Orient Paper. It would be shown as different
business but it will be under Orient Paper. As the court process is complete." gets over, that
is the time we can say that demerger

Electric today launched its new Aeroquiet range premium ceiling fans priced at Rs 4,500.
The company has roped in former Indian cricket skipper M S Dhoni for endorsement.
 STRUCTURE OF THE COMPANY

Mr. Chandra Kant Birla

Chairman
Mr. Desh Deepak Khetrapal
Non-executive Director
Ms. Alka Marezban Bharucha
Independent Director

Mr. K Pradeep Chandra

Independent Director
Mr. TCA Ranganathan
Independent Director
Mr. Rakesh Khanna
Managing Director & CEO
MARKET SHARE OF THE COMPANY
Orient Electric, part of the CK Birla Group, is aiming to corner around 25 per cent share
of the domestic fan market in the next two years, a top official said today.

Besides, Orient Electric is aiming to double its market share in the premium fan segment
to 70 per cent by 2020. The company expects premium fans to contribute to 10 per cent of
the total fan sales in the period. .

PESTLE
What is PESTLE Analysis?
PESTLE ANALYSIS which is sometimes referred as PEST analysis, is a concept in
marketing principles. Moreover, this concept is used as a tool by companies to track the
environment they’re operating in or are planning to launch a new project/product/service
etc.

PESTLE is a mnemonic which in its expanded form denotes P for Political, E for
Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives
a bird’s eye view of the whole environment from many different angles that onewants to
check and keep a track of while contemplating on a certain idea/plan.

P stands for POLITICAL

These factors determine the extent to which a government may influence the economy or a
certain industry. For example, a government may impose a new tax or duty due to which
entire revenue generating structures of organizations might change. Political factors
include tax policies, Fiscal policy, trade tariffs etc. that a government may levy around the
fiscal year and it may affect the business environment (economic environment) to a great
extent.

E stands for ECONOMIC

These factors are determinants of an economy’s performance that directly impacts a
company and have resonating long term effects. For example, a rise in the inflation rate of
any economy would affect the way companies’ price their products and services. Adding to
that, it would affect the purchasing power of a consumer and change demand/supply
models for that economy. Economic factors include inflation rate, interest rates, foreign
exchange rates, economic growth patterns etc. It also accounts for the FDI (foreign direct
investment) depending on certain specific industries who’re undergoing this analysis.

S stands for SOCIAL

These factors scrutinize the social environment of the market, and gauge determinants like
cultural trends, demographics, population analytics etc. An example for this can be buying
trends for Western countries like the US where there is high demand during the Holiday
season.

T stands for TECHNOLOGY

These factors pertain to innovations in technology that may affect the operations of the
industry and the market favorably or unfavorably. This refers to automation, research and
development and the amount of technological awareness that a market possesses.

L stands for LEGAL

These factors have both external and internal sides. There are certain laws that affect the
business environment in a certain country while there are certain policies that companies
maintain for themselves. Legal analysis takes into account both of these angles and then
charts out the strategies in light of these legislations. For example, consumer laws, safety
standards, labor laws etc.

E stands for ENVIRONMENT

These factors include all those that influence or are determined by the surrounding
environment. This aspect of the PESTLE is crucial for certain industries particularly for
example tourism, farming, agriculture etc. Factors of a business environmental analysis
include but are not limited to climate, weather, geographical location, global changes in
climate, environmental offsets etc.
 S.W.O.T ANALYSIS

SWOT analysis of Orient Fans analyses the brand/company with its strengths, weaknesses,
opportunities & threats. Orient Fans is one of the leading brands in the energy & power
sector. The table below also lists the top Orient Fans competitors and elaborates Orient Fans
segmentation, targeting, positioning .

STRENGTH
Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT)
Analysis of Orient Fans. Strengths are:
1. Are the largest and oldest brand of fan manufacturersin India
2. Can find anyfanorlightingsolution to match your lifestyle need
3. Diversified into client segments
4. Manufacturing fans which save electricity
5. Green initiatives
6. State of the art customer service c enters
7. Strong brand presence due to TVCs and print ads

WEAKNESS
Here are the weaknesses in the Orient Fans SWOT Analysis:
1.Easily replicated models
2.The brand has limited Global reach and now faces competition from Air
conditioning market

OPPORTUNITY
Following are the Opportunities in Orient Fans SWOT Analysis:

1.Expansion through Strategic Alliances

2. Diversifying into other electrical products

3. Population growth and urbanization is increasing the demand

4. Focus on Technology Intensive Products

THREAT
1 .Maturing categories, products, or services

2. Competition from private

firms

3. Lack of Innovative technology

4. Price wars
COMPETITOR OF THE COMPANY
MARKET PERFORMANCE OF THE COMPANY
Performance
YTD 1-Month 3-Month 1-
Year 3-Year 5-Year 10-Year

Orient Electric 8.55 3.90 -2.57 -7.25 -

- -

S&P BSE Small Cap* -15.48 -3.83 -16.77 -27.11 -

0.18 3.90 5.96

S&P BSE India Infrastructure* -12.76 -6.40 -19.02 -18.39 -

1.67 0.02 -

Company's return has been calculated on basis of NSE's price.

As on Aug 30, 2019

*As on Aug 29, 2019

Key Ratios

Revenue Per Share (R) Earnings Per Share (R) Return on Networth (%)

Annual Ratios (%)

1-Year 3-Years 5-Years

Growth

Revenue 16.54 - -

Net Profit 8.25 - -

EPS 8.25 - -

Book Value 16.44 - -

Average

Operating Margin 8.09 9.53 -

Net Margin 3.70 4.41 -

Return on Networth 24.33 19.55 -

Return on Investment 28.69 20.71 -

Interim Growth Ratios (%)

QoQ YoY YTD

Quarterly

Revenue -10.88 31.19 -10.88

Operating Profit -39.02 56.80 -39.02

Net Profit -51.14 56.73 -51.14

EPS -51.14 56.73 -51.14

TTM

Revenue 7.24 15.81 7.24

Operating Profit 10.72 4.81 10.72

Net Profit 9.85 0.49 9.85

EPS 9.86 0.49 9.86

Peer Comparison

Market Cap

(R Cr) Revenue

(R Cr) Net Profit

(R Cr) Net Margin (%) RoE (%) Price to Book

Price to Earnings

Orient Electric 3,351.47 2,001.65 76.14 3.79

24.33 10.30 44.02

Bharat Dynamics 5,125.46 3,012.49 406.32 12.89 -

2.20 12.61

Dixon Technologies 3,007.60 3,538.56 74.18 2.09

18.35 7.53 40.54

Insider Trades

Date Person Buy / Sell

Transaction

Type No of Shares Price

(R) Value

(R Lakhs)

May 06, 2019 SHEKHAVATI INVESTMENTS & TRADERS LTD

Sell Off Market 8,500,000
155.65 13,230.25

May 15, 2018 Shyam Sunder Jajodia & Yogesh Goenka Hindusthan
Charity Trust Sell Off Market 280,000
141.55 396.34

Fund Houses invested in the stock

Fund Jun-19 Mar-19 Dec-18 Sep-18

Jun-18
Reliance Mutual Fund 8.062 8.062 8.062 8.015
9.411

HSBC Mutual Fund 1.107 0.707 0.754 0.613

0.321

Invesco Mutual Fund 1.055 0.054 - - -

L&T Mutual Fund 1.017 1.354 1.354 1.571

1.530

ICICI Prudential Mutual Fund 0.827 0.748 0.934 1.149

1.359

Sundaram Mutual Fund 0.604 0.611 0.555 0.549

0.033

Edelweiss Mutual Fund 0.389 0.334 0.068 0.068

0.068

Union Mutual Fund 0.326 0.307 0.260 0.350 -

Canara Robeco Mutual Fund 0.251 0.090 - - -

Tata Mutual Fund 0.135 0.135 0.125 - -

Figures given above are % of equity capital

News & Announcements

Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations 2011 | Aug 29, 2019

Disclosures under Reg. 31(1) and 31(2) of SEBI (SAST) Regulations 2011 | Aug 29, 2019

Disclosure As Per Regulation 7(2) Of SEBI (Prohibition Of Insider Trading) Regulations

2015 | Aug 29, 2019

Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome | Aug 27,

2019

Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation | Aug

26, 2019

Announcement under Regulation 30 (LODR)-Credit Rating | Aug 12, 2019

Announcement under Regulation 30 (LODR)-Newspaper Publication | Jul 31, 2019

Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS | Jul 30, 2019

32.40
Min41.32

Median51.16

Max

9.01

Min10.99

Median13.11

Max

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SUMMARY ABOUT THE ORIENT

COMPANY
It is largest manufacturer and exporter of fans from India with a dominating
presence in over 35 international markets. It is also the second largest
manufacturer of LED bulbs in India and the first Indian lighting brand to
have been awarded BEE star rating for LED bulbs.