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AN INTERNSHIP REPORT ON Sipradai Trading Private Limited
AN INTERNSHIP REPORT ON Sipradai Trading Private Limited
Submitted by:
Sumita Chhetri
Submitted to:
Faculty of Management
Tribhuvan University
Gangahity, Kathmandu
May, 2022
RECOMMENDATION OF THE COLLEGE
RECOMMENDATION OF THE ORGANIZATION
DECLARATION
This is to certify that I have completed this internship report entitles “An Internship
Report on Commercial Vehicles Trading Operation on Sipradi Trading Private
Limited” under the guidance of “Mrs. Renuka Timalsina” in the partial fulfillment
of the requirement for the degree of Bachelor of Business Administration at Faculty
of Management, Tribhuvan University. This is my original work and I have not
submitted it earlier elsewhere.
Sumita Chhetri
May, 2022
ACKNOWLEDGEMENTS
The internship opportunity I had with Sipradi Trading Pvt. Ltd, was a great chance for
learning and professional development. Therefore, I consider myself a very lucky
individual as I was provided with an opportunity to be a part of it.
I also express my deppest thanks to Mr. Abhisekh Mishra, Deputy Product Manager
(Bus Department) of Sipradi Trading Pvt. Ltd who guided me in every steps during
the whole internship period. It is my radiant sentiment to place on my best regards,
deepest sense of gratitude to Mrs. Rashmi Shakhya, STPL Gairidhara Showroom
incharge, Mr. Krishna Chand, Chief Product Manager (Bus Department),Mr. Rikesh
Bajracharya, Senior Sales officer (Bus Department), Mr. Bikash Dahal, Senior Sales
Officer (Bus Department) and Nabin Sidali Senior Sales Office (Bus Department), for
their careful and precious guidance which were extremely valuable for my study both
practically and theoretically.
Sincerely,
Sumita Chhetri
Chapter One
INTRODUCTION
1.1 Background of the Study
According to the requirement of Faculty of Management (FoM) of Tribhuvan
University, the students of 8th semester are supposed to undergo internship in any
organization for minimum of twelve weeks for the partial fulfillment of Bachelors in
Business Administration (BBA) program. This internship program conducted during
8th semester BBA program was carried out at Sipradi Trading Private Limited (TATA
Motors CV Showroom) which is located at Gairidhara, Kathmandu.
An internship is a unique aspect of education that integrates theoretical study with the
planned and supervised career related work experience. It is a work related learning
experience for individuals who wish to develop hands on work experience in a certain
occupation field. Interns are usually college or university students but they can also be
high schools students or post graduate students seeking skills for new career. So
internship program is included as the part of BBA curriculum to make students more
practical and make them aware of real corporate world. The internship program helps
a lot to enhance the technical and communication skills that are very important for
working in the workplace. Moreover the internship program provides the chance to
build the confidence and also provides an excellent platform to start the career in the
desired field. The study helps to implement the theoretical knowledge acquired in the
classroom to the workplace.
Trading business sector is one of the crucial sectors in any economy. Trading
companies are businesses working with different kinds of product which are sold for
consumer, business, or government purpose. Trading companies buy a specialized
range of products, maintain a stock or a shop and deliver product to the consumer.
Different kinds of practical conditions make for many kinds of business. Usually two
kinds of business are defined in trading. Importers or wholesalers maintain a stock
and deliver products to shops or large end customers. They work in a large
geographical area, while their customers and shops work in smaller areas and often in
2
just a small neighborhood. Talking about trading companies today we refer mainly to
global B2B traders highly specialized in one goods category and with a strong logistic
organization. Changes in practical conditions such as faster distribution, computing
and modern marketing have led to changes in their business models.
This report is completely based on the personal experience and knowledge gained
while working as an intern in Sipradi Trading Private Limited (TATA Motors CV
Showroom). The duration of internship program was from 2nd Magh 2078 to 2nd
Baisakh 2079 in which, intern was place Sales and Marketing department
(Commercial Vehicle). As a student of marketing it was a very delightful decision and
opportunity to work in that department. The internship program has provided
substantial knowledge and wonderful working experience. It helped me in gaining
useful insights on how sales and marketing department of automobile operates and
how the Nepali automobile industry is performing at present.
1.3 Methodology
Methodology is a set of procedures that defines what the activity of research is, how
to proceed, how to measure progress and what is succeeded. The methodologies that
are used in this report are:
1.3.3 Placement
The internship process starts with the submission of application letter along with the
letter from the college in the administration department. It takes some time to get
enrolled. The department where the intern is being place is fixed by the Human
Resource Department. Among the various departments, Sipradi Trading PVT.LTD,
placed the intern in “Commercial Vehicle Business Unit”, whereby intern need to deal
with the clients who are interested in buying the bus. The working part of intern for
bus department was inclined towards sales and marketing. During the period of the
internship the activities of following departments were observed:
Sales Department
Marketing Department
1.3.4 Duration
Duration: 12 Weeks
Under this time period the intern is supposed to learn and work under different units
of departments if possible.
1.3.5 Activities
During the period of the internship, the intern was placed in the sales and marketing
department in Sipradi Trading Private Limited and was assigned with the following
tasks:
Chapter Two: It includes the introduction to the Trade Industry. It shows the
evolution, development, current situation and future of Nepalese Trade industry.
Chapter Three: It deals with introduction of Sipradi Trading Private Limited along
with its background, vision, mission, value, objectives, analysis of the overall study
and services provided by the company.
Chapter Four: This chapter deals with various activities done in the various
departments of the company.
Chapter Five: This chapter deals with summary, conclusions and recommendations.
Chapter Two
Trading companies are businesses working with different kinds of products which are
sold for consumer, business or government purposes. Trading companies buy a
specialized range of products, maintain a stock or a shop, deliver and deliver products
to customers.
Different kinds of practical conditions make for many kinds of business. Usually two
kinds of businesses are defined in trading. Importers or wholesalers maintain a stock
and deliver products to shops or large end customers. They work in a large
geographical area, while their customers, the shops, work in smaller areas and often in
just a small neighborhood.
Sipradi Trading Private Ltd (STPL) has been a sole distributor of Tata Motors Ltd.
India, for Nepal since 1982 and certified with ISO 9001:2015. The company has been
providing Sales, Services and Spare parts, facility for the full range of Tata Motor’s
commercial as well as passenger vehicles. The company has immense networks
throughout Nepal having 36 sales network offices and 32 service centers dedicated to
Commercial vehicles and Passenger Vehicles with 300 spare parts outlets across the
country.
Sipradi Assured is the latest addition to the Sipradi family which deals with second-
hand vehicles.
3.2 Introduction to TATA Motors
Tata Motors Group (Tata Motors) is a $34 billion organization. It is a leading global
automobile manufacturing company. Its diverse portfolio includes an extensive range
of cars, sports utility vehicles, trucks, buses and defense vehicles. Tata Motors is one
of India's largest OEMs offering an extensive range of integrated, smart and e-
mobility solutions.
Part of the USD 110 billion Tata group founded by Jamsetji Tata in 1868, Tata
Motors is among the world’s leading manufacturers of automobiles. It believes in
‘Connecting aspirations’, by offering innovative mobility solutions that are in line
with customers' aspirations. TATA is India's largest automobile manufacturer, and it
continues to take the lead in shaping the Indian commercial vehicle landscape, with
the introduction of leading-edge powertrains and electric solutions packaged for
power performances and user comfort at the lowest life-cycle costs. The new
passenger cars and utility vehicles are based on Impact Design and offer a superior
blend of performance, drive ability and connectivity.
Integrity
Maintain high ethical standards and compliance in conducting business.
Unity
Maintain and improve open communication platform, encourage team work,
respect all and recognize excellence in performance.
Innovative
Constantly remain creative in satisfying changing customer needs.
System
Be a system and process driven company that constantly invests in its physical
infrastructure people, technology and all procedural systems that drive
efficiency and excellence.
Learning
Strongly emphasize the need to remain ahead of competition and be current
with global standards and benchmark in training employees.
Sipradi Assured provides the upmarket service which eases out the buying and selling
of certified pre owned vehicle. For customers, a certified Sipradi Assured vehicle acts
as a warranty against poor quality purchases by ensuring that pre owned vehicle are
refurbished and upgraded using genuine spare parts and bona fide documentation.
Sipradi Assured offers a wide range of vehicle selection and also aids customers to
make the right choice.
In the context to the market of trucks/ tippers the major customers are from the
business background. They generally are from transport companies, suppliers,
crusher, red mix, blocks, bricks, construction, couriers, and other too many.
Generally, TATA has focused this target group as the major customer of its products.
In the current scenario the TATA has most market share of commercial vehicles and
TATA Motors has done lots of sale motive programs to make the customer believe
about the product and services provided by TATA and to maintain current market
position. Similarly, in context to bus department the focused group or the customer
are the transport business school and other Yatayat business company.
3.6.7 Lubricants
Bharat Petroleum (BP) offers a full range of Automotive Engine Oil, Gear Oil
Transmission oil, Specialty Oil and Greases. The correct usage of these Lubricants of
right quality ensures prolonged and trouble free vehicle operation providing
maximum benefits to the users of present day modern vehicles.
MAK today is known in India as the “Champion of all engines”. STPL has brought
MAK to Nepal and distributed through its various channels for its valued customers.
3.7.1 Buses
Ultra Bus
LP 407
LP 912
LP 1618
LP 1515
Marcopolo
Kathmandu
Patan
Bhaktapur
Lalitpur
Nepalgunj
Butwal
Birgunj
Ithari
Product Strategy
A product is seen as an item that satisfies what a consumer demand. It may be a
tangible good or an intangible service. Sipradi has a wide range of products.
The products of Sipradi are:
a) TATA Commercial Vehicles
b) TATA Passenger vehicles
c) SIPRADI Assured
d) Exide’s Batteries
e) MAK lubricants
f) Kuken brand of air tools
g) Heavy equipment Auto parts
h) TATA Genuine parts
i) Michelin Tires from France
j) TATA Hitachi
k) Luminous Energy products and Back up services
Pricing Strategy
As all the products are imported from India, the custom charge determines the
pricing are since all the products strategy. Sipradi Trading Private Limited
applies aggressive pricing method. The prices of the product are marked lower
or at par with the competitor's but aggressive customer care , management
commitment for the core satisfaction of the end users are the value added
Distribution channel is essential to effectively and efficiently available the
quality services and product to the target customer. For this, Sipradi Trading
Private Limited has 18 showrooms and 21 service centers as of now. The
showrooms are located in all the development regions of the country. Sipradi
Trading Private Limited creates channel partner through dealership.
Promotional Strategy
Sipradi Trading Private Limited has backed up the promotional activities with
more than one advertising agency. Setopati, Welcome Advertising, Everest ad,
Brand works etc. are the agencies that are used for the promotion of the
company as and when required. Despite this, Sipradi Trading Private Limited
has dedicated core marketing team for promotional activities in every
department. Sipradi has been providing various schemes to the customer after
analyzing sales trends, seasons, demand and sales of the product and economic
situation.
based on the products it offers. Each product has its functional department. The
structure is presented below:
At Sipradi, CEO is at the very top of the organizational structure. The CEO is
reported by the managers of each product category. There are functional departments
in each product category and the functional managers are accountable to their
respective Product Manager. The subordinates are liable to report only to their line
managers. The major departments of STPL are listed below:
Business Volume
Thirty four years down the line, Sipradi has exceeded USD 350 million annual
revenue and is growing rapidly in automotive, energy, lubricant, financial
services, and equipment businesses. Sipradi has been honored as the highest
taxpayer in the trading business in the country.
Nature and No. of Employee
Sipradi has 1045 employees and 765 support staff working to a common goal
to deliver quality products and services while adding synergy to the growth of
overall brand value.
Major Performance and Achievements
Sipradi Trading Pvt. Ltd. was honored to receive most prestigious Distributor
of the Year 2018, surpassing 45 distributors of Tata Motors representing
Europe, Africa and Asia "Annual Distributors Awards 2018" - 'Tata Motors
One World 2019' held in Dubai. The awarded categories are the following:
Distributor of the Year-New Product Introduction, Best Customer Care Value
Added Services, Best Spare Parts Retail Network Development, Best Key
Account Process Implementation, and Best Network Development. Best Brand
Building Activities, Highest Sales: Ultra Buses, Best Global Service Camp-
Category A, Best Initiatives in Customer Engagement-Category-A and Highest
Sales Pickups-Category-A. Apart from these prestigious awards Sipradi has
once again benchmarked against the highest standards in the industry globally,
contested by all the more than 47 different countries.
Every employee there are task- goal oriented. Each sales person is given the
monthly target which they have to meet. The employee who gets the target is
also awarded by the organization. The family environment has enhanced the
working environment. Various trainings and counseling programs are
conducted to enhance the employee’s efficiency.
3.13 Corporate Social Responsibility
Corporate Social Responsibility is a management concept whereby companies
integrate social and environmental concerns in their business operations and
interactions with their stakeholders. Sipradi has well fulfilled its CSR through various
programs. Some of them are as follows:
The organization is registered in the District Administration Office (DAO) and the
Inland Revenue Office of Birgunj, Parsa, Nepal. It is affiliated with Social Welfare
Council (SWC) of Kathmandu. Sipradian Sahayata strongly attempts to spread its
help and support the needy, underprivileged and marginalized communities. In these
endeavors Sipradian Sahayata cooperates with all stakeholders including government,
non-government and community-based partner organizations.
Difficulty in dealings with customers as their need varies and possess different
attitude. As the demand of the electric vehicle is increasing day by day due to
increment of oil and change in the technology. Due to this company was not
able to handle the demand of the customers because of the lack of such
vehicles.
Poor condition of photocopy machine.
Complaining and demand customers create problems. Some customers used to
claim unnecessary complaints about the vehicles. Even though the warranty
period gets over they want the company to repair each and every part after the
warranty period.
Insufficient time for coordination with other departments staffs. The staffs are
overloaded with numerous work and dealing with clients so they don’t have
sufficient time for the interns.
Tracking competitor’s product is very difficult task.
Formulation of counter strategy is also difficult task in an organization.
Customers bargain for heavy discount that is beyond the policy of the
organization. Mostly customer demand for more discounts which has not been
allowed by TATA Motors. These creates major problems while dealing with
the customer.
Customers ask for more financing duration that is beyond the Bank’s policy.
Delay in decision making by prospect to purchase product.
Bank may delay the “DO” that may create a problem in delivery of bus.
Setting the objective should be done after the SWOT analysis has been performed.
This would allow achievable goals or objectives to be set for the organization.
Strengths: They are the characteristics of the business or project that give it an
advantage over others.
Weakness: They are the characteristics that place the business or project at a
disadvantage relative to others.
Opportunities: They include those elements that the project could exploit to its
advantage.
Threats: They include those elements in the environment that could cause trouble for
the business or project.
4.2.1 Strengths
Strengths are the characteristics of the business or project that give it an advantage
over others. Sipradi has many positive aspects that make it one of the most successful
companies of Nepal. The strengths of Sipradi Trading are as follows:
Sipradi Trading Private Limited has highest market share, so it’s that strength
for the business firm. The annual sales of the Commercial Vehicle is rising
rapidly and it has been able to outwit its competitors in terms of market share
as well as sales.
Similarly, expenditures on promotional activities is also the strength for the
business firm. It has made large sum of expenditure on promotional campaign
earlier. Other companies do not make expenses on promotional campaign like
Sipradi Trading does. Hence, it’s the strength for the business firm.
Employees of Sipradi Trading Private Limited are well trained and dedicated
towards their work as well as organization. It is providing high remuneration
and other benefits like bonus, commission etc, to its staff.
Similarly, it also uses latest technology i.e. ERP, where by all records from
different departments are recorded such the smooth co-ordination between
departments would be possible.
High economic status is also one of the strength of Sirpadi Trading Private
Limited. High economic condition of the company has already led to the hard
hitting goodwill which ultimately increased the sales and profit of firm.
Satisfied employees are the asset of Sipradi Trading Private Limited. The
employees are motivated and they have devotion to work. They even work
form 9 AM till 8 PM to accomplish their task. Conductive environment leads
to the satisfaction of the employees.
High commitment of employees is also one of the strength for the business
firm. Sipradi Trading Private Limited has been awarded with nine different
awards by TATA Motors. India for its performance and the MNC’s
benchmark the performance of employees of Sipradi Trading Private Limited
and ask their employees to work accordingly.
Strong brand name is also one of the strength for the business firm. Being
associated with TATA Motors, Michilen Tyres, Excide Battery etc,. Sipradi
Trading Private Limited has been able to earn a strong brand name in the
market.
Goodwill and prestigious image is also one of the strength of Sipradi Trading
Private Limited. As, Sipradi has been ranked as the highest tax paying
company in Nepal: it ultimately has positive influence in the society.
Effective reward system is also one of the strength of the company. The
company rewards employees who perform their duties and responsibilities
properly and after successful task accomplishment they’re rewarded.
4.2.2 Weaknesses
Weaknesses are the characteristics that place the business or project at a disadvantage
relative to others. Despite its strong positive aspects, Sipradi is not without
weaknesses. Some major weaknesses are:
4.2.3 Opportunities
Opportunities are the elements that the project could exploit to its advantage. Nepal
being a developing country, with transportation marching forward, the demand for
Commercial and Passenger vehicles is high. It has got a lot of opportunities to foster
its business. The main opportunities of Sipradi Trading are as follows:
Few and weak competitors is one of the opportunity for Sipradi Trading
Private Limited. We know Sipradi Trading officially sales product associated
with Tata and there are few competitors of Tata and they are relatively weaker
than that of Tata.
Favorable government policy is also the strength of Sipradi Trading Private
Limited. Being official distributor of Tata motors, it has been supported by
favorable government policy i.e. there is no protectionism as there prevails
free trade in the economy of Nepal.
Business expansion is also one of the opportunities for Sipradi Trading Private
Limited. There are 11 authorized service centers of Tata motors for School bus
all over Nepal. Similarly, there are nine sales and service outlets and four
different regional dealers all over Nepal. So, its' much easier to expand in
other areas too.
Expanding product line is also one of the opportunities for Sipradi Trading
Private Limited. There are other vehicles like car, Tata ace, truck, sumo etc. so
it's easier to expand more product line. Very soon it is going to launch a new
product line called Tata Prime truck.
Increasing market share is also one of the opportunities for Sipradi Trading
Private Limited. It already has more than 60% market share and in upcoming
days there is high possibility in increase of market share.
Similarly, ERP is the technology is used by Sipradi Trading Private Limited. It
is that system that integrates the information from all departments and makes
it possible for smooth co-ordination and flow of information in shortest span
of time and also in the elimination of redundancy of work.
Change in the attitude of customers is also one of the opportunities for
business. These days transportation facility i.e. need of bus for school or
college has been termed as basic need for the institution so it's an opportunity
for Sipradi Trading Private Limited.
High income level of people is also one of the opportunities. As we know the
income level of the people is rising, the demand for luxurious product also
increases. Ultimately, the sale of commercial vehicles would also increase.
Acquisition of popular British brands like Land Rover and Jaguar in 2008 has
created good impact so the acquisition by Tata motors has created immense
opportunity for the sale of Tata products.
4.2.4 Threats
Threats are the elements in the environment that could cause trouble for the business
or project. Despite its positive aspects, Sipradi is not in the safe side unless it is
competitive in the market. The main threat is rivalry in the automobile business.
Competition is cut-throat. To be specific, the major threats faced by Sipradi are as
follows: