1

A STUDY ON Marketing Research and Operations of GOBIND INDUSTRIES LIMITED

GOBIND INDUSTRIES PVT LTD ABHISHEK CHOPRA BBA(2010 - 2013) Sap Id: 500012208

UNDER GUIDANCE OF:Ms. SHIKHA AGARWAL (MANAGING DIRECTOR)

(SUMMER INTERNSHIP REPORT IN PARTIAL FULFILLMENT OF THE AWARD OF FULL TIME BACHELORS IN BUSINESS ADMINISTRATION)

University Of Petroleum & Energy Studies

DECLARATION
I Abhishek Chopra a student of BBA (Oil & Gas Marketing) 5th Semester at University Of Petroleum & Energy Studies hereby declare that this project report under the title Marketing Research & Operations of Gobind Industries Limited is the record of my original work under the guidance of Ms. Shikha Agarwal. This report has never been submitted to anywhere else for award of any degree/diploma.

Abhishek Chopra BBA Semester 5 th

ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Ms. SHIKHA AGARWAL, (Designation) Managing Director, (Company) Gobind Industries Ltd, for her able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Gobind Industries Ltd, for the constant support and help in the successful completion of the project.

TABLE OF CONTENT Chapter No.

1 2

Subject
Introduction to the topic & objectives of study

Page No. 67 8 20

Industry Profile:

Introduction Historical Perspective Farm Machinery Industry in INDIA Agriculture Service Marketing & After Sales Services Popularization of Agri Machinery Future thrust in Agriculture Mechanization Future Perspective in Agricultural Machinery Manufacture

Product & Service Company Profile:

21 34

About the Company Business of GOBIND INDUSTRIES LTD. History of GOBIND INDUSTRIES LTD. The Founding Philosophy Quality Policy

Issues & Challenges Facing the Organization

Distribution Network Organization Chart Strategy and Implementation Summary Management Summary

35 50

5 6 7

Strategic Issues & Problems SWOT Analysis

51 53 54 57

Reflections on what has been learned during 58 summer internship

Chapter No. 8

Subject Research Methodology:

Data Interpretation Analysis & Findings

Page No. 59 - 78

9 10 11 12

Recommendations Conclusion Bibliography Appendix

79 80 81 82 83 - 85

CHAPTER I INTRODUCTION THEORETICAL PRESENTATION OF THE TOPIC

The study was done on Gobind Industries Limited, an agricultural implement manufacturing organization. The topic of the Project report is MARKETING RESEARCH AND OPERATIONS , the study was done in order to find the companys current market holding in the Agricultural machinery manufacturing industry residing in Uttar Pradesh, Quality, target market, and marketing strategies that can be implemented such that organization can be better profitable organization.

Objectives of the study

1 To understand and observe the marketing work in Gobind Industries.

To seek out the difference between theory and practical work.

To observe the functioning of marketing and sales department of Gobind Industries.

To gain knowledge about different strategies of Gobind Industries.

To develop new skills.

To have a direct contact with the employees of Gobind Industries to learn from them.

CHAPTER II INTRODUCTION AND OBJECTIVES

INDUSTRY PROFILE
INTRODUCTION
Farm mechanization helps in effective utilization of inputs to increase the productivity of land and labor. Besides it helps in reducing the drudgery in farm operations. The early agricultural mechanization in India was greatly influenced by the technological development in England. Irrigation pumps, tillage equipment, chaff cutters, tractors and threshers were gradually introduced for farm mechanization. The high yielding varieties with assured irrigation and higher rate of application of fertilizers gave higher returns that enabled farmers to adopt mechanization inputs, especially after Green revolution in 1960s. The development of power thresher in 1960, with integrated Bhusa making attachment and aspirator blower and mechanical sieves for grain and straw separation, was the major achievement of Indian engineers. These threshers were widely adopted by the farmers. Gradually demand for other farm machinery such as reapers and combine harvesters also increased. Equipment for tillage, sowing, irrigation, plant protection and threshing has been widely accepted by the farmers. Even farmers with small holdings utilize many improved farm equipment through custom hiring to ensure timeliness of farming operations. The present trend in agricultural mechanization is for high capacity machines through custom hiring and for contractual field operations. However, mechanization of horticulture, plantation crops and commercial agriculture is yet to be introduced in the country. The pace of farm mechanization in the country accelerated with the manufacture of agricultural equipment by the local industries. With the modest beginning of manufacture of tractors in 1960s with foreign collaboration, to-day the Indian farm machinery industries meet the bulk of the requirement of mechanization inputs and also export. The manufacture of agricultural machinery in India is quite

9 complex comprising of village artisans, tiny units, small-scale industries, State AgroIndustrial Development Corporations and organized tractor, engine and processing equipment industries. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsmen (blacksmith and carpenters) and small-scale industries. The small-scale industries depend upon public institutions for technological support. These industries, however, upgrade these designs and production processes with experience. Organized sectors confine to the manufacture of machines like tractors, engines, milling and dairying equipment.

These industries have adopted sophisticated production technologies, and some of them match international standards. The enhanced scope of import of technology (product designs and manufacturing process) by organized sector and entry of foreign investors is likely to accelerate exports. Since cost of production of farm machinery in India is more competitive due to lower labour wages, the importers from various Countries will find Indian farm equipment more attractive. Indian products, however, shall need improvements in quality for gaining major export growth. For this, mass production of critical and fast wearing components and their standardization would greatly help.

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HISTORICAL PERSPECTIVE

Blacksmiths and carpenters have been the traditional fabricators of agricultural equipment in India. The early agricultural mechanization in India was greatly influenced by the technological development in England. In 1889, Watts and Kaisar introduced ploughs, corn grinders and chaff cutters Cawnpore (now Kanpur) Experimental Farm in Uttar Pradesh. Sardar Joginder Singh (1897-1946), who was the Agriculture Minister in the Punjab Government (1926-37), introduced the steam tractors in India in 1914 for reclamation of waste land and eradication of Kans. Horse drawn and steam tractor operated implements were imported during the latter part of the 19th century. The horse drawn equipment imported from England were not suitable for bullocks and he-buffaloes used in India and thus, were suitably modified by small scale manufacturers to suit Indian draught animals. With the establishment of Allahabad Agricultural Institute, Allahabad in 1942, the development activities in agricultural machinery accelerated and as a result bullock drawn Meston, Shabash and Wah-Wah ploughs were introduced in Uttar Pradesh, manufactured by the Agricultural Development Society, Naini in early forties.

The Indian farmers gradually responded to farm mechanization technology especially after Green revolution in 1960s. High yielding varieties with assured irrigation and higher rate of application of fertilizer gave higher yields and better economic returns. This enabled the farmers to start adopting mechanization. The development of power thresher with integrated Bhusa making attachment and aspirator blower and mechanical sieves for grain and straw separation in 1960s was the major achievement of Indian engineers which was widely adopted by our farmers. Gradually demand for other farm machinery such as reaper and combine harvester also increased. Demand of tractors in the country was met through importation until 1961 when Eicher Tractors Ltd. and Tractors and Farm Equipment Ltd started manufacturing tractors with foreign collaborations. To meet the additional demand, importation continued up to 1977. Meanwhile many other industries started manufacturing tractors with foreign know how such as Gujarat Tractors Ltd

11 (1963), Escorts Ltd (1966), International Tractors (India) Ltd. (1966), and Gobind Industries Ltd (1971). Punjab Tractors Ltd. started their production with indigenous Technology in 1974. Many more industries started manufacturing tractors since then with indigenous and foreign know how.

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FARM MACHINERY INDUSTRIES IN INDIA

The adoption of mechanization technology depends upon the local manufacture and aftersales-services besides credit and financial incentive provided by the Government. The manufacture of agricultural machinery in India is quite complex comprising from village artisans, tiny units, small scale industries to State Agro- Industrial Development Corporations and organized tractor, engine and processing equipment industries. Traditional hand tools and bullock drawn implements are largely fabricated by village craftsmen and small scale industries. Organized sectors manufacture sophisticated machinery such as tractors, engines, mills and dairying equipment. The small-scale industries seldom have R&D facilities and they depend upon public institutions for technological support. They require not only drawings but also prototypes and technical guidance to manufacture the equipment. These industries however, upgrade the technology with experience.

Classification of Industries
The classification of industries in India is based on total capital investment (plant and machinery) rather number of workers employed. These are (i) village craftsmen, (ii) cottage industries, (iii) tiny industries, (iv) small scale industries, (v) medium scale industries and (vi) large scale industries. This classification was done to help the smallscale units through incentives and marketing support.

Category Village artisans and cottage industries Tiny industries Small scale industries Medium scale industries

Maximum Capital Investment Unorganized in rural areas Rs. 15 lakhs Rs. 1 crore Rs. 5crores

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Village craftsmen
Village artisans are the main source of supply and repair and maintenance of hand tools and traditional implements are made by village craftsmen. These include implements and tools like khurpi, spade, sickle, local ploughs, bakhar, sowing devices, yokes, patela, leveller, oil ghanis, grinding wheels, hand mills, handoperated milk churning tools, winnowing devices, sieves, wooden storage structures, bullock carts, manual water lifting devices etc. If village artisans are properly trained they will accelerate the adoption of mechanization inputs due to their proximity with farmers.

Tiny and small-scale industries

The tiny and small scale units fabricate bulk of improved agricultural machinery such as ploughs, cultivators, disc ploughs and harrows, seed drills, planters, plant protection equipment, reaper harvesters, combine harvesters, threshers, cleaners, graders, mills, crushers, oil expellers, diesel engines, irrigation pumps, dairy machinery etc. Agricultural machines are reserved for small-scale units. There are more than 18000 such units scattered all over the country but have concentration in selected regions.

Some of these units also fabricate implements and equipment for tractor and power tiller manufacturers. They may lack good machine tools and heat treatment facilities. Some of them are more organized and have better fabrication toolings and thus are able to manufacture better quality machinery. The bulk of the farm machinery is made by the small-scale industries. They use materials from mild steel to medium carbon steel. Heat treatment practices are generally inadequate except in few industries manufacturing knife & tillage tools. Equipment manufactured by the SSI units includes Soil working tools, seeding & planting equipment, hand hoes, sprayers & dusters, harvesting & threshing equipment, like reapers, threshers, combines, maize shellers, decorticators, cleaners, graders, mills, oil expellers etc.

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Regions having concentration of agricultural machinery Northern region Barabanki, Ludhiana, Moga, Jalandhar, Graya, Batala, Hoshiyarpur, Karnal, Panipat, Faridabad, Delhi, Agra, Ghaziabad, Meerut, Rudrapur, Muzaffarnagar, Lucknow, Kanpur, Fatehpur and Allahabad. Western region Bombay, Pune, Nagpur, Ahmed Nagar, Sangli, Kolhapur, Sholapur, Ahmedabad, Baroda, Anand, Junagarh, Bhopal, Indore, Dewas, Bina, Khurai, Raipur, Vidisha and Gwalior. Southern region Hyderabad, Guntur, Anantpur, Kakinada, Coimbatore, Madurai, Chennai, Salem, Palghat, Ernakulam, Kochin and Bangalore. Eastern region Calcutta, Vardhaman, Durgapur, Bhubaneswar, Sambhalpur, Patna, Ranchi, Dhanbad and Muzaffarpur.

Organized farm machinery industries

The medium scale and large scale industries manufacture diesel engines, electric motors, irrigation pumps, sprayers and dusters, land development machinery, tractors, power tillers, post harvest and processing machinery and dairy equipment. There are 13 tractor, 2 power tiller, 200 diesel engine, 600 irrigation pump, 48 combine and 188 earthmoving machinery manufacturers. The marketing of agricultural machinery by these industries is through their network of dealerships and, therefore, these manufacturers are able to provide effective after-sales service. These industries upgrade their product and process technologies through their own R&D efforts, in addition to technological support from external agencies.

15 Today, India is recognized as a leading country in the world for the development and manufacture of agricultural implements and equipment. The range of equipment includes tractors, harvesting and threshing equipment, plant protection machines, irrigation and drainage pumps, sprinkler systems, land development machinery, dairy and agro-processing equipment, etc. India is the exporting increasing volumes of these to various countries including USA, Africa, Asia, etc.

Status of farm machinery industries in India Equipment manufacturers 1. Agricultural tractors 2. Power tillers 3. Earth movers 4. Pumps 5. Sprinkler set 6. Drip irrigation system 7. Plant protection equipment 8. Combines 9. Reapers 10. Threshers 11. Seed drills 12. Ploughs, cultivator and harrows 13. Tractors parts and accessories 14. Earth moving machinery and parts 15. Diesel oil engines 16. Rice processing machinery 17. Sugarcane crusher 18. Chaff cutter 19. Dairy and food industries 20. Village craftsmen No. of units 13 2 3 600 35 35 300 48 60 6000 2500 5000 546 188 200 300 50 50 500 1 million

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Agricultural Machinery Marketing and After Sale Services

The large and medium scale manufacturers have well organized distributors and dealers throughout the country to undertake advertising and product promotion in their respective territories, conduct product awareness training programmers for the prospective customers, provide after-sales-service to the customers including free services, repair and maintenance, supply of parts, etc. Therefore, this organized sector has the whole of the country as their market due to which their production volumes are large, and their information feedback about their product performance, improvements required in design, production processing or quality, and the new requirements of the farmers to undertake product developments.

Very few small-scale industries have established their marketing network and therefore provide service support in their premises. In the absence of standardization of parts and components farmers are compelled to carry their machines to the manufactures for repair and replacement of parts and components. Due to this, their market size is limited to their proximity, and they are not able to develop their businesses. The village artisans on the other hand are located in the villages and therefore provide immediate attention to the needs of the farmers in their immediate neighborhoods. Therefore, the tools and implements, etc. made by them are against specific requirements of individual customers.

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Popularization of agricultural machinery

The assimilation of R & D requires an effective technological infrastructure of institutions and services to develop and test prototypes, to set up pilot plants for intensive evaluation and extensive demonstrations besides, training and credit support. New technology also requires network for transfer of technology to the manufactures. Popularization of agricultural machinery in the country is undertaken by the Provincial Governments through Department of Agriculture or Department of Agricultural Engineering. The activities are coordinated by the Department of Agriculture in Cooperation with the Ministry of Agriculture, Government of India. The Ministry of Food Processing promotes technology related to agro-processing. The extension system deals with the first-line extension projects with a view to: (i) demonstrating the latest technologies to the farmers as well as the extension agencies; (ii) testing and verifying the technologies on the farmers field (iii) providing opportunities to get firsthand scientific feed-back; (iv) developing extension or technological models for the state extension systems; (v) providing training and communication support; and (vi) promoting research in transfer of technologies.

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FUTURE THRUSTS IN AGRICULTURAL MECHANIZATION

India is a large country with wide-agro ecological diversity having predominance of rain fed agriculture, with irrigated agriculture limited to 34% only. Farm holdings are small due to higher population density and land fragmentation will continue due to Laws of Inheritance and Hindu Succession Act. Majority of the farmers have limited surplus money to modernize farms or to invest in improved inputs. Draught animals and increasing agricultural workers population may remain to be the major source of farm power for soil manipulation and for crop handling, particularly in Hill and Mountain regions. Mechanical power for tillage, irrigation, harvesting and threshing will be preferred, including on custom hiring basis. As a result of GATT agreement, prospects of agro-export are likely to increase and product quality standards stipulated under WTO would encourage more and more farmers to adopt modern agricultural production technologies. The future agricultural mechanization technology package therefore may have to; be eco-friendly utilizing land water and bioresource catering to the varied group of farm holders, facilitate farming operations which are arduous and hazardous, increase productivity and conserve resources through effective utilization of chemical, biological and mechanical inputs, and modernize commercial agriculture to facilitate agro-export.

Keeping above objectives, the mechanization policy may have to be distinctly different to serve hill agriculture, low lying water logged soils; rain fed and irrigated lands and regions having agro export potential.

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FUTURE PERSPECTIVE IN AGRICULTURAL MACHINERY MANUFACTURE

Equipment for tillage, sowing, irrigation, plant protection and threshing has been widely accepted by the farmers in India. Draught animal and human power in India will continue to be used, but these are inadequate to ensure timeliness of agricultural operations. Even farmers with small holdings utilize selected improved farm equipment, including through custom hiring. The future mechanization strategy may have to be based on agroecological diversity and economic disparity of the farmers. The present trend in agricultural mechanization is for high capacity machines to be used on custom hiring and for contractual field operations.

Rice

mechanization,

sugarcane

mechanization,

cotton

mechanization,

potato

mechanization, horticulture mechanization, green house and covered cultivation, drip and micro irrigation are new emerging areas which need attention of Agricultural Engineering Institutions and industries for their development, production and marketing.

Water is a scarce commodity and in future with increasing demand for more irrigation water, concerted efforts will be needed for controlled application of water through drip, sprinkler and micro-sprinkler systems to economize use of water and improving water use efficiency.

With the shift in agriculture towards diversification and agri-business, substantial areas will go under horticultural crops. This will also help to export good quality high value agri-products for better returns to farmers and to earn more foreign exchange. The green house technology offers ample scope for increasing productivity particularly of high value cash crops like exotic fruits, flowers and bio-tech plants. Design of green house with environmental control mechanized cultivation and product-handling technology package will assume greater importance.

20 Presently little effort has been made to mechanize hill agriculture, where there is tremendous potential of growing horticultural crops, flowers etc. In future this calls for developing appropriate technologies for mechanization.

In order to enforce quality, reliability and safety in the manufacture of agricultural implements, manufacturing of critical components need to be standardized and encouraged for mass production by medium and large scale manufacturers. Keeping long standing demand of farmers and the Ministry of Agriculture and on the recommendation of the Advisory Committee of the Ministry of Industries, the Union Budget of India 1998-99, announced the exclusion of farm implements and tools from the list of items reserved for manufacture by small scale industries sector to enable the farmers to get benefit of wider range of implements and tools at competitive prices, and with requisite after sale- service. The decision of the Government of India to de-reserve the manufacture of farm machinery will help the organized sector to bring latest farm machinery technology for accelerated adoption by the farmers. The small-scale industries in turn will adopt the technology for local manufacturing at a much lower cost. This will help the small-scale sector to become more competitive and to enlarge their market size.

However, the constraints experienced in the growth of farm mechanization so far need to be dealt with so that the farmers are enabled to adopt new methods to produce more, to earn more through gains in productivity, quality of produce, higher prices, etc, for raising their standards of living and better life styles. The critical constraint factors are: Reliability and quality of agricultural machinery. Availability of products, spare parts and after sales-services in close proximity. Availability of Bank credit on terms where currently the farmers have to mortgage both the equipment purchased and his land. Lack of effective consumer protection in rural areas for redressel of cases of product problems, and poor after-sales- services, etc.

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COMPANY PROFILE

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CHAPTER 3 ABOUT THE COMPANY

Gobind Industries Ltd. is a manufacturer of heavy Agriculture equipments with one location in industrial Estate area, Barabanki , U.P. The company began its operations since 1971 with little capital investment. The company combined 40 years of experience in the Agriculture machinery and Implements field to generate a large customer base, where until recently owned 80% of the local Potato machinery market. The company is specialized into Potato planting and mechanization. The company's Directors decided to expand their field of products and to diversify into Cereal, vegetables and livestock. Gobind Industries Ltd. hopes to initially make a successful effort to secure start-up financing to implement a new business opportunity.

Company Ownership
Gobind Industries Ltd. is a limited liability company. Mr. Kamal Agarwal, Mr.Sushil agarwal are the shareholders, owning 50% and 50% of the share capital, respectively.

Location & Facilities

The company has one office currently located in Industrial Area, at Our Town. The factory is only 3.5 kilometers from the center of town and is located on the front line of the industrial area. It has a 500 sq. meter showroom and is visible from the main road. The factory has 10000m2 of shop floor area, where all manufacturing equipments and facilities are located and used for either maintenance or manufacturing of equipments and implements. The factory facilities are open from 07:00 - 17:00 hours, Monday to Saturday. The company does receive after hours calls or on weekends and provides assistance as needed.

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Company History
Gobind Industries Ltd. was founded in Our Town Barabanki,U.P in 1971, to manufacture and to sell a complete A-Z series of agriculture mechanization. The company was formed by the Agarwal family: Mr. Kamal Agarwal and Mr. Sushil Agarwal Gobind Industries Ltd. has its principal offices and manufacturing unit of 10000 m2 , located at Our Town, Industrial estate area, Barabanki.

Gobind Industries Ltd. is an agriculture machinery and implements manufacturer importer and authorized reseller that sells A-Z series of heavy machinery and systems for

Potatoes, Vegetables, Cereals, Stubble, and beach cleaning turn key projects and machinery. We have also patented and piloted four innovative machinery and systems the last 6 years for Vegetable and Cereal productions. Is also the sole and exclusive agent and dealer of 100 main agriculture manufacturers in India. It has managed to create communication links and to export its series of machinery in Asia the last 3 years. Gobind Industries Ltd. has an experienced management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes Mr.Kamal Agarawal and Mr Sushil Agarwal lives in Barbanki, Uttar Pradesh. Both Owners have compiled an extensive list of customers/potential customers, vendors, and contacts for equipment consignment.

New Opportunity
Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that India has available 256 billion rupees for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers' (Agriculture Producers') product quality and to be able to export goods into Indian markets at competitive prices. We have a good reputation locally, but sales are slow because local farmers cannot buy new equipment every year. With exports admission to the India, this large amount of funding will let

24 farmers buy more and newer equipment. However, the local farmers will only buy equipment they know to be effective; the best way to convince them, in our experience, is to bring a sample of equipment to their fields to demonstrate. Gobind Industries Ltd. has good earnings and assets, but we do not have enough cash on hand to buy the wide range of demonstration equipment we need to meet the sales potential created by the upcoming Government funds to our customers. The company intends to employ local individuals and to provide extensive training about its products and services in order to promote its sales. Loyal customers help to expand the company's business area by word-of-mouth. We have already identified a list of potential customers and communities that are willing and able to try its new product series. Even more so, the pilot equipments will be used for the upcoming October International fair for Agriculture and Livestock that will take place, at Nicosia. And also, the company plans to participate in the Thessaloniki state Agricultural fair that will take place on the 28th January next. As a sole agent and sales representative for Cyprus, Greece and Syria for some series of Wheat planting systems, the company needs to promote its series of products to all available marketing opportunities. The company is seeking funding of the amount of 50.00,000 for the purpose of expanding the business. Expansion plans include the purchase of additional equipments allowing the company to promote and to demonstrate its products and services, and also by hiring additional personnel. This loan will be paid back in 6 years, with principal payments of Rs.5, 20,000/year, at 8.5% interest. This is on top of the existing 10,000 loan, which will be paid back on the same time frame, at roughly Rs.166600/year. With this new demonstration equipment, and well-funded customers, our projected revenues for Year 1 are expected to reach Rs. 3,00,00,000, and up to Rs.4,00,00,000 by Year 5.

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PAST PERFORMANCE

4 Sales 3 Gross Margin Net Profit 2

0 2009 2010 2011

Objectives
Gobind Industry Ltd. directors believe that, there is a current untapped market opportunity for agriculture machinery because, existing providers of agriculture machinery and implements are too diversified to serve the increasingly specialized needs of the potato segment, by ignoring the crop needs for mechanization of Vegetables, Cereal, wheat and livestock sectors. The company's coverage area is constantly increasing, as customers are becoming aware of the company's presence. Indian community offers a real business opportunity for such expansion, because now, there are 946 million available for agriculture funding and support by Indian agriculture committee, left to the Indian Government, to fund the Local Farmers and Agriculture producers for upgrading their production effectiveness and efficiency.

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Mission
Gobind Industries Ltd. mission is to become The exclusive full-service equipment manufacturer and authorized importer, sales, and service company in agriculture machinery and implements in Barabaki and to expand its business to Middle East, with the ability to satisfy all needs of Livestock farmers and Agriculture producers. Therefore, the company's strategy is to create a limited geographical niche for itself, where there will be no potential competitors. Gobind Industries Ltd. aims to offer highquality agriculture equipments and machinery for crop mechanization of potato, vegetables and wheat crops at a price which is competitive in comparison to other premium-quality commercial machinery manufacturers in the local market.

Keys to Success
Gobind Industries Ltd.'s keys to success will include: 1. A high level of quality in its product line. 2. A-Z equipment mechanization series for Vegetables, Cereals, Potatoes & Livestock. 3. Maintaining and growing its referral networks to generate new and repeat sales. 4. Significant investments in research and development of machinery with the aim to focus on precisely controlled equipment (Coriander seed, carrot machines etc.). 5. Improving efficiencies of operations and to reduce the crop producers operating costs. 6. Link with consulting offices for Agriculture and Scientific support to its Customers. 7. The machinery and Systems of Gobind Industries Ltd. aim to help Indian farmers and Agriculture producers to export their products in the European market and to obey all Indian directives for product quality.

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THE FOUNDING PHILOSOPHY

Over six decades back two young men set out on a journey together armed with little beyond intelligence, business acumen and determination and dreams aplenty. They believed that India could only achieve total freedom with a breakthrough in the field of agriculture and mechanization would have to rule the fields. Their youthful enthusiasm had kindled the hope that one day they would make a mark of their own. They were in fact writing the first chapter of what has come to be widely recognized as one of the greatest success stories in Indian industry.

Gobind Industries came into being with a vision. A vision that eschewed easy paths to profitability, and sought instead for ways to make a contribution. A vision that led two young brothers, Kamal Agarwal and Sushil Agarwal, to branch out of their family business and institute ventures that were to become the foundations of Gobind Industries Limited. in 1971, Gobind Industries Agents Limited was born at Barabanki , India with Mr. Kamal Agarwal and Mr. Sushil Agarwal as Managing Directors . It was a trendsetting marketing house driven by the same business philosophy, which had given their family enterprise an unrivalled reputation: customer concern. Not long afterwards, this driving ambition to go beyond the expected led Kamal Agarwal to the first of his many successful business insights - the discovery of the great business potential that lay in India's villages. This led to the launch, in 1971, of Gobind Industries (Agriculture and Machines) Ltd. Gobind Industries, literally 'escorting' their products and services to the customer while most other businessmen were just selling.

Beyond the growth of the organization, these principles have ensured that Mr.Agarwals contribution to the cause of industry and the consumer will endure. He pioneered the revolutionary concept of 'interdependence' between ancillary and large industries,

institutionalizing vendor development and in the process building at Barabanki and the entire belt of townships in the region. He introduced the discipline of service going before marketing, reassuring the customer that Gobind Industries would stay with them that they were here for the long run. He built lasting alliances with an array of the world's most respected names in tractors, Agricultural equipments. Going further, he created institutions devoted to value engineering and training, not only as investments in the company's future but also as catalysts for the

28 enhancement of Indian industry as a whole the Gobind R&D Centre.

Gobind Industries is testimony to the valor, vision and values of its Founder Mr.Kamal Agarwal. He remains the inspiration for our courage, spirit of adventure and ability to Think Big. These qualities are his enduring legacy and have inspired and encouraged us down the decades and will continue doing so in all our endeavors.

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Products and Services

Gobind Industries Ltd. is a manufacturer and Authorized dealer of imported Agriculture machinery and implements. The company is a manufacturer of the Potato A-Z mechanization such as Potato Planters, Diggers, Harvesters, Inter row cultivators, Taper Machines and Potato Fork-lift tractor mounted machines, Soil Preparation Machinery and Implements, Cereal Machinery and Implements, Transplanting machinery, Irrigation systems, Vegetable small seed planting machines, Wheat and Barley mechanization, Animal food factory and packing systems and Fire Fighting units designed for Agriculture areas. Gobind IndustriesLtd. Takes pride in having brought several new items for Livestock and Vegetable equipments that were otherwise unknown, such as the manure spreader machines, Cereal mechanization, and soil preparation machines. We also have designed and patented a new vegetable seed planting machine for Coriander, Onions, Beans, peas, broad beans, ground nuts, garlic, etc. Gobind Industries Ltd. has obtained the authorization to be a distributor for Beach Cleaning machines. We are also a sole agent for beach creating technology and systems implementation.

Cereals
In the case of cereals, the farmers plant 50-120 kgs of seeds per hectare, while they could have the same results and even more production with 18 kgs seed per hectare. Cereal planting systems can save up to 70-100 kgs seed that is wasted in each hectare without reason.

Stubble Cultivator Implement

Stubble is an easy and inexpensive food for cows, sheep and other animals, and it decreases the use of fertilizers by 50%. Farmers who acquire the knowledge to increase stubble create their own forage, with the utilization of stable and barley. If stubble is left in the fields, it can cause serious problems to the Wheat producers. The result is that soil is overloaded, there is a decrease of the fertility of soil and there is a continuous danger

30 of fires which can burn hundreds of hectares of virgin forests and cause disasters to the environment as happens very often in summer. Our unique Stubble cultivator machine can increase Wheat production and also can decrease the producer's operating costs. By not exploiting stubble, farmers waste of tens of millions of kilograms per year.

CULTIVATOR

Potatoes Producer
The potato producers lose huge quantities of potatoes that are abandoned in the fields without being collected, because they are only 5-10 cm below soil surface. From research, we found out that more than 1-1.5 tonnes of potatoes are abandoned in the soil in each hectare (1,000 t. meters), and in monetary terms we can say that the profit of the producer is abandoned in the field. Our unique series of Potato mechanization systems and hectare that are exclusively manufactured into our Factory are tested for simplicity and are made with the best materials can warranty the potato quality and Low operating costs to the potato producer. These machines are satisfying Indian directives requirements for Potato quality.

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Wheat Planting Machines

The Wheat producer, in order to plant seed into 100 hectares, needs to use 250 kgs of Seed and to go to his field at least 4 times. This means 4 times more operating costs and even more so, Wheat prices dropped by 40% with the Barabanki accession into U.P. Our machine is designed such that it can do all four processes--soil cultivation, fertilizing and planting on line, seed cover with soil and corrugation--in one go. The producer needs only 80 kgs per 100 hectares, instead of 250 kgs. Fertilizer is dropped just 1 cm from soil surface, reducing fertilization costs by 50%, because the fertilizer is not moved away by wind or rain.

Seed Vegetable Planting Machines

Through research and development over the last 3 years, we have managed to create and to patent a unique Seed vegetable machine for a variety of vegetables such as onions, beans, garlic, coriander, etc. This machine is capable of planting all mentioned Vegetables by minimizing operational costs by up to 70% and can have the products made as per European Union directives as concern Size, Weight and Quality.

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Our Products
Rotovater
1. Rotovater

Thresher
1. 3. 5. 7. Super Shakti Gold Thresher Hadambe Paddy Thresher 2. 4. 6. Super Action Punjab Thresher Maize Thresher

Cultivator
1. 3. 5. 7. Cultivator Bail Harrow M.B. Plough Paddy Harrow 2. 4. 6. Disc Harrow Lining Cultivator Disc Plough

Chaff Cutter Machine

1. Chaff Cutter Machine

Seed Drill & Zero Till Machine

1. Seed Drill Machine 2. Zero Till Machine

Sugarcane Planter
1. 3. 5. 7. Agar Machine Razor RMD (Ratoon Management Device) Sugarcane Cutter Planter 2. 4. 6. Cane Planter (Double Drill Type) Lining Cultivator RBS (Raised Bed Seeder)

33

Cane Crusher
1. Special Cast Iron Body 2. Steel Body

Reaper
1. 3. Straw Reaper Reaper General 2. Paddy Reaper

Potato Farming
1. Potato Planter 2. Potato Digger

Combine Harvestor
1. Combine Harvestor

Trolly
1. 3. Trolly General Trolly Heavy Duty 2. Trolly Pressure

Winower Fan
1. Winower Fan Manual 2. Winower Fan Power Auto

Other Products
1. 3. Leveler Shakti Leveler General 2. Leveler Rajasthani Model

34

Quality Policy Of GOBIND INDUSTRIES LTD.

We shall strive to continuously improve to meet the ever rising expectations of our customers at the lowest cost. Each one of us must fulfill the need of our customers, both internal and external, with the highest degree of commitment, thereby creating a quality organization geared to ensure total customer satisfaction and the sustained health and prosperity of our business

35

CHAPTER 4 ISSUES AND CHALLENGES FACING THE ORGANIZATION

1. The performance of the Agricultural machinery industry is directly and closely related to the performance of the agricultural sector. Even now there is a heavy dependency on monsoon and a majority of farms are still rain fed.

2. Apart from the dependency on monsoons irrigation infrastructure is also suboptimal.

3. Furthermore, there is a huge pressure on the existing agricultural land. The Net Sown Area across States has either remained constant or changed slightly and efficient land utilization is approaching the peak level in all states.

4. Many farmers still lack access to finance and depend on money lenders. Gobind Industries continues to focus on creating additional mechanisms for access to cash.

5. All the employees are not allowed to access the internet facility which hinders the cooperation among various departments.

6. To maintain the goodwill of the company in the market.

7. To strive effective strategies and policies in order to survive in business environment.

36

Market Analysis Summary

The overall market for agriculture machinery and implements is immense. This business plan has identified over 1,800 agricultural producers and farmers in the local market that have a potential need to maintain and/or win customers or even more so are striving to survive. The funding schemes for agriculture and livestock support set by India will allow them to stay competitive and this business opportunity is all about it. Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that India has available 256 million for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers' (Agriculture Producers') product quality and to be able to export goods into Indian markets at competitive prices. In reality, all agriculture and livestock businesses are in need of our products, because there are only 3 potential competitors locally who import or manufacture agricultural machinery and implements. Those involved with Potato mechanization have copied some of our unique series of products, whereas only 2 of them are involved with Cereal and Wheat implements.Gobind Industries Ltd. has all machinery and implement series of equipments that will allow the Cypriot agriculturer and Livestock producer to stay competitive into Indian markets.

Market Segmentation
Our market segmentation scheme is fairly straightforward, and focuses on all agricultural and livestock sectors. The information contained in our customer analysis table is taken directly from the last statistics report published by the Ministry of Commerce and Industry and

Tourism website and clearly shows that our largest market potential is more concentrated on the following sectors:

Potato Crop Mechanization Cereals Crop Mechanization, including Wheat and Barley Vegetables crop Mechanization

37

Packing Technology Livestock Machinery Beach Cleaning Machines and Beach Creation methodologies Fire Fighting Systems for rural areas

For more than 35 years, the company has owned almost 80% of the potato mechanization market. However, due to negative growth opportunities in this sector the last years, the prospects of this sector were unclear. Therefore, the company in order to survive has decided to invest in sectors such as new vegetable machine designs that will satisfy the vegetable producer needs (lower operational costs, low investment costs, simple machines, etc.) and also simultaneously through dealership of the main Indian agriculture machinery and implements manufacturers to become their sole agent and promoter in Barabnki and the Middle East area of Uttar Pradesh. After 40 years of experience in agricultural machinery and implements manufacturing and design, the company has identified its strengths and weaknesses and has focused on vegetable, Cereals, Livestock and Beach Cleaning implements and technologies, allowing it to offer the same quality of service and support as are afforded by the larger businesses. The strategy used for years was to bring in selected products, and then attempt to find a buyer. This resulted in inventory overstock, and obsolescence. The company already knows the customers' needs and wants, therefore, as part of its marketing mix has decided to use the start up funding for buying a series of 6 main machinery that will have the most predicted demand and via marketing and promotion will try to promote its complete series of products. After sales, services and spare parts provision to repeat customers is also part of our new Marketing strategy. The aim of the new marketing approach is to keep the existing customers and not to start building a new market share. Long-term relationships with customers are one of the key-success factors mentioned earlier and were one of the reasons that company survived and earned their business.

38 The company expects that by implementing a correct marketing mix, we will increase our share in this market segment by offering the same value-added service and support benefits that its commercial clients demand.

Market Analysis
2007 Potential Customers Potato Crop Mechanization Cereals Crop Mechanization Vegetables Crop Mechanization Beach Cleaning Machines and Beach Creation systems Fire Fighting Systems Packing Technology and Equipments Livestock Machinery Total Growth 2% 5% 3% 465 370 175 474 389 180 483 408 185 493 428 191 503 449 197 2008 2009 2010 2011 CAGR 1.98% 4.96% 3.00%

2% 1% 5% 7% 3.19%

125 280 180 72 1,667

128 283 189 77 1,720

131 286 198 82 1,773

134 289 208 88 1,831

137 292 218 94 1,890

2.32% 1.05% 4.90% 6.89% 3.19%

39

Target Market Segment Strategy

Our choice of target markets is based on comprehensive experience within

the agriculture industry coupled with an in-depth understanding of the customers' needs for more than 40 years. We have taken a unique approach to satisfy our customers needs and wants and also simultaneously to answer all their questions and to air their fears about the effectiveness and efficiency of our products. The company identified that only the on-site testing of the agriculture machinery in the customers' fields could calm down even the most resistive and questionable customer. The company cannot be successful by just waiting for the customer to come for ordering. Instead, we must focus on the specific market segments whose needs match more to our series of products. Focusing on targeted segments is the key to company's future. Therefore, the company's focus and marketing message will be not only the customer needs but also the after service and spare parts services offered. A good marketing mix will develop company's message, communicate it, and fulfill its commitment to excellence. Developing a market strategy is a departure from the way the company has been managed in the past. We will change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and market-focused organization, aiming in sharing responsibility for customer satisfaction. We will accomplish this paradigm shift through the implementation of a balanced and continuous market research for agriculture needs and technology demands. Planning and implementing specific strategies for each of the seven identified segments will be an ongoing process, and we will consult with marketing specialists, and our manufacturers, to further refine these efforts as we develop an effective marketing plan.

40

Competition and Buying Patterns

Our customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust. The Indian farmer and necessary, and when he identify the need, he wants immediate delivery. Gobind Industries Ltd.'s closest competitors are located in same town. following five companies: GYAN INDUSTRIES PVT LTD. AGRICO INDUSTRIES PVT LTD. VISHAL PVT LTD. SWARAJ PVT LTD. MAHINDRA & MAHINDRA PVT LTD. All agriculture producers is the last minute man. He plans to buy machinery only when it is critical and above listed competitors is offering standardized agriculture forbidden and implements for the potato industry and only 2 seek to satisfy somehow other sectors of the agriculture and Livestock Industry. They include the

41

DISTRIBUTION NETWORK Followed by Gobind Industries:

COMPANY

DEALER OR STOCKIST

CUSTOMER

Followed by other firms: COMPANY

STOCKYARD

DEALER

DIRECT & SUBDEALER

CUSTOMER

42

ORGANISATION CHART FOLLOWED BY GOBIND INDUSTRIES LTD:-

Chairman

Managing (Accounting) Director

Chief Operating Officer Joint Chief Operating Officer HOD of every department

Managing Staff

Executives

Support Staff

Workers

43

Strategy and Implementation Summary

Emphasize Customer Service
Gobind Industries Ltd. has already differentiated itself from other manufacturers and importers of agriculture machinery and implements by offering a spare parts and service maintenance to their maintenance, professional advice to customers and custom solutions depending on customer demands.

Build a Relationship-Oriented Business

Build long-term relationships with clients, not just selling the equipments. Let them become dependent on company's assistance to help out in many situations. Make them understand the value of the relationship.

Focus on Target Markets

The Company plans to rapidly develop marketing alliances with agriculture consulting offices. The market strategy is to capitalize on Gobind Industries Ltd. ever-increasing customer base and contacts by offering the latest products and after sales service. The company's goal in the next year is to exhibit its products in the Agriculture state fair that will take place at Nicosia next October which will allow for expanding the product service area with up-to-date servicing equipment. Even more so, the company is planning to participate to the 2012 Agriculture machinery fairexhibition at Thessaloniki, Greece at 28.1.2012 - 1.2.2012. The company as a sole Agent and sales representative of innovative new forbidden for Barabanki, Sitapur, and other parts of U.P will promote its latest wheat planting machine (to be patented in February, 2011), which is not only the latest technology in this field but also can reduce the operating costs of the wheat producers by 50%.

44

Competitive Edge
Our competitive edge is our positioning as a strategic ally with our clients, who are clients more than customers. By building machinery based on long-standing relationships with satisfied clients, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer them and why they should both stay with Gobind Industries Ltd. In close-knit communities like Barabanki, reputation is extremely important, and word-of-mouth advertising is invaluable. The following differentiate Gobind Industries Ltd. from its competitors:

Wide Range of Machinery and Implements. The company's machinery series satisfy all needs and wants of the Cypriot crop producer. Our latest technology systems and implements allow farmers to produce higher-quality products and give them a better competitive edge into European Markets.

Low Overhead Cost. The company's machinery systems provide a unique, low-cost production which was estimated to range from 30-70% of the crop operating cost.

Milestones
The following table lists important program milestones, with dates and managers in charge, and subjective budgets for each. The milestone schedule indicates our emphasis on planning for implementation. The most important programs are the sales and marketing programs listed in detail in the previous topics. Company also is attributing a great emphasis on the 2012 Agriculture Fair which takes place every 2 years in the International State Fair, Nicosia and the Agriculture state fair at Thessaloniki, Greece in late January 2012

45

Marketing Strategy
The overall marketing plan for Gobind Industries Ltd. products and services is based on the following fundamentals:

The segment of the market(s) planned to reach. Distribution channels planned to be used to reach market segments: radio, sales associates, and Post cards, direct marketing, mailings, etc.

Share of the market expected to capture over a fixed period of time.

Market Responsibilities

Gobind Industries Ltd. is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives: 1. Attract quality sales/service personnel that have a desire to be successful. 2. Attract customers that will constantly look to Gobind Industries Ltd. for their marketing.

46 In addition, the company plans to advertise in magazines, newspapers, television, radio, and on billboards throughout the country.

Promotion

In addition to standard advertisement practices, Gobind Industries Ltd. will gain considerable recognition through these additional promotional mediums:

Press releases sent to major radio stations, newspapers, and magazines. Radio advertising on secondary stations. Incentives. As an extra incentive for customers and potential customers to Gobind Industries Ltd. name, the company plans to distribute caps, T-shirts, pens, and other advertising specialties with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial.

Brochures. The objective of brochures is to portray the company's goals and products as an attractive functionality. It will also show to customers how to use the latest technology of innovations or what it relates to agricultural and Livestock sector.

Investment in Advertising and Promotion

For the first year of operation, advertising, and promotion is budgeted at a combined total of 15,00,000 .A fixed amount of sales revenues will go toward the Gobind Industries Ltd. advertisement campaign.

Sales Strategy
We will be offering a unique solution that will be introduced to the market through targeted advertising and direct sales. The direct sales force will consist of Mr.Kamal Agarwal and Mr.Sushil Agarwal with coordination of their seasoned sales associate offices.

47 Mr. Kamal Agarwal will manage the direct sales through personal sales calls and direct visits to villages and customer premises. This market is a long term, repetitive business where relationships are a key component to success. We will promote the company and its ability to act as an ally to agriculture producers and livestock farmers. We will make marketable Gobind Industries Ltd., and keep the reputation as the industry-leading manufacturer it represents.

Sales Forecast The important elements of the Sales Forecasts are shown in the chart and table below. Our sales are based on Government approval of funding for Agriculture and Livestock industries at the end of 2011, which will allow our customers to purchase more new equipment to remain competitive within the new Indian market. Our exclusive contracts with many Indian equipment manufacturers, our own patented designs, and our knowledge of the local agricultural market and buying tendencies will allow us to capture a large part of that new funding. We project a sales increase over 50% next year. Direct costs vary by category; in-house items like the potato mechanization equipment will have a lower direct cost than other equipment. We project an increase in gross margin as we gain market share and develop better contracts with our suppliers. Farmers buy equipment seasonally, so sales vary by month.

Pricing
Currently, Gobind Industries Ltd. maintains a commercial credit policy for business customers with a net 30-day limit. Most of Gobind Industries Ltd. customers choose to deal with their own financial sources. The company offers competitive prices, which are subject to review when necessary. Knowledge of market and competitor prices gives to the company the advantage of pricing in-line with

48 competitors. The Gobind Industries Ltd. suppliers have and will continue to supply products that enable the company to meet the customers' price ranges.

Management Summary
Gobind Industries Ltd. management is comprised of experienced entrepreneurs and business professionals from the accounting, technology and marketing management industries. Our management team possesses a breadth of functional experience in Potato Crop mechanization and was the leaders and manufacturers of agricultural attributing and implements since 1971. Mr Kamal Agarwal was involved in a variety of product development projects designing new Farmers and implements according to customers specific needs and even more so, Mr. Kamal Agarwal has managed to patent more than 4 innovative planting and harvesting systems for Potatoes and Vegetables. Mr. Sushil Agarwal will be devoted on the senior management responsibilities for directing the sales/ marketing, finance, and distribution efforts and Mr. Kamal Agarwal will be directing the development, operations, technological advancements and service operations.

Personnel Plan

Gobind Industries Ltd. management is highly experienced and qualified. Its key management team includes Mr. Kamal Agarwal and Mr. Sushil Agarwal. Jointly, they are responsible for processing quotes, arranging financing as needed, scheduling invoices for pickup and delivery, on-site testing and contract sales.

Mr. Kamal Agarwal, the General Director, has 40 years of marketing experience, sales experience, mechanical experience. Mr. Kamal Agarwal makes all decisions concerning equipment purchases, and sometimes contacting customers when needed for providing advice and technological support when requested as this is his area of expertise.

Mr. Deepak Agarwal, the Accounting Director, is in charge of obtaining all equipment for sales, completing contracts, working up quotes, setting up delivery of merchandise, arranging financing as needed, contacting customers, and verifying pickup and delivery. Mr Sushil has also 30 years

49 of secretarial experience and 12 years accounts payable and receivable experience. Mr. Deepak Agarwal, in conjunction with Mr. Kamal Agarwal answers the phone, faxes, does all the computer work, and if needed files any monthly or quarterly tax forms, compiles correspondence as needed, accounts receivable, accounts payable, meets with a bookkeeper for end of year tax return, keeps all office needs running smoothly, filing, typing, copies.

Future plans call for the hiring of a Marketing and Sales manager with hopes of adding 2 more Lathe men and a Welder/Fitter as needed.

Kamal Agarwal

Shikha Agarwal

Sushil Agarwal

Sandeep Agarwal

Deepak Agarwal

50

Important Assumptions
The key underlying assumptions of our financial plan shown in the following general assumption table are: 1. We assume access to the funding necessary to re-shape the company, and to provide adequate initial capitalization for a wider range of demonstration equipment. 2. We assume realistic to minimum sales, against highest expenses. 3. We assume that Indian funding for agriculture support and development will take place early in 2012 and that the U.P Government will release those funds, allowing the farmers and agriculture producers to buy a complete series for their equipment needs. Other key business assumptions are:

As we join the Indian marketplace, small farms will find it increasingly hard to stay in business, and only the well organized and standardized units will survive. (Based on trends in other recently-added Indian member-nations.)

Steady economic growth in Agriculture and Livestock sector, as predicted by the Ministry of Economics once funding for equipment is released by U.P Government.

51

CHAPTER 5

Strategic Issues & Problems

1. Strengths Brand Recognition
As one of the best known and most widely respected brands in the industry, Gobind Industries enjoys several advantages over its competitors, such as when negotiating credit issues with their dealers.

Customer loyalty
A consequence of Gobind Industries excellent reputation and their thoroughness in following up with customers and purchases, as well as their timely responses to complaints has been the growth in customer loyalty. This makes it more than likely that a customer who has purchased a Gobind product in the past will return to them for future purchases as well.

Research and Development

Agarwals efforts to provide cutting edge technology for their products have helped them to develop their technical competence into a strategic strength. By improving their products and ensuring that they are environmentally sound, the company attracts positive attention from public newsgroups, which further enhance its image in the market.

Product Diversification
With a broad spectrum of product offerings, Gobind Industries is able to compete in numerous market divisions and can thus offset slower periods in one division with another.Furthermore,

52 their diversified operations also present them with a number of opportunities to enter new markets.

Employee Benefits
Gobind Industries is comprised of not only their manufacturing divisions but also their health care and credit divisions, which in addition to helping out customers; also cater to the needs of its own employees. By servicing the needs of their employees effectively, It continues to be an excellent firm to work for and is able to keep their employees highly motivated and keep employee turnover low.

2. Weaknesses
International Expansion
While concentrating on international emerging markets can be an opportunity, it can also be a weakness because it involves substantial capital investment in each new market with the setting up of new assembly lines and plants.

Information Technology
As it continues to expand the requirements of their IT infrastructure and network become more complex and with expansion into other countries the need for an efficient and high-speed network grows. The implementation of a complex enterprise-wide information system will be one of the large expenses that it will have to incur.Gobind Industries extensive network will also necessitate a loss of flexibility, which smaller, local competitors might enjoy.

Consolidations

53 One of the greatest threats to Gobind Industries is the current trend of consolidation. While it tries to concentrate on penetrating new markets, some of its competitors are focusing on mergers and acquisitions to reposition themselves in the industry and prove more of a threat to Gobind Industries.

Distribution
One of Gobind Industries weaknesses as of now is its inferior distribution network. Caterpillar, one of its closest competitors in the agriculture implement manufacturing industry has a superior setup and can guarantee that any replacement part will be delivered to the customer within 48 hours.With assertions like that to compete against, It will have to invest considerableresources into their own distribution channels.

54

CHAPTER 6

SWOT Analysis:
Opportunities & Threats

Opportunities
International expansion. Consolidation. Effects of Urbanization and Westernization. Internet activity.

Threats
1. International expansion. Cyclical industry. Social issues. Economy, interest rates & government regulations. U.S. Dollar strength

Strengths & Weaknesses

Strengths
Brand recognition. Customer loyalty. Research & Development. Product diversification. Employee benefits.

Options 1. Use brand recognition to enter foreign markets. 2. Consolidate to improve relative strength vis--vis the competition

Options 3. Address international labor rights issues. 4. Decrease dependence on agricultural equipment sector. 5. Environmental concerns in international markets

Weaknesses
International expansion. Information technology. Consolidations. Distribution

Options 6. Achieve product Diversification through consolidation. 7. Improve intranet efficiency. 8. Use Internet to take advantage of online markets.

Options 9. International expansion to decrease imposed U.S.regulations. 10. Develop ability to adjust employment levels and overhead costs.

55

Strategic
Option #1

Options

Gobind Industries should be able to use their brand recognition to enter new international markets with less difficulty than their competitors. The reason for this is that they have been in this business for a long period and their name is associated with quality, value and reliability.

Option # 2

Gobind Industries should acquire other similar companies to increase their relative size to the competition in order to achieve greater leverage in their marketing efforts and gain economies of scale.

Option # 3

Gobind Industries needs to take extra care in regards to its international labor policies and its human rights monitoring. By doing this the company can reduce the chances of consumer and media backlash, which could lead to loss of sales and hurt their reputation.

Option # 4

Gobind Industries needs to decrease their dependence on the agricultural equipment segment of their business. They should shift their focus from the agricultural sector to other parts of their business, thereby diversifying their overall risk.

Option # 5

Gobind Industries needs to maintain their level of environmental awareness on a worldwide basis. Because of the globalization phenomenon and increased perception of a global

56 community, society expresses its concerns over any adverse environmental effects of companys actions in any part of the globe. Pertaining to Mr. Kamal Agarwal it can hurt their reputation, sales and consequently, lose their grip on the consumer base.

Option # 6

Gobind Industries should follow the trend of consolidation in the capital goods industry to diversify their product line. By taking advantage from the lessons learnt from pervious consolidations in the industry, Agarwals should be able to consolidate more efficiently. Therefore, through learning from other companies past experiences Mr. Agarwal does not have to go through the entire learning curve.

Option # 7

Gobind Industries has a vast scope of operations all over the world; therefore, they need a highly efficient intranet. So they can communicate and exchange files easily across international lines in no time. This can in turn increase Gobind Industriess response time to customer complaints and quicker solutions to worldwide offices. They should also develop user- friendly GUI (Graphical User Interface) software to minimize training expenses of their employees.

Option # 8

The possibilities the Internet offers can also be exploited and used by Gobind Industries. The options range from ordering replacement parts through the Internet and used for customer service and monitoring such as having a customer suggestions for product improvements. Another area, which can be improved upon with the use of the Internet, is the quality of service rendered by Gobind Industries. The customer, through online questionnaires, can receive added service and product value.

57

Option #9 Gobind Industries should work to improve their distribution channels domestically and internationally in order to meet the potential future demand. They can achieve this by focusing on customer needs and applying Six-Sigma precepts when analyzing the distribution chain.

Option #10

The capital goods industry is very cyclical. The agriculture equipment sector is a heavily capital intensive industry that usually lags the general level of the economy. The ability to which It is able to react to sudden changes in the economic outlook will determine the level of success the company will have in the future. Accurately adjusting employment levels within the company and controlling overhead costs will give It a competitive edge in the international arena.

58

CHAPTER 7

Reflections on what has been learned during summer internship

1. Experienced the working environment of an organization. 2. Learned to deal with different situations that I might face while working in an
organization.

3. Gained knowledge about different software that makes your work easier. 4. Gained practical knowledge of what we have studied in theory. 5. Saw the working and functioning of different departments of an organization. 6. Learned to build and maintain cordial relationship with the staff of the company. 7. Confidence level is increased and attained professional attitude towards work.

59

CHAPTER 8

RESEARCH METHOLDOLGY

OBJECTIVES OF THE RESEARCH

To study the customer awareness regarding Gobind Industries Agriculture implements. To study the different parameters influence the customers in purchasing of the Agriculture implements. To study major market leader among various market payers.

To study the satisfaction level of the customers with their existing implements.

60

RESEARCH METHODOLOGY
Research can be defined as a scientific and systematic search for pertinent information on a specific topic. According to Clifford Woody research comprises defining and redefining problem, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically.

Research design
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. In fact, the research design is the conceptual structure within which research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data. One may split the overall research design into following parts:

a) The sampling design which deals with the method of selecting items to be observed for the given study.

b) The observational design which relates to the condition under which the observations are to be made.

c) The statistical design which concerns with the question of how many items are to be observes and how the information and the data gathered are to be analyzed.

d) The operational design which deals with the techniques by which the procedure specified in the sampling, statistical and observational design can be carried out.

61

Need for a research design

Research design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient and possible yielding maximal information with minimal expenditure of effort time and money. It stands for the advance planning of the method used or adopted for collecting the relevant data and the techniques to be used in their analysis, keeping in view of the objectives, time and money.

The research design for my research is descriptive as well as exploratory.

Data sources:
The task of data collection begins after a research problem has been defined and a research design has been chalked out. While deciding about the methods of data collection, the researcher should keep in mind two types of data:-

1. Primary data 2. Secondary data. The primary data are those data which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on the other hand, are those which have already been collected by someone else and which have already been passing through the statistical process. The researcher would have to decide which sort of data he would be using for his study and accordingly he will have to select one or the other method of data collection. The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of collection and compilation of information collected through various newspapers, magazines and internet etc. In this research, I follow both the method of data collection. This research involves both primary and secondary sources of data collection. The information was collected and assembled from various websites, newspaper and magazines.

62

Research approach
The approaches mainly opted by the researcher to get the result include behavioral, survey, focus group, observational, experimental approaches etc.

For conducting this research the main approach used was survey approach i.e. interviewing the consumers.

Research instrument
The primary data was obtained during the course of doing research in a systematic manner with the help of questionnaires and interviewing peoples.

Questionnaire method: this method of data collection is quite popular, particularly in case of big enquires. In this method a questionnaire is sent to the persons with a request to answer and return the questionnaire. A questionnaire consists of a number of questions in a definite order on a form or a set of forms. The questionnaire used by me for the purpose of data collection was of structured type. It was designed keeping in mind the research problem which included close ended questions. The questionnaire was given to the respondents who were expected to read and understand the questions and write down the reply in the space meant for the purpose in the questionnaire itself.

Sampling design
A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the items to be included in the sample i.e., the size of the sample. Sample design is designed before data are collected. There are many sample designs from which a researcher can choose. Some design is relatively more precise and easier to apply than others.

63

Population
Population refers to part of universe from which the sample for conducting the research is selected. Universe and population can be same in some researches. It may be finite or infinite. In finite universe the number of items is certain, but in case of infinite the number of item is infinite i.e., we cannot have an idea about the total number of items.The population for my study is different respondent from villages and nearby Hosiarpur.

Sampling unit
Sampling unit refers to smallest possible individual eligible respondent. In my study the sampling unit is single individual user of tractor.

Sampling size
This refers to the total number of respondents selected from the universe to constitute a sample. The size of the sample should neither be excessively large, nor too small. It should be optimum. An optimum sample is one which fulfills the requirement of efficiency, representativeness, reliability and flexibility. The sample size for my research is hundred respondents.

Sampling techniques
In this research study, non-probability convenience sampling is opted for. Convenience sampling is done purely on the basis of convenience or accessibility. This sampling method has been mainly chosen because of time, financial constraints and lack of expertise.

Sampling frame
Frame is the list of respondents i.e. list of all the users of different tractors

Statistical analysis
Data will be analyzed with the help of frequency distribution, percentages and other suitable statistical tools. Classification and tabulation transforms the raw data collected through questionnaires and personal interviews into useful information by organizing a compiling the bits of data contained

64 in each of the hundred questionnaires i.e., observation and responses are converted into understandable and orderly statistics for further analysis and interpretation.

Following applications of statistics are used to organize and analyze the data: Simple tabulation of data using tally marks. Calculating the percentage of the responses. Formula used: Percentage= (number of responses/total responses)*100 Graphical analysis by means of bar graphs and pie charts.

Data Analysis and Interpretation

For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having multiple/alternative choices. In case of ranking questions the total score has been added and final ranking is given. In case of checklist questions the average of total no. of responses was calculated. In case of explanatory questions, the general suggestions were summarized.

65 LIMITATIONS TO THE RESEARCH

As the data will be collected through questionnaire, there are chances of biased information provided by the respondents.

The survey is limited only to Barabanki and Lucknow. As the sample size is small compared to the total population the outcome cannot be generalized. The study was done for a short period of time, which might not hold true over a long period of time. The area is too vast to research and the entire picture may be varying if sample should be increase. Respondents are basically villagers they usually not take more emphasis on these questions.

66

DATA ANALYSIS AND INTERPRETATION

Data analysis is an important part in any of the research as it fulfills the purpose for which research is made. In this chapter analysis of every question asked from consumer through the questionnaire is done.

1) Which Brand of agriculture implements you are currently using?

Brand Vishal Ltd. Escort/ford Mahindra & Mahindra Gobind Industries Ltd GYAN Ltd Swaraj Ltd

Percentage 6 28 30 20 14 2

Percentage
35 30 25 20 15 10 5 0 SUNRISE M&M ESCORT GOBINDLTD GYAN LTD SWARAJ LTD Percentage

INTERPRETATION
From our research on the Agriculture machinery users we find that mostly people owned the Escort and Mahindra & Mahindra implements

67

2) For which purpose do you use your implements?

Purpose Agriculture Purposes Industrial Purposes Other Purposes

Percentage 67 23 10

Percentage

Agriculture Purpose Industrial Purpose Other Purpose

Interpretation
From our research i found out that maximum users were using the machineries for agriculture purposes and 23 percentages of the people were using machinery for industrial purposes.

68 3) During purchase of the implements what was your considerations? Consideration Price Performance Quality Brand image After Sales Service Hydraulic liftment power Percentage 12 56 10 15 7 -

60

50

40

30

20

10

0 Price Performance Quality Brand image After Sales Services

INTERPRETATION The main consideration of buying the Agriculture implements is performance they not bother about the price as shown above on the figures and same in case of brand image and quality because performance automatically deals with quality.

69 4) How much Horse Power your machinery is of?

Horsepower 30 - 40 40 50 50 60 Above 60

Percentage 20 40 25 15

Percentage

40 30 20 10 0 30 - 40 40 - 50 Percentage 50 - 60 Above 60 Percentage

Interpretation: From my research I found out that people use implements of horsepower between 40 to 50 because they are easier to handle and their services are also commendable.

70 5) What cost did you incurred to purchase it?

Cost Below 1 Lac 1Lac 3 LAC 3 Lac 5 Lac Above 5 Lac Percentage 34 40 20 6

Percentage

40 30 20 10 0 Below 1 Lac 1 Lac - 3 Lac Percentage 3 Lac - 5 Lac Above 5 Lac Percentage

Interpretation: From the research I found out that 34% of the products cost less than 1 Lac, and 66% of the products cost more than 1 Lac.

71 6) Are you satisfied with the features provided by company in your machinery?

Level Yes No

Percentage 87 13

Percentage

Yes No

Interpretation:
From the research I found out that maximum numbers of respondents were satisfied with the machinery they are using.

72 7) Are you aware of Gobind Industries Product?

Awareness level Yes No

Percentage 87 13

Awareness level

Yes No

INTERPRETATION From the research I found out that about 87% of the respondents are aware of the Gobind Industries Agriculture Implements. They know about the brand of these implements they basically like Potato Planter, Thresher, etc.

73 8) If yes, from which source you come to know about the company? Source of information Newspaper Television Displays Social network Dealers Percentage 10 8 32 28 22

35 30 25 20 15 10 5 0 Newspaper Television Displays Social network Dealers

INTERPRTATION The respondents basically know from the displays and their social network like relatives and friends. Respondents are less aware about the ads in newspapers.

74 9) Are you satisfied with the after sales services of Gobind Industries?

Level Yes No

Percentage 78 22

Percentage

80 60 40 20 0 Yes No Percentage Percentage

Interpretation:
From the research that has been done I have found out that maximum numbers of people are satisfied of the services that Gobind Industries manufacture. People are satisfied with the services the company is providing.

75 10) From which Factor you feel that the companys products are different from other companys products?

Factor Price Promotional Schemes Performance Technical advancement Others

Percentage 34 12 20 28 6

Percentage
40 30 20 10 0 Percentage Percentage

Interpretation:
From the research I found that price is the most important factor that is considered by people while buying machinery. Peoples second preference is technology that is being used in the machinery.

76 11) How has been the performance of your implements you are using?

Excellent 45

Satisfactory 34

Good 11

Poor 10

Very Poor -

Percentage
50 45 40 35 30 25 20 15 10 5 0 Excellent Satisfactory Good Poor Very Poor Percentage

Interpretation:
From the research done I found that maximum percentage of people are satisfied with the performance of the products they are using.

77 12) Do you think these products fulfill your requirements?

Percentage Strongly Agree Agree Cant say Disagree Strongly Disagree 68 22 7 3 -

Percentage
80 60 40 20 0 Strongly Agree Agree Can't say Percentage Disagree Strongly Disagree Percentage

Interpretation:
From the research that I have done I found that most of the people strongly agree that the products of Gobind Industries fulfill all the requirements of its customers.

78 13) Rate the company on the following basis, where 1 Excellent, 2 Good, 3 Satisfactory, 4 -Poor Topic Responsiveness Professionalism Technical Support Product Quality Delivery Competitiveness Overall 1 87 80 90 94 85 90
85 2 13 12 10 4 10 5 15 3 8 2 5 5 4 -

Interpretation:
The company excels in the field of technical support, product quality and competitiveness. The overall performance of the products of Gobind Industries is highly satisfactory and has become leading brand in its market.

79

CHAPTER 9

Recommendations
Short-term

Gobind Industries should start reducing its short-term debt so that the company will have more capital in order to stay competitive in the markets of the future. The uses of this capital can be used to maintain its hold on the agriculture market by increased spending in product development and process innovations. The ways that Gobind Industries can decrease their shortterm debt is by issuing more stocks and using the proceeds. This plan will not be easy to accomplish because it will undertake a lot of financial reorganization. Though the positives of this plan are It can improve the financial stability of the company and increase their cash flows in the near future.

Gobind Industries should also concentrate its efforts on the Internet market, in order to precedent in the industry and offer increased availability to its customers, where Agarwals competitors are not equally established.

Long-term

Gobind Industries should try to establish a strong base in the Asian markets; so it can benefit the company in the coming years. The reason for this is that Asian markets are modernizing, expanding their infrastructure and production capacities. To accommodate these tasks the Asian economies will require modern and efficient products. This will in turn increase demand for agriculture equipment and increase the presence of Gobind Industries in these developing markets.

Here opinion leaders can play a vital role. Opinion leader is a person whose opinion is given high weight age by common people like sarpanchs. Company should also concentrate on this factor.

80

Besides these points we would like to suggest few more things: More & more emphasis on R & D must be given Spare parts must be easily available for different models of tractors Become a cost leader in field of Agriculture Implements. Provide better after sale service to develop better relation with dealers

81

CHAPTER 10

Conclusion
The farm equipment sector in India is nascent, but a fast growing one, that is set to experience sustained grow due to increased mechanization of farming, easy availability of credit and emerging practices, such as contract farming. Tractors and related equipment form the major part of the industry and given their low penetration levels in India, look set to continue having a significant share in the market. These appear the most attractive segments for investment and have been attracting multinational players such as John Deere, M&M, etc. Punjab and Maharashtra appear attractive locations for investment given the favorable demand, supply and regulatory scenario in these states. Uttar Pradesh, Andhra Pradesh and Tamil Nadu could be other options.

82

Chapter 10

BIBLIOGRAPHY Journals: 1. Research on Farm Implements and Machinery by M.M. Pandey 2. Agriculture Equipment Market & Opportunities by KPMG 3. Agriculture Operations by John Deere

Website: http://www.skumarbarabanki.com www.ibef.in www.agro.indiamart.com www.equipmentindia.com

Magazines: Company Boucher (GOBIND INDUSTRIES) New Agriculturist Equipment India Tractor and Machinery Magazine

83

Chapter 11: APENDIX

Questionnaire
We would be grateful if you could spare a few minutes to complete this Questionnaire to help us ensure that our standard of customer care exceeds expectations wherever possible. 1) Which brand of agriculture implements you are currently using? 1. Vishal Ltd 3. Mahindra & Mahindra 5. Gyan Ltd 2) For which purpose do you use your implements? 1. Agriculture Purpose 2. Industrial Purpose 3. Other Purpose 3) During purchase of the implements what was your consideration? 1. Price 3. Quality 5. After Sales Services 4) How much horse power your machine is of? 1. 30 40 2. 40 50 3. 50 60 4. above 60 2. Performance 4. Brand Image 6. Hydraulic Liftmen Power 2. Escort Ltd 4. Gobind Industries Ltd 6. Swaraj Ltd

84 5) What cost did you incurred to purchase it? 1. Below 1 Lac 2. 1 Lac 3 Lac 3. 3 Lac 5 Lac 4. Above 5 Lac

6) Are you satisfied with the features provided by the company? 1. Yes 7) Are you aware of GOBIND INDUSTRIES Ltd.? 1. Yes 2. No 2. No

8) If Yes, from which source you come to know about the company? 1. Newspaper 3. Displays 5. Dealers 9) Are you satisfied with the After Sales Service of Gobind Industries? 1. Yes 2. No 2. Television 4. Social Network

10) From which factor you feel that the companys products are different from other companys products? 1. Price 3. Performance 5. Other 11) How has been the performance of the product you are using? 2. Promotional Scheme 4. Technical Support

Excellent

Satisfactory

Good

Poor

Very Poor

85 12) Do you think these products fulfill your requirements? Cant Say

Strongly Agree

Agree

Disagree

Strongly Disagree

13) Rate the company on the following basis, where 1 Excellent, 2 Good, 3 Satisfactory, 4 Poor Topic Responsiveness Professionalism Technical Support Product Quality Delivery Competitiveness Overall 1
2 3 4

14) Your Valuable Comments