1.

INTRODUCTION
In World, we are living differ from other planets because of water. Every living creature
needs water as envisaged by Sage Thiruvalluvar that signifies There will be no world if there is
no water. Increase in population, per capita consumption, industrial activity, agricultural
operation, environment necessity, hygienic condition and a host of other processes add the
demand day by day. Nature provides us usable water by means of rain , river and snow. Earth
stores it over the surface and under the soil. Stored water can be brought to the beneficiarys
place by the use of pump only. Hence in everyones life pump is indispensable. Because of its
importance,and it still occupies the second place as the largest manufacturing engineering
products in the world. Where Of course first being the motor which drives the pump.

1
 2. INDUSTRY PROFILE

2.1 BACKGROUND OF THE INDUSTRY

Water pumps which is already second in market is growing at a significant pace in India.
Demand for water pumps in the country is proliferating due to rigorous growth in agriculture
and other water intensive industries. Government of India has introduced various policies to
assist the growth of agricultural output in the country. These policies vary from subsidized
electricity to exemptions by use of solar water pumps. The announcement of such kind of
policies has inspired farmers within the country to install independent irrigation facilities to
make a consistent availability of water. Consequently, these schemes are also directly pushing
the demand for water pumps in India and where Agriculture sector is dominating in Indian
economy as it accounts for over 53% share of countrys total work force. Declining water
level and rising per capita water demand are major challenges being faced by population
associated with agriculture sector and its related segments. On the other hand, per capita
water availability has reduced to about one third since 1940, resulting into growing demand
for water pumps and necessity of water, where agriculture water pump is the leading
segment. Other factors such as rising urbanization, infrastructure investment and
industrialization (especially in water & waste water, oil & gas sectors) are also driving the
water pumps market. Urbanization in India has been witnessing strong growth, where
urban population is further forecasted to be increased from 290 Million in 2002 to 500
Million by the end of 2017. Export segment of water pumps have also grown immensely
during past few decades.

According to India Water Pumps Market Forecast & Opportunities, 2018 Indian
water pump market revenues are expected to grow at the CAGR of around 13% between
2013-18. Indian water pumps market is segmented into two categories that is Positive
Displacement pumps and Centrifugal pumps, where centrifugal pumps market is
dominanting. The leading companies operating in water pumps market in India are
Kirloskar Brother Limited, KSB Pumps, CRI Pumps, and Shakti Pumps. Increased energy
crisis and government regulation are motivating water pump manufacturers to develop
energy efficient products. States such as Gujarat, Tamil Nadu and Maharashtra has strong
industrial base, hence, leading in demand for industrial pumps, while Punjab and Uttar

2
 Pradesh are agriculture based states and consequently agricultural pumps are more in
demand from these states.

2.2 CONTRIBUTION TO ECONOMY

Pumps contributes significantly for the growth of the Indian economy. They have proved high
criticality in productivity of the core sectors of the economy. The Pumps sector has a net value
addition ratio in manufacturing of over 20 per cent in following years. India already exports
Pumps worth over US$ 1.55 billion, serving various engineering segments and to over 100
countries. The exports in pumps segment are growing at a healthy rate of around 10-12 per cent
annually. Additionally the Indian market is already worth over Rs 5,000 crores in pumps & Rs
4,500 crores in valves. India is already selling & supporting niche scientific & engineering
technologies to developed economies in areas such as in aerospace engineering, auto
components, biotechnology etc.

Today India has attained near self-sufficiency in Pumps for Nuclear Power, complete self-
sufficiency in captive power generation, pulp & papers, energy efficient pumps in utilities & in
the agriculture sector. Considerable manufacturing segment of this sector is focusing on catering
latest application in Bio-Pharma field, such as of Infusion Pumps.

Given the fact that among machineries, pumps are said to be produced and used in largest
numbers, second only to electric motors. The overall scenario in Indian economy also favours
growth & development in Indian Pumps & Valves industry, thereby opening huge potential of
international collaborations.

2.3. CHALLENGES

Indian pump exporters are facing intense competition from the foreign counterparts in catering to
global needs. In the recent years, the Indian pump industry has been forced to be proactive with
foreign players bringing in superior pumps to the market. The domestic industry today is in fact
looking up for overseas opportunities and quite a few have also made a good impact in the
international scenario. In order to identify the problems faced by the Indian pump exporters, a

3
specific study has been made on the global marketing strategy adopted by the Indian pump
manufacturers

The players operating in the market facing some acute challenges like governmental
policies, taxation regime and lack of investments which are hampering their development

Agricultural power subsidy & farmer sops pose a major hindrance in market growth
Consumer outlook prevalent in the market is another major challenge
Rise in cost of inputs act as a major bottleneck in the development of the Indian pump
industries
Initiatives and regulations prevalent in the market too have an impact on the growth and
development of the industry
Threat from unorganized players
Increase in raw material prices
Low awareness amongst farmers

2.4 MARKET SIZE

The pump market in India is valued at INR 5,490 crore in 2010, and it is expected to reach INR
12,330 cr. by 2014, growing at a Compounded Annual Growth Rate (CAGR) of 22 percent5. The
pump industry is composed of a large number of Small Scale Industries (SSI) units, large
manufacturers and many overseas manufacturers. The industry is fragmented, with the presence
of both organised and un organised players, and competition from international companies who
have set up their base in India. Indian pump manufacturers appear to completely fulfill the
domestic demand for pump usage, with more than 600 manufacturers producing around 1.2
million pumps annually. The industry is balanced in terms of demand-supply, with domestic
companies meeting 95 percent of the requirements and imports constituting the remaining 5
percent

In India, pumps are used in the domestic, industrial and agriculture sectors. The Indian
agriculture sector is the largest consumer of pumps, with pumps being used in several
applications such as irrigation and water distribution; in the industrial and domestic sectors,
pumps are used for water supply, sewage, chemical supply, etc.

4
Agriculture: The agriculture sector is the largest contributor to the total demand for pumps and
accounts for approximately 35 percent of the total pump market in India. Currently, the
agriculture sector is characterised by the penetration of low-cost pumps. Various policies and
subsidies by the government to promote the use of efficient and quality pumps are likely to boost
the demand for agricultural pumps. Industrial: The industrial sector contributes around 35
percent market share for the pumps sector9. Since pumps represent the largest single use of
electricity consumption in industries (approximately 31 percent) 10, the focus in this segment is
on high quality pumps, with regular upgradation to the latest technologies. Pumps find
application in various industries, including oil & gas, power projects, chemical, food & beverage,
marine applications, pulp & paper, pharmaceutical etc. With a large number of projects in the
pipeline, the power sector is expected to prove a major demand driver for pumps11. Domestic:
The market share for domestic pumps share is relatively low at 30 percent, as compared to
agricultural and industrial pumps12. Pumps, in this segment, are used for public water supply,
sanitation, household utilities and business establishments. The emerging middle class and the
continuous movement of population towards metro cities are expected to drive the growth of
pumps in this segment.

2.5 MAJOR COMPETITORS

C.R.I PUMPS Pvt .Ltd

SHAKTHI PUMPS Pvt .Ltd

AQUA GROUPS

LAKSHMI WATER PUMPS

KSB GROUP

TEXMO IDUSTRIES

SUGUNA MOTORS AND PUMPS

2.6 TRENDS

5
 Large number of fairs and events
Technology Orientation
Foreign companies operating in India

2.7 GOVERNMENT POLICIES AND REGULATIONS

The Government of India has announced a national manufacturing policy with the objective of
enhancing the share of manufacturing in GDP to 25% within a decade and creating 100 million
jobs. It also seeks to empower rural youth by imparting necessary skill sets to make them
employable. Sustainable development is integral to the spirit of the policy and technological
value addition in manufacturing has received special focus.

2. The share of manufacturing in Indias GDP has stagnated to 15-16% since 1980 while the
share in comparable economies in Asia is much higher from 25 to 34%.

3. Inadequate physical infrastructure, complex regulatory environment and inadequate

availability of skilled manpower have constrained the growth of manufacturing in India.

4. Recognizing that the manufacturing sector has a multiplier effect on the creation of jobs, even
in allied sectors, the government has brought out this policy for the gain of pump industries.

5. The policy is based on the principles of industrial growth in partnership with the States. The
Central Government will create the enabling policy frame work, provide incentives for
infrastructure development on a Public Private Partnership (PPP) basis through appropriate
financing instruments, and State Governments will be encouraged to adopt the instrumentalities
provided in the policy.

6. The proposals in the policy are generally sector neutral, location neutral and technology
neutral except incentivization of green technology. While the National Investment and
Manufacturing Zones (NIMZs) are an important instrumentality, the proposals contained in the
Policy apply to manufacturing industry throughout the country including wherever industry is
able to organize itself into clusters and adopt a model of self-regulation as enunciated.

6
 3. COMPANY PROFILE

3.1 HISTORY

Deccan is the typical ancient form of Tamil word THEKKANAM meaning south and was
started in the year -1981 primarily to manufacture submersible pumps for bringing out the
underground water through the bore wells. The company Deccan Industries was the first
company to exclusively manufacture submersible pump sets Deccan submersible are first in
Coimbatore to obtain ISI marking and license .For all his achievements our founder was honored
with Six National awards including the UDYOG PATRA from the honourable President of
India. It is needless to say that Green Revolution and Food Sufficiency as claimed by us, is
now possible only because of the installation of large quantity of pump sets, especially the
submersible pump sets category. The promoters of DECCAN are all well qualified Engineers
and had very good experience and expertise in the field since 1972.

The company's vision is 'Service to Mankind' by way of providing energy efficient products
with in-house technology and designs to serve agricultural and domestic consumer community.
The company also has sister concerns namely, 'Marks Industries', 'Deccan Pumps Private
Limited' and 'Deccan Enterprises' that are involved in manufacturing and trading activities.
Each product manufactured by the firm has established itself successfully in the competitive
market scenario, because the company's core competence is 'Product differentiation'

3.2.FOUNDERS
Coimbatore city is credited with the manufacture of first pump and electric
motor in India in the year 1930 and 1937 respectively by its founder
Er.K.K.Veluchamys B.E Hons childhood dreams of creating a device for lifting
water from deep wells is the inspiration for him to establish Deccan
Industries. He was a pioneer in the field of submersible pump sets and
credited with developing submersible pump sets for depths higher than 1000
feet.

7
Mr.P Arumugam a graduate of mathametics is the fellow founder of deccan
group and is the key driving force behind deccan operation strategy. He
heads the finance, purchase, production planning and development divisions
and is involved in devising the road map for deccan. His management skills
have helped us build a core team that works to deliver his strategic plans. He
is commited to ensuring that the group sustains its benchmark of quality

Mr.K.V Karthick following an engineering degree from MIT Pune pursued

higher learning at Sheffield University,(U.K) joined his father and uncle and
has since been working at all levels of the group. He was able to hone his
engineering skills and also develop an understanding of rapidly evolving
technology from around the world Mr.K.V Karthick spread head research
initiatives works in responsible for several improvisions. His global exposure
has helped him gain several insights into global marketing startegies. He
currently heads the sales and marketing and research divisions at the group.
His enthusiasm and high energy levels are a constant source of inspiration
for team deccan.

The core management team is ably supported by a group of professionals,

each responsible for a particular area of operation. Along with an able team,
we work to constantly to elevate their standards in pump and allied light
engineering manufacture.

3.3 VISION AND MISSION

The company Deccan with its vision 'Service to Mankind' and its mission as
A new perspective in pump design set by their founders is their motivation
to continually develop and improve in their growth.

3.4 PRODUCTS

Deccan Borewell Submersible Pumpsets for 100 mm Bore wells (4)

8
 Deccan bore well Submersible Pump sets for 130 mm Bore wells (5- 4 Combination)
Deccan bore well Submersible Pump sets for 130 mm Bore wells (5)

Deccan bore well Submersible Pump sets for 140 mm Bore wells (5.5)

Deccan bore well Submersible Pump sets for 150 mm Bore wells (6)

Deccan Closed Couple Submersible Pump sets

Deccan bore well Submersible Pump sets for 180 mm Bore wells (6- 7 Combination)

Deccan bore well Submersible Pump sets for 200 mm Bore wells (6- 8 Combination)

Deccan bore well Submersible Pump sets for 200 mm Bore wells (8)

Deccan Bore well Submersible Pump sets for 240 mm (V10), 280 mm (V12), 330 mm
(V14) Bore wells

Horizontal Split case Pump sets (HSC)

Vertical Turbine Pump sets (VT)

Deccan Submersible Motors - NEMA Standard

Stainless Steel Submersible Pumps

3.5 FINANCIAL PERFORMANCE

The organization was started in the year 1981. Quality alone was the ultimate goal at that time.
Since submersible manufacturers was not that much popular and competitive, the growth
of the company was not affected. Indeed the need for submersibles increased rapidly due
to the increase in the need for water.

Ground water levels went very low such that conventional motors like
monoblocs could not draw water from a depth more than 30 feet. The growth in the

9
early stages of the company is marked with their quality and market monopoly of open
well submersibles.

During the mids the company policies such as dealership policy and distribution
policy was very attractive, so the dealers were able to easily get done their needs from
the company so as to cater their customers. The company realized the competitive
market as no submersible manufacturers are in the field. In order to cater their dealers
and customers the company has amended its policy so as to strengthen their services
such as timely delivery, zero stock at dealer point, twelve hours clearance of serviced
warranty and after warranty pump sets. This effectiveness they have achieved by adopting
the modern administrative tool ISO. Since accredited as an ISO company in the year
2000, the companys growth is remarkable as the staff, the worker and the whole the
company itself is driven by the ISO system.

3.6 PLANT AND MACHINERY

The company is installed with all modern and precise machineries required to
manufacture the pumps in high caliber. Most of the works are done in the factory itself by using
CNC machines. Special purpose machines are used to do jobs of intricate nature.
Interchangeability of components and suitability of spares are the main criterion in the shop
floor. Jigs and fixtures are freely used to keep the standards and productivity. Utmost care is
taken in the planning stage itself to keep the rejection at the lowest level and also to get the job
done in minimum time with less effort. Computers are installed at every stage to monitor the
processes. Generators of adequate capacity are installed for uninterrupted power supply.
Instruments of high accuracy are used along with standard gauges for inspection. Efficient
engineers are provided at each level to monitor and also to contribute their knowledge for
continuous improvement. Testing benches more than the required are installed for taking care of
each and every pump set for its performance and longevity.

10
3.7 QUALITY ASSURANCE

The company is adopting the Quality management system ISO-9001 duly certified and
monitored by KPMG - the quality registrar approved by the American Society for Quality. BIS
standard marking IS 8034 applicable for bore well submersible pumps, IS 14220 applicable for
Open well submersible pumps, IS9283 applicable for submersible motors and IS 9079 applicable
for moonset pumps are the other quality certificates obtained by the Company. As many as 367
models having the rating between 0.37kW to 90kW are covered in the BIS certification
markings. DECCAN is having the prestige of holding more models in manufacturing of
pumpsets with BIS markings than any other industry. As the energy is becoming costlier day by
day DECCAN is making only energy efficient pumpsets benefiting both the customer and the
country.

DECCAN is the first in India to obtain IS 14220 certification mark assigned for open well
submersible pumps. Some models of pumpsets in the market itself are called DECCAN types
and from that the supremacy of DECCAN can be ascertained. DECCAN jet pumps require no
control valve and it is the discovery of DECCAN. Similarly DECCAN occupies forefront in
many designs and developments.

3.8 REGISTRATION

The companys products are approved by many Government and Quasi Government
departments. Notable among them are Tamilnadu Water Supply and Drainage Board, Kerala
Water Authority, Karnataka SC & ST cooperation, Panchayat Raj, department of Andhra
Pradesh, Indian Railways, Central Public Works Department of India. Airport Authority of India
and Maharashtra Jeevan pradhikaran. The company is a member in the Engineering Export
promotion Council of India.

A few other bodies in which membership shared are Confederation of Indian Industry,
Indian Water Works Association, The Indian Chamber of commerce and Industry and Southern
India Engineering Manufacturers Association. All technical journals of world class connected
with motor, pump, Electricity etc... are subscribed. A library housing the books related with
technology, standards, management etc... are has also been put up in the premises for reference
and guidance.

11
3.9 CREDENTIALS

The company is awarded with as much as six numbers of National Awards for its Quality
and Humanity Service. Dr. Shankar Dayal Sharma then President of India presented UDYOG
PATRA award, Dr.Raby Roy then Loksabha Speaker presented LOKSHREE award and Mr.
Ramvilas Paswan then Minister for Labour for Government of India presented UDYOG
SHREE award. The highest honour the DECCAN believes is the reputation it has earned among
the millions of its users, vendors and well wishers. DECCAN will keep this high esteem
empowered on it forever.

3.10 ORGANISATION STRUCTURE OF DECCAN PUMPS PRIVTE LIMITED

12
MD JMD

UNIT-1 UNIT-2 UNIT-3

MANAGER MANAGER MANAGER
PRODUCTION PRODUCTION PRODUCTION

13
 4. OVERVIEW OF FUNCTIONAL DEPARTMENTS

4.1 MARKETING DEPARTMENT

The marketing department is responsible for creating, preparing, and establishing marketing
strategies and policies for each title by coordinating the efforts of publicity, promotion,
advertising, online, and sales.
MANAGER
MANAGER
4.1.1 MARKETING MANAGERS ROLES AND RESPONSIBILITIES
PURCHASE
ADMIN
SYSTEMS
ACCOUNTS
Preparing all sales presentation materials: audio recordings, fact sheet collation, and
SALES
DESIGN
promotions.
Creating and producing additional account-specific presentation materials.
Creating pricing strategies.
OFFICE Researching and establishing relations with new markets. OFFICE
ASSISTANTS ASSISTANTS
Planning and maintaining sales and marketing schedules,
QA including title launch and
ACCOUNTANTS SYSTEM
planning meetings.
DESIGN ENGINEERS PROGRAMMER
ENGINEERS Measuring the effectiveness of strategies once completed.
AREA SALES
EXECUTIVES
Development of marketing goals and strategy.

Conducting marketing researches and monitoring customer needs.

SALES
ASSISTANTS
Promotion and advertisement.

4.1.2 MARKETING RESEARCH ACTIVITIES

The marketing department design suitable formats to procure feedback, suggestions and
complaints periodically based on the earlier analysis reports. Feedback of the customers is
DESPATCH
collected through market survey, Questionnaires or Direct Meeting with customers
CLERK
(Product Rating Form).

The operations are classified as,

FEEDBACK PLANNING

14
 FEEDBACK
ANALYSIS
FEEDBACK ANALYSIS REPORT
4.1.3 MARKETING & DISTRIBUTION STRUCTURE

The marketing department is responsible for creating, preparing, and establishing

marketing strategies and policies for each title by coordinating the efforts of publicity,
promotion, advertising, online, and sales.
DECCAN pump sets are sold throughout India and abroad by its distributors and dealers.
The branches owned by the company are used for stocking, imparting technical
knowledge among the users, dealers and fitters, providing service backups and passing
the advice, suggestions and criticism from the end users to the concerned authorities for
improvement and upgrading. The job of DECCAN will not end with the sales but also to
see the customer is benefitted maximum out of it. The customer care is taken in keeping
the pump set with minimum maintenance.
Every effort is taken to accommodate the standard components available in the market to
off-set the delay in getting from the source. It is the policy of DECCAN that customer
should not suffer because of spares. Apart from that the spares for pumpsets even for the
models that are produced 15years back will be available at the factory. As a gesture
DECCAN can arrange for its customers the other accessories required for pumpsets such
as control panel, cable, pipes and installation works at minimum cost.

4.1.4 PRODUCTS PROFILE

1. Submersible Pumps

A. For Borewell Pumps

Available in various size for 80mm, 100mm, 140mm, 150mm, 200mm, 250mm
and above dia borewells.
The rating of power ranges from 0.37KW TO 90KW.
The other pumpsets with rating offered for agricultural and water supply schemes
are 2.2KW TO 66KW.
Suitable for continuous operations.

15
 Consumes less power.
Vibration free and noise less operations.

B. For Openwell Pumps

Available in vertical and horizontal type pumps.

2.2KW to 15KW in case of agricultural moonset pumps.
Horizontal type is suitable for low head operations and vertical types is for high
head operations.

C. For Minipumps
For domestic use and gardening purpose the types of pumpset manufactured and
their ratings are, Sub-Sevak mini submersible pumps from 0.37KW to 2.2KW.
For TINY submersible pumps in 0.37KW end 0.75KW.
Deep Double Stage Jet Pumps from 0.37KW to 1.5KW.

2. Monoblock Pumps

A. Centrifugal Monoblock Pumps

It is also called as a Domestic Centrifugal Pumps from 0.37KW to 1.5kw.
DSM-Suction Monoblock PUMPS in 0.37KW and 0.75KW and.
Double Stage Centrifugal Monoblock from 0.37KW to 1.5KW.
Excellent performance even at low supply voltage.

B. Mini Mono block Pumps

For ZIP Mini Mono block in 0.18KW and 0.37KW.
Very compact and light weight.
Foot value is not needed.

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 For large volumes and low heads Fish Pond pumps are also manufactured. Beside those
the company is having the capability to manufacture pump set of any nature and specifications.
Pump sets for different voltages, different frequencies and dual voltages are manufactures
regularly.

4.1.5 PRODUCT FEATURES

All the motors manufactured operate at very Low voltages and are specifically designed
to withstand the wide voltage fluctuations prevailing in rural areas.

The company offer submersible pump sets for agricultural use that are specially designed,
to save energy for operations under 240/460 Volts single phase power system.

Absence of control valves in jet pumps.

Mini submersible pumps fitted with as many as 10 impellers help develop higher heads to
use in flats etc. contrary to monoblocs which has only one impeller.

Absence of threaded joints in both pump and motor to facilitate for easy dismantling and
assembling during service.

4.1.6 PRODUCT PRICING

S.NO PRODUCTS PRICE

1 Deccan Bore well Submersible Pump sets for 100 mm Rs 13,299*
Bore wells (4)
2 Deccan bore well Submersible Pump sets for 130 mm Rs 14,699*
Bore wells (5- 4 Combination)

3 Rs 18,437*
Deccan bore well Submersible Pump sets for 130 mm
Bore wells (5)

4 Rs 20,588*
Deccan bore well Submersible Pump sets for 140 mm

17
 Bore wells (5.5)

5 Rs 17,620.00*
Deccan bore well Submersible Pump sets for 150 mm
Bore wells (6)

6 Rs 25,398*
Deccan Closed Couple Submersible Pump sets

7 Rs 29,945*
Deccan bore well Submersible Pump sets for 180 mm
Bore wells (6- 7 Combination)

8
Deccan bore well Submersible Pump sets for 200 mm Rs 49,468*
Bore wells (6- 8 Combination)

9 Deccan bore well Submersible Pump sets for 200 mm Rs 68,501 - 82,638*
Bore wells (8)

10
Deccan Bore well Submersible Pump sets for 240 Rs 53,910 - 85,246*
mm (V10), 280 mm (V12), 330 mm (V14) Bore wells

11 Rs 68,000
Horizontal Split case Pump sets (HSC) 1,00,000*
12 Rs 40,000 -70,000*
Vertical Turbine Pump sets (VT)

13 Rs 8,000 16,000*
Deccan Submersible Motors - NEMA Standard

14 Rs 14,000 -30,000*
Stainless Steel Submersible Pumps 14,000 -30,000

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 Fig 4.1.6 Product pricing

4.1.7 ADVERTISING OF DECCAN PRODUCTS

They advertise their products through dealers meeting, wall paper advertisements, paper
advertisements. At present, the organization is engaged in radio advertisements.

4.1.8 EKKI GROUPS

Deccan Pumps Coimbatore has also launched a new brand of pumps EKKI (which in Tamil
means to ascend) which targets both the agricultural and urban markets where it is
administrated by MR.P.Arumugam, Chairman, DPPL, and Kanishka Arumugam, Product
Manager, EKKI, for a new division of DPPL. The EKKI range of products are produced at a
greenfield facility set up with a capacity to manufacture 6,000-7,000 units a month.

Where EKKI Group is now one among Indias largest producers of Pumps & Systems based in
Coimbatore - The pump city of Asia. this family business produces a wide range of pumps
namely Borehole Submersible Pumps & Motors, Multistage Pumps, Pressure Boosters, Drainage
& Sewage Pumps, Openwell Submersibles, Self Priming, Peripheral & End-Suction Monoblocs.

With its 4 world-class production centres, The EKKI Group along with deccan pumpsets today
is the worlds largest producer of Vertical-Openwell Submersibles and is also a market leader in
the Borehole Submersible segment. The company also operates a Systems division, which
produces Pump Controls & complementary accessories for the entire pumping
system. Internationally, EKKI is growing fast, expanding and establishing its global presence. It
has been forging strategic sales partnerships with Distributors and Sales agents across countries.

4.1.9 INTERNATIONAL MARKET

Exports have boosted the growth of the company, Deccan pumps private limited being the top
pump manufacturers in Coimbatore city that accounts for a near 40 per cent market share of the
organised pump market in the country also a partner with European pump manufacturers to
serve markets in both India and abroad Deccan pumps private limited exports its product to

19
overseas namely North America, Western Europe, Eastern Europe, South America, Southeast
Asia, Eastern Asia, Mid East, Africa .Where as other foreign companies which are about to enter
Indian markets to enter the Indian market have evinced an interest to forge joint ventures with
Deccan Pumps private limited. European pump makers which also expects Deccan to supply
products under their brand names. While buying submersible motor parts from India and China,
they would produce their own pumps at their own facilities, making Deccan an OEM supplier to
them, under their brand name.

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 4.2 FINANCE DEPARTMENT

The business of a finance department typically includes planning, organizing, auditing,

accounting for and controlling its companys finances. The finance department also usually
produces the companys financial statements.

Department process flow chart

GM Accounts

Manager
accounts

Asst.Manager
Accounts

Accountants

Fig.4.2 Finance Department Process Flow

4.2.1 FUNCTIONS AND ROLES OF FINANCE MANAGER AND DEPARTMENT

To prepare Interim financial statements

To prepare Annual financial statements

Security of Accounts

To provide strategic financial support regarding operational and general business

planning
To provide daily financial services functions

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 To meet and surpass the internal and external needs and financial reporting requirements
of the company at large
Inventory Management

4.2.2 SIGNIFICANT ACCOUNTING POLICIES AND CASH MANAGEMENT

1. Accounting Concepts

The Company follows accrual method of accounting, except where the receipt of income
is uncertain in accordance with the Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956.

2. Fixed Assets

Fixed Assets are stated at the Cost of Acquisition of construction. They are stated at
historical cost less depreciation.

3. Depreciation

Depreciation is provided under Written Down Value Method at the rates specified in
schedule XIV of the Companies Act, 1956.

4. Inventories

Inventories are valued as under: Raw Materials, Work-in-Progress, Finished Goods and
Stores and Spares are valued at lower of cost and net realizable scraps are valued at net realizable
value.

5. Contingent Liability

Contingent Liabilities are generally not provided in the accounts and are shown
separately in notes on Accounts.

6. Deferred Tax

Deferred Tax is recognized subject to the consideration of prudence in respect of

22
 Deferred Tax assets on timing differences being the difference between taxable income and
accounting income that originate in one period and are capable of reversal in one or more
subsequent periods.

No amount has been claimed from the company under the interest on delayed payments of
Small Scale and Ancillary Industrial undertaking Act, 1993.As on 31.03.2008, the Company has
no outstanding due to any Small Scale Industrial undertakings as defined under section3 (i) of
the Industries (Development And Regulation) Act, 1951 for a sum exceeding Rs.1,00,000/- and
which is outstanding for more than 30days.

Table 4.2.1 PROFIT AND LOSS ACCOUNT OF DECCAN PUMPS

PRIVATE LIMITED FROM 2011-2014

PARTICULARS SCH.NO 2011 2012 2013 2014

INCOME:

SALES 3,07,08,446.0 3,28,72,093. 3,32,06,308. 3,15,78,33

0 00 00 1.00
OTHER INCOME 12
58,665.0 68,067. 4,14,31
CLOSING STOCK 13
0 66,618.00 00 4.36

73,64,740.0 30,47,028. 48,80,05

0 25,89,640.00 00 0.00

TOTAL-A 3,81,31,851. 3,55,29,161 3,63,21,40 3,68,72,69

00 .00 3.00 5.36

EXPENDITURE:

OPENING STOCK 40,09,142. 73,64,740. 25,89,640. 30,47,02

00 00 00 8.00
PURCHASES 14
2,50,54,545. 2,06,83,227. 2,32,98,420. 2,17,73,45
MANUFACTURING 15
00 00 00 3.00
EXPENSES
41,50,181. 33,94,110. 55,92,66

23
ADMINISTRATIVE 16 00 20,03,538.00 00 1.00

EXPENSES

SELLING EXPENSES 17 15,13,886. 21,07,019. 31,54,155. 36,76,76

00 50 70 8.00
REPAIR & MAIN 18

FINANCIAL 19
CHARGES 1,07,841. 2,73,689. 6,37,906. 3,44,47
00 00 00 7.00

1,27,396. 1,66,78
1,38,159.00 1,55,853.00 00 0.00

10,08,613. 10,95,465. 8,81,763. 7,81,51

00 00 00 2.80

TOTAL-B 3,59,82,36 3,36,83,531 3,40,83,39 3,53,82,67

7.38 .50 0.70 9.80

PROFIT BEFORE 21,49,483. 18,45,629. 22,38,012. 14,90,01

DEPRECIATION 62 50 30 5,56
&TAX(A-B)

Less:

DEPRECIATION
15,13,639. 12,96,975. 11,15,712. 14,02,53
00 00 00 8.00

PROFIT BEFORE 6,35,84 5,48,654 11,22,30 87,47

TAX 4.62 .50 0.30 7.56

24
Less: PROVISION - 11,448. -
FOR TAXATION 00 21,477.00

CURRENT TAX
1,49,973. 4,50,200.
DEFERRED TAX 00 3,01,780. 00 9,97,89
LIABILITY 00 8.00
(2,24,859.0 (1,00,541.0
FRINGE BENEFIT 0) (1,27,505. 0) (77,940
TAX 00) .00)

19,893.
18,540.00 13,880. 00 (15000
00 .00)

PROFIT AFTER 6,92,19 3,49,051 7,52,74 59,14

TAX 0.62 .50 8.30 2.56

Add: OPENING 23,61,187. 30,52,208. 34,01,260. 41,40,55

BALANCE OF 20 82 32 7.62
RESERVES b/f

Less: PRELIMINARY
EXPENSES w/o
1,169. - - -
Less: TDS Paid w/o
00

13,481. 13,73
00 6.00

BALANCE 30,52,20 34,01,260 41,40,55 41,85,96

TRANSFER TO 8.82 .32 7.62 4.18
BALANCE SHEET

25
 Table 4.2.2 BALANCE SHEET OF DECCAN PUMPS PRIVATE LIMITED
FROM 2011-2014

PARTICULARS SCH. 2011 2012 2013 2014

NO

SOURCES OF FUND:

SHARE HOLDERS FUND

SHARE CAPITAL 1 58,00,000. 58,00,000. 58,00,00

00 58,00,000.00 00 0.00
SHARE CAPITAL ADVANCE
10,00,000. 20,00,00

26
RESERVE & SURPLUS 2 30,52,208. 00 0.00
82 34,01,260.32
41,40,557. 41,85,96
62 4.18

TOTAL I 88,52,20 1,09,40,557. 1,19,85,96

8.82 92,01,260.3 62 4,18
2

LOAN FUNDS

SECURED LOANS 3 60,07,293. 8,11,306. 13,57,14

09 22,59,466.09 09 5.53
UNSECURED LOANS 4
46,50,000. 68,50,000. 58,50,00
00 58,50,000.00 00 0.00

TOTAL-II 76,61,30 72,07,14

1,06,57,293. 81,09,466.0 6.09 5.53
09 9

DEFERRED TAX LIABILITY- 9,94,36 7,66,32 6,88,38

III 8.00 8,66,863.00 2.00 2.00

TOTAL 2,05,03,86 1,93,68,18 1,98,81,49

9.91 1,81,77,589. 5.71 1.71
41

APPLICATION OF FUND:

FIXED ASSETS

GROSS BLOCK 2,04,99,250. 2,58,11,999. 2,61,00,553. 2,66,09,54

80 80 80 8.80
Less: DEPRECIATION
86,05,685. 99,02,660. 1,10,18,371. 1,24,20,90
40 40 80 9.80

NET BLOCK-IV 1,18,43,56 1,59,09,33 1,50,82,18 1,42,48,63

5.40 9.40 2.00 9.00

CURRENT ASSETS
LOANS AND ADVANCES

27
INVENTORIES

CASH & BANK BALANCE 5 73,64,740. 25,89,640. 30,47,028. 48,80,05

00 00 00 0.00
SUNDRY DEBTORS 6
1,87,259. 4,06,547. 6,27,509. 38,41
ADVANCE & DEPOSITS 7
51 01 71 5.71
RECEIVABLES 8
39,58,220. 63,95,848. 25,87,270. 5,75,47
9 00 00 00 4.00

14,49,807. 18,01,837. 25,54,807. 46,15,30

00 00 00 6.00

3, 3,45,297. 8,59,634. 14,11,05

81,801.00 00 00 5.00

TOTAL-(a) 1,15,39,16 96,76,24 1,15,20,30

1,33,41,827. 9.01 8.71 0,71
51

CURRENT LIABILITIES 10 45,13,010. 89,69,139. 49,40,045. 57,87,65

00 00 00 0.00
PROVISION FOR TAXATION
1,68,513. 3,01,780. 4,50,200. 99,79
00 00 00 8.00

TOTAL (b) 46,81,52 92,70,91 53,90,24 58,87,44

3.00 9.00 5.00 8.00

NET CURRENT ASSETS 86,60,30 26,68,25 42,86,00

4.51 0.01 3.71 56,32,852.71
(a-b) V

MISCELLANEOUS ITEMS VI - - - -

TOTAL(IV+V+VI) 2,05,03,86 1,81,77,58 1,93,68,18 1,98,81,49

9.91 9.41 5.71 1.71

28
 4.2.3 FINANCIAL PERFORMANCE OF THE ORGANISATION

I.FIVE YEARS FINANCIAL PERFORMANCE ANALYSIS YEARS 2009-2014

2009-2010 2010-2011 2011-2012 2012-2013 2013-2014

FIXED 8,342,927.48 10,232,172.46 10,591,140.62 11,409,110.30 11,523,044.12

ASSETS

DEBTORS 22,660,218.00 20,250,895.00 26,366,154.00 26,366,154,00 30,411,792.00

BALANCE

CREDITOR 29,891,020.00 27,946,711.00 28,390,702.00 28,093,702.00 30,210,345.00

S BALANCE

SALES 1,33,914,811.0 1,50,802,068.0 1,54,097,754.7 1,80,703,214.0 2,14,115,136.0

0 0 5 0 0

PURCHASE 10,263,455.47 1,12,874,584.0 1,27,856,240.0 1,33,178,306.0 1,54,762,564.0

0 0 0 0

EXPENSES 15,853,996.40 8,655,213.00 1,54,097,754.7 11,389,024.00 15,730,840.95

5

The organization was started in the year 1981. Quality alone was the ultimate goal at that
time. Since submersible manufacturers was not that much popular and competitive, the
growth of the company was not affected. Indeed the need for submersibles increased
rapidly due to the increase in the need for water.

29
 Ground water levels went very low such that conventional motors like monoblocs
could not draw water from a depth more than 30 feet. The growth in the early stages of
the company is marked with their quality and market monopoly of open well
submersibles.

During the mids the company policies such as dealership policy and distribution
policy was very attractive, so the dealers were able to easily get done their needs from
the company so as to cater their customers. The company realized the competitive
market as no submersible manufacturers are in the field. In order to cater their dealers
and customers the company has amended its policy so as to strengthen their services
such as timely delivery, zero stock at dealer point, twelve hours clearance of serviced
warranty and after warranty pump sets. This effectiveness they have achieved by adopting
the modern administrative tool ISO.

Since accredited as an ISO company in the year 2000, the companys growth is
remarkable as the staff, the worker and the whole the company itself is driven by the
ISO system.

30
4.3 HUMAN RESOURCE DEPARTMENT

DECCAN gives more importance to its team members it possesses, believes that an
organization is mainly recognized by the team rather than the buildings and machines it houses.
The team is imparted with the training both related with the technology and personality.
Everyone is empowered with the liberty to give expression. Criticism and suggestions are
welcomed equality. The worthy will be implemented.

DEPARTMENT PROCESS FLOW CHART

Recruitment

Selection

Training &
Development

Performance

Compensation

Fig.4.3 Human Resource Department Process Flow

4.3.1 ROLE OF HR MANAGER & DEPARTMENT

Compensation management
Benefits evaluation and administration
Recruitment and talent acquisition
Training and development

31
 Performance appraisal and management
Employee labour relations
Provides expert HR advice to the business by working in a consultative approach
with key internal stakeholder/s to ensure business alignment. Identify key
organizational issues and take corrective actions to resolve issues.
4.3.2 COMPENSATIONS

Apart from the statutory obligations every one is given the medical claim for the accident
that may occur inside or outside the premises irrespective of the nature. Preventive vaccination is
also done by conduction special camps. On many occasions the team members have offered
voluntary blood donations.

A sports club is also functioning in the premises and it has participated in many tournaments and
brought some laurels to the company. Every team members family is invited for a dinner and
get-together at least once in a year preferably on a festival day for getting a better interaction. An
atmosphere is created in everyones mind that the companys interest is the first than the ones
self.

4.3.3 TRAINING AND DEVELOPMENT

The systems manager, Mr.R.Vivekanandhan takes an additional responsibility as manager,

training and its responsible for all the training activities in the company. All the staffs and
workers are assessed on their capability and performance in the company and suitable training is
imparted to meet the modern trend.

The top management, the department head, and the personnel himself assists in
identifying the requirement for training of selected employee or staff, to ensure that activities
performed by them are up to the quality mark and makes a request to the manager, training.

The training manger assesses the need for training with the help of the documented
reports and if he finds necessary, arranges for training with the confirmation from the MD. The
suitable faculty (in-house or external) handles the class to impart the necessary training. External
training conducted by reputed institutions, is also attended by the staff on the approval of the
MD, recommended by manager, training.

32
 The feedback about the training is obtained from the trainee detailing the faculties
performance, arrangements and other information. This serves as document of reference for the
organization to improve the quality of training in future. The training manager maintains a record
of all internal and external programmes and details of the participants who participated in
training. The trained participants are evaluated on their performance by the end of the training or
after a particular period and a report of the same, submitted to the MD.

The training manager also takes care of the Inplant; Institutional, on-job training imparted
to college students, diploma and I.T.I certificate holders. They extend this facility to the students
to maintain a good rapport with the colleges and other educational institutions.

The training process are classified as,

REQUIREMENT IDENTIFICATION
REQUEST ASSESEMENT & APPROVAL
TRAINING
TRAINING REPORT
TRAINING APPRAISAL
TRAINEE REPORT
The Manpower requirement identified by the top management or department heads with
a view to ensure the activities are performed to the designed quality system is forwarded as a
requisition for manpower to the manager, training for further action. The manager, training is
responsible for recruitment process also.

The training manager assesses the need with assistance from concerned department
authorities and on conformance prepares a document detailing the required skills, eduction,
experience etc. and proposes the same for the MDs approval.

The training manager identifies the suitable candidates and calls for a personal interview,
by a perusal of CVs.The CVs are gathered by means of data bank, advertisements, word of
mouth, reference etc. The interview panel is formed by suitable persons to conduct a formal
interview.

33
 The panel interviews the candidates and selects suitable candidates in accordance to the
requirements. A consolidated report is generated by the manager, systems based on the panels
statements. Selected candidates are appointed after the approval of MD.

Candidates, if necessary should undergo training for a prescribed period of time. The
recruitment process and the result details are prepared as report with the attachment of the panel
statements and the same is presented for MDs reference.

4.3.4 RECRUITMENT & SELECTION

The recruitment processes are classified as,

MANPOWER REQUIREMENT IDENTIFICATION

REQUEST ASSESSMENT & APPROVAL
INTERVIEW CALL
RECRUITMENT
REQUIREMENT REPORT

4.3.5 WELFARE ADMINISTRATION

The company has the unique distinction of constructing a huge pump for rain water harvesting.
Modern methods are used for stocking and handling and even the raw materials are stored in the
stock yard pallets. And the medical claims and insurance are provided in case of any accidents to
the employees during the work time.

4.3.6 EMPLOYEE BENEFITS

Deccan pumps private ltd includes various types of non-wage compensation provided
to employees in addition to their normal wages and salaries.Certain benefits in deccan industries
include housing for the higher grade officers employes in the company, group
insurance ,health, life ,disability income protection, retirement benefits, sick
leave, vacation including both paid and non-paid. The purpose of these employee benefits is to
increase the economic security of staff members by doing so they ensure in improving worker

34
retention and increase in productivity in the organization.Often, perks are given to employees,
free refreshments, leisure activities on work time.

4.3.7 SALARIES AND WAGES STRUCTURE

There are around 200 to 250 employees in deccan pumps private limited including the top grade
managers to the lower level semi skilled labours and apprentices and their salary and wages
structure are varied depending on their experience and the designation

Service Engineer ranges from 4.57lakhs - 4.95lakhs per annum

Executives salaries ranges from 3.68lakhs - 4.01lakhs per annum

Engineering Marketing Executive ranges from 19k - 21k monthly

Diploma Holder Mechanical Engineer ranges from 11k - 12k monthly

Section Manager ranges from 1 lakhs monthly - 1.08 Lakhs monthly

Semi-skilled labours ranges from 7K 10k monthly

4.3.8 Employee Benefits

Deccan pumps private ltd includes various types of non-wage compensation provided
to employees in addition to their normal wages and salaries. Certain benefits in deccan
industries include housing for the higher grade officers employees in the company, group
insurance,health, life ,disability,income protection, retirement,benefits,sick,leave, vacation includ
ing both paid and non-paid. The purpose of these employee benefits is to increase the economic
security of staff members by doing so they ensure in improving worker retention and increase in
productivity in the organization. Often, perks are given to employees, free refreshments, leisure
activities on work time.

35
 4.4 PRODUCTION AND OPERATIONS DEPARTMENT

4.4.1 PRODUCTION DEPARTMENT

The production department coordinates the production and manufacturing of each title.
Production acts as a liaison between editorial, managing editorial, design, production, and
outside vendors to create and distribute the final product.

The Production is the most important department in the organization and is paid utmost
attention. The Employees involved in production adhere to the organization on contract basis and
are paid based on the number of pump sets they manufacture.

The production of the components are carried out using both CNC and lathe machines.
The CNC machines are imported from Korea and are used in case of mass production and the
Lathe machines are obtained from Kirloskar. Two CNC machines are operating in the main unit,
one with single spindle and the other double spindled. In the case of double spindled CNC
machine, two separate processes are carried out and two separate monitors are there to control
them. Auto door function is also there in double spindled CNC machine. The CNC machines are
provided with the conveyor for collecting the chips and these chips are reprocessed into
components whereas the ordinary lathe machines are not provided with the conveyor and the
chips collection is performed manually.

36
FIGURE 4.4 PRODUCTION DEPARTMENT PROCESS FLOW

37
 MD JMD

UNIT-1 UNIT-2 UNIT-3

MANAGER MANAGER MANAGER
PRODUCTION PRODUCTION PRODUCTION

QA

ENGINEERS

JUNIOR ENGINEERS JUNIOR ENGINEERS JUNIOR ENGINEERS

WORKERS WORKERS WORKERS

SKILLED SKILLED SKILLED
SEMI SKILLED APPRENTICE
SEMI SKILLED APPRENTICE
SEMI SKILLED APPRENTICE
UN SKILLED UN SKILLED UN SKILLED

Fig 4.4 Production department process flow

38
4.4.2 ROLES AND RESPONSIBILITIES OF PRODUCTION DEPARTMENT

Trafficking of all materials between design and editorial/managing editorial.

Following up on late and/or special schedules.
Estimating of paper quantities and production costs.
Negotiating with suppliers.
Assisting on special projects as necessary.

4.4.3 PRODUCTION-PROCESS

The production of in-house machined components are planned based on forecasting

taking into account the previous week productions pending order and stocks. Materials needed to
produce as per production plan are acquired from the stores and issued to the operator and the
same is recorded in in process inspection note book. The inspected finished components are
stocked in stock yard/stores as suitable.

The production process are :-

PRODUCTION PLAN
QUALITY CONTROL
ACQUISTION AND ISSUE OF MATERIALS
PRODUCTION
STOCKING OF FINISHED GOODS

RECEIVING AND PROCESSING ORDERS

Orders from customers are received personally or through phone, fax, or email.
Order details are entered in the order transfer form in the system with the details such
as customer name, their requirements including model. The form is sent for financial
approval to the joint Managing Director.

39
 On JMDs approval, the order is checked for its adequacy of requirement. If the
requirements of the order are adequate, order is procured with order information,
customer details, items, quantities and shipment details. The delivery schedule is obtained
from the production engineer and communicated to the customer through established
means of communication.

If the financial approval from the Joint Managing Director is not obtained in favor,
customers are communicated over phone or mail about their credit rating, and the order is kept
pending until the commercial terms are sorted out. In certain circumstances JMD may not
despatch pending till approved and send the form further.

If the requirements are found to be inadequate, and when discrepancies are found on
special requirements, the customers are contacted to verify requirements. Special requirements
are evaluated by the MD to ensure that the company can comply. Special requirements/changes
are noted on the form. The form is then sent to the respective department.

The same process is repeated when there is need for any amendment.OTF is then issued
to the production and assembly is scheduled.

ASSEMBLY PROCESS

The schedule is prepared according to the OTF Stocks of the finished product, store
stocks and machined components are taken into account. Based on the schedule, production log
book entry is done by production engineer. Pump assembly details work instruction are also
included in the production log book entry.

The pump and motor are assembled based on the procedures. The fitter ensures the
perfect functioning of the product. Pump Serial No. is generated by the pump fitter. Motor Serial
no. is generated by the welder at the initial process. Then it goes for final inspection.

The assembly process are as follows,

PRODUCTION SCHEDULE
PUMP ASSEMBLY DETAILS WORK INSTRUCTIONS

40
 PRODUCTION LOG BOOK ENTRY
ASSEMBLY OF PUMP/MOTOR
FINAL INSPECTION

MAINTENANCE

All machinery requires preventive and routine maintenance at regular intervals as detailed
in preventive maintenance and machine accuracy. Out sources are called referring to the
machinery history note book, and preventive maintenance action is performed. The accuracy
level for each machine is verified each time at the time of maintenance.

CNC operators handle the programming errors, if any. As preventive maintenance is

adopted, complete breakdown of the machines are avoided at the maximum. Contractors are
there to carry out the maintenance. Apart from all these, daily maintenance of the machines is
performed by the operators such as oiling, cleaning, etc.

The operations are classified as follows,

MACHINERY MAINTAINED
PREVENTIVE MAINTENANCE

4.4.4 QUALITY CONTROL TECHNIQUES AND PROCEDURES

Quality control is a process employed to ensure a certain level of quality in a product or

service. The basic goal of quality control is to ensure that the products, services, or processes
provided meet specific requirements and are dependable, satisfactory, and fiscally sound.

a. MATERIAL INWARD INSPECTION

The MIRI (Material Inward and Receiving Inspection) holds the name of the material
received, vendor details, the purchase order placed, purchase document details. An oral
requisition from the stores department on the receipt of material initiates the process. The stores
department prepares and issues the MIRI document which stands a format for QC.

41
 The inspection is carried out by the QC engineer according to the Receiving Inspection
Method and Frequency and the test results are recorded in the MIRI. The monthly inspection
status report is prepared by the QC Engineers detailing the rejected materials, vendor etc.

The operations are classified as,

MATERIAL INWARD AND RECEIVING INSPECTION

INSPECTION REQUISITION
INSPECTION
MONTHLY INSPECTION STATUS
PRODUCTION AND QA

b. INPROCESS INSPECTION

The in process inspection sheet details the production to be carried out as per the
requirements from the production engineer. The sheet generated marks the start of the in process
inspection and the QC Engineer is the responsible for the process.

The QC engineer checks for quantitative correctness of the materials issued to the operator.
Following the relevant documents, the QC records the proceedings like M/c setting, tools issued
to the operator in the in process sheet.

The QC engineer checks the first piece as per the process setting and records the name in in
process inspection sheet. The QC engineer checks the components as per in process inspection
frequency and records the following details

a. Quantity inspection
b. Quantity accepted
c. Nature of rejections and Quantity in the In process Inspection Sheet and inspection status
(blue/green color) is marked on the component by QC engineer.
The QC engineer prepares the consolidated in-process Scrapped Material Report, Rejection
Details Report and the components are sent to the stores.

42
 The operations are classified as,

INPROCESS INSPECTION SHEET

INITIATION
M/C SETTING AND TOOLS INSPECTION
FIRST PIECE INSPECTION
ROUTINE INSPECTION
INSPECTION REPORT
STORES

c. FINAL TESTING
The products which are finished goods are taken into the various final testing process in order to
check the proper working and in case of any defects in the product and the process includes

Initiation

The final testing OK certification is a statutory requirement before the products are
dispatched. This effected once the assembly is completed.

Test Type

a. REGULAR TEST

b. ISI TEST

Regular Test

The regular test is carried out as per final test plan by Calibration and Testing
Engineer/Production Engineer. The results are recorded in Test Record Note Book.

Isi Test

ISI test is carried out as per BIS procedures by Calibration and Testing
Engineer/Production Engineer. The test results are recorded in Deccan Test Report Note Book.

43
Conformance

If the test results are found OK, the final product is tagged OK, before which it is set for painting
and finishing.

Non Conformance

If the test results are non-satisfactory, the n/c final test is recorded in Final Inspection N/C
Register and the product is returned to assembly for rectification. The production stands the same
till it is tested OK. The testing details are maintained in the system also. It includes production
number, body number, model, HP, phase, sanguard size, opening amps, maximum amps, closing
amps, etc.

d. DESPATCH

After the tests the motors and pump sets are then set for dispatch of the products with certain
procedures

Initiation

The final product is dispatched on the produce of invoice or other supporting documents.

Final Check

Final product is checked for corrective ness of production no., tested OK tag, name plate
etc. with reference to the invoice or other supporting documents.

Forwarding Note Preparation

The forwarding note is prepared if necessary, for those sets dispatched through private
and public transporters.

Out pass generation

The Out pass is generated as a final document to dispatch the products with reference to
the invoice or other supporting documents. The out pass prepared through the system
encompasses the following

44
 Customer details
The product details
Quantity details
OTF details
Production No. details
Packing Details
Transporters Details
The out pass also serves as a checklist for despatch.

System is designed to generate dispatch day reports, dealers, offtake, modelwise offtake,
pump sets query (if production number is given, the details of the set is displayed).

Calibration

All measuring equipments used for quality decision at company is calibrated on a

scheduled basis according to the Instrument History Card. This includes standards that are used
to verify instruments. Approved outsource are identified and master list is maintained various
instruments and the calibration procedures.

4.4.1Calibrations used

PRESSURE GAUGES Calibration is performed on a scheduled

basis

ELECTRONIC INSTRUMENTS Calibration is performed on a yearly basis

using outside sources. Life time of the
instruments is 10 years (app).

SURFACE TABLE Calibration is performed on a bi-annual

basis

PLUG GAUGES Calibration is performed once in two

months

MICROMETERS Calibration is performed on a yearly basis

using outside sources

45
 VERNIER CALIPERS Calibration is performed on a yearly basis
using outside sources

The instruments after calibration are sent for calibration certification/verification. If the
performance of the calibrated instruments is satisfactory, it is put into use for QC until next due
or undue problems. On failure of the calibrated instruments while in use, the calibration and
testing engineer reviews the same and suitably advises for repair or replacement. If the defect of
the instrument is non rectifiable, the same is disposed.

External micro meters and internal micrometers are used for the calibration of the gauges.
Wattmeter, ammeter, voltmeter are calibrated by an agency namely ICTC (Instrument Calibration
Testing Centre) and the other instruments by peninsula agency.

The stores department will be responsible for stocking all the necessary tools, spares, raw
materials and equipment required to service the manufacturing process. There is a store keeper in
the stores, after receiving a delivery note he will issue the materials for production. He maintains
a stores ledger.

Stores Inwards

The materials received vide PO/verbal order, are verified for quantity correctness, proper
maintenance at the goodown (heat, rain, pressure, etc), defects due to transportation by the stores
personnel. Depending on the nature of the materials received, the material inward and receiving
inspection form is computer printed and issued to QC personnel for the correctness of quality
and dimensions. Various items are found in the stores includes
impeller,circlip,sleeve,LBbush,coupling,keysstuds,sandguard,endwings,name,plate,nuts,bolts,wa
shers,neckrings,rubber items, emery sheet, drill bits,soap,paste etc.

The material inward and receiving inspection holds the name of the material received,
vendor details, the purchase order placed, purchase document details. The Quality inspection is
carried out by the QC Engineers, and assures the quality of the material received. The items
found to be defective are sent back.

46
 On the tested ok by the QC engineers, the materials are accepted into stores and suitably
stored for issue. The MIRI report is duly filed and retained by the stores personnel as a document
for future reference.

On QC inspection, if the materials are found to be defective, the received materials are sent
back to the vendor. Rejection goods report is generated by the stores- in- charge and the same is
forwarded to purchase department.

The operations are classified as,

RECEIPT OF MATERIALS
MATERIALS INWARD AND RECEIVING INSPECTION
INSPECTION
STORING OF MATERIALS/ PURCHASE RETURN AND REJECTION GOODS
DISPATCH OF MATERIALS
REPORT
The items that are received for stores include both finished and unfinished items. The
unfinished items are then taken over for rework purpose. The details such as the agency or the
person taking the items for rework purpose, the item particulars such as the item name, quantity,
and the job to be done are maintained as DC note.

4.4.5 INVENTORY MANAGEMENT

The stores department will be responsible for stocking all the necessary tools, spares, raw materials and
equipment required to service the manufacturing process. There is a store keeper in the stores, after
receiving a delivery note he will issue the materials for production. He maintains a stores ledger.

Stores Issue

The production, service and machine shop makes a request entry in the system to procure
the materials required from stores. The physical stock available in the stores at the time of
requisition is made known to the requestor so as to decide the quantity requested. On generation
of the request a person physically moves to the stores to collect the requests made.

47
 The stores personnel views the request in his system and issues the material and data
punches the quantity issued as a mark of issued. The stocks are immediately reduced from the
stores by the quantity issued. In the event of Non availability or shortage of materials, the stores
personnel indicate the same to the purchase department for procurement.

The stores personnel are aided with the above reports so as to verify himself the correctness
of the physical stock at his disposal. The purchase manager also views the reports at any given
time and plans for regular procurements of those materials which have come down the re-order
level.

The above said operations are classified as,

MATERIAL REQUISITION
STORES ISSUE
MATERIAL BELOW ROL
Various files such as purchase requisition slip(for tools), Approved vendors, vendor
rating, monthly indent(except for Ammeter, voltmeter), pattern list(casting vendors), new
vendors, drawing files, vendors alphabetically arranged, proforma details, monthly requirements
are maintained for reference.

4.4.6 PRODUCTION PLANNING PROCESS

Material Planning consists of ascertaining the need of the various departments in the
matter of materials and stores
Procurement of Stores includes purchase of materials of required quality and quantity at
reasonable prices.

Receipt & Inspection of Stores includes taking delivery of materials from carrier,
checking of quantity and quality.

Store Keeping includes stocking of materials in the wards, their handling, issuing on
demand by indentors and maintaining proper records.

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 Distribution of Stores includes timely dispatch and distribution of materials to various
users by adopting quick and right mode of transportation.

Inventory Control includes maintaining an economic level of investment in inventories.

4.5 SYSTEMS DEPARTMENT

4.5.1 ROLES AND RESPONSIBILITIES

The manager, systems is the sole responsible for the functioning of the system in an
orderly manner. The prime duty of the manager is to identify the application of computers in the
various fields within the company for an improved and effective communication. Now he is
assisted by computer literates who have been placed at least once in each department.

The manager ensures the smooth functioning of the programs and also rectifies the problems
encountered, if any. Any system requirement identified by the staff or the management is
reported to the manager, systems. A system study is done by the manager to assess the
requirement of the software and a feasibility report is presented to the MD for approval of
designing a system.

On confirmation, the systems manager proceeds in developing the software and implements
the same. The proper functioning of the software developed is checked, verified and necessary
modifications are done, if necessary to the entire satisfaction of the end-user and management.

DEPARTMENT PROCESS FLOW

Systems
Manager

Systems
Engineer/Program

Fig 4.5 Systems department

4.5.2 SOFTWARE TOOLS INCLUDES

The various software developed for the organization includes:

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 Invoice
Service
Production
Stores
Despatch
Payroll
Branch stock maintenance
Casting stock maintenance
Debtor/Creditor
Workers weekly wage report
Each system is explained in detail in the respective department.

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4.6 MODERN MANAGEMENT TECHNIQUES

DECCAN INDUSTRIES is an ISO 9001 company. The procedures, rules and

regulations of the various departments in the organization are driven by ISO system.
Middle level management takes utmost care to maintain the quality and standard of the
products manufactured in the company. The top level management also exerts pressure
constantly to assure and maintain optimum quality standards for the product range. The
output quality is standardized in order to maintain consistency to a certain extent in the
manufacturing cost.

Deccan Industries holds first place among, the submersible manufactures and this enables
the company to establish its stability in the market. The organization concentrates in setting up a
good HR division. Performance appraisal and performance appreciation makes the project
successful. Human relations in the organization have good standards. This helps to have the
stability of the manufacturing unit. The periodical measuring of the individuals improves the
functional properties of the individuals and this gear up the organizations performance. Top
level management reduces the gap between the employer and the employee through proper
training programmes.

4.7 RESEARCH & DESIGN

Mr.Karthik.K.V MD is responsible for R&D in the organization. Based on the customer

complaints, feedback, market situation, internal problem reports, geographical segmentation
(new markets), statutory and regulatory requirements, the need fro designing a new product is
analyzed and the report of the same is prepared.

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 The Management review meeting reviews all/one of the reports for which minutes are
noted down. The review ensures, reports are verified for adequacy and whether capabilities exist
to meet the new demands. If the demand exceeds capability, it is noted down for future action
and is filed along with the report. The MD based on the outcomes of the review decides on
Design and Development.

If the Design and Development are feasible, the attempt for the new product design is
made. This is done in two ways. One by making changes to the existing design and the other by
completely designing a new product. The former is done by change of drawings and
modifications to existing patterns which are subjected to strict document control. Worn-out
patterns and dies are also subject to the same process. The performance are verified with
performance data and validated. MD approves such validation.

The later is done by initiating a project with multi disciplinary members. One of the
members is the project manager. The other scope objectives and members and the project
manager details are entered.

Design review meets chaired by the project manager and members are held and the stages
of the project are identified with time schedule and responsibility with authority for each stage of
the project. The completed action planner is sent for MDs approval.

On MDs approval, inputs for design are collected by the members identified through
market studies. Calculations are performed and drawings are made on out of the results of
calculations. Where calculations is not needed the designers experience and creativity forms the
drawings. The designs are verified once again by recalculation.

The outputs in the form of drawings are reviewed in design review meeting. The quality
plan, work instructions and bill of material are prepared and on approval of MD, given to the
respective departments. Project manager contacts the pattern maker and provides drawings and
requirements. Clarifications are provided in consultation with the MD. Modifications are noted
down. Minutes of the meeting are documented.

Pattern and Dies are obtained and are checked for dimensions by the project manager and
approved by MD. On pattern acceptance, stores receive the pattern and die and arranges for

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sample pieces from the approved vendors. The samples obtained are checked by the QC
Engineers as per Material Inward and Receiving Inspection.

The project manager then co-ordinates with the production Engineer and arranges for
tools and fixture for machining. The machined components are inspected as per quality plan and
assembled.

Tests are carried out as per IS. Results are compared with inputs and
requirements. Sample products are produced and sent to few selected customers. Feedbacks from
those customers are collected and if found meeting the requirements, the design is validated.
Costing analysis is done to fix the price for the product.

The validated designs of the product are added in the product range. If the validation fails, the
stage responsible for the cause is identified and corrective action taken.

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 CHAPTER-4

STUDY A SPECIFIC CHALLENGE PROBLEM, METHODOLOGY,

FINDINGS, SUGGESTIONS

DEPARTMENT: PRODUCTION/OPERATIONS

PROBLEM IDENTIFIED

There is only one Service facility (department) and it is only in the head office , Coimbatore
where the service of motors and pumps are carried out through the trained employees in their
depos of various branch offices in Chennai ,Bangalore, Secunderabad and they have the
availability of spare parts for the motors and pump sets and the local employees for the
installation of motors and pumps for the customers .But in case of major problem and periodical
service of the motors which cannot be resolved in the depos are brought to the head office main
unit in Coimbatore for the services and that causes the high transportation cost for the company
where the motor is to be brought from the various branch offices Bangalore, Chennai,
Secunderabad, to Coimbatore head office and it is time consuming and customers have to wait
for quite some time to receive their serviced motors and pump sets. And after the motors have
been received for the service. The servicing job is carried out only by the five employees in the
main unit headed by Mr.Saravanan.R, the service manager. The organization is operating with
three depos at different places namely Bangalore, Chennai, and Secunderabad. The pumpsets
returned for service at these places are carried over to the main unit and the service operations
are performed only by those five employees in the service department, they are first checked
whether the motors are under warranty sets or non-warranty sets so pump sets returned back
from customers for service are identified for its warranty/out of warranty. This is done with
reference to the production number of the pump sets received and a record of the same is

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generated with a unique. Inward Entry No. by the service engineer detailing the accessories
received along with the pump sets they use a DESPATCH software system to identify the motors
and pump sets whether they are under warranty or non-warranty set.

If the pump sets are out of warranty, an estimate is prepared by the service engineer based on the
defects observed and the same is communicated to the customer for approval. On approval from
the customer the repair is carried out and is tested and recorded as per Repair Test Plan. On Test
OK, finishing is done followed by packing.

If the pump sets are of warranty sets, the repair is carried out directly. The pump sets are
dispatched after service and for every pump set going, out after service is given an out pass with
the details such as the amount received, the total amount, the balance amount, the out pass
number, the transport and so on and the sets are dispatched to the customer. The OP copy is
maintained for future reference.

And the DESPATCH software used in the organization just gives the date of manufacturing, and
from which depos the motors are from whether Bangalore, Chennai, Secunderabad or
Coimbatore itself. Where the software gives only the require information they dont give detailed
information about the defects and the repair is mainly carried out through the customers
information and manual tests.

They also use SERVICE system which again gives only the minimal information about the actual
cost of the motors and time of manufacturing ,service inward entries, out pass generation where
the details about the pump sets returned for service such as its model, the defects, the body
number, the name and address of the customer, the stage, the HP etc. are lagging. If detailed
information are provided and maintained in the system , then the future improvement on the
quality of the motors and pump sets company can be maintained by knowing in which stage of
the motor in manufacturing unit has caused more defect on the certain period of time, and which
model has received more defects over a period of time this helps them to identify which part
they lag in so the necessary steps can be taken to avoid the decrease in the quality of those
motors and pump sets.
Methodology

Research design

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The methodology used for studying the problem is qualitative method and exploratory research
is used to describe characteristics of a phenomenon which is being studied.

Method of data collection

The data is gathered through an informal discussions with employees and management of the
company by using the field notes and telephonic interviews to the other Deccan pumps private
limited depos in Chennai, Secundrabad and Bangalore and also through the general observations
while working on the field.

The Analysis

Through the response the view of all the employee in the service department regarding the
service facility software systems quite parallel where all respondants seemed to respond almost
the same and where in the case management level in Chennai, Bangalore, Secunderabad branch
offices it seemed to be an familiar and positive response about the problem that service
department available only in the head office and where they believe an investment again has to
be made in providing the new service department in the other depos around the country .

Limitations of the study

A lack of data or of reliable data likely made limiting to scope of the analysis where the size of
the sample been a significant obstacle in finding the trend trend of the problem. The limitations is
mainly because there is only one service station available for the whole manufacturing unit
throughout the country and employees on the service centre is limited only to five. And to collect
data from the other depos has eventually been time consuming and hence telephonic interviews
made to other depos in the Secundrabad, Chennai, Bangalore.

FINDINGS

Most of the time the motors and pumps under warranty or non-warranty sets are found out
manually by the service engineer with the production number if not by a DESPATCH system to

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find whether they fall under the warranty or non-warranty sets where they give only the limited
information when was it manufactured and whether they are under warranty set or non-warranty
set and they dont give any other detailed information.

They also use SERVICE system which again gives only the minimal information about the actual
cost of the motors and time of manufacturing, service inward entries, out pass generation where
the details about the pump sets returned for service such as its model, the defects, the body
number, the name and address of the customer, the stage, the HP etc. are lagging. If detailed
information are provided and maintained in the system , then the future improvement on the
quality of the motors and pump sets company can be maintained by knowing in which stage of
the motor in manufacturing unit has caused more defect on the certain period of time, and which
model has received more defects over a period of time this helps them to identify which part
they lag in so the necessary steps can be taken to avoid the decrease in the quality of those
motors and pump sets. And the replacement parts and the sub parts and its price are entered
manually by the service engineer for each and every motors and pump sets.
There is only one Service facility (department) and it is only in the head office , Coimbatore
where the service of motors and pumps are carried out through the trained employees in their
depos of various branch offices in Chennai ,Bangalore, Secunderabad and they have the
availability of spare parts for the motors and pump sets and the local employees for the
installation of motors and pumps for the customers .But in case of major problem and periodical
service of the motors which cannot be resolved in the depos are brought to the head office main
unit in Coimbatore for the services and that causes the high transportation cost for the company
where the motor is to be brought from the various branch offices Bangalore, Chennai,
Secunderabad, to Coimbatore head office and it is time consuming and customers have to wait
for quite some time to receive their serviced motors and pump sets.

Increased transportation cost from various depos to Coimbatore head office

Non-availability of required spare parts
Replacing with temporary motors in case of major problem and periodic services
Inventory cost is increased
Non-use of upgdated service software systems
System gives vague information about the motors and pumps to be serviced
Manual billing system of replaced spare parts.

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SUGGESTIONS

My suggestion is that they can use upgraded SERVICE systems like Genius manufacturing,
ability 585, SAGE, PLEX, Net suites where these updated softwares can store and get the
additional information about the service such as its model, the defects, the body number, the
name and address of the customer, the stage in which the defect has happened, the HP etc.. so
that detailed information are provided and maintained in the system , then the future
improvement on the quality of the motors and pump sets company can be maintained by
knowing in which stage of the motor in manufacturing unit has caused more defect on the certain
period of time, and which model has received more defects over a period of time this helps them
to identify which part they lag in so the necessary steps can be taken to avoid the decrease in the
quality of those motors and pump sets in the future. Also, by the use of these softwares the price
of the items replaced for the pump sets could be automatically generated as per the price details
of the various items in the stores, instead of the manual entry by the service engineer which parts
has been replaced in the motors and pump sets during the service. This could reduce the time for
the service engineers.

Backing up service with the labours for installing the motors and service and selling the
replacement parts in local depos doesnt completely fullfill the problem of the customers in
case of old motors they requirement of the spare parts are not available in the local depos easily

And no skilled labours to service those motors and hence they have to be brought to the
manufacturing unit, head office Coimbatore where the transportation cost and the waiting time
for the customers is increased so hence And they can consider in setting up another service
department along with any one of their other branch offices and depos in Secunderabad or pune
where this may reduce their transportation cost and waiting time for the customers.

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 5.LEARNINGS FROM THE ORGANIZATION

This internship project has been a great experience and helped me to learn a lot from day to day
experience at work. This experience has helped me to learn new things that are implemented
practically by the company to excel their work.

This Internship gave me the exposure to new and interesting professional situations where I came
to learn about handling the task given to me and to complete the task within the specific period
of time. With this internship I came to learn about the various department and its activities and
how the jobs are carried out in those departments.

This training also gave me real opportunities for practical application of skill and also a Hands-
on education regarding to the academics. And it greatly improved my knowledge on production
and operations department I also came to know the manufacturing process of motors and pump
sets and their stages till it is dispatched from the store.

And this also helped me in communicating with the co-workers in the organization about the
jobs carried out every day and their work experiences in the company and how they get adapted
to the organization culture in order to benefit for both the organization and the employee.

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 6. CONCLUSION
The internship in DECCAN INDUSTRIES, COIMBATORE enabled me to understand
the over all functions of various departments of medium size industry. As an intern, it was a great
opportunity to know the working environment. I have gained knowledge about the industrial and
study deal with the welfare schemes and incentives that are given to the workers to improve the
production capacity of the organization and the process of manufacturing the motors and pump
sets and its stages in detail. To conclude from this internship, I gained some practical knowledge,
regarding the functions undertaken by different departments in the company. This internship also
helped me to see the quality control and other evidence maintained by each department in the
company rather than studying theoretically. It really helped me to understand the business
activity of day-to-day nature and was a highly useful one.

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