SUMMERTTRAININGTREPORTTON

Escorts Ltd

For
Company Based Research

By
NAME OF CANDIDATE: Dhruva Maurya
ROLL NUMBER: T21155

In Partial Fulfillment for the award of the degree

Post Graduate Diploma in Management

Batch

Specialization: Fiancé and Investment and Treasury Management

New Delhi Institute of Management

50T(B&C),60, Tughlakabad Institutional Area, New Delhi-110062
E-mail: [email protected] Website: www.ndimdelhi.org
Introduction
Escorts Limited is an Indian multinational conglomerate that operates in the sectors of
agricultural machinery, construction machinery, material handling, and railway equipment. Its
headquarters are located in Faridabad, Haryana. The company was launched in 1944 and has
marketing operations in more than 40 countries.

Board of Directors

Nikhil Nanda
The product offered by a firm and its competitors

The product offered by the firm

Escorts Agri Machinery

EAM’s advanced Agri-machinery & crop solutions help enhance agricultural productivity and
add value to a farmer’s life
Escorts Construction Equipment
ECE’s vast range of construction & material handling equipment supports India’s infrastructure
growth
Railway Equipment Division
RED’s wide array of railway products aids the modernization of Indian Railways
Competitor of Escorts Ltd
1 HMT- Machine tools Printing machinery Food processing machinery Watches Tractors
Bearings

2 VST Tillers Tractors Ltd- Products, Power Tillers, Tractors, Rice Transplanter, Power Reaper,
Rotary Tillers, VST GroTech Solutions, Power Weeder, Brush Cutter, Hedge Trimmer, Attachments
Do Demand forecasting of the product for the next two year

Below is the sales of escorts for the last 12 years

Period ending 31st

Year March Sales(Crore)
1 2010 2,598
2 2011 3,324
3 2012 4,101
4 2013 4,049
5 2014 6,502
6 2015 4,113
7 2016 3,432
8 2017 4,145
9 2018 5,059
10 2019 6,262
11 2020 5,810
12 2021 7,014

Chart Title
8,000

7,000 y = 291.52x - 582860

R² = 0.5586
6,000

5,000

4,000

3,000

2,000

1,000

0
2008 2010 2012 2014 2016 2018 2020 2022

Demand forecast of next two years

Forecasting equation = Sales=746.7*(year)+2924

Period ending 31st

Year March Sales( Crore)
6593.44
13 2022
Forecasted Data

14 2023 6884.96

Is your forecast matching with the company plans

As per the company’s annual report, the company is not showing any growth in sales. From the
above data, we can see there is a decline in sales growth

What steps is the company taking to meet its proposed forecast demand?

STRATEGY followed by the company

Our focused market strategy of developing a dual distribution strategy for our brands, along with
our unswerving product innovation, positions us well to expand our market share. Our financing
solutions for channel partners, technology-driven sales management and comprehensive after-
sales support give us a unique advantage. Additionally, we see strong development in our global
position, post the kick-off of sales late last year through the global Kubota network.

Our next priority was business sustenance and growth in this challenging environment. It is very
heartening to see that on the business front, the team has continued to improve the performance
on all the three strategy levers of Operational Excellence, Product Offerings and After Sales
Penetration.

In terms of segment distribution, we saw an uptick in our above-40 HP tractors segment, which
accounted for 62% of our domestic sales in FY 2020-21 against 51% in the previous fiscal. This
resulted in significant model mix gains and is also reflective of the success of our new products
in the higher HP range. With continued efforts around channel expansion, our total dealer count
in India is now more than 1,100. We will continue to further expand our dealer network in line
with our dual distribution strategy for both our key brands with a primary focus on our target
markets.
Demand forecast for the 2 competitors and analyze the trend
HMT

Year Period ending 31st March Sales( Crore)

1 2010 424
2 2011 427
3 2012 421
4 2013 354
5 2014 269
6 2015 275
7 2016 228
8 2017 190
9 2018 195
10 2019 263
11 2020 260
12 2021 204
13 2022 153.14 Forecasted Data
14 2023 131.78

Chart Title
450
400
y = -21.374x + 43372
350 R² = 0.7671
300
250
200
150
100
50
0
2008 2010 2012 2014 2016 2018 2020 2022 2024
VST Tillers Tractors Ltd

Year Period ending 31st March Sales( Crore)

1 2010 345
2 2011 427
3 2012 531
4 2013 482
5 2014 624
6 2015 552
7 2016 647
8 2017 675
9 2018 763
10 2019 615
11 2020 544
12 2021 764
13 2022 760.92 Forecasted Data
14 2023 788.55

Chart Title
900
y = 27.633x - 55113
800 R² = 0.6178
700
600
500
400
300
200
100
0
2008 2010 2012 2014 2016 2018 2020 2022
From the above data, we can see an upward trend line in, VST Tillers Tractors Ltd but in HMT
there is a downward trend which can be explained that sales will increase for VST Tillers
Tractors Ltd and for escorts it also shows a downward trend for 2023. That means in terms of
sales VST Tillers Tractors Ltd is leading.
 Artificial Intelligence
What AI tools or technologies are being used in the organization?
Various new technologies and innovations were adopted and absorbed at various manufacturing
units.
Escorts Group is expanding its current deployment of Oracle's Applications ERP software to
cover two new divisions -- a utilization increase of about 40 per cent.
Escorts introduced its automated concept tractor equipped with next-generation digital vehicle
technologies aimed at precision-based farming.
Escorts said it has collaborated with AVL for electric driveline technology, with Trimble for
sensors, controls, water level management system and automated e-steering.
The company implemented Blue Yonder’s Luminate Planning solutions portfolio for
its agricultural machinery business. Blue Yonder partner Cognizant Technology Solutions (CTS)
was the implementation partner for this project.
What processes are being improved with AI/ML implementation? Make a comparative analysis
of the AI/ML implementations in processes of any two competitors of the organization.
Escorts wanted a standardized ERP platform to increase enterprise-wide transparency and ensure
interoperability between its four lines of business.
“Before implementing Oracle E-Business Suite Release 12.1, it was difficult to access financial,
inventory and operational data across divisions, as each group had its own unique master data
codes,” said Vipin Kumar, Group CIO, Escorts Limited. “It was a cumbersome and time-
consuming process to analyze our company’s profitability drivers.”
By consolidating and upgrading four ERP systems onto Oracle E-Business Suite Release 12.1,
the company gained real-time data visibility across its four lines of business. Senior staff can
now access enterprise-wide data with one click and make better decisions by efficiently
identifying the most profitable products, customers, and processes
• Automates Supply Chain Operations and Increases Revenue Opportunities
• Enhances Warehouse Management and Supplier Collaboration.

Mahindra

ASPEN is a real-time business system that provides up to the minute detailed information on key
performance statistics and financials right from the system’s continually refreshed system
dashboard. Use the integrated CRM tool to market to existing customers, expand customer reach,
improve internal communications and quickly access information critical to business.
In the ASPEN Mahindra interface, users submit parts orders directly to the Mahindra Parts
System eliminating the manual work of re-keying orders. And, because our development team
works closely with Mahindra, any additional integration is added as it’s introduced.
.
 Who is the Chief Analytics Officer/Chief Technical Officer/ Chief Data Officer/ Data Scientist in
the organization? Search and collect their profile and contact details.

Anil Kakkar is a head of information technology. He has 21 years’ experience.

LinkedIn Profile
https://www.linkedin.com/in/anil-kakkar-7b24125/?originalSubdomain=in

4. Does the organization have any AI-driven products? If yes, list them and explain them briefly.

tractors with an autonomous concept or self-driving technology aimed at precision-based

farming will help farmers save time and maximise output. The new product is styled by
Germany's Porsche Design, a subsidiary of luxury carmaker Porsche AG.

Escorts has tied up with seven technology majors—Microsoft, Reliance Jio, Trimble,
Samvardhana Motherson Group, WABCO, AVL, and BOSCH—for developing its
innovative farming solutions.

WABCO will provide vehicular controls and automation technology, AVL electric
driveline technology, Trimble will produce sensors and automated e-steering, and
Samvardhana Motherson Group will provide Smart Interface Cabins. Microsoft will help
align these smart devices through IoT and AI-based technology. BOSCH will help in
future emission readiness while Reliance Jio will help enhance the farm machinery life
cycle.

The company also plans to introduce an Uber-like aggregator of farm equipment through
a pay-as-you-go model. The aggregator service, called TRAXI, will connect farm
equipment owners to rent out their products to small and marginal farmers and provide
them with advanced solutions at an affordable price.
5. Does the company use any Digital Reality (AR/VR/MR) technology for boosting its sales and
marketing? If yes, explain them briefly.

The Company is currently not using Digital Reality technology for boosting its sales and
marketing.
6. Customer Acquisition and Retention are the two prime agendas for any organization. What
AI/ML tools/technologies/ strategies is the company using in this direction?

As my given company Escort is a B to C company the main customer segment is from a rural area, using
AI/ML tools will be less effective.
 Digital Marketing
Q1 How many people are following the company’s social media handles?
Currently, 134,224 followers are following the company’s linked account. Apart from LinkedIn
companies have 3729 followers on Instagram.
Q2 what is the most popular social media platform and why?
Compared to all the social media platform and their uses according to Escorts Ltd use LinkedIn the most.
The company has 134,224 followers. The reason why Escorts uses LinkedIn compared to the rest of other
platforms are mentioned below.

• Escorts uses LinkedIn for networking and is still a useful networking tool.
• LinkedIn is completely full of groups that are devoted to specific professional topics.
• If you are creating great content pertinent to your industry, share it on LinkedIn.

Q3 How often posts are being shared by the users?

The Company is not much frequent when sharing posts on LinkedIn. The last post was shared by the
company was a week ago when the company is telling us about the Lohri festival. The Post has been
shared below.
Q4 what is the fastest growing social media platform for them?
According to Escorts LinkedIn is the fastest growing platform because for networking purposes the
company still uses LinkedIn. Although the company is not much active on LinkedIn but still the company
post something regarding the company’s work culture. The company’s followers increase from the
previous year.
Q5 what is the best time to post on social media for the company?
The best times to post on social media overall is 10:00 AM on Tuesdays, Wednesdays, and Thursdays.

• The best time to post on Facebook is 8:00 AM to 12:00 PM on Tuesdays and Thursdays.
• The best time to post on Instagram is 11:00 AM on Wednesdays.
• The best time to post on Twitter is 8:00 AM on Mondays and Thursdays.
• The best time to post on LinkedIn is 9:00 AM on Tuesdays and Wednesdays.

Q6 How Often should they post on social media?

Escorts is not much frequent while posting content on social media handles, The last post was uploaded
by the company was 2 months ago on Instagram and one week ago on LinkedIn.
Q7 which social media platform the company should use to sell the products or services?
Currently, the company is dealing in Agri machinery so right now the company is not using any of the
social media handles to sell the products. Escorts is a B2B and B2C company that prefers offline mode
instead of online mode for selling.
Q8 what kind of content should they post?
They should post the following types of content on their social media handles.

• Work culture in Escorts

• The quality of leaves they use while manufacturing cigarettes.
• They should post about the CSR activities.
• Research and Development & new AI/ML tools and technologies which has been introduced in
the company they should also post about it.

Q9 what kind of content format they should use?

Types of social media content that you can use include quizzes, polls, games, virtual reality, graders,
videos, infographics, calculators, contests, product finders, questions, ask me anything and caption
this photo.
Q10 How can they increase followers on social media?

• Focus on customer service.

• Start by actively engaging your audience, reply to all comments. Post and answer questions in
posts.
• Don't sound robotic. Use language your audience uses and respond so you sound like a real
person.

Q11 what is the company’s overall purpose for having social media profiles?

• Escorts uses LinkedIn for networking and is still a useful networking tool.
• Linkedin is completely full of groups that are devoted to specific professional topics.
• If you are creating great content pertinent to your industry, share it on LinkedIn.
 Human Resource
Q1 Employee count of the company. Gender specification. Managerial staff?
Escorts Limited is an Indian multinational conglomerate that operates in the sectors of agricultural
machinery, construction machinery, material handling, and railway equipment. Its headquarters are
located in Faridabad, Haryana. Escorts Ltd has 10000+ employees across all of its locations.

Q2 Who is heading the HR department? Who are the head training and development officer? Who is the
campus placement head?

Amit Singhal is the chief human resource officer at Escorts Ltd. He has 18 years of experience in
Strategic HR, Business Partnership, Employee Relations, and Culture and Changes transformation
roles.

https://www.linkedin.com/in/amit-singhal-5693415/

Ranjan Jagannath is the head training and development

officer with experience of 11 years in the industry.
https://www.linkedin.com/in/ranjan-jagannath-b2461749/

Q3 How much is the company spending on employee salary and development initiatives?

https://www.bseindia.com/xml-data/corpfiling/Attachhis/b28b9339-07bc-43fb-91ff-
a97111a8b483.pdf
pg 131 Annual report of the company.
Q4 Any Employer branding initiative or employee engagement/ HR digital transformation
initiatives that can be found on the social media

repurposing the canteen to serve the underprivileged in the area resulted in over 2 lakh food
packets being distributed in Faridabad

Escorts Construction Equipment (ECE) exported its latest batch of the powerful HD85 and EC5511
compactors to Bangladesh.
 Supply Chain
1. What is the supply chain of the company? Select at least one product and/or service of the
company and explain.

In concurrence with the market, we registered a strong performance during the year, registering a
24.1% growth in volumes for FY 2020-21, and the highest ever EBIT margins at 18.2% went up by 521
bps as against 13% last year. The record profitability is on the back of our acute focus on cost
efficiencies, better product mix and higher operating leverage. Clocking a 29.9% growth, the export
segment grew at a faster rate than the industry average in FY 2020�21, driven by new product
introduction and penetration in new markets. On the domestic front slight drop in market share,
which stood at 11.3% as of March�end 2021 against 11.6% in the previous year. Owing to the supply
chain challenges caused by the pandemic we were unable to capitalise on the sudden demand
revival in the domestic market and the peak festive season sales in the initial three quarters. Our
policy of maintaining a lean inventory both at our own depots and dealerships also impacted us
adversely in this unforeseen scenario. Nevertheless, we accepted the challenge and bounced back as
the supply situation improved, posting a higher-than-average market share of 12.7% in the last four
months of the year. In terms of segment distribution, we saw an uptick in our above-40 HP tractors
segment, which accounted for 62% of our domestic sales in FY 2020-21 against 51% in the previous
fiscal. This resulted in significant model mix gains and is also reflective of the success of our new
products in the higher HP range. With continued efforts around channel expansion, our total dealer
count in India is now more than 1,100. We will continue to further expand our dealer network in line
with our dual distribution strategy for both our key brands with a primary focus on our target
markets

1. Compare the supply chain of the company with its competitor. Identify which has a better
and more resilient supply chain?

High-end construction equipment is facing challenges in terms of imports from low-cost

manufacturing countries that are expanding their distribution centres and after-sales network in
India. Although these multi-national imports have been considered to be a threat, quality
consciousness among Indian consumers will curb large-scale imports. The foreign players are
expected to drive competition against Indian construction equipment exports in the developed
markets also. We are able to mitigate the threat of being well placed in the segments we serve,
particularly after the JV with Tadano to manufacture rough terrain and truck cranes.

2. Identify what were the impacts of Covid on the supply chain of the company. Compare the
Supply Chain of the company with International Best Supply

a group that has operations in India and Poland with export markets in around 65 countries,
resilience and sustainability of the supply chain against shocks are essential. Post COVID-19, the
importance of this aspect has been thrown into renewed focus, and we are also gearing up to
ensure that not only the economic losses are curtailed, but also that environmental and social
impacts of our supply chain are addressed. 50% of the total suppliers are within a 50-km radius
of the Company. Escorts defines ‘local’ as the Delhi-NCR region comprising Delhi, Gurgaon,
Noida, Faridabad, and Ghaziabad. The figure shows the amount and percentage of total
procurement spent on local procurement for the last three years

The Agri-machinery industry remained buoyant in Q4 of FY2020-21 owing to pent-up demand in

the preceding two quarters of the year. Escorts performed well in this space by registering a
significantly higher market share in Q4 than our average market share of the year. While
currently the demand is subdued and lockdowns in several states in the wake of the second
COVID-19 wave are impacting supply chains, we believe this is a temporary phase, which will
soon be over. The monsoon forecast for the current fiscal is positive, which will provide a
tailwind to demand, despite COVID-19 related disruptions

3. identify if the supply chain is profitable or not?

The Agri machinery industry remained buoyant in Q4 of FY21 owing to positive macro-
economic factors and pent-up demand from the first and second quarters of the year.
Escorts did well in this space by registering a significantly higher share of the market in Q4
than our average market share of the year as the supply chain normalised.
Mass production was started at Escorts Kubota in September 2020 despite several
challenges, labour shortage and supply chain issues. We are continuously producing desired
units and working together to leverage the identified market opportunity with the
innovative product line and enhanced customer experience
Owing to the supply chain challenges caused by the pandemic we were unable to capitalise
on the sudden demand revival in the domestic market and the peak festive season sales in
the initial three quarters. Our policy of maintaining a lean inventory both at our own depots
and dealerships also impacted us adversely in this unforeseen scenario. Nevertheless, we
accepted the challenge and bounced back as the supply situation improved, posting a
higher-than-average market share of 12.7% in the last four months of the year.

4. What are the Quality ISO Standards the company have? Estimate what could be the impact if
such standards will not be there on quality and efficiency of operations and SCM?

Escorts operates in a labour-intensive industry, and occupational health and safety are therefore
very critical for us. All our facilities are ISO 45001 certified for Occupational, Health & Safety
Management System (OHSMS).

The policies are in conformance to the spirit of international standards like ISO 14001, ISO 45001
and meet the national regulatory requirements such as the Companies Act, 2013 and SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015. Also, guidelines as per NVG
on the social, environmental and economic responsibility of business have been considered for
the formulation of some policies

ISO 9001:2015 and ISO 14001:2015 certified Conforming to Indian Research Design and
Standards Organisation (RDSO)

• Meeting International standards- UIC and AAR, among others

• One of the few in India to have the prestigious International Railway Equipment Standard (IRIS)
ISO TS/22163 certifications
 Sustainability
CBR – escorts Ltd

1. Which SDG is the company focusing on?

https://www.escortsgroup.com/templates/escortsgroup_home/images/pdf/Annual-Sustainability-
Report-2020-21.pdf

2.Does the company an independent department of sustainability or is it a part of HR / CSR /

outreach activities ?

The firm has a sustainable committee. Annual report page 111

3. Do they have an independent person assigned for sustainability/outsourcing through

consultancies?

Below is the member of the sustainability committee.

1. Mr Nikhil Nanda, Managing Director

2. Mr Hardeep Singh, Non-Executive Director
3. Mrs Vibha Paul Rishi, Independent Director
4. Mr P.H. Ravikumar, Independent Director
5. Ms Tanya Dubash, Independent Director
6. Ms Nitasha Nanda, Executive Director
4. Where have the CSR / sustainability funds been used during the last two years?

https://www.escortsgroup.com/templates/escortsgroup_home/images/pdf/Annual-Sustainability-
Report-2020-21.pdf

Refer to CSR report – page 2-42

A. Employability and Livelihoods

B. Covid Relief and Community Development

c. Waste Management

E. Donations

5. Does the company have a specific budget for CSR / sustainability?

Escorts CSR budget- 11.82 crores

Refer to CSR report – page 2

https://www.escortsgroup.com/templates/escortsgroup_home/images/pdf/Annual-Sustainability-
Report-2020-21.pdf

7. During the last twenty months, any new concepts/policies/strategies which the company and
its competitors adopted/ modified.

1. Achievement since last progress report in terms of coverage

compared to the target and reasons for variance, if any.
2. Year-to-date achievements in terms of coverage compared to the
target plans to overcome shortfalls if any and support required
from the CSR Committee/ Board to overcome the shortfalls.
3. Actual year-to-date spending compared to the approved CSR
allocation and reasons for variance.
4. In respect of activities undertaken through Section 8 Company/
Trust/ Society/ NGO's/ other recognized Association of Persons etc.
periodic reporting mechanism of progress on each such activity and
the amount incurred thereon.
8. Keeping in view the activities of the company suggest three areas where there should be a
bigger focus on sustainability goals
Refer to 28-30
https://www.escortsgroup.com/templates/escortsgroup_home/images/pdf/EL-2020-11-09-
Intimation-of-Sustainibility-Report.pdf