SUMMER INTERNSHIP PROGRAM

FINAL REPORT

Analyzing Market Potential

For Franchisee Acquisition

Name of the company: Motilal Oswal

Connaught Place (New Delhi)

NAME : MOHIT CHOMAL

ENROLLMENT NO. : 08BS0001770
IBS,NOIDA
[1]
 FINAL REPORT
ON

Analyzing Market Potential

For Franchisee Acquisition
By
MOHIT CHOMAL
A Report submitted in partial fulfillment of the
requirements of
MBA program of ICFAI Business School, Noida

Submitted To
MR. RAKESH SHARMA
Company Guide
Motilal Oswal, Connaught Place, New Delhi

Prof. Y.P.GUPTA
Faculty Guide
ICFAI Business School, Noida

[2]
 TABLE OF CONTENTS

S.No. Topic Page

No.
Authorization 4
Acknowledgment 5
Executive Summary 6
Chapter 1 Overview Of Industry

1.1 Broking Industry Insight 3

1.2 Major developments in equity brokerage industry in India 7
1.3 Growth Driver of Equity Market 9
1.4 Market Analysis of Broking Business 10
1.5 Major players in the industry 12

Chapter 2 Introduction to the Project

2.1 Need for the Project 14

2.2 Objectives of the project 15
2.3 Scope of the project 16
2.4 Limitations of the Project 16
Chapter 3 Introduction of Motilal Oswal

3.1 History 19
3.2 Motilal Oswal Products & Services 20
3.3 Business Acquisition Group 27

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3.4 Competitor Analysis 28
Chapter 4 Research Methodology

4.1 Methodology used for this Project 34

Chapter 5 Data Analysis

5.1 Main Broker & Sub – broker Analysis 45

5.2 Detailed Analysis of the Questionnaire 47
5.3 Cross Tab Analysis 59

5.4 Prospects Generated for Motilal Oswal Securities Ltd. 66

5.5 Micro Profiling of the best Prospects 68

Chapter 6 Recommendations

6.1 Recommendations 73
6.2 Conclusion 74

Annexure
Survey Questionnaire 76

Appendix
Bibliography 80

[4]
 LETTER OF AUTHORIZATION

This is to certify that this Marketing Research report, title “Analyzing the Market
Potential for Franchisee Acquisition” is the bonafide work of Mr. Mohit Chomal of
ICFAI Business School, Noida.

The report will only be used for Motilal Oswal Securities Ltd. Internal use and
will not be used as a commercial data.

Authorized by:

Mr. Rakesh Sharma

Manager, BAG

Motilal Oswal Securities Ltd.

(Company Guide)

[5]
 ACKNOWLEDGEMENT

“Words express everything

Mouth Co-ordinates,

When it comes to gratitude,

Heart comes to play.”

It gives me immense pleasure for an opportunity to have undergone my Summer

internship with Motilal Oswal Securities Limited. There is always a sense of gratitude
which one expresses to other people for their helpful and needy service they render
during phases of life. I too would like to do the same as I really wish to express my
gratitude to those who have been helpful to me in getting this project completed.

In representing this report I would like to express my gratitude to Mr. Rakesh

Sharma, Manager, Motilal Oswal Securities Limited for giving me this wonderful
opportunity to work with Business Associate Group, and providing me with his able
guidance and inspiration for the completion of project.

I would also like to express my gratitude to Mr. Munish Chauhan for his co-
operation and guidance without which this project would never have been a success.

I am also indebted to all the internal employees and fellow trainees of Motilal Oswal
for providing consistent encouragement and congenial atmosphere to complete the
project.

Last but not the least I will express my sincere thanks to Prof. Y.P. Gupta and ICFAI
Business School for providing me with support and necessary guidance and valuable
instructions for the completion of this project.

[6]
Executive Summary
It is well evident that work experience is an indispensable part of every professional
course. In the same manner practical training is must for each and every individual
who is undergoing management course.

Without the practical exposure one cannot consider himself or herself as a qualified
capable manager. During the project period student can learn through his own
experience, the real situation of market and corporate world and to put his theoretical
knowledge into practice. Hence to fulfill the requirement, I have completed my Two
Months Internship in Motilal Oswal Securities Ltd. on the topic “Market Potential for
Franchisee”, given to me by my company guide.

Being new to the Stock Market, I was engrossed fully into the sector where I was told
to understand the basics of stock market, the effect of recession on this sector, I was
told to educate various sub brokers operating in Delhi about the benefits of the
Franchisee being offered by Motilal Oswal, and how this opportunity can profit both
the parties. I also did a survey for extracting information from brokers, which would
be helpful for the company to find a suitable partner as a franchisee holder.

I was told to make calls and generate the franchisees for the company. Some time I
have to extract the information from my sources because no one is they’re waiting for
you it’s actually you, which have to make things happen in your favor. So I read
articles brochures pamphlets in my free time there. Every day have its own experience
and a short-term goal. So I adopted the line that let the dreams of today determine the
opportunities of tomorrow and I inculcated the same positive attitude in to me so that
I would work there effectively and efficiently.

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 Chapter 1
OVERVIEW OF INDUSTRY

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1.1 Broking Industry Insight
The equity brokerage industry in India is one of the oldest in the Asia region. India
had an active stock market for about 150 years that played a significant role in
developing risk markets as also promoting enterprise and supporting the growth of
industry.

The working of stock exchanges in India started in 1875. BSE is the oldest stock
market in India. The history of Indian stock trading starts with 318 persons taking
membership in Native Share and Stock Brokers Association, which we now know by
the name Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent
recognition from the Government of India. National Stock Exchange comes second to
BSE in terms of popular.

Stock trading is a big business in any way and in any standards. With daily volumes
of Rs12000-15000 crore (on the BSE and NSE) in the cash segment and a volume of
about Rs 30,000 – 35,000 crore in the derivative market, the size of the industry is
around Rs 5,000 crore per annum in terms of broking revenues. Meanwhile the
trading business too is booming. BSE and NSE represent themselves as synonyms of
Indian stock market. The history of Indian stock market is almost the same as the
history of BSE. The current "stock market" is comprised of 300,000 computers
situated on pro trader's desks. These computers are networked together using
sophisticated protocols. This level of information sharing makes pricing an almost
exact science.

These 300,000 computers are further linked to another 26 million computers

worldwide. These computers are located in banks, small businesses, and large

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corporations. These computers comprise the banking networks, which make
computerized transactions possible.

Finally, these computers are connected to another 300 million+ computers, which
connect and disconnect from the financial markets daily. In New York City alone,
these transactions amount to over $2.2 trillion dollars daily.

Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark
was crossed in June and the 8000 mark on September 8 in 2005 and by 2007 It has
already seen mark 14500. Many foreign institutional investors (FII) are investing in
India. The liberal economic policies pursued by successive Governments attracted
foreign institutional investors to a large scale.

The unpredictable behavior of the market gave it a tag – ‘a volatile market.’India,

after United States hosts the largest number of listed companies. Global investors
now ardently seek India as their preferred location for investment.

• Beginning of a New Equity Culture

A new phase in the Indian stock markets began in the 1970s, with the introduction of
Foreign Exchange Regulation Act (FERA) that led to divestment of foreign equity by
the multinational companies, which created a surge in retail investing. The early
1980s witnessed another surge in stock markets when major companies such as
Reliance accessed equity markets for resource mobilisation that evinced huge interest
from retail investors.

A new set of economic and financial sector reforms that began in the early 1990s
gave further impetus to the growth of the stock markets in India. As a part of the
reform process, it became imperative to strengthen the role of the capital markets that
could play an important role in efficient mobilization and allocation of financial
resources to the real economy. Towards this end, several measures were taken to
streamline the processes and systems including setting up an efficient market
infrastructure to enable Indian finance to grow further and mature. The importance of
an efficient micro market infrastructure came into focus following the incidence of

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market abuses in securities and banking markets in 1991 and 2001 that led to
extensive investigations by two respective Joint Parliamentary Committees.

The Securities and Exchange Board of India (SEBI), which was set up in 1988 as
an administrative arrangement, was given statutory powers with the enactment of the
SEBI Act, 1992. The broad objectives of the SEBI include

• to protect the interests of the investors in securities

• to promote the development of securities markets and to regulate the securities

markets

The scope and functioning of the SEBI has greatly expanded with the rapid growth
of securities markets in India in the last fifteen years.

Following the recommendations of the High Powered Study Group on Establishment

of New Stock Exchanges, the National Stock Exchange of India (NSE) was
promoted by financial institutions with an aim to provide access to investors all over
the country. NSE was incorporated in Nov 1992 as a tax paying company, the first of
such stock exchanges in India, since stock exchanges earlier were trusts, being run on
no-profit basis. NSE was recognized as a stock exchange under the Securities
Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in
wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov
1994. The setting up of the National Stock Exchange brought to Indian capital
markets several innovations and modern practices and procedures such as nationwide
trading network, electronic trading, greater transparency in price discovery and
process driven operations that had significant bearing on further growth of the stock
markets in India.

Faster and efficient securities settlement system is an important ingredient of a

successful stock market. To speed the securities settlement process, The Depositories
Act 1996 was passed that allowed for dematerialization (and re-materialization) of
securities in depositories and the transfer of securities through electronic book entry.
The National Securities Depository Limited (NSDL) set up by leading financial

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institutions, commenced operations in Oct 1996. Regulations governing selection of
various types of market intermediaries as depository participations were made.
Subsequently, Central Depository Services (India) Limited promoted by Bombay
Stock Exchange and other financial institutions came into being.

• Rapid Growth

The last decade has been exceptionally good for the stock markets in India. In the
back of wide ranging reforms in regulation and market practice as also the growing
participation of foreign institutional investment, stock markets in India have showed
phenomenal growth in the early 1990s. The stock market capitalization in mid-2007
is nearly the same size as that of the gross domestic product as compared to about 25
percent of the latter in the early 2000s. Investor base continued to grow from
domestic and international markets. The value of share trading witnessed a sharp
jump too. Foreign institutional investment in Indian stock markets showed
continuous rise reaching about USD10 bn in each of these years between FY04 to
FY06. Stock markets became intensely technology and process driven, giving little
scope for manual intervention that has been the source of market abuse in the past.
Electronic trading, digital certification, straight through processing, electronic
contract notes, online broking have emerged as major trends in technology. Risk
management became robust reducing the recurrence of payment defaults. Product
expansion took place in a speedy manner. Indian equity markets now offer, in
addition to trading in equities, opportunities in trading of derivatives in futures and
options in index and stocks. ETFs are showing gradual growth. Within five years of
introduction of derivatives, Indian stock markets now are ranked first in stock futures
and fourth in index futures. Indian stock markets are transaction intensive and thus
rank among the top five markets in this regard. Stock exchange reforms brought in
professional management separating conflicts of interest between brokers as owners
of the exchanges and traders/dealers. The demutualization and corporatization of all
stock exchanges is nearing completion and the boards of the stock exchanges now

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have majority of independent directors. Foreign institutions took stake in India’s two
leading domestic stock exchanges. While NYSE Group led consortium took stake in
the National Stock Exchange, Deutsche Borse and Singapore Stock Exchange bought
equity in the Bombay Stock Exchange Ltd.

1.2Major Developments in Equity Brokerage Industry in India

i) Corporate memberships

There is a growing surge of corporate memberships (92% in NSE and 75% in BSE),
and the scope of functioning of the brokerage firms has transformed from that of
being a family run business to that of professional organized function that lays
greater emphasis on observance of market principles and best practices. With
proliferation of new markets and products, corporate nature of the memberships is
enabling broking firms to expand the realm of their operations into other exchanges
as also other product offerings.

ii) Wider product offerings

The product offerings of brokerage firms today go much beyond the traditional
trading of equities. A typical brokerage firm today offers trading in equities and
derivatives, most probably commodities futures, exchange traded funds, distributes
mutual funds and insurance and also offers personal loans for housing, consumptions
and other related loans, offers portfolio management services, and some even go to
the extent of creating niche services such as a brokerage firm offering art advisory
services.

iii) Greater reliance on research

Client advising in India has graduated from personal insights, market tips to
becoming extensively research oriented and governed by fundamentals and technical
factors. Vast progress has been made in developing company research and refining

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methods in technical and fundamental analysis. The research and advice are made
online giving ready and real time access to market research for investors and clients,
thus making research important brand equity for the brokerage firms.

iv) Accessing equity capital markets

Access to reliable financial resources has been one of the major constraints faced by
the equity brokerage industry in India since long. Since the banking system is not
fully integrated with the securities markets, brokerage firms face limitations in
raising financial resources for business and expansion. With buoyancy of the stock
markets and the rising prospects of several well-organized broking firms, important
opportunity to access capital markets for resource mobilization has become available.
The recent past witnessed several leading brokerage firms accessing capital markets
for financial resources with success.

v) Foreign collaborations and joint ventures

The way the brokerage industry is run and the manner in which several of them
pursued growth and development attracted foreign financial institutions and
investment banks to buy stakes in domestic brokerage firms, paving the way for
stronger brokerage entities and possible scope for consolidation in the future. Foreign
firms picked up stake in some of the leading brokerage firms, which might lead to
creating of greater interest in investing in brokerage firms by entities in India and
abroad.

vi) Specialized services/niche broking

While supermarkets approach are adopted in general by broking firms, there are
some which are creating niche services that attract a particular client group such as
day traders, arbitrage trading, investing in small cap stocks etc, and providing
complete range of research and other support to back up this function.

vii) Online broking

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Several brokers are extending benefits of online trading through creation of separate
windows. Some others have dedicated online broking portals. Emergence of online
broking enabled reduction in transaction costs and costs of trading. Keen competition
has emerged in online broking services, with some of these offering trading services
at the cost of a few basis points or costs, which are fixed in nature irrespective of the
volume of trading conducted. A wide range of incentives is being created and offered
by online brokerage firms to attract larger number of clients.

viii) Compliance oriented

With stringent regulatory norms in operation, broking industry is giving greater

emphasis on regulatory compliance and observance of market principles and codes of
conduct. Many brokerage firms are investing time, money and resources to create
efficient and effective compliance and reporting systems that will help them in
avoiding costly mistakes and possible market abuses.

ix) Focus on training and skill sets

Brokerage firms are giving importance and significance to aspects such as training
on skill sets that could prove to be beneficial in the long run. With the nature of
markets and products becoming more complex, it becomes imperative for the
broking firms to keep their staff continuously updated with latest development in
practices and procedures.

1.3 Growth Driver of Equity market

The major growth drivers for brokerage revenue and trading volume are:-

• Continuous fall in brokerage fees: This is happening due more and more
interest of people in broking and huge competition in the market. Many
Broking houses are reducing their brokerage in order increase the volumes of
trading/jobbing intra-day and gross. Resulting in a compensation for the

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 reduced fees. The client gets an advantage and wishes for more and more intra-
day sell and purchases. There’s a limit on the same as 8-10 times depending
upon the broking house and the reputation of the client in the market.

• Adoption of technology: Earlier most of broking houses used simple

connection to connect to the BSE/NSE or the Main Broker. But, these days
many have started using V-SAT technology which is highly advanced, secure
and fast.

• Centralized operations: The Back office is no more a setup in broking houses

it’s all web-based having its roots at the registered office of the firm. This
helps in reducing the deviations from the set guidelines and results in fast and
secure transactions. Hence, more control, equality and effectiveness are
observed even in the remotest franchisee of the firm.

1.4 Market Analysis of Broking Business

Buyer Power
Lack of Expertise Curtails Bargaining Power

Knowledge of the industry in which one is working is very important without

knowledge one cannot even think of growing in the market. Knowledge is the only
thing in this which cannot be Sold, purchased or stolen it can only be gained by
experience, studying or through a seniors advice. Retail investors often lack the
knowledge and expertise in the financial sector that calls them to approach the
broking houses, which have complete a research reports and market updates in order
to guide the investor decision and to create wealth.

Low Product Differentiation Proves Beneficial

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The retail broking services provided by the various companies are homogeneous with
very low product differentiation. This allows customers to enjoy a greater bargaining
power. The only difference widely observed is either the Brand of the broking or the
support which he provides apart from usual share trading.

Intensity of Competition
Move towards consolidation
Lot of brokerage companies is moving towards consolidation with the smaller ones
becoming either franchisees for the larger brokers or closing operations.

Increased Focus of Banks in Retail Broking

Various foreign banks like ABN Amro and others are planning to enter the Indian
retail brokerage industry. This can be taken as positive note from the view of the
whole industry, since it is growing so more and more people are willing to be a part of
it as well as a negative note from the view of broking houses, since it will increase
competition in the market.

Online Trading Competes with Traditional Brokerage

There is an increasing demand for online trading due to consumer’s growing
preference for internet as compared to approaching the brokers.

• Threat of New Entrants

• Entry of Foreign Players
New forms of trading including T+2 settlement system, dematerialization etc are
strengthening the retail brokerage market and attracting foreign companies to enter
the Indian industry.

• Threat of Substitutes
• Alternative Investment Options
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Various alternative forms of investment including fixed deposits with banks and post
offices etc act as substitutes to retail broking products and services.

1.5 Major Players in the Industry

✔ ICICI Securities Ltd. (www.icicidirect.com)

✔ Kotak Securities Ltd. (www.kotaksecurities.com)

✔ India bulls Financial Services Limited (www.indiabulls.com)

✔ India Info line (www.5paisa.com)

✔ IL&FS invest mart Limited (www.investsmartindia.com)

✔ SSKI Ltd. (www.sharekhan.com)

✔ Fortis Securities (Religare) (www.fortissecurities.com)

✔ Karvy (www.karvy.com)

✔ HDFC Securities (www.hdfcsec.com)

✔ Motilal Oswal Securities (www.motilaloswal.com)

[18]
 Chapter 2.
INTRODUCTION TO THE PROJECT

[19]
Being a reputed company in the business it is of utmost importance for Motilal Oswal
to be aware of what is going on in the market, what is expected of them and how are
they performing and do they need any improvements. So, to cover all these areas a
detailed analysis of all this aspects has been done. The project revolves around the
whole financial market business. Through this project, an effort towards
understanding and throwing more light on every aspect related to the business has
been undertaken. It will surely help Motilal Oswal in getting a detailed insight into the
business and developing marketing strategy in such a way that most can be reaped
from the market of franchisee integration. Not only that, it was tried to give the
business a new dimension in terms of approaching the sub-broker to generate leads
which may in turn help in getting larger market share. The project had two market
research parts
➢ Market survey of the prospective sub-brokers
➢ Expansion plan of Motilal Oswal.
Besides that the marketing strategies used by other companies in same business was
studied and suggestions were drawn to develop an effective strategy.
Besides these major issues many other issues were taken care of in this report.

2.1The Need for This Project

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➢ No study has been done on this business so far – So far no study has been
done regarding this business in New Delhi, so a detailed study of the market is
required to understand it properly.
➢ Lack of understanding of the need of the business houses – Since no
segmentation study has been done the specific needs of different companies are
not known.

➢ Focus the existing marketing team at right market – The lack of

understanding of the market wastes a lot of effort of the sales team. The
business is generated through cold calls right now. But if there was a proper
understand the requirement of each type of market segment the sales team may
pitch in right mix of products to the right prospective clients.
➢ Lot of small players cropping up – It always creates a problem when the
market starts getting congested. Same is the case with the market of financial
business. Through this project I have tried to develop a structured view of the
market which will not only help in understand the whole market but also help
in targeting the marketing force at the right places to get more business.
➢ Same array of products – Almost all the companies in the market are pitching
in same array of products and hence this causes more problems as the
unprofessional players are able to provide the integration at less cost. So
anyone who is able to get a supply of the major financial techniques and senses
required for setting up franchisee integration jumps into the business with a
team of local people. They not only eat up the market share but also degrade
the service level required for this type of job and hence degrade the market as a
whole.
➢ Innovation in approach required – With all these problems, it becomes of
utmost importance for a company to innovate to reach at the top. So,
innovation in terms of products, lead generation, and communication strategy
is required.

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 ➢ No idea of the position of the competitors – The companies doesn’t have any
idea what the other companies in the same business are doing to generate more
business, what are the innovations going around in the market.
➢ Lack of understanding of the satisfaction of existing customers – It always
pays to introspect oneself. But so far no formal study in this regard has been
undertaken so we don’t know how we have performed so far.

2.2 Objectives of the project

➢ Analyzing broking market potential.
➢ Providing data driven decision for franchisee acquisition.
➢ Analyzing the franchisee model of MOSL with respect to two major broking
houses & conduct a SWOT analysis of MOSL.
➢ Understanding the B2B marketing environment.
➢ To increase the number of franchisee
➢ Understanding the process of marketing research suitable for B2B
environment.

2.3 Scope of the project

The project focuses at understanding the existing forces that determine the acquiring
of a solution like Franchisee Model Integration. Through this project we have been
able to reach at a certain number of factors that are the main deciding factors that are
taken under consideration by the companies while purchasing integration products.
The project also aimed at segmenting the market and understanding the individual
needs of each market segment. This kind of exercise will not only help the company
in focusing its marketing activity to the right kind of business enterprises but will also
help in designing right mix of strategy to cater to the needs of sub-brokers in the best
way possible. It is always wise to keep a track of what the competitor proposes to do
in future as it alarms the market leader to be geared for the future. So, this study will
help the company in gaining an insight into the innovations that are being done by

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other companies in the same kind of business. It was also aimed to study the level of
satisfaction among the existing sub-brokers of the competitor company and gather
their feedback to see what more the clients expect in terms of products, consultancy,
return on investment and innovation. And last but not the least in order to make the
summer internship program more fruitful in terms of academic learning, a complete
analysis of the functioning of the franchisee integration business was done along with
the organizational structure and other minor details.

2.4 Limitations of the project

Although the project aims at making an in-depth market research but there are some
practical limitations regarding the methodology followed & the overall procedure.
These can be summed up under the following points ---
➢ The sample taken for this research might not represent the whole population.
➢ Since the survey is conducted exclusively on individual companies the
personal view of the respondent may make lead to some biasness in the results.
➢ Some people do not want to give correct details required in the questionnaire.
➢ It is also possible that some people might have given false or misleading
information.
➢ Many people doubted the fact that the information given by them would be
kept strictly confidential.
➢ Many big companies do not respond to such market research.
➢ Many companies didn’t respond properly and mentioned that decisions
regarding these issues are taken by their head offices.
➢ Many companies do not wish to give out information which leads to
incomplete responses.
➢ Many people gave unauthentic information to hide their ignorance.

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 Chapter 3.
INTRODUCTION OF
MOTILAL OSWAL

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Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial
services company focused on wealth creation for all its customers, such as
institutional and corporate clients, HNI and retail customers. Our services and product
offerings include equity broking, commodity broking, and distribution of third party
products, investment banking and venture capital management.

It is one of the most respected corporate houses known for their business research and
franchisee model initiation of sub-broker reforms besides being recognized for their
values of fair, transparent and ethical dealings.

The spirit of entrepreneurship, the vision of a dynamic tomorrow, and the capacity to
build and realize dreams! This is the essence of the Motilal Oswal. No wonder then,
Motilal Oswal has become the symbol of a vibrant multi-business enterprise touching
the lives of many and at the same time an icon of enduring ideals in a changing world.

3.1 History
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Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with
just two people running the show. Focus on customer-first-attitude, ethical and
transparent business practices, respect for professionalism, research-based value
investing and implementation of cutting-edge technology has enabled us to blossom
into an almost 2000 member team.
Today we are a well diversified financial services firm offering a range of financial
products and services.
Motilal Oswal has a diversified client base that includes retail customers (including
High Net worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients.
The headquarter is in Mumbai and as of December 31st, 2008, had a network spread
over 512 cities and towns comprising 1,428 Business Locations operated by our
Business Partners and us. As at December 31st, 2008, the total number of registered
customers wad 5, 27,368.

Motilal Oswal Financial Services Ltd. (MOFSL) is a well-diversified, financial

services company focused on wealth creation for all its customers, such as
institutional and corporate clients, HNI and retail customers. Our services and product
offerings include equity broking, commodity broking, and distribution of third party
products, investment banking and venture capital management.
Mr. Motilal Oswal and Mr. Raamdeo Agrawal laid the foundation for MOFSL and
initially conducted business as a sub-broking firm. Thus, began the expedition of
building a professional organization with strong value systems, to provide investment
advice to investors.

Today, Motilal Oswal Financial Services Ltd. is a well-established brand among retail
and institutional investors in India, with a presence in over 1533 business locations
across over 487 cities
.
From a sub-broking firm, Motilal Oswal Financial Services Ltd. has today become a

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solid financial services company straddling a spectrum of businesses in the financial
services space. These businesses include Wealth Management, Institutional Equities,
Investment Banking and Venture Capital Management.

3.2 Motilal Oswal Products and Services

Today Motilal Oswal is a well diversified financial services firm offering a range of
financial products and services such as

➢ Wealth Management

➢ Broking & Distribution

➢ Commodity Broking

➢ Portfolio Management Services

➢ Institutional Broking

➢ Private Equity

➢ Investment Banking Services and

➢ Principal Strategies

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Wealth Management
Financial planning for individual, family and business wealth creation and
management needs. These are provided to customers through our Wealth
Management service called ‘Purple’.

Broking & Distribution services

➢ Equity (cash and derivatives)
➢ Commodity broking
➢ Portfolio Management Services
➢ Distribution of financial products
➢ Financing
➢ Depository Services
➢ IPO distribution

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We offer these services through our branches, Business Partner locations, the internet
and mobile channels. We also have strategic tie-ups with State Bank of India and
IDBI Bank to offer our online trading platform to its customers.

Commodity Broking
Through Motilal Oswal Commodities Broker (P) Ltd our fully owned subsidiary; we
provide commodity trading facilities and related products and services on MCX and
NCDEX. Besides access to the best of research in the form of Daily Fundamentals &
Technical Reports on highly traded commodities, our clients also get access to our
exclusive Customized Trading Advice on both the trading platforms. We offer these

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services through our branches, Business Partner locations, the internet and mobile
channels

Portfolio Management Services

Motilal Oswal Portfolio Management Services offer a range of investments solutions
through discretionary services. We at Motilal Oswal have helped create wealth for our
customers through our Portfolio Management Services. Our knowledge of the markets
together with our understanding of our customers and their risk profiles has helped us
design a range of portfolio offerings for our clients. These include the Value PMS,
Bulls Eye PMS, Trillion Dollar Opportunity and Focused Portfolio Series I. As of
December 31st, 2008, the Assets under Management of our various portfolio schemes
stood at Rs.5.04bn.

Motilal Oswal group has applied to the regulatory bodies for a license to operate as a
Domestic Asset Management Company (Mutual Fund) and we expect to begin
operations soon.

Institutional Broking
We offer equity broking services in the cash and derivative segments to institutional
clients in India and overseas. These clients include companies, mutual funds, banks,
financial institutions, insurance companies, and FIIs. As at December 31st, 2008, we
were empanelled with over 300 institutional clients including 200 FIIs. We service
these clients through dedicated sales teams across different time zones.

[30]
Investment Banking

We offer financial advisory services relating to mergers and acquisitions (domestic

and cross-border), divestitures, restructurings and spin-offs through Motilal Oswal
Investment Advisors Private Ltd. (MOIAPL)
We also offer capital raising and other investment banking services such as the
management of public offerings, private placements (including qualified institutional
placements), rights issues, share buy backs, open offers/delisting and syndication of
debt and equity.
MOIAPL has closed 23 transactions in 2007-08 worth US$ 1.8 billion and had 18
mandates in h and as at March31, 2008.

[31]
Private Equity

In 2006, our private equity subsidiary, Motilal Oswal Private Equity Advisors Private
Ltd (MOPEAPL) was appointed as the investment manager and advisor to a private
equity fund, India Business Excellence Fund, which was launched with a target of
raising US$100 mn. The fund is aimed at providing growth capital to small and
medium enterprises in India, with investments typically in the range of US $3 mn to
US $7 mn.

MOPEAPL will manage and advise the fund and other private equity funds, which
may be raised in the future. In its final closing, in December 2007, the fund obtained
commitments of US$125 mn (Rs.4, 875 mn) from investors in India and overseas.
The Fund has deployed/ committed $ 58 mn across 8 deals.

MOPEAPL has recently launched an INR 750 Crores domestic Real Estate Private
Equity Fund called “India Realty Excellence Fund” sponsored by Motilal Oswal
Financial Services Ltd.

[32]
 MARKET SHARE: EQUITY BROKING

Principal Strategies Group

For effective management of treasury operations and to capitalize on market
opportunities, the Group has set up a 30 member team which would be responsible for
effective deployment of funds into different trading and arbitrage strategies.
Focus on Research
Research is the solid foundation on which Motilal Oswal Securities advice is based.
Almost 10% of revenue is invested on equity research and we hire and train the best
resources to become advisors. At present we have 23 equity analysts researching over
27 sectors. From a fundamental, technical and derivatives research perspective;
Motilal Oswal's research reports have received wide coverage in the media (over a
1000 mentions last year). Our consistent efforts towards quality equity research have
reflected in an increase in the ratings and rankings across various categories in the
Asia Money Brokers Poll over the years

[33]
3.3 Business Acquisition Group (BAG)
The firm has a dedicated BAG department which deals with the acquisitions of
business partners at various locations all over India. This department has helped
Motilal Oswal to Grow at a very fast pace. Such a rapid growth is observed due to
acquisitions of the best businesses at most profitable locations.
Making a firm as a business partner is a tuff job. Since, as soon it becomes your
business partner its own identity is lost and its entire works are perceived as part of
the firm. It carries the brand along with it.
Business acquisitions act as dual benefit to the partnering firm as well as Motilal
Oswal.
On one hand, it provides the best research, brand and other associations’ benefits to
the firm joining hands. On the other, it expands Motilal Oswal’s foot in the country
and further Since, The firm was already performing. Hence, the risk for the company
reduces.
Anyhow, its works slow but has better results than simply selling the business
partnerships to inexperienced partners.
There are more than 1800 sub-brokers in Delhi & NCR area out of which Motilal has
only 20 Sub-brokers. There is a huge gap between the market share of Motilal and
other broking firms.
Hence, The Company wishes to bridge this gap by acquiring sub-brokers of other
firms. Like Share khan, SMC Global etc.

[34]
3.4 COMPETITOR ANALYSIS

UTI Securities Ltd.

•Model: - Franchisee, online trading

•Products: - NSE / BSE /PMS / IPO / MFs/Commodity/Life
Insurance/Investment Banking/Online Trading
•Registration: - Rs 10,000 each for BSE & NSE
•Deposit required: - 2 lakh (no exposure, no interest)
•Brokerage: - 4 paisa and 30 paisa
•Sharing: - 60:40 in favor of Franchisee
•DP account: - Rs 500 per annum and Rs 12 per transaction
•Connectivity: -VSAT Rs 5000 per month but refundable if brokerage earned by
UTISEL is Rs 1,50,000 in a quarter
•Mkt support: - Flex and pamphlets
•Software charges: - One license free and for additional license Rs 1000 PM for
first year then Rs 400 PM per license
•Training: - 15 days
•Margin funding: - No
•Exposure: - 10 times on clients margin

[35]
 Strength & weakness in respect to MOSL

Strength: - Weakness: -

• Brand name associated with UTI • No exposure on security

bank • Neither dedicated BD team nor
• Low security deposit any mkt support.
• Sharing starts with 60:40 ratio
• No focus on research and services
• No fixed charge for VSAT, Rs
5000 PM that also refundable if • No concept of dedicated
brokerage earned by UTISEL is activation team for new
Rs 1,50,000 in a quarter franchisee.
• Local servicing • Only 15 days back office training
• Low focus on cross selling of
products
• Margin funding is not promoted
• Diversified business

[36]
ICICI Direct.com

•Model: - Online franchisee

•Products: - NSE / BSE / NCDEX / MFs / IPO / insurance
•Registration: - Rs 10,000 each for BSE & NSE
•Deposit required: - Rs. 40000 + Rs 25000 for registration
•Brokerage: - 30 paisa and 75 paisa
•Sharing: - Rupee1/- ~ 2 Lk: - 30%, Rs. 2 Lk ~ 7.5 Lk: - 35%,
Rs. 7.5 Lk ~ 15 Lk: - 40%, Rs. 15 Lk ~ 25 Lk: - 45%,
Rs. 25 Lk +: - 50%

•DP account: - Rs. 500 PA +Rs 10-30 per outgoing

•Connectivity: - Broadband
•Mkt support: - no (flex sheet, visiting card and pamphlets)
•Software charges: - free
•Training: - 1 week
•Margin funding: - not for retail client
•Exposure: - 4-6 times on intraday, no exposure on delivery

[37]
 Strength & weakness in respect to MOSL

•Strength: - •Weakness: -

• 11 lakh customer base (appox) • No exposure on security

• Low security deposit
• Very efficient software
• User friendly usage
• Broadband connectivity
• Real time settlement
• No dedicated BD team nor any
mkt activity support
• No focus on research and
services
• No concept of dedicated
activation team for new
franchisee
• Only 1week back office training.
• Low focus on cross selling of
products
• No exposure on delivery
• High brokerage charge

[38]
 SWOT ANALYSIS OF MOTOLAL OSWAL

Strength Weakness

• Brand name • High Deposit

• World class service • Low focus on brand
• Dedicated business promotion
development team • Servicing through central
• 3 months dedicated activation level
• Strong research based advice • Technology and connectivity
• Focus on wealth management is not highly up scaled
• Cross selling of 3rd party
product
• Focus only on one business

[39]
Opportunity Threat

• Smaller players moving out of • No connectivity through

market broadband
• Consolidation phase is going
in mkt. • Big multinationals are coming
• Few competitors are shifting
their focus on another
business. • Brokerage charge is going very
• As market is less volatile so low.
more customer are
investing.

[40]
 Chapter 4.
RESEARCH METHODOLOGY

4.1 Methodology used for the project:

This project followed a simple & systematic methodology. I have followed a phase by
phase approach to complete this project.
1st Phase
In the 1st phase I was informed about the whole business of franchisee integration. I
received complete knowledge about the details of the business and how it is done at
Motilal Oswal by Mr. Rakesh Sharma. In this stage I went through some websites to
find out more about this particular business. After joining the company on 13th Feb,
2009, problem definition was the most important task undertaken as it was going to

[41]
determine the future course of action. The right understanding of the problem was as
important as the entire project itself. The project guide
Mr. Rakesh Sharma was a big help to me in determining this step. He not only
explained the in and out of the business but also the problems that the franchisee team
had been facing so far. After having a detailed conversation for several days
following problems were identified. I realized that no study has been done on this
particular business so far so I took it up as a job to do a complete analysis of the
business along with the problems defined by Mr. Rakesh Sharma. So I decided that
there will be three parts in my project pertaining to the three main parts that exists in
any business i.e.
➢ Competitor’s analysis
➢ Target customer analysis
➢ Business from the target customer
For this systematic and standard steps were followed which formed the later phases of
my project.

Phase 2: Problem Definition

After joining the company on 13th Feb, 2009, problem definition was the most
important task undertaken as it was going to determine the future course of action.
The right understanding of the problem was as important as the entire project itself.
The project guide Mr. Rakesh Sharma was a big help to me in determining this step.
He not only explained the in and out of the business but also the problems that the
sales team had been facing so far. Besides that I also visited various internet sites to
gain an insight about the problem that the company might be facing.
After having a detailed conversation for several days following problems were
identified.

Management Decision Problem:

[42]
 a. How to maintain the leadership in the market that is becoming congested
by small players?
b. How to capture new market segments and what are the needs and
expectations of these segments?
c. What can be done towards sub-broker satisfaction and sub-broker loyalty?

Marketing Decision Problem:

a. What are the different segments of the market and what are their needs?
b. What are the actions going around in the market and how the competitor
companies are working to get an edge over Motilal Oswal?
c. What are the main benefits provided by the competitor companies to offer
their franchisee?
d. In a market where almost all the companies are offering same products
what more can be done to maintain the status of market leader?
e. What do the existing franchisees feel about the overall product?
f. Is there a need for enhancing the existing communication strategy of the
company?

The problem definition stage helped me clearly understand the expectation of the
company from the project and the direction in which one needs to move to achieve
those expectations.

Diagram: The process of Problem definition

[43]
Phase 3: Developing an Approach to the Problem

Once the problems faced by the company were identified the next step included the
development of the approach to the problem, i.e. defining the research problems and
presenting them in a form which may be helpful in the process of market research. In
this step proper statement of problem was set up which is “Expansion Plan of Motilal
Oswal” that is of interest to the researcher.
Motilal Oswal has only twenty two (22) franchisee in Delhi & NCR, whereas the
actual potential is in between one hundred (100) to one hundred fifty (150). For the
Market Expansion Plan, Motilal Oswal needs to increase its total number of
franchisee in Delhi & NCR.

Preparing the statement of Research Objective

The objective of the project is “To increase the number of franchisees”.

Motilal Oswal has comparatively lesser number of franchisees in comparison to its

competitors like Reliance Money, Kotak Securities, Religare, Angel Broking etc.

Company’s motive is to expand the market. So it has to increase the number of its
sub-brokers in Delhi & NCR region.

Phase 4: Research Design Formulation

Market research involves lot of effort and time, so it is always best to be very clear as
to what has to be done and how it has to be done and this was decided in the third step
of the project. From the understanding of the project I decided to go for a survey
research first to get a better idea of the market. And then go for the main descriptive
research. In this step following decisions were taken:

[44]
1. Information should be obtained from sub-brokers currently operating in Delhi
& NCR region.
2. Time Allotted: 03 Months
3. Budget Allotted: Stipend for trainees
4. The first step towards the research will begin with a survey research. In this
research different sub-brokers of our competitor company across Delhi & NCR
will be contacted over the phone and will be asked few questions from a pre-
designed questionnaire. This step will give us some idea about our competitors
and how they are seeing the market. This will also help us to understand up to
what extent they are associated with their main broker.
5. Then the survey research part will follow in which the questionnaire will be
designed directly on the laptop, in word format so that responses can be
directly stored in softcopies. This strategy will not only save paper and make
the project environment friendly but also save us from the extra effort entering
the data on the laptop after collecting it.
6. Then the next step would be to meet them and ask them for information
relating to the questionnaire.
7. Based on the outcome, proper schedule will be designed for the project which
will have provision for all the activities that are required to be undertaken.
8. Throughout the project internet will be used a lot to read about the different
companies in the same business in Delhi & NCR. And any special features
thus noticed will be documented.
9. And then a database of the companies, which will be visited for the responses,
will be collected from the various sites of stock exchange.
10. Then the actual primary data collection step will take place in which sub-
brokers from the data base will be visited and then the responses will be
collected from people responsible for such kind of decision making.
11. On the basis of terms and conditions for franchisee of Motilal Oswal, trainees
are asked to provide extra information on the back page of the filled-up
questionnaire by observing the office set up. This includes number of

[45]
 computers, employees, terminals, area of office, decoration, branches. If
everything matches with the desired profile then they will recommend the
respective sub-broker.
12. The trainees are asked to collect the visiting card of the respective sub-broker
they are visiting to avoid any unfair means in data collection and also not to
disclose their identity.
13. Once the survey is done, then the responses will be checked for any incomplete
ones and they’ll be discarded.
14. Then a meeting with the respective client is fixed for Senor Manager to have
the detailed discussion via telecalling by the trainees.
15. During the meeting the trainees are asked to be present over there to learn
various skills and expertise which are required in today’s competitive world.
16. Then the collected data will be analyzed using SPSS.
17. This analysis will be documented.
18. The entire project will be reviewed once and then the final report will be
prepared.

Schedule of the Project:

The Timeline decided for the project:

16th Feb – 21st Feb : Identification of the problem and defining it.
23rd Feb – 28th Feb : Questionnaire Designing
2nd Mar – 21st Mar : Data Collection
23rd Mar – 28th Mar : Data Analysis.
30th Mar – 18th Apr : Fixing Meeting via Telecalling
20th Apr – 16th May : Meeting with Client
18th May – 21st May : Review of Project
22nd May – 28th May : Final report preparation
➢ 29th May : Final report submission.

[46]
Diagram: the Flow of the work to be done for the
Project

Phase 5: Survey Research

The primary objective of survey research is to provide an insight and an
understanding into the details of the problem. For this a database of sub-brokers in the
same business across Delhi & NCR was collected. Fifteen companies were found to
be major players across Delhi & NCR. The list of the companies can be found in
Annexure 1.

Designing Questionnaire

This was the next step that was undertaken. In this step first of all the questionnaire
was designed to collect the responses of the companies regarding the franchisee. The
questionnaire was designed in word format.
It was intended from the beginning to make this project an environment friendly
project and use as few papers as possible.

[47]
OBJECTIVES OF QUESTIONNAIRE:

The Questionnaire is developed while keeping in mind, the owner of a franchisee.

Since, ultimately he has to decide to become a part of MOSL.

(A Copy of a Blank and Filled questionnaire is attached in appendix)

➢ To know Owner’s experience in the industry.

➢ To know the willingness/interest of the owner in the business.
➢ Is he having proper i.e. skills for the business.
➢ To know how long that firm is serving the clients in that area and by what rate
is it growing.
➢ What’s his perception about being more successful broker in the area?
➢ What he feels he needs to satisfy his clients.
➢ What challenge he is facing currently or he can face in the coming time and
what he learned out of it?
➢ How far does he plan to go in coming 5 years?
➢ Does he require any type of support in achieving his goals or does he feel he is
self sufficient.
➢ What qualities he feels he needs to acquire to achieve his goals.

Phase 6: Analysis
In this phase the first job that was done was coding the data collected from the market
research in statistical software called “SPSS” so that it can be analyzed and
meaningful results can be drawn from them. Due to the small sample size of the sub-
brokers survey, no quantitative analysis was done just the important outcomes were
analyzed and documented in the “analysis” chapter in this report.
The coded data from the prospective sub-broker’s survey was used to analyze that
which is the factors that mainly affect the buying behavior of the companies. I also
tried to study what are the reasons that prevent or defer the franchisee integration
project.

[48]
After everything was analyzed the results were taken into consideration and I tried to
present feasible solutions to the problems that exist. Also proper segmentation was
done according to the need of different market segments.
All the observations made and analyzed are given in the Analysis chapter later in the
report.

Phase 7: Report Preparation

In the final part of the project different suggestions and conclusions were drawn and
then the final report was prepared.

[49]
 Chapter 5.
DATA ANALYSIS

5.1 MAIN BROKER & SUB – BROKER ANALYSIS

Data has been analyzed using SPSS. Analysis includes Descriptive analysis
(Frequencies), Non Parametric test (Chi – Square) & Cross Tab Analysis.

The very first thing that a respondent writes in the questionnaire is his details like his
name, Address, Age etc. and the most importantly whether he is a main broker or a
sub broker.

[50]
 Type of broker

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Main Broker 2 6.7 6.7 6.7
Sub Broker 28 93.3 93.3 100.0
Total 30 100.0 100.0

Type of broker
30

20

10
Frequency

0
Main Broker Sub Broker

Type of broker

In Data Collection Period, I was able to interview 30 Respondents; The Sample taken
consists of 2 Main Brokers & 28 Sub brokers. In this project, Sub – brokers were the
target respondents, however few main brokers were also been visited in order to learn
some difference between a Main Broker & a Sub – broker.

[51]
 Test Statistics

Type of
broker
Chi-Square a 22.533
df 1
Asymp. Sig. .000
a. 0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 15.0.

Since, Asymp. Sig. 0.000 < 0.05. Hence, there is a significant difference between
number of Main Brokers and Number of Sub brokers.

Hence, the objective is achieved to gain knowledge about main brokers and collected
data of sub brokers to find prospective clients.

Characteristics of a Main Broker:-

• A Main Broker has a hoarding in his office stating that he is member at NSE
and/or BSE whereas a sub broker has a hoarding or certificate of association
with a main broker.
• In comparison to Sub brokers, Most Main Brokers have a Big Office with
more than 40 systems.
• Main Brokers were not that helpful in disclosing the details. An average
waiting time at a Main broker was at least 20 minutes even after market hours.
I.e. after 4 P.M.

Some of the major Differences that were observed during the visit are as under:

MAIN BROKER SUB – BROKER

• A Main Broker gets BSE/NSE • One can become a Sub broker

Listing with an initial deposit of
minimum of Rs. 5 crore with
SEBI
• A Main Broker is the one who is
directly attached with a Stock
Exchange
with even a Rs. 50 thousand of
deposit with a Main Broker.
• A sub broker is the one who is
attached to stock market via a

[52]
 Main broker.

• A Main Broker can serve to

anyone
• A sub broker has specific
clientele like, Retail customers.

5.2 Detailed Analysis of the Questionnaire

Question 1:- How long have you been in this line?

Years since respondent is in the business

Valid Cumulativ
Frequency Percent Percent e Percent
Valid < 2yr 2 6.7 6.7 6.7
2 to 5yrs 11 36.7 36.7 43.3
> 5yrs 17 56.7 56.7 100.0
Total 30 100.0 100.0

Years since respondent is in the business

20

10
Frequency

0
< 2yr 2 to 5yrs > 5yrs

Years since respondent is in the business

[53]
The table above represents that out of 30 respondents’ only two respondents is new to
the market as they have less than 2 years of experience and majority of respondent
have more than 5 years of experience.

Test Statistics

Years
since
responde
nt is in the
business
Chi-Square a 11.400
df 2
Asymp. Sig. .003
a. 0 cells (.0%) have expected frequencies less than
5. The minimum expected cell frequency is 10.0.

Since, Asymp. Sig. 0.003< 0.05. There is significant difference in the population of
experienced & young players. This shows market is having experienced people & the
prospective clients appear to be much in the population.

[54]
Question 2: What brought you to stock markets and made you think of a career
in it?

This Question asks the respondent about his main objective to get into the stock
market. It helps us in knowing about the person’s instinct behind getting into this
business, for example one came in this business for short term profits or really wants
to grow the business & wants to cash out the brokerage in the bull market.

What brought the repondent to this business

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Good short term profits 3 10.0 10.0 10.0
Cash out the
brokerage oppurtunity 12 40.0 40.0 50.0
in a bull market
Develop required skills
to develop and serve 15 50.0 50.0 100.0
large clients
Total 30 100.0 100.0

[55]
 What brought the repondent to this business
16

14

12

10

6
Frequency

0
Good short term prof Develop required ski
Cash out the brokera

What brought the repondent to this business

Analysis:

The table above clearly shows that 50% of the respondents needs to develop the
required skills in order to serve the large client base. So this population can be the
target for Motilal Oswal to acquire them & partner their growth by helping them
gathering the required skills through its support

Question 3: What’s your Educational Background and did you undergo any
formal training?

As per SEBI norms a person having an NCFM certificate in either of two modules or
both namely, Capital market and derivative market can operate the trading terminal
which is a basic Qualification in this business.

[56]
 Qualification of the respondent

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Basic qualification
along with exchange 21 70.0 70.0 70.0
required certifica
Profess qualification
along with exchange 7 23.3 23.3 93.3
reqd certificate
Additional self
development and 2 6.7 6.7 100.0
mkrt related prg
Total 30 100.0 100.0

Qualification of the respondent

30

20

10
Frequency

0
Basic qualification Profess qualificatio Additional self deve

Qualification of the respondent

Analysis:

It can be easily interpreted from the table that only 2 respondent

has additional qualification.

[57]
Major respondent have basic Qualification of NCFM which is a good
sign as the population is adhering to the rule of SEBI of being NCFM
qualified.

Question 4: How long has this setup been in place & your
growth story?

Length of the current setup

Valid Cumulativ
Frequency Percent Percent e Percent
Valid <2yrs 4 13.3 13.3 13.3
2 to 5 yrs 10 33.3 33.3 46.7
>5yrs 16 53.3 53.3 100.0
Total 30 100.0 100.0

Length of the current setup

20

10
Frequency

0
<2yrs 2 to 5 yrs >5yrs

Length of the current setup

Analysis:

53.3% of the setups are more than 5 yrs old, so they have very good client base &
hence if acquired by Motilal Oswal will be a profitable deal.

[58]
Question 5: What qualities make a successful broker?

Qualities attributed to be a successful broker

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Higher ratio of
15 50.0 50.0 50.0
succesful trading calls
A culture of researched
idea's with good infra 5 16.7 16.7 66.7
and service
All of the above 10 33.3 33.3 100.0
Total 30 100.0 100.0

[59]
 Qualities attributed to be a successful broker
16

14

12

10

6
Frequency

0
Higher ratio of succ A culture of researc All of the above

Qualities attributed to be a successful broker

Analysis:

50% of the respondents thinks that Higher ratio of successful calls given to the
customer is the key to become a successful broker. Motilal Oswal being best for its
Equity research in the industry can approach these clients as they would like to take
the research services of Motilal Oswal Securities in order to give more successful
calls to their customers.

Question 6: What are the factors for having a satisfied

client?

[60]
 Factors needed to satisfy cleints

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Prompt and timely service 23 76.7 76.7 76.7
All of the above 7 23.3 23.3 100.0
Total 30 100.0 100.0

Factors needed to satisfy cleints

30

20

10
Frequency

0
Prompt and timely se All of the above

Factors needed to satisfy cleints

Analysis:

More than 76% of the respondents believe that prompt & timely addressing of the
client Queries plays an important role for having satisfied clients. For the proper
address to the queries of the customer, the Sub broker would require the Customer
Care Support & Motilal Oswal is the only company in the industry which provides

[61]
this service to their Franchisee owners & hence these respondents can be convinced
by providing solution to this problem.

Question 8: What are the immediate challenges for this

industry & your plan to tackle this?

Immediate challenges for the industry

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Lack of interest 2 6.7 6.7 6.7
Fresh capital drying
up in Indian and 10 33.3 33.3 40.0
foriegn markets
Cut cost & wait for
18 60.0 60.0 100.0
good times
Total 30 100.0 100.0

[62]
 Immediate challenges for the industry
20

10
Frequency

0
Lack of interest Fresh capital drying Cut cost & wait for

Immediate challenges for the industry

Analysis:

Around 60% of the population believes that immediate challenge for the industry is to
cut down on cost & wait for good times to come for the market which is an intelligent
option to go with. So, Majority of the population is still optimistic about the market in
the time of the recession & they are waiting for the good times to come.

Question 9: What is your perception about the road ahead

for this industry?

[63]
 Perception about the road ahead as an industry

Valid Cumulativ
Frequency Percent Percent e Percent
Valid Recession would bot last
21 70.0 70.0 70.0
longer than 2 quarters
The next cycle could be
9 30.0 30.0 100.0
bigger than previous one
Total 30 100.0 100.0

Perception about the road ahead as an industry

30

20

10
Frequency

0
Recession would bot The next cycle could

Perception about the road ahead as an industry

Analysis:

70% of the respondents are optimistic & they feel that recession in the market would
not last more than 2 Quarters. Hence this population wants to grow & expand the
business after waiting for some time.

[64]
Question 11: Where do you see your business after 5 years?

Where do you see your business after 5 years

Valid Cumulativ
Frequency Percent Percent e Percent
Valid NR 12 40.0 40.0 40.0
Having 10 branches 6 20.0 20.0 60.0
1 crore revenue per
1 3.3 3.3 63.3
month
To be number one broker 10 33.3 33.3 96.7
others 1 3.3 3.3 100.0
Total 30 100.0 100.0

[65]
 Where do you see your business after 5 years
14

12

10

6
Frequency

0
NR 1 crore revenue per others
Having 10 branches To be number one bro

Where do you see your business after 5 years

Analysis:

Majority (40%) of the respondents were not interested in revealing their goals,
however out of the responses received 33% wants to be a no. 1 broker of their
respective area.

Question 12: In order to achieve the goal what kind of support they require?

[66]
 BRND_VAL

Valid Cumulativ
Frequency Percent Percent e Percent
Valid NR 4 13.3 13.3 13.3
Rank 1 1 3.3 3.3 16.7
Rank 2 1 3.3 3.3 20.0
Rank 3 2 6.7 6.7 26.7
Rank 4 22 73.3 73.3 100.0
Total 30 100.0 100.0

SUCSCALL

Valid Cumulativ
Frequency Percent Percent e Percent
Valid NR 4 13.3 13.3 13.3
Rank 1 6 20.0 20.0 33.3
Rank 2 12 40.0 40.0 73.3
Rank 3 7 23.3 23.3 96.7
Rank 4 1 3.3 3.3 100.0
Total 30 100.0 100.0

BCKOFF

Valid Cumulativ
Frequency Percent Percent e Percent
Valid NR 3 10.0 10.0 10.0
Rank 1 14 46.7 46.7 56.7
Rank 2 6 20.0 20.0 76.7
Rank 3 7 23.3 23.3 100.0
Total 30 100.0 100.0

Marketing & business Development support

Valid Cumulativ
Frequency Percent Percent e Percent
Valid NR 1 3.3 3.3 3.3
Rank 1 9 30.0 30.0 33.3
Rank 2 7 23.3 23.3 56.7
Rank 3 10 33.3 33.3 90.0
Rank 4 3 10.0 10.0 100.0
Total 30 100.0 100.0

[67]
 Marketing & business Development support
12

10

4
Frequency

0
NR Rank 1 Rank 2 Rank 3 Rank 4

Marketing & business Development support

Analysis:

More than 50% of the respondents have ranked “Marketing & Business Development
Support” either 1 or 2, which means this support plays an important role in the growth
of the sub – brokers.

[68]
5.3CROSS TAB ANALYSIS

Analysis - 1
Years since respondent is in the business * Length of the current setup
Crosstabulation

Count
Length of the current setup
<2yrs 2 to 5 yrs >5yrs Total
Years since respondent < 2yr 2 2
is in the business 2 to 5yrs 2 9 11
> 5yrs 1 16 17
Total 4 10 16 30

[69]
 20

10

Length of the curren

<2yrs
Count

2 to 5 yrs

0 >5yrs
< 2yr 2 to 5yrs > 5yrs

Years since respondent is in the business

An
alysis:

✔ Majority of the Respondents have entered into the market with their own set
up.
✔ Group which has experience more than 5 years also has its set up in place for
more than 5 years.
✔ Hence the respondents (More than 50 %) have good hands on experience in
running a set up.
✔ So Motilal Oswal should partner its Franchisee with these respondents because
of their experience in running a setup.

Analysis – 2

[70]
 Years since respondent is in the business * Qualities attributed to be a successful broker
Crosstabulation

Count
Qualities attributed to be a successful
broker
A culture of
Higher researche
ratio of d idea's
succesful with good
trading infra and All of the
calls service above Total
Years since respondent < 2yr 2 2
is in the business 2 to 5yrs 4 2 5 11
> 5yrs 9 3 5 17
Total 15 5 10 30

10

Qualities attributed
4
Higher ratio of succ

esful trading calls

2 A culture of researc
Count

hed idea's with good

0 All of the above

< 2yr 2 to 5yrs > 5yrs

Years since respondent is in the business

Analysis:

✔ Higher ratio of successful calls given by broker is seems to be everybody’s

choice.

[71]
✔ Respondents who have experience more than 2 years are also emphasizing on
research ideas coupled with good infrastructure.
✔ Apart from this few of the respondents believes that for a successful broker one
cannot rely on any one particular quality, & one should try to have all the
qualities.

Analysis – 3
Immediate challenges for the industry * Perception about the road ahead
as an industry Crosstabulation

Count
Perception about the road
ahead as an industry
The next
Recession cycle could
would bot be bigger
last longer than
than 2 previous
quarters one Total
Immediate Lack of interest 2 2
challenges Fresh capital drying
for the up in Indian and 7 3 10
industry foriegn markets
Cut cost & wait for
12 6 18
good times
Total 21 9 30

[72]
 14

12

10

6
Perception about the

4 Recession would bot

last longer than 2 q
2
Count

The next cycle could

0 be bigger than prev
Lack of interest Cut cost & wait for
Fresh capital drying

Immediate challenges for the industry

Analysis:

The above cross tab analysis shows that the respondent who is optimistic & wants to
“cut down the cost & waiting for the good time to come” is also optimistic about the
market & saying “recession would not last for more than 2 quarters” means he is not
pessimist & can guide the customers in a right way telling them about the correct
market scenario.

[73]
 Analysis – 4

Where do you see your business after 5 years * Marketing & business Development support Crosstabulation

Count
Marketing & business Development support
NR Rank 1 Rank 2 Rank 3 Rank 4 Total
Where do you NR 1 2 1 6 2 12
see your Having 10 branches 4 1 1 6
business after 1 crore revenue per
5 years 1 1
month
To be number one broker 2 4 4 10
others 1 1
Total 1 9 7 10 3 30

5
Marketing & business
4
NR

3 Rank 1

2 Rank 2
Count

1 Rank 3

0 Rank 4
N

o
th
o
a
R

c
v

ro

e
b
in

rs
e
re
g

n
1

u
re
0

m
v
b

b
e
ra

e
n

r
u
n

o
e
c

n
h

e
e

e
s

b
r

Where do you see your business after 5 years

ro

Analysis:

✔ Around 40% of the respondents have not revealed about their goals.
✔ Out of the responses received, respondents who “want to have 10 branches”
ranked Marketing & Business Development support as 1.
✔ Respondents who want “to be a number 1 broker of their area” have ranked
this service as 2 & 3, as they do not wish to expand their branches.

[74]
 Where do you see your business after 5 years * BRND_VAL Crosstabulation

Count
BRND_VAL
NR Rank 1 Rank 2 Rank 3 Rank 4 Total
Where do you NR 2 2 8 12
see your Having 10 branches 2 1 3 6
business after 1 crore revenue per
5 years 1 1
month
To be number one broker 1 9 10
others 1 1
Total 4 1 1 2 22 30

Analysis – 5

10

6
BRND_VAL

NR
4
Rank 1

Rank 2
2
Count

Rank 3

0 Rank 4
NR 1 crore revenue per others
Having 10 branches To be number one bro

Where do you see your business after 5 years

Analysis:

[75]
 Most of the big figures across categories are coming under rank 4, which means in
achieving any of the goals mentioned brand value doesn’t play an important role.

Where do you see your business after 5 years * SUCSCALL Crosstabulation

Count
SUCSCALL
NR Rank 1 Rank 2 Rank 3 Rank 4 Total
Where do you NR 2 3 6 1 12
see your Having 10 branches 2 1 3 6
business after 1 crore revenue per
5 years 1 1
month
To be number one broker 2 5 2 1 10
others 1 1
Total 4 6 12 7 1 30

Analysis – 6

[76]
 7

4 SUCSCALL

3 NR

Rank 1
2
Rank 2
Count

1 Rank 3

0 Rank 4
NR 1 crore revenue per others
Having 10 branches To be number one bro

Where do you see your business after 5 years

Analysis:

Above cross tabulation shows that respondents who have their goal as “to be number
1 broker of their area” are ranking “Successful calls” as rank 1 & 2 as these
respondents are not interested in expanding their horizons.

Analysis – 7

[77]
 Where do you see your business after 5 years * BCKOFF Crosstabulation

Count
BCKOFF
NR Rank 1 Rank 2 Rank 3 Total
Where do you NR 1 7 3 1 12
see your Having 10 branches 2 2 1 1 6
business after 1 crore revenue per
5 years 1 1
month
To be number one broker 5 1 4 10
others 1 1
Total 3 14 6 7 30

4
BCKOFF
3
NR

2
Rank 1
Count

1 Rank 2

0 Rank 3
NR 1 crore revenue per others
Having 10 branches To be number one bro

Where do you see your business after 5 years

Analysis:

✔ Respondents who want to be a no. 1 broker has ranked back office support as 1
or 3.
✔ None of the respondent has ranked back office support as 4

[78]
5.4 Prospects Generated For Motilal Oswal Securities Ltd.

[79]
 Case Summariesa

Type of broker Name of repondent

TOTAL 0 1 Sub Broker Pradeep Kumar
Total N 1 1
1 1 Sub Broker Rishab Jain
2 Sub Broker Rahi Makkar
3 Sub Broker Param Hans Gupta
4 Sub Broker Ankur Gupta
5 Sub Broker Aman
6 Sub Broker Gaurav dhawan
7 Sub Broker Jitendra Acchra
8 Sub Broker Deepak Sanghwan
9 Sub Broker Rahul Securities
10 Sub Broker Pankaj Kumar
11 Sub Broker Karni Kalra
Total N 11 11
2 1 Sub Broker Monu Kashyap
2 Sub Broker Rajesh Jain
3 Sub Broker Manu Singhal
4 Sub Broker Harish Sharma
5 Main Broker Nitin
6 Sub Broker Avnish Gupta
7 Sub Broker Deepak Singhal
8 Main Broker Sunil garg
9 Sub Broker Ashok Gupta
10 Sub Broker Mahindra Pal
Total N 10 10
3 1 Sub Broker Rajiv Gupta
2 Sub Broker Ajay Rastogi
3 Sub Broker Adarsh Arora
4 Sub Broker M.R. Sharma
5 Sub Broker Gopal Prasad Gupta
6 Ashish Kumar
Sub Broker
Dalmia
7 Sub Broker Umesh Narang
8 Sub Broker Sanjay Garg
Total N 8 8
Total N 30 30
a. Limited to first 100 cases.

[80]
Analysis:

This table represents the clients having 0, 1, 2 and 3 values. These values are
calculated as the sum of three variables which were given either 1 or 0 value
depending upon various responses given by respondents in the questionnaire.

The clients having a sum as 3 are the best prospects as they wants to grow and wish to
be associated with Motilal Oswal Securities Ltd.

From the above table it is observed that, there are 8 prospects having a bright chance
for becoming a part of Motilal Oswal Securities Ltd. as they filled their Questionnaire
as follows:-

✔ Ranked Marketing - Business Development and Brand Value as 1 or 2.

✔ Experience more than 5 years or Want to cash out the brokerage opportunity in
bull market.

✔ Having 10 branches or to be the number one broker of that area as his 5 year
goal.

The above 3 criterias were selected after a brain – storming session with all
trainees & Company Mentor. These options suits best for a Motilal Prospect as it
provides the Best Marketing-Business Development Support and is known for its
Brand Value & Equity Research in the Industry.

[81]
 Chapter – 6
RECOMMENDATIONS

[82]
6.1 RECOMMENDATIONS

• Eight prospects have been generated out of the analysis of 30 respondents on

different parameters. BAG department should approach these prospects only
after doing the detailed study of their respective questionnaire as it will give
them a good idea about the prospect & Conversation would become much
easier & hence the chances of Conversion.
• Apart from concentrating on experienced players, Motilal Oswal should
partner with the sub – brokers who are in group 2 – 5 years as they are
enthusiastic & can also generate good volumes.
• Since Sub brokers are not concentrating on the marketing front, Motilal Oswal
must expand its marketing & business development efforts for them.
• Since the survey results reveal that Customer care support is required by the
sub brokers, Motilal Oswal expand on its customer care front by increasing the
no. of customer care executives.
• Motilal Oswal should have some special packages for High net worth clients
like, if any client who does a trading more than 1 crore in a day would be
charged a brokerage of 2 paisa instead of 3 paisa & any other discount schemes
would also work.
• Since Motilal Oswal is emerging as a good brand in Stock Broking industry, in
order to capitalize on this front it must have a separate department of
“Branding” which would look after its brand health & would channelize the
efforts of Brand Building in an efficient & innovative manner. It would also
help MOSL in increasing its market share.
• Motilal Oswal has a good presence at Sub – broker level but has a very little
presence at the client level. To get that presence Television Advertising would
be an expensive tool, so it must go with online marketing tools like, Video E –
mailing etc.
• Motilal Oswal should come up with a bit Flexible model of franchisee where
things can become a bit negotiable.

[83]
6.2 CONCLUSION

Motilal Oswal Securities Ltd. is seen as a reputed broking firm in the market. It has
established itself as one of the leading brokerage firm of India.

• MOSL is being perceived as a Strong Equity research Brokerage firm.

• Maximum no. of respondents wants Marketing Business Development Support

& Customer Care & Back Office Support.

• Most of the respondents are ambitious & optimist even in the time of recession
& they believe that recession would not last more than 2 quarters.

• When Target prospects being approached, I found that they need some
flexibility in the franchisee model of the Motilal Oswal such as V – Sat
expense was a big area of concern.

• Motilal Oswal is emerging as a good brand in the Broking Market.

• Motilal Oswal is well known at Sub – broker level; however has a very less
presence at the client level.

[84]
Annexure

[85]
Name Age
Address

Contact No:- Landline Mobile

Registered as ○ Main Broker

○ Sub Broker

SURVEY QUESTIONNAIRE

1) How long have you been in this line?

○ Less than 2 years
○ 2 to 5 years
○ More than 5 years

1) What brought you to stock markets & made you think of a career in it?
○ Good short term profits
○ Cash out the brokerage opportunity in a bull market
○ Develop required skills to develop & service a large client base for a
long time
○ Serve family accounts & HNI’s
○ Others please specify

1) Educational Background and did you undergo any formal training?

○ Basic qualification along with exchange required certifications.
○ Professional qualification along with exchange required certifications.
○ Additional self development & market related programmes

[86]
1) How long has this set up been in place & your growth story?
○ Less than 2 years
○ 2 to 5 years
○ More than 5 years

1) What do you think are the qualities that attributed for you to be a successful
broker?
○ The brand value of the company you are associated with.
○ Higher ratio of successful trading calls generated.
○ A culture of properly researched Ideas coupled with good infrastructure
& client servicing.
○ All the above
○ Other please specify……

1) What are the factors for having a satisfied client?

○ Prompt & timely addressing of client queries
○ Best technology in place
○ Thinking ahead of time & setting up infrastructure in line
○ All the above

1) What factors you feel still need to make your clients a satisfied lot?

2) What are the immediate challenges for this industry & your plan to tackle this?
○ Lack of interest in the stock markets in the retail category
○ Source for fresh capital drying up from both domestic & foreign
investors
○ Cut costs & wait for good times to come

[87]
 ○ Any other – Please specify

1) What is your perception about the road ahead for this industry?
○ Consolidation phase
○ We are in for a prolonged period of recession similar to 2000 – 2003
○ Recession should not last longer than 2 more quarters
○ The next cycle could be bigger than the previous one.

1) Key Takeaway’s from your experience in the last 4 years, i.e. lessons learnt

2) Where do you see your business after 5 years? Having 10 branches, 1 cr

revenue per month, to be number one broker of that area etc.)

3) What kind of support you require which will lead to next level.
(Please give rating from 1 to 4; first priority will be ranked 1 and so on)

○ Marketing and business development support

○ Brand value of broker
○ Successful calls given by broker
○ Back office/customer care support

1) To be successful entrepreneur what do you think which quality one should

have?

[88]
Survey Done by : ---------------------------------------------------------------------

APPENDIX

[89]
 Bibliography

✔ Books
1. Market Research by G.C. Beri.
2. Business Research Methods by Donald R. Cooper, Pamela S. Schindler,
Cooper Donald.

✔ Websites
➢ www.wikipedia.com
➢ www.nseindia.com
➢ www.sebi.org
➢ www.motilaloswal.com
➢ www.moneycontrol.com
➢ www.valuenotes.com
➢ www.google.com

Besides this, data was also collected from the literature survey of the company’s
Documents and by the way of Discussions.

[90]