1

CHAPTER-I

INTRODUCTION

Tl CYCLES OF INDIA

1.1 INDUSTRY PROFILE

Bicycles are still said to be one of the major mode transportation in rural India even in this
twenty first century. Mahatma Gandhi (The father of our nation) quoted "Future of India
lies in its villages", thus the demand for bicycles will never come to an end.

An organisation study aims at gaining practical knowledge for the students which helps the
students in equipping themselves to the dynamic world of business and stiff competition.
The study intents to give a chance for the MBA aspirants to see how the practical
knowledge gained by them is putting into practice in a business organization. The scope of
the study is to analyse the working of different functional departments in an organization.
TI Cycles of India is a reputed bicycle manufacturer in India who is regarded as the pioneer
in the industry. TICI is renowned for its bicycle brands such as BSA and Hercules. The
company is under the excellent leadership of the Murugappa Group which is a business
conglomerate in India. TICI is famous for its old brand name.

The study is conducted at the Ambattur plant in Chennai of TI cycles which is TICI's first
production unit. Where the company is having the functional departments such as the
production department, Marketing department, Finance department and the Human
Resource department. The unit is constructed and maintained in such a way that which is
attractive and at the same time environment friendly. The one month study report of the
organisation which aimed at integrating theoretical knowledge of a student with the
practical application is as presented below. This report contains the entire available details
regarding the TI Cycles of India (TI stands for Tube Investments of India).

A bicycle or bike is a pedal driven land vehicle with two wheels attached to a frame, one
behind the other. First introduced in 19th-century Europe, bicycle evolved quickly
Numbering over l,000,000,000 in the world today, bicycles provide the principal means
of transportation in many regions and a popular. To distinguish a bicycle from a
motorcycle, it is also called a pushbike.
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The bicycle is one of the most notable of human inventions. The basic shape and
configuration of the wheels, pedal, saddle and handle bars has hardly changed since first
chain-driven model was developed around 1885 although, many important detail
improvements have been made especially in recent years using modern materials and
computer-aided design.

A marketable aspect of the bicycle is its widespread adoption in many different fields of
human activity, e.g. as a child's toy in adult recreation and fitness, as a means of everyday
transport, in cycle touring as a barks of cycle sport (Time tailing, road racing, cycle
speedway, cycle polo, BMX), and as a basis for static gymnasium or home fitness versions.

A human being travelling on a bicycle at low to medium speed of around 10-15 mph
(1624kph), using only the energy required to walk, in the most used efficient means of
transportation generally available. A bicycle in which the rides lies in a prone position and
which may be covered in as aerodynamic faring to achieve very low air drag in referred to as
a recumbent bicycle or human powered vehicle.

The bicycle has affected the history considerably in both the cultural and industrial realness.
In its early years, bicycle construction drew on pre-existing technologies. Beyond recreation
and amputation, bicycles have been adapted for use in many occupations, including the
military, policing, courier services, and sports. A recurrent theme in bicycling has been the
tension between bicyclists and drivers of motor vehicles, each group arguing for its fair share
of the world's roadways.

1.1.1 THE HISTORY OF BICYCLE INDUSTRY

No single time a person can be identified with the invention of the bicycle. Its earliest known
forebears were called velocipedes and included many types of human- powered vehicles. One
of these, the scooter-like dandy horse of the French comet de sivrac, dating to 1970, was long
cited as the earliest bicycle. Most bicycle historians now believe that these hobbyhorses with
no steering mechanisms probably never existed, but were made up by Louis bawdry de
sauniere, a 19th- century French bicycle historian.

In the 1850s and 1860s, Frenchman Ernest Michaux and his pupil Pierre Lallement took
bicycle design in a different direction, placing pedals on an enlarged front wheel. Their
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creation, which came to be called the "Boneshaker", featured a heavy steel frame on which
they mounted wooden wheels with iron tires. Lallement immigrated to America, where he
recorded a patent on his bicycle in 1866 in new heaven, Connecticut.

James Starley further refined the Boneshaker in the 1870s. He mounted the seat more
squarely over the pedals, so that the rider could push more firmly, and further enlarged the
front wheel to increase the potential for speed with tires of solid rubber, his machine became
known as the ordinary. British cyclists likened the disparity in size of the two wheels
nicknaming it the penny-farthing. The primitive bicycles of this generation were difficult to
ride, and the high seat and poor weight distribution made for dangerous falls. The subsequent
dwarf ordinary addressed some of these faults by adding gearing, reducing the front wheel
diameter, and setting the seat further back with no loss of speed. Having to both pedal and
steer via the front wheel remained a problem. Staley's nephew, J.K. Starley, J.H. Lawson, and
Shergold solved this problem by introducing the chain and producing rear- wheel drive.
These models were known as dwarf safeties, a safety bicycles, for their lower seat height and
better weight distribution. Starley's 1885s Rover is usually described as the first recognizably
modern bicycle. Soon the seat tube was added, creating the double triangle, diamond frame
of the modern bike. While the Starley design was much safer, the return to smaller wheels
made for a bumpy ride. The next innovations increased comfort in the 1890s golden age of
bicycles. In 1885 Scotsman john Boyd Dunlop introduced the pneumatic tire, which soon
became universal. Shortly there often the rear free wheel was developed, enabling the rider to
coast without the pedals spinning out of control. This refinement led to the 1897 invention of
coaster brakes. Derailleur gears and hand-operated; cable-pull brakes were also developed
during these years, but were only slowly adopted by casual riders. Successful early bicycle
manufactures included Englishman frank Bowden and German builder Ignaz Schwinn.
Bowden started the Raleigh Company in nottingham in the l890s and soon was producing
some 80,000 bicycles a year. Schwinn immigrated to the United States, where he founded his
similarly successful company in Chicago 1895. Schwinn bicycles soon featured widened tires
and spring-cushioned, padded seats, sacrificing some efficiency for increased comfort
facilitated by connections between European nations and their overseas colonies. European-
style bicycles were soon available worldwide. By the mid 20th century bicycles had become
the primary means of transportation for millions of people around the globe. In North
America, bicycle sales declined markedly after 1905, to the point where by the 1940s they
had largely been relegated to the role of children's toys. In the other part of the world
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however, such as China, India and European countries such as Germany, Denmark, and the
Netherlands, the traditional utility bicycle remained a mainstay of transportation, its design
only gradually changing to incorporated hand-operated brakes and internal hub gears
allowing up to seven speeds. In the Netherlands, such so called granny bikes have remained
popular, and are again in production. Especially in austere Dane they are often colorfully
painted and or otherwise decorated. In North America, increasing consciousness of physical
fitness and environmental preservation spawned a renaissance of bicycling in the late1960s.
Bicycle sales in the United States boomed, largely in the form of the racing bicycles long
used in such events as the hugely popular Tour de France. Sales were also helped by a
number of technical innovations that were new to the marked, including higher number of
gears. While 10 speeds were the rage in the 1970s, 12-speed designs were introduced in the
1980s and today most bikes features 18 or more speeds.

1.2 COMPANY PROFILE

The Murugappa group, headquartered in Chennai, India, is a $1.5 billion conglomerate with
interest in engineering, sanitary ware, fertilizers, finance, bioproducts and plantations. It has
29 companies under its umbrella; eight are listed and actively handed on the national stock
exchange and the Bombay stock exchange. Together, they have over 28,000 employees.

The business has its origins in 1990, when Bahadur AM Murugappa chettiar established a
money-lending and banking business in Burma (now Myanmar), which then spread to
Malaysia, Sri Lanka, Indonesia and Vietnam. A century down the line, it has withstood
enormous vicissitudes (including strategically moving its assets bank to India and restarting
from scratch in the 30's before the Japanese invasion in world war 2) to became one of the
country's biggest industrial houses. The group turnover crossed the $1 billion mark in 2003-
2004, with an impressive growth of 25% Rs. 42,060 million in 2002-2003. The group
clocked a 40 percent jump in profit before tax over the previous year. Murugappa Group's
consolidated turnover for 2004-2005 crossed $1.44 billion. The group achieved a growth of
20 percent over the previous year.

The group is a market leader in India across a spectrum of products like sanitary ware,
fertilizers, abrasive, automotive chains, car doorframes and steel tubes. Its companies have
tie-up with Borg-Warner of the USA, wend of Germany. Morgan Crucibles of the U.K and
Mitsui Sumitomo insurance of Japan. It has registered 43 International patents for its
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research and development innovation. The group has grown consistently through its
decisive and visionary response to change times. Its pioneering efforts, steadfast
commitment to ethical business practices and its dogged pursuit of new arras to extend its
business acumen have brought in its wake several prestigious national and international
awards. Social commitment has always been the cornerstone of the group's ethos and it has
been at the forefront of eco-conservation, public health, and education in the communities
where its companies operate, since 1957. It runs four schools, a polytechnic college and
four hospitals. Besides, the group runs a research and development center for rural
development the sir AM Murugappa Chettiar research centre (MCRC), which has been a
simple, cost-effective technology for local artisans since 1977. The Murugappa group has
29 companies active in the area of engineering, abrasive, sanitary- ware, fertilizers, finance,
bio-products and plantations. The major companies of the group are:

 Carborumdum universal limited

 Cholamandalam investment & finance company Ltd.
 Coromandel fertilizers Limited
 EID parry Indian Limited
 Godavari fertilizers Limited
 Parry Agro industries Limited
 Parry Nutraceuticals Limited
 Tube investment of India Limited

1.2.2 TUBE INVESTMENTS OF INDIA LIMITED

A reputed engineering company in India, driving excellence in work and part of the US $1.5
billion India conglomerate, the Murugappa Group. A tube product of India (TPI) was
established in 1955 with the objectives of providing backward integration to bicycles. TPI
merged with TICI in 1959. Name of the company changed to Tube investments of India Ltd.
TPI established a cold Rolling mill in 1962 for the production of cold Rolled close and sealed
steel strip. Tube plant commissioned in 1997 at Shinull, Maharashtra. Facilities to produce
door frames for Maruti 800 cc and Hyundai Santro in 1998. Bicycles manufacturing plant at
Nashik set up in 2001. Tube Investments of India limited is the flagship company of Rs. 6250
cr. Murugappa Group. It manufactures precision steel tubes and ships, car door frames, auto
motives and industrial chain and bicycles. The company has 13 manufacturing assembly
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units spread across the country. Marketing offices that act as interface between customer
requirements and production train support these units. The company's shares are listed on the
national, Mumbai and Chennai stock exchanges within India and GDRS on the Luxembourg
stock Exchange. The company's product segments are- Engineering, metal formed products
and cycles.

TI is the market leader in precision tubes with 61 percent market share by virtue of its quality
& application engineering capabilities. TI is the market leader in roll formed car door frames
with 57 percent market share by virtue of its cost efficiency, association with key auto majors
and roll forming capabilities. TI is a leading players in auto motive chain with 35 percent
market share by virtue of its quality, cost& delivery and associated with two wheelers .TI is a
leading player in bicycles segment with 31 percent market share by virtue of its brand equity,
product development capability and proximity to the markets. The company also has an
interest in the services sector through its investments in Cholamandalam Investment and
finance company Ltd and Cholamandalam MS general insurance Co. Ltd. It was originally
founded as TI cycles of India, in 1949.TI is the second largest manufacturer of bicycles in
India, marketing top brands like Hercules, BSA and Philips, and had a market share of 31
percent in 2003-2004.1n the value added special segment, TI is the leader, with a 50 percent
market share. More recently, the company entered the promising health conscious 'exercise'
bicycle' segment in 2002-2003. The company's vision is to be a worldwide leader in cycling
and solution by instilling the pride of ownership in the customers" A subsidiary, tube
products of India was set up in 195 in collaboration with tube products (old bury) Ltd, UK to
produce electric resistance welded (ERW), cold drawn welded (CDW) tubes and draw over
mandrel (DOM) tubes. In 1957, tube investments of India started production of cold-rolled
close annealed steel strips, in collaboration with TI, UK, primarily to meet in- house and
group requirements Though started as a backward integration project for the manufacture of
bicycles, today, TPI is a major preferred supply of precision welded tubes to major
automotive companies in India and abroad. It is the undisputed leader in the Indian market
for precision welded ERW & CDW steel tubes, with the widest variety and range in terms of
size as well as material offered. TPI started operation at Avadi, Chennai, but has expanded
with two more plants located in western and northern India. Another subsidiary, TI metal
forming, is a pioneer in cold roll forming. It manufacturers and supplies value- added metal
formed components like car door flames, sash/ division channels, door guide rails and bar
assembly. It has plant in Chennai and Bawal(near Gurgaon). Both plants in Chennai and QS
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9000 certified. The Chennai plant is IS014001 certified. A third plant has been set up near
Baroda (in Gujarat state, western India) to manufacture and supply doorframes, impact beam,
bar and rail assembly for general motors, India. Its client list includes Maruti Udyog and
Hyundai. TIDC INDIA formerly known as TI Diamond chain Ltd. was established in 1960 in
collaboration with the Diamond chain co, USA. Starting as a marker of bicycle chains, makes
over 1,000 varieties of chains in industrial chains TIDC produce from tiller chains, leaf
chains and conveyor chain to industrial power drive chains, engineering class chains, in
automotive TIDC produces motorcycle drive chains and engine mechanism chain and fine
blank parts. Annually production runs to 45 million feet, and commands 40 percent of the
domestic market share. The company is known for developing high performance chains for
specific applications and machinery. Some of TIDC'S popular brands are Diamond and
Xtron, TIDC exports to over 50 countries worldwide. TI has entered into a joint venture with
Borg Warner Morse TEC, USA for production of timing and silent chains. It has entered into
a technology agreement with Tsubakimoto chains company, Japan, for engineering class
chains.

1.2.3 Tl CYCLES OF INDIA

TI Cycles was established by the Murugappa Group in the year 1949, in collaboration with
Tube Investments, UK. The first Hercules bicycle rolled out in 1951. Three more brands
were added to the portfolio - Phillips in 1959, BSA in 1964 and Montra in 2011.Today, TI
Cycles is the leader in the 'specials' segment. The energy of the company can be felt
nationwide, thanks to a network of around 1,500 primary dealers and 10,000 secondary
dealers.

TI Cycles has the capacity to manufacture 4 million cycles a year at 3 plants across India
Chennai in the South, Nasik in the West and Noida in the North. This is supported by 4 zonal
offices and 4 warehouses across the country. TI Cycles has been at the forefront of personal
mobility solutions for over 6 decades and has gone from being a pioneer in bicycle
manufacture and design to a complete mobility and well-being expert. Standing for the core
promise of fun, fitness and freedom, TI Cycles offers consumers a range of bicycles, e-
scooters, fitness equipment and infant mobility solutions. Known best for its flagship bicycle
brands, BSA, Hercules and Montra. TI Cycles has practically created and perfected every
new cycle category in the country. The first MTB, the first geared bike, the first girls' bike,
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the first kids' bike, the first light roadster and the first carbon frame bike were all introduced
by TI Cycles. Tl Cycles has constantly come up with new trends to suit evolving consumer
needs. With the changing retail environment, TI Cycles has introduced BSA Hercules
exclusive stores, which have revolutionized the bicycle outlet in India. A one-stop premium
shop for all bicycling and fitness requirements, the exclusive stores have a customer-friendly
ambience and serves as a model for other bicycle outlets in the country. TI Cycles has also
launched urban and rural Hercules BSA Zone formats in the retail segment. A new initiative,
Track and Trail, offers an international range of bikes for the discerning cyclist. Faster,
lighter and stronger than any cycle every created in India, Montra brings international
standard carbon frame bike ingeniously manufactured for the first time in India. A pioneer in
the Cycles market, TI Cycles, formed in 1949, has constantly come up with new trends in
line with evolving consumer needs. TI Cycles vision is "To be the most preferred brand in
fitness, recreation & personal mobility solutions". It strives to give its customers not only a
bicycle but a lifetime experience. TI Cycles have introduced fun and entertaining stores
across the length and breadth of India. The company has been proactive and was first Bicycle
Company to change the cycle retail landscape, both in urban and rural areas. In 2010, the
company started "Hercules BSA Cycles" to provide the urban retail buying experience in
smaller towns. In just over a year's time, there are over 200 of these rural stores. For its retail
innovation, the company recently received the certificate of appreciation for 'Excellence in
Rural Retailing' at the ET Retail Awards 2011. TI Cycles is a quality and customer centric
organization. Recently, the company has entered the growing e-scooter and fitness equipment
segment in order to cater to the contemporary consumer needs. Living up to its dynamic
vision of going beyond just bicycles, TI Cycles has also made a foray into Fitness and Infants
under the brands of BSA Workouts and BSA Toddlers respectively. In keeping with its
visionary status, Tl Cycles is ready to ride the trends of the future, whether they are in new
products, and new areas of business or retail. And it is now more set than ever to fulfill its
core promise of fun, fitness and freedom for all.

1.2.4 VISION

To be the most preferred brand in fitness, recreation & personal mobility solutions

1.2.5 MISSION
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Ethical norms in dealing with all the stakeholders. Provide value of money to customers
through quality and services. Treat employees with respect; provide opportunity to learn
innovativeness and creativity in business.
1.2.6 Tl CYCLE CREDO:

THE ONLY CREED QUALITY

THE ONLY RELIGION PRODUCTIVITY

THE ONLY DIRECTION GROWTH

THE ONLY ETHOS EXCELLENCE

THE ONLY LANGUAGE PRODUCTION

1.3 NATURE OF BUSINESS

Tl Cycles of India (a unit of Tube Investments of India Ltd.) is a bicycle manufacturer

based in India. Tl Cycles is the maker of brands like Hercules, BSA and Philips cycles.
Currently it is the first largest cycle manufacturer in India and number one manufacturer in
special segments like mountain bikes, sports lite roadsters, racing bikes etc. It has a
manufacturing capacity of around three million bicycles per year. Of late, TI Cycles has
begun to sponsor a variety of cycling events, one of them being the 900+ km Tour of
Nilgiris, through its brand BSA. TI Cycles of India brands: Tl cycles, BSA cycles, Hercules
Cycles, Philips Cycles, Track & Trail Cycles, Montra Cycles. Track and Trail India is an
initiative of TI Cycles India with the objective to bring brands such as Bianchi, Schwinn,
Cannondale, Ducati, etc. to the Indian market. TI Cycles of India has manufacturing plants
at: Ambattur, Chennai: Nasik, Maharashtra: Noida, Uttar Pradesh: Rajpura, Punjab.

1.4 BUSINESS VOLUME

Tll- Business portfolio

BUSINESS % Turn ()vcr

Cycle 41%

Engineering 56%
Metal Forming 3%
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TURN OVER SHARE OF SUBSIDIARY
COMPANIES
Name of the Organization % turn over

TII 28%

EIDP 34%

CFL 16%

CUMI 8%

Others 14%

1.5 OBJECTIVES OF THE ORGANIZATION

The objectives of the study are:

To familiarize the students with a business organisation.

 To familiarize them with the different departments in the organisation and their
functioning.
 To enable the student to understand how information is used in an organisation for
decision making at various levels
 To relate theory with practice.

1.6 PRODUCT PROFILE

TI cycles, one of the largest integrated cycle manufacture in Asia, Manufactures high
quality bicycles for both domestic and international market. TICI manufactures and markets
the HERCULES, BSA, Track & Trail and Montra brands.

1.6.1 BSA
BSA stands for style, fun and comfort. There are several models catering to consumer
segments ranging from kids, ladies and other premium end customers. BSA Ladybird, BSA
SLR, BSA Champ, BSA Mach are trendsetters and icons in their respective categories. It
signifies the joy of cycling. Excitement and comfort go hand in hand with BSA. Today,
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BSA is an intrinsic part of the Indian family. BSA as a brand offering consumers a wide
range of bicycles, electric cycles, e-scooters, fitness equipments and infant mobility
products. With its origins in UK, BSA is a 140 year old brand. Since 1964, the year when
BSA was taken over by TI Cycles, the brand has come a long Today, BSA is a prominent
part of many Indian families, with mobility solutions for everyone — toddlers, kids, teens
and adults.

1.6.2 HERCULES

Our first brand is still as young as ever, signifying strength and passion. It is rugged, robust
and is for the rough and tough. Hercules stands for a unique pride of possession. The ranges
of Hercules Roadeo and Hercules MTB Turbodrive have been pioneers in the bicycles
category catering to the youth. The range of Hercules Ryders is for urban adults for them to
ride towards a healthier, happier self. The Hercules Popular brand of "standard" bicycle is a
market leader in the segment. Hercules represents the ambition to help fuel its rider's
dreams. So whether it may be adventure, style or fitness, the brand has been close touch
with its audience to remain young and rooted to fun, freedom and fitness. The brand which
belonged to the erstwhile Hercules Cycle and Motor Company Limited was founded on 9
September, 1910 in Aston, England. The first Hercules bicycle in India rolled out in 1951.
The name Hercules was chosen for its association with qualities like durability and
robustness. Innovation in the form of products, coupled with reliability and style, has made
Hercules one of the nation's leading brands in India. Today, Hercules offers consumers a
range of products, from standard and mountain terrain bikes to electric and performance
cycles but whether it's the power to go green, pull off tricks or chase dreams, Hercules
really provides 'power at your feet'

1.6.3 TRACK AND TRAIL

Track and Trail is the ultimate destination for everything in cycles from the best of
international bicycles and world-class accessories to a network of people with expertise on
technology, performance and the intricacies of cycling. For mountain, road and hybrid
bikes, you can choose from Cannondale, Bianchi or Schwinn world-class brands known for
incomparable designs, superior comfort and ease of riding. We also have an exciting range
of BMX and MTB cycles from GT and Mongoose for those who like a bit of adventure in
their lives.
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1.6.4 MONTRA

Faster, lighter and stronger than any cycle ever created in India, Montra brings international
standard carbon frame bike for the first time in India. It is designed and manufactured
ingeniously and is a part of the flagship range of TI cycles under Track and Trail. Montra,
meaning "My Track" is the bike that lets you ride our your aspirations, that lets you choose
your path.

1.7 COMPETITORS

The major competitors of TICI are Hero, which is number one in India. TICI is the second
largest bicycle manufacturer in India. The other competitors are Avon and Atlas, which
hold third and fourth positions respectively. TICI along with two other players cater to
about 90% of market.

No Competitors Market Share

1 TI 24.95

2 Hero 43.43
3 Atlas 23.3
4 Avon 8.31
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CHAPTER-II

STRUCTURE OF TIIE ORGANIZATION

2.1 ORGANIZATIONAL STRUCTURE

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2.2 BOARD MEMBERS

Mr. M.A. ALAGAPPAN - Chairman

Mr. MM. MURUGAPPAN - Vice Chairman

Mr. SUMIT BANERJEE - Managing Director

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Mr. AMAL GANGULI - Non-Executive Director

Mr. PRADEEP MALLICK - Non-Executive Director

Dr. D. JAYAVARTHANAVELU - Non-Executive Director

Mr. RAMU THYAGARAJAN - Non-Executive Director

Mr. S. SANDILYA - Non-Executive Director

Mr. R. SRINIVASAN - Non-Executive Director

Mr. TAPANMITRA - Non-Executive Director.

2.1 NUMBER OF EMPLOYEES:

Permanent workers – 208 Contract Laborer's - 500 to 700

Trainees – 180 Women workers (contract laborer's only) - 25-30

2.1.1 WORKING HOURS:

 9 hours per day

 Saturday and Sunday Holidays
 In a week, workers employed not above 48 hours, including overtime.
 Every overtime, double wage calculated.
 A worker employed only 8 hours per week has overtime.
 Half an hour lunch

2.1.2 SHIFTS:

8.00 AM - 5.30 PM

6.30 PM - 3.00 AM
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2.4 DUTIES AND RESPONSIBLITIES OF DEPT. HEADS:

Marketing Head : Develop pricing strategies, balancing firm objectives and customer
satisfaction. Identify, develop, and evaluate marketing strategy, based on knowledge of
establishment objectives, market characteristics, and cost and markup factors. Negotiate
contracts with vendors and distributors to manage product distribution, establishing
distribution networks and developing distribution strategies.Consult with product
development personnel on product specifications such as design, color, and
packaging.Compile lists describing product or service offerings. Formulate. direct and
coordinate marketing activities and policies to promote products and services, working with
advertising and promotion managers.

Finance Head : Evaluate the financial aspects of product development, such as budgets,
expenditures, research and development appropriations, and return-on-investment and
profit-loss projections.Use sales forecasting and strategic planning to ensure the sale and
profitability of products, lines, or services, analyzing business developments and
monitoring market trends.

HR Head: Managing the employees maintaining the attendance and payroll activities.
Employee onboarding, Direct the hiring, training, and performance evaluations of
marketing and sales staff and oversee their daily activities.

Operations Head: Analyzing data to calculate the cost-benefit ratio. Locating problems in the
company’s supply chain through quality control checks. Establishing and monitoring
employee schedules. Establishing objectives for increased output and improved efficiency.

CHAPTER-III

FUNCTIONAL DEPARTMENTS OF TIIE ORAGANIZATION

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3.1 FINANCE DEPARTMENT

3.1.1 DUTIES AND RESPONSIBILITIES

The important duties and responsibilities of the finance department is maintaining the
accounts of the organization, project management, taking cost control measures that can be
done by the finance department. The other major duty is communicating the financial results
to the stakeholders. The department is also responsible for the tax related matters.

3.1.2 FINANCE FUNCTION

The major finance functions in the organisation are as given bellow:

 Keeping the accounts.

 Rising fund for the projects and other day to day activities of the business.
 Advising the management in the business activities which comes under the purview
of finance department.
 Conducting the internal audit.
 Helping the management in taking dividend decision.
 Preparing the budget for the organisation.

These are some of the major functions of the finance department.

3.1.3 SOURCES OF FUNDS

(Source of funds) Where you'll get the money you plan to invest. Sources of funding include
credit, venture capital, donations, grants, savings, subsidies, and taxes. In TICI the funds are
sourced from mainly from the Murugappa Group that is from the subsidiary companies of
the Murugappa Group. And other major sources are reserves that are made to meet the future
fund requirement and also from banks.

3.1.4 CAPITAL STRUCTURE

In finance, capital structure refers to the way a corporation finances its assets through some
combination of equity, debt, or hybrid securities. The company has its capitalisation from as
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Public shareholdings (by both institutions and Non- institutions), promoters and group
shareholdings (by both Indian and Foreign) and Shares held by Custodians and against
Depository Receipts have been issued.

3.1.5 INVESTMENT PROPOSALS

Investment proposals are discussed in the Managing Director (MD) level. The investment
proposals are called as Capital Expenditure Project. The major investment proposals of TICI
recently made Rs.45 Crore investment in Hajipur Industrial Area, Bihar and started
construction. As a part of Balika Yogana project by Bihar government TI Cycles is looking
to acquire niche companies making Alloy and carbon Bicycle. TI Cycles is going to launch
"Pedelec" in next March. It is nothing but a project to invest in electric bikes and battery
powered bicycle.

3.1.6 BUDGETS

Budget is an estimate of income and expenditure for a set period of time. Each department
will have a separate budget for a year. Based on budgets each department a master budget is
created for a year. In case of accounts department there will be separate budgets for sales,
expenses etc.., it is been managed by the accounts department. Budgets are made flexible so
that anything happens suddenly then the annual budget should not be affected.

3.1.7 PROFIT/MARGIN

The Profit margin is an accounting measure designed to gauge the financial health of a
business or industry. The company is expecting a marginal turnover of Rs.1600 Crore per
annum. Where as in the case of profit, the company is expecting a marginal profit of Rs.60
Crore every year.

3.1.8 INSTITUTION FUNDING

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Institution funding is exists in the organization. When there is a need for fund the sister
companies of TICI will contribute fund into the company. TICI's share is also owned by
financial institutions/ banks, Mutual funds/ UTI, Insurance Companies and foreign bodies.

3.1.9 CORPORATE GOVERNANCE

Good corporate governance has consistently been TIl's cornerstone for sustained superior
financial performance, and quality service to all its stakeholders. At TIl, we firmly believe
that the fundamental objective of corporate governance is enhancement of long-term
shareholder value, while keeping the interests of all stakeholders in view. Dedicated to the
highest standards of corporate governance in all its activities and processes, the Company is
committed to discipline, willingness, transparency and fairness. Key elements in Tll's
corporate governance include:

 Transparency
 Disclosure
 Supervision and internal controls
 Risk management
 Internal and external communications
 High standards of safety, health, accounting fidelity, product and service quality

Besides drawing on the various legal provisions, group practices are continuously
benchmarked in terms of the Confederation of Indian Industry Code and international studies.
The entire process begins with the functioning of the Board of Directors, with leading
professionals and experts serving as independent directors and represented in the various
board committees. The Board has empowered an efficient team of experts to implement its
policies and guidelines and has set up adequate review processes to ensure continual value
generation.

3.2 MARKETING DEPARTMENT

3.2.1 FUNCTIONS

The major functions of the marketing department are as given below:

 21

 To ensure a steady sales of the product

 Carrying out the required promotional activities.
 Analysing the demand of the products and communicating it to the other
departments as and when required.
 Ensuring that the company penetrating into the new markets and increasing its
market share while maintaining the current market share.
 Cooperating with the product development activities and pricing of the product.
Managing the retail exclusive outlets of the company.

These are some of the major functions of the marketing department of the organization.

3.2.2 SALES AND DEMAND

The bicycle division for the year 2019 -2020 recorded a sales volume of 4 million. During the
year 2019-2020, the segment recorded a growth of 8.4% in the volume of bicycles sold,
touching a level of close to 4.5 million bicycles during the year. The annual domestic demand
of bicycle is approximately 15 million units and out of which rural area demands the most
while comparing with urban regions. The bicycle segment in India is currently stagnant and
is growing at 5-6%, while the premium segment is growing at 24-28%. TICI is selling
1,50,000 bicycles in a month but it is actually 20% less than the market demand.

3.2.3 PROMOTIONAL EFFORTS

Promotion is the method you use to spread the word about your product or service to
customers, stakeholders and the broader public. Their promotional activities are known as
Triple 'F' (FFF). It stands for Fun Fitness and Freedom. The company instead of promoting
its product promote cycling. In order to promote cycling a cycle race competition is
conducted every year at Mamallapuram which is a place in the state of Tamilnadu. Bicycle is
a seasonal product and in seasons the product is sold with free gifts and discounts.
 22

3.2.4 PRICING STRATEGIES

Most of the bicycles sold in India are sold in the average price range of Rs. 3000-4000. The
bicycle price is highly depended on steel price. When the steel price is high then it will have
a cascading effect on the bicycle price. Then the price is also depended on the wage rate and
other production cost. The company is following a cost plus pricing strategy. Cost-plus
pricing is a pricing method used by companies to maximize their rate of returns. The firms
accomplish their objective of profit maximization by increasing their production until
marginal revenue equals marginal cost, and then charging a price which is determined by the
demand curve.

3.2.5 ADVERTISEMENT

Advertising in business is a form of marketing communication used to encourage, persuade,

or manipulate an audience. Advertisements are also done in order to promote the product.
The printed advertisements are given in the news papers, magazine, then media
advertisement, stalls and expos or Trade Shows are also a part of the product advertisement.

3.2.6 SALES FORCE STRUCTURE

Each regional office is responsible for the sales and collection of the product in that specific
region. The company has got a strong Marketing Sales Representatives (MSR's) force. They
will execute the sales of the company. The sales of the product are mainly done through the
company affiliated dealers and through the company owned outlets.

3.2.7 COMPLAINT HANDLING

TICI has got a strong complaint handling system. The company has a separate customer care
centre and which very strongly into that. The customers and the dealers can register their
complaint through a number. The number is +914442093469/70/71/72 and the customer care
e-mail address is [email protected].

3.2.8 MARKET SHARE ANALYSIS

Market share analysis is a part of market analysis and indicates how well a firm is doing in
the marketplace compared to its competitors. The company analyze the market share yearly.
Currently TICI is the second largest manufacturer of bicycles in India after Hero.
 23

3.2.9 SUBSIDIARY DEPARTMENTS

The subsidiary department in the marketing department are Sales Department, Customer
Relations Department. The sales department is responsible for making sure that each and
every sale is done correctly and without any loop holes of complaining. The Customer
relations Department is responsible for maintaining good relation with dealers and customers
and handling the complaints.

3.3 HUMAN RESOURCES DEPARTMENT

3.3.1 RECRUITMENT AND SELECTION PROCESS

One of the major functions of HR department is recruiting and selecting workers and
employees. The company recruit candidates through campus recruitment, advertisements in
news paper, magazines and websites like 'Linked in and 'Naukri', management consultants,
subcontractors etc.,. Recruitment is a subsidiary department under the HR department.
Selection process is different for shop floor workers and other management workers. For the
shop floor employees there will be a personal interview which is done by the Executive HR
and then they will have to go through a medical test and safety training. They are selected as
trainees for 3 years then on the basis of their performance they will be made as permanent
workers or otherwise. When it comes to higher level employees there will be a telephonic and
personal interview which is done by the senior HR and other senior level management staff.
Then for the top level employees there will be interview conducted by higher authority and
they are basically selected on the basis of their experience.

3.3.2 INDUCTION TRAINING

Every new employee coming into the organization will have an induction training which
done within the organization. The induction period basically has duration of 2 days for lower
level employees; there will be more days of induction programme for higher level employees.
In this training period they will be made familiar with the departments and facilities in the
organization. During the induction period the employee will be provided with the Standing
Order of the company and the employee will also be given the details regarding his work.
 24

3.3.3 PERFORMANCE APPRAISAL

The organization is having a performance appraisal twice in a year. The half yearly appraisal
which is conducted during March and April, The yearly appraisal is conducted by
Performance Appraisal Review Committee (PARC). PARC is having a target ABCD rating
of performance. Based on the performance of an employee he is given a promotion or salary
hike. The company is using performance appraisal as a motivation tool for employees.
Performance appraisal is done in four levels, such as self appraisal, appraisal by Boss.
appraisal by functional head and appraisal by committee head.

3.3.4 TRADE UNIONS

After the huge strike of 1978 and 1l month closure of factory in the organization the trade
union INTUC (Indian National Trade Union Congress) took over the employees in the
organization. After that there is no Trade Union problem or strike in the organization. There
are 7 union representatives in the company and they will conduct a meeting to discuss the
union matters twice in a week.

3.3.5 MANAGEMENT OF INDUSTRIAL RELATIONS (MIR) SCENARIO

There is a complete harmony and peace in the organization. There is collective bargaining
existing in the organization. There will be a Long Term Settlement (LTS) once in four years
there the employees can negotiate for incentives or wage hike. The last settlement was in
2014 and the next settlement is going to come in 2018.

3.3.6 DISCIPLINARY ACTIONS

For the misconduct or issues creating in the organization workers or employees will have to
face strict disciplinary actions. The worker or employee will be first notified with a warning
letter, and then if he/she is repeating the same it will be followed by a memo. Then the
employee will be sacked from the organization if he/ she is continue to do the same. These
disciplinary actions are clearly mentioned in the Standing Order of the Company.
 25

3.3.7 WAGE AND SALARY ADMINISTRATION

The contract labors are given the minimum wage and other incentives. Incentives are
provided on the basis of contribution of a worker to the production that is PMPD. The
nonmanagement staffs are given salary plus bonus. The maximum bonus provided is 20%
and the minimum is 8.3%. Trainees are given a salary of Rs.7120 per month plus canteen
facility Other common facilities provided by the organization to its employees are canteen
facility, providing uniform, social work cell, dispensary facility, library facility, in house
magazines, co-operative thrift and credit society, conducting official trips, suggestion
scheme, giving service awards.

3.3.8 QUALITY CIRCLE

The quality circle of the organization is very strong. TICI bagged excellent positions in the
First SIT competition by Quality Circle Forum of India. Quality Circle discuss on the quality
matters of the company, It can be in product, process, leadership etc.., The Quality Circle
meeting are conducted daily in the organisation, which is not longer than 10 minutes. They
can come up with new ideas and that can be implemented in the organisation for improving
the overall quality in the activity extending from organisation to its customers.

3.3.9 PROMOTIONS

A promotion is usually a move by an employee to a vacant position at a higher grade level

either within the current department or in a different department. Changes to a higher grade
level obtained through intradepartmental interdivisional promotion, job audits or career paths
are covered in other policies. The company gives promotion and transfer to its employees as
and when required. Promotions are given on the basis of the review that is received from the
PARC. Promotions are given to an employee only once in four years, but there are
exceptional cases, that is when an employee is performing extra ordinarily.

3.3.10 TRANSFERS

A transfer is usually a lateral move to a vacant position. A transfer within the department
may provide an opportunity for an employee to assume different responsibilities and develop
 26

new skills. Transfer is given when there is a need arises. The willingness of the employee is
also considered. When the need and willingness is there transfer happens. In case of a need
for transfer arises even though it is the duty of an employee to consider the organization
matters first, an employee's willingness is given due importance by the organization.

3.3.11 MANAGEMENT DEVELOPMENT PROGRAMME (MDP)

There are Management Development Programme (MDP) conducted exclusively for the
managerial level employees. The company has a separate training centre called Institution
Industry Interaction Centre (IIIC). IIIC is ISO 9001 certified. The centre is truly a "Place of
Learning" for both TI and other Murugappa Group companies. An employee can attend MDP
if there is permission from his superior. It is basically an off the job training which has a
duration of 15-20 days. It will happen twice in a month. All middle managers will be put
through this program in order to transform them into better Managers and future General
Managers to reinforce Business Leadership.

3.3.12 EMPLOYEE COUNSELLING

Employee counselling will happen when there is a need for the same. The employee will be
providing an internal counselling as well as an external counselling. When the problem is
solved by the counselling which is given within the organization then the employee will not
referred for external training. External training is conducted by a psychologist.

3.3.13 PARTICIPATIVE MANAGEMENT

Participative management is a type of management in which employees at all levels are

encouraged to contribute ideas towards identifying and setting organizational-goals, problem
solving, and other decisions that may directly affect them. It is also called consultative
management. Achieving business excellence through employee empowerment and employee
participation is the motto of the organization. Thus as a part of that Worker Participation in
Management (WPM) is practiced in the organization. Suggestion Scheme is an example for
that. Finally that is a motivation for the employees to be involved in their job.

3.3.14 HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

 27

HRIS refers to the systems and processes at the intersection between human resource
management (HRM) and information technology.HR information System is a database
accessible to everyone in the organization. It is been shared in the ERP server. So anyone can
access it at any time. All the information relating to HR, that is employee database,
attendance, payroll etc.., are available in the HRIS.

3.3.15 SAFETY DEPARTMENT

A safety department is working there in the organization as a subsidiary of the HR

department. But it is independent. The safety department is to ensure that the working
conditions are safe enough for the employees to work if not take corrective actions. The
safety officer is in charge to ensure the same and he/she will conduct a meeting monthly.

3.3.16 SECURITY DEPARTMENT

There is a security department working in the organization. It is been managed by a

consultant. This department is responsible for ensuring security in the organization. The
security department will issue an Identity Card to the recognized visitors and a visitor's pass
to others.

3.3.17 WORKING OF TIME OFFICE

Comprehensive time office management takes care of faculty and staff attendance, time offs
and leaves management. Defining rules for leave, overtime, late coming, shift manager
schedules. Time office is responsible for keeping the record of attendance and payroll of each
and every employee. There is a biometric attendance system existing in the organization. But
a separate attendance record is kept for contract labors.

3.3.18 EMPLOYEE TURNOVER

Employee turnover is very high in case of shop floor workers who are recruited as trainees.
There will be an average turnover ranging from 10 -35 in a month. There will be 250 to 350
recruitments happening to fulfil the job vacancy in the shop floor in a month. The turnover is
mainly because of the nature of job. The trainees are recruited bellow the age of twenty and
who is having a basic qualification. In case of permanent workers there are hardly 1 or 2
 28

employees who are quite the organization. Thus we can say turnover is very less in case of
permanent employees.

3.3.19 EMPLOYEE DETAILS AND LEAVES

The employees are mainly classified into Permanent Workers and Trainees. Trainees are
again classified into skilled labors and unskilled labors. There are about 400 trainees in the
Ambattur plant. There are contract labors also in the organization; they are mostly from the
Northern Part of India.

Leave Details of Trainees (Per Annum):

Earned Leave 15 — 16 days

Casual Leave 10 days

Medical Sick Leave 10 days

Apart from these there are management staffs, who are 202 in number.

Leave Details of Management Staffs (Per Annum):

Earned Leave : 30 days

Casual Leave 7 days

Medical/ Sick Leave 7 days

3.3.20 DETAILS OF SHIFTS

There are about 12 shifts in the organization for different departments. But there are two
major operating shifts which is "Shift A" from 8 am -5.30 pm and "Shift B" from 6 pm -3
am. The maintenance department works round the clock.
 29

3.4 OPERATIONS DEPARTMENT

3.4.1 PRODUCTION/ OPERATIONS PROCESS:

There are three different processes in the production.

The processes are

(a) Phosphating, (b)Painting and (c) Finishing. The process is explained below:

3.4.2 PHOSPHATING PROCESS

This is the major process done here. This is the base for all, only after completing this process
painting process can be done. Phosphating process is divided into three lines they are LINE l ,
LINE 2, and LINE 3.

3.4.3 DEGREASING-I

This is the first and the main process in the phosphating plant. The chemical used is star clean
430 and its concentration is 50 GPL. The temperature in which this process is done is 70-80c.

The standing time is 5-6 minutes.

3.4.4 COUNTER FLOW RINSE

This is just a rinse.Temperature is room temperature.

3.4.5 PICKLING

In this process to remove the flux particles on the components the chemical used is Sulphuric
acid. Concentration is 200GPL. Temperature is 75- 80c. The standing time is 7 minutes. In
 30

this plant two anode plates and one cathode plate is used. The convey components are placed
in the cathode plate. The anode to cathode given supply is 8 to 10 voltages. Normally cathode
is attracted by anode. So the flux particles on the components are attracted by both sides of
the anode plates.

3.4.6 DEGREASING-II

The chemical used is Star clean 430 and the concentration is 40 GPL Total alkalinity point
age is 50- 70 and the temperature is 60-70 degrees

3.4.7 PRECONDITIONER

Chemical used is Starfine FD. Concentration is 1.5 GPL, PH is 8-10. The temperature is
room temperature. The standing time is 1 minute.

3.4.8 PHOSPHATING

Chemical used is Starphos 597 T, Sodium Nitrate and Soda Ash. Concentration is Starphos
597T; 30GPL. Sodium Nitrate: 0.04GPL and the temperature is 60-70c.The standing time is
9 minutes.

3.4.9 PASSIVATION

Chemical used is Sulphate NCR concentration is 0.0375. PH is 4-4.5 and temperature is

room temperature.

3.4.10 CONSTRUCTION:

The painting plant mainly consists of conveyor omega booth, touch up booth, flash off zone,
oven. The conveyor is used for holding the components of different jigs made for different
parts of the component and to transmit the components. Frame, fork, mudguard, gear cases,
chain cover, stem, etc for painting. Omega booth contains the reciprocator, respiratory,
turbine, disc, etc. Reciprocator is used to move up & down to paint uniformly to the
component. Aluminum shaft is fixed to the reciprocator. Above the omega booth quick flow
change valve is placed Turbine is made of aluminium material used for the rotation of the
 31

disc which gives 9000rpm per minute. It rotates in the pneumatic system by using air
receiver. Touch up booth contains the painting pump, hose, and manual gun. This booth is
used to cover paint for the component. Painting pump is used to pump the paint contains in
the barrel. Hose is used to transfer the paints from barrel to the disc. Gun is used manually
for finishing the component.

3.4.11 OVEN

Drying is mainly done by using oven. The oven contains Heat Exchanger, Burner, Air blower
etc. By using temperature controller we can maintain the required temperature.

Working:

After the process of phosphating, painting is done by the following process, Surface
preparation is done for cleaning the dusts or burs etc to avoid defect in painting. After it is
loaded in the jig and which is made in different shapes. The conveyor transfers the
component to omega booth which is done by basecoat auto spray using turbine & disc. Then
the component is transferred to the touch up booth which is used to finish the component by
using manual gun and compressed air, paint, hose etc. Flash off zone is the next process
involved in the painting plant that is used to remove the vapors of thinner. Afterwards it
passes to topcoat auto spray, touch up & flash off zone. Finally it is send to the oven for
drying the painted component which has certain temperature. Then it is checked for quality
paint is covered fully. If the quality of the component is not good the component is rejected
for refinishing. If there is any fire or smoke is released in the 0111ega booth,C02 gas will be
letting out, because fire or smoke will cause an explosive. It is sensed by fire sensor &smoke
sensor. Quick flow change valve is provided above the omega booth to change different color
of paints.

3.4.12 FINISHING PROCESS

The other process that is happening in the plant is finishing. It includes Stickering and
Kitting.

3.4.13 STICKERING

Stickering is nothing but the process of designing the frame, fork and the mudguard based on
its brand and versions.
 32

3.4.14 KITTING

Kitting is wrapping the bicycles components in the box and making it ready to send it to the
destinations.

3.4.15 DISPATCHING

After the process of kitting the product is dispatched according to the orders received.

3.4.16 STORE AND WAREHOUSE MANAGEMENT

Tl Cycles has plants at Chennai, Nasik and Noida, major Warehouses at Guwahati, Durgapur,
Patna, Ludhiana, Cuttack and regional offices ( That is at Chennai, Nasik and Noida),
through which it senses it nationwide 2500 plus dealer networks.

3.4.17 JUST IN TIME (JIT)

Just in time (JIT) is a production strategy that strives to improve a business return on
investment by reducing in-process inventory and associated carrying costs. This production
model in which items are created to meet demand, not created in surplus or in advance of
need. The company do not follow the Just In Time technique. The reason is because they
have to maintain a minimum stock level always and unlike other automobiles, bicycle
manufacturing cannot follow JIT.

3.4.18 PRODUCTION PLANNING AND CONTROL (PPC)

The organization has a separate Production Planning and Control (PPC) department. They
follow a daily based PPC. The department is responsible for scheduling the plants daily
production and control. The PPC department is doing the Material Requirement Planning
(MRP).
 33

3.4.19PRODUCTIVITY/ EFFICIENCY OF THE PLANT

TI Cycles has the capacity to manufacture 4 million cycles a year at 3 plants across India
Chennai in the South, Nasik in the West and Noida in the North. Productivity is calculated on
the basis of production versus manpower. The measurement of production is based on Per
Man Per Day (PMPD).The maximum productivity of a worker is 9 cycles per day and the
company could reach up to 7.7 units per day on an average. The plant has a installed
production capacity of 9500 bicycles per day. But the capacity utilized fall in between 5000
to 6000 per day.

3.4.20 PRODUCTION TURNOVER

The production turnover if the product is 1.2 to 2 lakhs bicycles per month. The demand of
the market is too high and the supply is less, which is the home market demand met is 20%
less than the actual demand. Thus the company can use the idle capacity to produce more and
meet the home market demand.

3.4.21 MAINTENANCE TYPE

The plant is using both preventive and predictive maintenance for the machines, tools and
equipments in the plant. The preventive maintenance is done twice in one week and
predictive maintenance is done periodically, that is once in 15 days .The employees who are
doing maintenance is having 20 years of experience in the same field.

3.4.22 QUALITY CONTROL

The products of TI Cycles are known for its quality. Thus quality is not compromised at any
cost in the organization. Quality is maintained in both the product and the process. Zero
defects is their motto and they have achieved the same. They weigh the product on the pre set
standard and see that the product matches with the specifications in the so called standard.

3.4.23 TOTAL QUALITY MANAGEMENT (TQM)

 34

Total quality management is a management approach centered on quality, based on the

participation of an organization's people and aiming at long term success (ISO 8402: 1994).
This is achieved through customer satisfaction and benefits all members of the organization
and society. The company is following the TQM practices very strictly. TICI has bagged CII
EXIM Bank award for strong commitment to TQM. In the Organization TQM is practiced at
two levels such as individual level and group level. An individual will assess the product and
process quality and the group level assessment is for product price and the quality in delivery
of the product. A Cross Functional Team (CFT) will discuss the TQM activities of the
organization. A quarterly unit level meeting, a half yearly MD level and a Yearly Chairman
level meeting will happen for discussing TQM activities within the organization.

3.4.24 INVENTORY MANAGEMENT

The company has got inventory management but it is a bit backward. As they stay behind in
inventory management they are incurring high inventory cost. But now the company is
focusing more on it. The organization has got an inventory of both raw materials that are the
components waiting for phosphating, painting and finishing and the inventory of finished
goods which are ready for shipment.

3.4.25 ABC ANALYSIS

Activity Based Costing, or ABC, is a method of allocating overhead and direct expenses
related to the most important activities of the company first. This process allows business
owners and managers an opportunity to better define the areas of manufacturing or sales that
generate the most profit for the company. Inventory analyzed under the ABC method is
classified in order of profitability to the company. Class A inventory accounts for 80 percent
of revenue, class B inventory for 15 percent of revenue and class C inventory for 5 percent of
revenue. The ABC analysis is a business term used to define an inventory categorization
technique often used in materials management. It is also known as Selective Inventory
Control. The company is following the ABC Analysis for inventory analysis.
 35

3.4.26 KAIZEN APPROACH

Kaizen is small improvements and a change for better. It must be accompanied by change of
method. The Kaizen concept stimulates productivity improvement as an ongoing process in
any company. It is a practice oriented strategy which leads to creation of culture of
improvement It is more a way of life or at least a cultural approach to quality improvement.
The implementation of philosophy of Kaizen can be achieved through involvement of
employees to effect improvements. The company is following the Kaizen approach. Kaizen
is a system of continuous improvement in quality, technology, process, company culture,
productivity, safety and leadership. In the organization all the employees from the top to
bottom are allowed to put forward their suggestion in any aspect in the organization and their
suggestions are encouraged and rewarded.

3.4.27 WASTE MANAGEMENT

The company is treating waste generated from different sources in different way. They have
got a sewage treatment plant. The sewage treatment plant is used to treat the sewage water
is coming from the canteen and toilets. The treated water is then used for different
activities such as gardening.

3.4.28 ETP (EFFLUENT TREATMENT PLANT) PROCESS:

 36

In ETP process, the water from the processing plant is driven. Here the water which is to be
treated is first sent it to the collection tank. Here the ph of the water is around 2.Then it is
send to collection tank, here it is neutralized by mixing with dye and alum. Here the PH of
the water is around 6.5. Then this treated water is sent to the clarifier tank. Here the water is
separated from the solid by a large turbine.

The cleaned water is settled down at the side of the clarifier. The sludge particles are settled
down. Then the water is collected at collection tank here the PH is 6. Next the water is given
to blended mixing tank; here the water is mixed with lime to increase the Ph to 6.5 to 7.

Finally the water is send to the clarifier tank and then to the overhead tank. The water from
the overhead tank is send to RO plant for further purpose.

3.4.29 STP PROCESS:

 37

In STP plant the water from toilet, canteen is collected in the STP collection sump. Then this
water is sent to the aeration tank, here the collected water is sprinkled or prayed in order to
separate the solid particles in the water, here the water is De-oxidized by adding tab, urea,
BioZen, and neutrant bacteria's. The sludge settled in aeration tank is used for manure. Then
the water is send to STP clarifier for settle down the minute particles. Next the water is send
to the blend mixing tank, clarifier tank, and finally to the overhead tank which is same as
ETP process.

3.4.30 COLLECTION SUMP:

The sewage water from canteen and toilets is collected in the collection sump Then

it is pumped with the use of a motor and it is supplied to the aeration tank. The sledges are
settled down on this sump.

3.4.31 AREATION TANK:

The sewage water collected in the collection sump is taken to the aeration tank. This aeration
tank contains the living MLSS (Mixed Liquor Suspended Solids). This is a living molecule.
If the MLSS is dead or with low capacity, the water cannot be recycled. The MLSS requires
air continuously for living. The quantity of air supplied to the MLSS is DO (Dissolved
Oxygen) is 3.0.The quantity of MLSS lies between 2500-3000.1f the MLSS is less than
2500,Urea Dap is added to raise the MLSS. The continuous supply of air is given by means
 38

of a blade that is made to rotate at the bottom of the tank. Then it is send to the clarification
tank.

3.4.32 VENDOR'S LIST

A vendor, or a supplier list, is a list of individuals or enterprises that contributes goods or

services to an organization.

 Tube Products of India.

 Naaga Engineering.
 Ortey Engineering.
 Shrishti Engineering.
 Exact Engineering.
 WEWILL Engineering.

These are the major vendors of TI Cycles. Apart from this some components are coming
from Ludhiana and in and around Chennai. Ludhiana is the major hub for bicycle raw
materials.
 39

CHAPTER- IV

OBSERVATION AND LEARNING

4.1 OBSERVATION FROM HR DEPARTMENT

Human resources professionals play a key role in any organization, where they maintain and
manage every aspect of the business as it relates to employees and working conditions.

 Recruit candidates
 Hire the right employees
 Process payroll
 Conduct disciplinary actions
 Update policies
 Maintain employee records
 Conduct benefit analysis
 Employee Development
 Employee Relations

4.2 OBSERVATION FROM FINANCE DEPARTMENT

In finance and accounts the functions they perform: account receivable and payable, TDS,
costing, sales and purchase entries, GST, payroll, inventory management, budgeting, reports
and financial statements, legal compliance, financial control, and recordkeeping. These
functions account for the bulk of time, labor, and resources expended by the accounting
department. Accounting software helps accounting departments automate their invoice,
payments, payroll, bookkeeping, and taxes and help for accounting departments to close their
books with real-time expense reporting.
 40

1. PAYMENT VOUCHERS - A document that serves as evidence for a business transaction

is called a Voucher. Sometimes mistakenly seen as just a bill or receipt; it can have many
other forms. It is not the appearance of it that matters it just needs to act as evidence of a
transaction. When a transaction is entered, the evidence of that transaction is also confirmed.
A voucher helps in recording expenses or liability and further helps in its payment.

2. PURCHASE AND SALES ENTRY- Any purchase and sales entry in Tally with GST can
be recorded in two different methods. The first is the voucher type, and the second is the
Invoice type. As Voucher: In this, you can record sales or purchases and GST payable or
receivable as a voucher.

4.3 OBSERVATION FROM MARKETING DEPARTMENT

Marketing Department identify the needs of the customers and try to fulfill the needs of the
customers they Develop pricing strategies, balancing firm objectives and customer
satisfaction. Identify, develop, and evaluate marketing strategy, based on knowledge of
establishment objectives, market characteristics, and cost and markup factors.

1. Monitor their website

2. Work the blog

3. Review prospects and leads

4. Check on social media

5. Manage paid media

6. Budgeting for marketing & advertising

 41

CHAPTER – V

LEARNINGS AND CONCLUSION

5.1 LEARNINGS

1. To keep track of the activities to reduce delay of services to the client.

2. Learnt about the data entry process.

3. Developed interpersonal skill by having a frequent communication with the customer

as well as the organization.
4. Acquired more knowledge on the process carried out in the organization.

5. Learnt about the mail management that provides effective service to the client.

6. Developed the time management skills. Learnt about the excel operations.

7. Learnt about the maintenance of the customer records.

8. Able to manage and marketing the personal authorized accounts.

9. It was a very good opportunity to correct or evaluate myself and to understand how
capable I am to adapt, to new changes or interested to learn the things in real or actual
working conditions.
10. In TI Cycles of India, I was taught how things work in the manufacturing industry
and how the decision making is done and how the co-ordination between the
employees will create a unity. among employers which is very helpful in decision
making and building a good future and carrying out the business in a right way.
11. I got an opportunity to speak with various employees (managers, officers) who work
in the various departments and gained experience in various fields. Also I learnt how
the communication must be precise and to the point between various management.
12. I came to know what exactly company needs whether quality of work or quantity of
work to be done or both. And also to some extent I could understand the TI Cycles of
India's work culture. Uniformity which is a very essential element that management
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should maintain among their employees and outlook of an employee will also create
an impression on the minds of another about their taste, preference, values.

5.2 CONCLUSION

India is the second largest producer of bicycles in the world. The industry is facing a lot of
constraints but still Indian bicycle industry is growing (only at 2-3 percent), the children's
cycle's segment is growing at 15% per annum.

The Organisational study conducted at TI cycles of India was a great experience. The
learning happened was very precious and refreshing. The live experience of watching the
working of each functional department gave immense exposure. Handling of different
situations in the organisations where unique and the problem solving tactics used were seem
simply but were complex. Each day was challenging, only the atmosphere found same from
that of the other day. The decision making in different case were extremely challenging but
sounds interesting too. The way each departments function was distinct from one another.
The company culture was vivid in each and every functions of the company.

The Murugappa Group has upheld its ancient family tradition of earmarking and spending
a portion of family income for social service in its business enterprise also. Because the
Murugappa family believes that social responsibility is not just a ritual — whether on
family or corporate level they believe it is fulfilling one's dharma. Therefore in all its
philanthropic endeavours, the Group reflects its spiritual conscience and not just corporate
obligation.

In short all the activities in the company put up the spirit of integrity, passion, quality ,
respect and responsibility.
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