FAG-INDIA

SUMMER
INTERNSHIP
PROGRAM REPORT

MARKET RESEARCH ON THE BUSINESS POTENTIAL

AND FORECASTING TOOL

SUBMITTED BY
PARMAR PRAKASH M
AMITY GLOBAL BUSINESS SCHOOL
AHMEDABAD

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SUMMER PROJECT
REPORT
ON

MARKET RESEARCH ON THE BUSINESS POTENTIAL AND

FORECASTING TOOL
OF FAG BEARING INDIA LIMITED

FOR THE PARTIAL FULFILLMENT OF

THE REQUIREMENT OF

MARSTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
PARMAR PRAKASH M
A-43
EXTERNAL GUIDE INTERNAL GUIDE
YOUGESH RAI KHANNA Prof. SANJU THKUR

(SALES MANAGER-AUTOMOTIVE)

AMITY GLOBAL BUSINESS SCHOOL

AMEDABAD

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TABLE OF CONTENT
Acknowledgement
Preface
Declaration
Executive Summary

Chaptar-1 Bearing Industry……………………………………..….1

Industry structure and development…………………………..3

Type of Bearings………………………………………………..5

Chapter-2 Organization Profile……………………………………8

Schaeffler Group………………………………………………..9
Owner / Management………………………………………….12

Chapter-3 Company Profile……………………………………….13

Mission………………………………………………………….17
Further Company…………………………………………......19
Quality Policy……………………………………………….....20
Environment Policy……………………………………………21
Code of Conduct………………………………………………22
Continuous Improvement Process………………………….24
Product Range……………………………………………..…25
Application…………………………………………………....26
Competitors……………………………………………………27
S.W.O.T Analysis………………………………………….....30

Chapter-4 Marketing Department…………………………..…….31

Organization Hierarchy…………………………………………32
Sales Procedure………………………………………………..35
Market Segment………………………………………………..37
Promotional Activity…………………………………….………40
Training……………………………………………………….….42

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Chapter-5 Project Profile…………………………………………43

Project Overview……………………………………………..44
Research Objective…………………………………………..45
Retailer Incentive Scheme…………………………………47
Forecasting Tool…………………………………………….50

Data Analysis and Interpretation ……………………………..53

Recommendation…………………………………………………62
Conclusion…………………………………………………………64
Bibliography……………………………………………………….66
Annexure……………………………………………………………67
Questionnaire…………………………………………………68
List of Retailer…………………………………………………71

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EXECUTIVE SUMMARY
FAG Bearings India Limited, a member company of FAG group of Germany - is a leading
player in the Indian Bearing industry.

The company manufactures a very wide range of bearings conforming to the stringent
international quality standards.

FAG India's manufacturing plants, located at Vadodara, Gujarat, it was incorporated in the year
1962. Its feature the most advanced manufacturing technology. The company is certified to
ISO/TS 16949, ISO 9001, and ISO 14001 standards.

FAG India is a leading OEM supplier to the automotive industry, mechanical and electrical
engineering industry, besides the Railways.

In 1997, FAG Bearing India Limited set up the country's first 100% EOU for bearings.
Bearings produced at the EOU plant have gained ready acceptance and recognition of
customers located in Europe, USA, Asia and Africa.

FAG's joint venture company - FAG Roller Bearings Private Limited - produces taper roller
bearings at Chakan near Pune.

FAG‟s main competitors in bearing are SKF, TIMKEN, NRB, NBC and other local brands.

OBJECTIVE:
 Evolution of business potential
 Retailer Incentive Scheme
 Forecasting Tool

The main objective of this internship is to learn different marketing strategy and to develop
skills. And with that attitude I had done my summer internship with FAG Bearings India Ltd.
In this two month training period I had seen different work and key responsibility of marketing
department.

Training was started with brief introduction program of FAG Bearing India Ltd. and plant visit
of different department. Then company give such a learning job, they had given survey for
analysis and understand products market position and price margin with other competitor of

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there existing products and new launching bearings. It was such a great experience to learn
customer response and how to deal with customer.
Then they had give us idea about there different marketing and promotional activates like
campaigning , advertising, seminar and also give brief idea of Retail Incentive Scheme (RIS).
company also shown there demand forecasting tool of company which is develop for FAG
company. First give idea of demand forecasting tool and then also done data entry work for
company on the same tool. It will give idea of how company take decision for there production
inventory management, pricing decision, capturing new market etc.

for my task of learning the various activity of marketing department is made so easy and learn
full by the continuous support from the executives of company. And the task of learning
survey, RIS and Demand Forecasting is provided by Mr. Yogesh Rai Khanna (Sales Manager).

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ACKNOLEDGEMENT
As the technologically advancement will enable us to get the environment we desire. In this era
of modernization & sophistication our endeavour to achieve complete and perfect knowledge
in the field we choose will be successful only with the help of guidance, direction, stimulation
& encouragement. And that encouragement and right path I got from this internship program.
So for that I want to thank those who are the guide and supporter to me in this project.

I like to thank to Mr. J. P. NAIR (H.R. DEPARTMENT) to give environment with work
had been so understandable.

I would also thank to Mr. YOGESH RAI KHANNA (SALES MANAGER) for his
continuous guidance without whom this project is not so learn full. I also thank to Mr. R. K.
MATHUR

I also express my sincere gratitude to my project guide Prof. SANJU THAKUR and
Prof. SANGEETA SURYAWANSHI for there support.

I also thank full to Dr. PRASHANT GUPTA (Dean of AGBS-AHMEDABAD) who is

always mentor to us.

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DCLARATION
I hereby declare that the following project report titled “Market Research of the business
Potential and Forecasting Tool of FAG Bearing India Limited” is an authentic work done
by me. This is to declare that all my work indulged in the completion of this Project Report
such as research, mapping of village, competitor analysis, sales promotion, and team
management is a profound and honest work of mine.

Parmar Prakash M

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PREFACE
The M.B.A curriculum is designed in such a way that student can grasp
maximum knowledge and can get practical exposure to the corporate world in
minimum possible time. Business schools of today realize the importance of
practical knowledge over the theoretical base.

The research report is necessary for the partial fulfillment of M.B.A. curriculum
and it provides an opportunity to the researcher in understanding the industry
with special emphasis on the development of skills in analyzing and interpreting
practical problems through the application of management theories and
techniques. It is a new platform of learning through practical experience, which
incorporates survey and comparative analysis. It gives the learner an opportunity
to relate the theory with the practice, to test the validity and applicability of his
classroom learning against real life business situations.

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BEARING INDUSTRY

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Although the development of India‟s ball and Roller bearing industry is not quite evitable, it
can be said without contradiction that India has relatively strong base for the manufacture of
bearings.

Almost all the units have foreign collaboration, the Indian Bearing industry manufactures
around 500 types of bearing as against over 30,000 types of bearings being used by the Indian
industry. Major products are inputs to areas like fans , electric motors , water pumps. The
major of this production go into a huge automotive sector which is being developed in India.

The current Indian bearings industry is worth Rs.3500 crore. In this, automotive segment
accounts for 45 percent of the revenues, which amount to Rs 1,350 crores and the remaining
55 percent of revenues are being contributed by industrial demand. In the automotive
bearings market, the organized segment manufactures cater to 50 percent of the demand.
About 15 percent of the production is by the unorganized segment in India, and the
remaining 35 percent of demand is fulfilled through imports. Out of the total revenues in the
automotive segment, 60 percent of the revenues are contributed by the OEMs and the
remaining 40 percent is by the demand from the aftermarket. There has been a growth of 15
percent in the aftermarket segment and OE demand has increased by more than 25 percent
from the financial year 2005-06.

Though the demand from the aftermarket segment is increasing, the growth rate is declining
compared to the year 2005 - 06. In the aftermarket, 6 percent demand is from the
engineering applications segment, 5 percent from LCV segment, 4 percent from MUV
segment, 8 percent from car segment, 11 percent from tractor segment, and the remaining
15 percent from automotive ancillary segment. Rest of the 50 percent demand is from the
Railway sector.

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INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian bearing market size is estimated at Rs.54 billion. Approximately 45% of this demand is
met through imports and the balance is met through indigenous products. The bearing industry
recorded a growth of 7% during the year 2007 in terms of sales value. FAG India total sales
during the year 2007 shot by 17%. FAG India‟s share in the total market is around 17% as
stated below.

Company Market share

SKF 28%

NBC 20%

FAG 17%

TATA 8%

TIMKEN 10%

NRB 12%

Others 5%

SKF
NBC
FAG
TATA
TIMKEN
NRB
OTHERS

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The fortunes of the bearing industry in India are linked to the growth of automotive industry.
The overall growths in commercial vehicle industry was at 9.7 % in 2007.OEM industry, such
as two-wheeler, are facing price competition in their own markets and continue to exert price
pressure on local bearing suppliers. The growth of Indian middle class with increasing
purchasing power along with strong growth of economy over the past few years will accelerate
demand from the automotive industry and other sectors like steel, power & heavy engineering,
thus providing a favorable market environment for the bearing industry.

Threats to industry

Over the last few years, there has been sharp increase in the prices of steel which forms the
basic material for bearings and also currently increase in fuel prices which has affected to the
demand of automobiles and indirectly to the bearing industry. The overall margins of bearings
manufacturer are under severe pressure.

The company expects that there will be a risk on its margins on account of intense competition
from the unorganized sector in the domestic industry and flow of cheap imports of bearings
from china and other low cost countries. To dilute this risk besides any cyclic fluctuations in
bearing demand from Automotive or various other industries, the company will focus on
technologically advancement and more profitable products/market segments.

The company will continue to work in the areas of higher productivity, better efficiency and
cost reductions in order to grow.

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TYPES OF BEARINGS
There are many types of bearings, each used for different purposes. These include ball bearings, roller
bearings, ball thrust bearings, roller thrust bearings and tapered roller thrust bearings.

Ball Bearings
Ball bearings, as shown below, are probably the most common type of bearing. They are
found in everything from inline skates to hard drives. These bearings can handle both radial
and thrust loads, and are usually found in applications where the load is relatively small.

Cutaway view of a ball bearing

In a ball bearing, the load is transmitted from the outer race to the ball and from the ball to the
inner race. Since the ball is a sphere, it only contacts the inner and outer race at a very small
point, which helps it spin very smoothly. But it also means that there is not very much contact
area holding that load, so if the bearing is overloaded, the balls can deform or squish, ruining
the bearing.

Roller Bearings
Roller bearings like the one illustrated below are used in applications like conveyer belt
rollers, where they must hold heavy radial loads. In these bearings, the roller is a cylinder, so
the contact between the inner and outer race is not a point but a line. This spreads the load out
over a larger area, allowing the bearing to handle much greater loads than a ball bearing.
However, this type of bearing is not designed to handle much thrust loading.
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A variation of this type of bearing, called a needle bearing, uses cylinders with a very small
diameter. This allows the bearing to fit into tight places.

Cutaway view of a roller bearing

Ball Thrust Bearing

Ball thrust bearings like the one shown below are mostly used for low-speed applications and
cannot handle much radial load. Barstools and Lazy Susan turntables use this type of bearing.

Ball thrust bearing

Roller Thrust Bearing

Roller thrust bearings like the one illustrated below can support large thrust loads. They are
often found in gear sets like car transmissions between gears, and between the housing and the
rotating shafts. The helical gears used in most transmissions have angled teeth -- this causes a
thrust load that must be supported by a bearing.

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Roller thrust bearing

Tapered Roller Bearings

Tapered roller bearings can support large radial and large thrust loads.

Cutaway view of (left) a spherical roller thrust bearing and

(right) a radial tapered roller bearing

Tapered roller bearings are used in car hubs, where they are usually mounted in pairs facing
opposite directions so that they can handle thrust in both directions.

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ORGANIZATATION
PROFILE

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SCHAEFFLE GROUP

With its three strong brands - INA, LuK and FAG - the Schaeffler Group
stands for a pronounced customer focus, innovative power and the highest possible quality. In
2008, approximately 66,000 employees at over 180 locations worldwide achieved sales totaling
of 8.9 billion euros. The group belongs to the leading suppliers of the rolling bearings industry
worldwide and is a recognized partner of nearly all automobile manufacturers.

LuK INA FAG

Clutch systems Roller and friction Rolling bearings for

Dual mass flywheels bearings industry and
CVT components Linear guides automotive
Torque converters Engine elements technology
Precision products High-precision
bearings, e.g. for air
and space travel, tool
machinery and the
textile industry

Further details about LuK Further details about INA Further details about FAG
available at available at available at
www.luk.com www.ina.com www.fag.com

In 2008, approximately 66,000 employees at over 180 locations worldwide achieved sales totaling of 8.9

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billion Euros out of which 60% in Automotive Industries and 40% industrial, Aviation and Aerospace
The group belongs to the leading suppliers of the rolling bearings industry worldwide and is a recognized
partner of nearly all automobile manufacturers. Schaeffler Group has 76 plants all over the world. And
the distribution of these plants among its three companies are as follow:

The Schaeffler Group develops and manufactures precision products for everything that moves – in
machines, equipment and vehicles as well as in aviation and aerospace applications. We provide ou
customers with individual solutions to help them move the world.
We are a leading manufacturer of rolling bearings and linear products worldwide as well as a renowned
supplier to the automotive industry.
With its three strong brands – INA, FAG, and LuK – the Schaeffler Group is active in the automotive
industrial, and aerospace divisions. The utilization of central group-wide functions has resulted in a large
number of synergies. The group‟s strong customer focus has been an essential part of its success. The
Schaeffler Group sees itself as a development and engineering partner for its customers and has
developed technologies, machines and control systems in-house to achieve fast and flexible
manufacturing processes.
The Schaeffler Group is managed as an integrated unit, across corporate and national boundaries. Group
wide functions and standardized processes ensure consistent, quick decisions. Sales agencies and
companies in all markets guarantee customer proximity.

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GOALS OF SCHAEFFLER GROUP

To accelerate through-put and reaction time.
Globalization (growth and organization)
To improve overall quality –Internal and external.
Qualified growth.
Employee satisfaction.

MANAGEMENT PRINCIPLE OF SCHAEFFLER GROUP

They follow a “cooperative management style”
Following clear, unambiguous and binding standards.
Serving as role model.
Being aware of ones responsibilities.
Employee development.
Innovative thinking.
Working together.

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COMPANY PROFILE

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COMPANY
FAG Bearings India Ltd, Vadodara, was incorporated in 1962, with the sophisticated
operations based at [Maneja] Vadodara in Gujarat with its registered office at Mumbai. Its
Branch offices are at Delhi, Chennai, Kolkata, Pune, Bangalore, Coimbatore, Udaipur &
Nagpur. The foundation stone was laid on 21 st April, 1963 and the production started in 1964.
FAG Stands for Fischer Aktien Gesselschaft.

FAG comes under Schaeffler Group. Schaeffler Group has mainly three companies under its
belt namely FAG, INA & LuK. FAG Bearings is an Engineering firm, which manufactures
over 300 types of Ball & Roller Bearings. Many more to add are currently at a development
stage.

Earlier the company was called as FAG Precision Bearings Ltd., which was changed to FAG
Bearings India Ltd. In 1999, Since then, with continuous co-operation and assistance of FAG
Germany, the company has progressed with the expansion of manufacturing facilities of Hall-
II in 1964, Hall-III in 1982 and Hall-IV in 1991. A 100% Export Oriented Unit was set up in
January 1997. Currently the Export Unit has been D bonded & it‟s mainly would be a roller
bearing manufacturing unit.

The Company‟s technical capabilities received a major boost when, during 1992, it setup of the
world‟s most advanced ball bearing plant at Vadodara, which manufactured ball bearings,
cylindrical roller bearings and spherical roller bearings.

In April 1993, FAG India reached a coveted milestone, when it achieved ISO 9001 [System
Standards] certification. With this FAG India became the first bearing company in the country
to achieve ISO certification and thus reinforced its image as Quality Leaders in the field.

Similarly FAG India reached another milestone, when it achieved QS 9000 & TS 16949
[Quality Standard] & ISO 14001 [Environment Management System] in 1998 & 1999
respectively. It was another feather in the cap when it set up fifth generation bearings plant for
the manufacturing double row angular contact bearings in 2000.

FAG product range is mainly used in automobiles sector & railway segment with its market
stake in fan and motor industry. The company has a long experience in handling machines and
equipment of latest technology. It focus is on selected business areas. It has an excellent
customer profile having top OEM‟s [Original Equipment Manufacturers] in automotive.

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Company Excellence
1962 - Incorporated as Precision Bearings India Limited.
1986 - The company name changed to FAG Precision Bearings Limited.
1993- First bearing company in India to get ISO 9001
1997 - First bearing company in India to set up 100% EOU
1998 - Became first Indian Bearing company to achieve QS 9000 certification.
1999 - Change in name to FAG Bearings India Limited. The company achieved
ISO 14001 certification.
2000 – First company in India to set up advanced manufacturing plant to produce
automotive wheel bearing.
2003- First to set up world-class product validation center of its kind in India
TS16949 certification

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FACTS
Head Quarters & Works: Vadodara, Gujarat
Registered Office: Mumbai

Branch Office: Delhi, Udaipur, Pune, Nagpur, Bangalore, Coimbatore, Chennai

& Kolkatta.

Site Area: 98,846 Square Meters

Employees:

Year Number of Employees

December‟ 2005 1037
December‟ 2006 1157
December‟ 2007 1282
December‟ 2008 1375
Turnover :

Year Turnover in Mio Rs. Turnover in Mio €

2005 4080 73.29
2006 5420.4 97
2007 6413 114.7
2008 7444.1 124.07
Production:

Capacity in Million Achieved in Million

Year
Bearings Bearings
2005 30.2 32.2
2006 43.3 36.9
2007 47.1 45.1
2008 49.7 46.4

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MISSION: TOGETHER WE MOVE THE WORLD

The Schaeffler Group develops and manufactures precision products for everything that moves
– in machines, equipment and vehicles as well as in aviation and aerospace applications. We
provide our customers with individual solutions to help them move the world.
We are a leading manufacturer of rolling bearings and linear products worldwide as well as a
renowned supplier to the automotive industry.
With its three strong brands – INA, FAG, and LuK – the Schaeffler Group is active in the
automotive, industrial, and aerospace divisions. The utilization of central group-wide functions
has resulted in a large number of synergies. The group‟s strong customer focus has been an
essential part of its success. The Schaeffler Group sees itself as a development and engineering
partner for its customers and has developed technologies, machines and control systems in-
house to achieve fast and flexible manufacturing processes.
The Schaeffler Group is managed as an integrated unit, across corporate and national
boundaries. Group-wide functions and standardized processes ensure consistent, quick
decisions. Sales agencies and companies in all markets guarantee customer proximity.

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Managing General
Director Manager

Vice Manager
President Position

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FURTHER COMPANIES
A strong alliance
With its three strong brands – INA, FAG, and LuK – the Schaeffler Group is active in the
automotive, industrial, and aerospace sectors. There are also other companies and brands in the
Schaeffler Group alliance which prioritize innovation, creativity and constant customer focus.
Automotive division:
AFT Atlas Fahrzeugtechnik develops and supplies innovative, complete solutions for vehicle
powertrains. The company‟s portfolio includes the development and integration of mechatronic
systems from prototype through to production as well as complete vehicle and component
acoustics.
The automotive aftermarket activities of the Schaeffler Group are concentrated in Schaeffler
Automotive Aftermarket. Customized system solutions for repairs shops such as Automeister
and RepXpert as well as services for automotive distributors round out the product line.
Industrial division:
This includes the direct drive specialist IDAM and its affiliate, Hydrel, which alongside broad
technical and commercial activities with rolling bearings and linear guidance systems has a
fine blanking plant for customer-specific solutions.
With FAG Industrial Services, the Schaeffler Group has a strong service provider for complete
solutions in the field of maintenance and quality assurance.
Aerospace division:
The Barden brand develops and distributes special bearing supports for aviation and aerospace.

AFT

BARDEN

F‟IS

HYDREL

IDAM

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QUALITY POLICY

There mission is not simply to be good at quality but to excel in quality.

If they are to convince and secure there customers in the long term, they must continue to take
a lead on quality, technological progress, reliability and cost-effectiveness as well as ensuring
correct, timely deliveries and proving a committed service.
This is and always has been the foundation on which the success of the Company is based.
The standard they must aim for is quality in the eyes of there customers; they must focus every
effort on satisfying the expectations and requirements of there customers. Every employee
must think and act in accordance with this principle and they must all co-operate with this goal
in mind.
There work must be based on the objective of “zero defects“ and they must implement
measures in all departments to ensure defect prevention, not simply defect detection.
The result of there work must be free from defects, at all times and in every workplace
throughout there Company.
The Management and all employees give their wholehearted commitment to this quality policy.

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ENVIRONMENT POLICY

Environmental protection and work safety is a fundamental part of our management principles.
The following principles apply to all of our companies worldwide and so demonstrate the
responsibility we have toward our employees, society, and future generations

Effective Work Safety and Environmental Management

We elaborate forward-looking concepts that we implement in collaboration with our

contractual partners. We carry out regular checks across all areas to determine the extent to
which these measures have been implemented and to monitor the success of our management
system.

Safe, Employee-Friendly Workplaces

We are convinced that all occupational accidents and illnesses can be avoided. Motivated
employees and managers help us achieve our goal of a zero-accident workplace.

Reliable Actions

We act in a responsible manner in accordance with our own regulations, which, in many cases,
go beyond existing legal requirements. We configure, purchase, operate, and maintain
machines and facilities in such a way as to minimize potential hazards, risks, and operational
disturbances.

Minimum Environmental Impact and Environmentally-Friendly Products

We consume raw materials and energy sparingly and make every effort to minimize waste,
waste water, noise, and other emissions. We manufacture environmentally-friendly products
taking into account the entire product lifecycle.

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Responsible Employees

We hold regular information and training sessions to ensure that our employees and business
partners have the expertise and knowledge to carry out their work safely.

Preventive Measures

Comprehensive and effective emergency measures are in place at all locations to ensure that our
employees and visitors are treated properly in the event of injury.

Open Communication

We conduct an intensive and trusted dialog with interested parties. We provide information about our
work safety and environmental protection measures as well as the impact each of our locations has on
the environment.

CODE OF CONDUCT
The Schaeffler Group is continuing the social responsibility of all group companies and sees this
as a prerequisite for lasting corporate success. The Schaeffler Group‟s Code of Conduct is based
on the principles of the “Global Compact”, “The Global Sullivan Principles of Corporate Social
Responsibility” and the standards of “Social Accountability International”. The basic principles
described here constitute a minimum standard for us and do not affect country-specific additions
that are based on the relevant cultural circumstances.
Human rights
We undertake to observe the internationally proclaimed human rights in our sphere of influence.
Forced labor
We will not engage in or associate ourselves with use of any form of forced labor.
Child labor
We will not engage in or associate ourselves with use of child labor in our operations.

Discrimination and respect of others

We mean to provide a workplace free of discrimination and harassment on the basis of

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gender, race, skin color, religious beliefs, age, national origin, handicap, or sexual
orientation. Employees in our workplace deserve each other‟s respect.
Compensation and working hours
We recognize workers‟ needs for adequate remuneration and observe the legally
guaranteed minimum wages in the respective labor market. We observe the rules that
apply to working hours in each of our operations.
Relationship with employees and employee representatives
We believe in an Open Door Policy and enable our employees to express their interests
directly to management on a continual basis.
Reconcilability of job and family
We are a family-owned enterprise. With our family-friendly arrangements and provisions
we strive to enhance the satisfaction and motivation of our employees and hence increase
the performance of the Group.
Health and safety
We mean to provide a safe and healthy working environment that meets or exceeds
applicable standards for occupational health and safety. We will take steps to prevent
injuries and occupational illnesses caused by workplace conditions.
Workforce development
We see the development of our employees as an essential investment in the future of our
company. We also value the development of social and technical expertise.
Environmental responsibility
We maintain an environmental management system at all production sites world-wide,
which we continuously improve. Local environmental protection laws and the
specifications of the Schaeffler Group‟s environmental protection system must be
observed as a minimum. We collaborate with our business partners and suppliers in
exercising our environmental responsibility.

Conflict of interests, gifts and attempted bribery

We give an undertaking that we will not accept gifts or payments or hold (company)
investments which could lead to a conflict of interests. In particular, neither bribes nor any

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other illegal payments may be offered, made or accepted.

Suppliers
We encourage, where practicable, our suppliers to introduce and implement similar principles of
social responsibility within their companies.
Responsibility
We believe each of our employees has an individual responsibility to follow this Code of
Conduct and encourage coworkers to abide by it as well. Management is responsible for
enforcing principles that become part of our rules or policies.

CONTINOUS IMPROVEMENT PROCESS

FAG believes that only by engaging in continuous process and product oriented innovation, will
the company succeed in the future. Therefore, to improve its position in the bearing industry,
where the competition is stiff, FAG implemented Continuous Improvement Process(CIP),
popularity known as CIP-culture.
CIP is a concept based on a continuous self-sustaining, learning and improvement
process.
The CIP support FAG on its course to becoming a high performance organization and
ensure that the beat practices are implemented in all areas of operations.
The CIP helps step up the pace of the optimization process geared to achieved the defined
goals.
CIP makes FAG quicker and flexible. With CIP program, we can recognize target
deviations even more quickly and take immediate counter measures.
The company launched the program “ CIP for Production” in 1998, giving each of the
employees the freedom to think and try new ideas. In addition, the company launched the
program “CIP for Sales” and “CIP for Service” in 1999 and 2000 respectively.

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FAG INDIA PRODUCT RANGE

Deep Groove Ball Bearing

Outer diameter: Up to 140 mm

Four Point Contact Ball Bearing

Outer diameter: Up to 130 mm

Self Aligning Ball Bearing

Outer diameter : Up to 140 mm

Double Row Angular Contact Ball Bearing

Outer diameter: Up to 90 mm

Taper Roller Bearing

Outer diameter: Up to 170 mm

Cylindrical Roller Bearing

Outer diameter: Up to 320 mm

Spherical Roller Bearing

Outer diameter: Up to 320 mm

Special Automotive Bearing

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APPLICATION OF THE PRODUCTS

1) Industrial purpose:-

 Equipment in steel work & Rolling mills

 Power Transmission Engineering

 Paper Industry

 Processing Engineering

 Pumps & Ventilation systems

 Construction machinery

 Material handling Engineering

 Electric machines

 Wind power plants

2) Automotive Purpose

 Motorcycles

 Three wheelers

 Cars

 Light & heavy commercial Vehicles

 Tractors

 Multi utility Vehicles

3) Railways

|AGBS-AHMEDABAD 34
 FAG-INDIA

MAJOR CUSTOMER : AUTOMOTIVE

|AGBS-AHMEDABAD 35
 FAG-INDIA

MAJOR CUSTOMER : HEAVY INDUSTRY

Jindal

Thyssenkrupp

Indian Railways

|AGBS-AHMEDABAD 36
 FAG-INDIA

FAG- INDIA COMPITITOR

Give a complete and through overview of the competitive market.cover not only the directly
competing companies you face(those who offer a very similar product with similar
attributes),but also other product variation you may be competing with .Fag concentrates in
selected business areas on expanding and on achieving a leading position in the field of
competition.FAG takes attention also on the distribution of high quality series and special rolling
bearing component for the international automative and aerospace industries and for the
international mechanical engineering and spare part supply market .

To secure FAG‟s market position ,it consistent innovation energy and customer oriented ,also
they compete with problems.Information is often the key to strong competitive advantage .what
are the differences between your product feature and theirs?in what media vehicles do they
promote their produtcts ? What is their overall goal (profitability,market share ,ledearship)?What
were their responses to changes you made in your product pricing or promotion? If you have had
difficulty digging up information about your competitors,try ypur supplier.

They can be good sources of information.FAG sets its standards for deliver performance.FAG
enters into development ,logistics and sales partnership with key customers.FAG also try to
improves it‟s material supply market attractiveness and cost structure through global sourcing
and systematic supply development.FAG observes its all relevant demand and technology trends
in the rolling bearing market.

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 FAG-INDIA

S.W.O.T ANALYSIS
STRENGHT:-

 Experienced and qualified manpower in the company.

 Organization wide talent retention program.
 Non-management employee compensation at par in the region.
 Training infrastructure and system in line with the group standards.
 Change adaptive and flexible approach for business growth.

WEAKNESSES:-

 Expected team orientation from internally focused functional

orientation to customer and organizational orientation.
 Inter union rivalry - self interest first, loosing focus on organization
employee first.
OPPORTUNITIES:-
 Talent and potential available for existing and new project.
 Development of existing and new competencies
 Training center facilities can be used for Schaeffler group companies in
India.
THREATS:-

 Contract labour issue cost implication on company in the eventuality of

regularization.
 Attracting of key talent by competitors, other company.
 Integration dynamics. (Business/People related issues).
 No bridge links for external support during unrest or any critical business
requirements. (political/logical/police etc)

|AGBS-AHMEDABAD 38
 FAG-INDIA

MARKETING
DEPARTMENT

|AGBS-AHMEDABAD 39
 FAG-INDIA

ORGANIZATION HIERARCHY
Vice President
(Marketing)

General General General MOT

Manager Manager Manager
Dy. General
(Sales) (Railway) (SMP/PT Manager
Business)

Manager Manager Manager Branch

(Sales and (Sales, Co-
Technical (F.O.R Sales) ordination,F.O. Officer
Services) B)

Assistant Executive Assistant Delhi

Manager (Sales (Sales and Manager
and Technical Coordination) (Sales and
Services) Coordination)

Assistant Executive Assistant Mumbai

Manager (Sales and Manager
(Pricing) Coordination) (Sales and
Coordination)

Executive Kolkata
(Application
Engineering)

Pune

Chennai

|AGBS-AHMEDABAD 40
 FAG-INDIA

FAG INDIA ZONAL WISE DISTRIBUTION

N

CERTIFIED
IMPORTERS

AUTHORISED
W E
STOCKISTS
S
RIGIONAL OFFICES

FAG INDIA has divided the whole market in basic four pats : North,South,East,Weast.In this
four part their respective authorized stockiest ,certified importers, and regional offices are
located. Information regarding the cities in which authorized stockiest, certified importers, and
regional offices located is given in charts below.

|AGBS-AHMEDABAD 41
 FAG-INDIA

REGIONAL OFFICE

REGIONAL OFFICES

NORTH EAST WEST SOUTH

NEW DELHI KOLKATA MUMBAI, CHENNAI
PUNE

AUTHORIZED STOCKIEST
AUTHORIZED
STOCKIEST

NORTH EAST WEST SOUTH

HARYANA ASSAM GUJARAT TAMILNADU

DELHI CHATTISGARH MADHYA PRADESH KARNATAKA

PUNJAB JARKHAND MAHARASTRA KERALA

RAJASTHAN WEST BENGAL GOA ANDHRA PRADESH

UTTAR PRADESH PONDICHERY

|AGBS-AHMEDABAD 42
 FAG-INDIA

SALES PROCEDURE
Step 1:-

In FAG INDIA all customers send their requirement according to their project. Then company
placed there requirement in to production department.

Company collect data by post, mail, fax or other way of communication to the related party.
After receiving data, company sends some quotation related to product to the customer as per
there requirement.

Step 2:-

Once customer meets with there requirement they ask for the time of dispatch and best
negotiation.

And FAG India is company who not directly sell there products, they mainly produce on order
based.

When company receives the order, they post there inventory needed. And as per customer they
start working on project.

It is the duty of the sales officer to see that the execution of order takes place as early as possible.
If any of the customers have some peculiar priorities and urgencies, then these are to be
forwarded to the appropriate department.

If customer ask for special purpose of bearing then, the design is made by Designing
Department, and they when it will approved by customer then after that order will be placed.

Step 3:-

Final step of this sequence is to deliver your product. Company fulfill there order on time as per
decided date, And dispatch order to customer. For the packaging FAG use simple box with ploy
thin bag, and then FAG transport product by used of privet transport.

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 FAG-INDIA

Sales Document
FAG INDIA has following types of documents related with sales.

1) Quotation letter:- Quotation letter is sent in replay of the customer inquiry via –email or
post whichever is preferable.

2) Order acceptance:-Order acceptance consists of the matter related with the acceptance
of customer orders. It is against the customer order and acknowledgment is sent and order
booked in SAP system.

3) Ordinary induce:- Ordinary induce is send just after order acceptance when the machine
costing procedure is done completely and the final cost of machines based on the market
variable (with continuously fluctuates) is decide ,it includes the gross amount of
machines and additional charges like octroi,taxes ,freight etc, So the customer comes to
know the final amount payable.

4) Final invoice:-At the end of delivery of machine, final invoice is prepared and sent with
transport bill or delivery channel, this is the final invoice.

|AGBS-AHMEDABAD 44
 FAG-INDIA

Market Segments
FAG India has divided the for its bearing into seven segment which have been described below.
The basic for dividing the market into seven segment are the size of the market in terms of value
,the nature of bearings required and the whether the bearing are imported or manufactured in
Baroda.

1) OEM (Original Equipment Manufacturer ) :- An OEM can be defined as the maker of

equipment marketed by another vendor ,usually under the name of the reseller .The OEM
may make only certain components or completed devices, which can then be configured
with the final product by the reseller .FAG become an OEM by virtue of supplying
bearings to various industries, out of whom about 100 customer are the regular customers
and the remaining are recurring or irregular customer .Maruti Udyog Ltd is the biggest
OEM customer.

2) A: Trade (SMP Industry) : - This segment caters to small medium and big industries
like various industry like pump, paper , sugar ,cement. Power plant, textiles mill and also
used very widely in to the pharmaceutical company as well as soft drink company.

2) B: Trade (Automotive After Market): This segment is caters to various After-Market

segments. It caters to the final customer, through the wide network of dealers and
distributors across the country and the world .The trade segment also includes the market
for replacement of bearing, especially in the automobile sector. this is the second biggest
segment for the FAG India.

3) Railways:- On the account of the huge value of turnover that comes from the railways,
the railways have been assigned a separate segment at FAG. In 2006 it is estimated that
22 crores of turnover will come from the railways. The railways are given bearings that
are manufactured locally in Baroda which are termed Self Manufactured Product or SMP
and the rest of the bearing that are required by the railways are imported from Germany,
because of its relatively low demand and its highly specialized components.

4) FOR:- Under this segment fall those customer to whom FAG supplies bearings that are
imported from Germany and not manufactured in Baroda. A warehouse in Bajwa in
|AGBS-AHMEDABAD 45
 FAG-INDIA

Gujarat has been specially assigned to hold these imported bearings.FAG India merely
trades in these bearings, it does not manufacture them.

5) FOB:- Certain bearings are shipped directly from Germany to the customer under the
brand of FAG India. These fall under the segment of FOB. Such direct dispatch occurs
because of customized and highly specialized customer requirements and transportation
and storage constraints.

6) Export:-FAG directly deal with the dealer and retailer. There production unit is in
Baroda and they export there product in different location of India and worldwide.

LOGISTIC
 FAG has a central warehouse in Baroda.
 FAG has also its warehouse in the cities where its major customer operators Gurgaon and
Noida
 There are network of authorize dealers and distributors and it is around 80.
 In Baroda, FAG provides the bearing at the end users in the replacement and trade
users segment to the warehouse of OEM customers and distributors. Besides, it has also
warehouse in states.
 Local sales tax rate applying in Tamilnadu.
 Cheaper transportation is good for FAG warehouse which is in Chennai.
 From Baroda FAG sells its products directly to dealers who are in Chennai at higher rates
of VAT.
 FAG transport their products through the
Couriers
Trucks
Railways

|AGBS-AHMEDABAD 46
 FAG-INDIA

CHANNELS OF DISTRIBUTION
FAG INDIA sales its product to the wholesalers and they are reserved by the company .they are
regular buyers of the ball bearing directly from the company .These companies are those which
are given required bearing only if they are in the position to buy bearing in bulk .If buyer
company is able to buy the product up to the amount limit as decided by the company ,FAG
directly sale its product the company has not a huge wholesaler because the customer of FAG are
already predicated .The company has many recognized wholesaler.

The company also recognized retailer all over country. They sales different types of bearing to
the buyer through the local buyers i.e. machine repairs, mechanics etc. The various machines
used in cement industry, machines in power plant, machine in cost station and mining etc. are
used from that retailer.

SUPPLY CHAIN MANAGEMENT

We are proud of our role as systems and engineering partner and that we are constantly able to
inspire our customers with new ideas and outstanding products.
One guarantee of success are suppliers who share our views. We work together, continuously
optimizing our products and modules, taking on board innovative ideas, testing our cost structure and
thereby jointly securing our outstanding position on the market.
With our suppliers, we strive for top class performance on behalf of our customers
Our efforts are fuelled by our superb customer orientation and our aim to optimize both product
quality and supply performance for our customers in the automotive industry.
Partnership as a basis for a dynamic relationship with our suppliers
We select suppliers according to objective and sustainable criteria and continually evaluate supply
performance on the basis of transparent criteria. The willingness of our partners to innovate means
ongoing product optimization. This both secures and expands our competitiveness in terms of
function, quality and price. We are a fair, high performing partner to our customers - we expect the
same commitment from our partners in the procurement market around the world.

|AGBS-AHMEDABAD 47
 FAG-INDIA

PROMOTIONAL ACTIVITY
Advertising
The advertising strategy will need to address not only the awareness-building requirement of
your plan, but also attitudes and actions you want to provoke in your audience. Set your
advertising strategies exactly what you are going to communicate in your message. When writing
this advertising section of your marketing plan, keep your strategies clear and focused on what
your are trying to achieve. These are the general for any company which need more advertise
itself like others. The reason for this is that the FAG provides its customer with their satisfactory
and required bearing.

The advertising budget of FAG is very less. FAG advertising by distributing calendar, poster,
FAG pens etc. so this is the way how FAG advertise not only that much, FAG have got indulged
into „kiosk advertising‟ , „Van campaign ‟, Tableau and other like price coupon . Thus, we can
say that they advertise for its bearing but no of that much the other company does for its products
or services.

Print Media

FAG very less go through print media like NEWS papers, holding but some times they do
advertisement in automobiles related Magazines .FAG bearing have their own industry news
papers like FAG Times which gives the information like which is the new product they are going
to lunch ,what Schaeffler Group doing in future etc.

VAN /TABALUE Campaign

In VAN and Tabalue Campaign they use van and small truck for the advertisement and
promotion .In Van and Truck they put all basic information of the FAG bearing and some time
they also organized some small event on it. They give basic information and make understand
the local mechanic and retailers, why they have to use the FAG bearing?

|AGBS-AHMEDABAD 48
 FAG-INDIA

Awareness Program

In this activity they hire one seminar hall in one good hotel and invite all local mechanics
,retailers ,and distributor to attend that seminar .Here they also provides free lunch and dinner
party to them. One executive team from company come and gives basic technical information
about bearing and also makes them understand what benefit they will gat from FAG bearing.

Stall Campaign / Kiosk

They placed there small stall or booth. Talk with people and make them understand about the
benefits of bearing. Also take participation in automobile fair.

Mechanic Incentive

They also provide very good incentive compared to their competitor on selling of FAG bearing
and also they give Premium incentive to their old customer and large quantity seller customer.

Exhibition/Automobiles Fair Participation

FAG bearing India Ltd also actively participated in various Exhibitions. Mainly FAG
participated in International and National level exhibition not in local level exhibition.

Others Activity

FAG also makes advertisement by distributing booklets, calendars, poster, FAG pens etc.

|AGBS-AHMEDABAD 49
 FAG-INDIA

PRICING
How do you know to price your product? Your product‟s price often communication as much to the
consumer as its advertising. People perceive a product‟s value based on its price in many situations it
depends on what your product is and who your market is. Write the pricing strategy section of your
marketing plan and back up your pricing decisions with current data about competitor‟s prices, price
surveys, etc. FAG sets their price of product on the base of their segments.
 Pricing for OEM segments
Type of product
Competition
Demand of customer
 Pricing for the trade segment

TRAINING
INA/FAG Technical Training Centre
Who we are – goals and functions
The INA/FAG Technical Training Centre is focused primarily on the basic and advanced
technical training of Schaeffler Group personnel as well as our sales partners. The content and
depth of the knowledge conveyed are oriented essentially to the duties of the relevant employee
or target group.
The goal of the training and qualification measures of the INA/FAG Technical Training Centre is
to achieve skilled INA/FAG employees in External Sales and advisory work in the business
divisions Machine Building and Automotive.
This goal is also applied to our sales partners.
The INA/FAG Technical Training Centre communicates technical methodological expertise in:

Theory and principles of rolling bearings, plain bearings and linear technology

Detailed product knowledge, assembly and applications

Analysis, application and calculation of products

Operational processes

Procedures in the market sectors and central departments of the Schaeffler Group

|AGBS-AHMEDABAD 50
 FAG-INDIA

PROJECT PROFILE

|AGBS-AHMEDABAD 51
 FAG-INDIA

PROJECT BACKGROUND
The basic of this project is to learning various marketing activity done by the company, how
the company forecast sales through forecasting tool. The study also followed by what is the
condition of company bearings in replacement market and what are the factor affect them?

PROJECT IMPORTANCE
The main objective of the project is to learn about “Replacement market and forecasting the
sales “the company .The project is aimed to learn and gain knowledge of day to day working of
the organization and how the decision are taken. The project also help in knowing the various
advertisement and promotion activity done in B2B.

PROJECT OVERVIEW
Title of the Project

“MARKET RESERCH AND STUDY FORCASTING TOOL OF BEARINGS”

Objective of the study

1. To know and understand the replacement market and various factor affecting for the
sales of bearing

2. To know and understand the forecasting tool of company and its uses. .

I have conducted some primary based survey research for two wheeler /Heavy Vehicle (Like
Tractor) through questioners we have prepared. The detail of research project is given below.

|AGBS-AHMEDABAD 52
 FAG-INDIA

RESEARCH OBJECTIVE
(A) Primary Objective:-

To study about Replacement market of wheel bearing (Two wheeler/Heavy

Vehicle)

(B) Secondary Objective:-

1. To study about competitor.

2. To study about awareness among the Retailers and Mechanics towards wheel

Bearing of FAG.

3. To study about Acceptability of FAG bearing

4. To study about various factor affecting the FAG wheel bearing.

Scope of the research

The survey is conducted at Baroda region. It may happen that the finding or views differ when
the location change. The scope of the survey thus remains till the place where it is conducted.

Research Designed

It is overall framework of project that indicate what information to be collected from which
sources and by which procedures. For that one excel sheet is given by the external guide in
which detail description is given about the bearing and what kind of the

Sampling Design

A sample design is a definite plan for obtaining a sample from a given population. It refers to
the technique or the procedure that researcher would adopt in selecting items from sample.
Sampling plan may as well lay down the member of items to be inched in the sample i.e. the
size of sample .Sampling plan is determined before data are collected.

|AGBS-AHMEDABAD 53
 FAG-INDIA

Universe of Research

The research would be conducted in Baroda. So the universe for the study would be
Baroda.

Sampling Unit

The Sampling would include the following

Retailer and Mechanics: - 50 unit

Sampling Procedure

Non-Probability convenient sampling design had been used and the sampling method
employed was convenience sampling

|AGBS-AHMEDABAD 54
 FAG-INDIA

RETAILER INCENTIVE
SCHEME

|AGBS-AHMEDABAD 55
 FAG-INDIA

Retailer Incentive Scheme (RIS)

In Retailer Incentive Scheme, FAG provides incentive to their retailer. To maintain its record
manually FAG bearings India Ltd have made one form which is called as the “Retailer
Incentive Scheme- Registration Form”.

In this form all the detail is taken from the retailer like, duration for what they want retailer
ship, address, name etc. In this form they provide the detail to retailer what incentive they will
get and what will be the condition for that.

They also provide one unique retailer code to each retailer, after that they will divides the all
retailer group according to zone like North, East, West ,South and make their file zone wise.
So they can easily get the information about retailer from their unique code system and zonal
wise division.

The sample of the “Retailer Incentive Scheme- Registration Form” is given below.

|AGBS-AHMEDABAD 56
 FAG-INDIA

Retailer Incentive Scheme- Registration Form

Shop Name: __________________________________________________

Retailer Code:-______________________ Date:-_____________________

Retailer Name:-________________________________________________

Address:-_____________________________________________________

_____________________________________________________

City /State: - _____________ Mobile No:-______________________

E-mail:-_______________ Phone-___________________________

Remark:-_____________________________________________________

Quarterly Incentive:-___________________________________________

Quarterly Achievement:- %Incentive

Rs 30,000/- 2%

Rs 40,000/- 3%

Condition:-The above incentive will be calculated based on the proof of billing

provided by our distributer .The incentive above 1000/- paid by cheque.

|AGBS-AHMEDABAD 57
 FAG-INDIA

FORECASTNG TOOL

|AGBS-AHMEDABAD 58
 FAG-INDIA

Forecasting Tool:
FAG Bearing India Ltd use Global forecasting tool for Sales and Controlling Optimization.
It is specially made for FAG Company as per there requirement. Forecasting tool secured by
personal user id and password. So unauthorized person can not access or misused it. For
forecasting they have done some survey to recognize demand of customer at present and also
in future. And as per the data they gather, they will do production of bearing.
Use of Forecasting tool:-
Function of forecasting tool:-

 Production Plane as per demand.

 To understand the market share.

 To make the decision on prizing development and also to understand the prizing
comparison with competitor

 For Volume Development

 For Inventory Management

 To understand the cost of bearing

 To Plan Plant Loading (Where you will manufacture? What kind of bearing you
manufacture?)

 Use to understand Financial out look

 To capture new market and also retain existing customer.

In Forecasting tool they will use 3 year data as the input data for the analysis purpose. One data
of current year(for example 2009) ,one data of next year this year they called as Budget year
(for example 2010),one data from next to next year this year they called as Midterm planning
year (for example 2011) .This whole thing is called as Planning Horizon .

|AGBS-AHMEDABAD 59
 FAG-INDIA

Factor affecting:-

 Economic Scenario all over the Globe.

 Market Share of the competitor in various segment of bearing.

 New customer and new market.

 Demand of the bearing.

 Pricing of the bearing and also competitors price.

 Raw Material availability.

|AGBS-AHMEDABAD 60
 FAG-INDIA

DATA ANALYSIS
AND
INTERPRETATION

|AGBS-AHMEDABAD 61
 FAG-INDIA

B) Specify the brand name of bearing you aware .

(Total Respondent:- 50 Retailers)

Brand Name(Variables) Number of Respondent Response (in %)

FAG 50 100
SKF 50 100
NBC 30 60
HMT 5 10
ABC 15 30
TATA 32 64
DELUXE 25 50
TIMKEN 13 26
NTN 20 40
NMB 21 42

Interpretation:-

This question is shows the brand awareness in public, from this interpretation the company
can seen their active competitor in market. From this result company can make their
marketing strategy. Here we can see that SKF, NBC, TATA are active competitor to FAG.

|AGBS-AHMEDABAD 62
 FAG-INDIA

C) Which brand of the bearing you stock?

(Total Respondent:- 50 Retailers)

Number of
Brand Name(Variables) Response (in %)
Respondent
FAG 40 80
SKF 48 96
NBC 35 70
HMT 8 16
ABC 27 54
TATA 18 36
DELUXE 11 22
TIMKEN 26 52
NTN 10 20
NMB 16 32

Interpretation
This question shows the brand preference of stockiest. Which, make company to understand
the preference of stockiest so that they can develop idea to capture new market and sustain in
exiting market. Give idea about promotional activity.

|AGBS-AHMEDABAD 63
 FAG-INDIA

D) What factor you are considering while stocking any brand?

(Respondent:- 50 Retailers)

Variable No of Respondent Response (%)

Demand 45 90
Profit Margin 48 96
Distributor service 35 70
Quality 30 60
Others 20 40

Interpretation
The above question has been formed to know different factor which is affecting in stock
bearings like demand, profit margin, distributor service, quality and others. According to which
I had severed and find that profit is prime factor of any stockiest and then demand.

|AGBS-AHMEDABAD 64
 FAG-INDIA

E) Form which sources you aware about FAG bearing?

(Respondent:- 50 Retailers)

Variable No of Respondent Response (%)

Advertisement 25 50
Sales man 36 72
Mechanics 38 76
Retailer 18 36
Promotional Activity 20 40
News paper 10 20

Interpretation
This question is mention that from which source people can aware about FAG Bearings. And I
take in to consideration different factor from which through salesman and mechanics more
number of people know about FAG Bearings.

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 FAG-INDIA

(G) Rate below company’s bearing according to its quality.

(Respondent:- 50 Retailers)

Variable Excellent Good Satisfactory

FAG 45 5 0
SKF 50 0 0
TIMKEN 18 27 5
TATA 10 28 12
HMT 7 6 12
NRB 15 17 37
ABC 10 20 5
NBC 4 9 13

|AGBS-AHMEDABAD 66
 FAG-INDIA

Interpretation
The above question has been formed to know the quality rating for different brand of
company. You can see that from quality point of view FAG and SKF is leading the
market.

|AGBS-AHMEDABAD 67
 FAG-INDIA

H) Rate below company’s bearing according to its price margin.

Variable Excellent Good Satisfactory

FAG 30 12 8
SKF 35 10 5
TIMKEN 18 27 0
TATA 10 28 7
HMT 7 6 12
NRB 15 17 2
ABC 10 6 0
NBC 4 9 13

|AGBS-AHMEDABAD 68
 FAG-INDIA

Interpretation
This question shows that which brand having highest price margin in the market. From
that company can aware that which brand gives competition on price margin and from
how much margin. So that company also can develop new pricing method which can
lead to success in capturing highest market share. From above graph SKF is having
highest margin, FAG is on second position.

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 FAG-INDIA

RECOMMENDATION

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 FAG-INDIA

RECOMANDATION

 FAG mainly deal with mechanics so they are prime customer of company. So they have
to develop new scheme for them.

 Local brands are directly affected to bearing market because of there low price. So
FAG has to maintain its quality and make some pricing strategy.

 Company mainly focused on international level automobile exhibition or fair for the
advertisement of company but at same time they also have to participate in some local
fair and exhibition so that local mechanics and end user more come to know about the
bearings.

 Company must have to improve their relation with retailer because they thing that FAG
bearing is not much interested in replacement market.

 The distributor and Marketing Sales Representative should be advised to respect the
small orders of C class retailer (Sales turn over less then Rs.4 lakhs) because around 48
% of retailers are C class. As per my survey TATA bearing have consistent approach
towards all the retailer and also they concentrated on small turn over retailer equally. So
FAG also has give equal importance to C class retailer.

 To come in touch with people directly FAG have to give some advertisement activity
like give advertisement in local news papers, or sponsor some social event.

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 FAG-INDIA

CONCLUSION

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 FAG-INDIA

FAG India is second largest bearing produce in the world. And the production unit of FAG is
in Baroda. So it‟s better opportunity to have my internship with FAG-India. I had done market
research on the market potential of FAG during my SIP, from that I want to conclude that.

There are so many good competitor of FAG in market like SKF, TATA, TIMKEN, and NRB.
In quality accept SKF no brands compete with FAG. All the major player of the organization
sector has good presence in the market as well as Import & Un-organized sector also plays a
crucial role due to its cheaper price and replacement guarantee.

Market potential is increasing at slow pace while supply increasing day to day due to un-
organized and local brand based bearing. In this situation market is become more price
sensitive .So one can easily enter into the market on price base. So company has to maintain its
quality with low price.

And main thing on which company has to emphasize is local competitor. Because they sale
product with low price and because of that customer more attract toward them.

So market potential of company is affected due to these local and Chinese brands. So if
company have to maintain there customer and capture new market than they have to
concentrate on price, replacement, service, pricing scheme, advertising, brand awareness ,
customer satisfaction and also create good relationship with customer.

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 FAG-INDIA

BIBILIOGRAPHY

 Web source
www.fag.co.in

www.fag.com

www.bearingsindustry.com

www.tradeinfoline.com

www.bearingtrades.com

www.bearingindia.com

 Previous Year training report

 Induction manual of FAG

|AGBS-AHMEDABAD 74
 FAG-INDIA

ANNEXURE:

Questionnaire

List of Retailer in Baroda

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 FAG-INDIA

QUESTIONNAIRE

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 FAG-INDIA

ANNEXURE I:

Dear Sir/Madam

I, Parmar Prakash M, Student of Amity Global Business School-Ahmadabad. As part of my

curriculum, I am conducting a market research to know the perception and position of the
different wheel bearing companies in the replacement market and also to know the
acceptability of wheel bearing kit.

Kindly give your co-operation in filling this questionnaire and enable us to conduct the
research successful.

(A) Personal Details:-

Name:-_________________________________________________________

Shop Name:-____________________________________________________

Address of shop:-_________________________________________________

Years of Experiences:-_____________________________________________

(B) Specify the brand name of bearing you aware.

FAG SKF NBC TATA HMT

ABC NMB TIMKEN NTN

If other____________

(C) Which brand of the bearing you stock?

FAG SKF NBC TATA NRB

ABC NMB TIMKEN NTN

If other___________

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(D) What factor you consider while stocking any brand?

Demand Profit Margin Distributor service

Quality If other_____________

(E) Form which sources you aware about FAG bearing?

Advertisement Sales person of company Mechanics

Retailer Promotion activity News paper

If other___________

(F) What are the reasons you stock FAG bearing?

(G) Rate below company‟s bearing according to its quality.

(1-Excellent ,2-Good,3-Satisfactory)

FAG SKF NBC TATA HMT

ABC NMB TIMKEN NTN

If other_____________________

(H) Rate below company‟s bearing according to its price margin.

(1-Excellent, 2-Good, 3-Satisfactory)

FAG SKF NBC TATA HMT

ABC NMB TIMKEN NTN

If other_______________________

Thank You

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ANNEXURE II:

Retailer in Baroda

Category Sales Turnover No. of Retailer

(Rs per Month)

A Above 10lakhs 35

B 4 to 10 lakhs 55

C Less than 4 lakhs 82

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ANNEXURE III:

List of Retailer in Baroda

Sr. No. Category Name of Shop

Ajwa Road
1 C Jay Prabhu Auto Parts
2 C Maruti Auto Part
3 C Meera Auto Parts
4 B New Super Auto Parts
Akota
5 C Sweta Auto Parts
Alkapuri
6 A Ajay Automobiles
7 A Bhavini Auto Agency
8 C Shiv Sakti Auto Parts
9 C Star Auto Parts
10 B Yash Auto Parts
11 B M.K Auto center
Bajwa
12 B Ankit Automobile
Channi
13 B Jagaji Auto Parts
14 c Sagar Auto Parts
15 C Pramukh Auto Parts
Dandia Bazar
16 A Autoride Auto Parts
Fatehganj
17 B Rose Auto Parts
18 B Amin Automobiles
Fatehpura
19 A Akbari Auto Centre
20 A Apex Auto Centre
21 B Asha Auto Parts
22 B Diamond Auto Parts
23 C Honest Auto Parts
24 C Jaidev Auto Parts
25 C Standard Auto Parts
Gorawa
26 C Haris Automobile
27 C Shiv Automobiles
28 B Bhagvati Auto Parts

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Sr. No Category Name Of Shop

Harni Road
29 B Mangal murti Auto
30 C Swastika Auto Parts
Jubilee Baug
31 B Hari Auto Parts
32 A Jyoti Auto Supplier
Kareli Baug
33 B Golden Auto Agency
34 A Sanjay Auto Parts
Makarpura
35 C Akash Auto Parts
36 B Ambe Auto Parts
37 B Bhavini Auto Parts
38 C Jalaram Auto parts
Manjalpur
39 A Arihant Auto Centre
Nagarwada
40 C Amit Auto Parts
41 A Globe Automobiles
Nizampura
42 C Friends Auto Parts
OP Road
43 A Raj Auto
Pani Gate
44 B Alankar Auto Pars
Pratapnagar
45 C Jay Auto Parts
Rajmahal Road
46 A Milap Auto Parts
Sama Road
47 B Suraj Auto Parts
48 B Shiv Automobiles
49 C Adil Auto Parts
50 A Nikita Enterprise

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