GLOBAL COUNTRY STUDY REPORT

ON
AUTOMOBILE INDUSTRIES OF ECHJAY INDUSTRY PVT.LTD.

SHREE H.N. SHUKLA COLLEGE OF MANAGEMENT STUDIES, RAJKOT

Under the Guidance of:

Asst. Prof. Jay Goswami
In partial fulfillment of the requirement of the award for the degree of
Master of Business Administration (MBA)
Offered by:
Gujarat Technological University, Ahmadabad

Prepared by:
MBA (Semester-IV)
GPRN2017BELG75901107

Enrollment number SRN No. Name

167590592087 SRN201775905969 VAISHNAV DIVYESH
167590592088 SRN201775905970 VAISHNAV NIRALI
167590592089 SRN201775905971 VALA VAISHALI
167590592090 SRN201775905972 VASOYA DHAVAL
167590592091 SRN201775906017 VIRAMGAMA KINJAL
167590592092 SRN201775906020 VISHVKARMA JITENDRA

ACADEMIC YEAR
2016-2018

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 STUDENT’S DECLARATION

We, following students, hereby declare that the project report “AUTOMOBILE INDUSTRIES
OF ECHJAY INDUSTRIES PVT.LTD.” is a result of our own work and our indebtedness to
other work publications, references, if any, have been duly acknowledged. If we are found
guilty of copying any other report or published information and showing as our original
work, or extending plagiarism limit, I understand that we shall be liable and punishable by
GTU, which may include fail in examination, ‘repeat study and resubmission of the report’ or
any other punishment that GTU may decide.

Enrollment number Name SIGNATURE

167590592087 VAISHNAV DIVYESH
167590592088 VAISHNAV NIRALI
167590592089 VALA VAISHALI
167590592090 VASOYA DHAVAL
167590592091 VIRAMGAMA KINJAL
167590592092 VISHVKARMA JITENDRA

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 ACKNOWLEDGEMENT

It is a great experience for me to prepare a project report. I feel happiness that I present this
report before you. I thanked all those persons who are involved in the making of project.

Firstly, I would like to thank my college – H.N. SHUKLA COLLEGE OF MANAGEMENT STUDIES,
RAJKOT. In addition, my teacher ASST. PROF. JAY GOSWAMI. Who have given us complete
information regarding the project report? I prepared this project under their guidance.

I am very happy that I have chosen MBA course because, by choosing this course one
become aware of practical studies.

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 PREFACE
The practical study is more important than theatrical study. Practical studies are the part of
M.B.A. course; M.B.A. is a special professional course regarding business. Practical study
implied by Gujarat technological University in M.B.A. under this subject, the student
requires visiting one large-scale Company.

The visit is very helpful to the students because students get the practical knowledge about
the working of Company and seeing the atmosphere of business units. With the help of
industrial visit, student develop his awareness about industrial field.

As a M.B.A. student, I had an opportunity to visit, a Company. That Company was ECHJAY
INDUSTRIES PVT.LTD. It was a great experience for me. I have tried my level best to get as
possible as information about Company. I thanked all members who helped me to get
information.

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COMPANY CERTIFICATE

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Page | 6
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 INDEX
Sr. No Particular Page no

Summary 10
Company Details 13
PPR-4
Part-A Description of business
 Brief introduction of company 21
 Swot analysis of company 27
Part-B Competitive environment
 Porter five forces model 29
Part-C Product/ services 34
Export and import data analysis of the selected 38
product and services
Study on demand and supply scenario 41
Justification of importing and exporting trading in the 44
product and services

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 PPR-5

SR NO. PARTICULAR PAGE NO.

1. IMPORT / EXPORT POLICIES & PROCEDURES FOR 45
SELECTED PRODUCT / SERVICE
Import / Export Norms 46
Required Document To Be Prepared / Procedure To
Be Followed 49
Mode Of Entry In To Foreign Markets 54
Supporting Institutes To Facilitate Export / Import 59
Shipping & Packaging Norms 60
2. SUPPLY CHAIN ANALYSIS 62

PPR-6
SR.NO PARTICULAR PAGENO

PART-A MARKET ANALYSIS AND MARKETING PLAN

• Segmenting, Targeting, positioning 65
• 4Ps of market 70
• Integrated marketing 71
• Communication 71
• Customer Relationship Management 72
PART-B BREAK-EVEN ANALYSIS
• Costing of product and selling price fixation 74
PART-C PROJECTED FINANCIAL STATEMENT FOR 3 YEARS.
• Balance sheet 76
• Income statement 77
PART-D Finding and Suggestion’s 81
PART-E Conclusion 83
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 SUMMARY

Country study is generally been undertaken when any person/company wants to go global.
But before going so many aspects need to be analysed such as culture, economic conditions,
political structure etc.

As in today scenario capital is one of scare resources which cannot be invested blindly.
These factors make us aware about threats & opportunities and based on that one can take
decision properly.

Country analysis helps to know about type of people staying in that country & what are their
needs, which are areas which are yet not covered because overall success or failure depend
whether we properly understood people needs or not and even we can use our
competencies in proper direction.

There are many factors which needs to be studied & every factor has its own importance &
it can directly or indirectly affect functioning of any industry/company such as economics,
political, demographics, ethics, environment, technology etc. Change always force company
to bring something innovative which differentiate us from other competitor because we
cannot stick with one strategy otherwise our competitor will take over advantage & grab
our market.

As in today scenario “Customers are King” & if they would be satisfied with us then & then
they will purchase otherwise they will move towards other competitor products.

Political structure of every country is different. Some may be easy to follow and some may
be strict. The attitude of government also needs to be seen because many times political
uncertainty affects many businesses which come under their control. The
regulation/deregulation of policies by government can make entry barriers strong/weak.
There are various tax policy levied down & every business may some or the other way
affected by this. Certain countries have very strict norms & regulations which affect the
overall operations of any industry. They have to operate within that legal framework only.

Economic factors help to understand the overall growth of economy of that country in
terms of GDP(Gross Domestic Product), level of inflation, Inflation level prevailing in the
economy, tax policy etc.
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Any person who wants to establish their business in that country first look over such things
as they may need finance & based on the interest rate they will demand for borrowing
because if cost of borrowing increase then it will affect on revenue of the company.

To start any business in any country is not easy because in many countries without paying
reward your work cannot be carried out as in India & Sweden there is a system of paying
inducements to get your work done that’s why they are coming under list of corrupted
country. There has been significant revolution in all sectors & this is all because of
Technology has changed people lives what we were earlier & what we are there has been
significant difference in that.

The overall functioning of operations has been changed Earlier people use to send telegram
to tell about any happening which takes too much time but now you can make use of cell
phones & can send message, email to let the other person Know about recent things. The
automobile industry has a very prominent place in the globe economy.

There should be transparency in the work carried out & there should not be any malpractice
in the operations which can hurt the interest of common man. People vary from one
country to other in terms of their language, their religion etc. Every country has different
languages some may be mostly spoken some may be less. As many times language creates
barrier and also creates miscommunication.

The business which is established in any country should hire employees those who can
speak fluently the language that is widely accepted by those people. As with this reason
many companies are coming up with joint ventures. Many foreign companies are making
alliances with that domestic company of that country.

So, that they can enter directly into that country. With analysis of demographic factor any
industry/company can understand the overall behaviour of people and they will plan their
strategy keeping in mind the overall demographics of that country. The overall macro
environment helps to identify opportunities lying within that country & how one can take
advantage of this opportunity by leveraging their competencies & by knowing the
underlying threats that can affect at any point of time. This type of analysis should be done
initially so that industry /company can plan out their work in that direction & it does not
harm the overall functioning of business in that country. Many companies are incurring lot

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of cost but it results fruitful to them as they can come to know that whom to target & who
are our competitors.

Firstly, we are giving in introduction of the Belgium country and also include overview
(geographic location, currency language, religion etc.) of country.

In second chapter studying swot (strengths, weakness, opportunity, threats.) and steepled
(social, technological, environmental, economic, political, legal, ethical, demographical.)
analysis of automobile industry, in the Sweden and India country. And in third chapter
include information about the Maharashtra industry of India/Gujarat.

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 COMPANY PROFILE

Name of Company Echjay Company PVT.LTD

Address Echjay steel division Lalpari Lake,

Dudhsagar Road Rajkot (Gujarat) -360003.
Registered office 83, Bajaj Bhavan, 8th floor, Nariman point,
Mumbai (India) – 400021.
Promoter MR. HARILAL JAYCHAND DOSHI.

Establishment year 18th December 1970.

Contact +91-281-2387482 / 83 / 84 / 85 / 86

+91-281-2387847
Fax
Website www.echjayindutries.com

Email id Echjay@echjayindutries.com

No of Employees 1354 Employees

324815 square feet
Total area (7.45672635 Acre)

Nature of Company Large scale Company

Today investment 100 crores or more.

More customer satisfaction and maximized
Objective & Profit

Weekly off Saturday and additional National holiday.

And festival day.
8:00 am to 4:00 pm
Shift time 4:00 pm to 12:00 pm
12:00 pm to 8:00 am
9:00 am to 6:00 pm (General shift)

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Accounting Year 1st April to 31st March

Accounting System Double entry system

Bankers Bank of India

Axis Bank
HDFC Bank

Managing directors Mr. Vinod Doshi

Executive directors Mr. Deven Doshi

G.M (Production) E.P Castelino

G.M (Marketing) N.D. George

G.M (Finance) Mr. Bharat Gandhi

G.M (H.R.M) Mr. J.R.Kikani, V.H. Doshi

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 MISSION

Mission is to every Company has to something they have want to achieve to set the goal for
a long-term period to every Company.

Echjay Company have some mission, which they want to achieve for the long-term period.
Echjay world-class supplier of forged and machine components to auto general engineering
sector adding value to customer by using state of the art technology with relentless focus on
quality standard.

 Redefining global competitiveness through continual technology up gradation & improve

operational efficiency.

 Total customer satisfaction through quality. Delivery and cost.

 Exceeding quality norms for product and processes.

 Achieve continual growth by committed teamwork and meeting business goal.

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 VISION (2020)

Echjay Company committed to customer delight by excelling quality delivery and value for
money. Achieving continual business growth by doubling turnover “1020 by 2020 through”.

 Fostering innovation

 Strengthening employee’s engagement

 Building capacity

 New product and process development

CORE VALUE: -

 Customer first.

 Ethical and transparent business practices.

 Quality as way of life.

 Addressing energy conversation & concern in environment

 In addition, social welfare.

 Encourage empowered team working.

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 ORGANIZATIONAL CHART

Managing Director

General Manager

Marketing Production Finance Human

Department Department Department Resource

Ma Supervisor Admin
Department

Workers

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 PRODUCT’S

Echjay Company has so many varieties of product. They have near about 2800 product
currently manufacturing. They have core foreign product & Gear.

At ECHJAY, committed to providing superior forging Products tailored to meet each client’s
needs, values, and preferences, while also tenaciously protecting the best interests of each
client.

CROW WHEEL

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PRODUCTION PROCESS

Raw Material
Input

Cutting

Forging

Heat Treatment

Machining
Process

Finishing Gear

Final Inspection

Dispatch

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DESCRIPTION
OF
BUSINESS

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 BRIEF INTRODUCTION OF COMPANY

Company Name ECHJAY INDUSTRIES PVT.LTD

Address/Location Lalpari Lake Dudhsagar road rajkot-
360003 Gujarat, India.
Sub-segments Automobile
Company Website www.echjayindustries.com
Contact person at company Mr. Deven Joshi, Paras Joshi
Designation of contact person of Board of directors
company
Email id of contact person of company hrd@echjayindustries.com

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 PRODUCTS PORTFOLIO

Echjay Company has so many varieties of product. They have near about 2800 product
currently manufacturing. They have core foreign product & Gear.

At ECHJAY, committed to providing superior forging Products tailored to meet each client’s
needs, values, and preferences, while also tenaciously protecting the best interests of each
client.

Crow wheel

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 EXPORT – IMPORT STATUS

EXPORT
 Echjay industry are also can be maximum goods are delivering in the foreign country
as per demand foreign markets and also they can 70% of total exporting to the other
country like that USA, JAPAN, CHINA, all this country to maximum exporting of
automobile components. Echjay are provided automobile components to the local
customer like that Mahindra and Mahindra, Ashok Layland etc. The main motives of
Echjay industry to maximum covering the foreign markets and the maximum
customer satisfaction to all.

IMPORT
 Echjay industry are also to purchasing the raw material in the foreign country at the
lowest price and standard material

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 VALUE CHAIN ANALYSIS
Value chain analysis is a strategy tool used to analyse internal firm activities. Its goal is to
recognize, which activities are the most valuable (i.e. are the source of cost or
differentiation advantage) to the firm and which ones could be improved to provide
competitive advantage.

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 COMPANY VALUE CHAIN ANALYSIS
[PRIMARY ACTIVITY]
 INBOUND LOGISTICS
Echjay industry are mostly raw material are receiving from the external sources
highly quality and large number of material are to be taken different suppliers
dealing with them at the cheapest price and standard material are getting. Rather
than receiving material for operation and even local suppliers and importing raw
material from the foreign country.

 OPERATION
After receiving raw material from external sources and then after some king of
processing this king of material as per demanding category customer producing
product and given the final touch of the products.

 OUTBOUND LOGISTICS
In this areas involve the collection of storing, and distributed the product to the
buyer like taking the order and delivery of goods and services.

 MARKETING AND SALES

The Echjay industry no need to any kind of marketing because there already many of
the customer and they are also can be to delivering valuable products.
Echjay industry so many of biggest in the Local market customer like that Mahindra
and Mahindra, TATA Motors, TAFE, Ashok Layland, these are the well-known
customer of Echjay industry.
 SERVICES
In this stage his only build their value with the customer through satisfaction of
product and services and maintain the relationship with existing customer.

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 [SUPPORT ACTIVITY]

 PROCUREMENT (PURCHASING)
Echjay Industry is the reputed brand in the Gujarat it is a long term relationship with
the suppliers and also the good inventory management. It has always buffer and
safety stock on hand and always try to satisfied their vendor and customers.

 HUMAN RESOURCE MANAGEMENT

Echjay industry have a strong human resource management and less hierarchy and
their good relationship between the employers and employees. Human resource
management they are putting the knowledge employees and tasting them. As per
the department required to their employees to recruiting them employees right
place and right time.

 TECHNOLOGY AND DEVELOPMENT

Echjay industry changes market condition and taken the maximum to adopting the
new upgrading technology work them. They can build them great infrastructure and
technological up gradation due to some kind of reducing the cost and maximum
producing and meeting the demands. Currently Echjay have biggest machinery and
so many have CNC machine on working them his employees to maximum producing
trying to zero defects.
 INFRASTRUCTURE
Echjay Industry is strong financial position and also the strong customer social
relationship (CSR). The empowerment of the top management. And also the strong
brand, product, marketplace solution delivery and support.

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 SWOT ANALYSIS
OF
ECHJAY INDUSTRY

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STRENGTHS
 Raw material availability, low cost skilled labour, availability of technically qualified
man power.
 Echjay industry is strong brand in the domestic as well as international market.
 It has an acquisition ability and success to internationally
 Focus and investment in equipment, manpower and Time for R & D and design. It
has fewer prices in comparison to other companies. 100% on time delivery and high
standards of service. Echjay‘s employees are very much loyal in nature. Echjay
company sets run at very low voltage.
WEAKNESS:
 Because of less production capacity compare to the demand, ECHJAY COMPANY has to
reject big order as result it has to suffer opportunity loss. There is no any latest
inventory control system so, sometimes because of wrong estimation it has much or
less stock than requirement. ECHJAY COMPANY finance department is follow traditional
thinking so; there is chances of block of money or not proper use of financial resources.

OPPORTUNITIES:
 Good opportunity for increase Exports. Good support of Government because of noble
cause done by ECHJAY COMPANY. Because of good effort of R&D department many
new items will come in the market which is in work in progress.
THREATS:
 ECHJAY COMPANY network is good in India but out of India it is very limited so,
competition with global Company is very tough for it. ECHJAY COMPANY uses in
production much human resource than machine as result it bear high production cost
than other multinational Company.

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Competitive
Environments

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 PORTER FIVE FORCES MODEL’S

Porter's five forces analysis is a framework that attempts to analyse the level of competition
within an industry and business strategy development. It draws upon industrial organization
(IO) economics to derive five forces that determine the competitive intensity and therefore
attractiveness of an Industry.

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 ECHJAY INDUSTRY PVT.LTD.

THREAT OF NEW ENTRANTS

 Threat of new entrants refers to the threat new competitors pose to existing
competitors in an industry. A profitable industry will attract more competitors looking
to achieve profits.

Brand name are well-known

 Echjay industries is well known industries in Gujarat as well as some foreign country

Government policy

 Government are also doing to maximum increasing business in India and maximum
investment in India, the government also to offer foreign company to invest in India
and expanding business and due to increasing employments opportunity in other hand
government some king of benefits for newly establishing business in India. Echjay
Industry taking benefit from the Gujarat government some kind of tax deduction the
main reason of to giving the benefit to his current employees. As per the government
policy foreign company take advantages in terms of investment.

Capital requirements

 Echjay industry have enough capital to expanding their business. Recently Echjay
industry has been done to open new plant in Jiyana Unit-2. Echjay industry are famous
in Gujarat for his own special area like the automobile segments.

BARGAINING POWER OF BUYERS

 Porter's Five Forces Analysis Buyers increase competition within an industry by forcing
down prices, bargaining for improved quality or more services, and playing competitors
against each other.

PRICE SENSITIVITY

 Price is the important issue for the buyers because his pay the money and purchase the
goods so they will always try to get best qualitative product at representative of price
and the Echjay industry is also the follow this concept for buyers benefits.
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BRAND IDENTITY
 The buyers are believed in brand identity because his believe the good brand are selling
the qualitative product so is also the advantages of Echjay industries.

BUYERS ARE DIFFERENT

 It means the all the buyers are not related to the same product at same price but his
demanding the different product at different price so the Echjay industries is need to
always ready to as per the buyers demand otherwise the buyers are switching to
another brand.

COMPETITIVE RIVALRY
 The competitive pressure in an industry may manifest itself through a number of
different tactics. These can include competition based on price, advertising wars, new
products, etc. The rivalry may gain traction when a company feels pushed by a
competitor or identifies an opportunity to grow its share of the market. Whatever the
reason, the actions of one company will have an impact on competitors. In turn, they
will take action to retaliate against these actions. This has the potential of turning into a
cycle which may end up harming the industry as a whole.

BARGAINING POWER OF SUPPLIERS

 Supplier power refers to the pressure suppliers can exert on businesses by raising
prices, lowering quality, or reducing availability of their products. When analysing
supplier power, the industry analysis is being conducted from the perspective of the
industry firms, in this case referred to as the buyers.

Substitutes

 Echjay industry have available so many substitute in that case of when there are
suppliers more demand there material cost with the lowest quality of their material,
the firm cannot be accepting their lowest quality material in that case firm are to be
use there substitute material using their production process in terms of same character
products.

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Supplier’s product differentiated

 Suppliers product differentiated they have built in switching costs. It means the
preferences are change continuously so the sometimes high switching cost or some
time low switching cost is created.
THREAT OF SUBSTITUTE
 The threat of substitute’s definition is the availability of a product that the customer
can purchase instead of the industry’s product. A substitute product is a product from
another industry that offers similar benefits to the customer as the product produced
by the firms within the industry.

Substitute product available in the market

 Echjay industry manufacturing automobile parts (Components) there is the so many
substitute automobile parts available in the market but this kind of automobile parts to
offer at the standard quality, in the market available auto components not surety in
terms of quality.

Substitute product is the cheaper than industry product.

 Echjay industry are selling their product at the standard quality and high cost but so
many substitute product available in the local market, so the rich class people that who
are better standard of living they preferred that quality.
 In some those who are not they cannot prefers at their high cost they can be also
prefers their substitute product.

Substitute product quality is inferior to industry product quality

 In this the Echjay industry is the brand and sell the standard auto components and the
using high quality of material to made the auto components and another local brand
are using the cheap raw material for made the auto components.

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PRODUCT

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BRIEF ABOUT PRODUCTS

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 A transmission is a machine in a power transmission system, which provides controlled
application of the power. Often the term transmission refers simply to the gearbox that
uses gears and gear trains to provide speed and torque conversions from a rotating
power source to another device.
 The most common use is in motor vehicles, where the transmission adapts the output of
the internal combustion engine to the drive wheels. Such engines need to operate at a
relatively high rotational speed, which is inappropriate for starting, stopping, and slower
travel. The transmission reduces the higher engine speed to the slower wheel speed,
increasing torque in the process. Transmissions are also used on pedal bicycles, fixed
machines, and where different rotational speeds and torques are adapted.

 In motor vehicles, the transmission generally is connected to the engine crankshaft via a
flywheel or clutch or fluid coupling, partly because internal combustion engines cannot
run below a particular speed. The output of the transmission is transmitted via
the driveshaft to one or more differentials, which drives the wheels. While a differential
may also provide gear reduction, its primary purpose is to permit the wheels at either
end of an axle to rotate at different speeds (essential to avoid wheel slippage on turns)
as it changes the direction of rotation.

 Conventional gear/belt transmissions are not the only mechanism for speed/torque
adaptation. Alternative mechanisms include torque converters and power
transformation (e.g. diesel-electric transmission and hydraulic drive system). Hybrid
configurations also exist. Automatic transmissions use a valve body to shift gears using
fluid pressures in conjunction with an ecm.

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 MANUFACTURING PROCESS OF GEAR
Gear manufacturing refers to the making of gears. Gears can be manufactured by a variety
of processes, including casting, forging, extrusion, powder metallurgy, and blanking. As a
general rule, however, machining is applied to achieve the final dimensions, shape and
surface finish in the gear. The initial operations that produce a semi finishing part ready for
gear machining as referred to as blanking operations; the starting product in gear machining
is called a gear blank.

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 EXPORT AND IMPORT DATA ANALYSIS
OF THE SELECTED PRODUCT AND SERVICES

YEAR EXPORTING PRODUCT EXPORTED QUANTITY RATE USD TOTAL VALUE

(USD)
2015 UNITED STATES C1546 20"150LBS WELD NECK 2373 306.40 727100.3
OF AMERICA RF STD.
2015 UNITED STATES J-119 CARBON STEEL FORGED 2030 318.04 645636.2
OF AMERICA FLANGES MACHINED GRADE:
SA105-01 VARIOUS.
2015 ITALY C-1506 QT 12’’ CL. 150 PART 3000 320 348602.3
NO.7KDA121135 80
2015 NETHERLAND C1509 ANTI-RATTLE RING-207 3500 350 1225000
2015 NETHERLAND A361 P.O 10301212-SPHERICAL 3450 400 1380000
RING-273

EXPORT OF ECHJAY INDUSTRY PVT.LTD.

Value in (USD)
1600000

1400000
1380000
1200000
1225000

1000000

800000
727100.3
600000 645636.2

400000
348602.3
200000

0
UNITED STATES OF UNITED STATES OF ITALY NETHERLAND NETHERLAND
AMERICA AMERICA
2015 2015 2015 2015 2015

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 IMPORT DATA OF ECHJAY INDUSTRIES PVT.LTD.

YEAR IMPORTING PRODUCT IMPORTED QUANTITY RATE TOTAL VALUE

(USD) (USD)
2015 JAPAN “AMADA’’ BANDSAW BLADE 1200 60 72000
SGLB 32X
2015 JAPAN “AMADA” BANDSAW BLADE 1000 55 55000
SGLB 32X
2015 JAPAN AMADA BANDSAW BLADE 800 45 36000
DIMENSION (CM) L W H C/NO ½
207 207 155 C/NO 2/2 244
2015 ROMANIA CONICAL GEAR PART NO. 500 54 27000
1031.010.027
2015 ROMANIA CONICAL GEAR PART 400 40 16000
NO.1041.120.009

IMPORT OF ECHJAY INDUSTRY PVT.LTD.

Value in (USD)
80000

70000

60000

50000

40000

30000

20000

10000

0
JAPAN JAPAN JAPAN ROMANIA ROMANIA
2015 2015 2015 2015 2015

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 EXPLANATION

 Here is the above graphically showing statement Echjay industry are also to be outer
connected with the many of the country like that United states of America, Italy, Japan,
Romania, and Netherland all of this country between India doing business in the
automobile segments.
 Echjay industry they are exporting as well as importing finished goods of automobile
heavy components and some king of equipment and technology can be imported that
he must be required due to reducing cost and maximise production. It is also Echjay
doing maximum producing and exporting to goods so many of country that he must be
required.
 Now a days Echjay industry has importing minimum and maximum exporting aim they
can doing maximum effort make in India concept.

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 THEORY OF DEMAND AND SUPPLY SENARIO

The theory of demand and supply is refers to one of the most fundamental concepts of
economics and it is the backbone of a market economy. The people is always is needing that
who are desired to its needs and satisfied them.

DEMAND:-
Demands Refers to how much (quantity) of a product or service is desired by buyers. The
quantity demanded is the amount of a product people are willing to buy at a certain price;
the relationship between price and quantity demanded is known as the demand
relationship.

SUPPLY:-
Supply refers to how much the market can offer. The quantity supplied refers to the amount
of a certain good producers are willing to supply when receiving a certain price. The
correlation between price and how much of a good or service is supplied to the market is
known as the supply relationship. Price, therefore, is a reflection of supply and demand.

Some of the time demand can’t be meeting them because it cannot be efficiency to meet
there demand. On other hand suppliers to maximum to supply goods and there meeting
demand.

INDIA

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 AUTOMOBILE MARKETS

NUMBER OF AUTOMOBILE SOLD IN INDIA (MILLION) AMOUNT (MILLION)

22
20 20
18 18
17

2012 2013 2014 2015 2016 2017

GLOBAL AUTOMOBILE MARKETS

90
79.56
80 77.29
71.18 72.61
70

60 53.74
50
39.2
40

30

20

10

0
2012 2013 2014 2015 2015 2017

GLOBAL CAR SELLS IN MILLION AMOUNT (MILLION)

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Explanation:-
 Demand for the automobile market has increased in the past and is expected to grow in
the near future majority due to rising demand from the developing nations.

 In developing country (India) has been number of automobile segments increasing and
also demanding, in India the standard of living expected to growing as per the
demanding people who wants to expected to fulfilled them in automobile segments.
This market is also growing in the developing country.

 Manufacturer they can also to meeting there demand but some case manufacturer
cannot be meeting there at the same time large number of demanding vehicle.

Page | 43
 JUSTIFICATION OF IMPORTING AND EXPORTING
TRADING IN THE PRODUCT AND SERVICES

Exporting:

Above the data analysis the globally demand of automobile is continuously increase and
also the constant changes in technology change and some innovation adding and high
quality vehicle as well as its components. Foreign country they are demanding there high
quality automobile component and it is the best opportunity for Echjay industry to export
their product in another country and get the advantages of foreign market.

Importing:

Now the India start the concepts of making India all the Indian company’s try to produce the
product in their company so the sometimes require the raw –materials which are available
at outside the country so need the importing and it is also the benefited to the company for
create a monopolistic market.

Conclusion:
Above analysis is the best opportunity for the Echjay industry to export their product and
import raw-materials to another country and grab the opportunity for expand the business
and enter to foreign market easily.

Page | 44
Page | 45
 IMPORT EXPORT NORMS

IMPORTER-EXPORTER CODE NUMBER

No import or export shall be made by any person without an Importer Exporter Code (IEC)
number unless specifically exempted. An Importer Exporter code (IEC) number shall be
granted on application by the competent authority in accordance with the procedure.

 CANALIZED GOODS

Any goods, the Import or export of which is canalized, may be imported or exported by the
canalizing agency specified in the ITC (HC). The director general of foreign trade may,
however, grant a license to any other person to import or export any canalized goods.

 TERMS AND CONDITIONS OF LICENCE

Every license shall valid for the period of validity specified in the license and shall contain
such terms and conditions as may be specified by the licensing authority which may include:

 Quantity, description and value of the goods

 Actual user condition
 The minimum export price.

 REGISTRATION-CUM-MEMBERSHIP CERTIFICATE

Any person applying for (1) a license to import / export, (except items listed as restricted
items in ITC(HS) or (2) any other benefit or concession under this policy shall be required to
furnish registration-cum-membership certificate(RCMC)granted by the competent authority
in accordance with the procedure.

INTERPRETATION OF POLICY

If any question or doubt arises whether a license has been issued in accordance with this
policy or if any question or doubt arises touching upon the scope and content of a license,
the same shall be referred to the director general of foreign trade whose decision there on
shall be final and binding.

Page | 46
PRIVATE/PUBLIC BONDED WAREHOUSES FOR IMPORTS

Private/public bonded warehouses may be set up in the domestic tariff area as per the
terms and conditions of notification issued by department of revenue. Any person may
import goods except prohibited items, arms and ammunition and hazardous waste and
chemicals and warehouse them in such private/public bonded warehouses. Such goods may
be cleared for home consumption in accordance with the provisions of this policy and
against license, wherever required. Customs duty as applicable shall be paid at the time of
clearance of such goods. If such goods are not cleared for home consumption within a
period of one year or such extended period as the custom authorities may permit, the
importer of such goods shall re-export the goods.

TRADE WITH NEIGHBOURING COUNTRIES

The director general of foreign trade may issue, from time to time, such instructions or
frame such schemes as may be required to promote trade and strengthen economic ties
with neighbouring countries.

PENALTY

If a license holder violates any condition of the license or fails to fulfil the export obligation,
he shall be liable to action in accordance with the act, the rules and orders made there
under, the policy and any other law for the time being in force.

FREE MOVEMENT OF EXPORT GOODS

Consignment of items allowed for exports shall not be withheld/delayed for any reason by
any agency of the central/state government. In case of any doubt, the authorities concerned
may ask for an undertaking from the exporter.

TRANSIT FACILITY

Transit of goods through India from or to countries adjacent to India shall be regulated in
accordance with the treaty between India and those countries.

Page | 47
THIRD PARTY EXPORTS

A license holder may export directly or through third parties and discharge the export
obligation.

GREEN CARD

All status holder and manufacturer exporter exporting more than 50% of their production,
subject to a minimum turnover of Rs. 1 crore in preceding year and service providers
rendering services in free foreign exchange for more than 50% of their services turnover,
subject to a minimum value of Rs. 35 lakhs in free foreign exchange in the preceding year,
shall be issued a green card by director general of the foreign trade. This card will entitle the
holder to the following facilities:

 Automatic custom clearance for exports.

 Automatic customs clearance for imports related to exports.
 LUT facility for duty free imports and any such facility as may be specified from time to
time.

ELECTRONIC DATA INTERCHANGE

In an attempt to speed up the transactions and to bring about transparency in various

activities related to exports, electronic data interchange would be encouraged. Applications
received electronically shall be cleared within 24 hours.

Page | 48
 REQUIRED DOCUMENTS

GENERAL PROVISIONS:

 ENTRY
Entry in relation to good means entry made in Bill of Entry, Shipping Bill or Bill of
export. In case of import by post, label or declaration accompanying goods is ‘entry.’
 LOADING AND UNLOADING AT SPECIFIED PLACES ONLY
Imported goods can be unloaded only at specified places. Goods can be exported
only from specified places.
 COMPUTERIZATION OF CUSTOMS PROCEDURES
Customs procedures are largely computerized. Most of documents have to be
E-filed.

 BOAT NOTES
Boat notes are used for transferring small cargo from ship to shore’ or from shore to
ship, without berthing the ship.
 TRANSSHIPMENT OF GOODS
Goods can be transhipped from one conveyance to other after following required
procedure. Such transhipment may be to any major part or airport in India. The
goods can be transhipped to any other customs station in India if custom officer is
satisfied that the goods are bonafide intended for transhipment to any customs
station. The facility is available at all customs ports and Inland Container Depots
(ICDs).

Page | 49
 EXPORT PROCEDURE

 ENTRY OUTWARD
Loading in conveyance can start after ‘Entry outward’ is given by customs officer.
 EXPORT MANIFEST/EXPORT REPORT
Exporter has to be obtaining IEC (IMPORTER EXPORTER CODE) number from DGFT
(Directorate General of foreign Trade) is advance. He should be registered with
Export promotion council if he intends to claim export benefits.
 THIRD PARTY EXPORTS
Exports can be by manufacturer himself or third party (i.e. by exporter on behalf of
another). Merchant exporter means a person engaged in trading activity and
exporting or intending to export goods.
 REGISTRATION OF DOCUMENTS UNDER EXPORT PROMOTION SCHEME
Advance authorization, DEPB (Duty Entitlement pass book) etc. should be registered
if exports are under Export Promotion Scheme.
 SHIPPING BILL
Export is required to submit Shipping Bill with required documents for obtaining
permission to export. There are five forms:
 Shipping Bill for export of goods under claim for duty drawback –these should be
in Green colour
 Shipping Bill for export of dutiable goods – this should be yellow colour
 Shipping bill for export of duty free goods – it should be white colour
 Shipping bill for export of duty free goods ex-bond – i.e. from bonded store room

– it should be pink colour

 Shipping Bill for export under DEPB scheme – Blue colour.

 FEMA FORMALITIES

GR (guaranteed Remittance)/SDF (statutory declaration form)/ softex form (under

FEMA) is required to be submitted.

 NOTING, ASSESSMENT, EXAMINATION

Page | 50
 The shipping bill is noted, goods are assessed and examined. Export duty is paid, if
applicable.

 CERTIFICATION OF DOCUMENTS FOR EXPORT INCENTIVES

If export is under export incentives, relevant documents are checked and certified.
Then proof of export is obtained on ARE-1.

 LET EXPORT ORDER

Conveyance can leave only after ‘let export’ order is issued.

Page | 51
 IMPORT PROCEDURES

E-FILLING OF DOCUMENTS

Goods should arrive at customs port/airport only. Most of customs procedures are
computerized. E-filling of documents is required.

IMPORT MANIFEST OR IMPORT REPORT

‘Person in charge of conveyance’ is required to submit import manifest or import

report.

ENTRY INWARDS

Goods can be unloaded only after grant of ‘Entry Inwards’.

RISK MANAGEMENT SYSTEM

Self-assessment on basis of ‘risk management system’ (RMS) has been introduced in

respect of specified goods and importers.

BILL OF ENTRY FOR HOME CONSUMPTION ON PAYMENT OF CUSTOM

DUTY

Importer has to sub Importer has to submit Bill of Entry giving details of goods being
imported, along with required documents. Electronic submission of documents is done
in major ports. White Bill of Entry is for home consumption. Imported goods are
cleared on payment of customs duty.

BILL OF ENTRY FOR WAREHOUSING

Yellow Bill of Entry is for warehousing. It is also termed as ‘into bond Bill of Entry’ as
bond is executed. Duty is not paid and imported goods are transferred to warehouse
where these are stored. Green Bill of Entry is for clearance from warehouse on
payment of customs duty. It is for ex-bond clearance.

BOND

Bond is executed if required if assessment is provisional (PD bond) or

confessional rate of customs duty is subject to certain post import conditions.
Page | 52
OUT OF CUSTOMS CHARGE ORDER
Goods can be cleared outside port after ‘Out of Customs Charge’ order is issued by
customs officer. After that, port dues, demurrage and other charges are paid and
goods are cleared.

DEMURRAGE IF CLEARANCE FROM PORT DELAYED

Demurrage is payable if goods are not cleared from port/airport within three days.
Goods can be disposed of if not cleared from port within 30 days.

Page | 53
 MODES OF ENTRY IN FOREIGN MARKET

DIRECT EXPORT

Direct exports represent the most basic mode of exporting made by a (holding) company,
capitalizing on economies of scale in production concentrated in the home country and
affording better control over distribution. Direct export works the best if the volumes are
small. Large volumes of export may trigger protectionism. The main characteristic of direct
exports entry model is that there are no intermediaries. Passive exports represent the
treating and filling overseas orders like domestic orders.

SALES REPRESENTATIVES

Sales representatives represent foreign suppliers/manufacturers in their local markets for

an established commission on sales. Provide support services to a manufacturer regarding
local advertising, local sales presentations, customs clearance formalities, legal
requirements. Manufacturers of highly technical services or products such as production
machinery, benefit the most from sales representation.

IMPORTING DISTRIBUTORS

Importing distributors purchase product in their own right and resell it in their local markets
to wholesalers, retailers, or both. Importing distributors are a good market entry strategy
for products that are carried in inventory, such as toys, appliances, prepared food.

Page | 54
INDIRECT EXPORT

Indirect export is the process of exporting through domestically based export

intermediaries. The exporter has no control over its products in the foreign market.

Export trading
companies (ETCs)

Export
management
companies (EMCs)

Export merchants

INDIRECT Confirming houses

EXPORT

Non confirming
purchasing agents

Licensing

Franchising

Page | 55
EXPORT TRADING COMPANIES (ETCS)

These provide support services of the entire export process for one or more suppliers.
Attractive to suppliers that are not familiar with exporting as ETCs usually perform all the
necessary work: locate overseas trading partners, present the product, quote on specific
enquiries, etc.

EXPORT MANAGEMENT COMPANIES (EMCS)

These are similar to ETCs in the way that they usually export for producers. Unlike ETCs,
they rarely take on export credit risks and carry one type of product, not representing
competing ones. Usually, EMCs trade on behalf of their suppliers as their export
departments.

EXPORT MERCHANTS

Export merchants are wholesale companies that buy unpackaged products from
suppliers/manufacturers for resale overseas under their own brand names. The advantage
of export merchants is promotion. One of the disadvantages for using export merchants
result in presence of identical products under different brand names and pricing on the
market, meaning that export merchant’s activities may hinder manufacturer’s exporting
efforts.

CONFIRMING HOUSES

These are intermediate sellers that work for foreign buyers. They receive the product
requirements from their clients, negotiate purchases, make delivery, and pay the suppliers /
manufacturers. An opportunity here arises in the fact that if the client likes the product it
may become a trade representative. A potential disadvantage includes supplier’s
unawareness and lack of control over what a confirming house does with their product.

NONCONFORMING PURCHASING AGENTS

These are similar to confirming houses with the exception that they do not pay the suppliers
directly – payments take place between a supplier/manufacturer and a foreign buyer.

Page | 56
LICENSING

An international licensing agreement allows foreign firms, either exclusively or non-

exclusively to manufacture a proprietor’s product for a fixed term in a specific market. In
this foreign market entry mode, a licensor in the home country makes limited rights or
resources available to the licensee in the host country. The rights or resources may include
patents, trademarks, managerial skills, technology, and others that can make it possible for
the licensee to manufacture and sell in the host country a similar product to the one the
licensor has already been producing and selling in the home country without requiring the
licensor to open a new operation overseas. The licensor earnings usually take forms of one
time payments, technical fees and royalty payments usually calculated as a percentage of
sales.

FRANCHISING

The franchising system can be defined as: "A system in which semi-independent business
owners (franchisees) pay fees and royalties to a parent company (franchiser) in return for
the right to become identified with its trademark, to sell its products or services, and often
to use its business format and system."

ADVANTAGES

 Fast market access.

 Concentration of resources towards production.
 Export management is outsourced, alleviating pressure from management team.
 No direct handle of export processes.

DISADVANTAGES

 Little or no control over distribution, sales, marketing, etc. as opposed to direct

exporting.
 Wrong choice of distributor, and by effect, market, may lead to inadequate market
feedback affecting the international success of the company.

Page | 57
 CONCLUSION

Those companies that seriously consider international markets as a crucial part of their
success would likely consider direct exporting as the market entry tool. Here ECHJAY
INDUSTRIES.PVT.LTD. Has use the direct export in the foreign entry modes.

Page | 58
 SUPPORTING INSTITUTIONS TO FACILITATE EXPORTS

 Export Credit Guarantee Corporation (ECGC)

 Exim Bank of India
 India Trade Promotion Organization (ITPO)
 Export Inspection Council
 Indian Institute of Packaging (IIP)

SUPPORTING EXPORT / IMPORT FINANCING

INDIA BELGIUM
State bank of India Argenta (Antwerp)
Bank of Baroda BNP Paribas Fortis
Axis bank AXA bank
IDBI bank KBC bank (second largest)
Bank of India Delen private bank

Page | 59
 SHIPPING & PACKAGING

When shipping a product overseas, the exporter must be aware of packing, labelling, and
documentation. It is important that exporters ensure that the merchandise is:

 Packed correctly so that it arrives in good condition.

 Labelled correctly to ensure that the goods are handled properly and arrive on time at
the right place.
 Documented correctly to meet U.S. and foreign government requirements, as well as
proper collection standards.

PACKAGING

All packaged items must meet the following requirements at a minimum.

 Be secured in cartoon or crate with bracing & blacking in place.

 Never exceed the recommended weight for a package or skid.
 Have all internal and external documentation in place.
 Have shock & vibration protection in place.
 Have the proper markings in accordance with section 8 on the shipping container for
domestic or international shipments.
 Have color-coded packaging items that are attached to the unit or accessories that
 Can be removed and discarded (Yellow is universal colour).
 Have the unit protected against corrosion (preservation)?
 Have proper handling/cautionary labels attached.
 Be securely closed (all containers).
 Have accessories properly packaged.
 Be protected from weather/corrosion and human negligence.
 Be protected from moisture/humidity.

LABELING

A label must be affixed either to the top and/or front surface of the secondary packages. It
should indicate the type of vaccine, the name of the manufacturer, presentation, batch
number, and date of manufacture, date of expiry, quantity and storage conditions.

Page | 60
Product can require many markings for shipment

 Material list item number (MLI), if applicable

 Country origin (Sweden)
 Container gross weight lbs. (add kg for international shipment)
 Container dimensions’ inches (add cm for international shipment)
 Customer name
 Serial number, if applicable
 Description of contents
 Container case or package number
 Storage / maintenance requirements (indoor or outdoor)

DOCUMENTATION

Exporters should seriously consider having the freight forwarder handle the formidable
amount of documentation that exporting requires as forwarders are specialists in this
process. The following documents are commonly used in exporting; but which of them are
necessary in a particular transaction depends on the requirements of the European
government and the government of the importing country. The following original
documents must accompany the consignment when it is shipped, and a copy of these must
also be placed in the box numbered “one”:

 airway bill, commercial invoice

 supplier’s invoice
 Packing list etc.

Page | 61
Page | 62
 SUPPLY CHAIN ANALYSIS

“Supply of distribution for a product is the route takes the title of the goods as they
move from producer to the ultimate customer or industrial user. “Channel of
distribution is the movement of goods and services from producer to consumer. A
manufacturer must establish a system that keeps products moving steadily from the
factory to the customer. Such a system is called a marketing channel or a channel of
distribution. Before choosing a foreign agent or distribution, the exporter should check,
whether the foreign country imposes any legal e.g. the agent must be a national of that
foreign country. The exporter should discuss with the agent or distributor the channels
of distribution that would be used to market the products. The channel of distribution of
ECHJAY INDUSTRIES PVT.LTD. Is not so complex because they generally supply goods
directly to consumer or through agent.

ECHJAY INDUSTRIES PVT.LTD.

CONSUMER

ECHJAY INDUSTRIES PVT. LTD.

AGENT

CONSUMER

Page | 63
MARKET ANALYSIS
AND
MARKETING PLAN

Page | 64
MARKET SEGMENTATION

Page | 65
 SEGMENTATION OF AUTOMOBILE IN INDIA

DOMESTIC AUTOMOBILE MARKET

As per statistics launched by Society of Indian Automobile Manufacturers (SIAM), the
passenger car transactions in domestic market have surged to 145,905 units in January 2010
against the 2009 sales of 110,300 units. This indirectly refers to the 32.28% growth in the
domestic car sales. In January 2010, the total sales of automobiles grew to 1,114,156 units
as compared to the previous fiscal year's 768,698 unit’s sales.
GEOGRAPHICAL SEGMENTATION
Geographical segmentation is one of the most important basis of segmentation of the
automobile sector, especially in large sized countries like India, where the conditions in
different regions.

Commercial vehicle companies would segment the market on the basis of concentration of
industries in different regions. Luxury carmakers would definitely target the metropolitan
regions for the sale of their cars, whereas small carmakers would also take into account
developing cities and townships into account during the process of segmentation of their
products.

DEMOGRAPHIC SEGMENTATION
Another important basis for segmentation of the automobile sector is demographic
segmentation. Demographic segmentation provides a base marketing of products according
to the income, status, age, etc.

Manufactures of small cars like Nano would primarily focus on the segment of the people
belonging to the middle class and here comes lies the demographic segmentation. On the
other hand, luxury car manufacturers would focus more on the high-income segment.

More and more manufactures are coming with automobiles for women, which have special
features and are easy to use.

According to the age of the target market group, automobile manufacturers would come up
with different colour variants, for instance bright and flashy colours for the young and vice
versa.

Page | 66
PSYCHOGRAPHIC SEGMENTATION
Based on psychological segmentation, automobile manufacturers come up with different
variant of the models of their products. This has been largely seen in the case of cars, where
companies generally come up with two or three variants of the same model, and it has been
observed by industry analysts that the variant of the medium variant of the model sells the
most.

Lines such as “Men are Back” (used by Maruti Suzuki for the launch of a new car) and
“Definitely Male” (used by Bajaj for a popular bike) target a particular category of individuals
and help to increase sales and popularity in that segment.

Manufacturers of luxury cars like Ferrari, Porsche, etc. target the section of the society with
a large disposable income and high status, and this can be achieved by psychological
segmentation.

BEHAVIOURAL SEGMENTATION
As mentioned earlier, behavioural segmentation is done on the basis of the benefits sought,
loyalty status, etc.

This is another important means for segmentation in the automobile sector, and taking yet
again the example of a car, Daimler, the manufacturer of luxury car May Bach, customizes
the cars according to the needs and requirements of the products.

Page | 67
 TARGETING

The Echjay target all automobile in India and mostly target A direct marketing data audience
is defined as a list of individuals (and their contact
information) who share a specific set of attributes or
activities that have been collected and codified into
a database that can be re-sold for marketing
purposes, with the proper consents from the data
subjects to allow for this use. Contact methods
include email, direct mail, telephone and SMS.

Industry Partnership audiences are consumers

sourced by partnerships with auto dealerships,
warranty companies, national car clubs, state records, auto after-market, and insurance
companies.

Owners have been sourced by traditional direct mail and online survey data collection and
may be interested in purchasing a vehicle in the near future. These consumers have self-
reported information regarding their vehicle of interest’s make and model, insurance
renewal dates, age, gender, income, and other lifestyle factors.

Industry Partnership audiences are consumers sourced by partnerships with auto

dealerships, warranty companies, national car clubs, state records, auto after-market, and
insurance companies.

Compiled Sources are comprised of data from a broad range of consumer sources such as
magazine subscriptions, verified consumer transactions, responses to email advertisements,
travel sites, financial products and services, and other proprietary data sources. Extensive
demographic characteristics are typically available.

Page | 68
 POSITIONING

Positioning Of Echjay in India and Belgium

The ECHJAY is follow different types of positioning in market

 Using product characteristics or customer benefits as a positioning strategy.

 Pricing as a positioning strategy. A product is expensive will be a quality product
whereas product that is cheap is lower in quality. If we look at this price quality
approach it is important and is largely used in product positioning.

 Positioning based on competitive comparisons the objective of competitive

compressions is to reposition a competitor’s products in the mind of consumers.

BELGIUM

In Belgium the ADDAX MOTOR is the famous automobile industry for auto spare part so the
ECHJAY is try to make space in Belgium need to some uniqueness in the product. Also the
change in price and cost level as compare to India Belgium people.

Page | 69
 4P’S OF MARKET

The 4ps are divided in price, place, promotion and product.

The Echjay is the domestic Indian brand so their 4ps are related to the only Indian market
but now we are doing export of automobile India to Belgium so we need to comparison of
Echjay and Belgium famous international brand ADDAX MOTOR for the knowledge about
Belgium market and price of product and also the aware about customer preferences.

COMPARISON OF 4PS OF MARKETING MIX

4PS Addax Motor Echjay PVT.LTD.

PRICE Addax Motor provide high quality
Automotive parts as compare to
quality.
PLACE Addax Motor is strong international
brand.
PROMOTION Addax Motor they are creating new
innovative electricity Motors aim to
produce and promoting in the special
events in Belgium.
PRODUCT Crown Wheel, Pinion blanks, and
electric motors.
Echjay Provide high quality with high
price.
Echjay is strong Market in domestic
and International brand.
No, need to any kind of product
promotion because they are well
known in domestic and international
market.
Echjay produces Crown wheel,
pinion blanks, rolled rings, machine
components, flanges, forged discs,
railway tiers, other forging.

Page | 70
 INTEGRATED MARKETING COMMUNICATION

In today's competitive marketplace, companies

and professionals should ensure that messages
reach consumers about products and services
are clear, concise and integrated.

The use of integrated communication correctly

allows the company to leverage the impact of
communications on your audience, and present
results for more effective communication. The marketing communication is often used by
organizations to inform, persuade and remind consumers of their products and brands. This
has two functions, "a show is clearly the benefits of the product, and the other is to create
an aura of enchantment."

The main strategic goals of this process are to create awareness, build positive images,
identify potential customers, build relationships with channel and retain customers.

DIVIDE THE COMMUNICATIONS MIX INTO THREE GROUPS:

 Traditional: advertising, publicity, sponsorship, sales promotion, direct marketing and

personal selling.

 Complementary: Product placement, cooperative actions with trade, digital

marketing, events, merchandising, brochures/catalogs, relationship marketing.

 Innovative: advertisements, viral marketing, buzz marketing.

 The use of integrated marketing communications (IMC) correctly allows leverage the
impact of communication on the audience, as it represents a system of management,
coordination and integration of the elements of communication, balancing the use of
communication tools.

Page | 71
 CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) consists of the processes a company uses to

track and organize its contacts with its current and prospective customers. CRM software is
used to support these processes; information about customers and customer interactions
can be entered, stored and accessed by employees in different company departments.
Typical CRM goals are to improve services provided to customers, and to use customer
contact information for targeted marketing.

The objectives of a CRM strategy must consider a company’s specific situation and its
customers' needs and expectations.

Information gained through CRM initiatives can support the development of marketing
strategy by developing the organization's knowledge in areas such as identifying customer
segments, improving customer retention, improving product offerings (by better
understanding customer needs), and by identifying the organization's most profitable
customers

AIMS OF CRM

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make
the customer climb up the ladder of loyalty. The company first tries to determine who are
likely prospects i.e. the people who have a strong potential interest in the product and
ability to pay for it. The company hopes to convert many of its qualified prospect into first

Page | 72
time customers and then to convert those first time customers into repeat customers. Then
the company tries to convert these repeat customers into clients – they are those people
who buy only from the company in the relevant product categories. The next challenge for
the company is to convert these clients into advocates. Advocates are those clients who
praise the company and encourage others to buy from it.

EIGHT WAYS TO KEEP CUSTOMERS FOR LIFE

1. Every part of the company’s marketing effort should be geared towards building
lifetime relationships.
2. People want to do business with friendly people. To have effective relations a
friendly attitude must permeate in the organization.
3. Information technology developments should be positively used to serve the
customers.
4. The company should always be flexible to bend its rules and procedures in the
client’s favour.
5. The company should communicate with its customers even when it is not trying to
sell something.
6. The company can communicate and develop stronger customer bonding by
providing financial and social benefits.

Page | 73
COST OF PRODUCT

Page | 74
PROJECTED FINANCIAL
STATEMENT NEXT III-
YEAR

Page | 75
 PROJECTED BALANCE SHEET OF ECHJAY INDUSTR (Amount in Cr.)

Particular Year '21 Year'20 Year'19 Year '18

Sources Of Funds
Total Share Capital 11.20 11.20 11.20 11.20
Equity Share Capital 11.20 11.20 11.20 11.20
Reserves 169.49 143.40 109.86 83.27
Net worth 180.69 154.60 121.06 94.47
Total Liabilities 180.69 154.60 121.06 94.47
Application Of Funds
Gross Block 131.51 124.31 114.36 81.17
Less: Accum. Depreciation 44.36 39.71 34.92 28.47
Net Block 87.15 84.60 79.44 52.70
Capital Work in Progress 3.16 0.00 0.48 0.63
Investments 7.81 0.99 0.99 1.23
Inventories 36.23 34.72 26.00 23.37
Sundry Debtors 47.77 76.35 32.25 13.07
Cash and Bank Balance 57.10 12.82 27.36 45.15
Total Current Assets 141.10 123.89 85.61 81.59
Loans and Advances 6.27 9.16 10.92 8.46
Total CA, Loans & Advances 147.37 133.05 96.53 90.05
Current Liabilities 57.48 54.89 42.41 42.06
Provisions 7.31 12.02 13.95 8.07
Total CL & Provisions 64.79 66.91 56.36 50.13
Net Current Assets 82.58 66.14 40.17 39.92
Total Assets 180.70 151.73 121.08 94.48

Page | 76
 INCOME STATEMENT OF ECHJAY INDUSTRY
Amount in Cr.
Particular Year'21 Year'20 Year'19 Year'18

Income
Sales Turnover 595.58 537.82 480.43
599.00
Excise Duty 60.20 64.54 45.02 50.30
Net Sales 538.8 531.04 492.80 430.13
Other Income 2.52 1.31 7.51 2.92
Stock Adjustments 0.86 3.21 1.38 -1.26
Total Income 542.18 535.56 501.69 431.79
Expenditure
Raw Materials 392.45 388.08 373.59 330.39
Power & Fuel Cost 2.78 3.14 2.90 2.70
Employee Cost 39.04 37.34 32.36 27.36
Selling and Admin Expenses 6.83 8.77 0.00 0.00
Miscellaneous Expenses 21.14 20.63 27.41 23.03
Total Expenses 462.24 457.96 436.26 383.48
Operating Profit 79.94 76.29 57.92 45.39
Interest 0.45 0.78 0.59 0.35
PBDT 79.49 75.51 57.33 45.04
Depreciation 5.15 5.29 5.58 5.21
Profit Before Tax 74.34 70.22 51.75 39.83
Tax 10.20 11.29 10.58 9.58
Reported Net Profit 64.14 58.93 41.17 30.25

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 BREAK EVEN ANALYSIS

Amount in Cr.
Particular Year-2019 Year-2018 Changes
Sales 537.82 480.43 57.39
Profit 41.17 30.25 10.92

P/V Ratio = % Change in Profit *100

% Change in Sales

= 109,200,000/573900000*100

= 19.03%

BEP in Rs. (Year 19) = Fixed cost / P.V ratio * 100

= 1,143,600,000/19.03*100

= 6,009,458,749 Rs.

BEP in Unit = (6,009,458,749 /7,717.41)

= 778,688.54 Unit

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Particular Year-2020 Year-2019 % Changes
Sales 595.58 537.82 57.76
Profit 58.93 41.17 17.76

P/V Ratio = % Change in Profit *100

% Change in Sales

= 177,600,000 /577,600,000*100

= 30.75%

BEP in Rs. (Year 20) = Fixed cost / P.V ratio * 100

= 1,243,100,000/30.75*100

= 4,042,601,626.01 Rs.

BEP in Unit = (4,042,601,626.01 /7,717.41)

= 523,828.80 Units

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Particular Year-2021 Year-2020 % Changes
Sales 599.00 595.58 3.42
Profit 64.14 58.93 5.21

P/V Ratio = % Change in Profit *100

% Change in Sales

= 52,100000 /34,200,000*100

= 15.23%

BEP in Rs. (Year 21) = Fixed cost / P.V ratio * 100

= 1,315,100,000/15.23*100

= 8,634,931,057 Rs.

BEP in Unit = (8,634,931,057 /7,717.41)

= 1,118,229.76 Units

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 FINDINGS AND SUGGESTION

 After this study and all kind of evaluation Echjay industry to produced so many of the
automobile components and they are delivering the as demand of domestic and
international market to provides at the standard product as per the specification of
ISO rules. The automobile industry is one of the fasted growing industry in the
current scenario and this sector also to contribute in the India economics. The
automobile industry is contributed 7.0% the whole of India economics.
 The India automobile industry is second one of the fasted growing sector in the
world about 8 million annually vehicle production in this country. During 2005-2006
India has emerged as third largest market in the Asia pacific region.
 With various car manufacturing companies setting up their units in different parts of
the country, the production of the cars will increase at a very fast rate. From this
study, we can find that India will soon become one of the top 10 car manufacturing
countries. The production of cars will increase by 70% from the present capacity of
1.2 million (March 2011). Export of passenger cars from India have also grown
considerably over the last decade.

 The domestic sale of passenger cars has increased significantly over the years. In the
recent years, India has emerged as one of the major bases for manufacturing small
passenger cars.

 At present, the Indian automotive industry boasts of being the third largest
manufacturer of small cars. Almost 70 % of the cars sold in this country come under
the segment of small cars. A number of car manufacturers like: Maruti, Tata Motors,
Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc. offer various
new model of cars now and then. It is expected that the various automobile
manufacturers will be investing about $ 5 billion in India, between 2005-2011.

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 Echjay industry is also to 70% of its product to export to another country. It is the
great opportunity for the Echjay industry to increate and stake in the foreign market
and to grow automobile industry at this level.

 In the current scenario Echjay industry, have great manpower and different kind of
skill and technology to produce at the lowest cost, which help the company as well
as its customer.

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CONCLUSION IN TERMS OF
EXPORT-IMPORT
OPPORTUNITY
W.R.T
SELECTED PRODUCT
BETWEEN GUJARAT AND
BELGIUM

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 Echjay industry are the no 1 in the Gujarat region and the market value is grate they
are famous in the terms of quality and standardized product in the automobile
sector and produced auto components. They are producing so many of varieties in
the auto components and they are sustaining in the market and they must be
covered the domestic market and international market.
 Gujarat is the hub there are so many of business is currently running and the some
of the business is exporting goods in the various sector. The great opportunity of
Gujarat the highly producing auto components and after all the exporting the foreign
country.
 Echjay industry is located in Gujarat and exporting auto components different
foreign country like that, China, America, Denmark, these are the country.
 Belgium country required hug no of auto components standard products and they
paying any relevant cost the great opportunity for the Gujarat to manufacturing the
huge nu of auto components like that Crown wheel, Gear, pinion blanks, rolled rings
these are the auto components required any automobile manufacturer.
 Belgium country are imported from the India like that, Engineering tools,
petrochemicals, plastics, chemicals, different kind of auto components etc. this is
also to lead for the India the great opportunity to India to produce the many of
things and innovative products with the help of engineering design and to fulfil the
international demand as well as the continuous evaluation of international market
and the domestic market.

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 BIBLIOGRAPHY

 Wikipedia.org

 www.ibef.com

 http://www.siamindia.com/

 https://www.business.belgium.be/en/investing_in_belgium/key_sectors

/automotive_sector

 www.echjayindustry.com

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