Shriram Transport Finance Company Limited to Improve the Quality of Service

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People’s Education Society and Trust’s

Belgaum Institute of Management Studies,

MBA, Belgaum.

(Approved by AICTE & Affiliated to Karnatak University, Dharwad)

“A STUDY ON PERCEPTION OF CUSTOMERS TOWARDS

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED TO IMPROVE THE QUALITY OF SERVICE”

AT

Shriram Transport Finance Company Limited

A Report Submitted in Partial Fulfillment of

the Requirement for the Award of

MASTER’S DEGREE IN BUSINESS ADMINISTRATION

2005-2006

Submitted by

RIYAZ AHMED .M. HOSPET

Exam seat No: - MBA05006042

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Institute Guide: Company Guide:

Prof. M.M.Manik Mr. Zulfi

Balegar

Faculty (Marketing) Sales Manager PEST’s BIMS, MBA, Shriram Transport Co Ltd

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People’s Education Society and Trust’s

Belgaum Institute of Management

Studies, MBA

Adjacent to KUD PG Center, Bhutramanhatti, Belgaum.

(Recognized by AICTE, New Delhi & Affiliated to Karnatak University Dharwad.)

This is to certify that

Mr. Riyaz Ahmed .M.

Hospet,

Examination No.

MBA05006042

of MBA II

Semester has successfully completed his In-plant

Training Project 2006-2007 from May 15 to July 15,

2006.

Project Guide

Director

Date: ____________

CERTIFICAT

E

CERTIFICAT

E

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CO NT E NT S

C h a p t e r - I

 I n t r o d u c t i o n  L i t e r a t u r e r e v i e w  S t a t e m e n t o f t h e p r o b l e m  P u r p o s e o f t h e s t u d y  S c o p e o f t h e s t u d y  O b j e c a t i v e s o f t h e s t u d y 1 - 1 1

C h a p t e r – I I

 O r g a n i s a t i o n p r o f i l e  O r g a n i s a t i o n c h a r t  S a m p l i n g  R e s e a r c h d e s i g n  D a t a c o l l e c t i o n m e t h o d s  M e a s u r i n g t o o l s 1 2 - 3 5

C h a p t e r – I I I

 R e s u l t s a n d d i s c u s s i o n w i t h g r a p h s a n d c h a r t .  S u m m a r y , c o n c l u s i o n a n d a p r o p o s e d a c t i o n p l a n w i t h r e s o u r c e r e q u i r e m e n t a n d p r o j e c t e d b e n e f i t s t o t h e o r g a n i s a t i o n . 3 6 - 6 2

C h a p t e r – I V

 A p p e n d i x  Q u e s t i o n n a i r e s  B i b l i o g r a p h y 6 3 - 7 7

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ACKNOWLEDGEMENT

The report what I have presented is not the mere outcome of my labour alone. There are dozens of hands buttressed me all through the programme it doesn’t go without thanking all of those who constantly keep me on the move.

I express my deep gratitude to Karnataka University; Dharwd who have given us an opportunity to learn something practical apart from books by including the in-plant training in our MBA Programme.

I express my gratutude to our beloved Director S.R. Bhramanaikar who have supported me to complete this project.

My sincere thanks to Prof. Mr. M.N. Manik Internal Guide for encouraging me to work on this project.

I would like to express my most sincere thanks and gratitude to Mr.Ashok Singh Hajeri calm and utterly professional person to whom the relevance and authenticity of this report should attribute to the extend every support me helping the gain, external guide of this project for having faith in this project idea.

I give my sincere token of thanks to all my faculties, relatives and friends who have gathered me the wisdom of knowledge. This work is dedicated to my parents who have supported me throughout my study.

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CHAPTER-I

EXECUTIVE SUMMARY

OBJECTIVES OF THE STUDY

:

- To know the perception of customers towards SHRIRAM TRANSPORT FINANCE COMPANY to improve the quality of services.

 To know whether the customers are satisfied with the present services of the company.

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 Factors considered in selecting SHRIRAM TRANSPORT FINANCE COMPANY to take finance for HCV (Truck).

 To study the behaviour of executives of SHRIRAM TRANSPORT FINANCE COMPANY towards customers.

 To seek suggestions and opinions from customers regarding the improvement of services.

SCOPE OF THE STUDY

:- The study will help the company to know their awareness among the consumers, the perception, brand position of the company.

 The company can find out where their competitors stands in the minds of the customers.

 The study will help the company to make proper marketing strategy for their weaker areas.

 The study covers the customers owning HCV in Hubli city.

LIMITATIONS OF THE STUDY

:-Not single work is exception to the limitations every work has got its own limitations, so due to time constraint, my study confines only to Hubli city and it is not possible to make extensive study. It is assumed that the sample selected represents entire population.

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:-Data source : _{Secondary data (internet)}Primary (Field Survey) Area of Research : Hubli city

Research instrument : Questionnaire Sample plan : Personal interview Sample unit : Truck owners, Transporters

etc.

Sampling method :

Stratified Random sampling Sample size : 100 customers

INTRODUCTION

PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT COMPANY LIMITED.

Like any other Financial products, sales of giving finance is largely dependent on how well company plans out their marketing strategies which helps to increase visibility and build a distinct brand image. Looking at the intense competition it is become very necessary for company to make a name for themselves in consumers mind. So the opinion of customers play an important role in making marketing strategies. Hence this study will provide the

company to what customers perceive about STFC. It will also help to find out the brand image of STFC in the minds of customers.

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India is emerging as a global automobile giant. In recent years this industry has made pioneering efforts in adopting modern technology and allowing the entry of foreign players. This is well supported by the economic conditions particularly in the financial sector and in foreign direct investment. During the last decade, conscious efforts have been made to fine-tune state policy to enable the Indian automobile industry realizes its potential to the fullest. The freeing of the industry from this restrictive environment has helped it to itself to global development.

Increasing competition as result of liberalization has led to continuous modernization as well as international standards. Moreover, auto finance with aggressive marketing strategies has played a bid role in boosting the automobile demand. Commercial vehicles, widely considered being the economy’s barometer, have had a good start for the year.

The auto finance industry is expected to grow at 18.6% till ’09. Of that used vehicle finance is expected to grow at 27% p.a, while new car and UV would grow at 18.9% and 13.8%.

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LITERATURE REVIEW

The world is full of stimuli. A stimulus is any unit of input affecting one or more of the five senses sight, smell, taste, touch, hearing.The process by which we select , organiseand interpret these stimuli into a meaningful and coherent picture is called perception.

In essence, perception is how we see the world around us and how we recognize that we need some help in making a purchase decision. People cannot perceive every stimulus in their environment. Therefore, they use selective exposure to notice and which to ignore.

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Marketers must recognize the importance of cues or signals, in customers perception of products. Marketing managers first identify the important attributes, such as price or quality, that the targeted customers want in a product and then design signals to communicate these attributes.

Customers also associate quality and reliability with certain brand names. Companies watch their brand identity closely, in large part because a strong link has been established between perceived brand value and customers loyalty.

Customer Perception Audits:

Every time you lose a customer, there’s a reason why. Do you really know what your customers think about your business, your offerings, or your service? Are they having good or bad experiences? Are you equipped with the insight you need to improve customer satisfaction and loyalty, and make the changes that matter? Entrepreneurs are often too busy to really take the time to tap into what customers are really thinking. But customers hold the key. They know what you need to do to dramatically increase the value you deliver to them. Why keep this data a secret? Uncovering and understanding it will give you what you need to be the best, generate higher sales and referrals and earn repeat business.

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Customer Perception Audits by Coach Kevin captures information on the experiences your customers are having, analyzes the data, and provides meaningful, actionable recommendations on short-term and long-term improvements, with the goal of closing the gap between the service that is delivered and the service that customers expect.

Opening of economy and liberalization in trade in the country brought a sea of change in customer’s perception of buyer and seller relationship. The customer today is not only very demanding but also likes to know the

relationship between the supplier of goods and services and its relationship with the manufacturer or principal and its antecedents. It is on this relationship depends the guarantee and warranty terms to which the customer is entitled. A customer expects trouble free service during the guarantee period. Thereafter it is expected that a product will last to its full productive life with minimum down time and the vendor will provide the required support service to ensure the customer is not put to trouble.

For adopting Japanese management or for customer oriented

management we should first have the willingness and a determination much above the petty personal gains. It needs an attitudinal change. Looking towards present socioeconomic and political conditions such change is not foreseen in immediate future. Market forces will have to play the game with

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only customer in mind if India has to make global presence. There is little time in hand as we are having challenges from all sides. Small nations like Korea, Taiwan, Singapore etc. have already surpassed us. These nations are working on a vision and resultant plans. It is the right time for market players to pamper the customer. As the saying goes, the four deadly sins of corporate management-complacency, blindness, megalomania, and greed. fit everything else is overhead!.

Remember that a customer always buys a product or service with a lot of expectations which he has derived from the promotional inputs of the company or other sources including word-of- mouth . So a customer would be satisfied when Performance is equal to Expectation while would not be

satisfied when Performance does not match with Expectations. Now this expectation is what has been derived from perception. Perception is not good or bad, right or wrong, it is just the way someone judges an experience based on their value system of what they believe should happen. Since people are unique, each of their perceptions are unique .On the other hand each situation is a "point of contact" with an employee that will tell the customer a "truth" about the company's idea of customer service. Each situation will create expections of what the next experience will probably be like.

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STATEMENT OF THE PROBLEM

:-The present day market is flooded with a variety of Non- banking and as well as banking financial institutions as many as if not more than companies like SHRIRAM TRANSPORT FINANCE COMPANY, Tata Finance, Sundaram finance etc. are marketing their products.

Time has become talk of the town therefore the customers give utmost priority to those financial institutions which gives loans at lower rate of interest, quick loans, documentation, percentage of finance etc. which have been exerting influence on the playing decision of the consumer.

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engaged in financing for heavy commercial vehicles (HCV) perhaps it is the only company rendering better performance from a long period of time with the presence of all these factors. The SHRIRAM TRANSPORT FINANCE COMPANY is making sales as hotcake.

The study on hand is directed to understand “the perception of customers towards SHRIRAM TRANSPORT FINANCE COMPANY to improve the quality of service”

PURPOSE OF THE STUDY

:-The main purpose of the study is to understand the perception of customers towards SHRIRAM TRANSPORT FINANCE COMPANY which will help the company to make proper marketing strategy to render good services and satisfy the needs of the customers. The study will help the company to make proper strategies and emphasize on their weaker areas.

SCOPE OF THE STUDY

:-The scope of the study covers the customers of SHRIRAM TRANSPORT FINANCE COMPANY and other competitive companies in Hubli city Truck owners, Transport companies etc.

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OBJECTIVES OF THE STUDY

:-1. To know the perception of customers towards Shriram Transport Finance Company Limited to improve the quality of service. 2. To know whether the customers are satisfied with the present

services of the company.

3. Factors considered in selecting SHRIRAM TRANSPORT FINANCE COMPANY to take finance for HVC.

4. To study the behaviour of executives of SHRIRAM TRANSPORT FINANCE COMPANY towards customers.

5. To know the awareness level of the customers towards SHRIRAM TRANSPORT FINANCE COMPANY.

6. To seek suggestions and opinions from customers regarding the improvement of services.

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LIMITATIONS OF THE STUDY

:

-.

a. Because of time constraint, my study confines only to Hubli city and it is not possible to make extensive study.

b. By busy schedule of the executives it is difficult to extract more information from them.

c. Unwillingness of transporters, truck owners has left us to make random conclusions.

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CHAPTER – II

COMPANY OVERVIEW

Established in the year 1974, the Shriram Group, comprising 750 Branches and Service Centres, in India's premier financial services chain. This company is the largest player in Truck Financing and Chit funds in the Indian subcontinent.

The group, having an annual turnover of Rs. 6,000 crore (USD 1.3 billion), has a significant presence in the Insurance Consultancy, Consumer Durable Finance and Stock Broking businesses. It also have diversified investments in areas such as Information Technology, Pharmaceuticals, Property Development, Project Engineering, Packaging and Auto Components.

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agents nationwide who reach out to its customers in even the most remote areas.

The Shriram Group's business ventures are built on providing the most efficient and customer-focused services based on the simple principle of putting people first. This 'People First' business philosophy has earned them unstinted customer loyalty through many generations.

HISTORY AND MILESTONE

:

APRIL 2005:

Shriram Group attracts largest Venture Capital Investment in the Indian non-banking financial sector, from Overseas

JULY 2004:

UTI Bank picks up equity stake in two Shriram Group companies

17MARCH 2003:

Shriram Investment Limited received the Mother Teresa Award for Corporate Citizenship.

DECEMBER2002

Shriram Group enters into strategic alliance with Citicorp Finance and Cummins Auto Services

31AUGUST2002

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Scheme to offer low cost loans for purchase of new or used trucks to transport operators.

7MAY2002

Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional" for the year 2002

4FEBRUARY2000

Shriram Recon Trucks incorporated as India's first corporate network for selling reconditioned used trucks.

15DECEMBER1999

Medicorp, the flagship company of Shriram group’s pharmacy division became the first Indian company to win the Indian Drug Manufacturers Association

27 MARCH1986

Shriram City Union Finance Ltd. Incorporated for cars and two-wheelers.

12MARCH198

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Shriram Transport Finance Company Ltd. Incorporated

VISION, MISSION AND VALUES:

Helping create wealth, Empowering people through prosperity, Putting people first.

The Shriram Group set out with the objective of reaching out to the common man with a host of products and services that would be helpful to him in his path to prosperity. Over the decades, the Group has achieved significant success in executing this objective and has created a tremendous sense of loyalty amongst its customers.

Efficiency in operations, integrity and a strong focus on catering to the needs of the common man, by offering him high quality and cost-effective products & services, are the values driving the organization. These core values are deep-rooted within the organization and have been strongly adhered to over the decades.

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The group prides itself on its perfect understanding of the customer. Each product or service is tailor-made to perfectly suit the needs of the customer. It is this guiding philosophy of putting people first that has brought the Group closer to the grassroots and has made it the preferred choice for all financing requirements amongst the customers.

NON-BANKING FINANCIAL COMPANY (NBFC) – A GENERAL SCENARIO

Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).

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NBFCs are doing functions akin to that of banks, however there are a few differences:

i. A NBFC cannot accept demand deposits;

ii. It is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and

iii. Deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks.

COMMERCIAL VEHICLE

It is the funding of products include, trucks, buses, tippers, light commercial vehicles, pick ups, 3 wheelers, etc.

Range of services: funding of new vehicles, refinance on used vehicles, balance transfer on high cost loans, top up on existing loans, Extend product, working capital loans & other banking products.

Who are eligible?

Any individual / Partnership firm / company with more than 2 years business experience. Ownership of a vehicle is not mandatory. Funding extended to First Time User, Transporters and Captive Consumers.

How much?

Loan amount can vary from a few thousands to crore depending upon the specific requirement.

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Funding can be up to the extent of 100 % of the chassis, body funding can be extended on special requirement & on the past experience.

Generally undertaken is Hypothecation funding. They are also taking over an old high-interest loan and converting it into low interest loan.

Repayment:

In general repayment period is of 3 -4 years, however depending on the nature of the deal the tenure can vary from 6 - 60 months.

The repayment schedule & the amortization schedule is sent on disbursement of the loan.

Interest:

Interest is charged on a flat rate based on the scheme applicable for the particular product.

FARM EQUIPMENT LOANS

Farm equipment loan has also a big chunk in the vehicle finance.

Eligibility

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Any individual aged above 21 years at the beginning of the tenure and below 65 years by the end of the tenure; involved in agriculture for the last 5 years.

Having minimum 2 acres of land with its value at least twice the loan amount.

Staying in the same place for at least 3 years.

Having an annual income equal to the yearly installment Mortgage of land of 2 to 3 times of the loan amount

Commercial Users

Any individual aged above 21 years at the beginning of the tenure and below 65 years by the end of the tenure; involved in business for the last 3 years.

Owns at least one tractor or commercial vehicle.

Owns either a house or an office or at least 2 acres of land. Has a permanent phone connection either at office or at home.

Loan Amount:

The loan amount varies from customer to customer depending on the valuation of the land being mortgaged, income of the customer and tenure desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the trailer and 50% of the cost of the implements is funded.

Documentation: Agricultural use

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Application form with photograph of the customer and all co applicants and/or guarantor.

Performa Invoice of the asset to be funded from an authorized dealer. Land records of the borrower/s.

Land valuation and title search report of the land. Residence proof of the borrower/s.

Identity proof of the borrower/s.

Signature verification of the borrower/s.

Loan agreement, duly signed by the applicants and guarantor. 2 SPDCs(Security Post Dated Cheques) for entire tenure.

Commercial Use

Application form with photograph of the customer and all co applicants and/or guarantor.

Proforma Invoice of the asset to be funded from an authorized dealer. Proof of Income (any of the following) :

- Billing statement for the past one year - Latest Income tax Return

- Last 6 months bank statement Residence proof of the borrower/s. Identity proof of the borrower/s.

Signature verification of the borrower/s.

Loan agreement, duly signed by the applicants and guarantor. 2 SPDCs(Security Post Dated Cheques) for entire tenure.

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Rates & Fees:

The rate of interest varies from customer to customer and depends on various factors like land holding, loan amount, viability of the proposition and the underlying collaterals provided.

Interest:

Interest is charged on a monthly/quarterly/half-yearly reducing balance basis as the case may be. Every installment that is paid has a component of principal as well as interest. Interest is charged on the principal outstanding after every installment payment.

TWO WHEELERS:

Two wheeler finance is comparably Simple, Friendly and Quick.

Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy installments over a period of 6 to 36 months.

Eligibility Criteria: 1. Salaried Individuals 2. Self Employed Individuals

3. Pensioners, Housewives & Students 4. Partnership Entities

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5. Private Limited Companies 6. Public Limited Companies

Interest rates:Interest rate is charged on a monthly reducing balance . Documents:

Identity Proofs Residence Proof Income Proof Post Dated Cheques Copy of Credit Card CC billing statement Bank passbook/Statement No objection Certificate

AWARDS AND RECOGNITION

Recipient of the social responsiveness awards instituted by Business world – compaq at national level under the auspices of FICCI, Delhi.

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Adjudged as the third prize winner for having rended commendable service in the areas of social welfare and rural development.

Ms. Akhila Srinivasan receiving the social responsiveness Award instituted by Business World – Company from the Hon’ble Vice – President of India Krishna Kant in the year 1999.

Recipient of outstanding woman professional for 2000 – 01 by FICCI – FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixit Chief minister Delhi.

Mother Teresa award for corporate citizenship instituted by Loyola institute of Business Administration (LIBA) Chennai, 2002.

SOCIAL WELFARE INITATIVES

They have always belived in delivering financial value with a human face. As a company firmly grounded up a middle class ethos, we take our social responsibilities very seriously.

Their corporate Social Responsibility (CSR) initiative started with the Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT is today active in the following areas.

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 Orphan and destitute care

 Primary education for the rural poor

 Micro – credit financing through self- help groups for the marginalized

 Empowerment and upliftment of women in villages.

OPRHAN AND DESTITUTE CHILDREN:

To swiftly help the poor and the needy to be self reliant and live with dignity, not charity. The primary focus and beneficiaries of the Trust’s activities are.

a. Abandond neglected and destitute children.

b. Juvenile delinquents in need of care and protection. c. Children of poor and illiterate parents.

d. Disadvantaged and marginalized section of women, particularly rural women

MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS FOR THE MARGINALIZED WOMEN IN VILLAGES.

a. Launch of Shriram Rural Development Project (SRDP) to create and develop

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c. Micro credit financing through self help groups in 156 villages in Tamil Nadu, Andhra Pradesh and Karnataka.

PRIMARY EDUCATION FOR THE RURAL POOR:

The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai, Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra Pradesh. Over 2000 children receive free education. Schools offer education up to class VII and student will progressively move up to higher secondary level.

FUTURE PLANS :

a. To start six primary schools for the rural poor in the villages of Andhra Pradesh.

b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in six districts.

c. Immediate Plans: to start two schools in Cudapah and Guntur districts in June 2005.

LONG TERM BENEFITS OF THE PROGRAM:

a. Reduction in rural indebtedness

b. Bank/institutional credit for investment in income – generation activities. c. Improved household food security round the year, better nutrition.

d. Improved household income. e. Empowerment of Women.

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f. Greater leverage and status of SHG members in local communities and with the state.

THE FUTURE ACCORDING TO SHRIRAM

1. To enlarge the scope of micro credit financing activity through NBFC Shriram Investment Limited.

2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh. 3. To lend credit at low interest rates to 3 lakh women below poverty line

in the next 3 years.

NATIONAL AWARDS WON

 Business World Compaq award fota Social Responsiveness instituted by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant on 1999.

 Mother Teresa award for Corporate Citizenship instituted by Loyola Institute of Business Administration (LIBA), Chennai in 2002.

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PRODUCT PROFILE 1.TRUCK FINANCE

1. Shriram Truck Financing Companies. The wheels of progress. 2. Largest NBFC in the country exclusively engaged in financing of

heavy commercial vehicles.

3. Monopoly position in financing of used vehicles.

4. All India presence with a branch network of 260 offices and employing over 4000 people.

5. Growing at the rate of 30% per annum. 6. Funds managed – Rs 6000 crores.

7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO Netherlands have added tremendous value and strength.

8. Venture capital firm Chris capital joins as a strategic partner by acquiring 21% equity.

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We entered the Consumer Durable Finance business in early 2002 through 'Shriram City Union Finance Ltd., the consumer finance arm of the group. Within a short span of 2 years, we have managed a portfolio of over Rs.584 crore.

Our monthly business amounts to over Rs.25 crore in individual loans, ranging from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12

months to 36 months.

Since its inception, we have financed over 2,15,000 white goods and two-wheelers, with over 90% of the business arising out of the non-metro markets. This financing is backed by lines of credit extended by ICICI Bank, UTI Bank and Development Credit

THE GROUP COMPANIES ATHAT CATER TO TRUCK FINANCING NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE

Shriram Investments Limited in the South Shriram Transport Finance Company Limited in the West Shriram Overseas Finance Limited in Northern/Eastern regions in India.

OUR EQUITY PARTNERS

Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake in Shriram investments Limited and Shriram Transport Financial Company Limited in 2002.

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FMO the Dutch Government owned financial services company has recently picked up equity stake in SIL and STFC. The company has extended a long term debt of 6 million Euros each to the two companies.

Reliance Capital has also taken an equity stake in the two companies at a premium.

.

AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING BUSINESS IN INDIA

AREA OF OPERATION ALL INDIA

Branch offices 260

Employees 4000

Depositors 12.20 lakhs

Agency Force 15,000 plus resident representatives 1300.

Funds managed Rs. 6000 crores

Net worth Rs. 349 crores

Stock Listing Major exchanges including the BSE and the NSE.

2.CONSUMER

We entered the consumer Durable Finance Business business in early 2002. through Shriram City Union Finance Ltd. The consumer arm of the

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group. Within a short span o 2 years, we have managed a profile of over rest 684 crores in this business.

Our monthly business amounts to over Rs. 25 crores in individual loans, ranging from as little as Rs.8000 to Rs. 100000 and with tenures ranging from 12 months to 36 months.

Since its inception we have financed over 215000 white goods and two wheelers with over 90% of the business arising out of the non metro markets.

This financing is backed by lines of credit extended by ICICI Band, UTI Bank and Development Credit.

3.CHIT FUNDS:-

Shriram chits – prosperity

Shriram chits is the largest chits fund in the country. We have grown to become a trusted household investment option. The growth registered by Shriram Chits recent years not only indicated the usefulness of this savings instrument, but is also a reflection our customers trust in.

Chits one of the earliest investment instrument known to man, were founded by the enlightened communities of India. These have, ever since, worked to the advantages of communities that are batting scarce capital resource.

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Shriram chits started its operations in the year 1974 with a single branch that has quickly grown into trusted household name for making chits a viable form of saving and borrowing to all sections of the social.

Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka and Maharastra, where has a reputation for timely disbursement of funds and excellent customer services which differen tiates it from other companies. Using state of the art computer systems/networks and a transparent

accounting system, Shriram Chits have transformed this contemporary mehod of savings into an attractive personalised to banking system.

4.GENERAL

INSURANCE:-Shriram group has adopted a two strategy in this segment.

1. Broking arm – Armour Consultants – floated in year 2002 2. Retail Marketing Arm: Ski Marketing flotred in year 2001.

ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE EXPERTS AT YOUR SERVICE

Amour consultant is engaged in insurance broking in corporate insurance markets and has already aggregated business volumes in excess of Rs. 200 crores ($ 44 million) in premiums.

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Amour consultant comprises a team of distinguished professionals from insurance, finance, law and other management discipline, who have vast business and managerial experience. The company has handled major claims for renowned clients. There have been several claim cases that were won even in the arbitration stage.

The tern at Armun Consultants begins with an in depth evaluation of the client company’s business environment. The company’ risk profile is then studied. Based on the results of these evaluations. The team then suggests the most cist effective, integrated insurance package that is perfectly suited to the company’s risk profile.

The company plans to extend its customer base of the existing 500000 policy holders to cross the 1 million mark by the end of financial year 2005-06.

5.LIFE INSURANCE:-

The shriram group plans to enter the life insurance segment 05. Am application has already been filed with the IRDA for the same. We are also exploring the possibilities of collaborating with a foreign partner in this venture. We expect to be a major player in this very fast growing sector, as a natural corollary of business philosophy and expertise.

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BROKING:-Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a member of the National Stock Exchange , India and the Multi Commodity Exchange. This unit has expended the network by 150% over the last year and today it has more than 230 terminals spread across the length and breadth of the country.

It has a retail customer base of around 50000. The company launched its new products like Derivatives and commodity Trading in early 2004.

A QUICK LOOK AT SOME OF THE SALIENT FEATURES

 Limits of all clients are fixed at a pre-calculated level.

 This is benefical to them in the long run as it prevents overtrading.

 Atimely payments and direct share transfer facility from NSE.

 Adequate risk control research support.

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ORGANISATION CHART

BOARD OF DIRECORS

SHIRAM TRANSPORT FINANCE COMPANY LIMITED

R Sridhar Managing Director

S. Venkatakrishnan Executive Director

Umesh G Revankar Executive Director

K.R.C Sekhar Director

S. Ranganathan Nominee of Citicorp Finance (India) Ltd.

Dr. T S Sethurathnam Nominee of IREDA ltd.

K. Prakash

Company Secretary & Compliance Officer

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SAMPLING:

Sample plan to know the perception of customers in this project is through personal interview.

SAMPLE UNIT:

I have taken the customers who are owning a truck or (HCV).

SAMPLING METHOD;

I have used Non- probability sampling i.e. Stratified Random Sampling. Sample size for this project is 100 customers who are truck owners.

RESEARCH DESIGN:

In this research design of this project the study was conducted by the survey method.

Taking sample of 100 customers owning trucks by commencing sampling using the research instrument as the questionnaire.

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Personal interview is considered as the sample plan. For this project area of research is Hubli City.

DATA COLLECTION METHOD:

I have collected the data from the following sources:

A. PRIMARY DATA:

 The data collected from the company persons.  Questionnaires

B. SECONDRY DATA:

 Interviewing with the owners of trucks  Internet

 Magazines, Catloges, etc.

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For preparing this project I have considered questionnaire as measuring tool for collecting the data.

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CHAPTER III

RESULTS AND DISCUSSION WITH GRAPHS AND

CHARTS:-1) Do you own a HCV?

Table: 3.1

Number of customers Percentage

Yes 100 100%

No Nil Nil

Total 100 100%

The information presented in table3.1 reveals

that:- Almost all respondents are owning Heavy Commercial Vehicle. The same information is presented in the form of diagrammatically as

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2.

Source of finance for your HCV?

Table: 3.2

Sources Number of customers Percentage

Co-op banks 4 4%

STFC 61 61%

Tata finance 19 19%

Others 16 16%

Total 100% 100%

The information presented in table3.2 reveals

that:- 61% respondents have taken loan from STFC .

 19% respondents have taken loan from tata finance and 4% from co-op banks.

 While remaining 16% have taken from other finance companys.

The same information is presented in the form of diagrammatically as

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follows:-3.

Are you aware of STFC?

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Yes 100 100%

No Nil Nil

Total 100 100%

The information presented in table- 3.3 reveals that:-

 Almost all respondents are aware of STFC .

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4)

How did you come to know about this company?

Table:3.4

Sources Number of customers Percentage

Friends 38 38%

Agents 24 24%

Advertisements 32 32%

Others 6 6%

Total 100 100%

The information presented in table3.4 reveals that:-

 38% respondents have bought finance from STFC on the advice of their friends.

 24% will seek the advice of agents.

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The same information is presented in the form of diagrammatically as follows:-

5.

Do you get the finance quickly from STFC?

Table:3.5

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Yes 84 84%

No 16 16%

Total 100 100%

 84% respondents are in favour of quick finance availability from STFC .

 While remaining 16% of them are not in favour of quick finance.

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6)

Are you satisfied with the documentation process at STFC?

Table:3.6

Highly Satisfied 28 28% Satisfied 42 42% Neither satisfied/dis-satisfied 14 14% Dis-Satisfied 14 14% Highly dis-Satisfied 2 2% Total 100 100%

The information presented in table3.6 reveals

that:- 28% of the respondents are Highly Satisfied with the

documentation process at STFC , 42% of the respondents are Satisfied and from the analysis 14% of them are Neither satisfied/dis-satisfied .

 Nearly 14% of the respondents are dis-Satisfied and 2% of them are Highly dis-Satisfied .

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7)

Do you require any changes in the documentation process?

Table:3.7

Number of customers Percentage

Yes 28 28%

No 72 72%

Total 100 100%

The information presented in table3.7 reveals that:-

 28% of the respondents require changes in documentation process at STFC .

 While 72% of the respondents are Satisfied with the documentation process at STFC .

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8.

What do you feel about the interest rates at STFC?

Table:3. 8

Very High 16 16%

High 44 44%

Moderate 34 34%

Low 6 6%

Total 100 100%

 16% of the respondents are in favour that interest rate at STFC is very high and 44% of them are in favour of High rates.

 While 34% of them are in favour of moderate interest rates and 6% for low interest rates.

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The same information is presented in the form of diagrammatically as

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follows:-9)

Are you satisfied by the percentage of finance provided by

STFC?

Table:3. 9

Yes 88 88%

No 12 12%

Total 100 100%

 88% of the respondents are Satisfied with Percentage of finance given by STFC .

 While 12% of them are not Satisfied .

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10). Are you satisfied with the services offered by STFC?

Table:3. 10

Completely Satisfied 10 10% Satisfied 32 32% Neither satisfied/dis-satisfied 20 20% Dis-Satisfied 29 29% Completely dis-Satisfied 9 9% Total 100 100%

 10% of the respondents are completely Satisfied with the service offered y STFC, 32% of the respondents are satisfied and from the analysis 20% o the respondents are Neither satisfied/dis-satisfied .

 Nearly 29% of them are dis-Satisfied and remaining 9% of them are completely dis-Satisfied .

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follows:-11)

What are the features that attracted you to borrow loan

from STFC?

Table:3. 11

Low interest rates 6 6%

Easy documentation 10 10%

Quick finance 84 84%

Low EMI Nil Nil

Total 100 100%

 84% of the respondents are attracted by quick finance.

 10% of the respondents for easy documentation.

 While remaining 6% for low interest rates.

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follows:-12.

How do you rate STFC with respect to other finance

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Table:3. 12

Tate 12 12% Ashok Leyland 18 18% STFC 26 26% HDFC 18 18% ICICI 14 14% SBI 12 12% Total 100 100%

 12% of the respondents rated Tata in the 1st_{place with other}

company’s and 18% of them for Ashok Leyland and HDFC in 2nd_place.

 26% of them rated STFC in 3rd_place.

 Nearly 14% of them for ICICI in 4th_place.

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follows:-13.

What is your experience when you approached the executives

of STFC for finance of HCV?

Table:3. 13

Very good 22 22% Good 48 48% Neither good/bad 24 24% Bad 4 4% Very bad 2 2% Total 100 100%

 22% of the respondents are in favour of very good behaviour from the executives of STFC , 48% of them are in favour of good behaviour.

 24% of them are in favour of Neither good/bad.

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14.

Are your queries cleared quickly?

Table:3. 14

Yes 82 82%

No 18 18%

Total 100 100%

 82% of the respondents are in favour that their enquiries are cleared quickly at STFC .

 While remaining 18% of them are telling their queries are not cleared quickly.

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15.

Are you satisfied with the repayment system of STFC?

Table:3. 15

Yes 64 64%

No 36 36%

Total 100 100%

 64% of the respondents are Satisfied with repayment system at STFC.

 While remaining 36% of them requires changes in repayment system.

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16.

Do you recommend STFC to others?

Table:3. 16

Yes 68 68%

No 32 32%

Total 100 100%

 68% of the respondents are in favour of recommending STFC to others for taking loan.

 While remaining 32% of them are not in favour of recommending to others.

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17.

Do you want to take finance in near future from STFC?

Table:3. 17

Yes 60 60%

No 40 40%

Total 100 100%

 60% of the respondents wants to take finance in near future from STFC.

 While remaining 40% of them are not in favour of taking finance from STFC .

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CONCLUSION

Less than anticipated growth in the face of intensifying competition and rising costs, can hardly be expected to get the company foaming.

By seeing the observations most of the customers are having positive perception towards Shriram Transport Finance Company Limited and are satisfied with their services such as Quick finance, Easy documentation process etc. The company is progressing continously in the field of finance as Non-Banking Finance Company to compete with other Financial as well as Non-banking financial institutions.

STFC is the Non-Banking Financial Company in the Indian scenario and it is the leader with monopoly position in financing for Heavy

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SUGGESTIONS

 The firm should tap the un-tapped locations & market. This will help them in increasing the business. Rural places are advised

 The company should bring down their interest rates compared to other competitor rates.

 The STFC should increase their seizing period from 3 months to 4 months during slack season if the customers fails to pay their instalments.

 The STFC should maintain consistency in customer satisfaction level in future also.

 The brand awareness campaigns should be conducted. The firm should work on its Advertisements.

 Number of customers complaints should be reduced, because always cost is associated in solving these problems.

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Questionnaire

Dear Sir/Madam,

I am pleased to introduce myself as MBA student of PES&T’s

Belgaum Institute of Management Studies, Belgaum. As a part of

my curriculum I am conducting a survey on the “Perception of

customers towards ShriRam Transport Finance Company Limited

to improve the quality of service”. The information provided by

you will be strictly kept confidential and used for academic

purpose only.

Your co-operation will be highly appreciated.

1.Do you own a HCV?

Yes [ ] No [ ]

2. Source of finance for your HCV?

Co-op banks [ ] STFC [ ] Tata finance [ ] Others [ ]

3. Are you aware of STFC?

Yes [ ] No [ ] ( If no go to Question No:- 17 ).

4. How did you come to know about this company?

Friends [ ] Agents [ ] Self experience [ ] Others [ ]

5. Do you get the finance quickly from STFC?

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6. Are you satisfied with the documentation process at STFC?

Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither

satisfied/ Dis-satified [ ] Satisfied [ ] Strongly

Satisfied [ ]

7. Do you require any changes in the documentation process?

Yes [ ] No [ ]

If Yes specify _______________________________.

8.What do you feel about the interest rates at STFC?

Very High [ ] High [ ] Moderate [ ] Low [ ]

9. Are you satisfied by the percentage of finance provided by

STFC?

Yes [ ] If No specify _________.

10. Are you satisfied with the services offered by STFC?

Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither

satisfied/ Dis-satified [ ] Satisfied [ ] Strongly

Satisfied [ ]

11. What are the features that attracted you to borrow loan from

STFC?

Low interest rates [ ] Quick finance [ ]

Easy documentation [ ] Low EMI [ ]

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12. How do you rate STFC with respect to other finance companies

( 1 being highest and 6 being lowest)/

1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 [ ] 6 [ ]

13. What is your experience when you approached the executives of

STFC for finance of HCV?

Very Good [ ] Good [ ] Neither Good/Bad [ ]

Bad [ ] Very Bad [ ]

14. Are your queries cleared quickly?

Yes [ ] No [ ]

15. Are you satisfied with the repayment system of STFC?

Yes [ ] No [ ]

16. Do you recommend STFC to others?

Yes [ ] No [ ]

17. Name the other finance companies you know?

____________________________________.

18. Do you intend to take finance in near future from STFC?

Yes [ ] No [ ]

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19. Please provide some suggestions in improving the quality of

service at STFC?

_______________________________________________________

________________________________________________.

Please provide the below mentioned information:

Name:

_______________________________________________________

Address:

_______________________________________________________

Occupation: _____________________________

Annual Income ______________________

Gender: Male [ ] Female [ ]

Thank You

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WEEKLY PROGRESS REPORT

Name the student:- Riyaz Ahemad Hospet

Title of the study:-"A study on Perception of customers towards ShriRam Transport Finance Company Limited to improve the quality of service"

Report:-1st

date/day ACTIVITIES DONE

15/5/06 Monday

I have prepared four project titles based on consumer behavior and market research.

16/5/06

Tuesday I was allotted the project as above from external guideMr.Zulfi Balegar. 17/5/06

Wednesday

Got the information regarding their products and competitor which helps in this project.

18/5/06 Thursday

I have studied information regarding customer perception. 19/5/06

Friday

Met the internal guide Mr. M. N. Manik and discussed the project and related information

20/5/06 Saturday

Met the external guide and discussed the project and how it related with perception of customers.

21/5/06 Sunday

Holiday

Signature of student Signature of the Internal Guide

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Report:- 2nd

22/5/06 Monday

Started research design to know “the perception of customers towards STFC to improve the quality of service”.

23/5/06

Tuesday Prepared objectives of study. 24/5/06

Wednesday

Met the External Guide. Discuss the research design & objectives of the study.

25/5/06

Thursday Met the Internal Guide. Discuss the research design &objectives of the study. 26/5/06

Friday

I made changes in the Research design & objectives of the study as per the instruction of External guide & Internal Guide.

27/5/06 Saturday

Referred some standard questionnaire for preliminary draft. 28/5/06

Sunday

Holiday

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Report:-3rd

29/5/06

Monday Referred some Marketing Research and ConsumerBehavior book for drafting model questionnaire. 30/5/06

Tuesday

Referred some Marketing Research for drafting model questionnaire

31/5/06 Wednesday

Met Internal & External Guide discussed the questionnaire. 1/6/06

Thursday

Met Internal & External Guide discussed the questionnaire 2/6/06

Friday

Made required changes in questionnaire. As per the instruction of Internal & External Guide.

3/6/06 Saturday

Made minor changes in quistionnaire. 4/6/06

Sunday

Holiday

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Report:- 4th

5/6/06

Monday Drafted final questionnaire for customers. 6/6/06

Tuesday

Collected data required from customers. 7/6/06

Wednesday

Referred Journals & Internet for conducting survey. 8/6/06

Thursday

I have pointed out the random sample for conducting survey.

9/6/06 Friday

Circulated the consumer questionnaire for pilot testing . 10/6/06

Saturday

After pilot testing met Internal & External Guide discuss problem occurred during the pilot testing of questionnaire. 11/6/06

Sunday

Holiday

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Report:-5th

12/6/06

Monday After pilot testing met Internal & External Guide discussproblem occurred during the pilot testing of questionnaire 13/6/06

Tuesday

Considering the instructions of guides prepared final questionnaire.

14/6/06 Wednesday

Started conducting survey for 5 customer of HCV. 15/6/06

Thursday

Friday

Saturday

Sunday

Holiday

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Report:-6th

19/6/06

Monday Started conducting survey for 9 customer of HCV. 20/6/06

Tuesday

. Started conducting survey for 5 customer of HCV. 21/6/06

Wednesday

Thursday

Friday

Saturday

Sunday

Holiday.

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Report:-7th

26/6/06

Monday Started conducting survey for 5 customer of HCV. 27/6/06

Tuesday

Met Internal & External Guide showed the filled questionnaire to them.

28/6/06 Wednesday

Started feeding questionnaire in MS-Excel. 29/6/06 Thursday On leave 30/6/06 Friday On leave 1/7/06 Saturday

Started making graph and analyzing the results. 2/7/06

Sunday

Holiday

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Report:-9th

3/7/06 Monday

Started making graph and analyzing the results. 4/7/06

Tuesday

Met External guide discussed the results and findings. 5/7/06

Wednesday

Continued making the graph and analyzing the results. 6/7/06

Thursday

Continued making graph and analyzing results. 30/6/06

Friday

Collected all information in one document for making report. 8/7/06 Saturday On leave 9/7/06 Sunday Holiday

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Title of the study:-"A study on Perception of customers towards ShriRam Transport Finance Company Limited to improve the quality of service"

Report:-10th

10/7/06 Monday

I have showed report to internal guide. 11/7/06

Tuesday

Made required changes in the report. 12/7/06

Wednesday

I showed report to External Guide. 13/7/06

Thursday

Made changes as per the instructions of External Guide. 14/7/06

Friday

Took print out. 15/706

Saturday

Submitted report to the collage. 16/7/06

Sunday Holiday

Signature of External Guide

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REFERENCE

BOOKS:-1. MARKETING RESEARCH Tull and Hawkins. 2. CONSUMER BEHAVIOR Schiffman and Kanuk. 3. MARKETING Lamb, Hair, Mcdaniel.

WEBSITE:-1. www.shriram.com 2. www.google.com.

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