CHAPTER-1

INTRODUCTION
INTRODUCTION
As I chosen the topic training and development of the employees in
consumer durable industries it was a short study about the training and
development of the employees, the aim of the study is to understand the concept
of training and development of the employees within the organization.
Training refers to improve skills, or add to the existing level of
knowledge so that employees is better equipped to do his present job, or to
prepare him for higher position with increased responsibilities. However
individual growth is not and ends in itself. Organizational growth needs to be
measured along with individual to the teaching or learning activities done for
the primary purpose of helping members of an organization acquire and apply
the same. Broadly speaking training is the knowledge and skill of an employee
for doing a particular job.
In today’s scenario change is the order of the day and the only way to
deal with it is to learn and grow. Employees have become central to success or
failure of an organization they are the cornucopia ideas. So, its high time the
organization realize that “train and retain is the mantra of new millennium”
OBJECTIVE OF THE STUDY
The broad objective of the study of training policies in consumer durable
product industries is to study the impact of training on the overall skill
development of workers. The specific objective of the study is: -
 To examine the effectiveness of training in overall development of skills of
workforce.
 To examine the impact of training on workers.
 To study the changes in behavioural pattern due to training.
 To find out new methods of training and development in consumer durable
industries.
 To compare the cost effectiveness in implementing training programmes.
SCOPE OF THE STUDY
In this project I have tried to present and know about the training and
development programs in consumer durable industries (Blue star, Samsung, LG,
Hitachi, CGC electronic private limited).
The scope of training and development can be explained with the help of
following points: -
 Through their feedback.
 Development of employees through the various Exact positions of
performance of employees training and development programs.
  Development altered of unbiased treatment to all employees.
IMPORTANCE OF THE STUDY
Training offers innumerable benefits to both employees and employers. It
makes the employee more productive of training can be studied under the
following heads.
 Trained workers can work more efficiently. They use machines, tools, and
materials in a proper way. Wastage is thus eliminated to a large extent.
 Training makes employees more loyal to an organization. They will be less
inclined to leave the unit whether there are growth opportunities.
 Training enables employees to secure promotions easily. They can realize
their career goals comfortably.
 Training helps an employee to move from one organization to another
easily. He can be more mobile and pursue career goals actively.
LIMITATION OF THE STUDY
 Due to the unprecedented pandemic, with social distancing norms and
containment zones it is difficult to visit an organisation physically.
 Time frame of 30 days is not sufficient to draw all the information
regarding the project.
 I did not get my hand on practical exposure to the corporate culture and
professional knowledge.
 The data is collected from a secondary source, so this may not be reliable.
 CHAPTER-2
TRAINING AND DEVELOPMENT
AN INTRODUCTION
TRAINING AND DEVELOPMENT AN INTRODUCTION
In this changing and globalization environment organization have to
upgrade their work methods, works norms, technical and managerial skills, and employees
motivation to face the challenges due to which an employee training is most important in the
changing environment because a need for highly specialized workmen is felt in the global
way. Organisation and individual should develop and progress simultaneously for their
survival and attainment of mutual goals. So every modern management has to develop the
organisation through human resource development. Employee training is the important sub-
system of human resource development.
Training is an important activity in many organizations. we generally see that a new
machines is installed in a factory, it is operated on the trial basis before going into actual
production. After an employee is selected, placed and introduced he or she must be provided
with training facilities. Training is the act of increasing the knowledge and skill of an
employee for doing a particular job. Training is a short-term educational process and utilizing
a systematic and organised procedure by which employees learn technical knowledge and
skills for a definite purpose.
Training improves, changes, moulds the employee’s knowledge, skill, behaviour,
aptitude, and attitude towards the requirements of the job and organisation. Training refers to
the teaching and learning activities carried on for the primary purpose of helping members of
an organisation, to acquire and apply the knowledge, skills, abilities and attitudes needed by a
particular job and organisation.
TRAINING
Training is a short term process utilizing a systematic and organized procedure by which non
managerial person acquire technical knowledge and skill for a definite purpose. It refers to
instruction in technical and mechanical operation like operation of some machines. It is
designed primarily for non managers, short duration and specific job related purposes.
NEED FOR TRAINING:
Every organisation or established should provide training to all employees irrespective
of their qualification, skill, suitability for the job etc. Thus, no organisation can choose
whether or not to train employees.
Training is not something that is done once to new employees; it is used continuously
in every well run establishment. Further, technological changes, automation, require up-
dating the skills and knowledge. As such an organisation has to retrain the old employees.
An employee’s specification may not exactly suit to the requirements of the job and the
organisation irrespective of his past experience, qualification, skills, knowledge etc. Thus
every management finds deviations between employee’s present specifications and the job
requirements and organisational needs.
The primary goal or most of the organisations is their viability is continuously
influenced by environmental pressure. If the organisation desires to adapt these changes, first
it has to train the employees to impart specific skills and knowledge in order to enable them
to contribute to the organisational efficiency and to cope with the changing environment.
Every organization in order to survive and to be effective should adopt the latest
technology, i.e. mechanization, computerization and automation. Adoption of latest
technological means and methods will not be complete until they are manned by employees
possessing skill to operate them. So, organisation should train the employees to enrich them
in the areas of changing technical skills and knowledge from time to time.
This creates the complex problems of co-ordination and integration and integration of
activities adaptable for and adaptable to the expanding and diversifying situations. This
situation calls for training in the skills of co-ordination, integration and adaptability to the
requirements of growth, diversification and expansion. Companies constantly search for
opportunities to improve organisational effectiveness.
Trends in approach towards personnel management has changed from the commodity
approach to partnership approach, crossing the human relations approach. So training in
human relations is necessary to deal with human problems and to maintain human relations.
Training is also necessary when the existing employee is promoted to the higher level
in the organisation and when there is some new job or occupation due to transfer, techniques
or technology.

The need for training also arises to:

o Increase productivity.

o Improve quality of the product/service.

o Help a company to fulfils it future personnel needs.

o Improve organisational climate.

o Improve health and safety.

o Prevent obsolescence.

o Effect the personal growth.

o Minimize the resistance to change.

The factors discussed above are mostly external factors and they are beyond the personnel

manager’s control. These factors often determine the success of training objectives as shown.

Factors Purposes

Technological Advance Improved Productivity

Organisational Complexity Prevention of Obsolescence

Job Requirements Preparation for Higher Level Jobs

Human Relations Top Management Support

Learning Principles Improved Morale

Personnel Functions

TRAINING OBJECTIVES:

Generally line managers ask the personnel manager to formulate the training policies.

The Personnel Manager formulates the following training objectives in seeping with the

Company’s goals and objectives:

 To prepare the employee both new and old to meet the present as well as the

changing requirements of the job and the organisation.

 To prevent obsolescence.

 To impart the new entrants the basic knowledge and skill they need for an

intelligent performance of definite job.

 To prepare employees for higher level tasks.

 To assist employees to function more effectively in their present positions by

exposing them to the latest concepts, information and techniques and developing

the skills they will need in their particular fields.

 To build up a second line of competent officers and prepare them to occupy

more responsible positions.

  To broaden the minds of senior managers by providing them with opportunities

for an interchange of experiences within and outside with a view to correcting

the narrowness of outlook that may arise from over specialistaion.

 To develop the potentialities of people for the next level job.

 To ensure smooth and efficient working of a department.

 To ensure economical output of required quality.

 To promote individual and collective morale, a sense of responsibility,co-

operative attitudes and good relationships.

TRAINING METHODS:

As a result of research in the field of training, a number of programmes are available.

Some of these are new methods, while others are improvements over the traditional methods.

The training programmes commonly used to train operative and supervisory personnel are

discussed below. These programmes are classifield into on the job and off the job training

programmes.

On-the-job Methods Off-the-job Methods

* Job rotation * Vestibule training

* Coaching * Role playing

* Job instruction or * Lecture Methods

* Training through * Conference or Discussion

*Step-by-step * Committee Assignments

On-The – Job Training Methods:

 This type of training, also known as job instruction training, is the most commonly
used method. Under this method, the individual is placed on a regular job and taught the skills
necessary to perform that job. The trainee learns under the supervision and guidance of a
qualified worker or instructor. On the job training has the advantage of giving first hand
knowledge and experience under the actual working conditions. On-the-job training methods
include job rotation, coaching, job instruction or training through step-by-step and committee
assignments.
JOB ROTATION: This type of training involves the movement of the trainee from one job to
another. The trainee receives job knowledge and gains experience from his supervisor or
trainer in each of the different job assignments. Though this method of training is common in
training managers for general management positions, trainees can also be rotated from job to
job in workshop jobs. This method gives an opportunity to the trainee to understand the
problems of employees on other jobs and respect them.
COACHING: The trainee is placed under a particular supervisor functions as a coach in
training the individual. The supervisor provides who feedback to the trainee on this
performance and offers him some suggestions for improvement. Often the trainee shares some
of the duties and responsibilities of the coach and relieves him of his burden. A limitation of
this method of training is that the trainee may not have the freedom or opportunity to express
his own ideas.

THE TRAINING PROCEDURE:

One of the parts of this programme was the job instruction-training course, which was

concerned with how to teach? The training procedure discussed below is essentially an

adoption of the job instruction training course, which has been proved to have a great value.

(a) Preparing the Instructor: The instructor must know both the job to be taught and how

to teach it. The job must be divided into logical parts so that each can be taught at a

proper time without the trainee-losing plan.

 Know the job or subject he is attempting to teach,

 Have the aptitude and abilities to teach,

 Have willingness towards the profession,

 Have a pleasing personality and capacity for leadership,

 Have the knowledge of teaching principles and methods,

 Be a permanent student, in the sense that he should equip himself with the latest concepts

and knowledge.

(b) Preparing the Trainee: As in interviewing, the first step in training is to attempt to
place the trainee at ease. Most people are somewhat nervous when approaching an
unfamiliar task.
(c) Getting Ready to Teach: This stage of the programme is class hour

 Planning the programme.

 Preparing the instructor’s outline.

 Do not try to cover too much material.

 Keep the session moving along logically.

 Discuss each item in depth.

 Repeat, but in different words.

 Take the material from standardised texts when it is available.

(d) Presenting the Operation: There are various alternative ways of presenting the

operation, viz., explanation, demonstration etc. An instructor mostly uses these

methods of explanation.

 Explain the sequence of the entire job.

 Do the job step-by-step according to the procedure.

 Explain the step that he is performing.

  Have the trainee explain the entire job.

(e) Try out the Trainee’s Performance: As a Continuation of the presentation sequence

given above, the trainee should be asked to start the job or operative procedure.

(f) Follow-up: The final step in most training procedures is that of follow-up. When

people are involved in any problem or procedure.

PRINCIPLES OF TRAINING:

Motivation: As the effectiveness of an employee depends on how well he is

motivated by management, the effectiveness of learning also depends on motivation. The

trainee will acquire a new skill or knowledge thoroughly and quickly if he or she is highly

motivated. Thus, the training must be related to the desires of the trainee.

It has been found by various research studies that there is a relation between learning

rapidly and effectively and providing right information specifically, and as such the trainer

should not give excessive information or information that can be misinterpreted. The trainee

also wants to learn a new skill without much difficulty and without handing too much or

receiving excessive information or wrong type of progressive information. So, the trainer has

to provide only the required amount of progressive information specifically to the trainee.

The effectiveness of the trainee in learning new skills or acquiring new knowledge

should be reinforced by means of rewards and punishments. Punishments are also called

negative reinforcements. Management should take care to award the successful trainees.
 A trainee should actively participate in the training programmes in order to make the

learning programme an effective one. Continuous and long practice is highly essential for

effective learning. It is not clear whether it is best to teach the complete job at a stretch or

dividing the job into parts and teaching each part at a time. If the job is complex and requires

a little to long to learn, it is better to teach part of the job separately and then put the parts

together into an effective complete job.Difference: Individual training is costly, and group

training is economically viable and advantageous to the organisation. But individuals very in

intelligence and aptitude from person to person. So the trainer has to adjust the training

programme to the individual abilities and aptitude.

Areas of Training:

Organisations provide training to their employees in the following areas:

1) Company policies and procedures.

2) Training in Specific Skills.

3) Human relations Training.

4) Problem solving Training.

5) Managerial and Supervisory Training.

6) Apprentice Training.

 Company policies and procedures: This area of training is to be provided with a view to

acquainting the new employee with the Company Rules, Practices, Procedures, Tradition,

Management, Organisation Structure, Environment Product Services offered by company etc.

 This acquaintance enables the new employee to adjust himself with the changing

situations. Information regarding company rules and policies creates favorable attitudes of

confidence in the minds of new employee about the company and its products/services, as

well as it develops in him a sense of respect for the existing employees of the company and

the like.

The company also provides first hand information to the employee about the skills needed by

the company, its development programmes, quality of product/services and the like. This

enables the new employees to know his share of contribution to the organization’s growth and

development.

 Training in Specific Skills: This area of training is to enable the employee more effective

on the job. The Trainer trains the employee regarding various skills necessary to do the actual

job. For example, the clerk in the bank should be trained in the skills of making entries

correctly in the edge, skills and arithmetical calculations, quick comparison of figures, entries

and the like. Similarly, the technical officers are to be trained in the skills of project appraisal,

supervision, follow-up and the like.

 Human Relations Training: Human relations training assumes greater significance in

organizations as employees have to maintain human relations not only with other employees

but also with their customers. Employees are to be trained in the areas of self-learning,

interpersonal competence group dynamics, perception, leadership styles, motivation,

grievance redressal, disciplinary procedure and the like. This training enables the employees

for better team work, which leads to improved efficiency and productivity of the organization.
 Problem Solving Training: Most of the organisational problems are common to

the employees dealing the same activity at different levels of the organisation. Further some

of the problems of different managers may have the same root cause. Hence, management

may call together all managerial personnel to discuss common problems so as to arrive at

effective solutions across the table. This not only helps in solving the problems but also

serves as a forum for the exchange of ideas and information that could be utilised. The trainer

has to organise such meetings, train and encourage the trainees to participated actively in such

meetings.

 Managerial and Supervisory Training: Even the non-managers sometimes perform

managerial and supervisory functions like planning, decision-making, organising,

maintaining inter-personal relations, directing and controlling. Hence management has to

train the employee in managerial and supervisory skills also.

 Apprentice Training: The Apprentice Act, 1961 requires industrial units of specified

industries to provide training in basic skills and knowledge in specified trades to educated

employees /apprentices with a view to improving their employment opportunities or to enable

them to start their own industry. This type of training generally ranges between one year to

four years. This training is generally used for providing technical in the areas like trades,

crafts etc.

ADVANTAGES OF TRAINING:
 The contributions of imparting training to a Company should be readily apparent. The

major values are:

 Increased Productivity: An increase in skill usually results in an increment in both quality

and quantity of output. However, the increasingly technical nature of modem jobs

demands systematic training to make possible even minimum levels of accomplishment.

 Heightened Morale: Possession of needed skills help to meet such basic human needs as

security and ego satisfaction. Collaborate personnel and human relations programmes can

make a contribution toward morale, but they are hollow shells if there is no solid core of

meaningful work down with knowledge, skill and pride.

 Reduced Supervision: The trained employee is one who can perform with limited

supervision. Both employee and supervisor want less supervision but greater independence

is not possible unless the employee is adequately trained.

 Reduced Accidents: More accidents are caused by deficiencies in people than by

deficiencies in equipment and working conditions. Proper training in both job skills and

safety attitudes should contribute toward a reduction in the accident rate.

 Increased Organisational Stability: The ability of an organisation to sustain its

effectiveness despite the loss of key personnel can be developed only through creation of a

reservoir of employees. Flexibility, the ability to adjust to short-run variations in the

volume of work requires personnel with multiple skills to permit their transfer to jobs

where the demand is highest.

IMPORTANCE OF TRAINING:
 Training Benefits the Organisation.

 Leads to improved profitability and/or more positive attitudes toward profits

orientation.

 Improves the job knowledge and skills at all levels of the organisation.

 Improves the morale of the workforce.

 Helps people identify with organisational goals.

 Helps create a better corporate image.

 Aids in understanding and carrying out organisational policies.

 Provides information for future needs in all areas of the organisation.

 Organisation gets more effective decision-making and problem solving.

 Helps keep costs down in many areas, e.g. production, personnel, administration, etc.

 Develops a sense of responsibility to the organisation for being competent and

knowledgeable.

 Improves labour-management relations.

 Benefits to the Individual, Which in Turn Ultimately Should Benefit the Organisation:

 Helps the individual in making better decisions and effective problem solving.

 Through training and development, motivational variables of recognition, achievement,

growth, responsibility and advancement are internalised and operationalised.

 Aids in encouraging and achieving self-development and self-confidence.

 Helps a person handle stress, tension, frustration and conflict.

 Provides information for improving leadership knowledge, communication skills and

attitudes.

 Increases job satisfaction and recognition.

 Moves a person toward personal goal while improving interactive skills.

 Satisfies, personal needs of the trainer (and trainee).

 Provides the trainee an avenue for growth and a say in his/her own future.

 Develops a sense of growth in learning.

 Benefits in Personnel and Human Relations, Intra and Inter group Relations and Policy

Implementation:

 Improves communication between groups and individuals.

 Aids in orientation for new employees and those taking new jobs through transfer or

promotion.

 Provides information on equal opportunity and affirmative action.

 Provides information on other governmental laws and administrative policies.

 Improves interpersonal skills.

 Makes organization policies, rules and regulations viable.

 Improves morale.

 Builds cohesiveness in groups.

 Provides a good climate for learning, growth, and co-ordination.

TRAINING THE TRAINERS:

 When an instructor is required for a training programme, the person should have a

comprehensive understanding of the training material, the subject matter, and the techniques

necessary for the effective presentation of the material. The roles of instructors can very

widely depending upon the training developer’s design for the instructor. Typical roles for the

instructor are those of traditional lecturer, administrator, facilitators, expert, and feedback

provider. An instructor may assume all the roles in a single programme or session or may rely

solely on one for a training programme. Trainer Training, Therefore, must include the entire

array of activities from classroom demeanor to discipline. Formal training for trainer

generally takes a three-fold course training principles and practices; techniques of classroom

behavior; and observation and practice; in the classroom. Trainer must also be taught the

methods used for providing feedback. In a simple stimulus-response situation, such as in the

target shooting example where shooter must know where he hit in previous round to improve,

the feedback is simple. The trainer must suppress value judgment in giving feedback.

Feedback must be objective, unless the task is to please another person.

CHOOSING TRAINERS AND TRAINEES:

Great care must be exercised in choosing effective instruction or trainees, for in a

very real sense; the success or the training programme is dependent on the persons who

perform the training task. These are little doubt that trainers themselves need to be trained and

a group of trained trainers could from the nucleus around which the entire trainer effort of the

company can be built.

DEVELOPMENT
In contrast a development is along term process utilizing a systematic and organized

procedure by which managerial personnel get conceptual and theoretical knowledge it is not

technical knowledge or skills but philosophical theoretical educational concept. It is

considered more general than training and more oriented to individuals needs in addition to

organized needs and it is most often aimed towards management people. Usually the intent of

development is to provide knowledge and understanding function more effectively such as

problem solving decision making and relating to people

Development:

Successful candidate placed on the job need training to perform their duties

effectively. Workers must be trained to operate machines, reduce scrap and avoid accidents. It

is not only the workers who need training. Another component of a training and development

programme is development which is less skill oriented but stresses on knowledge about

business environment, management principles and technique, human relations, specific

industry analysis and the like is useful for better management of a company. Supervisors,

managers and executives also need to be developed in order to enable them to grow and

acquire maturity of though and action.

Training and development constitute an ongoing process in an organisation. In simple terms,

training and development refer to the importing of specific skills abilities and knowledge to

an employee.
 THE TRAINING PROCESS

Important steps in a typical training process:

 ORGANISATIONAL OBJECTIVE

ASSESSMENT OF TRAINING
NEEDS

ESTABLISHMENT OF TRAINING
GOALS

DEVISING OF TRAINING
PROGRAMME

IMPLEMENTATION OF
TRAINING PROGRAMME

EVALUATION OF RESULT

EVALUATI
ON OF TRAINING PROGRAMME:

The specification of values forms a basis for evaluation. The basis of evaluation and

the mode of collection of information necessary for evaluation should be determined at the

planning stage. The process of training evaluation has been defined as “any attempt to obtain

information of the effects of training performance, and to assess the value of training in the

light of that information.” Evaluation leads to controlling and correcting the training
programme. Hamblin suggested five levels at which evaluation of training can take place, via

reactions, learning, job behavior, organization and ultimate value.

I. Reaction: Training programme is evaluated on the basis of trainee’s reactions to the

usefulness of coverage of the matter, depth of the course content, method of

presentation, teaching methods etc.

II. Learning: Training programme, trainer’s ability and trainee ability are evaluated on

the basis of quantity of content learned and time in which it is learned and learner’s

ability to use or apply, the content he learned.

III. Job Behaviour: This evaluation includes the manner and extent to which the trainee

has applied his learning to his job.

IV. Organisation: This evaluation measures the use of training, learning and change in

the job behavior of the department/organisation in the form of increased productivity,

quality, morale, sales turnover and the like.

V. Ultimate Value: It is the measurement of ultimate result of the contributions of the

training programme to the Company goals like survival, growth, profitability etc., and

to the individual goals like development of personality and social goals like

maxmising social benefit.

Essential Ingredients for a Successful Evaluation:

There are three essential ingredients in a successful evaluation. They are:

(a) Support throughout the evaluation process. Support items are human resources, time,

finance, equipment and availability of data source, records etc.

 (b) Existence of open communication channels among top management, participants and

those involved in providing data etc.

(c) Existence of sound management process.

Bases of Evaluation:

Training programme can be evaluated on the basis of various factors like production factor,

general observation, human resource factor, performance, tests, cost-value relationship etc.

Production Factors: In operative training, the prime measure of worth is that of productivity.

Productivity rates covering both quantity and quality are good indicators of the values of

training. In most business situations these rates will have to be obtained before and after

training. In an experimental situation, a control group that does not receive training could be

compared with the one that does in order to ascertain the effect of training. Management will

generally look first at production and wastage rates to determine the worth of operative

training. The other production factors are decrease in unit time and unit cost of production

and reduction in space or machine requirements.

General Observations: General observation should not be overlooked as a means of training

evaluation. The immediate supervisor is often a good judge of the skill level of his

subordinates. For on-the-job training programmes, the supervisor is, in effect, the judged of

his or her own efforts. If the supervisor is treated as a part of the professional management of

the organisation and is properly selected and trained, this self-analysis and appraisal can be

quite accurate and objective. The efficient supervisor observes accurately the level of skill
and knowledge acquired by the trainee during the training programme. Me also observe how

effectively the trainees apply the acquired skill and knowledge to the present and future jobs.

Human resource Factor: Training programme can also be evaluated on the basis of

employee satisfaction, which in turn can be viewed on the basis of:

(a) Decrease in employee turnover.

(b) Decrease in absenteeism.

(c) Decrease in number and severity of accidents.

(d) Betterment of employee morale.

(e) Decrease in grievance and disciplinary cases.

(f) Reduction in time to earn piece rates.

(g) Decrease in number of discharges or dismissals.

Performance Tests: In the immediate sense, the specific source of training can be evaluated

in terms of written and performance tests. The test is supported by a sample of what the

trainee knows or can do. Successful accomplishment of the tests would indicate successful

training. But the true test is whether or not what has been learned in training is successfully

transferred and applied to the job. It is dangerous to rely upon tests alone to demonstrate the

true value of training. Performance appraisal on the job before and after training may be

supplemented to the tests.

Cost-Value Relationship: Cost factor in training should be taken into consideration in

evaluating the training effectiveness. Cost of various techniques of training and their value in
the form of reduced learning time, improved learning and higher performance can be taken

into account. Cost of training includes cost of employing trainers, and trainees, providing the

means to learn, maintenance and running of training centers, wastage, low level of

production, opportunity cost of trainers and trainees etc. The value of the training includes

increased value of human resources of both the trainee and trainer and their contribution to

raise production, reduce wastage, breakage, minimization of time requirement etc.

Cost-value relationship of a training programme or a training technique is helpful in:

a. Determining the priorities for training (for present and potential managers, age

structure of the trainees etc.).

b. Matching the employee and job through training.

c. Determining the work of management sacrifices (like time taken by training

programme, non-availability of staff for production during training period etc.).

d. Choosing the right training method.

e. And one of the possible combinations of the methods of training evaluation listed

below can be used by an organisation for evaluation depending upon the need and

convenience.
 CHAPTER-3
INDUSTRIES PROFILE
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej and Voltas were the major players in the consumer durables
market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and
Aiwa came into the picture. Today, these players control the major share of the
consumer durables market. Consumer durables market is expected to grow at
10- 15% in 2007-2008. It is growing very fast because of rise in living
standards, easy access to consumer finance, and wide range of choice, as many
foreign players were entering in the market with the increase in income levels,
easy availability of finance, increase in consumer awareness, and introduction
of new models, the demand for consumer durables has increased significantly.
Products like washing machines, air conditioners, microwave ovens, colour
televisions (C-TV) were no longer considered luxury items.
However, there were still very few players in categories like
vacuum cleaners, and dishwashers Consumer durables sector is characterized by
the emergence of MNCs, exchange offers, discounts, and intense competition.
The market share of MNCs in consumer durables sector is 65%. MNC's major
target is the growing middle class of India. MNCs offer superior technology to
the Consumers whereas the Indian companies compete on the basis of firm
grasp of the local market, their well-acknowledged brands, and hold over wide
distribution network. However, the penetration level of the Consumer durables
is still low in India. Indian Consumer durables market used to be dominated by
few domestic players like Godrej, Voltas, Alwen and Kelvinator.
But post liberalization many foreign companies have entered into
Indian market dethroning the Indian players and dominating Indian market the
major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and
WASHING MACHINES. India being the second largest growing economy with
huge consumer class has resulted in consumer durables as the fastest growing
industries in India. LG, SAMSUNG the two Korean companies have been
maintaining the lead in the market with LG being leader in almost all the
categories. The rural market is growing faster than the urban market, although
the penetration level is much lower. The CTV segment is expected to the largest
contributing segment to the overall growth of the industry. The rising income
levels double-income families and consumer awareness were the main growth
drivers of the industries.
INDUSTRY PROFILE
The Consumer Durables industry consists of durable goods and appliances
for domestic use such as televisions, refrigerators, air conditioners and washing
machines. Instruments such as cell phones and kitchen appliances like
microwave
ovens were also included in this category. The sector has been witnessing
significant growth in recent years, helped by several drivers such as the emerging
retail boom, real estate and housing demand, greater disposable income and an
overall increase in the level of affluence of a significant section of the population.
The industry is represented by major international and local players such as BPL,
Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc. The
consumer durables industry can be broadly classified into two segments: Consumer
Electronics and Consumer Appliances. Consumer Appliances can be further
categorized into Brown Goods and White Goods.
White Goods: - white good mainly include air conditioner, refrigerator, washing
machines, audio equipment and speaker.
Brown Goods: - This kind of consumer durable mostly include kitchen appliances
like chimneys, electric fan, grinder, iron, microwave ovens, mixers and varied
other cooking ranges.
Consumer Electronic: - Some of the mostly used consumer electronic goods are
DVD players, telephones, VCD players etc.
Some of the top consumer durables brands are: -
LG, Nokia, Philips, Samsung, Sony, Whirlpool, Blue Star, Carrier, Godrej India,
Hitachi India Limited, Sharp India Limited, Tata, Toshiba India Private Limited,
Videocon, Voltas, Crompton Greaves Consumer Electronic private limited.
INDUSTRIE’S SIZE, TREND & GROWTH
The consumer durables market in India was estimated to be around US$ 5 billion
in 2007-08. More than 7 million units of consumer durable appliances have been
sold in the year 2006-07 with colour televisions (CTV) forming the bulk of the
sales with 30 per cent share of volumes. CTV, refrigerators and Air- conditioners
together constitute more than 60 per cent of the sales in terms of the number of
units sold. Industry Size, Growth, Trends The consumer durables market in India
was estimated to be around US$ 5 billion in 2007-08. More than 7 million units of
consumer durable appliances have been sold in the year 2006- 07 with colour
televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes.
CTV, refrigerators and Air-conditioners together constitute more than 60 per cent
of the sales in terms of the number of units sold. In the refrigerators market, the
frost-free category has grown by 8.3 per cent while direct cool segment has grown
by 9 per cent. Companies like LG, Whirlpool and Samsung have registered double-
digit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic
category with a higher base and fully-automatic categories have
grown by 4 per cent to 526,000 units and by 8 per cent to 229,000
units, respectively.
 CHAPTER-3
COMPANIES PROFILE