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A STUDY OF MUNNER MOTORS PRIVATE LIMITED

EXECUTIVE SUMMARY

This report is the result of 4 weeks internship. During the internship it was required to
study the organization. Department of the organization and critically relate the theoretical
aspects of the organization to the practical situation. I got an opportunity of getting
practical knowledge about the AUTOMOBILE system in India. So to quench the first of
practical exposure and for the getting the basic knowledge about heavy vehicles I join
MUNNER MOTORS PRIVATE LIMITED. During 4 weeks I gather all necessary
information about MUNEER MOTORS PRIVATE LIMITED.

Effort have been made to complete this report in such a way that activities the salient
features not only for students but also for the layman. I have divided this report into
different chapters.

First chapter is about the introduction of the study. Second chapter is about profile of the
industry. Third chapter is profile of the company/organization fourth chapter is about the
McKinsey’s 7s framework & Michael E porter’s five force model. Fifth chapter is about
the SWOT analysis of an Organization. Sixth chapter is about the analysis of financial
statements. And seventh chapter is about the learning experience and bibliography.

At last must say that this text is designed to stimulate the curious about the management
practices of MUNNER MOTORS PRIVATE LIMITED. And to know the automobile
industry working in India.

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CHAPTER 1

1.1 INTRODUCTION TO THE STUDY


MEANING:

 Organization is simply people working together for a common goal. It is a group of


people assembling or congregating at one place and contributes their efforts to achieve a
common goal.Hence, it is coordinates different activities for running the business
enterprise efficiently so that the common goal can be achieved.

DEFINITION:

According to Louis alen “Organization is the process of identifying and grouping work to
be performed, defining ad delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most effectively together in
accomplishing objectives.

According to Koontz and O Donell,“organization is the establishment of authority


relationships with provision for co-ordination between them, both vertically and
horizontally in the enterprise structure. These authors view organization as a coordinating
point among various persons in the business”.

According to LH Haney, “Organization is a harmonious adjustment of specialized parts


for accomplishment of some common purpose or purposes. Organization is the
adjustment of various activities for the attainment of common goals”.

Thus, from the above definitions, it may be concluded that organization is the mechanism
developed by management to unite the efforts of the people (employees) in order to
realize the set objectives.According to wheeler “Internal organization is the structural
framework of duties and responsibilities required of personnel in performing various
functions within the company, it is essentially a blue print for action resulting in a
mechanism for carrying out function to achieve the goals set-up by company
management”. 

Organization is the backbone of management because without an efficient organization


no management can perform its functions smoothly. In the management process this

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organization stands as a second state which tries to combine various activities in a


business to accomplish pre-determined goals. It is the structural framework of duties and
responsibilities required of personnel in performing various functions with a view to
achieve business goals.

The study on organization is focused to learn about various activities and functions carried
out in the departments that helps to assess the performance of the organization through
SWOT analysis, 5 Force Model, McKinsey’s 7’S framework and financial analysis of the
company that helps to know the future prospects of the company.

ORGANIZATION

MUNEER MOTORS (PVT LTD), the market leader in Heavy vehicles in India. The
company started manufacturing commercial vehicles in 2012. MUNEER is the leader by
far in commercial vehicle and the second largest in the passenger vehicle market. The
company is the world‘s66th largest medium and light commercial vehicle manufacturing.

MUNEER is best known for heavy vehicles in India, Its automotive division, the
company's oldest unit (founded in 2012).

Today, company operations span 18 key industries that form the foundation of every
modern economy: aerospace, aftermarket, agribusiness, automotive, components,
construction equipment, consulting services, defense, energy, farm equipment, finance
and insurance, industrial equipment, information technology, leisure and hospitality,
logistics, MUNEER MOTORS, formed in 2012 for India's green revolution,
manufactures are planning to introduce electric vehicles across the world to contribute
towards eco-friendly products. The company has facilities located throughout India.

The survey involved gathering wide information about the company, its products,
advertising and sales promotion and impact of various competitive firms on the company.

From the information collected, various aspects were identified where the company needs
to focus more to improve the efficiency of marketing team of MUNEER MOTORS PVT
LTD.

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The research was conducted through collection of primary and secondary data. Secondary
data was collected through visiting various web sites, automobile magazines and other
reliable sources. Primary data was collected through a well-framed questionnaire, of
which later a detailed analysis was done using various statistical tools like MS Word and
Excel.

On the basis, the secondary data analysis and the extensive analysis of the primary data,
interpretations were drawn for the questions and conclusion is drawn. Certain suggestions
are also drawn from the analysis to help.

Customer service is the service provided in support of the company’s core products.
Good customer service is the lifeblood of any organization. It generates barriers to
competition, customer loyalty and makes the company’s activities more efficient.

India is expected to become the 11th largest market for Renault by the end of 2013, as per
Mr. Carlos Ghoshn, Chairman and CEO, Renault. India is expected to be a critical global
hub for the firm along with Brazil, Russia and, perhaps, another country in the ASEAN
region.

Additionally, the vision of AMP 2006-2016 aims India "to emerge as the destination of
choice in the world for design and manufacture of automobiles and auto components with
output reaching a level of US$ 145 billion accounting for more than 10 per cent of the
GDP and providing additional employment to 25 million people by 2016."

Moreover, the introduction of alternative fuels like hydrogen and bio fuels needs to be
promoted to ensure sustainability of the industry over the long term.

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1.2OBJECTIVES OF THE STUDY


 To familiarize with the organization structure and it’s functioning.

 To understand how the key business processes are carried out in an organization.

 To understand the overall performance of the organization.

 To conduct a SWOT analysis of the organization.

 To conduct the McKinsey 7s framework to the organization.

SECONDARY OBJECTIVES
In addition to the above stated objectives, an insight into the following fields wasalso an
important aspect of the study. These include: identifying trade fair as an important
promotional tool and understanding the ways of dealing with various customer problems.

1.3 NEED FOR THE STUDY

 To know the functioning of Muneer Motors Pvt ltd.

 To get familiarized with the working process in an organization.

 To understand the financial conditions of an organization.

 The importance of each activity in an organization.

1.4 SCOPE OF THE STUDY

The scope of the study is confined to MUNNER MOTORS PRIVATE LIMITED with
respect to start. This project throws light on the welfare and safety measures provided in
Ashok Leyland Limited. It also reveals the awareness and satisfaction of employee with
safety and welfare schemes. It also necessary to know the employee satisfaction about the
safety and welfare measures of the organization for the purpose of achieving their goals.

The study undertaken at MUNNER MOTORS PRIVATE LIMITED seeks answer to the
mentioned objectives, although the scope is limited to a particular sample size. The
findings of the study will also helpful to the future research students also want to know
more about in an organization.

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1.5 RESEARCH METHODOLOGY

The success of a research depends largely on the methodology used. The appropriate
methodology will improve the validity of the findings. The following methodologies were
adopted for the study.

 Descriptive Research

 Exploratory Research

DESCRIPTIVE RESEARCH

In this project, Descriptive research has been used. Descriptive research includes survey
and fact findings enquiries of different kinds. The major purpose of descriptive research is
description of the state of affairs, as it exists at present. The main feature of this method is
that the researcher has no control over the variable; he can only report what has happened
or what is happening. The methods of research utilized in descriptive research are survey
of all kinds; it is concerned with the research studies with a focus on the portrayal of the
characteristic of a group or individual or a situation. The main objective is to acquire
knowledge.

EXPLORATORY RESEARCH

EXPLORATORY RESEARCH is a methodology approach that investigates research


questions that have not previously been studied depth.

Exploratory research is often qualitative and primary in nature. However, a study with a
large sample conducted in an exploratory manner can be quantitative as well. It is also
interpretive research or a grounded theory approach due to its flexible and open-ended
nature.

Sources of data collection:

1. Primary Data

2. Secondary Data

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Primary Data:

Primary data were collected through observation, personal interview, discussion with
managers and employees of the various departments of the organization.

Secondary Data:

Secondary data were collected through literature review which includes company’s
internal records, publications, annual reports,
journal, statutory report, websites (official and others) etc.

Weblogs

For the purpose of my study I have collected both the sources of data namely
Primary dataand Secondary data

 The primary data was collected by interacting with the employees. The data
collected was original and reliable data.
 Observation method
 The secondary data was collected by using websites, Magazines and Journals.

1.6 LIMITATIONS OF THE STUDY

 There were limitations in conducting the organization study at Muneer Motors Pvt
ltd.

 The study was limited to only Muneer Motors Pvt ltd.

 The organizational study was completed within giving a time frame work

 There were difficulties to obtaining the data from employees and managers
because of their busy workschedule

 The company has the limitations to discord their financial statements; detailed
analysis of financial statements is not possible.

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CHAPTER 2

PROFILE OF THE INDUSTRY

The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy.
India is emerging as one of the world's fastest growing passenger car markets and second
largest two wheeler manufacturer. It is also home for the largest motor cycle
manufacturer and fifth largest commercial vehicle manufacturer.

India is emerging as an export hub for sports utility vehicles (SUVs). The global
automobile majors are looking to leverage India's cost-competitive manufacturing
practices and are assessing opportunities to export SUVs to Europe, South Africa and
Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs.

India also has the largest base to export compact cars to Europe. Moreover, hybrid and
electronic vehicles are new developments on the automobile canvas and India is one of
the key markets for them. Global and Indian manufacturers are focusing their efforts to
develop innovative products, technologies and supply chains.

The automotive plants of global automakers in India rank among the top across the world
in terms of their productivity and quality. Top auto multinational companies (MNCs) like
Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their
global pecking order.

Key statistics

The amount of cumulative foreign direct investment (FDI) inflow into the automobile
industry during April 2000 to January 2013 was worth US$ 7,653 million, amounting to
4per cent of the total FDI inflows (in terms of US$), as per data published by Department
of Industrial Policy and Promotion (DIPP), Ministry of Commerce.

The Indian small and light commercial vehicle segment is expected to more than double
by 2015-16 and grow at 18.5 per cent compound annual growth rate (CAGR) for the next
five years, according to a report titled, 'Strategic Assessment of Small and Light
Commercial Vehicles Market in India' by Frost & Sullivan.

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The light commercial vehicles (LCV) market - both passenger and goods carrier is
estimated to register a sales growth of around 20 per cent during FY 2015-FY 2022, as
per a RNCOS report titled, "India LCV Market Outlook".

India is the world's second-largest heavy commercial vehicle market. The RNCOS report,
"India MCV and HCV Market Outlook", observed that infrastructure boom and
emergence of hub and spoke model, among other factors have given a new dimension to
the medium and heavy goods carrier commercial vehicles' sector in India. It is anticipated
that the sales of medium and heavy commercial (M&HC) goods carriers will increase at a
CAGR of more than 10.5 per cent during 2012-15 to 2016-22.

In another RNCOS research report, "Indian Automobile Sector Analysis", the production
of passenger vehicle is forecast to grow at a CAGR of around 11 per cent from 2012-13
to 2021-22, And domestic volume of sales at a CAGR growth of around 12 percent..

Graph No1: Number of Automobiles produced in India over last five years.

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CHAPTER 3

PROFILE OF THE COMPANY/ORGANIZATION

A Muneer Motors has been a major presence in India’s commercial vehicle industry since
2012, the year it was born. The origin of Ashok Leyland can be traced to the urge for self-
reliance, felt by independent India. Pundit Jawaharlal Nehru, India's first Prime Minister
persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacturing.

They are one of the India’s leading manufacturers of commercial vehicles and special
vehicles, engines for industrial purpose, gen sets and marine requirement equipment’s.
For over five decades, Ashok Leyland has been the technology leader in India’s
commercial vehicle industry, molding the countries commercial vehicle profile by
introducing technologies and product ideas that have gone on to become industry norms.

Ashok Leyland at the time of its inception was known as Ashok Motors. It was
assembling Austin cars at the first plant, at Ennore, near Chennai. In 1950, the company
started assembly of Leyland commercial vehicles and soon the local manufacturing under
license from British Leyland; participation in the equity capital, in 1954, the company
was re christened Ashok Leyland.

In 1987 the overseas holding by LRLIH (LAND ROVER LEYLAND


INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between
the Hinduja group, the Non Resident Indian Transnational group and IVECO Fiat SPA
part of the Fiat group and Europe’s leading truck manufacturing company. Ashok P
Hinduja is the chairman of the company. The Hinduja group also associated with Ennore
Foundries Limited, Automotive Coaches and Components Limited, and Gulf Ashley
Motors Limited.

The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok
Leyland Project Services. The chief competitors of the company are;

1. Mahindra

2. Volvo

3. Tata Motors

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With a commanding strength of the about 12,000 employees the company is looking
forwards to enhance the scope of its action. It is aiming at expanding its production
operation overseas to make it a more globally accessible company. It is looking to acquire
a small to medium sized commercial vehicle manufacturers in China and otherdeveloping
nations, which have an established product line. An example would be the 2007
acquisition of the Czech based Avian truck business rechristened Avian Ashok Leyland
Motors.

Since its inception, Ashok Leyland has been a major presence and these years have been
punctuated by a number of technological innovations which went to become industry
standard. This tradition of technological innovations and leadership was achieved through
years of vigorous in-house research and development.

From 18 seater to 82 seater double-decker buses, from 7.5 tons to 49 tone in haulage
vehicles, from numerous special application vehicles to diesel engines for industrial,
marine and genet applications, Ashok Leyland offers a wide range of products.

HEAVY COMMERCIAL VECHICLES MARKET IN INDIA:

Heavy Vehicles Market in India comprises of trucks, Machines, Ambulances, and School
Buses. The popular heavy vehicle brands in India are Volvo, Eicher, Tata, Telco, Ashok
Leyland, Bajaj Tempo, and Swaraj Mazda.

Following are the major players in the Indian heavy vehicles market:

 Ashok Leyland: A major manufacturer in the Heavy Vehicles Market in India,


Ashok Leyland has been leading in its technology and innovation. Its product
ideas are being utilized by many other commercial vehicle companies. Factories
are located at Bhandara, Hosur, Alwar, and Ennore.

 Eicher Motors Limited: Founded in 1982, Eicher is a leading manufacturer of


trucks and buses. It has technological expertise from Mitsubishi Motors
Corporation of Japan. Its operations are located at Thane and Pitampur.

 Tata Motors Limited: Began its heavy vehicles manufacture in 1983. In 2005 it
manufactured 'Tata Ace' a mini truck. Heavy vehicle brands under its banner are
Novus trucks, Star bus and Globus buses, and defense vehicles.

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 Swaraj Enterprise Limited: It is known for its tractor manufacture both in India
as well as USA. Swaraj Mazda Limited was promoted in 1983 and today it is a
large manufacturer of heavy vehicles. Some of its products are school buses, CNG
buses, fire brigades, ambulances, etc.

 Force Motors Limited: Formerly known as Bajaj Tempo Limited, Force had
started operating in 1950 and has been successfully manufacturing heavy
commercial vehicles along with other vehicles since then. Its operations are at
Pithampur and Akurdi.

 AMW:Asia Motor Works Ltd. (AMW) manufactures commercial vehicle, auto


components, fully built vehicles and forged components, in India. Founded in
2002, AMW has won CV of the year 2008 from NDTV profit car and bike
Awards & “CV Innovation of the Year” for 2010 from CV Magazine & Zee
Business News

 BharatBenz: Bharatbenz is an exclusive brand to represent the entire


DaimlerIndia commercial vehicles (DICV) portfolio of trucks from 6, 10, 49 tons,
a 100% subsidiary of dialmer AG. To communicate that trucks are designed
especially for the Indian market, “Bharat” part of the brand means “India” in
various Indian languages.

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COMPANY PROFILE:

COMPANY DETAILS

COMPANY NAME MUNNER MOTORS PRIVATE LIMITED

CIN U29299KA2008PTC047517

ADRESS 7/A/B3 MUNDARGI INDUSTRIAL AREA


Hulakundi Village

COMPANY STATUS ACTIVE

ROC BANGALORE

REGISTRATION NUMBER 47517

COMPANY CATEGORY COMPANY LIMITED BY SHARES

COMPANYSUB-CATEGORY NON-GOVT COMPANY

CLASS OF COMPANY PRIVATE

DATE OF INCORPORATION 20th AUGUST,2008

AGE OF COMPANY 14 YEARS ABOVE

ACTIVITY MANUFACTURE OF SPECIAL PURPOSE


MACHINERY

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BOARD OF DIRECTORS:

The company has 3 directors and no reported key management personnel.

The longest serving director currently on board is Aleem Syed Ahamed who was
appointed on 20 August, 2008. Aleem Syed Ahamed has been on the board for more than
14 years. The most recently appointed director is Syed Nayeemuddin, who was appointed
on 25 July, 2011.

Nazimuddin Syed has the largest number of other directorships with a seat at a total of 4
companies. In total, the company is connected to 5 other companies through its directors.

Tenure Name of the Director Position


20, August 2008 ALEEM SYED AHAMED
Director
15, July 2010 NAZIMUDDIN SYED
Director
25, July 2011 SYED NAYEEMUDDIN
Director

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3.1 BACKGROUND/FACTORS THAT PROMPTED THE ESTABLISHMENT

Muneer Motors Private Limited is an unlisted private company incorporated on 20


August, 2008. It is classified as a private limited company and is located in
Halakundhi,Karnataka.

Muneer Motors are presently engaged in manufacture and sale of commercial vehicles.
The Company also manufactures engines for industrial and marine applications forgings
and casting. Its products include buses trucks engines defense and special vehicles. From
18 seater to 82 seated double-decker buses from7.5 ton to 49 ton in haulage vehicles from
numerous special application vehicles to diesel engines for industrial marine and genet
applications Ashok Leyland offers a range of products.

Since then Muneer Motors has been a major presence in India's commercial vehicle
industry with a tradition of technological leadership, achieved through tie–ups with
international technology leaders and through vigorous in–house R&D. Access to
international technology enabled the Company to set a tradition to be first with
technology. Be it full air brakes, power steering or rear engine busses, Ashok Leyland
pioneered all these concepts. Responding to the operating conditions and practices in the
country, the Company made its vehicles strong, over–engineering them with extra
metallic muscles. 'Designing durable products that make economic sense to the consumer,
using appropriate technology', became the design philosophy of the Company, which in
turn has molded consumer attitudes and the brand personality.

The major activities of this company as per the listed official records are #Manufacture of
other special purpose machinery, equipment,Manufacturing of other special purpose
equipment i.e. including part and accessories,Manufacturing of other special purpose
machinery, i.e. including part and accessories,Other special purpose equipment’s.

Muneer Motors Private Limited is one of the leading manufacturer companies of high
quality products / business services such as Passenger Buses, City Bus, School Bus,
Mining and Construction Truck,

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COMPANY NETWORK

Muneer motors private limited have widest network over the country and they provide to
heavy vehicles to the market. And that company wants to make sustainable in the market
of their strong network.

And that company provides all the heavy vehicles for the transportation of heavy raw
materials and mining purpose. Make sure that in future they were planning to establish
their business in to worldwide.

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3.2. NATURE OF THE BUSINESS

 HEAVY MOTOR VEHICLES


Heavy vehicles market in India comprises of trucks, machines, ambulances and school
buses. The popular heavy vehicle brands in India are Volvo, Eicher, Tata, Telco, Ashok
Leyland and Swaraj Mazda.

Following are the major players in the Indian Heavy Vehicles Market:

 Tata Motors is the largest automobile manufacturing company in India that


manufactures a wide range of heavy vehicles adhering to world class standards. It
is the market leader in commercial vehicles in all the segments, be it heavy
vehicles, medium size vehicles, small vehicles, buses or defense vehicles. The
heavy vehicles manufactured by Tata Motors have highly developed braking
structure, high ground authorization, better direction competence and a muscular
body. The advanced engine imparted to these heavy vehicles makes them a class
apart from the other heavy vehicles running on the Indian roads and Highways.
Tata Motors leads this segment with a market share of 61%.

 Ashok Leyland is an exclusively heavy vehicle manufacturing company situated


in Chennai and was initiated in the year 1948. It is one of India’s biggest
producers of heavy vehicles such as trucks, buses, military vehicles and also the
second biggest commercial vehicle firm in India heavy vehicle division with a
market share of around 27%. Ashok Leyland is also renowned for producing auto
spare parts and engines for marine and industrial submission.

 Eicher Motors was initiated in 3rd September, 1960. The first firm to manufacture
the first tractor in India. The indigenously manufactured tractor was introduced in
the Indian market straight from Eicher’s Faridabad factory. The history of the firm
can be traced back to 1948, when Good earth Company was established for
vending and repairs of imported tractors in the nation.

 Swaraj Mazda, a tie up between Mazda and Swaraj Enterprise, Swaraj Mazda
represents advanced Indian expertise and manufacturing. The firm has Research
and Development improvement edge on international scale. The firm
manufactures various products such as Bus, Ambulance, and Trucks etc.

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3.3 VISION, MISSION, QUALITY POLICY

VISION

A strong commitment to innovation and excellence followed by a comprehensive quality


assurance philosophy in whatever we do uploading the endurance, ethical practice and a
staunch belief in its value system.

MISSION

The quest for excellence is to be augmented by our people and their pride in belonging to
through team work, change in mind set and operational efficiency. Our brand name is to
gain market recognition and become competitor’s envy and customer delight.

QUALITY POLICY

Muneer Motors is committed to achieve customer satisfaction by anticipating and


delivering superior value to the customer in relation to their own business, through the
products and services offered by the company and comply with statutory requirements.

Towards this, the quality policy of Muneer Motors is to make continual improvements in
the processes that constitute the quality management system, to make them more robust
and to enhance their effectiveness and efficiency in achieving stated objectives leading to

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S
E
K
R
O
W
O
E
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WORK FLOW MODEL

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3.5 PRODUCT/SERVICE PROFILE

Muneer Motors Pvt Ltd offers a better quality sales and services for the customers and
Product profile can be broadly split into five categories viz. Buses, Trucks, defense
vehicles, special Vehicles and Engines.

1. BUSES

TYPES OF BUSES

LYNX BS-II Viking BS-II 12 M Bus-BS II

Cheetah (Front engine) Viking BS-III Viking AL

Airport Tarmac Coach Vestibule Bus Panther (Rear engine)

Cruiser Viking CNG BS-III Falcon (Front engine)

Stag BS-II Double Decker

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3. TRUCKS

TYPES OF TRUCKS

4x2 Haulage models Eco met

4x2 and Multi-axle Tipper Tractor

Multi Axle vehicle

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3. DEFENCE VEHICLES

Chassis Bus Field artillery tractor Comet 4x4


Top chi field Artillery tractor Long Chassis Bus

Stallion 6x6 Stallion truck firefighting short

4. SPECIAL VEHICLES

TYPES OF SPECIAL VEHICLES

Hippo tractor Stallion Mk III Tipper Hippo Tipper

Beaver tractor Rapid Intervention Vehicle

Beaver Haulage Hippo Haulage

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3.6. OWNERSHIP PATTERN

Particulars % Shareholding
Individuals 2.87% ( owners of the company)
Government -

Government companies -

Public financial companies -

Banks -

Mutual funds -

Venture capital funds -

Foreign holding -

Other bodies corporate 31.24% (banks & financial


institutes)
Others 65.89% (shareholders)

3.8. FUTURE GROWTH AND PROSPECTS

Muneer Motors expects the commercial vehicle industry to grow at a fast pace in the
coming quarters, with economic activity gaining momentum and demand picking up
across segments

And also trying to expand their business for overall Karnataka and also maintain the good
quality products and services for the customers in the coming years.

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CHAPTER 4

McKinsey's 7s Framework & Five Force model with special reference to


Organization study

MCKINSEY’S 7s FRAMEWORK

INTRODUCTION:

First introduced by Tom Peters and Robert Waterman in their bestselling book “In search
of excellence”, 7 S framework is strategic tool to better understand and analyze the
complexity of an organization. The McKinsey 7S model provides a multidimensional
framework to analyze the current state of an organization and where it can make changes
to achieve the desired objectives. In essence McKinney 7S framework is a strategic
planning tool.

McKinney 7S framework is used to analyze Muneer Motors – competitive strategy,


organization structure, human resources framework, culture, mission vision, and value
statements, and technology and management information system.

MEANING:

McKinsey 7s model can be termed as an internal assessment tool for business


organizations. It determines the organizational effectiveness by examining the alignment
of the seven essential elements (i.e., systems, strategy, structure, share values, staff, style,
skills) with the core values of the entity

Robert Waterman, Richard Pascal and Tom Peters introduced the concept of 7s
framework in the year 1970. They were employed as consultants in McKinsey Consulting
firm at that time. Thus, the tool was named McKinsey 7s model.

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 STRATEGY:
MuneerMotors needs to build a balance between short run cost savings and protecting its
core competitive advantage. Customers perceive Ashok Leyland products and services to
deliver ‘value for money’ proposition plus a bit extra. In its zest to gain more market
share through competing on prices, Muneer Motors should avoid cutting costs that can
result in inferior product and service delivery.

 STRUCTURE:
The pandemic has questioned the current structure and supply chain management of the
company.Reduce the dependence on China – As the trade war between US and China is
getting aggressive, it should reduce its dependence on supply chain emerging out of
China. This will help the organization to diversify risks, avoid regulatory problems etc.

 SYSTEMS:
Muneer Motors needs to put in place robust system for “work from home” employees so
that there can be greater interaction among the employees both online and in physical
environment. It will not only improve productivity but also increase the data security and
cyber security.

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 STAFF:
Some of the steps Muneer Motors can take in to improve the human resources are Open
chats for the people to approach people at various levels in the hierarchy. It will not only
help the top management to directly interact with the people below but also help in
building an open and transparent culture.

 SKILLS:
Muneer Motors can build a structured training and development program for people
working from remote locations.

Muneer Motors can hire fresh talent as more and more people are leaving their existing
jobs because they are not challenging them enough.

 STYLE:
Leaders should pursue collaborative and inclusive form of leadership. Leaders should
build smaller teams as part of larger teams.

 SHARED VALUES:
The organization has built a successful business model based on its core values, vision
and mission. It doesn’t have to change much in the shared values segment. One area
where it can focus more is – sustainability. Investors are putting a lot of stress on
Environmental, Societal, and Governance issues, so it can bring more transparency

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MICHEAL E PORTER’S FIVE FORCE MODEL FRAMEWORK

Porter's five forces analysis is a framework that attempts to analyze the level of
competition within an industry and business strategy development. It draws upon
industrial organization (IO) economics to derive five forces that determine the
competitive intensity and therefore attractiveness of an Industry. Attractiveness in this
context refers to the overall industry profitability. An "unattractive" industry is one in
which the combination of these five forces acts to drive down overall profitability.

A very unattractive industry would be one approaching "pure competition", in which


available profits for all firms are driven to normal profit. This analysis is associated with
its principal innovator Michael E. Porter of Harvard University.

Porter referred to these forces as the micro environment, to contrast it with the more
general term macro environment. They consist of those forces close to a company that
affect its ability to serve its customers and make a profit.

A change in any of the forces normally requires a business unit to re- assess the
marketplace given the overall change in industry information. The overall industry
attractiveness does not imply that every firm in the industry will return the same
profitability. Firms are able to apply their core competencies, business model or network
to achieve a profit above the industry average. A clear example of this is the airline
industry. As an industry, profitability is low and yet individual companies, by applying
unique business models, have been able to make a return in excess of the industry
average.

Porter's five forces include – three forces from 'horizontal' competition: the threat of
substitute products or services, the threat of established rivals, and the threat of new
entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and
the bargaining power of customers.

Porter developed his five forces analysis in reaction to the then-popular SWOT analysis,
which he found rigorous and Porter's five forces is based on the structure– conduct–
performance paradigm in industrial organizational economics. It has been applied to a
diverse range of problems, from helping businesses become more profitable to helping

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governments stabilize industries. Other Porter strategic frameworks include the value
chain and the generic strategies.

1. THREAT OF NEW ENTRANTS:

Muneer Motors is the most markets, the capital and expertise needed to setup an auto or
parts manufacturing facility would be a great enough barrier to entry to prevent many new
entrants from setting up.However, given India's incredible growth forecasts, infrastructure
progress (especially new and better roads), and ever-expanding financing options to rural
residents, the market is attractive. As such, we expect the threat of new entrants to be
high.

2. BARGAINING POWER OF BUYERS:

Buyers in India have a wide variety of choice. There are more than 20 foreign
manufacturers selling in India (including ultra-high-end such as Ashok Leyland and Tata
motors). Of course there are also a plethora of incredibly cheap choices, like the famous
Tata Nano.

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3. BARGAINING POWER OF SUPPLIERS:


Muneer Motors are likely that the suppliers to the manufacturers have considerable
bargaining power. They are not held ransom by one single manufacturer as they can
market their products to any of the others in India.

4. THREAT OF SUBTITUTES:
India is famous for its Heavy vehicles (cars and Lorries) and three-wheelers. These
are very real and obvious threats to auto manufacturers

5. INDUSTRY RIVALARY:
The amount of rivalry amongst competitors in India is high. The industry is not yet
in it shake-out phase and is still struggling to find the up-and-coming stars and
possibly topple the leaders.

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CHAPTER 5

SWOT ANALYSIS

A SWOT analysis is a technique used to determine and define your Strengths,


weaknesses, opportunities, and threats.

SWOT analysis can be applied to an entire company or organization, or individual


projects within a single department. Most commonly SWOT analyses are used at the

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organizational level to determine how closely a business is aligned with its growth
trajectories and success benchmarks.

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STRENGTHS

 Good Training System.

 Good Organizational Climate.

 Skilled Employees

 Standard Quality Product and service

WEAKNESSES

 Declining Market share

 High cost of replacing existing experts.

 Environmental conditions.

 Interest rates on loans

OPPORTUNITIES

 Demand for heavy vehicle has stepped up all over the globe.

 Company provides better credit facility to dealers.

 Launch of new products.

THREATS

 High competition

 Promotional programmers of other brands

 Complicated national market

 New players entering the market.

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CHAPTER 6

FINANCIAL STATEMENT

PROFIT & LOSS A/C

Particular Mar 2022 Mar 2021 Mar 2020 Mar 2019 Mar 2018

CONTINUING OPERATIONS

Revenue from operations 54402.00 44069.78 44708.87 485831.00 512871.00

Other income 944090.47 766335.08 1275931.99 57088.00 62395.00

Cost of materials consumed - - - - -

Purchase of stock in trade - - - - -

Changes in inventory - - - - -

Employee benefit expenses 16839.05 15077.32 13646.76 11238.00 8694.00

Finance costs 148991.14 145292.72 157761.99 153406.00 147624.00

Depreciation & amortization 828.74 702.45 896.85 533.00 707.00

Other expenses 71368.44 78273.26 61917.22 69729.00 41095.00

Total expenses 238027.38 239345.76 234222.82 234906.00 198120.00

Total revenue less total expenses 760465.09 571059.10 1086418.04 308013.00 377146.00

Prior period and exceptional items 677267.41 240642.83 157294.81 - -

Profit before extraordinary 83197.68 330416.27 929123.24 308013.00 377146.00


items

Extraordinary items - - - - -

Profit before tax 83197.68 330416.27 929123.24 308013.00 377146.00

Current tax expenses - 26500.00 30000.00 3000.00 6000.00

Deferred tax expense 796.55 2605.14 -7018.42 -304.00 -208.00

Profit from continuing 82401.12 301311.13 106204.66 305317.00 371354.00


operations

Profit from discounting - - - - -


operations(after tax)

Net profit/loss 82401.12 301311.13 106204.66 305317.00 371354.00

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BALANCESHEET
Particular Mar2022 Mar2021 Mar2020 Mar2019 Mar2018

Equity liabilities

Shareholders’ funds

Share capital 33459.46 425543.46 420793.46 418959.00 416009.00

Reserves and surplus 4055407.23 3984043.52 3749500.97 2942148.00 2703183.00

Money received against - - - - -


share warrants

Share application money - - - - -


pending allotment

Noncurrent liabilities

Long term borrowings 1835885.00 1361105.00 1350555.00 1450555.00 1327000.00

Deferred tax liabilities - - - - -

Other long term liabilities 6983.83 950.20 1133.15 948.00 585.00

Long term provisions 5429.45 6600.27 6778.68 5265.00 5815.00

Current liabilities

Short term borrowings 1231.60 1228.00 1228.00 2135.00 1523.00

Trade payables 14445.03 22064.77 10083.59 9573.00 8505.00

Other current liabilities 1178016.75 278953.67 348635.88 321120.00 609752.00

Short term provisions 5502.60 60578.31 153359.87 90402.00 22058.00

Total equity & 7185949.95 6141067.20 6141067.20 5241105.00 5094430.00


liabilities

AssetNoncurrent assets

Fixed assets

Tangible assets 13245.91 13430.67 13547.87 10625.00 10728.00

Intangible assets 268.11 294.41 205.54 178.00 86.00

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Capital - - - - -

Work in progress

Intangible assets - - - - -

Under development

Noncurrent investments 5545101.69 4381302.51 4567099.25 4493199.00 4194266.00

Deferred tax assets 4147.51 4944.06 7549.20 468.00 164.00

Long term loans and 67213.27 57062.94 41162.68 51232.00 54618.00


advances

Other noncurrent assets - 1536.00 - 7712.00 15300.00

Current asset

Current investments 342820.64 501019.63 279328.59 47497.00 43409.00

inventories - - - - -

Trade receivables 2064.53 4986.88 58062.48 53751.00 37161.00

Cash & cash equivalents 252163.05 514267.88 1050266.09 559960.00 714472.00

Short term loans & 5426.58 7324.43 4407.08 3853.00 3414.00


advances

Other current assets 953498.66 54897.78 20475.83 12630.00 20812.00

Total assets 7185949.95 6141067.20 6042104.60 5241105.00 5094430.00

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FINANCIAL RATIOS
PARTICULARS 31MAR, 31MAR, 31MAR, 31MAR, 31MAR,

2022 2021 2020 2019 2018

Leverage ratios

Total debt/Equity ratio 0.74 0.37 0.41 0.53 0.62

total assets/ Equity ratio 1.76 1.39 1.45 1.56 1.63

Total debt/Total Assets ratio 0.42 0.27 0.28 0.34 0.38

Interest coverage Ratio 6.10 4.93 7.89 3.01 3.55

Liquidity Ratio

Quick Ratio 0.48 2.81 2.70 1.56 1.24

Current Ratio 1.25 2.98 2.75 1.60 1.28

Performance Ratios

Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00%

Net Margin 8.25% 37.18% 68.62% 56.24% 64.55%

Return on Fixed Assets 609.75% 2195.33% 6588.95% 2826.22% 3434.01%

Return on Equity 2.02% 6.83% 21.73% 9.08% 11.91%

Return on Capital employed 25.69% 41.08% 99.26% 115.10% 197.27%

Total Asset Turnover 0.14 0.13 0.22 0.10 0.11

Fixed Asset Turnover 4.03 3.21 3.25 44.97 47.43

Receivables Outstanding 0 2 16 36 23

Days of Inventory N.A. N.A. N.A. N.A. N.A.

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RATIO ANALYSIS

 LIQUIDITY RATIO:
Liquidity ratios helps to determine how a company quickly can convert the assets and use
them for meeting the dues arise in future course of business. The higher the ratio
represents ability of firms clear the debts and avoid defaulting on payments. 1 If it is more
than it is good usually investors and creditors look above 2

SHOWING THE TABLEOF LIQUIDITY RATIO

YEARS CURRENT CURRENT OUTPUT


ASSESTS LIABILITIES AMOUNT
2022 7185949.95 7185949.95 1

2021 6141067.2 6141067.2 1

2020 6042104.6 6042104.6 1

2019 5241105 5241105 1

2018 5094430 5094430 1

SHOWING THE REPRESENTATION OF LIQUIDITY RATIO

8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4 5

YEARS CURRENT ASSETS CURRENT LIABLITIES OUTPUT AMOUNT

Interpretation:

From the above ratio it can be analyzed with the comparison of five financial years
liquidity ratio in the year of 2022 To 2018 is 1.
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 QUICK RATIO:
The quick ratio is considered a more conservative measure than the current ratio, which
includes all the all current assets as coverage for current liabilities. The higher the ratio
result, the better a company’s liquidity and financial health; the lower the ratio, the more
likely the company will struggle with paying debts. A quick ratio of above 1 is deal.

SHOWING THE TABLE OF QUICK TATIO

CASH & CASH CURRENT


YEARS EQUALANTS LIABILITIES OUTPUT AMOUNT
2022 252163.05 7185949.95 0.035091123
2021 514267.88 6141067.2 0.083742428

2020 1050266.09 6141067.2 0.171023383


2019 559960 5241105 0.106840065
2018 714472 5094430 0.140245719

SHOWING THE REPRESENTATION OF QUICK RATIO

Quick ratio
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4 5

YEARS CASH & CASH EQUALANTS


CURRENT LIABILITIES OUTPUT AMOUNT

Interpretation:

From the above ratio it can be analyzed with the comparison of five financial year’s
quick ratio in the year of 2022 is 0.0350 and 2021 is 0.0837 and 2020 is 0.1710 and 2019
is 0.106 and 2018 is 0.1402.

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 FINANCIAL LEVERAGE RATIO:


Financial leverage ratios, sometimes called equity or debt ratios, measure the value of
equity in a company by analyzing its overall debt picture. These ratios either compare
debt or equity to assets as well as shares outstanding to measure the true value of the
equity in a business.

SHOWING THE TABLE OF FINANCIAL LEVERAGE RATIO

YEARS CURRENT CURRENT OUTPUT


ASSESTS LIABILITIES AMOUNT
2022 7185949.95 7185949.95 1

2021 6141067.2 6141067.2 1

2020 6042104.6 6042104.6 1

2019 5241105 5241105 1

2018 5094430 5094430 1

SHOWING THE REPRESENTATION OF FINANCIAL LEVERAGE RATIO

8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4 5

YEARS CURRENT ASSETS CURRENT LIABLITIES OUTPUT AMOUNT

Interpretation:

From the above ratio it can be analyzed with the comparison of five financial year’s
financial leverage ratio in the year of 2022 to 2018 is 1.

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 PROPRIETARY RATIO:
Proprietary ratio represents portion of shareholders equity to total assets of company.
Ratio signifies capitalization of business ideal ratio is 0.5 if it is equal to 0.5 equal debt
and equity in capital structure, and if ratio less than 0.5 debt funds are more than equity in
capital structure.

SHOWING THE TABLE OF PROPRIETARY RATIO

TOTAL
YEAR EQUITY TOTAL ASEETS OUTPUT AMOUNT

2022 7185949.95 7185949.95 1

2021 6141067.2 6141067.2 1

2020 6141067.2 6042105 1.016378762

2019 5241105 6042104.6 0.867430365

2018 5094430 5094430 1

SHOWING THE REPRESENTATION OF PROPRIETARY RATIO

8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
1 2 3 4 5

YEAR TOTAL EQUITY TOTAL ASEETS OUTPUT AMOUNT

Interpretation:

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A STUDY OF MUNNER MOTORS PRIVATE LIMITED

From the above ratio it can be analyzed with the comparison of five financial year’s
proprietary ratio in the year of 2022 is 1. And 2021 is 1. And 2020 is 1.0163. And 2019 is
0.867. And 2018 is 1.

 DEBT RATIO:
The term debt ratio refers to a financial ratio that measures the extent of a
company’s leverage. The debt ratio is defined as the ratio of total debt to total
assets. Expressed as a decimal or percentage. It can be interpreted as the
proportion of a company’s assets that are financed by debt.

SHOWING THE TABLE OF DEBT RATIO

YEAR TOTAL LIABILITIES TOTAL ASSETS OUTPUT AMOUNT


2022 7185949.95 7185949.95 1
2021 6141067.2 6141067.2 1
6141067.2 6042104.6
2020 1.016378829

2019 5241105 5241105 1


2018 5094430 5094430 1

SHOWING THE REPRESENTATION OF DEBT RATIO

8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0

YEAR TOTAL LIABILITIES TOTAL ASSETS OUTPUT AMOUNT

Interpretation:

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A STUDY OF MUNNER MOTORS PRIVATE LIMITED

From the above ratio it can be analyzed with the comparison of five financial year’s Debt
ratio in the year of 2022, 2021, 2019, 2018 is 1. And 2020 is 1.016378829

CHAPTER 7:

LEARNING EXPERIENCE

The one month internship at Muneer Motors Pvt ltd.Halakundhi, the branch was a very
good learning experience. It helped me to integrate theoretical knowledge which I studied
in classrooms with real time practice in the corporate world.

It provides me with an insight of different departments of an organization and their


coordination and with other departments to achieve the common objective of the
organization.

The study includes the brief study of the core departments of Muneer Motors private
limited. Different officials working in various departments have provided very important
data in this report. Every effort has been made to understand the functions and activities
of various departments as well as the manufacturing process.

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A STUDY OF MUNNER MOTORS PRIVATE LIMITED

BIBLIOGRAPHY

BOOKS:

1. Strategic Management By Azar khazmi


2. Marketing management By S.M Johan(Himalaya Publishing House)

LINKS

www.ashokleyland.com

en.m.wikipedia.org/wiki/Customer service

https://www.justdial.com/jdmart/Hospet/Muneer-Motors-Pvt-Ltd-Hospet-City/9999P8394-8394-
140418114157-J4H9_BZDET/catalogue

https://www.dealerservicecenter.in/list/truck/ashok-leyland/karnataka/bellary/muneer-
motors-pvt-ltd/1824078

https://www.zaubacorp.com/company/MUNEER-MOTORS-PRIVATE-LIMITED/
U29299KA2008PTC047517

ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT, BALLARI Page 42

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