Report Bit Arb 12

8/7/2019 Report Bit Arb 12

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CUSTOMER SATISFACTION AND LOYALTY IN

LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD

A Thesis

Submitted in the partial fulfillment of the requirements for

The award of the degree of

MASTERS IN BUSINESS ADMINISTRATION

BY

RAHUL GUPTA

(5MBA/4038/09)

DEPARTMENT OF MANAGEMENTBIRLA INSTITUTE OF TECHNOLOGY

MESRA-835215 , RANCHI2011


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DECLARATION CERTIFICATEThis is to certify that the work presented in the project entitled

CUSTOMER SATISFACTION AND LOYALTY IN

LOGISTICS SERVICES @ DHL EXPRESS (I) PVT LTD

in partial fulfillment of the requirement for the award of degree of

MASTER IN BUSINESS ADMINISTRATION

Of Birla Institute Of Technology Mesra Ranchi is an authentic work

carried out under my supervision and guidance.

To the best of my knowledge, the content of this thesis does not form a

basis for the award of any previous Degree to any one else.

Date:- 29/04/2011

Mrs Poorvi Mathur

Department of Management

Birla Institute of Technology

Mesra , Ranchi

Jaipur Campus


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CERTIFICATE OF APPROVAL

The foregoing thesis entitled CUSTOMER SATISFACTION STUDY

- A CASE OF ARB BEARINGS is here by approved as a creditable

study of research topic and has been presented in satisfactory manner to

warrant its acceptance as prerequisite to the degree for which it has been

submitted .

It is understood that by this approval, the undersigned do not necessarily

endorsed any conclusion drawn or opinion expressed therein, but approve

the project for the purpose for which it is submitted.

(Internal Examiner) (External Examiner)

(Chairman)

Head of the Department


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TABLE OF CONTENTS

S. No DESCRIPTION PAGE

NOS.

1 ACKNOWLEDGMENT

2 ABSTRACT

3 CHAPTER-1 INTRODUCTION

4 CHAPTER -2 CONCEPTUAL FRAMEWORK

5 CHAPTER - 3 INDIAN BEARING INDUSTRY- A PROFILE

6 CHAPTER - 4 COMPANY PROFILE

7 CHAPTER - 5 RESEARCH OBJECTIVE AND METHODOLOGY

8 CHAPTER - 6 DATA ANALYSIS AND FINDING9 CHAPTER - 7 CONCLUSION & RECOMMENDATIONS

10 BIBLIOGRAPHY

11 ANNEXURE

ACKNOWLEDGMENT


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Before I begin, I would like to thank a few people who have supported

me throughout the writing of this internship.

I would also like to acknowledge the support & encouragement provided

by Mr. G.S Bhasin & Mrs Poorvi Mathur (guide) for providing me

with detailed responses regarding all my queries and for his insightful

comments regarding the internship topic.

Finally, above all, I would like to thank the almighty without whose

blessings this internship would never been possible.

Thank you all for the time, effort and encouragement shown to me.

ABHISHEK BHURISHRWA

MBA IV SEM

ABSTRACT

The current Indian bearings industry is worth Rs.3500 crore. In this,

automotive segment accounts for 45 percent of the revenues, which


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amount to Rs 1,350 crores and the remaining 55 percent of revenues are

being contributed by industrial demand. In the automotive bearings

market, the organized segment manufactures cater to 50 percent of the

demand. About 15 percent of the production is by the unorganized

segment in India, and the remaining 35 percent of demand is fulfilled

through imports. Out of the total revenues in the automotive segment, 60

percent of the revenues are contributed by the OEMs and the remaining

40 percent is by the demand from the aftermarket. There has been a

growth of 15 percent in the aftermarket segment and OE demand has

increased by more than 25 percent from the financial year 2005-06.

Organizations are increasingly interested in retaining existing customers

while targeting non-customers; measuring customer satisfaction provides

an indication of how successful the organization is at providing products

and/or services to the marketplace.

In this context this study was chosen keeping in view the interests of the

company as well as the researcher. The target aimed by the research was

To identify the customer satisfaction in bearing market in various

regions by interviewing Workshops owners/mechanics and

Distributors/Stockiest of various companies. This meant a lot of exposure

for the researcher as and when he would interact with different people

with different requirements.


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CHAPTER-1

INTRODUCTION

Bearings are "the Essential items" required to reduce or eliminate the

friction between moving parts. Depending on the application there are

different principles on which these bearings are designed and run.

The current Indian bearings industry is worth Rs.3500 crore. In this,

automotive segment accounts for 45 percent of the revenues, which

amount to Rs 1,350 crores and the remaining 55 percent of revenues are

being contributed by industrial demand. In the automotive bearings

market, the organized segment manufactures cater to 50 percent of the

demand. About 15 percent of the production is by the unorganized

segment in India, and the remaining 35 percent of demand is fulfilled

through imports. Out of the total revenues in the automotive segment, 60

percent of the revenues are contributed by the OEMs and the remaining

40 percent is by the demand from the aftermarket. There has been a

growth of 15 percent in the aftermarket segment and OE demand has

increased by more than 25 percent from the financial year 2005-06.

Bearing OEMs in India mainly caters to:

Automobile

General Engineering & Heavy Industries

Electrical equipments.

Though the size of Indian Automobile Industry (except of two wheeler

segment) is very small as compared to Global size, it is the largest User

industry for Indian Bearing Industry. Replacement market is also an

important End user for the Bearings. Growth of Automobile population in


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India also fuels to growth of Replacement market and demand from

vehicle maintenance.

Engineering segment mainly comprises of capital goods and heavy

engineering industry. The demand growth from OE segment here depends

on industrial and infrastructural related activities. Other users includes

mainly railways (using bearings for locomotives, wagons and coaches

etc.).

Indian Bearing Industry constitutes some of the world-class

manufacturers like FAG, SKF, TIMKEN, NBC and Tata Bearings. It also

has a host of small organized and unorganized players catering to the

replacement market. Imports (legal as well as illegal) too is becoming an

important supplier to the Indian bearing consumers.

The economic slowdown besides increasing domestic and global

competition has had its effect on Indian industry. While demand is low,

customers are increasingly looking at both the price and performance. To

counter this increasing expectation all the manufacturers are working to

give their best in terms of price and quality. While this is true for all

products it is very important for Bearing manufacturers.

Today bearing manufacturers are concerned about:

Cost per part

Product Quality - Geometry and Finish

Productivity and Cycle time.

Yield Loss

Manufacturers are constantly looking at new and innovative ways to

modify their process, use best economic viable tools for their production

and achieve best cycle time to reduce their cost per parts & still have the


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best quality bearing produced. Manufacturers of Bearings are thus

looking at Total Solution to their needs.

The fortunes of the bearing industry in India are linked to the growth of

automotive industry. The overall growths in commercial vehicle industry

was at 9.7 % in 2007.OEM industry, such as two-wheeler, are facing

price competition in their own markets and continue to exert price

pressure on local bearing suppliers. The growth of Indian middle class

with increasing purchasing power along with strong growth of economy

over the past few years will accelerate demand from the automotive

industry and other sectors like steel, power & heavy engineering, thus

providing a favorable market environment for the bearing industry.

Over the last few years, there has been sharp increase in the prices of

steel which forms the basic material for bearings and also currently

increase in fuel prices which has affected to the demand of automobiles

and indirectly to the bearing industry. The overall margins of bearings

manufacturer are under severe pressure. The company expects that there

will be a risk on its margins on account of intense competition from the

unorganized sector in the domestic industry and flow of cheap imports of

bearings from china and other low cost countries. To dilute this risk

besides any cyclic fluctuations in bearing demand from Automotive or

various other industries, the company will focus on technologically

advancement and more profitable products/market segments. The

company will continue to work in the areas of higher productivity, better

efficiency and cost reductions in order to grow.


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CHAPTER 2

CONCEPTUAL FRAMEWORK

CUSTOMER SATISFACTION

Customer satisfaction means giving the customers what they really want,

when they want it and the way they want it. It involves understanding

customer expectations and meeting them fully. It can be defined as an

outcome of purchase and use resulting from the buyers comparison of

rewards and the costs of the purchase in relation to the anticipated

consequences. Customer is an individual or an organization. Their

requirements are very similar.

Conformance of services to their requirements and its performance

in actual stage

Competitive prices

Quality and reliability

Prompt delivery

Service

CUSTOMER SATISFACTION NEED

The age of mass production and mass distribution welcomed by most

customers and organizations, has had one negative consequence, it has

distanced those who produce goods and services from those who

consume them. In the era preceding mass distribution, producers found

out very quickly how satisfied or dissatisfied their customers were in the

course of their frequent and necessary interaction with their customer.

This face-to-face interaction reminded the producers daily of thesovereignty of customers. The feedbacks were readily accepted from the


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customers and were adopted for making desired changes to improve their

services and improve customer satisfaction. So customer satisfaction was

a daily phenomenon.

Enter the era of mass distribution and the channels of distribution created

to disseminate products and services. This has resulted in distancing

customers from the producers by the distribution channels. Intermediary

institutions maintained this pipeline of products and services whose job

was to move the product or services from the producer to end customers.

A natural reaction for the producers was to give up or delegate

responsibility for customers servicing, depending on newly created

intermediaries to look after customers satisfaction. Delegating

responsibilities was a bad idea in two respects: first, it eliminated once

and for all direct interaction with customers. Second, customer became a

missing component in the producers decision set.

IMPORTANCE OF CUSTOMER SATISFACTION

Differentiation strategy: -

Satisfaction is quickly becoming the key to competitive posture within an

industry. Initially, products or services secure life in the market by

fulfilling a basic need. But only offering minimal functionality grants a

product nothing than a commodity status. To ensure long-term market

success, businesses have created brands. Brands allowed businesses todevelop and sustain an image, differentiating one anothers products in

the eyes of customer. Today most companies are leveraging branding to

its maximum benefit.

To further differentiate brands, customer satisfaction is the most likely

next strategy. Companies are realizing that the brand that best satisfies its

customers not only keeps them longer, but also benefits from positive

word of mouth.


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Improved profitability: -

There is both an intuitive belief and empirical evidence that improved

customer satisfaction will increase organizational profitability.

Improved customer retention: -

Satisfaction extends customer lifetimes and lifetime values. Also focusing

on satisfaction helps to estimate negative word if mouth of dissatisfied

customers. Losing a not satisfied customer is more severe than it sounds

because one dissatisfied customer may speak to as many as nine others,

increasing its dissatisfaction by nine folds.

Improved market share: -

There are always four sources of business for a firm. Four sources of

customers in any purchase decision have been identified as: retained

customers, customers switching from competition, customers new to the

category and customers leaving the category. Different probabilities of

success are associated

with each of these four classes of customers because retained customers

exhibit probability for additional business, they deserve more attention

and focus than they currently receives.


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Customer Satisfaction has long reaching impact on the current and

perhaps future viability of an organization. The cycle suggests that

satisfied customers tolerate higher margins that can be used to better pay

employees. This boosts employee moral, reducing employee turnover,

which in turn helps to produce more satisfied customers and so on.


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BY PRODUCT OF CUSTOMER SATISFACTION

Thus by enhancing the relations with the customers by taking an initiative

towards their satisfaction thereby attracting them will ultimately improve

their perception of value towards the organization which will lead toincrease in profits.


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ROLES OF CUSTOMER SATISFACTION MEASUREMENT:

Information:

The primary intention for measuring customer satisfaction is to collect

information regarding either what customers report needs to be changed

( in a product , service , or delivery system ) or to assess how well an

organization is currently delivering on its understanding of these needs.

This is an informational role. As such, marketing research and

psychological measurement have much relevance.

Communication:

The very act of surveying customers conveys a very positive message; the

organization is interested in its customers well-being, needs, pleasures,

and displeasures. While this is admittedly a marketing message , there

is nothing wrong in allowing a survey to serve both the informational and

communication roles.

Thus the image of the organization in the customers mind regarding its

offerings becomes the reality related to its products and services offered.


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HOW TO ACHIEVE CUSTOMER SATISFACTION?

CAN 100% CUSTOMER SATISFACTION BE ACHIEVED?

It is not possible to achieve

100% customer satisfaction

ever. Reason being simple

that every time the

organization tries to meet

the customers expectation,

the level of expectation

increases next time thus

there is always some gap between the two. The organization can at least

try to always keep on meeting or staying close to customer expectations

so that the gap between the service expected and actually delivered

doesnt increases leading to dissatisfaction


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IS CUSTOMER SATISFACTION MEASUREMENT STATIC?

As discussed earlier that there is always some between what is expected

and what is actually delivered, thus customer satisfaction measurement

process is dynamic and not static, thus it should be practiced on a

continuous basis for future improvements.

WHOSE RESPONSIBILITY IS TO MEASURE AND MANAGE

CUSTOMER SATISFACTION?

Its the responsibility of the management to take the initiative and

measure the customer satisfaction but it is the responsibility of the whole

organization to manage and improve.


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A nave view of business might suggest that profit is the appropriate goal

of an organization, which is a very shortsighted view. From a practical

viewpoint, the primary goal of an organization has to be customer

retention. Only with a steady base of customers can an organization hope

to make a profit. And only by first satisfying customers can a businessever hope to retain its current customers.

COMPLAINTS AND CUSTOMER SATISFACTION:

Frequently businesses operate on the principle that if things go wrong,

they will hear about it from their customers. Countless investigations

document the fallacy of relying on customer complaints. In the first place,


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50% of customers who experience a problem never complain to anyone!

Of the remaining half, most (45%) complain only to frontline personnel

who either fail to escalate the problem up to management and/or

mishandle solving the problem. Only 5%(one unhappy customers in 20)

of all customers who have a problem actually voice it to management. So,

complaints are an inefficient method with which to monitor customer

satisfaction.

EFFICIENT METHOD OF CUSTOMER SATISFACTION

Thus the organization should take

the initiative to reach out to its

customers for the valuable feedback

related to its products and services

offered. The feedback given should

be analyzed thoroughly to measure

customer satisfaction; this process

should be repeated after a pre

decided gap of time frame not only

to measure but also to improve customer satisfaction in long run.

WHAT IS THE ULTIMATE GOAL?

The ultimate goal of any organization should be to position itself as

a better product and service offering organization through continuous

measurement and management of customer satisfaction.


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CHAPTER 3

INDIAN BEARING INDUSTRY- A PROFILE

The Bearing manufacturing activity in India started in the late 40s with

the production of small and standard bearings.

The Indian industry today manufactures small and medium bearings

mainly in six categories.

1. Ball bearings.

2. Cylindrical roller bearings.

3. Tapered roller bearings.

4. Spherical roller bearings.

5. Needle roller bearings.

6. Cartridge bearings

Bearings are components used to reduce or eliminate friction between

moving parts, which minimises wear and tear of machines and improves

machine performance. There are two types of bearings, ball bearings and

roller bearings. Roller bearings are of different types such as tapered

roller bearing (TRB), spherical roller bearing (SRB), cylindrical roller

bearing (CRB), and needle roller bearings (NRB), which have high end

applications in commercial vehicles, tractors, railways, heavy engineeringand industrial gears. Ball bearings, on the other hand, are used for simple

purposes such as in fans and two wheelers.


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Market Share of Various types of bearings

Ball Bearing

54%Taper Roller

30%

Cylindrical Roller

7%

Needle Roller

6%

Spherical roller

3%

Bearing can be used to provide sliding contact between mating parts or

rolling contact between the mating parts. Hence broadly the bearing can

be classified into two main types:

Plain Bearings: Used to minimize "friction" by providing sliding

contact between mating parts.

Rolling Contact Bearings: Used to minimize "friction" by

providing rolling contact between mating parts.

Plain Bearings: Plain bearings operate on the principle of Boundary

layer lubrication. The load carrying capacity of plain bearings depends on

the type of film which is formed between the mating surfaces.

Rolling Contact Bearings: Rolling Contact substitute a rolling element,

ball or roller, for a hydrodynamic or hydrostatic fluid film to carry an

impressed load without wear and with reduced friction. Because of their

greatly reduced starting friction they have acquired the common

designation of Anti-friction bearings. Normally made with hardened

rolling elements and races, and usually utilizing a separator to space the


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rolling elements and reduce friction, many variations are in use

throughout the mechanical and electrical industry.

Types of Rolling contact bearings: The general types are usually

determined by the shape of the rolling element, but many variations have

been developed which apply conventional elements in unique ways. Thus

special bearings can be procured with races adapted to specific

applications.

Types of Rolling contact bearings:

Ball Bearings

Taper Roller Bearings

Cylindrical Roller Bearings, Spherical Roller Bearings

Needle Roller Bearings.

Characteristics of Rolling Contact Bearings: The static and kinematic

torques of rolling element bearings are generally small and in many

applications are not significant. As compared to sleeve bearings, ball and

roller bearings offer Low starting friction, less axial space, Easy

replacement. For shock loads and heavy loads of short duration roller

bearings are usually preferred.


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Collaboration with foreign companies

Indian company Collaborator

SKF Bearings SKF, Sweden

National Engineering

Industries

NTN, Japan, BRENCO U.S.A. , Izumi Kinzoku

Ltd., Japan

NRB Bearings Torrington, USA & Nadella, France

FAG Precision Bearings FAG, Germany

Timken Timken, USA

Bimetal Bearings Clevite, USA

Tata Bearings -----------

ABC Bearings NSK, Japan

Today the industry is meeting around 70% of its demand for common

varieties and sizes of bearings and rest is imported. The industry has

established a highly diversified product range of around 500 types of

bearings. Automobile industry accounts for bulk of the total demand of

this industry. Given the rising production in auto sector, the demand for

bearings is going to increase in coming years. The production for the

year 2005-06 was 2705 million numbers.

Almost all the units have foreign collaboration. The Indian Bearing

industry makes around 500 types of bearings as against over 30,000 types

of bearings being used by the Indian industry.

In our large country They hardly manufacture 2-3% of the total range

being offered around the world. And the industrial units--however big or

small--are mainly dependent on imported stuff. Our manufacturers in


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India are small producers as compared to the volume of requirements

received by the bearing traders.

DISTRIBUTION OF PRODUCTION:

The bearings industry can be further sub-segmented into ball and roller

bearings. Roller bearings further are of four types - taper, cylindrical,

spherical and needle roller bearings. During the past six years, the highest

growing sub-segments have been cylindrical roller and needle roller

bearings. Both these have grown on a lower base.

Bearing Type Share (%)

Ball Bearing 54

Taper Roller 30

Cylindrical Roller 7

Needle Roller 6

Spherical Roller 3

Distribution Of Production

5430

7 63

Ball Bearing

Taper Roller

Cylindrical

RollerNeedle Roller

Spherical Roller

INDUSTRY STRUCTURE:

Bearing Industry in India can be divided into three segments.


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Industry structure

55%

15%

30%1

2

3

1. Organized sector.

2. Unorganized sector.

3. Imports.


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MARKET SHARE OF MAJOR PLAYERS:

Name of the Company Total Sales in FY 08-09 (In crores)

-SKF 594

-NEI (NBC) 409

-FAG 360

-NRB 225

-ABC 154

-TATA 135

-TIMKEN 126

-HMT 24

-ARB 12

594

409360

225154 135 126

24 120

100

200

300

400

500

600

700

SKF

NEI(NB

C)FA

GNR

BAB

CTA

TA

TIMKE

NHM

TARB


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MARKET DYNAMICS:

Original Equipment Manufacturers (OEM) Market:

The OEM market for bearing represents the demand arising out of

manufacturing new vehicles and industrial manufacturers. The demand

for the OEM market directly depends upon the growth in user industry.

OEM market accounts for 60% of total demand of bearing industry. This

market is characterized by requirements of high quality, stringent delivery

norms and lower margins.

Replacement Market:

The replacement market represents the demand arising on account of

replacing the used and worn-out bearings. The size of replacement market

is dependent on equipment population and frequency of maintenance.

Replacement market accounts for 40% of total demand for bearing

industry. The margins in this market are higher.

The replacement market is highly price sensitive and has higher share of

unorganized players and cheaper imported bearings.

OEM Market 60%

Replacement Market 40%


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Market Dynmics

40%

60%

Replacement

Market

OEM Market

SHARE OF USER SEGMENT:

Automobile:

India is the: -

Largest Three Wheeler Market in the World

2nd Largest Two Wheeler Market in the World

4th Largest Passenger Vehicle Market in Asia

4th Largest Tractor Market in the World

5th Largest Commercial Vehicle Market in the World


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Indian Auto Industry

76%

15%4% 5%

Two Wheelers

Passenger

Cars

Commercial

Vehicles

Three

Wheelers

Engineering: The engineering segment mainly comprises of capital goods

and heavy engineering industry. The demand growth from OEM segment

here mainly depends on the growth of industrial and infrastructure related

activities. Increasing demand for industrial products has boost demand

for engineering goods.

Electrical equipments: Includes manufacturers of fans, compressors,

motors etc. This segment mainly consumes smaller bearings. Both small

and large players manufacture these products.

Railways : Railways is quite a big consumer of bearings in India. It uses

bearings in locomotives, wagons, coaches etc. It requires Roller Bearing

in Axle Box, Spherical Roller Bearing, Cartridge Tapered Roller Bearing

etc.

Sector % Share

Automobile 45

General Engineering 28

Heavy industries including railways 21

Electrical equipment & others 6


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Share of User Segment

45%

28%

21%6%

Automobile

Gen. Engg.

Heavy indusincludingrailways

Elec. Equip.

OPPORTUNITIES FOR THE BEARING INDUSTRY:

1) India is now amongst one of the most preferred destinations for

exporting hub for most of the major global OEM players. Following is

just an extract of list of companies already outsourcing from the country.

Hyundai Export base for small cars

Ford exporting CKDs of Ikon to South Africa and other

countries

Tata Indica being sold in UK under the Rover brand

20,000 pa

Skoda Hub for exports of cars to neighboring countries

General Motors Global Purchasing Team

Volvo Global buying team

Delphi International purchase office

Renault scouting for truck part suppliers


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Toyota is investing Rs 380 crore in a plant to make

manual transmissions. It will supply manual transmission

gearboxes to its worldwide markets, production capacity

160,000 units annually.

Maruti is putting up an Rs 350 crore diesel engine plant.

Maruti plans to start making its own common rail direct

injection diesel (CRDi) engines (using Fiat technology) from

its new plant in Haryana in 2006.

Fiat's India operation is working towards becoming a

global sourcing hub for components. It exported components

worth E7 million last year to its operations in South Africa.

2) Passenger cars estimated to touch two million in 2010 and three

million in 2015.

3) Higher GDP growth.

4) Indias huge geographic spread Mass Transport System

5) Increasing Road Development. E.g. Golden Quadrilateral project,

Pradhan Mantri Gram Sadak Yojna.

6) Replacement of aging four wheelers.

7) Graduating from Two-wheeler to four-wheeler.

8) Increasing dispensable income of rural agricultural sector (more

tractors)

9) Growing Concept of Second Vehicle in Urban Areas.

10) Reduction in excise duty to zero, in the tractor segment.

11) Bearings are used in more than 50 % of the auto compo


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THREATS TO THE BEARING INDUSTRY:

Import Threat:

The custom duty on imported bearings including excise is 36% (aprox.)

expected to come down further in line with WTO agreements. Reduction

in import duty is likely to attract more imports in the future. The imported

bearings are targeted mainly at the replacement market. Imports are

widespread in the case of ball bearings. Coupled with inflow of spurious

products the organized sector is also facing threat from smuggling of

goods. Major imports of ball bearing are from Japan, China, Russia andRomania.

Spurious Products:

Spurious products form a significant part of the Indian bearing market.

Spurious products mainly cater to the replacement market, which is

price sensitive. Spurious bearings are of poor quality and are

relatively unsafe and unreliable. They use material, which are of

inferior quality and the workmanship is also poor. The presence of

unorganized sector in the bearing

Industry poses a real threat to the organised players.


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Increase in Raw Material Prices:

Steel and alloy steel forms the basic material for the manufacturing of

bearings, account for almost 45% of total net sales. A steel price therefore

has significant impact on margins. The significant increase in steel prices

has resulted in pricing and margin pressure on bearing manufacturers.

Companies expect that the steel prices will show an upward trend oratleast remain firm in the coming future.


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CHAPTER 4

COMPANY PROFILE

Much of ARB's success as a bearing manufacturer is largely due to its

passionate pursuit of quality of lower cost. With a tremendous focus on

manufacturing quality bearings and restrains on cost, it comes as no

surprise that ARB bearings is among India's prominent engineering

companies. Headquartered at Delhi, the company was incorporated in

1990. It is run by professionals with over forty years of experience in the

bearing industries. With in a short duration since inception, the company

has carved a niche for itself in various segments ranging from

automobiles to industrial machinery to household appliances.

What was initially a private conglomerate is today a public limited

company with an annual growth rate of 40%. Thanks to the network of its

distributors , dealers and OEMs countrywide, this growth rate has

remained consistent over the years. What's more, with Government Dept.,

State Transport, Ministry of Defence and overseas buyers as clients, it is

also keeping the wheels of the national economy running.

When you buy ARB bearings, you not only buy our products, also buy

peace of mind. Manufactured and tested in hi tech plants with zero

defect products which sets to international parameters, our products are

made for the long haul for various industries.This self assurance comes from the strong infrastructure and

technological capabilities, which is the strength of ARB bearings. From

the material for the bearings to designs to the final production, every

stage is a unique exercise in R&D. They also produce customized

bearings.

They have an entire hierarchy of quality testing systems in place. This

system ensures that everything is up to the specified standards.


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History

1990Company Formed with corporate office as ARB Bearings Pvt. Ltd. In

New Delhi & started Production of Taper Roller Bearings.

1996 Imported equipped Machinery & Precision Testing Equipments.

1996From this year ARB bearings Started its export, initially Exported

bearings to the Middle East.

1997Product range expanded by the Commencement of Spherical &

Cylindrical Roller Bearings.

1997Company was awarded ISO-9002 Certificate by KPMG (Peat Marvick-

USA)

1998 ARBs exports expanded. (Started Exporting to USA & Sri Lanka)

1998Commencement of Ball Bearings into the products line, Production at

separate plant in-Unit-II (Badli)

1999Introduction of UCP (Pillow Block) bearings and production of Double

Row Angular Contact Ball Bearings started.

2000 Commencing of Self Aligning Ball Bearings production.

2000Took over NYK Brg. Co. in Delhi with NYK Brand with a capacity of 6

Million bearings /Annum.

2004 ARBs export touched new heights.

(Existing Production Capacity of all types of bearings increased from 6

Million to 12 Million.)

2007 A new plant started in Himachal Pradesh (K.A.)


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Strengths

There are moments when a telling glance or a passing remark can capture

the essence of a thing. In their case, it's the machine operator's or the

motorist's smile. At the heart of every machine in motion, you will find

ARB bearings performing smoothly and perfectly.

ARB bearings sincerely focuses on the various aspects which creates a

never ending bond between the customers, employees and the company.

The company holds various strength which gives ARB a competitive

edge in the market for which it is highly recommended and popular. The

various principles they follow makes it their strength and helps them to

sustain in the long haul.

High Priority given to Customers Feedback with competitive

pricing.

Integrated manufacturing plant with zero defect products and hi tech machines.

Professional Working Environment.

Potential of increasing productivity at optimal operational costs.

Power to reduce time to market.

They never lose sight of their agreed strategy.

They constantly strive hard to match our products to the

satisfaction of their customers.

Customers are at the center of everything They do and that is reflected

in their companys vision and values. While their vision defines their

destination, their core values serve as their roadmap, guiding their actions

for the benefit of all of their stakeholders.


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VISION

To establish as an international benchmark in quality, innovation,

environmental friendly & competitive organization, specialized in

complete bearings based solutions.

To become the true leaders in the bearing industry by offering quality

products at competitive cost.

Continual improvement & up gradation in the manpower and

machinery by providing in house awareness through training programs

& workshops.

To be a pacesetter for times ahead & the most preferred choice

nationwide & globally.

Dedicated to deliver unparalleled value and innovation all around the

world.

MISSION

To be a true leader in the bearing industry, by expanding into more

automotive and industrial markets and enabling everyone to be

eligible for their services.

To offer bearing industry with superior products & services bybuilding up value for their customers, their business, as well as their

employees and adopting Principles of Excellence that provides an

effective corporate governance framework.

To contribute and participate in the task of nation building use

environmentally safe materials and designs and to make India forward

to the rank of "Most Industrialized Nation in the 21st century".


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Their endeavor to conduct their business affairs with the highest

ethical standards and work diligently to be a respected corporate

citizen worldwide.

Continuous and consistently upgrade their knowledge, skills and work

processes leading to a greater relationship with their customers,

suppliers and community at large. And by expanding into more

automotive and industrial markets.


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PRODUCTS
http://www.arb-bearings.com/needle-roller-bearings.htmlhttp://www.arb-bearings.com/spherical-roller-thrust-bearings.htmlhttp://www.arb-bearings.com/sphericalrollerbearings.htmlhttp://www.arb-bearings.com/cylindrical-roller-bearings.htmlhttp://www.arb-bearings.com/single-direction-thrust-ballbearing.htmlhttp://www.arb-bearings.com/tapered-roller-bearing-products-inches.htmlhttp://www.arb-bearings.com/four-point-contact-ball-bearings.htmlhttp://www.arb-bearings.com/self-aligning-ball-bearings.htmlhttp://www.arb-bearings.com/Angular-contact-double-row-bearing.htmlhttp://www.arb-bearings.com/singlerow-deep-groove-ball-bearing-inches.html


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http://www.arb-bearings.com/grease.htmlhttp://www.arb-bearings.com/wheel-bearings.htmlhttp://www.arb-bearings.com/steering-bearing.htmlhttp://www.arb-bearings.com/clutch-release-bearing.htmlhttp://www.arb-bearings.com/water_pump_bearings.htmlhttp://www.arb-bearings.com/kingpin_bearings.htmlhttp://www.arb-bearings.com/UC-type-ball-bearings.html


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Quality Policy

ARB Bearings are proud to be a leading bearing brand of Asia. They have

achieved a new high by creating new ground of targets and quality. Theproduct design starts at understanding the customer requirements in terms

of products quality, cost, delivery and assessing their capability to match

the same. They are equipped with the latest design and modeling tools.

Activities of design and development department are :

Designing ToolsAuto Cad, 3d Modeling, Stress Analysis

Design Systems

3D Problem Solving, Reverse Engineering

Design Review/Verification

Design Lab & Systems

Standards Room

Metallurgical Microscope

Micro Structure

Profile Projecter

Talyrond & Form Talysurf

Roller Sorting Machine

Bearing Noise Level Tester

Bearing Vibration Tester

At ARB Bearings the process approach is adopted for any activity related

to quality. The chains of activities or process are results in the stronger

and defect-free product and service quality. The further activities/process

is monitored and corrective and preventive actions are initiated as and

when required.


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This approach emphasizes the importance of:

Understanding and fulfilling customers requirements.

The process is considered as added value.

Obtaining the performance and effectiveness.

Continual improvement.

Professional Working Environment.

Never losing sight of their agreed strategy.

The inspection and test setup is a tool to evaluate the competitiveness ofbearing industries. At ARB Bearings the world class quality precision

equipments and trained manpower are their valuable assets.


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FINANCIALS


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Infrastructure

Network:
http://www.arb-bearings.com/images/infrastructure10big.gifhttp://www.arb-bearings.com/images/infrastructure8big.gifhttp://www.arb-bearings.com/images/infrastructure6big.gifhttp://www.arb-bearings.com/images/infrastructure4big.gifhttp://www.arb-bearings.com/images/infrastructure3big.gifhttp://www.arb-bearings.com/images/infrastructure2big.gifhttp://www.arb-bearings.com/images/infrastructure1big.gif


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OEM CHAIN

CLIENTS


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ORGANISATIONAL STRUCTURE

FOUNDER

(SURENDER GOEL,PRAMOD GOEL,VINOD GOEL &SUNIL GOEL)

CEO

(SURENDER GOEL)

COMMUNICATION EXECUTIVE HEAD ORGANISATION EXECUTIVE HEAD

DECISION MAKER HR & COMMUNICATION

MARKETING DOMESTIC MARKETING OEM MARKETING EXPORT

FINANCE PRODUCTION QUALITY CONTROL NBD & PR


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SWOT ANALYSIS

Strength:

Strong R&D department.

Sound HR practices and vast pool of knowledge workers.

Leading manufacturer of Taper roller Bearing.

Accreditation to ISO/TS 16949:2009 CO

Unparalleled range from 20 mm to 2000 mm diameter

bearing, that serves the core sector of transport, thermal power,

steel, heavy industries and many more.

Participation of employees through suggestion schemes,

quality circle, committees etc.

Automation at Taper Bearing assembly.

Distributors across the nation.

Sound marketing system and management.

TQM

Weakness:

Advertising lacks punch not enticing for the end consumer.

Low Exports.

Internationally low brand image.

Focusing on stockiest & business buyer rather than end

consumers.


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COMPETITORS

Major Competitors:

1. SKF

2. FAG

3. NRB

4. TATA

5. TIMKEN

6. ABC

These are the major competitors of ARB.

They have their own strength and weakness. SKF is the biggest

competitor among these.


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CHAPTER 5

RESEARCH OBJECTIVE AND METHODOLOGY

Research Objectives

To analyze the present trends in the Indian bearing industry.

To study the competitiveness of ARB Bearings Ltd. among bearing

manufacturers.

To conduct a end user survey to gauge their satisfaction with

reference to ARB Bearings Ltd. in regards to:

o Product Quality & range

o Price and availability

To analyze the steps taken by ARB Bearings to improve customer

satisfaction.

To study the various steps undertaken by ARB Bearings to

retaining the customers.

RESEARCH METHODOLOGY:-

The methodology adopted for this research was a survey of Distributors,

Spare part Dealers, Mechanics, and workshops of various companies.

These people were asked various questions regarding bearings used in

various vehicles and latest models (existing in Indian market). The survey

was done for two wheelers, three wheelers, four wheelers, MUVs,

LCVs, HCVs.

The sample chosen for research included workshop owners /mechanics

working in and around 20 locations in Delhi. Total number of Workshops

& Distributors/ stockiest took part in this survey were 50.


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The secondary data was collected from various companies

catalogs, which manufacture the bearings in India. Secondary data

were helpful, when survey was done.

Samples for survey:

Workshops for Cars /MUVs /SUVs.

Workshops for Two wheelers.

Workshops for Three wheelers.

Mechanics

Distributors of various bearings Brands.

Spare part dealers also dealing in Bearings.

Workshops of various companies.

SCOPE OF THE STUDY:

The worksheet was administered to the Workshops/Mechanics &

Distributors/Stockiest present in Delhi region. So the received responses

are a picture of market scenario of Delhi only and the results should not

be considered to be representative of the scenario of the whole bearings

industry throughout India or any location other than Delhi. Whatever

conclusion may come out from the survey, the user of the information

should keep this fact in mind that this is only representative of thescenario of Delhis bearing market and the information so obtained

should not be applied elsewhere without proper survey of that particular

area.


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CHAPTER 6

DATA ANALYSIS AND FINDING

B) Specify the brand name of bearing you aware. (Total Respondent:- 50 Retailers)

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

FAG 50 100

SKF 50 100

NBC 30

HMT 5 10

ABC 15 30

TATA 32 64

DELUXE 25 50

TIMKEN 13 26

NTN 20

ARB 21 42

0

5

10

15

20

25

30

35

40

45

50

FAG

SKF

NBC

HMT

ABC

TATA

DELUXE

TIMKEN

NTN

ARB

Interpretation:- This question is shows the brand awareness in public,

from this interpretation the company can seen their active competitor in

market. From this result company can make their marketing strategy.

Here They can see that SKF, FAG, TATA are active competitor to ARB.


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C) Which brand of the bearing you stock? (Total Respondent:- 50 Retailers)

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

FAG 40 80

SKF 48 96

NBC 35

HMT 8 16

ABC 27 54

TATA 18 36

DELUXE 11 22

TIMKEN 26 52

NTN 10ARB 16 32

0

5

10

15

20

25

30

35

40

45

50

FAG

SKF

NBC

HMT

ABC

TATA

DELUXE

TIMKEN

ARB

NMB

Interpretation This question shows the brand preference of stockiest.

Which, make company to understand the preference of stockiest so that

they can develop idea to capture new market and sustain in exiting

market. Give idea about promotional activity.


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D) What factor you are considering while stocking any brand? (Respondent:- 50

Retailers)

Variable No of Respondent Response (%)

Demand 45 90

Profit Margin 48 96

Distributor service 35 70

Quality 30 60

Others 20 40

0

5

10

15

20

25

30

35

40

45

50

Demand

Profit Margin

Distributor service

Quality

Others

Interpretation The above question has been formed to know different

factor which is affecting in stock bearings like demand, profit margin,

distributor service, quality and others. According to which I had severed

and find that profit is prime factor of any stockiest and then demand.


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E) Form which sources you aware about ARB bearing? (Respondent:- 50

Retailers)

Variable No of Respondent Response (%)

Advertisement 25 50

Sales man 36 72

Mechanics 38 76

Retailer 18 36

Promotional Activity 20 40

News paper 10 20

0

5

10

15

20

25

30

35

40

Advertisement

Sales man

Mechanics

Retailer

Promotional ActivityNews paper

Interpretation This question is mention that from which source people

can aware about ARB Bearings. And I take in to consideration different

factor from which through salesman and mechanics more number of

people know about ARB Bearings.


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(G) Rate below companys bearing according to its quality. (Respondent:- 50

Retailers)

Variable Excellent Good Satisfactory

FAG 45 5 0

SKF 50 0 0

TIMKEN 18 27 5

TATA 10 28 12

HMT 7 6 12

NRB 15 17 37

ABC 10 20 5

ARB 4 9 13

0

5

10

15

20

25

30

35

40

Advertisement

Sales man

Mechanics

Retailer

Promotional Activity

News paper

Interpretation The above question has been formed to know the quality

rating for different brand of company. You can see that from quality point

of view FAG and SKF is leading the market.


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H) Rate below companys bearing according to its price margin.

Variable Excellent Good Satisfactory

FAG 30 12 8

SKF 35 10 5

TIMKEN 18 27 0

TATA 10 28 7

HMT 7 6 12

NRB 15 17 2

ABC 10 6 0

ARB 4 9 13

0

5

10

15

20

25

30

35

Excellent Good Satisfactory

FAG

SKF

TIMKEN

TATAHMT

NRB

ABC

ARB

Interpretation This question shows that which brand having highest

price margin in the market. From that company can aware that which

brand gives competition on price margin and from how much margin. So

that company also can develop new pricing method which can lead to

success in capturing highest market share. From above graph SKF is

having highest margin, FAG is on second position followed by ARB.


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CHAPTER 7

CONCLUSION & RECOMMENDATIONS

There are so many good competitor of ARB in market like SKF, TATA,

TIMKEN, and NRB. In quality accept SKF & FAG no brands compete

with ARB. All the major player of the organization sector has good

presence in the market as well as Import & Un-organized sector also

plays a crucial role due to its cheaper price and replacement guarantee.

Market potential is increasing at slow pace while supply increasing day to

day due to un-organized and local brand based bearing. In this situationmarket is become more price sensitive .So one can easily enter into the

market on price base. So company has to maintain its quality with low

price. And main thing on which company has to emphasize is local

competitor. Because they sale product with low price and because of that

customer more attract toward them. So market potential of company is

affected due to these local and Chinese brands. So if company have to

maintain there customer and capture new market than they have to

concentrate on price, replacement, service, pricing scheme, advertising,

brand awareness , customer satisfaction and also create good relationship

with customer.

RECOMMENDATIONS

ARB mainly deal with mechanics so they are prime customer of

company. So they have to develop new scheme for them.

Local brands are directly affected to bearing market because of there

low price. So ARB has to maintain its quality and make some pricing

strategy.

Company mainly focused on international level automobile exhibition

or fair for the advertisement of company but at same time they also


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have to participate in some local fair and exhibition so that local

mechanics and end user more come to know about the bearings.

Company must have to improve their relation with retailer because

they thing that ARB bearing is not much interested in replacement

market.

The distributor and Marketing Sales Representative should be advised

to respect the small orders of C class retailer (Sales turn over less then

Rs.4 lakhs) because around 48 % of retailers are C class. As per my

survey TATA bearing have consistent approach towards all the retailer

and also they concentrated on small turn over retailer equally. So ARB

also has give equal importance to C class retailer.

To come in touch with people directly ARB have to give some

advertisement activity like give advertisement in local news papers, or

sponsor some social event.

ARB should increase the range of bearings. ARB manufacturedover 500 types of bearing but it is not enough for existing in long term

market.

ARB is the no. 1 supplier to the Indian railway, so it will be best for

ARB to become no. 1 in other sectors like automobile and industry

also.

ARB is the strong brand in the market so it should keep its popularity

by keeping competitive prices with best quality.

ARB should keep on increasing the range of bearings as the models

launched in the market and before launching the models.

Duplicate bearings are being sold in the market with same packaging

and same printing of ARB . These bearings looks like 100%ARB

bearing, but these bearings have poor quality as compare to real ARB .


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These bearings are spoiling the name of ARB . Because of these

bearings manufacturers and retailers ARB is getting loss and his

image in the market.

While purchasing bearings consumers think they will be using best

quality bearing (ARB ), but these bearings does not work as ARB

bearing does and they get fail very soon. So again consumer does not

purchase ARB .

So it is required to take steps against these manufacturers and whoever

sold these bearings. For keeping best image and getting more profit.

ARB does not have good image and complete range for Tata trucks.

So these bearing should be manufactured for getting profit and

competition to SKF and Timken.

As well as ARB does not have range for latest cars which are being

launched day by day in the market, so there is also required to

manufacture requires bearings for organization growth.

It was seen when survey was being done, that ARB does not give

good schemes like coupons, any other prices to mechanics so they

dont like to purchase only ARB . They like to purchase the bearing

with good quality at reasonable price and which gives them coupons

and other things. So ARB should make some schemes to keep

mechanics happy.

It was seen that advertisements of ARB are not adequate, so there

should be aggressive advertisements.

There is required to meet continuously with mechanics in their own

garage or their workshops.

List of new sizes to be developed is made and is being retained to

organization, as list is confidential.


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BIBLIOGRAPHY

www.bearingsindustry.com

www.tradeinfoline.com

www.bearingtrades.com

www.bearingindia.com

Product Manual of ARB


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ANNEXURE

ANNEXURE I: QUESTIONNAIRE

I am conducting a market research to know the perception and position of

the different wheel bearing companies in the replacement market and also

to know the acceptability of wheel bearing kit. Kindly give your co-

operation in filling this questionnaire and enable us to conduct the

research successful.

(A) Personal Details:-

Name:-______________________________________

Shop Name:-_________________________________

Address of shop:-_____________________________

Years of Experiences:__________________________

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

FAG

SKF

NBC

TATA

HMT

ABC

ARB

TIMKEN

NTN


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If other____________

(C) Which brand of the bearing you stock?

FAG

SKF

NBC

TATA

HMT

ABC

ARB

TIMKEN

NTN

If other____________

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

Demand

Profit Margin

Distributor service

Quality

If other_____________

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

Advertisement

Sales person of company


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Mechanics

Retailer

Promotion activity

News paper

If other___________

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

___________________________________________________________

________

(G) Rate below companys bearing according to its quality.

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

FAG

SKF

NBC

TATA

HMT

ABC

ARB

TIMKEN

NTN

If other____________


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(H) Rate below companys bearing according to its price margin.

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

FAG

SKF

NBC

TATA

HMT

ABC

ARB

TIMKEN

NTN

If other____________


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THANK YOU

Report Bit Arb 12

Documents

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