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A

PROJECT REPORT

ON

THE STUDY ON RETAILERS ATTITUDE TOWARDS CFL OF THE AJANTA

QUARTZ WITH REFERENCE TO SURAT CITY

SUBMITTED IN

PARTIAL FULFILMENT FOR

THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(BBA)

SUBMITTED BY

Mr. PRAKASHKUMAR D. LAKHANI (29)

PROJECT GUIDE

Mr. HORMAZ D. PATEL

THE SURAT PEOPLES CO.OP.BANK COLLEGE OF BUSINESS

ADMINISTRATION, UDHNA,

SURAT

2011-12


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UDHNA CITIZEN COMMERCE COLLEGE

&

S.P.B. COLLEGE OF BUSINESS ADMINISTRATION

&

UDHNA ACADEMY COLLEGE OF COMPUTER APPLICATION & INFORMATION TECHNOLOGY

(Self Financed College Affiliated To VNSGU, Surat)

(Managed By Udhna Academy Education Trust, Udhna)214, Ranchhodnagar, Opp. Swaminarayan Temple, Surat-Navsari Road, Udhna, Surat 394 210

(B.B.A. Programme)Phone : (0261) (B.Com. : 2277739) (B.B.A.: 2270825) (B.C.A.: 2273542) (Fax : 2277739)E-Mail ID : (B.Com. :[email protected]) (B.B.A. :[email protected]) (B.C.A.: [email protected])Website : www.udhna-academy-edu-trust.org B.Com.: NAAC Accredited B (CGPA 2.67) 2009

===============================================================================================

Ref: Date:

===============================================================================================

CERTIFICATE

This is to certify that Mr. Prakashkumar D. Lakhani has prepared

the Project Report entitled The Study on Retailers Attitude towards CFL of The Ajanta

Quartz with Reference to Surat City under my guidance & supervision.

This project embodies the result of his work & is of the standard expected of a candidate for

the successful completion of Bachelor of Business Administration Degree.

Date:

Place: Surat

_______________ _______________ _______________

Faculty Guide Vice Principal Principal

Mr. Hormaz Patel Dr. Daisy Sheby Thekkanal Dr. A.G.Mehta
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.udhna-academy-edu-trust.org/http://www.udhna-academy-edu-trust.org/http://www.udhna-academy-edu-trust.org/mailto:[email protected]:[email protected]:[email protected]


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III

DECLARATION

I, the undersigned, Mr. Prakashkumar D. Lakhani here by, declare that this dissertation titled

The Study on Retailers Attitude towards CFL of the Ajanta Quartz with Reference to Surat

City at Ajanta Manufacturing Ltd is an original and bonafide work carried out under the

guidance of Mr. Hormaz D. Patel, Assistant Professor, The Surat Peoples Co-Op Bank

College of Business Administration, Udhna, Surat.

The empirical findings in this report are based on the data collected and have not been taken

from any other reports.

This dissertation does not form any basis for other degree or diploma.

__________________________

Mr. Lakhani Prakashkumar D. Date:

BBA Roll No. 29 Place: Surat


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IV

ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any

task would be incomplete without the mention of the Leaders, whose constant

guidance and encouragement crown all the efforts with success.

I am highly obliged to the South Gujarat University for arranging the

programme of practical training in Bachelor of Business Administration in

such a manner.

I would like to extend my gratitude to Mr. Sanjaybhai Patel, who is owner of

Krishna Marketing Pvt. Ltd., Surat, and distributor of Ajanta Manufacturing Ltd.

In South Gujarat origin, who provided me useful information and data regarding

the subject with their cent percent participation and supported in making this

project report a successful task. It was a memorable experience to work with

them and complete my winter training.

It is my privilege to express my deep s ense of gratitude to Mr. Hormaz D. Patel

for his efforts, guidance, valuable comments and suggestions for making this

project report. He helped me to complete my report on the practical study and

gave contribution to improve and expand my practical knowledge.

Finally, I express my intense gratitude to my parents whose blessings and

helped me to translate my efforts into fruitful achievement.


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V

INDEX

SR NO. TOPIC PAGE NO.

I CERTIFICATE (From College) II

II DECLARATION III

III ACKNOWLEDGEMENT IV

IV INDEX V

1 INDUSTRY PROFILE 1

2 COMPANY PROFILE 19

3 REVIEW OF LITERATURE 31

4 CONCEPTUAL FRAMEWORK 43

5 RESEARCH METHODOLOGY 66

6 DATA ANALYSIS & INTERPRETATION 78

7 FINDINGS & CONCLUSIONS 112

8 SUGGESTIONS & RECOMMENDATIONS 114

Bibliography

Annexure


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CHAPTER1

INDUSTRY

PROFILE


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CHAPTER 1

INDUSTRY PROFILE

1.1 HISTORY OF THE INDUSTRY1.1.1 Introduction

As long as the memory goes back we can say that in Greek and Indian mythology the people

having extraordinary power were able to send message very quickly. So, what was the basis of

that technology, were they using any kind of wireless devices, whose components are electronic

as today are wireless devices, whatever it may be there is no clear idea of those technologies orno proof that whether they were using those things.

In the 21st century we are enjoying well developed electronics. In some form or the other every

day we deal with the electronic devices several times. So why we are interested to look at the

past, because it is required. Like the history of a nation from which its people get inspired (or

learn something from their past faults) the history of any science inspires its future generations.

Even more than that those who spent their whole life for the inventions/discoveries, they did not

do that for themselves rather they did it for the whole society, the whole world. So we should

tribute them. This electronic world was not just the effort of some years or decades, rather it is

the result of the hard work of great minds since ages. So now it is the time to remember them.

In the coming sections the whole scenario of the development of the electronics in the whole

world have been looked at in a chronological order. Also their effects on the contemporary

society and economy have been analyzed.

1.1.2 Electronics before Twentieth Century

Now let us divide the history of electronics into two broad categories. That can be done on the

basis of development of the electronic technology and its use in the in the day to day life. Before

the 20th century there was a little or almost no electronics in the day to day life of a common

man. So, the time before 20th century can be taken as the pre-developmental era in the growth of


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electronic technology. So, we should start from the very beginning of electrical engineering,

which is regarded as the parent of electronics. The formal beginning of electrical engineering

goes back to 18th century when Franklin gave the explanation to the cause of thunder and

lighting. It was a big mystery at that time. But, the lucid explanation of Franklin gave the first

idea of charge flow and its consequence.

Though the concept of charge was there before Coulomb there was no formal mathematical

theory to explain the concept. So Coulombs theory was regarded as the first mathematical

expression that defined the electrical charge in a well-defined manner. He also invented the

torsion balance and that helped him to calculate the force of interaction between the electrical

charges, which is today known as Coulomb force after his name.

There after the next big name was Luigi Galvani who discovered the so called bio-electricity

from his famous experiment using the frog leg. He thought that electricity as one of the sources

of life. That created some ideas that electricity is related to life at that time. But, anyway his

famous frog leg experiment gave some solid basis to the future researchers to develop the

concept of potential difference.

The mystery of the frog-leg experiment was disclosed by Alessandro Volta. He repeated

Galvanis frog leg experiment using various types of electrodes. There after he concluded that

the spark in the frog-leg experiment is not due to the frog rather it has a different reason. He told

that when the copper and zinc electrodes are kept in the acid there arises some potential

difference between the electrodes and the charges flow from one electrode to the three if there is

any physical connection between them through some conducting wire. That was the first electric

cell mad by Volta. After his name the potential difference is also known as Voltage.

The strangest and the most effective thing in the history of electrical engineering is the merging

of magnetism with the electricity which gives rise to the one of the most fundamental

interactions of nature known as the electromagnetic interaction. But it happened quite late in

1820 when Oersted found that the needle of a compass is deflected when kept near a current

carrying conductor. So from that observation he concluded that the magnetism of a compass is

affected by current. There after magnetism is considered as an aspect of electromagnetism, not as

a different entity. Ampere proved the relationship using algebra. Gauss also gave the alternative


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forms of mathematical equations to explain electricity and magnetism. Those works of Gauss are

known as Gauss theorems.

But it was not known why some energy in the form of potential difference is required to make

the charges flow from one end to the other. The explanation came from the German scholarGeorge Simon Ohm. He for the first time introduced the concept of resistance and conductance.

In almost all the conductors there is some resistance that opposes the flow of current through

them. Thats why the charges cannot flow in the conductors without the presence of any energy

source in the form of potential difference. Then it was proved that potential difference is very

important to keep the charges moving from one end to the other in a conductor. Potential

differences can be created in various ways. At that time the chemical cells were the main sources

of electricity.

In the next phase started the real victory of the electrical engineering under the leadership Michel

Faraday. He not only gave birth to some interesting theories, but himself invented some

fundamental electrical machines like the transformer and electric motors. Faraday was a poor

child who had always aims to do something big in the scientific research. He got the opportunity

from the then big name Humphrey Davy. After that Faraday had never looked back. He gave

many fundamental theories which are like the back bone to the electrical sciences. His concept of

lines of forces was not accepted by the then scientific community, but was later found to be the

fundamental fact of electromagnetism. He first gave the knowledge of electrical power

generation and made the first transformer of the world. But it was a bit strange that he himself

did not have the idea that his discoveries will someday change the science of the world.

Faradays laws of electrolysis were beneficial to both the chemists and physicists of that time.

That also was a fundamental tool to prove that the electric charges are quantized. He also gave

the concept of inductance, which was also developed by another great of that time, Joseph

Henry. Lenz was there to modify faradays second law of induction. So the electrical engineering

was unstoppable and running really fast to be the most attractive science at that time.

Faradays law was not accepted by many of his contemporaries because the nature of the lines of

forces he described did not sound satisfactory to many at that time, but there was another genius

to understand and explain it quite lucidly. He supported Faraday and combined all the

mathematical equations available at that time to systematize the electrical science. Not only that,


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he also gave some other stunning theories that changed the science thereafter. He was none other

than Maxwell. Maxwells equation is today fundamental to all theory of electrical machinery and

communication sciences. It has used in every field more or less. His theories are one or the best

scientific achievements of the world for ever. He unified the optics as a part of the whole

electromagnetism. After Maxwell it was just the matter of time to invent the electrical machines

and communication devices to deliver the service to the mankind and to take the civilization in

the road of science and technology.

The first achievement after Maxwells theory was the invention of the electric bulbs by another

genius Thomas Edison. The lighted the world by his electric bulbs. He invented numerous

electrical devices and contributed the most to the consumer electrics. He was mainly using DC

and was the greatest advocate of the use of DC. But one of his contemporaries Nicola Tesla had

something different in his mind. He used his brain to make AC popular. He invented the

induction motor and proved that AC can be used more efficiently than DC. After some years

with the help of Westinghouse he took the tender of the Niagara Project and started generating

AC. Another big thing had happened at the same time while Edison was trying to light an electric

bulb. That was the Edison effect or the thermo ionic effect. Edison found that in a closed

environment even without the physical contact of wires there exist a small current through them

when they are heated to a sufficiently high temperature.

By the same time there was a great need to reduce the distance of the various parts of the world

by means of some communication technology. Alexandra Graham Bell opened the account by

inventing the telephone. At around the same time the telegraphic communication using the

Morse code was very popular. That was even used for the transatlantic communications. But the

main breakthrough, which mesmerized the communication science, came when the German

physicist Henry Hertz discovered the radio waves and also gave the methods to transmit and

detect them. Then started a new chapter in the communication technology area. Not far than a

decade after that the Russian scientist Popov and the Italian electrical engineer Marconi inventedthe radio and used antennas for radio communications. The electronics had its identity in the

world, but without the presence of its principal components.


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1.1.2 Electronics in Early 20th Century

Electronics in the early 20th century started thriving at a greater speed unlike the pre-20th

century developments. From the starting itself the electronics got its special recognition. The

radio invented by the Italian genius Marconi and the work of Henry Hertz opened the road to

further discoveries and inventions. In the first decade the new thing that was welcomed to the

technical world was the vacuum tube. The vacuum tubes at that time worked as a miraculous

component for the radio devices.

Marconis radio needs some good detectors for the receiving of the incoming radio waves. For

that reason a good rectifier was needed which can convert the AC into DC. There were already

many AC generating stations and AC was getting very popular. So, the engineers were planning

to change the AC into DC instead of producing the expensive DC. The duo of Tesla and

Westinghouse brought many exciting features to the AC at that time. The invention of the

induction motor by Tesla was a revolution in the use of AC.

Someone brings the breakthrough when all the great minds are in need. That happened again.

The then famous English physicist Fleming found an alternative to the DC production. He

invented the first vacuum tube using the principle known as Edison Effect. According to the

Edison Effect when there is a small separation in between the two conductors connected to a

source of electricity and are heated then there can be a current in the conductor. That means the

vacuum in between the conductors becomes a good carrier. That idea was actually in the brain of

Sir Ambrose Fleming. So, he tried to do something which can demonstrate the Edison Effect.

But when he tested his newly invented device he was happy to find that it can work as a rectifier,

means which can change the AC into DC. History was created. This was the real birth of

electronics. Here starts a new chapter in the history of human being. At that time Marconis radio

badly needed some good detectors. This vacuum tube filled that need. It has two electrodes and

thats why it was named as diode. It was the first diode and the main motivation behind the solid

state devices which after some decades take control of the whole world economics. Just after two

years of Flemings diode Defrost in the US invented another similar device which was named as

triode, because it had three electrodes. Besides the anode and cathode there was an extra

electrode known as grid. The grid was controlling the flow of charges from the anode to the

cathode. It was wonderful that triode had the characteristics of an amplifier. So it helped a lot in


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the growth of the communication at that time. Because the amplifier was an important

component in the radio and other communication devices to strengthen the weak radio signals.

A revolution in the whole science came when Einstein proposed his historic theory of relativity.

But no one was ready to accept his theory at that time. But the work of J J Thomson andRutherford opened the secrets of the atoms and its sub-particles. Max Plank and Niels Bohr

provide the further explanation to the atomic theory. Einstein himself came with his big version

known as the general theory of relativity. He was not bothered about the critics. He himself

saved the corpuscular theory of light from death and opened the road to the quantum theory. It

was not far to bring the quantum theory into light after Einsteins Nobel winning photo-electric

effect. Louis De Broglie, Heisenberg, Schrdinger and Dirac proved the reality of the quantum

theory. So the research in the scientific community got a great speed.

The computers were another main attraction at that time. Due to the world wars there was a big

need of computers for war related tasks like code breaking. During the first and second world

war some computers were made for this purpose. But they were not that efficient as many of

them were using decimal systems and all the prime components were made up of vacuum tubes.

The invention of the television was a miraculous thing for the mankind. It was revolution in both

communication technology and also for the world media. The distances between the continents

did not seem to be far enough. People were able to watch the distant things from their home. The

entertainment industry got new life. The popular artists throughout the world become well

known and got a huge recognition. The credit goes to the British engineer John Logie Baird who

followed the foot prints of Marconi and tried to send the images in the same way as the speech.

After a long experiment he found that a series of static pictures if sent within a small interval of

time in between them, seem to be moving. This move was successful after a number of trails.

Then came the Second World War and the scientists were busy in war related research and the

attention from the general research was withdrawn. But the war technology also helped a lot in

the future.


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1.1.3 Discovery of the transistor Effect

The diode valves of the early twentieth century were large enough to be inside the electronic

devices and they had many other problems like high power consumption, low reliability and the

requirement of good cooling arrangements etc. So the electrical engineers and physicists at thattime tried for the development of some alternatives which can fill up the place of troublesome

vacuum tube in case of both the detectors and amplifiers. At that time the physics of solids were

also on its way to bloom. Many theories like the Fermi-Dirac equations had opened the wide

scale research on the solids. In Bell labs the scientists were desperately looking for some

alternative to the vacuum diodes and triodes for the communication technology.

After the end of the horrible WW2 the whole world took some rest. But the scientific community

who were working in the war forcefully or by the motivation of the countrys top leaders did notrest. Rather they started their original intended works at their previous work places. The scenario

in the US was also not much different. After the war the economy was weak. So the industrial

research was mainly focused on the economic development. Bell labs too took some leading in

the development of the communication sciences. The research group in the Bell Labs found that

the existing technology and the devices for better communication were not available at that time.

So their main concern was to find some alternative for the existing amplifiers. The valve

amplifiers were the main obstacle in the road of progress. So, they looked for some solid state

devices. The findings of Russell Ohl had confirmed that the pure silicon when doped with some

impurities of tri and penta-valent materials can be used as two layers of a PN junction diode.

They had some foresights that, the junction phenomenon may be used for the building of a new

amplifier. The group led by William Shockley was investigating these facts. Other team

members were Morgan, Bardeen, Brattain, Gibney, Moore and Pearson.

Fortune favors the brave. The auspicious day came and the science started growing at an

exponential rate thereafter. Thanks to the genius of the three young scientists of the Bell labs.

They found a new concept known as Transistor effect. It was for the first time discovered by

Bardeen and Brattain. That is known as point contact transistor. That was mainly contributed by

Brattain and Bardeen, who thought that the effects are mainly due to some surface phenomenon.

But Shockley was not dormant. He too was working hard on something different, which is today

known as n-p-n transistor. He gave the theory that the transistor effect was due to some bulk


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phenomenon. After that he worked hard on the semiconductor theories and gave a satisfactory

explanation to the transistor effect. His book Electrons and Holes in Semiconductors is a

popular book today as well. Despite these two available models of transistor there were some

other problems which were barriers in the production of transistors in large scale.

1.1.4 The Endless Journey after Transistor

The real electronics what it is called today was actually started after the discovery of the transistor

effect. Transistor opened the road for the electronics and there after electronics got its independent

identity in electrical engineering. More importantly it opened the road for the computing world.

Computers of various types started hitting the market and the research works got a boost.

Some other problems were also there like the assembling of the electronic components on a single

mother board. It was worsened when the metallic contacts cross each other and crowded the mother

board. Jack Kilby in Texas Instruments found a very nice solution. He suggested to throw away all

the wires and tried to connect the resistors, capacitors and transistors on the same piece of wafer

internally. Surprisingly his ideas worked and gave birth to the Integrated Circuit industries. At

around the same time Shockley had left Bell Labs and started his own company in California, whose

name was Shockley Semiconductor. Some other brilliant young researchers also joined his company

there. Among them who are famous today are Gordon Moore, Robert Noyce and Jean Hoerni. Robert

Noyce also did many contributions to the IC technology by joining the Fairchild Company and the

Fairchild Semiconductor was born. By the efforts of both Noyce and Kilby the IC industry became

very popular and looked forward for its next successor, the microprocessor. Another history was

being made in the USSR at the same time. The first artificial satellite Sputnik was sent to the space.

There was a big demand for the better electronic components for the control and performance of the

satellite and other electrical devices like the big motors and generators. Huge demand of transistors

and ICs revolutionized the electronics industry at that time. A new type of transistor was invented in

early sixties, which is known as MOSFET. MOSFET is slower than the junction transistor but it issmaller, chipper and consumes less power.

In 1965 Gordon Moore came out with an awesome paper called Cramming more Components onto

Integrated Circuits. In that paper he described that the number of transistors used on a single chip of

silicon will grow exponentially. In 1968 Rob Noyce and Moore left Fairchild to start Intel, both of

whom were very popular already in the field of microelectronics. In 1971 their company invented the


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first microprocessor well known as 4004 having 2300 transistors on one silicon chip. The credit

mainly goes to the young engineer Ted Hoff. While working on a Japanese project he found some

problems with integrated circuits and planned to have even larger integrated circuits which can have

the whole computer on a single chip. That microprocessor led the way to the successors like the

8080, 8085, 80486, Pentium series and the most modern processors like the Xeon too.

1.1.5 The Electronics Industry in India

The Electronics Industry in India took off around 1965 with an orientation towards space and

defense technologies. This was rigidly controlled and initiated by the government. This was

followed by developments in consumer electronics mainly with transistor radios, Black & White

TV, Calculators and other audio products. Color Televisions soon followed. In 1982-a significantyear in the history of television in India - the government allowed thousands of color TV sets to

be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985

saw the advent of Computers and Telephone exchanges, which were succeeded by Digital

Exchanges in 1988. The period between 1984 and 1990 was the golden period for electronics

during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was

followed by political and economic uncertainties within the country. Pressure on the electronicsindustry remained though growth and developments have continued with digitalization in all

sectors, and more recently the trend towards convergence of technologies. After the software

boom in mid 1990s India's focus shifted to software. While the hardware sector was treated with

indifference by successive governments. Moreover the steep fall in custom tariffs made the

hardware sector suddenly vulnerable to international competition. In 1997 the ITA agreement

was signed at the WTO where India committed itself to total elimination of all customs duties on

IT hardware by 2005. In the subsequent years, a number of companies turned sick and had to be

closed down. At the same time companies like Moser Baer, Samtel Color, Celetronix etc. have

made a mark globally.


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1.2 CURRENT SCENARIO

In recent years the electronic industry is growing at a brisk pace. It is currently worth US$ 32

Billion and according to industry estimates it has the potential to reach US$ 150 billion by 2010.

The largest segment is the consumer electronics segment. While is largest export segment is ofcomponents.

The electronic industry in India constitutes just 0.7 per cent of the global electronic industry.

Hence it is miniscule by international comparison. However the demand in the Indian market is

growing rapidly and investments are flowing in to augment manufacturing capacity.

The output of the Electronic Hardware Industry in India is worth US$11.6 Billion at present.

India is also an exporter of a vast range of electronic components and products for the following

segments

o Display technologieso Entertainment electronicso Optical Storage deviceso Passive componentso Electromechanical componentso Telecom equipmento Transmission & Signaling equipmento Semiconductor designingo Electronic Manufacturing Services (EMS)

This growth has attracted global players to India and leaders like Solectron, Flextronics, Jabil,

Nokia, Elcoteq and many more have made large investments to access the Indian market. In

consumer electronics Korean companies such as LG and Samsung have made commitments by

establishing large manufacturing facilities and now enjoy a significant share in the growing

market for products such as Televisions, CD/DVD Players, Audio equipment and other

entertainment products.


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The growth in telecom products demand has been breathtaking and India is adding 2 million

mobile phone users every month! With telecom penetration of around 10 per cent, this growth is

expected to continue at least over the next decade. Penetration levels in other high growth

products are equally high and growth in demand for Computer/ IT products, auto electronics,

medical, industrial, as well as consumer electronics is equally brisk. Combined with low

penetration levels and the Indian economy growing at an impressive percent per annum, the

projection of a US$150 Billion+ market is quite realistic and offers an excellent opportunity to

electronics players worldwide.

(Unit: %) 2005/06 2006/07 2007/08 2008/09 2009/10

LG (S. Korea) 10.8 13.6 16.7 20.5 20.4

Videocon 21.7 20.3 21.2 23.2 19.9

Samsung (S. Korea) 8.6 11.9 14.0 12.0 12.5

Mirc 9.5 10.8 9.4 9.5 9.2

Philips 4.0 4.1 3.5 4.5 4.7

Trend 2.0 1.9 1.9 2.1 3.3

Panasonic (Japan) 1.5 1.1 1.1 1.2 1.3

Indo Count 0.7 1.2 1.5 1.7 1.4

Sharp (Japan) 2.4 1.9 1.3 1.0 0.9

Salora 1.5 1.7 0.9 0.7 0.5

BPL 12.8 5.2 4.8 1.5 0.4

Import 0.3 0.4 2.0 4.6 7.8

(SourceSurvey of Electronics Manufacturing Service Industry by Earl Barnes, Jim Dai, Shijie

Deng and Doug Down from School of Industrial and Systems Engineering, Georgia Institute of

Technology, Atlanta, Georgia 30332, USA)


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1.3 Current players in Indian market

1.3.1 Consumer Electronics Manufacturers

The main electronic manufacturers in the Indian market are Videocon Industries, LG Electronics,

Samsung, Onida, Panasonic India, Bose India, BPL, etc. The upcoming players are D-Link,

Samtel, WeP and Tyco followed by Nokia and Motorola.

Videocon Appliances Ltd

One of Indias ingrown companies, Videocon boasts of an annual turnover of the tune of

US$4.1billion. It has 17 sites in India, and is known to be the third biggest manufacturer of

picture tubes in the world. It also has global presence, with plants in Mexico, Italy, Poland,

China and the Middle East.

L.G Electronics

The market leader in consumer durables is LG for close to a decade in India. They have also

been recognized for their superior innovation and after sale service. It is proud of their

distribution channels which offer its products to the breadth and length of India. As early as1998, LG with a budget of Rs500 crores set up manufacturing facility with a state-of-the art

technology at Greater Noida, near Delhi. L.G also has recently entered directly into the consumer

market by setting up retail shops and boast of retail sales Rs. 10,000 crores in 2008

Samsung Electronics

Samsung entered India in 2002 with an 80 acre sprawling facility at Noida and mainly

manufactures color TVs, mobile phones and some white goods. Its manufacturing facilities are

best known for its high automation, high quality and state of art. Recently they opened another

unit at Sriperumbudur, near Chennai. This facility has an investment plan of USD100 million

starting from 2007, over a 5 year period.


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Nokia, India

Nokia also set up its manufacturing plant in Sriperumbudur, Chennai in 2006, just taking 5

months to complete the entire factory construction. Starting with 550 people, it has grown to a

size of 8000 people today and employs 70% women. The manufacturing facility, with asprawling area of 200 acres, incorporates the best quality, high efficiency and a great supply

chain system.

1.3.2 Consumer Electronics Retailers

ViveksThe Unlimited Shop

Viveks is one of South Indias oldest consumer electronic retailer founded in 1980s, which set up

a retail outlet at Chennai, with humble beginnings of housing fans, radios, fans, mixers, irons,

heaters and other household equipments. Till 1994, it had set up only 3 showrooms, however,

with a strategic initiative for rapid expansion, it established its dominance in the two states on

Tamil Nadu and Karnataka with 51 showrooms covering a retail space over 1,75,000 sq. and

boasting of a group turnover of Rs. 400 Crores and with wide product offerings. It plans of

setting up of 50 more showrooms in south India.

Infiniti Croma

The Croma retail chain is owned by Infiniti Retail which is a Tata sons 100% subsidiary and set

up its first store in 2006, which was 20,000 sq. ft. and had an initial investment of Rs 35 million,

hosting various brands in household durables and consumer electronics. It strategically has an

alliance with international organized retailer, Woolworth for back-end operations. They plan to

open out 40 stores by 2010 and Croma distinguishes itself by providing one-stop shopping with

customized consultation to the middle- and upper-middle class customer segment.


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E-Zone

E-Zone, an electronics specialty store, which has several brands all under one roof, was launched

by Future Group, in 2007 at Lucknow. They have an interesting store format which consists of

three dedicated zones - Liberation Zone, Experience Zone and Home Zone to meet the electronicneeds of the entire family. E-Zone competes with Croma, by offering the best deals and low

prices and is positioned more towards the lower-middle and middle class customer segment. The

company has expanded to 40 stores, all over India in about 2 years.

NEXT Retail India

NEXT Retail India, Ltd. is a subsidiary of Videocon Industries, Ltd and opened its first retail

electronic store at Indore in 1999. Today, NEXT Retail India Ltd has more than 300 outlets

across 16 states with a presence in 145 towns spanning metros and large towns and claim to be

Indias Largest Electronics Retail Chain; a giant in the organized retailing of consumer

electronics, and home appliances. NEXT has more than doubled its last years turnover in the

current financial year. Their plans ahead are more ambitious with a targeted turnover of 1800

Crores for next year with 600 plus outlets.

Besides these top players, there are specialty stores dealing only with mobile phones, laptops and

exclusive dealers for the big electronic brands.

Mobile Phones Specialty Retailers

The main players in the mobile phone retailer market are The Mobile Store, UniverCell,

Cellucom, etc. The Mobile Store currently has more than 1050 outlets and plans to have a

network of 2500 stores by 2010 across 650 cities, covering virtually every major town in every

state across India. Chennai-based mobile retail chain, UniverCell, currently has 300 company-

owned stores across the four southern states including 70 in Andhra Pradesh, and is trying to

touch 400 stores by March 2010 through the franchisee mode. Cellucom which hosts mobile and

laptops, first outlet was opened in January 2007 at Gurgaon. Currently there are 120 stores across

15 cities including top four metros. These outlets cover the entire value chain in formats like


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stand-alone stores in Malls, as well as Shop-in-Shop within Shopper's Stop, Lifestyle and other

large-format chain stores

Laptop Specialty Stores

It is very interesting to note that there are very few multiband laptop specialty retail chains in

India. Most laptop showrooms are local players or dealers for the big brands like Lenovo, HP,

Acer, etc.

1.4 INDUSTRY ANALYSIS BY PORTERS FIVE FORCES

MODEL INDUSTRY ANALYSIS

Although the Indian Consumer electronics market is highly competitive, the high growth rates

that it promises make it a good industry to enter.

Rivalry Amongst

Existing Firms

Moderate

Threat of New

Entrants

Low to Moderate

Bargaining Power

of Customers

Moderate to High

Threat of

SubstitutesLow

Bargaining Power

of Suppliers

Low


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1.4.1 Threat of New Entrants

Capital Requirements and Economies of Scale:

In the case of retail stores, there is lack of good distribution network and lack of knowledge of

consumer buying patterns which calls for large investment in distribution channels and research

to improve the reach.

Economies of scale is required in as there are large fixed costs associated with setting up a

manufacturing plant as there are problems of under-developed infrastructure, erratic supply of

water and electricity in many areas, a high cost of capital and continuous up gradation of

technical and managerial skills.

Supply Chain Issues:

The existence of too many intermediaries in the supply chain coupled with issues in logistics,

management of POS data, pilferage and distribution and inventory management, eats away the

profits of the retailer, making it unattractive for new entrants.

Product Differentiation:

Though the awareness is increasing amongst the Indian consumers, retailers and manufacturers

are unable to increase brand loyalty. The Indian consumer is very price sensitive and hence he

keeps hoping from one place to another, hunting for good deals.

Switching costs vary amongst the electronic categories. For instance, the switching costs in

mobile phones are high, as consumers who are used to one brand find it difficult to use another

brand. However, for televisions, cameras, and even laptops, consumers are ready to try new

brands based on price for features offered and service quality or reputation of the brand.

Government Policy:

By encouraging manufacturing zones and improving the infrastructure, the government is

developing the entire manufacturing sector, which will help in boosting the electronics


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production in India, which has traditionally been a very small slice of the overall manufacturing

segment. While the government is trying to encourage the growth of the retail and manufacturing

industries in India, there are some policies which need to be looked at.

The duty structure for electronics adds up to 30% which is a significant amount. This is mainlydue to the multiple tax structure which consists of 12% VAT, 8% excise, 4% Goods and Service

Tax, 2% Central Sales Tax and Local taxes.

The FDI policy limits to 51% stake for foreign investors, which forces foreign retailers to use

franchise arrangements, and in the manufacturing sector, the FDI is 100% favoring foreign

investors.

Existence of the grey market due to poor government regulations to keep counterfeits at bay

coupled with the lack of consumer knowledge and legal recourse encourages manufacturers to

churn out spurious products which can lead to lost sales of the tune of 10-15%.

Red tapes and bribery in the Indian government system is also a stumbling block for new

retailers or manufacturers.

Taking into consideration the positives and negatives, India still offers a good chance for new

entrants and hence thethreat is considered to be low to moderate.

1.4.2 Bargaining Power of Buyers

With the emergence of new channels like the internet, auction sites like rediff.com, the general

consumer (buyers) who usually purchase electronic goods from electronic retailers, hyper marts,

music and book stores, can easily compare prices and go for the best deals in town. Though the

better brands can command a higher price, buyers are constantly comparing prices, service

quality and product features and hence commands a moderate to high power in this industry.

Large chain stores like Tata Croma, E-Zone have distinct advantage over the smaller standalone

stores as they can demand good discounts suppliers. As brands play an important role in the

electronics market, the retailers find it difficult to integrate backwards to produce their own

electronic goods as in the case of private food labels. Considering the market dynamics and the

size of the market, the buyers have moderate to high power in the consumer electronics industry.


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1.4.3 Bargaining power of suppliers

The biggest threat is the trend of large suppliers integrating forward as in the case of Dell, Apple,

Nokia, by setting up their own retail outlets. However, in the Indian electronic context, there are

a large number of suppliers in the market who face overcapacities, poor distribution, large duties,and declining margins and hence the bargaining power for suppliers is less and competitive

pricing comes into play. With more companies setting up the manufacturing plants in India, like

Nokia in the south, the bargaining power of suppliers is definitely low to medium. Product

differentiation is more and more difficult in the consumer electronics industry and the existence

of cheap Chinese suppliers also adds woes to the suppliers.

1.4.4 Intensity of Rivalry amongst existing players

There are few key players in the consumer electronic market, but as they are part of big Indian

business groups, they have a lot of muscle power and hence the intensity of rivalry can be placed

at a mid-level. Though factors such as high transport and storage costs, lack of differentiation,

large investments, and low switching costs tend to intensify the rivalry, the fact that the market is

only at the nascent stage with promises of high growth rates of 16% coupled with the diverse

needs of customer groups, and an untapped rural market; the existing players seem to be

enjoying a relatively low rivalry.

1.4.5 Threat of Substitutes

The threat of substitutes for the manufacturers of these electronic goods is medium to high unlike

the case of white goods. As new technology enters the market at increasing pace, the

manufacturers and retailers need to understand the consumer needs. For instance the VCR was

replaced by the DVD player which will soon be replaced by a Blue Ray Player. The

incorporation of camera in the mobile phones is definitely a threat to the camera market. Hence

product innovations in this segment are very high and players in this industry need to mindful of

this.


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1.5 CFL (COMPACT FLUORESCENT LAMP)

A COMPACT FLUORESCENT LAMP (CFL; also called compact fluorescent light,

energy-saving light, and compact fluorescent tube) is a fluorescent lamp designed to replace an

incandescent lamp; some types fit into light fixtures formerly used for incandescent lamps.

Compared to general-service incandescent lamps giving the same amount of visible light, CFLs

use less power (typically one fifth) and have a longer rated life (six to ten times average). In most

countries, a CFL has a higher purchase price than an incandescent lamp, but can save over five

times its purchase price in electricity costs over the lamp's lifetime. Like all fluorescent lamps,

CFLs contain mercury, which complicates their disposal. In many countries, governments have

established recycling schemes for CFLs and glass generally.

CFLs radiate a light spectrum that is different from that of incandescent lamps. Improved

phosphor formulations have improved the perceived color of the light emitted by CFLs, such that

some sources rate the best "soft white" CFLs as subjectively similar in color to standard

incandescent lamps.

1.5.1 History of CFL

The parent to the modern fluorescent lamp was invented in the late 1890s by Peter CooperHewitt. The Cooper Hewitt lamps were used for photographic studios and industries.

Edmund Germer, Friedrich Meyer, and Hans Spanner patented a high-pressure vapor lamp in

1927. George Inman later teamed with General Electric to create a practical fluorescent lamp,

sold in 1938 and patented in 1941. Circular and U-shaped lamps were devised to reduce the

length of fluorescent light fixtures. The first fluorescent bulb and fixture were displayed to the

general public at the 1939 New York World's Fair.

The helical (three-dimensional spiral) CFL was invented in 1976 by Edward Hammer, an

engineer with General Electric, in response to the 1973 oil crisis. Although the design met its

goals, and it would have cost GE about US$25-million to build new factories to produce the

lamps, the invention was shelved. The design eventually was copied by others. In 1995, helical


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lamps, manufactured in China, became commercially available; their sales have steadily

increased.

In 1980, Philips introduced its model lamp, which was a screw-in lamp with integral ballast. The

lamp used a folded T4 tube, stable tri-color phosphors, and a mercury amalgam. This was thefirst successful screw-in replacement for an incandescent lamp. In 1985 Osram started selling its

model EL lamp, which was the first CFL to include electronic ballast.

Development of fluorescent lamps that could fit in the same volume as comparable incandescent

lamps required the development of new, high-efficacy phosphors that could withstand more

power per unit area than the phosphors used in older, larger fluorescent tubes.


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CHAPTER2

COMPANY

PROFILE


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CHAPTER 2

COMPANY PROFILE

2.1 INTRODUCTION & HISTORY OF AJANTA QUARTZ LTD.

2.1.1 Introduction

The Company is engaged in the business of manufacturing vitrified tiles, aluminum composite

panels, CFL bulbs and e-bikes.

Set forth below are certain significant legislations and regulations that generally govern this

industry in India.

We are one of Indias leading manufacturers of compact fluorescent lamps (CFLs) and

vitrified tiles. We also manufacture aluminum composite panels (ACPs) and have recently

commenced the production of battery operated electromotive bikes (E-Bikes). We manufacture

all our products in a single integrated facility located on approximately 181 acres in Samakhayali

village in Bhachau taluka in the district of Kutch in Gujarat. We market our products under the

OREVA brand name. Our company philosophy is to provide quality products at affordable

prices for the mass market.

Our Company was founded in 1994 by Shree Odhavjibhai R Patel, founder of Ajanta Transistor

Clock Manufacturing Company, which was established in 1971 and engaged in the

manufacturing of wall clocks under the Ajanta brand name. Our Promoter Group Companies

are based in Morbi, Gujarat (approximately 50 kilometers from our manufacturing facility). Our

Promoter Group Companies manufacture and sell a broad range of products, including consumer

and electronic products and home appliances.

We have an India-wide distribution network for each of our products. We export our CFLs to the

United Arab Emirates and our vitrified tiles to the United Arab Emirates, Qatar, Iraq and the

West Indies. Similarly, we procure our materials directly from manufacturers and producers,

principally in China, Korea, Taiwan and Thailand. We believe that our distribution expertise will

assist us in creating and growing a nationwide distribution network for E-Bikes. We plan to sell


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our E-Bikes under the OREVA brand name through our dealer network, initially in western

India and gradually all over India.

Our total revenues for the nine months ended December 31, 2007 and the fiscal years ended

March 31, 2007 and March 31, 2006 were 3,654.14 million, 3,306.57 million and 897.50

million, respectively. Export sales for the nine months ended December 31, 2007 and the fiscal

year ended March 31, 2007 were 775.24 million and 448.97 million, respectively. Our profit

after tax for the nine months ended December 31, 2007 and the fiscal years ended March 31,

2007 and March 31, 2006 were 504.56 million, 276.31 million and 13.38 million,

respectively. Our revenues and EBIDTA by operating division are set forth in the table below.

2.1.2 HISTORY & DEVELOPMENT OF COMPANY

Ajanta Quartz was established in 1971 by a person named Mr. O.R.Patel with the support of his

son Mr. Pravinbhai O. Patel which is situated at Morbi, Rajkot district, Gujarat which is known

as Switzerland of India as it is very famous for manufacturing of wall clock.

Shri O.R.Patel has realized the demand for the potential market for wall clocks which provide

him to start Ajanta Transistor Clock mfg. co. Initially they started production of 15 -20

mechanical wall clocks per day by 22 workers with initial investment of Rs.180000. In 1978,with the advent of striking winding clocks, the started making striking winding clock.

In the year 1982, ORPAT started manufacturing one day Alarm time pieces. All these clocks

were manufacturing up to the year 1987. In the year 1988, QUARTZ Revolution came into the

world. In order to remain astride with the latest development, the companys chairman Mr.

O.R.Patel went to Japan, Taiwan and Hong and brought the QUARTZ technology to India. In the

year 1990, ORPAT was the first Indian company to manufacture musical clocks.

Today, ORPAT is no longer manufacturing transistor clocks. Now it uses the latest technology to

manufacturing Quartz clocks. In the year 1994, the company has entered in the manufacturing of

electronic calculators and Quartz Time Pieces. The annual turnover of Ajanta Ltd. exceeds 200

crores. It has earned the unique distinction of becoming the largest manufacturing of Quartz

clocks not only in India but also in the world. The companys shared in Quartz clocks in India is

about 70%.


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In order to cater to the Digital era, AJANTA has forayed into manufacturing Digital clocks and

Digital moving display boards. Moving Display Boards are available in Single dimensions to suit

the ambience, in various sizes designed according to the customer requirements, styles,

languages and effects for displaying Information/ Messages. It offers a wide range of clocks with

features like Temperature, Humidity, Calendar, Time, and Battery Back-up etc. available in

various designs, colors and Sizes. AJANTA already being a worlds leader in wall clock segment

has also become a pioneer in Digital clock segment in India. OREVA also has the largest

Vitrified tiles plant in India having a production capacity of approximately 32,000 Sq. Mt. per

day.

Company have established a nationwide strong sales and distribution network, comprising

around 150 super stockiest (depots), and more than 25000 A grade dealers (retail outlets)

throughout the country.

2.1.3 VISION

1) As rightly said Vision is the art of seeing what is invisible to others.2) Be one of the largest players in the electrical industry with total in house production

processes.

3) Become the highest employment provider in Gujarat by providing equal employmentopportunity for the upliftment of the needy people.

4) Remain pioneers in Quartz technology and manufacturing of calculators.5) Harness the latest technology for simplification of processes and rapid expansion.6) Become Indias largest manufactures of the household electronic product. 7) At OREVA, We cogitate to achieve highest level of customer satisfaction by continuously

developing innovative product range to deliver "Value for money" products to our valued

customers.


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2.1.4 PRODUCT

1) Clock & TimepiecesGrand Father Cuckoo

Pendulum with Super Strike Plain Super Strike

Wooden Pendulum Clock Fancy Pendulum

Fancy Wooden & Glass Classic

Glass Classic Wooden Plastic Sweep Second

Office Clock Big Plain

Simple & Digital Alarm& many more

2) Telephone, Calculator & Others

A. Telephone

Cordless

Caller ID

Basic

Caller ID unit

EPABX

B. CalculatorCheck & Correct

Basic

Scientific

C. Digital Multi MeterD. Digital Clamp MeterE. Educational ToysF. Electronic Digital Health Scale


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3) Home AppliancesHand Blender Hand Mixer Mixer Grinder

Juice Extractor Citrus Juicer Dry Iron

Steam Spray Iron Stem / Spray / Burst Iron Cordless IronPop-up Toaster Electric Oven Microwave oven

Industrial Pedestal Fan Ceiling Fan Table Fan

Roto Grill Fan Ventilation Fan Metal Exhaust Fan

Rechargeable Torch Pen Light LED Emergency Light

Halogen Heater Room Heater Juicer Mixer Grinder

Steam Iron Sandwich Toaster Pedestal Fan

Wall Fan Emergency Light Oil Heater

Electric Kettle Water Dispenser Hair Dryer

Gas Stove Deep Fryer Air Cooler

Chapatti Box Ice Shaver Washing Machine

4) CFL5 Watts 8 Watts

11 Watts 14 Watts

18 Watts 23 Watts

26 Watts 28 Watts

36 Watts 30 6 Watts

5) TilesIt is new established division of Ajanta Ltd. known as OREVA.

6) WafersIt is new established division of Ajanta Ltd. known as OREVA.


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7) MobileIt is latest establishment of Ajanta group. In the year 2007 they are establish 2 model of mobile.

It is known as ORPAT.

8) E-bikeIt is latest establishment of Ajanta group. In the year 2009 they are establish various model of e-

bike. It is known as ORPAT E-bike.

2.2 MANAGEMENT TEAM

Name Position

Mr. Odhavajibhai Ravjibhai Patel Chairman

Mr. Pravinbhai Odhavijibhai Patel Managing Director

Mr. Jaysukhbhai Odhavijibhai Patel Managing Director

Mr. Navil Patel Director

2.3 AWARDS & ACHIEVEMENTS

The year 1992 MAN OF THE YEAR award was felicitated upon Ajantas chairman Mr. O.R.

Patel under whose able guidance Ajanta has become Indias largest time piece manufacturer and

the recipient of export award for outstanding exports performance every year since1991-92.

Electronics and computer software exports promotion council award for excellence in export

performance choose the company for the recognition in the year 1996-97 &1997-98.


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Companys managing director P.O.Patel was the recipient of the TRADEPOST MAN OF THE

YEAR award for acknowledging Ajantas achievement of electronics consumer goods and

Indias leading quartz alarm clock despite free imports and Chinese challenge.

The recently concluded volumetric production analysis gives an indication of the companyscapacities. The company has achieved a world record of manufacturing 1, 36, 92,872 clocks

during 2002-03.

Ajanta Manufacturing Ltd. gets awards for following

Awards Presented By Year Reason

Gujarat state Exp. 1991-92 Best Export

ESC 1991-92 Highest Export Performance

ESC 1992-93 Highest Export in Consumer Elect.

State Bank of Saurashtra 1993-94 Excellent Performance in Export

Department of Elect. 1994-95 Second Price for Export

ESC 1994-95 Outstanding Export

ESC 1995-96 Best Export

ESC 1996-97 Establishing Indian Brand in Foreign

National Export Award 1997-98 Outstanding Export

ESC 1997-98 Best Export Sector Award


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2.4 ORGANIZATION CHART

Chairman

Director

ManagingDirector

ProductionDepartment

ProductionManeger

Supervisor

Foreman

Workman

EngineeringDepartment

R & DManager

AssistantManager

Operator

AdministrativeDepartment

AdministrativeManager

SubordinateManager

Clerk

Peon

MarketingDepartment

MarketingManager

ZonalManager

Area Manager

SalesPersonnel


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2.5 BRAND NAME & SLOGAN OF AJANTA LTD

2.5.1 BRNAD NAME

1) AJANTA QUARTZ2) ORPAT ELECTRONICS3) REWA2.5.2 SLOGAN

IN CLOCK:

Worlds largest clock manufacturer

IN TIMEPIECES:

Indias largest timepieces manufacturer

IN CALCULATOR:

Indias largest calculator manufacturer

OTHER:

World class product

2.5.3 LOGO


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2.6 MARKETING STRATEGIES

ORPAT believes in attractive strategy. Orpat adopted low price strategy and target middle class

households that are large segment. The reason behind those middle class households is price

conscious. They preferred less price and medium quality. Initial purchase price is very important

for them not long lasting features at premium.

ORPAT brand is available at every place. Orpat appointed its sales and service centers in major

towns and cities across the all India. Its product distributed by its scales depot in different

relational areas.

ORPAT also introduced concept of exclusive showroom. It combines all its product range from

small time piece clocks, calculators, telephone and home appliance at one place. Its showroom

presently runs at Morbi, Rajkot, Surat, Baroda and A bad, and Mumbai.

The other important thing is that they do not spread large sum on advertising but give good

margin to retailers/ dealers, so that retailers would try to push ORPAT brand at the POP.

2.7 FUTURE PLANS

Human Wants are Unlimited.

Every wants something more in future with regard & business, all organization has planned for

better future.

Future plans of Ajanta Quartz Ltd.:

Be one of the largest players in the electronic industry with the total in house production process.

To become the highest employment provider in Gujarat by providing equal employment

opportunities for the needy people.

To remain pioneers in Quartz technology and in manufacturing of calculators.

To harness the largest technologies for simplification of processes and for repaid expansion.

To become the Indias largest manufacturer of household electronic product.


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2.8 SWOT ANALYSIS

The meaning of SWOT is as follow.

o S: Strengthso W: Weaknesso O: Opportunitieso T: Threats

1) Strengthso Strengths are resources of skills & other advantages relative to competitors and need of the

market the firm serves and anticipates serving.

o Their pre-planning and their employees are their strengths.2) Weaknesso A weakness is limitation of inefficiency in resources, skills and capabilities.o I cannot found any weakness in Ajanta Quartz Ltd.3) Opportunityo An opportunity is major favorable situation in the firms environment.o They always catch the opportunity which is benefited to them. Every year they are

established new product in the market & in the year 2007 they have introduce Mobiles.

4) Threatso A threat is a major unfavorable situation.o

I feel that they havent any threats. But other firm has threats that ORPAT will snatch theirmarket.


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2.9 WELFARE ACTIVITES

Ajanta Quartz has very good image in the market. They make a trust ORPAT

CHARITABLE TRUST

Address: ORPAT CHARITABLE TRUST,

Trust Regd. No.: E/2985, Date: 30/01/1993

Parmanad Complex,Sanala Road,

MORBI363 641 (India)

Phone: 02822-231077, 231078

Fax: 02822-231075

Activities

1) Save Water Save Nation:Stop wastage of water, divert into the well.

2) Stop liquor for better life:Campaign started by O.R.Patel.

3)Establishes and OR helping:The educational institutions, hospitals, library, auditoriums and cattle farms.

4) Give AID to:Needy students, gives medical help and cloths to needy people, help to effected people

during nature climate tragedy.


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CHAPTER3REVIEW OF

LITERATURE


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CHAPTER 3

REVIEW OF LITERATURE

3.1 RESEARCH ON THE EFFECTS AND IMPLICATIONS OFINCREASED CFL USE (MARCH 2010) By Philip Brickner,

MD, St. Vincents Hospital

(Source -http://www.concerninglight.com/2010-03_Final-Report_comprehensive.pdf)

3.3.1 MAIN CONCERNS OF RESEARCH: CFL USE

Setting

The Energy Independence and Security Act of 2007 (and its counterparts around the World) will

institute efficiency standards for general service incandescent lamps that will effectively fully

faze them out of manufacture and availability by 2012 2014. The compact fluorescent lamp

(CFL) is looked upon as a logical replacement.

Crisis

CFLs are not the superior replacement for incandescent lamps, neither in conservation or

aesthetics. Nor is the CFL an equivalent light source technology. As an indicator of lamp

efficiency, lumens-per-watt has been extensively used as a comparative metric to promote the

energy advantages of light sources. However, this is flawed because no meaningful conclusions

can come from measuring and quantifying an individual type of light source on its own. Lumens-

per-watt does not capture any qualitative characteristics, nor does it express the actualperformance level of any light source used in practical applications. Most importantly, it does not

represent the actual illuminating and spectral properties of a given light source. Lumens-per-watt

is simply an idealized quantifier obtained in laboratory measurement, which is often used

isolated from other light source characteristics and out of context with the lighting applications
http://www.concerninglight.com/2010-03_Final-Report_comprehensive.pdfhttp://www.concerninglight.com/2010-03_Final-Report_comprehensive.pdfhttp://www.concerninglight.com/2010-03_Final-Report_comprehensive.pdfhttp://www.concerninglight.com/2010-03_Final-Report_comprehensive.pdf


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under which people live and work. What is really needed is an incandescent lamp with todays

lumen output but with longer life.

Realities

Generally, there are no bad light sources, only bad applications. There are some very laudable

characteristics of the CFL, yet the selection of any light source remains inseparable from the

luminaire that houses it, along with the space in which both are installed and lighting

requirements that need to be satisfied. In the pursuit of more useful lumens-per-watt metric, one

must match the luminaire to the space being illuminated. The lamp, the fixture and the room: all

three must work in concert and for the true benefits of end-users. If the CFL should be used for

lighting a particular space, or an object within that space, the fixture must be designed to work

with that lamp, and that fixture with the room. It is a symbiotic relationship. A CFL cannot be

simply installed in an incandescent fixture and then expected to produce a visual appearance that

is more than washed out, foggy and dingy. The whole fixture must be replaced -- light source

and luminaire -- and this is never an inexpensive proposition.

3.1.2 CONCLUSION

The title CONCLUSION might not be appropriate for this report. To truly reach a conclusion,

or take definitive action on the consequences of an increased use of CFLs would require more

work. This report, after all, is just an exploratory review of the subject. It does however point out

with considerable certainty, that more work is urgently needed. There is simply too much risk in

issuing an uninformed mandatory decision to ban incandescent lamps; from health repercussions

to changes in electrical characteristics and power supply system operation, as well as through a

significant intrusion on the quality of life of almost every residence in the country. Why take this

risk? Do politics trump science and practice experience? Please revisit the fears expressed in the

last paragraph of the medical section.

As stated previously, a temporary action that should be immediately taken is to lift the ban on

incandescent lamps and reconsider all promotion of the use of Compact Fluorescent Lamps.

Then, as a start, we should have a trial to check the effectiveness and acceptability of The Ban,


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as well as some of the other untested proposals for lighting power density restrictions that are

being considered.

We propose the following simple test that may actually provide an effective method for

determining whether the legislation will actually serve people:

o Initiate a field study aimed at satisfying the proposed power limits in all public buildings,from museums and hospitals to the White House, and the homes of all elected officials.

o As this will include replacing all incandescent lamps with CFLs, it would be easy to directlyascertain the effects of the proposed legislation/ban.

o Assure that all of these measures to comply with specified power limits in residential unitsare done and paid for solely by the occupants, i.e. that occupants may freely decide on the

use of specific equipment and devices

o At the end of sufficiently long period (e.g. 18 months) check whether the incandescentlighting had not been reinstalled, and perform a detailed survey with all users to determine

their overall satisfaction with the initial, intermediate and resulting lighting.

o This will help to identify specific target applications for different light sources, as they willbe selected by end-users, based on their needs and requirements.

o In parallel with this field study, initiate and perform detailed research related to determiningquantitative and qualitative characteristics of CFLs and other alternative light sources (e.g.

LED light sources), as well as the comparative analysis of their relevant aspects and most

important effects of use.

o Based on the data collected from the above field/labs studies, the Energy Independence andSecurity Act of 2007 and current lighting related energy legislation still in Congress may be

amended, if necessary, to conform to the results of the studies. We expect that the current and

proposed legislation would be rewritten in favor of a new act, which will be based on the

result of a thoughtful process that could yield a set of proven recommendations that will

better serve our nations needs by maximizing both human health, environmental satisfactionand energy efficiency. In the end, the most energy effective solution for residences may be

achieved using incandescent lamps with a combination of occupancy sensors and dimmers.


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3.2 RESEARCH ON BENEFITS AND POTENTIAL HEALTHAND ENVIRONMENTAL HAZARDS FROM COMPACT

FLUORESCENT LIGHTS

(References - Aron, J., (2008), Available from: http://justatheory.co.uk/2008/10/03/are-energy-

saving-light-bulbs-actually-bad-for-the-environment (17/02/10).)

3.2.1 DISCUSSION OF SURVEY RESULTS

The fact that only 1 of the 3 manufacturers displayed significant information on the packaging of

their CFLs is surprising as the Environmental Agency has put obligations under the WEEE

Regulations to businesses who manufacture electrical or electronic equipment. The WEEE

directive applies to all types of discharge lamps such as fluorescent tubes and compact

fluorescent energy savers (Environmental Agency, 2009). This is evidence that the WEEE

directive is not complied with by many manufacturers.

It was even more surprising that none of the major retailers are in compliance with the WEEE

directive on CFLs. They all have no facilities for collection or recycling of CFLs and they also

do not provide information to customers on the correct disposal of them. Defra (2009) indicates

that waste CFLs have been subject to the requirements of the Waste Electrical and ElectronicEquipment (WEEE) Regulations since 1st July 2007 obliging those who sell items, such as

energy efficient bulbs, to provide information to the public about where they can take waste

bulbs and other WEEE. But nearly three years later this does not appear to be the case. These

findings are in line with research findings in USA (Engelhaupt, 2008) and Ireland (Scott, 1998)

which indicated that lack of information was the main reason why consumers toss burnt-out

CFLs into their household rubbish bins and why they do not recycle them. The problem is

compounded because many people still do not know that the bulbs contain mercury (Poole,

2008). Arguably, although CFLs only contain a small amount of mercury they still pose a serious

environmental problem if they are not recycled.
http://justatheory.co.uk/2008/10/03/are-energy-saving-light-bulbs-actually-bad-for-the-environmenthttp://justatheory.co.uk/2008/10/03/are-energy-saving-light-bulbs-actually-bad-for-the-environmenthttp://justatheory.co.uk/2008/10/03/are-energy-saving-light-bulbs-actually-bad-for-the-environmenthttp://justatheory.co.uk/2008/10/03/are-energy-saving-light-bulbs-actually-bad-for-the-environmenthttp://justatheory.co.uk/2008/10/03/are-energy-saving-light-bulbs-actually-bad-for-the-environment


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3.2.2 CONCLUSION

It has been highlighted in this study that climate change is the biggest threat facing mankind

today and everyone needs to work together by reducing greenhouse gas emissions. It has been

concluded from many studies that energy-saving bulbs are about 80% more efficient than the

traditional light bulbs and hence use less electricity; they last longer and over their life span

would save users money (HPA, 2008). Researchers on CFLs have all been left without a doubt

that CFLs have the potential to significantly reduce worldwide carbon emissions if they continue

to be put into wide use (Nelson, 2009). Nelson (2008) suggests that in England for example the

atmosphere will be saved an estimated 5 million tons of carbon dioxide per year due to the bulbs

alone.

This study has also revealed that whereas there are economic advantages of using CFLs, thereare also some costs. As they work by using electricity to excite mercury vapour (Havas, 2008),

proper disposal and care of CFLs is essential as mercury is toxic and can pollute the

environment. However, as this study has highlighted, there are many failings in this regard

especially during their manufacture due to poor factory conditions leading to many workers

being exposed to mercury. Perhaps as technology improves research could be carried out on

reducing the amount of mercury or eliminating it from the bulbs altogether.

Concerns about UV and radio frequency radiation produced by CFLs (Havas, 2008; HPA, 2008)have resulted in precautionary measures being recommended by the HPA for the use of certain

types of CFLs. Sufferers of migraines and epilepsy have also stated that their conditions are

worsened when CFLs are used although there is not sufficient research to suggest why this is so.

Whereas manufacturers and retailers of CFLs are obliged under the WEEE directive, this study

has revealed that most are not in compliance as only 1 of the 3 manufacturers and none of the 5

major retailers surveyed had disposal or recycling programs for CFLs neither did they provide

adequate information to customers. It could be suggested that lack of consumer awareness of

potential health and environmental risks posed by CFLs is a limiting factor as information and

education need to be central to any program. Since everyone in the UK will soon be using

energy-saving bulbs, as traditional light bulbs are phased out, this is an area that needs attention.

It could be recommended that the UK Government and other governments could make it

compulsory for manufacturers and retailers of CFLs to provide adequate information on the


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health and environmental risks CFLs pose. This information could be made available on the

packaging of all CFLs as well as in the shops where they are sold. Local Authorities could also

be involved in providing recycling and disposal facilities so that CFLs do not end up in landfills.

There are challenging possibilities for many different researches on public awareness of the

benefits and hazardous impact of CFLs.

3.3 RESEARCH ON OPPORTUNITIES FOR GLOBALHARMONIZATION OF MINIMUM ENERGY

PERFORMANCE STANDARDS AND TEST STANDARDS

FOR LIGHTING PRODUCTS

(Source - http://www.enlighten-

initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdf)

3.3.1 CONCLUSIONS AND RECOMMENDATIONS

CLASP has clustered our recommended actions designed to encourage harmonization ofstandards and labeling of CFLs and LED lamps into the following areas: (1) communication, (2)

test methods, (3) labeling, and (4) MEPS. Each area has several potential recommended actions

which would help achieve the overall objective of harmonization for CFLs and LED lamps.
http://www.enlighten-initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdfhttp://www.enlighten-initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdfhttp://www.enlighten-initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdfhttp://www.enlighten-initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdfhttp://www.enlighten-initiative.org/portal/Portals/26107/documents/Resources/062011_CLAS%20report.pdf


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Summary of Recommendations and Conclusions

Area Objective Actions

I.Communication Encourage, facilitate and

expand thecommunication and

sharing of information

between regulators, test

experts, consumers and

other stakeholders.

I.A Improve transparency of regulatory

processes and communication betweenregulators

I.B Raise awareness among consumers about

high-quality, energy-efficient CFLs and LED

lamps

II.Test Methods Align methods of

measurement and metrics

of performance for CFLs

and LED lamps.

II.A Support the development of international

harmonized test methods, coordinated around

review cycles

II.B Develop a framework to promote the

global recognition of test data around the use

of consistent test methods and certified

laboratories

III.Product Labeling Develop consistent,

uniform labeling schemes

that recognizably

communicate

energyefficiency

III.A Establish a framework for setting labels

or establishing a quality mark III.B Develop a

global voluntary reach efficiency standards

and labeling system

IV.Minimum

Energy

Performance

Standards

Align current energy

performance

requirements and

potentially establish

forward-looking,ambitious regulatory

requirements

IV.A Develop an international framework for

harmonizing MEPS for CFLs and LED lamps


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CHAPTER 4CONCEPTUAL

FRAMEWORK


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CHAPTER 4

CONCEPTUAL FRAMEWORK

4.1 ATTITUDE

Definition-

o An attitude is a hypothetical construct that represents an individual's degree of like ordislike for something.

o According to the Merriam Webster dictionary An Attitude is a mental position withregard to a fact or state; a feeling or emotion toward a fact or state.

For Example Lets contemplate the attitude of optimism. If you decide to have an optimistic and

positive attitude in life, you'll be inclined to practice positive self-talk. Your dominant mental

habits will include always seeing the glass half full, always giving people the benefit of the

doubt, and always feeling a sense of hope and trust that things will turn out okay.

This attitude of optimism and the corresponding mindset of positivity, compassion, hope and

trust would then drive you to take certain actions. You'd be more relaxed giving and sharing with

others, you'd take more risks because you'd feel a healthy level of confidence that things would

work out for the best, and you would give your all because you would see the opportunity in

everything.

Can you imagine what kind of circumstances would occur for someone with an optimistic

attitude? As if by magic, they would attract positive, generous people, work opportunities that

were engaging and relationships that were fulfilling.

Attitudes are generally positive or negative views of a person, place, thing, or event this is

often referred to as the attitude object. People can also be conflicted or ambivalent toward anobject, meaning that they simultaneously possess both positive and negative attitudes toward the

item in question.Attitudes are judgments. They develop on the ABC model (affect, behavior, and cognition). The

affective response is an emotional response that expresses an individual's degree of preference


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for an entity. The behavioral intention is a verbal indication or typical behavioral tendency of an

individual. The cognitive response is a cognitive evaluation of the entity that constitutes an

individual's beliefs about the object. Most attitudes are the result of either direct experience or

observational learning from the environment.

4.1.1 Component of Attitude

1. Cognitive - our thoughts, beliefs, and ideas about something. When a human being is theobject of an attitude, the cognitive component is frequently a stereotype, e.g. "welfare

recipients are lazy"

2. Affective - feelings or emotions that something evokes. E.g. fear, sympathy, hate. Maydislike welfare recipients.

3. Conative, or behavioral - tendency or disposition to act in certain ways towardsomething. Might be wanted to keep welfare recipients out of our neighborhood. Emphasis is

on the tendency to act, not the actual acting; what we intend and what we do may be quite

different.

4.1.2 Theories of attitude formation and change

4.1.2.1 Functionalist Theory

Daniel Katz proposed a functionalist theory of attitudes. He takes the view that attitudes are

determined by the functions they serve for us. People hold given attitudes because these attitudes

help them achieve their basic goals. Katz distinguishes four types of psychological functions that

attitudes meet.

A. Instrumental - we develop favorable attitudes towards things that aid or reward us. Wewant to maximize rewards and minimize penalties. Katz says we develop attitudes that help us

meet this goal. We favor political parties that will advance our economic lot - if we are in

business, we favor the party that will keep our taxes low, and if unemployed we favor one that

will increase social welfare benefits. We are more likely to change our attitudes if doing so

allows us to fulfill our goals or avoid undesirable consequences.


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B. Knowledge - attitudes provide meaningful, structured environment. In life we seek some

degree of order, clarity, and stability in our personal frame of reference. Attitudes help supply us

with standards of evaluation. Via such attitudes as stereotypes, we can bring order and clarity to

the complexities of human life.

C. Value-expressive- Express basic values, reinforce self-image. EX: if you view yourself as

a Catholic, you can reinforce that image by adopting Catholic beliefs and values. EX: We may

have a self-image of ourselves as an enlightened conservative or a militant radical, and we

therefore cultivate attitudes that we believe indicate such a core value.

D. Ego-defensive- Some attitudes serve to protect us from acknowledging basic truths about

ourselves or the harsh realities of life. They serve as defense mechanisms. EX: Those with

feelings of inferiority may develop attitude of superiority.

Katz's functionalist theory also offers an explanation as to why attitudes change. According to

Katz, an attitude changes when it no longer serves its function and the individual feels blocked or

frustrated. That is, according to Katz, attitude change is achieved not so much by changing a

person's information or perception about an object, but rather by changing the person's

underlying motivational and personality needs.

E.g.: As your social status increases, your attitudes toward your old car may change - you need

something that better reflects your new status. (For that matter, your attitudes toward your oldfriends may change as well).

4.1.2.2 Learning Theory

There are several means by which we learn attitudes.

A. Classical conditioning - E.g. A father angrily denounces the latest increase in income

taxes. A mother happily announces the election of a candidate she worked for. These parents areexpressing opinions, but they are also displaying nonverbal behavior that expresses their

emotions. For a child watching the parents, the association between the topic and the nonverbal

behavior will become obvious if repeated often enough. And the nonverbal behavior will trigger

emotional responses in the child: the child feels upset and disturbed when listening to the father

and happy when listening to the mother.


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This is an example of classical conditioning: when two stimuli are repeatedly associated, the

child learns to respond to them with a similar emotional reaction. In this case, the stimuli are the

attitude topic and the parental emotion. Through repeated association, a formerly neutral

stimulus (the attitude topic - taxes or politicians) begins to elicit an emotional reaction (the

response) that was previously solicited only by another stimulus (the parental emotion).

Whenever tax increases are mentioned, the child feels an unpleasant emotion; when the elected

official is mentioned, the child feels a pleasant emotion.

E.g. Pavlov's dogs, Bell were rung when dogs received food. Food made dogs salivate. Then

whenever a bell was rung, dogs salivated even when food was not present.

E.g. when you were a child, parents may have cheered for N.D. football. You may not have even

known what N.D. football was, but you liked your parents happy attitude. Now N.D. football

evokes that same response in you.

E.g. Men with bow ties, Meet a bad man who wears bow ties, and you may come to hate all bow

ties.

COMMENT: This explains why behaviors can persist even after reinforcement is withdrawn.

Also helps explain self-reinforcement.

B. Instrumental, or operant, conditioning - Behaviors or attitudes that are followed

by positive conseq

retailer''s attitude toward's cfl

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