A

SUMMER TRAINING PROJECT REPORT

ON
Page | 1
“Sale Analysis of customers of RICO auto industries”

Submitted In Partial Fulfillment of the Requirement for Bachelor of Business

Administration (2016-19)

Under The Guidance Of

MRS. VANIKA CHUGH

SUBMITTED BY

PRAKASH MANDAL

ENROLLMENT NO

01551401716

BBA (G) 6TH SEMESTER

Batch: 2016-19.

FAIRFIELD INSTITUTE OF MANAGEMENT AND TECHNOLOGY, AFFILIATED TO GURU GOBIND

SINGH INDRAPRASTHA UNIVERSITY, KAPASERA, DELHI-110037

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 STUDENT DECLARATION

Page | 2 I hereby declare that this Summer Training Report titled “Sale Analysis of customers of RICO

Auto Industries” submitted by me to FAIRFIELD INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, Kapashera is a bonafide work undertaken during the VIth Semester by me

and has not been submitted to any other University or Institution for the award of any degree

diploma / certificate or published any time before.

Name: Prakash Mandal

Enroll. No: 01551401716

Course: BBA (G)

Semester: (VIth Semester) (Signature of the Student)

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Page | 3
CERTIFICATE FROM THE GUIDE

This is to certify that the project entitled “Sale Analysis of customers of RICO Auto
Industries” is an original work of Mr. Prakash Mandl of Bachelors of Business
Administration (General) 6th Semester and has been duly completed under my guidance and
supervision.

This work has been done in partial fulfillment of the requirement for the award of the degree of
BBA from Fairfield Institute of Management & Technology affiliated to Guru Gobind Singh
Indraprashta University , Delhi and has not submitted anywhere in any other University for the
award of any degree to the best of my knowledge.

(Signature of Guide)

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Page | 4
ACKNOWLEDGEMENT

It is a pleasure to acknowledge many people who knowingly and unwittingly helped me, to
complete my project first of all let me praise God of all the blessing, which carried me through
all those years.

I am particularly indebted Dr.R.K Garg Director of our college, who inculcated in me utmost
respect for human values and groomed me up in the field of management to take on the
challenges of the competitive world.

First and foremost, I would express my regards to Mr. Kawaljeet Singh for his constant
encouragement and support.

I extend my sincere gratitude to all my teachers and guide who made unforgettable contribution.
Due to their sincere efforts I was able to excel in the work entrusted upon me. Last but not the
least, I am grateful to my parents, my siblings, my friends and all well-wishers for their moral
support and encouragement during the entire period of time.

Name: Prakash Mandal

Enroll. No: 01551401716

Course: BBA (G)

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 (Signature of the Student)

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TABLE OF CONTENTS

S.NO. CONTENT

1. Executive Summary

2. Chapter-1: INTRODUCTION

1.1 About the Industry

1.2 About Company Profile

3. Chapter-2 : LITERATUTE REVIEW

2.1 Literature Review

2.2 About the Topic

4. Chapter-3: RESEARCH METHODOLOGY

3.1 Objective of the study

3.2 Research Methodology of the study

5. Chapter-4: ANALYSIS & INTERPRETATION

6. Chapter-5: FINDINGS & SUGGESTIONS

5.1 Findings

5.2 Suggestions

7. Chapter-6: CONCLUSION

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 8. BIBLIOGRAPHY

9. QUESTIONNAIRE

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EXECUTIVE SUMMARY

Rico Auto Industries, incorporated in 1984–85, is a world–class engineering

company supplying a wide range of high precision fully machined aluminum and
ferrous components and assemblies to automotive OEMs across the globe. Its
consolidated group total turnover is over $285 million (Rs 1100 crore). Rico Auto
Industries Ltd. engages in the manufacture and sale of auto components for two
wheelers and four wheelers. Its services include design, development, tooling,
casting, machining and assembly across ferrous and aluminum products.Today it
has earned a reputation of being a reliable high quality supplier capable of
supplying global volumes and also of an integrated and innovative development
partner capable of developing complex products. It is increasingly positioning
itself as a strategic design development partner which helps it with early sourcing
opportunities. It has achieved critical mass now and estimate that it would continue
to grow its export at a fast pace in the next few years. Oil Pump Assembly, Fuel
System Parts, Lube Oil Filters Heads, Exhaust Manifolds, Turbine Housings,
Center Housings, Back Plates, Crank Cases & Covers, Cylinder Head Covers, Oil
Pan, Intake Manifold Covers, Front Cover, Valve Cove, Side Cover, Balance
Shafts Assembly, Gear Housing, Bearing Caps,Water, Air Connections and
Pressure Plates, Flywheels, Timing Cases, Oil Filter Adaptor, Engine Brackets,
Cylinder Block (Ferrous), Cylinder Head (Aluminum) etc.

I did my internship in the company mentioned above and learned more about the
marketing field practically; also I did some study on the sales of the company to its
customers annually and monthly. The experience and knowledge that I got there
will be useful to me in the future. This summer training project tells all about the
company and the work that I performed and learned there.

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Page | 7

CHAPTER 1

INTRODUCTION

1.1 About the industry

1.2 About company profile

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Page | 8
1.1 About the industry( Automobile industry)
History of the Automobile Industry
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to run on roads. This automobile, in fact, was a self-powered,
three-
wheeled, military tractor that made the use of a steam engine. The range of the
automobile, however, was very brief and at the most, it could only run at a stretch
for
fifteen minutes. In addition, these automobiles were not fit for the roads as the
steam
engines made them very heavy and large, and required ample starting time. Oliver
Evans was the first to design a steam engine driven automobile in
the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between
1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert
Davidson were amongst the first to invent more applicable automobiles, making
use of non-rechargeable electric batteries in 1842. Development of roads made
traveling comfortable and as a result, the short ranged, electric battery driven
automobiles were no more the best option for traveling over longer
distances. The Automobile Industry finally came of age with Henry Ford in 1914
for the bulk production of cars. This leads to the development of the industry and it
first begun in the assembly lines of the car factory. The several methods adopted
by Ford, made the new invention (that is, the car) popular amongst the rich as well
as the masses.
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end of
the Second World War in 1945, the Automobile Industry of other technologically
advanced nations such as Japan and certain European nations gained momentum
and within a very short period, beginning in the early 1980s, the U.S Automobile
Industry was flooded with foreign automobile companies, especially those of
Japan and Germany.

Global Trends
The current trends of the Global Automobile Industry reveal that in the developed

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 countries the Automobile Industries are stagnating as a result of the drooping car
markets, whereas the Automobile Industry in the developing nations, such as,
India and Brazil, have been consistently registering higher growth rates every
passing year for their flourishing domestic automobile markets.
Page | 9 In keeping with the Automobile Industry Trends, the leading
automobile manufacturers are turning to the Asian markets that appear
set to grow immensely over the next decade. The automobile markets in the
U.S., Europe and the Japan have almost matured as a result of saturation and
appear set to decline through the next decade. In contrast, the automobile markets
spread over the entire Asian continent (with the exception of Japan), are constantly
increasing in size and will be the destination for most of the globally leading
automobile manufacturers.

U.S. Automobile Industry

The manufacturers of the U.S. Automobile Industry will have to look to
the developing markets around the globe, if they are to regain their 'numero uno'
position in the World Automobile Industry, that has been recently taken over by
the Japanese automobile manufacturers.
The U.S. Automobile Industry, which is mainly based upon the combined business
of the Detroit Three – General Motors Corporation, Ford Motors Corporation,
and Chrysler LLC which is an unit of DaimlerChrysler AG, has been
surrendering domestic market share to foreign companies in the automobile sector,
especially those belonging to Japan.
The domestic markets in the U.S. being almost saturated, the manufacturers of the
U.S. Automobile Industry need to move out of North America, to the emerging
markets where automobile sales are growing by leaps and bounds.
In addition, the production costs in the U.S. are much higher in comparison to the
rest of the world, and this is the main reason behind the U.S. Automobile Industry
manufacturers closing factories, reducing the number of employees on their payroll
in the U.S. itself.

Asian Market
The Asian countries were also registering growth in the demand for new vehicles.
Indonesia and India showed significant growth in the registration of new vehicles.
According to the UNIDO which follows the international standard for industrial
classification that categorizes the automobile sector as manufacture of motor
vehicles, bodies for motor vehicles and manufacturers of parts and
accessories of motor vehicles and their engines, In the leading developing
countries of Asia the list is topped by Korea ,Iran.
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 Brazil holds the fifth position followed by Indonesia, Turkey, Argentina , Thailand
, Singapore , China , Malaysia , UAE and Colombia.

Indian Automobile Industry

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History Of Indian Automobile Industry

Automobiles were introduced to India in the late 1890's, the manufacturing

industry only took off after independence in 1947. The protectionist economic
policies of the government gave rise in the 1950’s to the Hindustan Motors
Ambassador, based on a 1950’s Morris Oxford, and, are still ubiquitous in the
roads and highways of India.
Hindustan Motors and a few smaller manufacturers such as Premier Automobiles,
Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly until
India's initial economic opening in the 1980's. Tata Motors launches its
first truck in collaboration with Mercedes-Benz. The great Indian
politician Sanjay Gandhi championed the need for a "people's car"; the project
was realized after his death with the launch of a state-owned firm Maruti Udyog
which quickly gained over 50% market share. The Maruti 800 became popular
because of its low price, high fuel efficiency, reliability and modern features
relative to its competition at the time. Tata Motors exported buses and trucks to
niche markets in the developing world.
The liberalization of 1991 opened the flood gates of competition and growth which
have continued up to today. The high growth in the Indian economy has resulted in
all major international car manufacturers entering the Indian market. General
Motors, Ford, Toyota, Honda, Hyundai and others set up manufacturing plants.
Rolls Royce, Bentley and Maybach are examples of the few high end automobile
manufacturers which entered India in the recent years. The Tata Nano is at the
lower end of the price range costing approx US$ 2,500 and Bugatti Veyron at the
other with a price tag of over US$ 2 million.
India's love affair with the automobile is famously embodied in the 1920's Rolls
Royce collections of the rest while maharajas. The growing middle class aspires
for the automobile for its convenience and as a status symbol. Upper middle class
and wealthy car owners employ full-time chauffeurs to navigate the
aggressive and seemingly lawless traffic patterns of most cities. The construction
of expressways such as the Mumbai-Pune expressway has opened up new touring
opportunities. The expected launch of a Formula One circuit in New Delhi is
expected to spark public enthusiasm for a motor sporting industry.

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Page | 11 CURRENT SCENARIO
The Indian auto industry became the 4th largest in the world with sales increasing
9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It
was the 7th largest manufacturer of commercial vehicles in 2017.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of
the companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations
for the near future. Automobile exports grew 26.56 per cent during April-July
2018. It is expected to grow at a CAGR of 3.05 per cent during 2016-2026. In
addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the two-wheeler
and four wheeler market in the world by 2020.

Market Size

Domestic automobile production increased at 7.08 per cent CAGR between FY13-
18 with 29.07 million vehicles manufactured in the country in FY18. During April-
July 2018, automobile production increased 16.69 per cent year-on-year to reach
10.88 million vehicle units.
Overall domestic automobiles sales increased at 7.01 per cent CAGR between
FY13-18 with 24.97 million vehicles getting sold in FY18. Auto sales in July 2018
witnessed a year-on-year growth rate of 7.9 per cent across segments, driven by
46.24 per cent growth in three-wheeler sales in terms of percentage. Premium
motorbike sales in India crossed one million units in FY18. Two leading luxury car
manufacturers, BMW and Mercedes-Benz, recorded their best-ever half yearly
sales in India during January-June 2018. Sales of BMW grew 13 per cent year-on-
year to 5,171 units and sales of Mercedes-Benz grew 12.4 per cent year-on-year to
7,171 units. Sales of electric two-wheelers are estimated to have crossed 55,000
vehicles in 2017-18.

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Page | 12 1.2 COMPANY PROFILE

Rico Auto Industries, incorporated in 1984–85, is a world–class engineering

company supplying a wide range of high precision fully machined aluminum and
ferrous components and assemblies to automotive OEMs across the globe. Its
consolidated group total turnover is over $285 million (Rs 1100 crore).
Rico Is integrated services include design, development, tooling, casting,
machining and assembly across ferrous and aluminum products.
Rico Auto is a dynamic world–class engineering company, supplying a broad
range of high precision fully machined ferrous and aluminium components and
assemblies to automotive OEMs globally. The company enjoys an excellent
reputation for our customer focus, quality and cost–competitiveness. Its
engineering excellence, advanced design and development capabilities, strong
customer relationships and proven scalability, have helped it become a preferred
supplier to OEMs across the globe.
Today it has earned a reputation of being a reliable high quality supplier capable of
supplying global volumes and also of an integrated and innovative development
partner capable of developing complex products. It is increasingly positioning
itself as a strategic design development partner which helps it with early sourcing
opportunities. It has achieved critical mass now and estimate that it would continue
to grow its export at a fast pace in the next few years.
Milestones:
 1984–86 Rico Auto was incorporated (1984–85) and commercial production
started (1986) Aluminum HPDC plant set up in Dharuhera (40 km from Delhi,
India) TC with FCC Japan for manufacturing of Clutch Assembly
 1990–92 Ferrous Casting & Machining plant set up in Gurgaon (20 km from
Delhi, India) Entered International Market as OEM Supplier to MEC Japan.
 1994–96 FCC RICO (50:50) JV formed Started supplying globally to USA &
UK (Eaton, Cummins, GM, etc.)
 1998–00 Second Aluminum HPDC & Machining Plant set up in Gurgaon
 2000–02 Set up full service Engineering, Design & Development function.
Added Customers: Ford, Jaguar, Land Rover Certified TS 16949, ISO 140001,
OHSAS 18001
 2002–04 Enhanced Ferrous & Aluminum Capacity Added Customers:
Caterpillar, Honeywell, Detroit Diesel, Volvo

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  2004–06 R&D Center started Added Customers: Nissan, Tata, Perkins
 2007JV with CONTINENTAL Automotive Systems (Hydraulic Brakes) JV with
JINFEI CHINA (Aluminum Alloy Wheels – 2 Wheelers) Acquired 25 acres land
in Chennai.
Page | 13 2010 – New Plant at Haridwar commences production.
 2011 – New Plant at Sanand, Gujarat commences production.

Rico Auto Industries Limited is engaged in the manufacturing of clutch and crank
case. The Company is engaged in the manufacturing and sale of auto components
for two wheelers and four wheelers. It manufactures and supplies high precision
and machined components and assemblies, both aluminum and ferrous, to original
equipment manufacturers (OEMs). Its products include Oil Pump Assembly, Lube
Oil Filters Heads, Exhaust Manifolds, Turbine Housings, Center Housings, Back
Plates, Oil Pan, Intake Manifold Covers, Front Cover, Valve Cover, Side Cover,
Balance Shafts Assembly, Gear Housing, Steering Knuckles, Main Bearing Caps,
Flywheels, Engine Brackets and Differential Case Housings. Its services include
designing, development and engineering services, research and development,
Testing and Validation, Special Purpose Machines with computer numeric control
(CNC) Controls, Tooling and Prototyping, Casting (Aluminum and Ferrous),
Machining and Assembly, and Packaging and Logistics.

 Visions
To be the preferred supplier to Original Equipment Manufacturers across the
globe.

 Our Strategies

 World Class Quality -: ISO TS 16949, ISO 14001, OHSAS 18001

 Preferred Supplier -: Customer Focused Enterprise, Efficient Account and
Program Management
 Globalization -: Global Teams, Global Presence & Scale
 Integrated Service - Concept to Delivery -: Design, Development & Engineering
Services, R&D, Testing & Validation, (Tooling & Prototyping, Casting
Aluminium )& Ferrous , Machining & Assembly, Packaging & Logistics
 People -: Regular Training, Skill Building & Empowerment and Leadership

 Shareholder Value -: Focus on return on Capital Employed Consistent Dividend

Distribution

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 SWOT ANALYSIS OF RICO AUTO INDUSTRIES LTD

STRENGTHS
Page | 14
 Innovation
 Optimum utilization of scare resources
 Adaptability in relation to changing environment
 Specialization physical assets by providing training
 Future visionary
 Amicable relationship with the shareholder
 Regular dealing with the customers creates a strong bonding
 Perfection in work through cooperation and coordination
 Growth and diversification and expansion of units

WEAKNESSES
 Computation in currency in relation to other economies of world.
 Determining the level of material (minimum and maximum levels).
 Same kind of material codes assigned to different material types
(ROH and HALB) due to which valuation of material cost is being
effect.

OPPORTUNITES

 The company sees opportunities both in the domestic markets and

overseas markets with existing and new customers. To fully explore
opportunities with all customers, the company has developed
dedicated account teams to focus on each customer.
 The Company is implementing a strategic plan to build global scale
and capabilities to meet the requirement of its existing as
well as its new customers.

THREATS
 The rising rate of interest is a matter of concern as it impacts the
automotive demand for vehicles (two wheelers and passenger cars)
and also the cost structure of auto component manufacturers.

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  Availability and cost of power is another area of concern for the
industry. The company has been taking steps in this regard to
improve both the availability and cost of power.
 Rising input costs and volatility in material is a challenge
Page | 15 that impacts margins. The Company is pursuing appropriate
indexation mechanisms with its customers, however there is always a
lag effect.
 China continues to be a challenge at a global level on account of its
prices.
 The Company is exposed to strong competitive pressures both
domestic and overseas.

JOINT VENTURES

 Magna Rico Powertrain Pvt. Ltd. - Oil & Water Pump

Systems
 Rico Jinfei Wheels Ltd. - Alloy Wheels

CORE VALUES

E – ENTREPRENEURSHIP- The power of pursuing new challenges with

speed, flexibility and ownership

T – TEAMWORK- The power of working together

I – INTEGRITY- The power of honesty and transparency

C – COMMITMENT- The power of responsibility, accountability and

ownership

EX - EXCELLENCE -The power of being the best

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Page | 16

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 STOCK INFORMATION
Stock Price - 66.55
Page | 17
52 Week High/ Low - ₹ 110.90/52.40

Market Cap- 900.42 Cr.

Shares Outstanding- 13.53 Cr.

Free Float- 48.94%

KEY MANAGEMENT
 Arvind Kapur -Chairman CEO & Managing Director

 Management Team
 Surendra Singh - President& COO
 Rakesh Sharma -Chief Financial Officer
 R. K. Miglani - Vice President(Operations & Engineering)
 R. Dharna -Vice President (Operations)
 M. K. Jain - Chief Technical Officer
 Sandeep Rajpal - Vice President (Marketing)
 Sachinder Kaul -Vice President (Operations)
 Abhishek Kulshrestha -Vice President (Procurement, Vendor Devp. & After Market)
 Subodh Mall - Associate Vice President (Foundry & Tool Room)
 Neelam Dhaka -General Manager (Human Resource)
 Rajeev Kumar - Associate Vice President (Research & Development)
 Sanjay Sharma - Chief General Manager (Corporate Quality)

 Advisor
 O. P. Aggarwal - Chief Advisor (Finance & Accounts)
 N. K. Sethi - Chief Advisor (Business Planning)

 Company Secretary
 B. M. Jhamb Company Secretary

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 CHAPTER 2
Page | 18

Literature Review

2.1 Literature review

2.2 About the topic

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 2.1 Literature review

Rico Auto Industries Limited (RICO) is an integrated Auto Component Manufacturer

Page | 19 present in the value chain from ‘Design to Delivery. RICO manufactures and supplies
Aluminium and Ferrous Machined Components and Assemblies to Original Equipment
Manufacturers (OEMs) and Tier-1 customers across the globe.

 OPPORTUNITIES

Overall, the Global Automotive Industry is in good shape. Particularly in the US market
where sales and profits are showing market improvements and China, where growth
remains strong. The growth of global OEM sourcing from India and the increased
indigenisation of global OEMs is turning the country into a preferable designing and
manufacturing base. India is expected to become the fourth largest automobiles producer
globally by 2020 after China, US and Japan. Growing working population, rapid
urbanization, boost in rural economy and rising middle class income are expected to
remain key demand drivers. The Companys internal R&D centre gives platform to
innovate and prepare itself for newer technologies and solutions to the OEMs. New
expansions and facilities are coming up in Bawal, Pathredi and Chennai which are in
various stages of completion. The Company continues to focus on developing more
products for clients and after markets. The Companys approach has effectively converted
the current challenges into opportunities.

 THREATS AND ITS MANAGEMENT

The Company is capable to respond swiftly to risks and implement necessary mitigation
activities, supported by the cautious approach undertaken to identify and analyze internal
and external risks and minimize its impact on operations.
The Company has global presence and exposed to risks associated with global
organizations and automotive industry in particular. The impact of protection by various
countries by imposing tariffs can also be a risk factor for the industry. Competition
among industry players is intense as government has already deregulated the sector.
Foreign firms (Hyundai, Ford, Renault - Nissan, Volkswagen, etc.) are increasing their
presence and many more like Kia, MG Rover are planning to enter this high potential
market. Relative to competitors, India is geographically closer to key automotive
markets like the Middle East and Europe. The Company is capable to mitigate the risk as
it has diverse portfolio of products across auto components industry, which helps it to
shift focus to other customers and geographies.

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  FINANCIAL PERFORMANCE (STANDALONE)

Page | 20 1. Revenue
Gross revenue of 1118.25 crores was recorded in the financial year ended 31 st March,
2018 as against revenue of 1042.17 crores in the previous year, a growth of 7.30 per
cent. The total revenue for the financial year ended 31 st March, 2018 includes export
revenue of 268.84 crores as against 253.59 crores in the previous year, a growth of
6.01 per cent.
2. Profits
The Company has earned Profit before Interest, Depreciation and Tax (PBIDT) of
127.99 crores during the financial year ended 31 st March, 2018 over the previous years
PBIDT of 113.65 crores. The Profit before Tax of 63.12 crores and Profit after Tax of
49.64 crores were recorded in the financial year 2017-18. In order to address the
impact of interest rate, material cost, energy cost, availability of power and volatility in
foreign exchange, your Company is taking appropriate measures to improve the
profitability for a sustained growth.
3. Earnings Per Share (EPS)
The Basic and Diluted EPS of 1/- paid-up share is 3.67 and 3.67 respectively for the
financial year ended 31 st March, 2018. The previous years Basic and Diluted EPS was
3.53 and 3.53 respectively on 1/- paid-up share.
4. Dividend
During the financial year ended 31 st March, 2018, your Company has paid an Interim
Dividend @ 40 per cent i.e. 0.40 per Equity Share of 1/- each, amounting to 6.51 crores
including dividend tax of 1.10 crores which was declared by the Board of Directors on
9th February, 2018 and paid on 28 th February, 2018. In addition, your Directors
recommended a Final Dividend @ 40 per cent i.e. 0.40 per Equity Share of 1/- each for
the financial year 2017-18. If approved, the total dividend (interim and final) will
amount to 13.02 crores including dividend tax of 2.20 crores as against a dividend of
75 per cent i.e., 0.75 per Equity Share of 1/- each aggregating to 12.22 crores including
dividend tax of 2.07 crores in the previous year on the same Equity Shar e Capital.

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 5. Reserves and Surplus
The reserves and surplus of the Company stood at 530.73 crores as against 500.44
crores in the previous year. During the financial year 2017-18, no amount was
Page | 21 transferred to general reserves.
6. Loan Funds
Total debt outstanding as on 31st March, 2018 stands at Term Loan & Buyers Credit of
125.99 crores and Working Capital Loan of 127.71 crores aggregating to 253.70 crores
as against Term Loan & Buyers Credit of 120.46 crores and Working Capital Loan of
109.91 crores aggregating to 230.37 crores in the previous year. Low cost funds have
substituted high cost loans, improving the finance cost.

 RISKS AND CONCERNS

The Company is exposed to external and internal risks associated with the business.
The operations of the Company are directly dependent
on the Automotive Industry and the cyclical nature of the industry affects us. General
economic conditions impact the automotive industry and in turn our operations as
well. To counter these risks, we continue to broaden our product portfolio, increase
our customer profile and geographic reach. The Company is exposed to strong
competitive pressures, both domestic and overseas. Companys established reputation,
close customer relationships, ability to provide higher level of engineering, design
support and relentless drive for improvement gives us a competitive edge. We are also
exposed to financial risk from changes in interest rates, foreign exchange rates, and
commodity prices. We are fully aware of risks and are therefore implementing a
structured risk management system. The Company is taking steps to ensure the
effective risk management including risk identification and its mitigation through
proper insurance covers and other strategies.

About the Job Description

21
 I started my internship in marketing department as an intern at RICO Auto Industries
Ltd. on 8th June 2018 in Gurugram. On the very first day I was introduced with the
Vice President of the marketing department Mr. Sandeep Rajpal and the General
Manager Mr. Sanjay Bhatt along with few of the HR department people. I was
originally assigned to work under Mr. Sanjay Bhatt but later during the tenure of the
Page | 22 training I was also introduced and told to consult Mr. Nabh Gupta and Mr. Yash Gupta
(both of them work under Mr. Sanjay Bhatt) regarding any work assigned to me. As I
was a tranee there so during the first two weeks I had classroom study. I was explained
the detailed process of the product formation, all the departments that are there in the
company and their working and many other theoretical terms and processes.

 All the terms and things that I learned during my time of internship were -:
1. Studying of the purchase orders (POs).
2. Proper use of Microsoft Excel.
3. Theoretical terms learned
I. Request For Quotation (RFQ)
II. Lean Management (3 M’s ; Japanese terms)
III. Process of product formation
IV. PDCA Cycle
V. 5S ( Japanese terms)
VI. Budget and its types
VII. Waste
VIII. Cost
4. Sale analysis of BMW and GKN ( monthly and annually) report
5. Annual and monthly volumes (part wise) updating the excel record sheet using
SAP software.
6. Price information update (wolverine company)
7. BMW quarterly price study and update
8. CAT price list study
9. BMW Purchase Orders (POs) excel list formation
10. Company’s parts wise cost study
11. Caterpillar tooling life cycle management information.

2.2 About the topic

22
 Sales analysis is the process of comparing your actual sales to previously stated
company objectives. It is a measurement process used by organizations to evaluate
Page | 23
sales effectiveness and consider improvements.

Sales analysis is used to analyze various aspects of a company's sales. It can be

used to compare sales force performance against quotas, evaluate sales by product
type and make determinations for bonuses and incentives.

Benefits of sales analysis are most connected to the bottom line. Monitoring under-
performing staff and products helps companies avoid wasteful spending and
replace poor revenue drivers with better performing people and products .

IMPORTANCE
Analysing your sales over several years enables you to establish sales patterns.
This will assist you in setting your sales budgets in the future.
It is especially important to include the analysis when you are developing your
marketing plan each year.
Your sales analysis will also help you identify where your strengths lie within your
product or service range.
Your sales and marketing activities can then be allocated accordingly to support
the products or services that represent the greatest opportunity for future profitable
growth.
For example, if one product or service represents the majority of your sales you
may need to allocate enough marketing and sales support to continually protect it
from your competition.
You will also be able to compare your sales performance with your market.

23
 CHAPTER 3
Page | 24

Research Methodology

3.1 Objective of the study

3.2 Research Methodology of the study

3.1 Objective of the study

24
 I chose to work with Rico Auto Industries Ltd... During this internship I have learnt many new
skills. Before internship I had only theoretical knowledge about work in organization but now I
have practical experience of working in organization.

Now I have knowledge about the organizations working environment and how organizations
Page | 25 work and achieve their goals and objectives.

The Internship has to give me the understanding of business and also about the elements of
strategic thinking, planning and implementation and how these things are applied in a real world
organization environment.

Following are the objectives that I have in my mind before working as an intern.

 To improve communication skills.

 To analyze the business situation.
 To establish high standard in professionalism.
 To learn more than the theoretical knowledge.
 To learn making of purchase orders of customers companies.
 To apply the theoretical knowledge in actual organization.
 To compare practical aspects with theoretical aspects.
 To make quick decisions in real situation.
 To promote my personal knowledge and professional preparation for future.
To properly integrate my theoretical knowledge and practical work.
 To plan for the future of oneself and learn how to adjust in an organization.
 To get knowledge of opportunities and threats while entering into an
organizations.
 To get exposure to do a work in an organization and also know about
organizational behavior and ethical rules and regulations.

3.2 Research Methodology of the study

25
  Introduction
This chapter deals with the methodology adopted in conducting the study. The chapter is
Page | 26 organized as follows; research design, sources of data, population and sampling, research
instrument (data collection technique), administration of instrument and analysis of data.
The project is a systematic presentation consisting of the enunciated problem, formulated
hypothesis, collected facts of data, analysed facts and proposed conclusions in form of
recommendations. The data has been collected from the primary sources.

3.2.1. Research Design

The research was based on assessing customer satisfaction. The design was a exploratory study
which used closed observation in analysing customer satisfaction.

The study was based on the use of questionnaires. These approaches were used because they
were satisfactory tools for collecting data for the sample population to investigate the topic under
study.
A research design is the arrangement of the condition for collection my in procedure.
A research design is the specification of methods and procedure for acquiring the information
needed to structure or to solve problems. It is the overall operation pattern or framework of the
project that stipulates what information is to be collected from which source and be what
procedures.

What is study about?

What is study being made?

Where will the study be carried out?

What type of data is required?

Where can the required data be found?

What will be the sample design?

Technique of data collection.

How will data be analysed?

26
 3.2.2 Sources of Data
Both primary and secondary source of data were used in conducting the research.

Page | 27 3.2.2.1 Primary Sources

In getting primary data there are several approaches available to gathering data. In order to
collect reliable and valid information, the researcher go to the market place an d collect data
from different user. The method used in collecting the primary data was questionnaire.
Questionnaires
The purpose of using questionnaire was to identify and assess the affect of customer satisfaction .
A set of questionnaire was prepared with open – ended questions.

3.2.2.2. Secondary Sources

The study also made use of secondary data in collecting information. The sources of the
secondary data include books, internet search, articles, and journals among others. This helped to
identify how others have defined and measured key concepts, the data sources that of others used
and this helped to discover how this research project is related to other studies.

3.3.3. Sampling Techniques

The simple random sampling technique was used to select respondents from the
market. This is basically because the population will have an equal chance of being
selected. Significantly, the purposive sampling technique, which is a non-
probability sampling technique, was used to select respondents. This was because
the researcher wanted to deal with only typical cases based on the objectives of the
study.

3.3.4. Data Collection Instrument

27
 The researcher used questionnaire. The researcher prepared the questionnaires to be responded
by the consumers. The questions were designed to make the purpose of the study successful after
the results have been ascertained. This instrument gave expected information about the consumer
behaviour.

Page | 28
3.3.5. Data Analysis
The collected data were statistically analysed, using the pie-chart and tables. Representations like
tables and charts were used to ensure easy and quick interpretation of data. Responses were
expressed in percentages. Data from the completed questionnaire were checked for consistency.
The items were grouped based on the responses given by the respondent. This method was used
because it is the best instrument to identify, compare, describe and reach a conclusion.

28
Page | 29
CHAPTER 4

Data Analysis and

Interpretation

29
Page | 30

QUESTIONNAIRE

QUES 1 In how many foreign and Indian cities RICO auto industries supply their
parts?

A) 10
B) 12
C) 9
D) Not sure

30
 Ans. 12

Page | 31

INTERPRETATION:

It is interpreted that RICO auto does not only have its branches in india but also in
foreign places and has a big setup in the market.

QUES 2 Do you loan or rent vehicles to your customers?

A) Yes B) No

31
 sales

Page | 32

yes
no

INTERPRETATION:

It is interpreted that 45% people said yes that they loan vehicles to customers while
55% people said no that they do not loan vehicles to the customers.

QUES 3: Which product has more supply- ferrous products or aluminum

products?

A) Ferrous products B) Aluminum products

32
 Sales

Page | 33

ferrous
aluminum

INTERPRETATION:

It is interpreted that both the ferrous and aluminum products are equally
supplied

QUES 4 Raw material and product cost i.e input cost is low or high?

A) High B) low

33
 Sales

Page | 34

high
low

INTERPRETATION:

It is interpreted that 60% people believe that input cost is high while 40% people
believe that it is low.

QUES 5 Do you have established stores in the market for aftermarket parts?

A) Yes B) no

34
 ANS. YES

Page | 35
Sales

yes
no

INTERPRETATION:

It is interpreted that there are few aftermarket parts selling stores of rico auto
industries for the aftermarket of products.

QUES 6 Do you test your auto parts before transporting them to the customers?

A) Yes B) No

35
 Sales
Page | 36

yes
no

INTERPRETATION:

It is interpreted that every person in rico auto industries agrees that all the aut parts
are checked before transporting them to the customers.

QUES 7 how are customer key control in RICO Auto Industries?

A) Regular service B) complaining cells

36
 Sales
Page | 37

regular service
complaining cells

INTERPRETATION:

It is interpreted that 60% people believe that regular service is given while 40%
people believe that complaining cells are used.

QUES 8 Enter the total number of experience in principle sale/ trade?

A) More than 10 years B) less than 10 years

37
 ANS More than 10 years

Page | 38

INTERPRETATION:

It is interpreted RICO Auto industries have more than 10 years of experience in the
auto parts making industry

QUES 9Are there currently service cost charged?

A) Yes B) no

38
 Sales

Page | 39

yes
no

INTERPRETATION:

It is interpreted that 40% believe that service cost is charged from customers while
60% believe that it is not charged from the customers

QUES 10 A well-kept documentation is performed?

A) Yes B) no

39
 Sales

Page | 40

yes
no

INTERPRETATION:

It is interpreted that 90% people said that proper documentation is done while 10%
people said that it is not done

CHAPTER 5
40
Page | 41

FINDINGS AND
SUGGESTIONS

FINDINGS

41
Page | 42

 RICO auto industries has much more experience in this

industry than many other companies
 Proper documentation of records and work is done in RICO
auto industries.
 Customers of RICO auto industries are well satisfied by the
services and work of the company.
 They provide good quality products to their customers
 Input cost of their product is high
 Rico group has big scope to achieve their goals in the
future

SUGGESTIONS

42
Page | 43

 RICO auto industries should maintain its reputation in the market

by also providing after sales services.
 They should try to use less money in the input cost of the products
 They should provide more of regular services than complaining
cells
 They should have more established store in the market to make
people know them more in the market

43
Page | 44
CHAPTER 6

Conclusion

44
 CONCLUSION:-

Page | 45 RICO Auto Industries is a company that manufactures durable and high quality
auto parts for many reputed automobile manufacturing companies, and this
reputation should be withheld by the management. Their quality and hard work
will help them in maintaining their reputation along with increasing their sales. The
management should ensure that the current market share is increased through new
innovations, thus not giving enough space to its competitors. Since RICO auto
industries is competing in the massive worldwide market, it is imperative for the
company to maximize on the promotion of its products thus the buyers will be
fully aware of the RICO products

45
Page | 46

BIBLIOGRAPHY

46
  https://www.google.co.in/search?q=organisation+chart+of+rico+auto+indust
ries+in+gurgaon+headquarters&oq=organisation+chart+of+rico+auto+indus
tries+in+gurgaon+headquarters&aqs=chrome..69i57.36088j0j7&sourceid=c
Page | 47
hrome&ie=UTF-8
 https://www.ricoauto.com/files/FactSheet.pdf
 https://www.ricoauto.com/vision-strategy.html
 https://www.google.co.in/search?q=rico+auto+industries+ltd+wikipedia&sa
=X&ved=0ahUKEwjjz-
m83JfeAhULUI8KHYulAS0Q1QIIpwEoAg&biw=1360&bih=626
 https://www.ndtv.com/business/stock/rico-auto-industries-
ltd_ricoauto/reports
 https://www.ibef.org/industry/india-automobiles.aspx
 https://www.google.co.in/search?q=indian+automobile+industry+overview
&oq=indian+automobile+industry+overview&aqs=chrome..69i57j0l5.21773
j0j7&sourceid=chrome&ie=UTF-8
 http://www.indianmirror.com/indian-industries/automobile.html

47
Page | 48

QUESTIONNAIRE

48
 Name: Gender:

Age: Marital status:

Page | 49

QUES 1 In how many foreign and Indian cities RICO auto industries supply their
parts?

A) 10
B) 12
C) 9
D) Not sure

QUES 2 Do you loan or rent vehicles to your customers?

A) Yes B) No

QUES 3: Which product has more supply- ferrous products or aluminum

products?

A) Ferrous products B) Aluminum products

QUES 4 Raw material and product cost i.e input cost is low or high?

A) High B) low

QUES 5 Do you have established stores in the market for aftermarket parts?

A) Yes B) no

QUES 6 Do you test your auto parts before transporting them to the customers?

A) Yes B) No

49
 QUES 7 how are customer key control in RICO Auto Industries?

A) Regular service B) complaining cells

Page | 50

QUES 8 Enter the total number of experience in principle sale/ trade?

A) More than 10 years B) less than 10 years

QUES 9Are there currently service cost charged?

A) Yes B) no

QUES 10 A well-kept documentation is performed?

A) Yes B) no

50
Page | 51

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