A Summer Internship Report submitted by

CHAITRA.V

18MBAR0131

In partial fulfilment of the requirements for

the degree of Masters of Business Administration

At

CMS Business School, Bangalore

Under the guidance of:

Prof. Rajiv U Kalebar

CMS Business School, Bangalore.

 Declaration

I hereby declare that the project submitted to CMS Business School, Bangalore in partial
fulfilment of the requirements for the award of the Degree of Master of business
Administration is a record of original research work done by me during the period of 20th
May to 20th July 2019 under the supervision and guidance of Prof. Rajiv U Kalabar (faculty
mentor). The information and data given in the report is authentic to the best of my
knowledge.

I further declare that this project work is based on my own original work and no part of this
project has been published or submitted to anyone.

Place: Bangalore

Date:

Signature of the student

 ACKNOWLEDGEMENT

I express my profound gratitude and sincere thanks to Dean Dr. Harold Patrick of CMS
Business School, Bangalore for providing me the opportunity to undergo Summer Internship
during the MBA 2018-2020 Period.

My profound thanks to Prof. Rajiv U Kalebar, of CMS Business School, Bangalore for
guiding me throughout the project. I would like to thank Federal Mogul for giving me the
opportunity to gain immense knowledge throughout the internship in their organization.

I would also like to acknowledge with much appreciation the crucial role of my project guide
MR. Jagadishwara in guiding me throughout my project. Things would not have been so
easy without his support and kind words.

Words can never express the deep sense of gratitude I feel for Federal Mogul employees.

Last but not the least, my profound thanks to my parents, friends and faculties who gave their
guidance and support in a way that helped me in bringing out my project in a presentable
manner.

CHAITRA.V

MBA (2018-20)
 Chapter 1
Introduction to Internship and
Project

 Industry Profile
 Company Profile
 Industry profile

1.1 Automobile Industry

The automotive industry is a term that covers a wide range of companies and
organizations in the design, development, manufacture, marketing and world’s most
important sectors by revenue.
The term automotive industry usually does not include industries dedicated to the
maintenance of automobiles following delivery to the end-user, such as repair shops and
motor fuel filling stations.
The term automotive was created from Greek autos(self) and Latin motives (of motions)
to represent any form of self-powered vehicle. This team was proposed by SAE member
Elmer Sperry.
In India there are 100people per vehicle while this figure is 82 in Chana. It is expected
that Indian automobile industry will achieve mass motorization status by 2014.
Since the 1st car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile industry of India has come a long way. During its early stages the auto
industry was overlooked by the Government and polities were also not favorable. The
liberalization policy & various tax reliefs by the govt. of Indian auto industry, which is
currently growing at the pace of around 18 per annum, has become a hot destination for
Global auto players like Volvo, General motors & Ford.
The Indian automotive industry dates back to the 1930’s, was driven mainly by the state
was intended to put India on the map of the automotive industrial world.
In 1935 selected leaders of Indian Business & industry met under the guidance of Sir .M
Vivseshwrariah who had taken up the task of lobbying India’s capitalist for starting an
automotive industry at TATA house in Bombay to consider the question of staring a
factory in Bombay.
On 17th April 1930 at the Indian Merchants Chambers in Bombay an automotive
committee was appointed to prepare a scheme for automotive manufacture. The scheme
made no headway for short span of time, but the persistent efforts of the industry leaders
 and their unbeatable desire to make Indian leaders and unbeatable desire to make Indian
auto industry a whooping success kept the plan going. Characteristically it was Mr.
Walchnd Hirachand who was the 1st time geared up the guts for doing the most feared
task of setting up an automobile manufacturing industry and his earnest endeavor
received an assurance of patronage from the Kher Ministry of Bombay. Meanwhile in the
Eastern India, the Birla Group had also taken the project of setting up a car manufacturing
plant in Calcutta.
Assistance from the Government of India during the World War 2 provided a severe
boost to the speeding of the process of indoctrination and hence both Mr. Walchand and
the most respected Mr. Ghanshyamdas Birla began to push their respective plans in
rivalry with each other in spite of numerous obstacles. In 1942, the Birla Group formed
the Hindustan Motor Limited in Calculate with the paid up capital of Rs.4.96 crore. In
1944, the Walchand Group formed the Premier Auto Limited in Bombay with paid up
capital of 2.2crore. Since in India only a nucleus of ancillary industries in the early 1940’s
the Premier Auto Company set up their own ancillary industries to step up their
production.
The auto components industry’s production in India is estimated at around Rs. 1,212
billion in 2009-10.
However, increasing competition from imports is impacting the ability to pass on input
cost increases in replacement market as well. This venture of the Premier Auto Company
created a radical change in the automotive sector, which had so for relied on the
assistance of ancillary industries, which were few and far between.

1.2Development of Automobile Industry

As a consequence of those development of those developments, the following ancillary
industries in the early 50:
 Piston [piston production in India started in 1952].
 Cylinder liners [produced for the 1st time by Indian pistons]
  Leaf springs [India pistons and the metropolitan spring started production in 1951]

With the setting up of these ancillary industries the automotive industries gained momentum
and especially the piston manufacturing gained the most desired importance and advantage.

In1945, another major breakthrough was achieved as a result of the establishment of the
Goetze India Limited[GIL] (formerly known as Escorts Limited) a joint venture company of
the Federal Mogul at Partiala in Punjab with the technical and financial collaboration with
Goetze Worked of Germany. Further, companies like Sri Ram pistons, Samkrung pistons and
Menon pistons started their production.

Goetze India Limited, which is a joint venture company of Federal Mogul, is at present the
leading piston manufacturer in India. Federal Mogul company was founded in 1899 and
originally named the MUZZY Leon Company. It originally sold mill supplies and rubber
goods. The company’s 1st location was on the wood ward avenue in Detroit, Michigan.
Federal Mogul Corporation today, is known for its world class auto ancillary products like
pistons, leaf springs and the like.

India as manufacturing and souring hub:

When Hyundai and Ford made India a manufacturing hub for particular models of cars, many
other trusted their decision followed suit.

 Auto parts makers Robert Bosch of Germany has relocated manufacture of certain key
products from some of their locations in Europe to MICO, India
 Crosslink International wheels, the India arm Malaysia’s leading automobile security
provider Wheels Electronic SDN, is setting up a manufacturing unit at Baddi to make
India an export hub for the SAARC region.
 GKN Driveline, an arm of UK-based auto component company GKN, Plain to open a
new manufacturing facility in India.
  A Dubai-based ancillary major party International Company has plans to invest
approximately facility meant to service exports to CIS and countries.
 French automobile group PSA Peugeot Citron has placed orders for components
worth US$10 million with Indian companies. Toyota, GM & Daimler Chrysler too are
sourcing components from India.

Indian firms making a mark:

 With the sector booming now, auto majors such as Mahindra & Mahindra are
planning a major offensive in the auto component arena. This marks the
emergence of India as the preferred low-cost base for, not just making vehicles,
but also making vehicles part and allied services.
 It is time for more auto component unit to crack the lucrative and large volume
export market. Jai Parabolic Springs in (JSPL), a leading manufacturer of
parabolic springs in the company, has bagged two major orders from international
auto majors, General Motors (GM), USA & Ford. But then, India’s competitive
advantage doesn’t come from cost alone. It is about Full Services Supply(FSS)
capability. As product life cycles and lead-time for product development shrink,
Indian manufacturers have evolved from ‘build to point’ to customized offerings.

1.3The main players in the Indian piston industry

The main players in the Indian Piston Industry are given below:
Goetze India Limited [Market Share of about 40-48%]
Indian Piston [Market Share of about 20-22%]
Sri Rams Piston [Market Share of about 15-17%]
Samkrung Piston [Market Share of about 8-12%]
The remaining shares of the piston market consists of the other Players like
Perfect pitons, Menon pistons and Piston Ring Manufacturing Company etc.
 The year 2003-04 has been a very exciting and quite an eventfully year for the
Indian Automotive and component industry. During this period, the Indian
automotive industry has witnessed a phenomenal growth and this has been like a
breath of fresh air after the highly turbulent fluctuations that had struck the
industry in the preceding years.
The vehicle industry witnessed a growth of 40% in the car segment, 38%in the
heavy commercial vehicles segment and about a 23% growth rate in 11%.
However, the tractor segments continued to show a downward trend.
He year sow a number of milestones bring crossed. For the first time total
passenger vehicles, leading to an export of US $1billion, which another major
landmark. The auto component industry continued its excellent track record by
registering a growth of over 20%. However, 03-04 was not without changes. The
industry went through certain issues. 1st the NAMMA negotiation under WTO,
which is proposed zero duty on auto components and the FTA agreement with
Thailand. Secondly, the spiraling prices of the row materials, especially steel.

1.4Compound Growth Rate

“The production of passenger vehicles in India was recorded at 3-23 million in 2012-13
and is expected to grow at a compound annual growth rate (CAGR) of 13 percent during
2012-21, as per data published by Automotive Component Manufacturers Association of
India(ACMA).”

1.5Challenges before the Industry

-Excessive structure cost
-Dissatisfied customers
-Slow to respond
-Lost revenue opportunities
AUTOMOBILE INDUSTRY OVERVIEW IN INDIA
India is multibillion-dollar market for automobiles, accessories and components. Apart
from being the world’s largest manufacturer of 2 wheelers and 5th largest manufacturer of
commercial vehicles, India is the 4th largest passenger car market in Asia. In recent years
there has been marked rise in the number of international industry concerns setting up a
base in India.
The automotive industry is well represented among them. In 2008n3million vehicles were
manufactured in India. In this sector, the subcontinent is one of the biggest growth
markets in Asian region, despite the late international opening in 1992. Sales of private
vehicles rose in2007 by 15% to 1.5million units. Continuing strong growth is percent for
the period April 2007 to March 2008. Currently the level of car ownership in India is
moderate, but with the expansion of the middle classes, this is expected to increase
considerably.

Segment India’s Position in the World

Passenger Vehicles 11th Largest

Commercial Vehicles 4th Largest 5th Largest

Two-Wheeler 2nd Largest Largest

Three- Wheeler Largest

 PROFILE OF THE COMPANY

Additional details

 Public company
 Incorporated: 1954
 Traded as: NASDAQ: FMDL
 BSE:505744
 NSE: FMGOETZE
 ISIN Code: INE529A01010
 Sector: Auto
 M/s. Walker, Chandiok &Co.
 Face value (units in Rs. INR): 10.00

BACKGROUND & INCEPTION OF THE COMPANY

Sir Hari Prasad Nanda and his younger brother Sri Yudi Nanda have started Escorts at Lahore
in the year 1944. After the independence in 1947, Nanda’s along with their family moved to
India and started business in manufacturing of agricultural equipment’s and then slowly
converted into automobile with Goetze- Werke of Germany manufacturer of piston rings and
liners. The 1st piston come into existence when steam engine was discovered.
Earlier the pistons were being imported to India, the 1st piston industry that come into
existence was in Chennai as “India Piston Ltd”. then come “ESCORTS”.

2006- Majority stake holding acquisition by Federal-Mogul Corporation. The Federal-Mogul

Corporation was founded in 1899-USA. Federal-Mogul has been creating value through
innovation and leading technology for more than 100 years.

Today, the company is a key player in the global marketplace, serving industries that range
automotive and commercial vehicles to railroad and aerospace. Customers know they can
rely on Federal-Mogul’s quality excellence in products, trusted brands and creative solutions.

This company started with a bold idea and over a period of time grew into a FORTURE 500
company with a global workforce thousands strong. The Federal-Mogul team has celebrated
countless victories and worked hard to overcome the inevitable challenges.

Federal-Mogul Corporation is an innovation and diversified $6.9billion global supplier of

quality products, trusted brands and creative solutions to manufactures of automotive, light
commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace,
marine, rail and industrial.

Federal-Mogul operates with two business segments, each with a chief executive officer
reporting to Federal-Mogul’s Board of Directors. The power train segment focus on original
equipment power train products for automotive, heavy-duty and industrial applications; the
vehicle components segment sells and distributes a board portfolio of products in the global
vehicles after market, while also serving original equipment (OE\OES) manufacturers with
vehicle products including brake friction, chassis, wipers and other components.

For more than a century, Federal-Mogul has developed the innovative products for our
customers need to produce the next generation of vehicles. The company continues to
develop innovations to improve fuel economy, reduce emissions and enhance durability
through global engineering manufacturing, distribution and customer service programs.
Federal-Mogul Intends to remain the preferred partner for its global customers.

Federal-Mogul Goetze (India) ltd is the largest manufacturer of pistons and piston rings in
India, FMGIL: facilities at Bangalore, Patiala and Bhiwadi are certified TS 16949, ISO 14001
& OHSAS 18001.

A. NATURE OF BUSINESS CARRIED OUT

Activies: - Manufacturer, Exporter and Importer of Piston Assembles, Piston Rings,
Cylinders, Liners Light Metal Cylinders Blocks, Outer Tubes for telescope front
forks, Crown Handle for motorcycle, Piston Pins.
Federal-Mogul Goetze India Ltd manufacturers the products like Piston, Rings, Piston
Pins called Piston Assembly. In the 3 manufacturing centers these products are
manufactured namely Bangalore, Patiala Bhiwadi and Chennai.
I. Bangalore: Piston/Rings production was in 1977. Steel rings/large locomotive
piston were started in 1982. Company pistons/ new ring foundry in 1994 and
Goetze TP (India) set up in 1997.
II. Patiala: This is the 1st Federal-Mogul Plant location in India, Ring and liner
production was started in 1947, and Piston production (Mahle) in 1958. The
products produced in Patiala were pistons, pistons rings, cylinder liners, light
alloy casting.
III. Bhiwadi: In bhiwadi plants the products manufactured are value seat.
IV. Chennai: In Chennai recently started mean 2011, they produce vehicle safety
products.
B. VISION, MISSION, VALUES AND POLICIES
VISION
 To be global player in the field of Pistons, Rings, Sintered plants.
 To identify best practices to move towards manufacturing excellence.
  Partnering success to become world class achievers in the automotive
sector.

MISSION

 To be known as the best company for returns to the shareholders.

 To increase market, share by 30%
 To export 25% of the total production every year.
 To reduce the product development time by 50%.

VALUES

 Integrity
 Transparency & openness
 Excellence
 Customer orientation
 Employee orientation

POLICIES

1.Quality Policy: “Our primary responsibility is to deliver

maximum value to our customers”. In pursuance of this effort, with our dedicated teamwork,
we commit ourselves to maintain the leadership, both in development and technology of
piston rings. To adhere in letter and spirit to the technical requirement and laid-down system
which is essential for our product to be consistently the 1st choice of our customers through in
built quality on-schedule delivery.

To achieve this, they all committed to:

 Customer satisfaction by providing products and services that meet or exceed their
requirements.
  Continual Improvement of the effectiveness of quality management system by
providing training to employees.
 Management system maintaining a system complaint ISO/TS 16949 ISO 14501 &
OHSAS 18001.
 Maintaining operations that protect the environment and natural resources of our
Communities, our states and our Nations.

Safety: - Providing a safe work environment to employees and visitors.

2. Environment, Safety and Health Policy: - To fulfill our social

responsibility:
3. Ensue safe, healthy and environment friendly working condition.
4. Conserve resource and introduce technologies, process and material that are
environment friendly and safe.
5. Adhere to spirit of continual improvement by setting and reviewing objectives
periodically.
6. Create and imbibe awareness towards environment, safety and health consciousness
among all working for and on behalf of the organization.
7. Comply with all applicable legal and other requirement.

3.2 AWARDS AND CERTIFICATES

YEAR AWARD /CERTIFICATION

1998-99 Receive the best supplier award from Tata Cummins Ltd.

1999 Plant at Bhiwadi received the OMSAS 18001:1999 Certification from

TUV Certificate Body for Environment Management Systems

RWTUV System GmbH

2000-01 Escorts Mahle Ltd. receives an award of excellence for performance
 From Maruti Udyog Ltd.

2001-02 Certification from Kinetic Engineering Supply

2002 Best performance vendor

2004 Certification from TUV Certification Body for Environment

Management System

2004-05 Award for QCBBM from Honda Motorcycle & Scooter

India(pvt)ltd

2005-06 Certification of application from Standard Group of Companies

2005-06 Best supplier performance award from Mahindra & Mahindra ltd

Automotive News PACE Awards:

Federal Mogul has received a total of ten Automotive News PACE (Premier Automotive
Supplier’s Contribution Excellence) Awards, honoring the company’s technological
advances. The Automotive News PACE Awards to honor superior innovation, technological
advancement and business performance among automotive suppliers. This prestigious award
is recognized around the world as the industry benchmark for innovation.

3.4 PRODUCTS PROFILE

1. Pistons:

Goetze piston rings of OEM’s Aftermarket in India have state of the art design facilities for
products and dies and tooling with CAD/PRO-E/GLIDE SOFT and to test bed facilities.
Federal Mogul Goezte India is dedicated to developing new technologies and continuously
improving its products.
 Production Capacity 13million pistons per annum

Product Range 30mm to 300mm diameter

Goetze manufactures a wide range of piston rings for:

 Bi-wheelers
 Cars
 SUV’S
 Tractors
 Light commercial vehicles
 Heavy commercial vehicles
 Heavy output locomotive diesel engines
 Stationary engine
 Industrial

Products suitable for

 4 stroke engines
 2 stroke engines
 Gasoline engines
 Diesel engines

Coatings

 Graphite
 Tin
 Phosphating
 Anodizing
 Molly costing
 Features

 Autothermic
 Ring carrier/ ALFIN
 Double C.I grooves
 Forged
 Articulated
 Steel car pistons
 Pistons with cooling coil
 Thin-walled pistons for cars
 Thin-groove pistons

Technology expertise matched with innovative thinking has made Goetze

Pistons the choice of discerning customers.

8. Ring Material
Coating on Running Surface
 Chrome ceramic plated ring(CKS)
 Molybdenum coated rings
 Plasma filled rings
 Semi-inlaid rings
 Ferrox filled rings
 Chrome plated rings
Features
 Thin rings made from SG iron
 Asymmetric profile rings
 Specially honed chrome ring
 Lower sharp edge rings
 Reverse torsion rings
  Conformable chrome oil rings
 Keystone
 Napier
 Nitrating
 Drilling hole oil ring
 Interrupted cut
 Narrow land
9. Cylinder Liner
Federal mogul Goetze India manufactures wet and dry cylinder liners with honnong
and selves for bi-wheeler applications for its quality conscious customers
Production Capacity 0.5 million director

Production Range 50mm to 120mm diameter

Features
 Thin-walled
 Plateau honed
 With and Without flanges

Applications

 Bi- wheelers
 Cars
 Tractors
 Light commercial vehicles
 Heavy commercial vehicles
 Stationary engines

Coating
  Phosphating

4. light Metal Castings

Federal-Mogul Goetze (India) Ltd makes a wide variety of light metal castings, including
cylinder blocks; cylinder heads for single cylinder engines; and aluminums tube castings and
aluminums crown handles for motorcycles.

3.5 Services Profile

1. Piston Assembly- Wick seals.

Pistons are usually made of an aluminum alloy. They are a sliding fit in the cylinders. This
serves several purposes as follows

 Transmits the force of combustion to the crankshaft through the connecting rod.
 Acts as guide for the upper end of the connecting rod. Serves as a carrier for the
piston rings that are used to seal the compression in the cylinder. The piston must
withstand incredible punishment under temperature extremes.

2. Goetze Piston rings

The number one name in OE and aftermarket piston ring for gasoline and diesel engines, are
developed for automobile light commercial vehicle and heavy-duty applications. Goetze
piston rings which come in a wide range of sizes, include the first sets introduced for Euro4
compliant engines. Manufactured to the industry-leading Goetze norm from specifications for
aftermarket conditions, Goetze Piston rings provides:

 Maximum durability
 High wear and corrosion resistance
 Excellent heat-conducting capacity
 Optimal fit
3. High-Tech Sintered products PVT, Ltd.

It started operations in1994, is a leading manufacturer of Sintered Products & serving Indian
Home appliances, Automobiles, Textiles, Electrical & Mechanical Industry over a decade.
HTSPPL has a reputation for quality, reliability & competitiveness. They are certified for
ISO 9001:2001 AQSR-USA. We operate a quality management system to meet the
requirements of the applicable national and international standards. They make about 3000
different components with different material compositions as per the customer’s
requirements.

AREA OF OPERATION-GLOBAL/NATIONAL/REGIONAL

Federal Mogul corporate is global purchasing is responsible for procuring all goods and
services by Federal Mogul and its joint ventures around the world. Sourcing decisions are
made based on supplier’s performance in quality, service and cost.

The goal of global purchasing is to improve communication with their supply base in order to
generate efficiencies and enhance product quality in national Bangalore, Patiala. The exports
made by Federal Mogul have been leads to a growth area for it. Major exports destinations
are Bangladesh, Srilanka, South Africa, Egypt, United States, Middle East and Europe.
Similarly, it imports from Japan and Europe.

3.6 OWNERSHIP PATTERN

Federal Mogul is a public sector company. The share through public is 49.9% and the share
through Federal Mogul is 51%

3.7 CUSTOMERS OF FMGIL:

 Tata Motors Ltd.

 Ashok Leyland Ltd.
 Bajaj Tempo Ltd.
  Fiat India Ltd.
 Kirloskar oil engineers Ltd.
 Maruti Udyog Ltd and others…...

3.8 COMPETITORS INFORMATION

INDIAN Pistons Limited Chennai

Sai Ram Pistons Ghaziabad

Sham Pistons Hyderabad

Menon Pistons Kolhapur

1. Indian Piston’s Limited(Chennai): - India pistons ltd one of leading manufacturer

of pistons, pistons rings, gudgeon pins & liners. The company has a capacity to
produce 7 million pistons & employees more than 1000 people. Their current exports
are to major countries in Europe, Africa, Middle east & America. They have the
complete range for Perkins, Cummins and John Deer Endines. Suitable for
aftermarket.
About product
 Pistons
 Pins &
 Cylinder
2. Sri Ram Pistons(Ghaziabad): - Sri Ram Pistons and Rings Ltd. (SPR) is the part of
the SRIRAM GROUP, one of the largest and most reputed in houses in India. At
SPR, they believe in dreams and to determination to achieve them. At Sri Ram Piston
& Rings Ltd, they have a long-term commitment to the company and their customers-
a commitment of developing and providing world class products. Towards this end,
they have joined hands with leading auto ancillary manufacturers the world over.
 About product
 Pistons and
 Rings
3. Menon Pistons(Kolhapur): - Menon Pistons Ltd Ventured into manufacture of
pistons in 1971 without any collaboration or technical assistance of any piston
manufacturer. Manufacturing plant was set up at industrial estate in Shiroli, Kolhapur,
a Small Industrial City, South East of Mumbai and delivered the first rings carrier
piston to the Indian diesel engine industry in 1971

SWOT ANALYSIS
 Strengths
 Weakness
 Opportunities
 Threats

strengths

weakness SWOT threats

opportunities
Strengths:

 FMGIL as such is a well-known brand industry.

 Its main strength is capable and highly disciplined staff.
 FMGIL is the first and foremost as a leading global automotive supplier, is also
specialist in the rail vehicle sector.
 Highly diversify the products and create their own product brand in a global market.
 Produces different products at quality standards.
 FMGIL have own strong structure.
 Technical production operation systems.
 Under Federal-Mogul’s brands, FERODO and Bentlet Harris, the company offers
products that are crucial for keeping trains safely on track.
 FERODO offers extremely high-grade organic LCC and high-temperature brake pads.
 Provides good frictional stability and higher friction material flexibility.
 Producing high quality products comparable with international standards awarded by
ISO 9001.
 Provides good environmental protection comparable with the international standards
awarded by ISO 144001.
 Awarded TS16949 gets image in Automobile Industry.
 Provides well health and safety standards within the company and public Awarded by
OHSAS18001.

Weaknesses:

o Absenteeism- the general of focus on absenteeism is possibly due to the fact that the
costs of absenteeism are not show separately on management reports. This could be
due to the fact that the amount incurred for paid absence is usually grouped with all
staff costs. This includes the unproductive portion as well as the cost of replacement
workers and overtime. The indirect costs are more problematic and it is very seldom
 that employers quantify the monetary affect that absenteeism has on the indirect areas
such as production volumes, quality and morale.
o Problem of timely availability of imported and indigenous row materials.
o Lack of co-ordination between Trade unions to create problems in business decision
making.

Opportunities:

 With coming of MNC’s in the automobile sector like DAEWOO, VOLKSWAGON,

BMW, FORD the demand for production has increased the scope of ready markets,
also scope for further expansion in the production of existing products and some new
products has increased as they have wide network
 High export of opportunities.
 Federal-Modul Goetze (India) Limited engages in the manufacture, supply and
distribution of automotive components for two, three or four wheeler automobiles in
India.
 The company offers pistons; piston rings; cylinder liners; lights metals castings,
including cylinder blocks cylinder heads for single cylinder engines and aluminum
tube castings and crown handles for motorcycle’s.
 It also exports its products to various countries.

Opportunities:

 Stiff competition from existing players in the market and there is challenge of new
products development.
 Changing economic scenario in India and changes in government policies will have
great impact on the revenue of this company.
 Increasing awareness Pistons, Pistons rings and cylinders in to automobile market to
some extents.
 Chapter-2

DESIGN OF THE STUDY

2.1 Title of the Study

A Summer Internship Program at Federal Mogul Goetze (India) Ltd.

2.2 Objective of the Study

 To gain insight into the corporate world of Federal Mogul Goetze (India) Ltd
Bangalore.
 To analyze each and every department of FMIL, Bangalore.
 To apply 7’s McKinsey framework model and understand the competitive edge of
FMIL on each parameter therein.
 To get practical to organizational problems and practices; and
 To prepare SWOC analysis for FMIL, Bangalore

2.3 Scope of the Study

This study is an attempt to the organization FMIL as a whole and to study the different
department in detail so that as a student we get a detailed knowledge about the
organization from different aspects and to study the functions of the different department
which constitute the organization so as to suggest effective changes such the organization
achieves its objectives and different departments contributes effectively towards the
achievement of this organizational goal.

The study focuses on the different departments and their functioning and the methods to
improve the organization so this study provides a very wide scope for the student to gain
an insight into the practical aspects of the working of an organization and this increases
our managerial skills.

2.4 Methodology

The organizational study involves case method in that each and every aspects of Federal
Mogul Goetze India Ltd. have been analyzed in great detail with the help of 7’s
McKinsey framework model. The methods are used in this organization study empirical,
case study method, analytical method, descriptive method the researcher, in one-month
internship program directly observed certain activates of the FMIL Bangalore

 Primary Data.
Data collected originally by the researcher is called primary data. The same is
being used for preparing organizational study project report. The organizational
study is prepared to evaluate the performance study project report. The
organization study is prepared to evaluate the performance appraisal mechanism
in the FEDERAL MOGUL GOETZE INDIA LTD. The organizational study used
a semi structured interview to collect data on industry profile, company profile,
functional analysis, SWOT analysis and on 7’s MicKinsey model.
 Secondary data.
Secondary data relates to the pre-existing data of the organization like FEDERAL
MOGULGOEZTE INDIA LTD manuals, booklet, websites and annual reports,
broachers, balance sheet and magazines. The requires data were collected from
both secondary and primary sources. Data collocated then were tabulated,
analyzed and interpreted to draw meaningful conclusions.

2.5 Limitations of the Study

The organization failed to disclose certain information.
As the managers were busy in their duty schedules it was not possible for
me to spend more time in interacting and discussing with them on the
subject.
The findings are based on the data supplied by the company respondents.
Considering the size of the organization and departments, the time
availability
Federal Mogul has various departments like other manufacturing & services companies.
There are some basic and very important department in this company also which functions
with high degree of accuracy and efficiency.

The Main Departments are: -

Finance Department
Human Resources Management(HRM)
Production and Operation Department
Purchases Department
Marketing and Sales Department
Research and development Department(R&D)
FINANCE DEPARTMENT

Federal Mogul Goetze India Limited Financing activities are done by the head office
Federal Mogul Limited Gurgaon. The organization is developing the Accounting
Standards through SAP Software, and HYPERIS is used for reporting, present ON
STREAM Software is used for reporting.
In FMGIL there is no cash payments, NFT and cheques are maintained. The turnover
is 1200cr, in this for Bangalore plant has 700cr spent for production and sales.
According to budgeting funds are allocated.
Objective of Finance Department
 Profit Maximization
 Wealth Maximization
 Liquidity
 Efficiency
 Financial Decline

Accounting Principals of FMGIL on Inventories

 Row Materials components store and spare parts are valued at lower cost
and net realizable value excluding excise duty.
 Work in Progress is valued at cost and lower cost and estimated realizable
value, wherever substantial progress is made.

Federal Mogul Financial Code of Ethics

 To ensure continuing integrity of financial reporting and transaction

 Financial Professional means any professional employee in the area of finance or
outside the area of finance with a significant impact on the financial accounting &
reporting of the company.
The Finance Chart of FMGIL

Controller

Costing Accounting
Taxation
Department Finances

Accounts
Sr. Piston
D Payable
Manager Controller
Managerana
Journal Ledger
Customer
geranager
&Service Ring Controlee
Taxation
Payroll

MIS Reports

Book Closing
Chapter 3
LITERATURE
REVIEW
3.1 Analysis of Investment Behavior of Individual Investors of Stock Market

Arup Kumar Sarkar (January 2018): -

Investors are the backbone of capital market. The investors

choose avenues, depending upon their specific need, risk appetite and return expected. This
study has been done to know about the impact of Demographic Factors, Awareness and
Perceived Risk Attitude on Investment Behavior in stock market and the study is made in the
context of individual investors of Indian Market. The study finds that the awareness levels of
the individual’s investors are on moderate level and financial awareness is more than social
media. A developing economy, like India, needs a growing amount of savings to corporate
enterprises. Investment is the flow of capital which is used is used for productive purposes.
Financial investments help in creating the capital stock of the units etc. Financial investments
help in creating the capital stock of the country. In the long term, investment is important for
improving productivity and increasing the competitiveness of an economy.

3.2. A Study of Individual Investor’s Behavior in Stock Market

International Journal of Management and Commerce Innovations (2015)

In earlier times, buyers and sellers used to assemble at stock exchanges to make a transitions
but now with the down of IT, most of the operations are done electronically and the stock
markets have become most paperless. The history of the stock market shows that most
investor’s buys stocks in companies or mutual funds for presumably sound reasons but exit
their holdings the moment the market turns against them. Stock market refers to the market
place where investors can buy and sell stocks It was found out that Majority of the small
investors do not consider various financial elements before investing into stock market. Small
investors are not conservative in nature about company events as they are unbiased, under
speculative related domestic events and also under opportunistic about world economic
events. The investors are not take decisions immediately but they try to understand the
market first and then react

3.3 Factors Influencing Individual Investor Behavior

Sadeq J Abul 2019

This study investigates the effects of psychological factors on investor behavior regarding the
investments. By using qualitative analysis and based on the theory of behavioral finance, the
study findings show that herd behavior, optimum and psychology risk have an impact on the
individual investor’s decisions. This study finds that psychological factors play a significant
role in individual investors decisions. This study might contribute positively to the
development of this field of research. Finance theory assumes that investors are rational and
make decision based on profit maximization. Therefore, the price of stocks always reflects
their intrinsic values and is reasonable. However, the reality shows that investors in the are
making their investment decisions. Moreover, behavioral finance studies the impact of
psychological factors on the stock markets. Evidence from recent studies on behavioral fiancé
assumptions. In fact, by applying the psychological theory of human behavioral to the
financial markets and used it as a tool for investors. This study examined the impact of
psychological factors on individual investor’s. The results of the surveys confirm that
psychological factors, like herd behavior, optimism, pessimism and risk, do affect investors
decisions.

3.4 Factors Influencing Individual Investor Behavior

Athar Iqbal & Sania Usmani

Behavioral finance focalizes on how investors translate and grabs the information to take
investment decisions. It also examines the investor behavior which leads to various market
abnormalities. It is a rapidly growing field which focuses on the behavior which leads to
various market abnormalities. The study aimed at analyzing the behavior investors/
shareholders in stock exchange. The information was gathered from individual investors who
purchase and sell stocks. Each active brokerage house has at least 400 individual investors.
Investors also make use of the accounting information derived by financial statements and the
firm’s financial position in general. Concerns such as the firm’s ethical posture, local and
international operations, and environmental record are not considered. The recommendations
of family members, friends and coworkers go largely unheeded, recommendations of Stock
Brokers are considered, nut 86% of the sample investors are self-reliant and make purchase
decisions on their own without any one’s influence. Individual investors do not use the
valuation models when evaluating stocks but consider the current economic indicators like
GDP, Inflation rates etc.
Chapter 4

Research Methodology
 Chapter 5

THEORETICAL

FRAMEWORK
5.1 Introduction to Fundamental Ratio
What is Fundamental Analysis?
A fundamental analysis is all about getting an understanding of a company,
the health of its business and its future prospects. It includes reading and
analyzing annual reports and financial statements to get an understanding of
the company's comparative advantages, competitors and its market
environment.
Why use fundamental analysis?
Fundamental analysis is built on the idea that the stock market may price a
company wrong from time to time. Profits can be made by finding
underpriced stocks and waiting for the market to adjust the valuation of the
company. By analyzing the financial reports from companies you will get an
understanding of the value of different companies and understand the pricing
in the stock market.
5.1 Fundamental Analysis Tools
These are the most popular tools of fundamental analysis. They focus on
earnings, growth, and value in the market.
5.1.1 Earnings per Share
Comparing total net earnings for various companies is usually not a good
idea, since net earnings numbers don't take into account how many shares of
stock are outstanding (in other words, they don't take into account how many
owners you have to divide the earnings among). In order to make earnings
comparisons more useful across companies, fundamental analysts instead look
at a company's earnings per share (EPS). EPS is calculated by taking a
company's net earnings and dividing by the number of outstanding shares of
stock the company.
Formula:
EPS = Profit after tax / Number of shares
5.1.2 P/E Ratio
EPS is a great way to compare earnings across companies, but it doesn't tell
you anything about how the market values the stock. That's why
fundamental analysts use the price-to-earnings ratio, more commonly known
as the P/E ratio, to figure out how much the market is willing to pay for a
company's earnings.
Formula: -
P/E Ratio = Market price per share / EPS

5.1.3 P/B Ratio

The price-to-book ratio is a financial ratio used to compare a company’s
current market price to its book value. It is also sometimes known as a
market-to-book ratio. A company’s price to-book ratio is determined by
taking the company’s per share stock price and dividing by the company’s
book value per share.
Formula: -
P/B Ratio = Share price / Book value per share

5.1.1 Return on Equity

Return on equity (ROE) shows you how much profit a company generates in
comparison to its book value. The ratio is calculated by taking a company's
after-tax income (after preferred stock dividends but before common stock
dividends) and dividing by its book value (which is equal to its assets minus
its liabilities).
Formula: -
ROE = Profit after tax /Shareholders fund

5.1.2 Current Ratio

 The current ratio is a financial ratio that investors and analysts use to examine the
liquidity of a company and its ability to pay short-term liabilities (debt and payables) with
its short-term assets (cash, inventory, receivables). The current ratio is calculated by
dividing current assets by current liabilities:

Formula
Current Ratio = Current Assets ÷ Current Liabilities

Current Ratio

Year current assets current liability current ratio

2007-08 249.54 219.02 1.139

2008-09 291.59 256.21 1.138

2009-10 311.74 261.28 1.193

2010-11 392.38 307.74 1.27

2011-12 355.39 267.02 1.33

 Currect Ratio

2011-12

2010-11

2009-10

2008-09

2007-08

0 50 100 150 200 250 300 350 400 450

CR CL CA

5.1.4 Debt Equity Ratio

Debt/Equity Ratio is a debt ratio used to measure a company's financial
leverage, calculated by dividing a company’s total liabilities by its stockholders'
equity. The D/E ratio indicates how much debt a company is using to finance its
assets relative to the amount of value represented in shareholders’ equity.

Formula
Debt - Equity Ratio = Total Liabilities / Shareholders' Equity
 long term debt

2007-08 2008-09 2009-10 2010-11 2011-12

5.1.5 Net Profit Ratio

The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have
been deducted from sales, and income taxes recognized. As such, it is one of the
best measures of the overall results of a firm, especially when combined with an
evaluation of how well it is using
Its working capital. The measure is commonly reported on a trend line, to
judge performance over time. It is also used to compare the results of a
business with its competitors.Net profit is not an indicator of cash flows,
since net profit incorporates a number of non-cash expenses, such as accrued
expenses, amortization, and depreciation.
Formula

(Net profit ÷ Net sales) x 100

 Chapter 6

FINDINGS,
CONCLUSIONS
AND SUGGESTIONS
Findings: -

 This study has helped me to understand the internal and external factors of the
organization to some extant
 An employee’s determination to work for the organization is a consequence of job
satisfaction
 The reward like gifts, incentives and other benefits motive the employees.
 The company expects employees to work beyond working hours only when there is
more production. It is worth for the employees they are getting extra benefits out of it.
 HR are considered to be mast valuable asset in any organization. It is the sum total of
interest of inherent abilities, acquired knowledge & skills represented by the aptitudes
and talents of the employed persons who comprise of executives, supervisors.
 It may be noted that Human Resource should be utilized maximum possible extent, in
order to achieve individual and organizational goals.
 From the findings it can be concluded that Federal Mogul has made a successful
attempt towards maintaining employee satisfaction
 Findings revealed that the employees are satisfied, at large
 Employees are satisfied not only with the job but also with the organization as a
whole.
 Conclusions: -
 FMGIL has to provide itself to the number one in the manufacturing industry. It has
pioneered in many new areas because of its inventory of professional and skilled
employees. And this only providing its employees, good working conditions and
welfare’s.
 FMGIL is recognizing the organization with negligible employee turnover. This is
because it gives its employees adequate and fair compensation and employees has no
reason to quite the company. This can be supported by the fact that the employees in
FMGIL has a service more than 20 years on an average.
 Management is further thinking to make developments in employee engagement
activities by bringing in trophy in each department where in best performer of the
particular month will award for his or her contributions.
 Thus I can say this organization is very well taking measures towards employee
engagement further it can improve by taking suggestions from employees in all
programs and celebrating everything that makes employee engaged.
 Suggestion:
Survival of the fittest, a company can capture the market survive in the same only if it
is fit externally & internally. One of the grounds on which it can stay fit internally is
through maintaining maximum concentrate more on satisfaction of employees.
 An employee has the complete right to know about the facilities available to them in
their place of work. It is therefore necessary that all the employees are made aware of
the same once they are recruited.
 SWOT Analysis of employees is one of the best ways of understanding their needs.
 Counselling employees at regular intervals and studying in the employees point of
view the changes required in the organization. This is not only helps in understanding
employee’s requirements but also boost their morale.
 The FMGIL increase their production capacity, because the company demand is more
than supply (i.e. Piston demand is 10million their supply is 7.1 million and Rings
demand is 30million and supply is 27million).
 The company has to reduce the scrap and waste in the production.
Learning outcome: -

1. The Internship in FMGIL, Bangalore helped me gain insight into the manufacturing
industry. The experience has to be contributed to understand the various theoretical
concepts learnt in class.
2. I came to know the importance of different management functions which guide the
organization.
3. Also learnt that an inter-personal relation plays a significant role in achieving day-to-
day and organizational goals.
4. Health and safety of the employees of an organization affects its functioning. An
organization must lay a foundation of discipline and mutual respect among the
employees to create an environmental and cultural which motivates the employees to
put in their best efforts.
5. An environment concern is the responsibility of every citizen and no significance
harm should be cause to it.