Industry Profile: Vega Auto Accessories Private LTD

Vega Auto Accessories Private Ltd.
2012
Industry Profile
The usage of helmets in India can be traced by from the ages of Ramayana and Mahabharata. Formally helmets were produced employing metals & alloys. The company also began producing helmets & safety equipments for the defense , Industrial and General Utility, Mining & sports sector also . Helmets have been in usage as a protective and safety tool. The discovery of Plastic, Polymer & Viscous liquid changed the outlook of helmets in India. Prior to independence the usage of helmet in India as part of travelling requirement was significantly less. So helmets were mostly imported from England. The helmet production industry was yet to take its birth in India. Indias first helmet manufacturer Steel Bird (1964), entered with wide variety of helmets at premium prices (starting from Rs.750). Later on many companies followed the suite, few to mention are Concord Helmets (1965), Studds Helmets (1968), Vega Helmets (1981) and many other companies. Helmet Industry has gained a widespread importance since last two decade or so. There are many big players in this industry steel bird, Hi-star, MPA, Valanza, Studs, Vega, Volgo and the rest other unorganized sector. The industry has good scope & potential because of the changing market dynamic & the massive demand for two wheeler. Before five year the growth of helmet segment was 10% to 20% annually. Now it is hurtling along at almost 40%. This is mainly because of the importance given by the concerned regulatory authorities in various states and central government. In India, the Helmet industry is growing at a rate of 24% (2008 09). And with many state governments implement compulsory use of helmet shall contribute higher growth rate in terms of sales of helmets. More recently Delhi, Tamil Nadu, Kerala, Andhra Pradesh and many others have implemented compulsory use of helmets while using two-wheelers.
Bapuji Academy of Management and Research, Davanagere
Vega Auto Accessories Private Ltd. 2012

Vega entered in the market in the year 1981 with annual sales of 10,000 units per year. At the same time Hi star & 50 odd small manufacturing concerns entered the market. The small manufacturer came with small end modules often sold in temporary roadside stand by individual seller. As a result their domestic shares started to decline. As there was improvement in technology & new production market. Then the steel bird entered the foreign market , as later on Vega also started exporting their helmets. As a results use mandatory in some region & optional in others. Helmets laws were enacted & retracted frequently, as local governments changed. At the end of 1990s the exporter also started rising cost of production of Indian helmet was cheaper than the manufacturer from Thailand & Malaysia. A Vega is the only foreign brand, which is sold in India. An American company Daytona helmet, which has tie-up with Belgaum, based on Vega auto accessories. The fact is that the Indian helmet, market is not anywhere as big as it ought to be. Nevertheless, the organized sector players like Vega steel bird, MPA & studs are extending their range, conducting road shoes & foreign alliances with foreign partners to make the most of the growing demand. The helmet ruling section 129 of the central Govt. motor Vehicle Act makes it compulsory for two wheeler rides wear proactive helmets. While Delhi is among the 1st Indian state to implement it strictly the was actually imposed in Maharashtra following a high court ruling to a public interest litigation of 2001. Typically , confusion regained among the transport & traffic police department on the implementation of rule. However due to the high ratio of two wheeler rider virus the no of helmets currently available in the market, the traffic police have relaxed the clamp on pillion riders for the time being. One of the most common complaints helmets is that they are cumbersome to lug around. But the sheer nature of 2 wheeler transport makes it necessary. In the recent months industry boomed as the govt. made rules for mandatory use of helmets through it is not practice though out but helmet industry made a huge sales in the domestic market.

As per the Section 129 of Motor Vehicles Act 1988 (India), Protective headgear" means a helmet which: By virtue of its shape, material and construction, could reasonably be expected to afford to the person driving or riding on a motor cycle a degree or protection from injury in the event of an accident; and Is securely fastened to the head of the wearer by means of straps or other fastenings provided on the headgear. Helmet Industry has gained a widespread importance since last two decade or so. This is mainly because of the importance given by the concerned regulatory authorities in various states and central government.
Why a helmets: Helmets are the principal countermeasure for reducing crash related head injuries, the leading cause of death among un-helmeted riders. Helmets decrease the severity of injury, the likelihood of death, and the overall cost of medical care. They're designed to cushion and protect riders' heads from the impact of a crash. The World Health Organizations (WHO) report on traffic injury prevention documents that compulsory helmet use by two wheeler riders can reduce deaths by 30% to 50%. There is no scientific evidence available that use of helmets makes motorcyclists more vulnerable because of reduction in sight or hearing. Helmets also protect from direct sun, rain, dust & dust from industrial & vehicle pollution. When compulsory helmet use laws are enacted, helmet use increases and fatalities and decrease. And, when such helmet use laws are repealed, helmet use decreases associate costs increase. serious injuries and injuries and
Company overview
Vega Auto Accessories Pvt. Ltd. (Vega), Belgaum was established in the year 1981. The founder and the chairman of the company Mr. Premraj Chandak has given a new dimension to the helmet manufacturing in the initial years of its inception. The initial investment of the company is Rs.10 Lacks. Since inception Vega has been concentrating on delivering quality helmets and related accessories of the highest order safeguarding the interests of millions of two wheelers riders across the country and abroad. With the firm belief the quality and form goes hand in hand Vega has been on the fore-front of the helmets industries incorporating the latest practices and standards be it the use of fiber glass or ABS material in manufacturing helmets, certification by the coveted ISI. At Vega quest for achieving excellence is an ongoing process, and the latest endeavor is to get its processes and operations certified ISO. While all these achieved at rapid pace, Vega does and forget its responsibilities to the society at large, taking care to spread the message of safety through use of Helmets at every possible platform be it the Auto Expo conducted by the CII, the counters of its vastly spread dealers or the self-organized road shows. Vega has over 300 models of sleek designer helmets spread over 18 broad categories, giving the perfect fit, fashion and safety to its user. These winning ranges of helmets are produced at the state of the art manufacturing set-up delivering on an average 2000 helmets per day. The sales of Vega helmet is not just limited to Indian markets alone (320 dealers), but has extended to foreign markets, few to mention are USA, Germany, Israel, Italy, South Africa, UAE and many other regions of the world

Nature of the business
Vega Auto Accessories is a manufacturing unit. The company is into both B2C and B2B marketing of its products. Helmet manufacturing at Vega is basically on a large scale and products are marketed and sold to both domestic and International clients under the brand name of Vega helmets. Vega is also in the business of auto accessories.
Type of Business Type of Production Market area covered
Manufacturing Mass Production Domestic & International
Company Profile
Company Name Type of organization Address : : : Vega Auto Accessories Pvt. Ltd. Private limited Plot No. 12\B No 342 cold 690 BEMCIEL Industrial estate, Udyambag, Belgaum 590008 Karnataka, India Reg. Address Nature of Business Reg. certificate Chairman MD & CEO Establishment Area Market : : : : : : : : 543, VittalDev Lane Manufacturing 31 may 1982 Mr. Premchand. Z. Chandak Mr. Dilip. P. Chandak 1981 36900 Sq ft North America, South America, Europe, Southeast, Asia, Mid East, Easter Asia, Western Europe Export Branch : : 45% - 60% Vega Aviation Pvt. Ltd. Vega Fun Mobile Pvt. Ltd. Initial Investment : 10 Lack
Vision:
Our vision is to create brand and to provide right products to the exacting demands of the quality conscious customers at a competitive pricing structure. Vega appreciates commitment for teamwork, continuous improvement, and developing mutually beneficial relationship with the customer
Mission:
Our mission is customer satisfaction through continuous efforts on always finding better ways to do things and protect the interests of our customers by selling exclusively to the both industrial and two-wheelers users. We appreciate the opportunity to earn our customers safety by providing quality products recognized by Bureau of Indian Standards (ISI)
Product Profile
Vega Auto Accessories is popularly known for its wide range of quality helmets. Vega helmet range emphasis 18 different models (both full face & open face), which are available in wide array of colors & as in range of 15 double colors Beside this is full faced helmets are designed by Vega or in some cases the design is given by the customers. The monthly production of helmet is 25000 out of which roughly 60% are sold the domestic market & remaining 40% in foreign market. Among the available models the fast selling design includes Integra, Formula HP, Voyager & dominator. Beside this basic product Vega auto accessories also into the manufacture of helmet s locks & plans introducing the fun bike, go-kart, as well as riding apparels is already underway Vegas main motto is to continue improvement and innovation at every stage of its value chain. nationwide but made its impression in the overseas market also as well viz U.S.A, Germany , Israel, Turkey, etc.& to cater the domestic market. At present it has a wide spread network of dealers crisscrossing the country & not only established itself.
The product portfolio of Vega Auto Accessories Pvt, ltd. Vega Products
Helmets
Other Accessories

Different types of Vega Products Full Face Helmet Open Face Helmet Accessories
There are 18 models of Vega Helmets are available in different types of colors. Vega also produces Helmets with graphics on it. Which are more popular in these days. Vega has 6 types of accessories. Those are helmet locks, visors, caps, goggles and jackets.
Area of operation
The company markets its products in both national and international markets. Vega products are available in almost all major cities across the country. This is mainly due to the strong dealer network and efficient marketing team at Vega. The company has presence in countries like USA, Germany, Israel, Italy, South Africa and UAE.

Regional level Client:
Mayor Enterprise, Belgaum Bangalore, Belgaum, Mangalore, Mysore etc. Two wheeler user.
National level clients

Mahalaxmi Automobiles, New Delhi Tata Motors, Mumbai Kirloskar Oil Engines ltd, Pune Ghagte Patil Industries ltd Spares I.S Press building, Cochin Pioneer Scooter Center, Chennai Champion Sports, Pune Two wheelers user: Tamil Nadu, Andhra Pradesh, Delhi etc.
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Board of Directors:
SL.No
1 2 3 4 5 6 9
Name of the Director

Premraj Z. Chandak Dilip. P. Chandak Giridhari P.Chandak Suhas P. Chandak Uttam P. Chandak Sangita D. Chandak Shalini G. Chandak
Designation
Chairman MD &CEO Purchase &Marketing Manager Production Manager R & D Manager H R Manager Account Manager
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Competitors information :
Vega Helmets are well known for its good quality of helmets. Quality wise Vega have got very few competitors. In these bunch of companies Vegas Helmets are most preferred by customers.
SL. No 1 2 3 4 5 6 7
Company Name
Studds Accessories Pvt. ltd Steel Bird Hi-tech India ltd Aerostar Helmets ltd. Wrangler Helmets ltd MPA Helmets ltd. Rail Helmets ltd. Spark Helmet
Place
Hyderabad New Delhi Kolkata Roorkee Mumbai Italy Chennai
Infrastructure Facilities:
Vega Auto Accessories is an amalgam of latest technologies, advanced software and excellent manpower aimed to deliver an exclusive range of highly secured helmets to its clients. The unit spreads over an area of 36,900 sq. feet at Belgaum, Karnataka. The following is a small detail of our infrastructural abilities.
Following are details of the infrastructure facility at Vega Auto Accessories, Belgaum

Latest CAD/CAM tools from Delcam Latest Power-shape software for modeling PS Mold-maker and PS-Render software to deliver perfect finishing touch Delcam's Power-mill and Art-Cam for designing exclusive products
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Mckineseys 7S Framework with reference to Vega Pvt. Ltd. Introduction:

Mckinseys 7s frame work provides a useful frame work for analyzing the strategic attributes of an organization. The 7S model is better known as Mckinsey 7S.This is because the two persons, who developed this model Tom Peters and Robert Waterman, have been consultants at Mckinsey and company at that time. They published their 7S model in their article Structure is not organization in 1980 and in their books The art of Japanese management in 1981 and In search of excellence in 1982 The 7-S framework of Mckensy is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.
Organization Structur e Organization Strategy Strategy System Routine Process
Shared Values
Skills
Style
Capabilities of key people
Staff
Management style & culture
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Seven Element: Hard Element
Strategy Structure System
Soft Element
Style Skill Staff Shared Value
Strategy:
In an industry with many helmets manufacturer Vega maintain a clear cut strategy to market. Vega maintain its market position by delivering quality product to its customers. Manufacture under strict quality control measures & standard. Vega adopt the same strategy for foreign market proper manufacturing & management strategy . Vega has been a undisputed leader in the helmet market. Strategy is the route that the organization has chosen for its future growth; A plan an organization formulates to again advantage over the competitors. It deals with essentially three questions Where is the organization standing at this moment of time? Where the organization wants to be in a particular length of time? How to get there? Vega has a strategy to improve its quality and maximize its sales.
Structure:
Vega have good organization structure. Business needs to be organized in a specific form of shape that is generally referred to as organizational structure. The structure of the company often dictates the way it operates and performs. Traditionally, the businesses have been structured in a hierarchical way with several divisions and departments, each responsible for a specific task such as human resources management, production or marketing .
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Different Department and function
Vega consists various departments they are as follows, Marketing Department Production Department Finance Department Packaging Department Purchase Department HR Department
Marketing Department:
Vega is engaged under the manufacturing and marketing of auto accessories and safety equipments Their helmets brands have national as well as international recognition. All kinds of helmets and other safety equipments are marketed. The helmets with visor, without visors, half face other safety and full-face helmets are manufactured and marketed. There are 18 models are marketed by company. Marketing department performs the functions like promoting the products at various media sources, receiving the orders (Online) and dispatching the goods at the right time as per requirements of the customers. The department is headed by Mr. Giridhari P. Chandak. Marketing department has well qualified Assistance & Sales force employees who assess the requirements of customer, and accordingly provide needed service to customers. Products are, Helmets Helmet Locks Visor T-shirts Helmet bags Helmet strikers Caps
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Organization structure of marketing Department

The organization structure for Marketing Department is shown below:
Promotional strategies:
Vega basically implements the promotional aspects like advertisements in magazine, auto deal, auto India, XBHP, Group rally, conducting Events , paintings and banners to promote its helmet also showroom displays techniques are used. It also sponsors invents are adopted certain practices to promote its products. Incentives, records and discount are given to dealers.
Distribution Channel:
There are several distribution channels Vega is used only one intermediaries in their channel. It has around 350 dealers . Vega appoints single dealer in a particular area. This is done in order to prevent unhealthy competition. Next the dealer directly caters to the needs and demands of the customers and there is no intermediary link.
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Distribution Channel
Manufacture
Dealer
Consumer
Target Market:
Vega targets its brands of helmets towards the 2 wheeler owner, drivers, etc it takes into account especially the sector. It basically target at young star and youth. The products are targeted in such a manner that fission along with the safety precaution that the he helmet provides. Hence Vega innumerable brands and categories to choose from its business operation. It various assorted colorful helmets designed for various mindsets of the people.
Production department:
The production process starts when these units gets job card which contains the details of the product such as the Model, Color and the Design of the helmet. The work of the production department is to plan, observe , all the production activities concerned with the manufacturing of the manufacturing of the product. This department sees that all employees regular to the work and carry out their job activity effectively and efficiently. Moreover this department takes care of the machinery by maintaining the machinery whenever necessary .This helps in improving productivity of the machinery. There are 250 workers working in this department the target of this department is 25000 units per month
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The production process is divided in to three different units such as Moulding Unit. Tailoring Unit. Assembly Unit.
1. Moulding Unit: Making Moulds: The moulds are prepared by the fiber glass paper. The R&D department gives the design as per the customer requirement. If it is an export order the importer supplies the design most of the time. Making of Helmet shell: After the fiber glass is stitched in the moulds with the help of the resin and the hardness is added to the resin. It is very important function.
Drying: The mould is kept for 20-30 minutes to get dry. If the climate is cold then the bulbs are used to dry the moulds. After drying shell is checked twice to check for its quality.
Cutting the shell: When the shell is dried is opened and extra fiber glass is cut to get the proper shape.
Sanding: The sanding paper is used to level the shell.
Lambi: Lamdi is a paste which is used for cover the tiny holes on the helmet shell.
Sanding: Sand paper is again used for remove the extra lambi paste on the helmet shell. This is done when the lambi is dried.
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Cutting and Designing: The shell is cut as per the design and the holes are drilled for the ventilation. Lambi: After cuttimg and designing the shell lambi paste is again used for cover the tiny holes.
Sanding: After the lambi sanding paper is used again to level the shell.
Primer: The primer is used/applied for giving perfect smooth surface to the helmet shell.
Polishing: The shell is polished with the help of the polishing machine to give more smoothness to the surface. Then, these helmet shells are transferred to the assembly unit for the further process.
2. Tailoring Unit: Gumming: The helmet shaped thermocol is gummed and kept a day. Grinding: The thermocol is cut into proper size with the help of the grinding machine so that properly shift in to shell. Cutting foam: The foam is cut as per the models in different pieces. Stitching: Different parts of the foam are stitched. For ex: Belts.
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Pasting: The foam is pasted to the thermocol shell. Then the lining cloth is used to cover the foam. These thermacol shells are then send to the assembly unit.
3.Assembly Unit: Sanding: The helmet shells which come from the moulding unit are leveled by Sanding.
Painting: The helmet shells are painted as per the specifications given in the job card. The painted shell is kept for a day to get dry. If there are two or more colors then it takes long time to get the helmet painted.
Sticker: The stickers are put on the helmet that has the model name , logo of the company and ISI mark.
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Production Process FRP molding
Plastic Process
Painting
Checking
Strickering
Lacquer
Lacquer
Inspection Assembling Inspection Packaging
Dispatch
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The following are the materials used in the manufacturing of helmets. Fiber glass Plastic Visor Primer Rubber Foam
Thermo col Packaging And Dispatching Department

After the manufacturing of the product is completed inspection is done of each unit. After final inspection done the product is sent for packaging. The helmets are put in cotton bags and packed in cardboard boxes to prevent any damages to goods. Then the goods are dispatched through local transport and in case of export they are put in containers and sent to the shipping and then sent to the assigned customer.
Research And Development Department

Another important unit under the production management cell is the Research and Development engineering & support & Safety standards unit. This unit function under Mr. Uttam. P.Chandak. This unit holds a key position at Vega. A series of takes from designing a helmet to visor cutting are taken care of by this unit. The following is the organized chart of this unit. The R&D department is responsible for: New product innovation or modifications of the existing ones. Estimating costs for producing in different quantities. Documentation (Part list releases) before trial series to all departments. Regular follow-up with other departments (like Production, Sales etc) Resolve problems related to design mismatch while assembling the parts.
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Purchase & Stores Department:

The working of this department must be efficient for any company to keep their inventory & cost of inventory optimum & consistent. The head of this department needs to be a highly experienced field worker to have complete knowledge of the prevailing costs of every requisite product in accordance with the brand and equity. The purchase department is headed by purchase manager. Purchase manager is responsible the efficiency of this department & maintaining all the records & returns. The main job of purchase manager is to obtain the inventory report &and the ascertain the quality required to be purchased. The stores department will be responsible for holding all the necessary tools, spares, raw materials, brought out items and equipments required to service the manufacturing process. In this department 2,000 materials are stored. Inventory should be maintaining first in first out method. Store department should be maintain Bincard it helps to maintain order. Raw materials should be purchased just in time. Minimum Order 10,000 Maximum order 1,00,000 Functions: To maintain up-to-date bin levels of various materials and brought items so that production activity is not hampered. To issue materials to various departments. To accept or reject the extra material from the department and make suitable arrangements for their disposals.
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Charts
Director
Assistant Purchase manager
Store instinctive
Asst, store & stickers
Asst,Store inword & issue
Asst, Store &Purchase for Molding
Asst, store & Purchase Training
Asst, Store & Purchase Training
Asst, Store Purchase assembly
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Finance and Account Department:

Mr. Dilip P. Chandak, the managing director, heads the financial department. All financial affairs related to the company are dealt with through this department. The following is the organization chart of Vegas finance & account department. The finance department takes care of all the finance requirement of all the departments of the organization. This department maintains a balance between the finance requirement & profitability of the organization In short this department sees that organization is financially sound. Vega auto maintain the accounts of different departments in a systematic manner & on continues basis. The depreciation should be calculating reducing balance method.
The department does the following work; Recording and monitoring of all trans Submit reports like Profit & Loss A/C, Balance Sheet, etc Calculating production cost Cost report with variance analysis Bank dealings Dealings with sales tax & income tax authorities Established activities Maintaining all accounts.
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Finance and Account Department:

Managing Director
Finance
Export Marketing
Banking and adult mgt
Account Manager
CA
A/c Manager
Senior Asst
Cashier
Invoicing
Accountant
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Human Resource Department:
The human resources management at Vega Auto Accessories is taken care by Human Resources Department. This department is under HR department has been secured from Mrs. Sangita Chandak.
Human Resources Management:

The human resource function as per the circular format is has been divided under the following heads. The information about the functioning of the head of this department is as follows;
Human resources planning:

Vega Auto has no format specific HR plan as such. Their planning depends upon the demand factors in their business. These exits transfer policy in Vega. Also due to recent emergency of the HR department, it is considering to have a HR plan in subject periods of their business management. Planning goes according to the various kinds of situation that arise in the company.
Human Resources maintenance:

Vega pursues an effective HR maintenance policy. The welfare of the employees is given prime importance. The welfare administration of the organizing is done at the managerial level for all the works. The details regarding the welfare facilities provided by Vega in terms of statutory
Wages & Salary administration:

Vega pursues the daily wage system. The employees are given their wages on Saturday every week. The HR manager administrators wage & salary aspects Asst. personal manager who looks into those aspect assists. The staff salary is on monthly basis & they get their salary package on 7th of every week. Besides this the annual bonus system prevails in Vega & is solely on monitory basis.
Incentives:
The employees are provided incentives if they achieve the desired tasks within the stipulated time period. The incentive is on monthly basis.
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Insurance coverage:
Insurance coverage is given to all the employees who are covered under Employee State Insurance Act. The management of Vega Auto is also providing different coverages like E.L.D.I etc.
Performance Appraisal:
The appraisal technique is conducted on yearly bases. Due its recent Formation, the HR department is considering to have a well-defined performance appraisal policy from this year. Employees are appraisal in order to evaluate their contribution towards their job requirements & company requirements
Training & development

Vega employees are given on the job training, both for technical & non-technical posts. This is intended so that the employees are well accustomed to their jobs. The supervisors conduct training. Besides this Vega also hire external trainer to train the employees. Training is conducted by organizing lectures, seminars, workshops, etc. & management games are also used.
System:
The company has well established internal control system in all functional area & this is received periodically. This system is further reinforced by an independent audit. The audit committee & Board of director the activity receiver, the adequacy & effectiveness of internal control system & suggest improvement for strength of them. It refers to rules, regulation & procedure that complement the company structure. It includes production planning & control system, Training & development. Every organization has some systems or internal processes to support and implement the strategy and run day-to-day affairs. Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer
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Soft Element
Skill
The actual skills and competencies of the employees working for the company. Training and development ensures employees to do their jobs well and stay up to date with latest techniques At Vega Auto Accessories Pvt.Ltd different training programs are conducted for the employees to equip them in their particular discipline of work. Different training and development programs are given to employees, officers and executives to cope up with the new technology. Sl. No 1 2 3 Department HR Design HR & Production Training Behavioral Training Technical Training Safety Training Expected Skills Managing interpersonal relations, Update with the latest technological changes Expected safety precautions
Style:
It is another important element which the top management can use to bring about a change companies different from each other in their style adopted becomes evident through the pattern of action taken by member of top management. Top down and Bottom up. Vega Auto Accessories adopts both the styles i.e. Top down and Bottom up accordingly as required. While taking suggestions from employees, they follow the Bottom up style. And for any management decision to be implemented, they follow Top down style. The particular departmental heads collects the needed information to take part to solve problem and submits to the top management, and accordingly the work or decision are being taken.
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Staff:
It is the process of acquiring that they have potential to contribution to the achievement of the companys goals. It is selecting peoples for specific company positioning & developing in assignment. The staff that they would need to be effective in the subsequent assignment. The staffing function applies to the whole company. The staff is the organizations human resources. Refers to how employees are developed, trained, socialized, integrated, motivated and how their careers are managed.
Shared Value:
Shared Values are the core values of the company that are evidenced in the corporate culture and the general work ethic. The values and beliefs ultimately guide the employee towards valued behavior. These values and set goals keep the employees working towards common destination as a coherent team and thus help them to keep the team spirit alive. Vega Ltd is conscious of its moral responsibilities towards its employees, staff and customers. The information & data in this report pertaining to the various aspect and functional details of the organization their hierarchy and structure role and function ,operational methodology & also the important portfolio attached to these department have been rendered. The information and data gathered from the respective heads of the organization is true to the best of their knowledge.
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SWOT Analysis:
A SWOT analysis is a tool, used in management and strategy formulation. It can help to identify the Strengths, Weaknesses, Opportunities and Threats of a particular company. It is first of planning & helps to marketer to focus on key issues Strengths and weaknesses are internal factors that create value or destroy value. They can include assets, skills, or resources that a company has at its disposal, compared to its competitors. They can be measured using internal assessments or external benchmarking. Opportunities and threats are external factors that create value or destroy value. A company cannot control them. But they emerge from either the competitive dynamics of the industry/market or from demographic, economic, political, technical, social, legal or cultural factors (PEST).
Internal Strength Weakness
External Opportunity Threat
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Strengths:
Well-developed industry with strong manufacturing base. Vega Helmet has got good brand image in Indian as well as in foreign market. Potential market Vegas products are high quality and follows latest unique styles. Effective participation of management. The company has good export capability for foreign markets. Better working facilities & condition for worker.
Weaknesses:
Absence of skilled labor. Production process is complicated. High labor turnover. Less concentration on domestic market. No definite selection and recruitment procedure. No opportunities to fresh candidates.
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Opportunities:
Large number of customer. Adapt e-marketing technique to increase the sales volume. The domestic market is still untapped; company can focus in improving market share here. Expansion & Diversifications. More opportunities in international market.
Threats
The major threat for the company is from local manufactures, who sell the helmet at half rate when compared to Vega helmets. Tax rate. Dealer problem. Scarcity of row materials. Government repealing the order of compulsory helmet wearing. Foreign companies are trying to enter the Indian market.
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Financial Report of the company:

Profit and Loss Account for the year ended on 31st march, 2011
PARTICULARS FOR THE YEAR ENDED ON 31ST MARCH,2011 FOR THE YEAR ENDED ON 31ST MARCH,2010 FOR THE YEAR ENDED ON 31ST MARCH,2009
Turn over Sales Other income Total Material consumption Operating expenses Administrative expenses Selling expenses Financial expenses Fees rates and taxes Depreciation Total Net before tax Less :deferred tax liability Add : deferred tax liability reversed Less :appropriations Taxation For the year Previous years Fringe benefit Add :excess provision FBT A.Y 2009-10 Transfer general reserve Income tax refund A.Y 2007-08 Proposed dividend Transferred to balance sheet Rs
11,58,36,135.52 77,83,278.32 1,23,69,413.84 7,30,76,681.82 1,10,18,919.00 81,22,119.00 1,60,69,557.59 67,61,409.19 12,65,343.00 47,66,539.00 12,10,80,568.60 25,38,845.24 4,30,062.00 0.00 5,12,181.00 1,16,040.00 0.00 0.00 0.00 14,80,562.24
11,22,29,916.99 31,36,940.56 11,53,66,857.55 7,65,46,077.05 67,53,539.00 59,79,526.00 1,44,69,586.53 63,94,549.77 2,95,476.00 38,35,893.00 11,42,74,647.35 10,92,210.20 28,775.91 0.00 2,99,702.00 943.00 17,756.00 0.00 0.00 7,80,545.29
7,82,41,025.90 10,91,535.60 79332561.50 4,86,45,251.15 44,47,830.50 48,97,817.00 1,01,09,676.76 67,37,582.02 2,41,001.03 37,13,733.00 78,79,2891.48 5,39,670.02 0.00 8,553.00 54,845.00 70,839.00 205767.00 0.00 0.00 21660.00 0.00 2,38,432.02 35

Balance sheet as at 31st march 2011
PARTICULAR SOURCE OF FUNDS SHARE HOLDERS FUNDS Share capital Share application money Reserve and surplus DIFFERRED TAX LIABILITY LOANS AND FUNDS Secured Loans Unsecured Loans TOTAL APPLICATION OF FUNDS FIXED ASSETS Gross block Less depreciation INVESTMENTS
CURRENR ASSETS,LOANS AND ADVANCES
As At 31st March, 2011
15,00,000.00 0.00 1,01,88,069.87 1,16,88,069.87 7,38,481.00
15,00,000.00 0.00 87,07,507.63 1,02,07,507.63 3,08,419.00
15,00,000.00 0.00 79,26,962.34 9,42,6962.34 279,643.09
2,02,25,454.94 6,21,40,197.00 9,47,92,202.81
99,78,682.02 5,59,36,339.00 7,64,30,947.65
1,25,66,205.02 54908215.00 7,71,81,025.45
6,47,11,348.23 2,71,84,855.53 3,75,26,492.70 71,150.00
5,15,17,966.23 2,24,18,316.53 2,90,99,649.70 71,150.00
4,19,23,872.23 1,96,49,874.53 2,22,73,997.70 21,150.00
Stock in Hand Cash on Hand Sundry Debtors Loans and advances Less: Current Liabilities and Provisions NET CURRENT ASSETS MISCELLANEOUS EXPENSES TOTAL
5,09,19,132.04 75,37,791.46 1,50,38,954.00 2,44,82,055.00 9,79,77,932.50 4,07,83,3.3972 5,71,94,560.11 9,47,92,202.81
4,39,39,377.40 23,07,415.71 1,61,91,740.00 1,79,93,816.00 8,04,32,349.11 3,31,72,201.16 4,72,60,147.95 7,64,30,947.65
6,12,02,774.43 11,86,490.87 95,51,920.04 1,57,99,921.29 8,77,41,106.63 3,28,55,228.88 5,48,85,877.75 7,71,81,025.45 36
LIQUIDITY RATIOS: 1. CURRENT RATIO:

This ratio indicate the firms commitment to meet its short term liabilities
Current Ratio =
Current Assets Current Liabilities
Year 2009 2010 2011
Current Assets 87741106.63 80432349.11

97977932.50
Current Liability Current Ratio 32855228.88 33172201.16

40783339.72
2.67 2.47 2.40
37
Vega Auto Accessories Private Ltd. 2012 Current Ratio

2.7 2.6 2.5 2.4 2.3 2.2 2009 2010 2011 Current Ratio
Interpretation:
From above table it is clear that current ratio has decreased year on year. This is because of increase in current assets to a higher extent & current liability has not increased proportionately.
38

2) QUICK RATIO or LIQUID RATIO or ACID TEST RATIO:
Current Assets - Inventories Quick ratio = Current Liabilities
Year 2009
CA - INVENTORY
CL
QUICK RATIO 0.80
87741106.63-61202774.43
= 26538332.2
32855228.88
2010
80432349.11-43939377.40
=36492971.71
33172201.16
1.10
2011
97977932.50-50919132.04
=47058800.46
40783339.72
1.15
39
Vega Auto Accessories Private Ltd. 2012 QUICK RATIO

1.2 1 0.8 0.6 0.4 0.2 0 2009 2010 2011 QUICK RATIO
Interpretation:
From above table it is clear that quick ratio has increased year on year. This is because of increase in current assets & inventory to a higher extent & current liability has not decreased proportionately.
B) Leverage ratio
3) CAPITAL EQUITY RATIO: Capital employed or net assets Capital Equity Ratio = Net worth
40

Net worth = share capital + reserve YEAR NET ASSETS NET WORTH CAPITAL EQUITY RATIO 9.30 7.87 8.38
2009 2010 2011
87741106.63 80432349.11 97977932.50
9426962.34
10207507.63 11688069.87
CAPITAL EQUITY
9.5 9 8.5 8 7.5 7 2009 2010 2011
RATIO
CAPITAL EQUITY RATIO
Interpretation:
From above table it is clear that capital equity ratio has decreased year on year. because of increase in net assets to a higher extent & net worth has not increased & in the last year increased from 2010 to 2011. Because net worth is higher then net assets.
ACTIVITY RATIOS
Bapuji Academy of Management and Research, Davanagere 41
4) ASSETS TURNOVER RATI0: Sales Assets turnover ratio = Net Assets or Capital Employed YEAR SALES NET ASSETS ASSET TURNOVER RATIO 0.89 1.39 1.18
2009 2010 2011
78241025.90 112229916.99
87741106.63 80432349.11 97977932.50
115836135.52
ASSET TURNOVER RATIO

1.4 1.2 1 0.8 0.6 0.4 0.2 0 2009 2010 2011 ASSET TURNOVER RATIO
Interpretation:
Bapuji Academy of Management and Research, Davanagere 42

From above table it is clear that asset turnover ratio has increased year on year. Because in sales is higher then net assets.
5) INVENTORY TURNOVER RATIO: Inventory Turnover Ratio indicates the efficiency of the firm in producing and selling its products. Sales ITR= Inventory
YEAR
SALES
INVENTORY
INVENTORY TURNOVER RATIO 1.27 2.55 2.27
2009 2010 2011
78241025.90 112229916.99
61202774.43 43939377.40
115836135.52
50919132.04
43
Vega Auto Accessories Private Ltd. 2012 INVENTORY TURNOVER RATIO

3 2.5 2 1.5 1 0.5 0 2009 2010 2011 INVENTORY TURNOVER RATIO
Interpretation:
From above table it is clear that inventory turnover ratio has increased from 2009 to 2010 year.& last year decrease from 2010 to 2011. Because increased in inventory in the year 2011 .
6) WORKING CAPITAL TURNOVER RATIO:
Sales
WORKING CAPITAL TURNOVER RATIO=
NWC or NCA
44
YEAR
SALES
NWC
WORKING CAPITAL TURNOVER RATIO
2009 2010 2011
78241025.90 112229916.99
54885877.75 47260147.95 57194592.78
1.42 2.32 2.02
115836135.52
WORKING CAPITAL TURNOVER RATIO

2.5 2 1.5 1 0.5 0 2009 2010 2011 WORKING CAPITAL TURNOVER RATIO
45

Interpretation:
From above table it is clear that working capital turnover ratio has increased from 2009 to 2010 year.& last year decrease from 2010 to 2011. Due to increased in net working capital in the year 2011 .
7) FIXED ASSETS TURNOVER RATIO:
Net sales Fixed Assets Turnover Ratio = Fixed assets FIXED ASSETS Fixed Assets Turnover RATIO 3.56 3.96 0.32
YEAR
NET SALES
2009 2010 2011
79332561.50
115366857.55
22273997.70 29099649.70 37526492.70
12369413.84
46
Vega Auto Accessories Private Ltd. 2012 Fixed Assets Turnover RATIO
4 3.5 3 2.5 2 1.5 1 0.5 0 2009 2010 2011 Fixed Assets Turnover RATIO
Interpretation:
From above table it is clear that fixed asset turnover ratio has increased from 2009 to 2010 year.& last year decrease from 2010 to 2011. Due to increased in fixed asset in the year 2011 .
6) DEBTORS TURNOVER RATIO:
The ration indicates the quality of the debtors to great extent determines a firms liquidity.
Credit sales or sales DTR= Debtors
47

DEBTORS TURNOVER RATIO 8.19 6.93 7.70
YEAR
SALES
DEBTORS
2009 2010 2011
78241025.90 112229916.99
9551920.04
16191740.00 15038954.00
115836135.52
DEBTORS TURNOVER
8.5 8 7.5 7 6.5 6
RATIO
DEBTORS TURNOVER RATIO
2009
2010
2011
Interpretation:
From above table it is clear that debtor turnover ratio has increased from 2009 to 2010 year.& last year decrease from 2010 to 2011. Due to decreased in debtors in the year 2011 .
48

PROFITABILITY RATIOS:
9) NET PROFIT RATIO:
Net profit NET PROFIT RATIO = Net sales
YEAR 2009 2010 2011
NET PROFIT
NET SALES
NET PROFIT RATIO 0.003 0.006 0.1
238432.02 780545.29 1480562.24
79332561.50
115366857.55
12369413.84
49
Vega Auto Accessories Private Ltd. 2012 NET PROFIT RATIO

0.1 0.08 0.06 NET PROFIT RATIO 0.04 0.02 0 2009 2010 2011
Interpretation:
From above table it is clear that net profit ratio has increased year on year. Because in net profit is higher then net sales
50

10) ROE (return on equity): PAT ROE (return on equity) = Net worth Year 2009 2010 2011 PAT Net worth ROE Ratio 0.025 0.076 0.12
238432.02 780545.29 1480562.24
9426962.34
10207507.63 11688069.87
ROE Ratio
0.12 0.1 0.08 0.06 0.04 0.02 0 2009 2010 2011 ROE Ratio
51

Interpretation:
From above table it is clear that return on equty ratio has increased year on year. Because in net worth is higher then PAT
11) NET WORKING CAPITAL RATIO:
Net working capital NWC RATIO = Net Assets
Year 2009 2010 2011
NWC
NET ASSETS
NWC RATIO 0.62 0.58 0.58
54885877.75 47260147.95 57194592.78
87741106.63 80432349.11 97977932.50
52
Vega Auto Accessories Private Ltd. 2012 NWC RATIO

0.63 0.62 0.61 0.6 0.59 0.58 0.57 0.56 2009 2010 2011 NWC RATIO
Interpretation:
From above table it is clear that net working capital ratio has decreased year on year. Because net asset is higher then net working capital.
53
Learning Experience:
At Vega auto accessories Pvt. Ltd. Belgaum I met Mrs. Sangita.P. Chandak. An HR and took permission to undergo in plant training for the duration of 4 weeks. The experience was wonderful which exposed me to practical knowledge of what I studied in the class room. It gave me practical knowledge with regards to the functioning of organization, its culture, values, practices and beliefs. I heartily thank Vega Auto Accessories Pvt. Ltd, for given me opportunity to do my project and research. This project work helped me to learn and understand the working culture of the organization in different areas of it. It enriched my practical knowledge about the field work in marketing specialization. The scope of the training covered various aspects like how they work, Authority Responsibility, Production, Distribution, and Functioning of Different Departments, tracing out the problems related to marketing dept, finding solutions to these problems in short time of period, analyzing, interpretation of results and finally suggesting for overall development of the company.
54

Balance sheet as at 31st march 2011
PARTICULAR SOURCE OF FUNDS
SHARE HOLDERS FUNDS As At 31st March, 2011 As At 31st March, 2010 As At 31st March, 2009
Share capital Share application money Reserve and surplus

DIFFERRED TAX LIABILITY LOANS AND FUNDS
15,00,000.00 0.00 1,01,88,069.87 1,16,88,069.87 7,38,481.00 2,02,25,454.94 6,21,40,197.00 9,47,92,202.81
15,00,000.00 0.00 87,07,507.63 1,02,07,507.63 3,08,419.00 99,78,682.02 5,59,36,339.00 7,64,30,947.65
15,00,000.00 0.00 79,26,962.34 9,42,6962.34 279,643.09 1,25,66,205.02 54908215.00 7,71,81,025.45
Secured Loans Unsecured Loans TOTAL

APPLICATION OF FUNDS
FIXED ASSETS Gross block Less depreciation INVESTMENTS

CURRENR ASSETS,LOANS AND ADVANCES
6,47,11,348.23 2,71,84,855.53 3,75,26,492.70 71,150.00
5,15,17,966.23 2,24,18,316.53 2,90,99,649.70 71,150.00
4,19,23,872.23 1,96,49,874.53 2,22,73,997.70 21,150.00
Stock in Hand Cash on Hand Sundry Debtors Loans and advances Less: Current Liabilities and Provisions NET CURRENT ASSETS
MISCELLANEOUS EXPENSES
5,09,19,132.04 75,37,791.46 1,50,38,954.00 2,44,82,055.00 9,79,77,932.50 4,07,83,3.3972 5,71,94,560.11 9,47,92,202.81
4,39,39,377.40 23,07,415.71 1,61,91,740.00 1,79,93,816.00 8,04,32,349.11 3,31,72,201.16 4,72,60,147.95 7,64,30,947.65
6,12,02,774.43 11,86,490.87 95,51,920.04 1,57,99,921.29 8,77,41,106.63 3,28,55,228.88 5,48,85,877.75 7,71,81,025.45
TOTAL
55
Conclusion
Vega industries private limited was set in the year 1981. Vega is one of the leading helmet organization in India. It is one among very few organization sector of the trade. Vega is based in Belgaum & under the management of CHANDAKS has seen growth at a very steady pace. All their products are in compliance with ISI Quality mark. Vega has a dealership network around 350 across the country. Vega spearheaded by Mr. Dilip Premchand Chandak, MD & CEO of the company has been the driving forces behind the Vega. He is a self-motivator, an inspiration to his brothers college & colleagues. His younger brother Mr. Giridhari. Chandak, Mr.Suhas. Chandak, Mr.Uttam. Chandak, Support him. Top quality helmets the results of constant Research & Development, innovation in design, Hard work of the employees & Emphasis on the current trends in this industry. Within a short span of two and half decades the company has made a place in the market with its superior quality product and services. The company has made variety of product with good customer base. The company in financially sound with a good track of profit the company has spread its operation through the nation and also has profit, the company has spread its operations throught the nation and also has spread its operation globally.
56
Bibliography
1. Manual of Vega Auto Accessories Pvt. Ltd. 2. Text Books Khan & Jain - Financial Management, 2005 , Fourth Edition, Published by Mc Graw Hill, 7.1 -7.72. Kotler & Keller Marketing Management, 2009, 13th Edition, Published by Pearson Prential Hall, 16 18. V S P Rao Human Resource Management , 2008, Published by Excel Books Publishers, 142 154, 397 -427.
3. Website www.vegaautoaccessories.com, last accessed on August 16th, 2012
57

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Vega Auto Accessories Private Ltd.

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Type of Business Type of Production Market area covered

Manufacturing Mass Production Domestic & International

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

National level clients

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Name of the Director

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Mckineseys 7S Framework with reference to Vega Pvt. Ltd. Introduction:

Organization Structur e Organization Strategy Strategy System Routine Process

Capabilities of key people

Management style & culture

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Organization structure of marketing Department

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Sanding: The sanding paper is used to level the shell.

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012

Production Process FRP molding

Inspection Assembling Inspection Packaging

Bapuji Academy of Management and Research, Davanagere

Vega Auto Accessories Private Ltd. 2012