This document provides information about Instrumentation Limited (IL), including its history, objectives, organisational structure, products, customers, and current status. IL was set up in 1964 by the Government of India to achieve self-reliance in process control instruments. It has manufacturing facilities in Kota and Palakkad. In recent years, IL has diversified into various sectors like telecommunications, power electronics, and railway signalling while continuing to serve its core industries of power, steel, fertilizers etc. The document outlines IL's vision, objectives related to productivity, business growth, customer satisfaction and employee development. It provides an overview of IL's performance in 2005-06 and its future plans.

1. TRAINING PROJECT REPORT
ON
“ STUDY OF MARKETING PROCESS OF INSTRUMENTATION
LIMITED ”
INDRAPRASTHA COLLEGE OF MANAGEMENT AND
TECHNOLOGY
KOTA
GUIDED BY : STUDENT:
VIJAY DEWANI
ROLL NO:
ICMT/KT/11/0017
1

2. INSTRUMENTATION LIMITED, KOTA
2

3. PREFACE
Realizing that the practical experience is an academic for all round development of a
personal, as a part of the course Curriculum for Master of Business Administration, the
student has to undergo practical training for 45 days.
The objective of training is to provide the student with an insight to the practical
aspects of organizational working and environment. Such type of training helps students to
work on real industrial environment, and to gain practical knowledge and build confidence.
I have much pleasure in submitting the project report on “STUDY OF MARKETING
PROCESS OF INSTRUMENTATION LIMITED ” adopted in “Instrumentation Limited,
Kota”.
3

4. ACKNOWLEDGEMENT
As we move on, I express my immense gratitude to those whose contributions gave
shape to this project. Firstly, I am grateful to Mr. K.C. Khatri (DGM, HRD) providing
facilities for desertion work at the organization.
I acknowledge the valuable guidance and help rendered by Mr. P.K. Vashist, Sr.
Manager (Mktg.) for the Marketing Department.
I even express my sincere acknowledgement to all the personnel of different
department whose informative guidance motivated me to understand various dynamics of the
company.
Not to mention my sincere thanks to , who was always there to assist
me in the project work .
Last but not the least I would like to thanks my lecturars without whose feedback and
encouragement, this project would not have been possible. Their help has gone a long way in
successful completion of my project.
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5. TABLE OF CONTENTS
S.NO. NAME PAGE NO.
1.
THE OBJECTIVE OF THE STUDY 6
2. SCOPE OF PROJECT WORK 7
3. EXECUTIVE SUMMARY 8 - 12
4. JUSTIFICATION FOR CHOOSING A
PARTICULAR TOPIC 13
5. COMPANY PROFILE 14 - 31
6. METHODOLOGY (MARKETING PROCESS) 32 - 56
7. RESEARCH METHODOLOGY 57 - 59
DATA INTERPRETATION 60 - 66
8.
9. RECOMMENDATIONS 67
10. LIMITATIONS OF THE STUDY 68
CONCLUSION 69 - 70
11.
12. BIBLIOGRAPHY AND WEBLOGRAPHY 71
13. QUESTIONNAIRE 72 - 73
5

6. THE OBJECTIVE OF STUDY
FOR A COMPANY :
1. To see the scope of products being provided by company in Indian as well as foreign
market.
FOR A RESEARCHER :
1. The object is to provide the individual with an insight to the practical aspects of
organizational working and environment, such type of study & its consequent
exposure helps students to prepare for working in real industrial environment and to
gain practical knowledge & build confidence.
2. To have in depth study of Marketing Procedure of Instrumentation Ltd., Kota.
3. To suggest Some changes for betterment in marketing process of IL .
6

7. Scope of the Study
The confined study of marketing procedure & procurement action adopted by
Instrumentation Ltd., Kota is the scope of the present study. It is not in any way related to
studying the procedure being followed and documentation required else where in the other
aspects of I.L. excepts :
As a researcher :
To find out whether a change in the marketing process adopted in IL , KOTA is
needed or not.
As a Student:
To see the extent to which research methodology is used in practical aspect or not.
To see how the marketing process is implemented.
7

8. EXECUTIVE SUMMARY
The Instrumentation Ltd. a Govt. of India Enterprises was set up at Kota in April 1964
in collaboration with Russia with a provision to setup second unit at Palghat in Kerala. The
production was started in October 1968. It holds good rank in India in the field of Process
control instruments. Whatever the capacity of field may be one can only rely on I.L. board
based engineering capability expertise for instruments for requirements
Marketing means to identity customer needs and then providing them for satisfying them. It
is an important aspect of the business. The project has been made to know the different aspect
of industrial marketing. The project emphasizes on the fundamental study of industrial
marketing method. Research has described in this project how does the company receive &
their execute the orders to industrial marketing consists of all activities the involved in the
marketing of products to organization.
The aim of the company to maintain leadership in turnkey execution of
Instrumentation system for power & steel projects and do improve market share in fertilizer,
cement and other allied industries as well as to improve retail sale.
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9. Kota office basically a co-ordination office which is to co-ordinate between
Marketing head quarter, branch offices and various department at Kota for timely execution
of order and complete customer satisfaction. Kota office is also responsible for booking of
orders for all telecom products. I.L. specializing in the turnkey Process Control
Instrumentation to record, monitor and control process parameters in process industries.
Instrumentation Ltd. takes total responsibility for engineering, manufacturing, erection and
commissioning of instruments with a back up of after sales services. So under this project the
whole procedure for completing the order of customer has described.
9

10. DEFINITION OF RESEARCH METHODOLOGY & DESIGN
Research study will be based on collection of primary data as well as secondary.
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. The study of research
methodology gives the student the necessary training in gathering material and arranging
them.
“Research Comprises defining and redefining problems, formulasting hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and atlast carefully testing the conclusions to determine whether they
fit the formulating hypothesis”.
-Clifford Woody
Research is an academic activity and as such the term should be used in technical
sense. Research is the systematic approach concerning, generalization & formulation of
theory.
RESEARCH DESIGN
It is an exploratory research design.
studies are also termed as formulative research studies. The main purpose of such
studies is that of formulating a problem for more precise investigation or of developing the
working hypothesis from an operational point of view. The major emphasis in such studies is
on the discovery of ideas and insights. As such the research design appropriate for such
studies must be flexible enough to provide opportunity for considering different aspects of a
problem under study.
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11. DATA COLLECTION
The task of data collection begins after are research problem has been defined and
research design/plan chalked out. While deciding about the method of data collection to be
used for the study, the researcher should keeps in mind two types of data
(a) Primary Data
(b) Secondary Data
Collection of Primary Data
The Primary data are those which are collected afresh and for the first time. Primary
data will be collected by researches by questionnaire, observation, interviewing the executive
engaged in formulating as well as implementation of marketing procedure and its accounting,
for the purpose, technique of satisfied random sample will be used and a sample of 15
employees will be selected randomly. Moreover the researcher will also interview the
management and executive, looking after the marketing and store accounting in IL, Kota. in
my research I have opted questionnaire method which was filled by marketing department
and procurement division.
The researcher will also make on the spot study by using the observation technique of
data collection.
COLLECTION OF SECONDARY DATA
The secondary data are those which have already been collected by someone else and
which have already been passed through statistical process.
For collecting secondary data the researcher has taken the help of published
report/information of IL Accounts and Balance Sheet, Newspaper, Periodicals Journals and
Magazines etc. related to this study. After collecting the data by primary as well as secondary
sources the researcher has classifed, tabulate and interpret the same by using the various
statistical tools and techniques such as mean, mode, median, standard deviation, correlation
etc.
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12. TYPE OF SAMPLING
Simple random sampling technique was used.
SAMPLE SIZE
While preparing the project report I will take the response to certain questionnaire from IL
employees. The sample of 15 employees has selected randomly.
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13. JUSTIFICATION FOR CHOOSING A PARTICULAR TOPIC
“STUDY OF MARKETING PROCESS OF INSTRUMENTATION LIMITED ”
RATIONALE BEHIND THE STUDY
Now a days the impact of globalisation is very vast and it becomes the need of an
hour. It is not possible for a company to survive alone. Globalisation not only provides a
platform for fair competition but open gateway for more and more Research & Development.
In the whole process what ultimately gained are better products at competitive prices. If we
get better products then we can provide our customers better equipments and can satisfy to
them.
This is not only provides scope of betterment and sophistication of techniques i.e.
method of production but broadens the horizon of business.
Marketing is an important aspect of the business. Marketing means to identify
customer needs and then providing them. It is very difficult to move global. Financial success
often depends on marketing ability. Finance operations. Accounting and other business
functions will not really matter if there is not sufficient demand for products and services so
the company can make a profit.
To sell the product in a global market is not an easy task. Marketing managers must
make major decisions such as what features to design into a new product, what prices to offer
customers, where to sell products and how much to spend on advertising.
For this a complete understanding related to marketing and stores is must.
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14. COMPANY PROFILE
* Vision of the company
* Objectives of the company
* History of the Company
* Organisation Structure
* Board of Directors of I.L.
* Kota Unit
* The Organisation
* Products of Instrumentation Ltd.
* Customers of Instrumentation Ltd.
* Present Status of Instrumentation Ltd.
* .Future of I.L.
* Achievements & Awards.
14

15. Corporate Vision
To become a leading world class Engineering Organization focused on customer
satisfaction in the field of Control Instrumentation; Automation for Core Sector viz. Power,
Steel, Refineries & other Process Industries; Telecommunication; Railway Signalling,
Industrial UPS, Knowledge based systems such as IT & Software and Services; Electrical
Transmission & Distribution; GIS/GPS,SCADA system.
Objective of Instrumentation Ltd.
1. Productivity :
* To ensure optimum utilization of all the facilities in Manufacturing Division.
* To ensure optimum utilization of facilities created for manufacturing of
Railway Signalling System.
* To realize greater operational efficiency, improved productivity and higher
capacity utilization and generation of internal resources.
2. Business :
* To undertake financial restructuring of the company to be more competitive.
* To endeavor to achieve reasonable return on investments.
* To further increasing its contribution in the company’s value of production
and profitability.
* To maintain 10% annual growth in the turnover of the company excluding the
bought out items.
* To revaluate the corporate plan for higher growth and dividend objective.
3. Customers :
* To achieve and maintain high degree of customer satisfaction with timely
delivery of quality, products and services at competitive rates and also
establish customer feedback system.
4. Employees :
* To upgrade the quality of human resources and strengthen the technical and
managerial competence for growth.
* To achieve higher levels of safety standards.
* To restructure the manpower by rationalization.
15

16. PROFILE OF
INSTRUMENTATION LIMITED
Instrumentation limited is a Govt. of India Enterprise set up in 1964 with the prime
objective of attaining self-reliance in the field of Control & Automation for the
process industry. Today IL is manufacturing & supplying state of the art control
equipments on turnkey basis to the various sectors of the industry viz. Power, steel,
fertilizer, chemical and petrochemical.
Instrumentation limited is headquartered at Kota along with its Commercial Division
specialization in power and steel sectors. The regional & field offices, at different
sites look after the installation work. The marketing division is based in New Delhi
with branch offices in Calcutta, Chennai & Mumbai. IL has its plants at Kota &
Jaipur.
With over 35 years of experience & a dedicated workforce, IL has mastered all
complexities of control systems requirements & can lead right through any industrial
project from system designing, to detailed engineering , manufacturing , installation
,final commissioning to after sales service & customer training. IL is now
diversifying in to the field of Telecommunication, Power Electronics & Railway
signaling systems.
16

17. HISTORY OF THE COMPANY
Most of the instruments required for Process Control Industries alongwith main
equipments were being imported in early 1960. Process Control Industries were growing at
rapid rate, so we import the Instruments.
In order to minimize the import to Process Control Instrument and to achieve self
reliance in this vital field a decision was taken by the Government of India to set up a Factory
(Industry) in the Public Sector to manufacture Process Control Instrument’s and Allied Items.
Instrumentation Limited is a Govt. of India Enterprise set up in 1964 with the prime
objective of attaining self reliance in the field of control and automation in the process
industry. Today IL is manufacturing and supplying state-of-the-art control equipment on
turnkey basis to various sectors of the industry viz. Power, Steel, Fertilizer, Chemical,
Petrochemical, Refineries, Pharmaceutical, Cement, Paper, Textile, Space and Oil & Gas
Tele-Com, Flownozal valve Uninterrupted Power Supply (UPS) Mobile Towers etc.
Kota Plant was setup in technical and financial collaboration with USSR and it
commended commercial production in the year 1968. As a part of its continued efforts for
modernization and standards, the company has entered into technical know-how and
assistance agreements within two internationally renowned manufacturers based at Britain
and West Germany of Process Control Instruments.
The second production unit of the company was established in Palakkad for manufacturing of
Control Valves and allied items for which technology is provided by a leading Japanese
Company, viz. Yamatake Honeywell Co. Ltd. the unit commended production in December
1975 and has significantly contributed to overall growth of the company’s financial results
with its well established mechanical shops and other infrastructure.
17

18. KOTA UNIT
This plant is located at Kota-Jhalawar Road Kota-5 (Raj.). It is the birth place of
Instrumentation Ltd.
This production unit was setup in collaboration with M/s Premmash Export USSR.
This plant commenced its sophisticated process control instruments in various ranges.
The Kota plant cater the need of industrial process control instruments required by
various Thermal Power Station, Electricity Boards, Steel and Chemical Plants, Chemicals
industries, Paper industries and other Heavy Engineering units.
Just from the first year of production the company has been successfully supplying
instrumentation and control equipments and has achieved all time high record of production,
turn over in profit. It has continued to play its vital role in speedy development of process
industries through out the countries in such a brief period and the company has achieved a
leading, reputable and important position not only in India but in abroad also.
Today, the Corporate R&D center of the company is an independent wing like other
units of the company with its own proto-type development shop, various laboratories and
other amenties, manned by well qualified technical personnel and headed by Executive
Director.
I.L. has its registered and corporate office at Kota (Raj.). Manufacturing facilities
accredited with ISO 9000 series. Quality System Certification are located at Kota & Palakkad
(Kerala).
18

19. PERFORMANCE AT A GLANCE
In the year 2005-06 through sustained efforts of the company for performance
enhancement and with the support of Govt. of India and all other concerned stakeholders, the
company has been successful in achieving a higher turnover of Rs. 21,998/- lacs as compared
to previous year’s turnover of Rs. 17,585/- lacs. The company has also been successful in
recording operating profit of Rs. 1,304.92 lacs for the year 2005-06 as compared to previous
year operating profit of Rs. 1,091.74 lacs. The net loss for the year 2005-06 was Rs. 2,450.84
lacs as compared to previous year loss of Rs. 1,697.81 lacs
Instrumentation Limited has been able to maintain its operations despite various
constraints, mainly the shortage of working capital. In recent years despite challenges the
company has been implementing its BIFR approved sanctioned scheme and displayed
resilience to adopt new economic scenario. Since the implementation of this scheme from 1st
April 1999 the business has been upbeat. In fact, the current year i.e. 2001-02 has been better
than previous year for the corresponding period. The company has been able to address the
main constraints of high wage bill due to surplus manpower and high interest cost. Both these
factors have been brought down by way of rationalization of manpower and financial
restructuring and repayments to creditors. The company has been receiving excellent support
from the owner, i.e. Government of India. Further, State Government of Rajasthan has also
extended support for raising funds through sale of surplus land at Kota complex. With all
these achievements that company’s business is growing. In the power sector also the
company has secured and executed some prestigious orders like Santhaldih project of
WBSEB, Obra 6 & 7 project of UPRVUN during the year 2000-01 I.L. is finalizing a major
order for Roper Power Station of Punjab State Electricity Board. The company is enjoying
technical & business support from business partners. The company’s capability could also be
gauged by other business segments, as it has performed well in supply of state-of-art
equipments by way of MAX-XL Telephone Exchanges supplied at over 250 locations
throughout the country. The diversified field of Railway signaling and Defence Electronics is
also yielding good response. The company continues to maintain cutting edge of competition
through adherence to international quality standards, high standards of customer service in its
business strong hold of control Instrumentation and Telecommunications.
19

20. PRESENT STATUS OF INSTRUMENTATION LTD.
IL has incurred additional cash losses because of delay in implementing of sanctioned
revival scheme. Due to acute shortage of working capital the company has suffered badly in
terms of business. The company has, therefore, submitted a proposal for consideration to the
Administrative Ministry. The Administrative Ministry i.e. Department of Heavy Industry,
Ministry of HI & PE, has been kind enough to consider the proposal for (a) Government
Guarantees for rising funds from Banks/Financial Institutions for reimbursement of additional
cash losses (b) reservation of order by 1 for 10% of Annual requirement of BSNL for
MAXXL Telephone Exchange with 50% advance for a period of 3 yours (c) steps for JV
formation of holding unit. (d) and for VRS. The committee of Ministers has recommended
the proposal for consideration of cabinet. The Ministers has recommended the proposal for
consideration of cabinet. The cabinet has also approved this proposal recommended by the
committee of Ministers in the third week of September 2001.
The cabinet approval of the proposal will enable the company to utilize its
manufacturing capacity infrastructure, manpower and get over the working capital shortage.
Rationalization of manpower will be ensured by funds for VRS. Reimbursement of additional
cash losses will enable the company in bridging the working capital deficit. JV formation is
expected to provide technology, finance and marketing input to the company for its long
terms viability.
20

21. Future of I.L.
The company is posed for better growth in the coming years in view of the
following –
* The sanctioned revival envisages liquidation of substantional portion of the liabilities
out of the proceeds as loans from sale of surplus land available with the company at
Kota. The government of Rajasthan through Urban Improvement Trust, Kota has
invited offers and principal approval has been given in the favour of the highest
bidder. The company has achieved the target for manpower rationalization as per
sanctioned scheme. However process of rights sizing of manpower strength in
commensurate with the business potential will be continued.
* The sanctioned revival scheme is in its third year of implementation. Joint venture
formation of Palakkad unit is at an advance stage. Qualified interested parties have
completed due diligence activity. Integration of Jaipur unit with Kota unit is also
being taken up.
* The company has also undertaken various measures for further improvement in its
working such as reduction in cost, reduction in salary and wages through right sizing
of manpower, closures of unviable sites, sale of land and building etc. at Sitapur,
Jaipur integration of Jaipur unit with Kota and improvement in working capital
management. The company is also pursuing actively the plans for introduction of new
products to ensure optimum utilization of existing facilities.
* With the implementation of revival package and restructuring business of the
company with assured from BSNL for next few years the company is hopeful of turn
around.
* With recent approval by cabinet for reservation of Telecom order from BSNL will
help the company to improve its net worth and financial position.
21

22. ACHIEVEMENTS & AWARDS
Achievements
An order of over Rs. 300 lacs has been received from Corporation Bank or supply of
UPS products.
Our regular customers have continued their faith and confidence of IL products by
placing orders worth Rs. 436 lacs and Rs. 148 lacs respectively for control values and other
flow elements.
At Palakkad works cryogenic valve testing facility established for testing valves up to
6 inches size. Valves can be tested up to minus 196 degree centigrades. Also the
developments of new valve bodies with higher CV valve were tested.
The largest rotary electronic control valve 16" made in the country with in house
design capability. This value was supplied to Formosa Plastics, Taiwan.
All the manufacturing facilities at Kota, and Palakkad revalidated for ISO 9000.
22

23. Important Milestones Achieved
1964 - Established with Registered Office at Kota
1965 - C&I Production Commenced
1975 - Control Value Production Commenced
1982 - Special Temp. Sensor (RTD) for Nuclear Plant
1988 - Major Diversification in Telecommunication
1998 - Diversification in Defence Products
2001 - Production of firing device (Defence order)
2002 - Production of large size Telephone Exchanges
2003 - Production of special solenoid values for nuclear application (Defence
order)
23

24. ORGANISATION STRUCTURE
Board of Director
Chairman-cum-Managing Director
Company
Secretary
Business Acquisition Procurement Manufacturing
Group Facilities
Projects DDC Customer CP & IT Marketing
Unit Services Unit
Kota Unit Palakkad Unit
Exports Regional & Site Branch
Division Offices Offices
Subsidiary
Corporate Unit
F&A
Corporate REIL
P&A
Corporate
R&D
24

25. Chart No. 2
Board of Directors of I.L.
Sl.No Name and address of Director Telephone No
Email Address
1. Shri PM Bhardwaj 0744 - 2426914 ilkcmd@sancharnet.in
Director (Production) 0744 - 2424476 dp@ilkota.in
and 0744 – 2426806
Chairman-cum-Managing Director
(Addl. Charge)
Instrumentation Limited, Kota
2. Shri SS Dubey 011- 23061622 -
Chief Controller of Accounts
Department of Heavy Industry
Ministry of Heavy Industry & Public
Enterprises
Udyog Bhavan
New Delhi.
3. Shri S Jainendra Kumar 011- 23061563 -
Director
Department of Heavy Industry
Ministry of Heavy Industry & Public
Enterprises
Udyog Bhavan
New Delhi.
4. Shri Mohan Lall
Special Director (BIFR)
C-1002, Juhu Abhishek Apartment
Juhu Versova Link Road
Andheri(W)
Mumbai-400 053
5. Shri S.K. Gupta 0744 – 2427278 df@ilkota.in
Director (Finance)
Instrumentation Limited, Kota
6. Commodore Harphool Singh, VSM 0744 – 2426376 dc@ilkota.in
Director (Commercial)
Instrumentation Limited, Kota
F
25

26. PRODUCT RANGE OF IL
Instrumentation Limited is an ISO 9002 certified multi-unit, multi-product Company that are
manufacturing those product which are used by any Industry so there are Industry based
marketing. The main products which are manufacture by Instrumentation Ltd. Are given as
under…….
1. FAULT TOLERENT CONTROL SYSTEM – FICS
Fault tolerant control system, being manufactured in technical collaboration with AUGUST
SYSTEM, UK is an ultra reliable control designed for use in critical industrial, control, safely
shutdown and monitoring application.
It can be used as a stand – alone control system or be part of a distributed process control
system
CONTROL SYSTEM-FICS
2. MICRO PROCESSOR BASED DISTRIBUTED DIGITAL
CONTROL SYSTEM STARDIC
The STARDIC microprocessor based Distributed Digital Control System manufacture in
collaboration with M/s Toshiba Corporation; Japan caters to need of flexible and
comprehensive process plant instrumentation and controls to obtain energy conservation,
improved productivity and quality, increase yield and safe innovative operational techniques.
The STARDIC Distribution System is flexible and can be utilized in small, medium or large
scale application. The system architecture dually fits process automation .Where a plant
expands physically and functionally involving several phases while still maintaining single
loop integrity.
ECS-1200 DISTRIBUTED CONTROL SYSTEM
This Evolutionary control system is the latest state of the art control system from HF Control
Corporation (HFC), USA. HFC, a wholly owned subsidiary of Doosan Heavy Industries &
Construction (DHICO) is designer, manufacturer assembler, integrator and distributor of
control system & Instrumentation, HFC provides ECS-1200 control system for power plants
and industrial plants. Capabilities include Combustion Controls, Burner/Boiler Management,
and Balance of Plant (BOP) control, for combined cycle, Electrical generation, Cement,
26

27. Nuclear, Petrochemical, and Power etc.
3. ELECTRONIC TRANSMITTERS
ELECTRONIC CELL TRANSMITTER, being manufacture in technical collaboration with
M/s Fuji, Japan, is of capacitance type, used for measuring pressure, differential pressure,
flow rate, liquid level and other process variables. It employs a unique floating cell structure
and is available in various compact models with wide measuring ranges.
ELECTRONIC TRANSMETER
4. GAS ANALYSERS AND POLLUTION MONITORING
INSTRUMENTS
It manufactures GAS ANALYSERS and POLLUTION MONITORING INSTRUMENTS in
technical collaboration with M/s MANNESMANN HAREMANNAND RAUN, WEST
GERMANY. The range covers almost all types of online gas analyzers viz. paramagnetic,
infrared, thermal conductivity and pH analyzer- IL’S gas concentration robust design allows
these to withstand the stress and strain of everyday industrial operation and can be employed
to identify noxious concentration s in environmental atmosphere.
IL also offers:
i. Zirconium Probe Oxygen Analyzers in collaboration with WESTINGHOUSE.
ii. Dissolved Oxygen & Hydrazine analyzer Model Oxyflux-4 in collaboration
with Dr. THIEDING & Co. WEST GERMANY.
iii. Steam and Water Analyzers & systems (SWAS)
5. MICRO PROCESSOR – BASED RECORDERS /
CONTROLLERS
IL now offers microprocessor – based recorders in technical collaboration with M/s ABB
KENT, UK. The microprocessor – based strip chart recorder is designed to provide recording
of up to six input channels in a compact instrument with improved accuracy, reliability and
27

28. ease of programming. Besides strip chart recorder this range also includes circular chart and
digital display controller.
6. CONTROL VALVES
IL manufactures a wide variety of control valves viz. globe, butterfly, angle, three-way,
below sealed, flowing, micro flow, top and bottom guided, double seated, low noise, etc. to
cover all conceivable application in technical collaboration with world renowned m/s
YAMATAKE HONEYWELL, JAPAN. Pneumatic and electric actuators are also available.
7. SAFETY RELIEF VALVE
The SAFETY RELIEF VALVES are manufactured in technical collaboration with M/s
NUOVO PIGONE, ITALY. (the world leaders in the design and manufacture of safety relief
valve).
They give prompt relief at the exact pressure for which they have been set and are available
from ½ “ to 10 “ with pressure rating of 150 – 2500 ANSI.
8. LARGE – SIZE SOFT – SEATED BUTTERFLY VALVES
Confirming to American Water Works Association Standard, these valves are the best choice
as isolation valves for water and gas application. Ensuring bubble tight closure, due to soft
seating, these are available in wide range of sizes up to 2400 mm and materials to suit any
process requirements.
9. RAILWAY SINGNALING SYSTEMS
IL has achieved a high degree of excellence in designing, manufacturing, supplying
installation, testing and commissioning of railway signaling systems comprising of panel
interlocking, route relay interlocking, color light signaling, etc. the complex circuit design for
these systems are carried out on computer aided systems. The manufacturing range of IL in
technical collaboration with KYOSAN ELECTRIC MANUFACTURING Co., JAPAN,
includes various types of signaling relays, track circuits, audio frequency track circuit
equipment, modernized systems like CTC, SSI etc.
10.CONTROL PANELS AND DESKS
For electronic and pneumatic instruments in different types, colors and finishes to suits the
customer’s specific requirements.
28

29. CONTROL PANELS
11.ANNUNCIATIORS
CMOS based Annunciators, based on its in house R&D, are available in integral, wall –
mounting and remote configuration featuring all standard requirements.
12.DIGITAL SWITCHING SYSTEMS
The digital switching systems being manufactured are based on indigenously developed C-
DOT technology.
ELECTRONIC PRIVATE AUTOMATIC BRANCH EXCHANGE (EPABX). The system
includes 128 and 256p exchange, working in digital environment which ensures high
reliability and speed.
29

30. CUSTOMERS OF INSTRUMENTATION LTD.
Customer of Instrumentation Ltd., Kota are in the following sectors
I. Steel Plants
Steel authority of India Limited
(a) Bhilai Steel Plant
(b) Bokaro Steel Plant
(c) Durgapur Steel Plant
(d) Rourkela Steel Plant
(e) Tata Iron and Steel Co., Jamshedpur
II. Paper Industries
(a) Hindustan Paper Corporation Ltd.
(b) Andhra Paper Mills (A.P.)
(c) Mysore Paper Mills
III. Power
(a) National Thermal Power Corporation (NTPC)
(b) Bharat Heavy Electrical Limited (BHEL)
(c) Steel Authority of India Limited (SAIL)
(d) Durgapur Projects Ltd.
IV. Atomic Energy
(a) Nuclear Power Corporation India, Ltd.
(b) Department of Atomic Energy (DAE)
(c) Bhabha Atomic & Research Centre
V. Fertilizers
(a) The Fertilizer Corporation of India Ltd.
(b) Shriram Fertilizer, Kota
(c) Hindustan Fertilizer Corporation Ltd.
VI. Railway
(a) Western Railway
(b) Central Railway
(c) National Thermal Power Corporation Ltd.
30

31. (d) RITES
VII. Defence Products
(a) Defence Laboratory, Jodhpur
(b) ARDE, Pune
(c) DRDL, Hyderabad
(d) Ministry of Defence, New Delhi
VIII. Textile
(a) Grasim Industries
(b) Gwalior Rayon Silk Mfg. Co. Ltd., Nagda
(c) Baroda Rayon Corporation Ltd.
IX. Pharmaceuticals
(a) Indian Drugs & Pharmaceuticals Ltd. Hyderabad, A.P.
(b) Indian Drugs & Pharmaceuticals Ltd., Rishikesh
(c) Hindustan Antibiotics Ltd.
31

32. METHODOLOGY
CONCEPTUAL FRAMEWORK :
INTRODUCTION OF INDUSTRIAL MARKETING
Industrial marketing consists of all activities involved in the marketing of products
and services to organization (i.e., commercial enterprises, profit and not for profit institution,
government agencies and resellers) that use products and services in the production of
consumer or industrial goods and services in the production of consumer or industrial goods
and services and to facilitate the operation of their enterprises. Viewed from the perspective
of “Marketing”, industrial marketing is, then, human activity directed towards satisfying
wants and needs of organizations through the exchange process.
Exchange transactions in the industrial market consist of –
(a) Products or Services Exchange
(b) Information Exchange
(c) Financial Exchange and
(d) Social Exchange
Product Exchange :
The characteristics of the product or service involved have a significant effect on the
industrial exchange process. The ease of exchange depends upon the ability of the seller to
identity the buyer’s need and the product’s potential to satisfy those needs.
Information Exchange :
Information Exchange often consists of answering technical, economic and
organisational questions regarding pre and postsale maintenance and servicing. Products must
be planned and designed to serve customers. To accomplish this, buyers and sellers tend to
work together, exchanging product – specific information over long period of time.
32

33. Financial Exchange :
Financial exchanges may involve such considerations as the granting of credit or the
need to exchange money from one currency into another when dealing with foreign buyers.
Social Exchange :
Social exchange is important in such areas as reducing uncertainty between buyer and
seller, avoiding short term difficulties, and maintaining the exchange relationship over a
length transaction period. Many aspects of an agreement between buyers and sellers in the
industrial market are not fully formalized or based on legal criteria until the end of the
transaction period. Rather, much of the process of exchange is based on mutual trust.
Industrial Marketing deals with marketing of specialized industrial products and is
quite different from conventional marketing of FMCG goods.
The main characteristics of industrial marketing are –
1. It deals in sale of industrial products.
2. It requires in depth technical knowledge of the product being sold.
3. In industrial marketing Mass advertisement/vigorous advertising through electronic
and Print Media is not done. Instead, Personal one to one contact with customer are
made.
4. No or very small distribution channels are in this marketing.
5. In most of the cases the seller and buyer know each other.
6. The sale is done through the proper marketing process of tender enquiry, quotation,
techno-commercial discussions etc.
Difference in Industrial Marketing V/s Consumer Marketing
Area Industrial Marketing Consumer Marketing
Market Geographically concentrated Geographically dispersed Mass
Structure relatively few buyers markets monopolistic
33

34. Area Industrial Marketing Consumer Marketing
oligopolistic competition competition
Products Technical complexity Standardized services, delivery
customized service, delivery and availability somewhat
and availability very important
important
Buyer Functional involvement Family involvement, social/
behaviour rational/task motive psychological motives
predominante technical predominate, less technical
expertise stable relations expertise non personal
interpersonal relationships relationships.
reciprocity
Decision Distinct, observable stages Unobservable mental stage
making
Channels Shorter, more direct, fever Indirect, multiple linkage
linkage
Promotions Emphases on personal selling Emphasis on advertisement
Price Competitive bidding, List prices
negotiating on complex
purchase, list prices on
standard items.
Advertising Practically nil advertising in It heavily dependent on mass
mass media in this marketing media advertising
Contact Totally dependent upon one No one to one contact with
to one contact users
Knowledge Selling requires in depth Selling requires no depth
technical knowledge. product knowledge.
Effective and responsive industrial marketing strategy rests on the industrial
marketer’s knowledge of how organizational buying behaviour is affected by forces within
the organization. Seldom does an organizational buyer make a decision in isolation.
Purchasing decision are influenced by organizational, group and individual forces as well as
force within the external environment.
34

35. MARKETING PROCESS OF INSTRUMENTATION LIMITED
MAREKETING ORGANISATION
Marketing Origination consists of head office at Bombay & wide network of regional &
branch offices at following places. Calcutta , Delhi , Chennai , Bombay , Durgapur , Guahati
, Pune , Vadodra , Visakhapatnam , Ahmadabad , Secundrabad . Orders are booked by their
offices &supplies are made from factory.
MARKETING ORGANISATION OF SUPPLIERS FOR EQUIPMENT OTHER
THAN PROCESS CONTROL INSTRUMENTATION
Other suppliers in this category also follow the same line i.e. maximum officers for
concentrating on follow up with individual customer & order booking.
There are very large numbers of suppliers in this category vary from very big one like M/s
L&T to very small one like M/s RTPL.
Most of the suppliers are ready in market for other unrelated &related products with their
network of sales services offices which they utilize for this product range also.
Marketing Strategy: This differs from supplier to supplier. Big ones like M/s L&T, M/s Ind.
Chem. Etc. are trying to cover all over India, while some ones like M/s Kalindi, M/s RPTL
are concentrating one or two areas for effective marketing.
Rule of the game for this type of product is low price, fast delivery & efficient after sales
services. To achieve this, many companies like M/s L&T are using to fullest extent their large
network of stockiest. Dealers, service centre, which already exists for other proud range.
Most of the companies are setting up more & more sales offices for regular contacts are
following up with potential customers.
Some suppliers of EPABX like M/s L&T & M/s Uptron are trying to attract customer by
supplying complete system i.e., both exchange & telephone of their own make with package
or erection commissioning.
35

36. MARKETING PROCESS
Marketing is everywhere. Formally or informally, people and organizations engage in
a vast number of activities that could be called marketing. Good marketing has become an
increasingly vital ingredient for business success. And marketing profoundly affects our day-
to-day lives. Financial success often depends on marketing ability. Marketing deals with
identifying and meeting human and social needs.
Marketing is an organizational function and a set of processes for creating,
communicating and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stake holders. The aim of
marketing is to make selling superflows. The aim of marketing is to know and understand
the customer so well that the product or services fits him and sells itself. Ideally,
marketing should result in a customer who is ready to buy. All that should be needed then
is to make the product or service available. In business markets companies selling
business goods and services often face well-trained and will informed professional buyers
who are skilled in evaluating competitive offerings. Business buyers buy goods in order
to make or resell a product to others at a profit. Business marketers must demonstrate how
their products will help these buyers achieve higher revenue or lower costs. Advertising
can play a role, but a stronger role may be played by the sales force, price and the
company’s reputation for reliability and quality.
36

37. The Company is divided into 4 units.
Instrumentation Ltd.
Kota Unit PDDC Marketing Palghat Unit
Factory Unit Unit Factory
Kota and Palghat units are production units, PDDC and Marketing units are
Business Acquisition Units.
Marketing Units :
Since incorporation of the company all selling activities was done by commercial
unit. In 1988-89 commercial units was bifurcated into two units.
(i) PDDC Unit
(ii) Marketing Unit
(i) PDDC Unit : This unit handle all turnkey project of control & instrumentation in
segments like steel, plants and Thermal Power Station. In this method production is
done accordingly to requirement of customer.
(ii) Marketing Unit : The company has product range that include retail industrial
products like Transmitters, UPS, SDDS, C-DOT (MAX/XL), Mobile Tower etc.
solenoid valves, control panels & desks, Defence products.
37

38. This unit of the company looks after the sales of retail products.
The marketing unit is headed by General Manager (Marketing) and its organizational
structure is shown as below :
GM Marketing
Delhi Kolkatta Chennai Marketing
Branch Branch Branch Co-ordination
Kota
Mumbai Jaipur Hyderabad
Branch Branch Branch
Each branch is headed by Branch Manager and has officials looking after various
products. They contact the customers (Existing and Potential) in their region through various
means like personal contacts fax, telephone, E-mail etc.
Since IL is making industrial products and not customer durables, the company knows
its customers well and customers also know the product range of IL.
Moreover company is more than 43 years old, they have very old and strong
relationship with its customers IL enjoys lot of goodwill with its customer & this results in
repeat orders to the company.
Officials of each branch get enquiries from customers for their requirements and
quotations are submitted.
38

39. Chart No. 4
FLOW CHART OF MARKETING PROCESS IS ADOPTED IN
INSTRUMENTATION LTD.
This process is explained in details in flow chart. Each step is explained in below
paragraph.
Receiving Tender Enquiry
Submitting Quotation
Techno Commercial Discussion
Selected lowest price Technically
accepted offer
Issuinsg Purchase Order
Branch allots O.P. No. (Order Processing Number)
and makes MDS (Manufacturing Data sheet)
and CDS (Commercial Data sheet)
& sends to Kota marketing Co-ordination
Kota Marketing Co-ordination makes PP
(Production Programme) and sent to PPC
(Production Planning & Control)
PPC Makes MPR (Material Purchase Requirement)
to Purchase Department
A
39

40. A
Purchase Department floats enquiry
to its vendors
Receiving Quotation
Techno Commercial Discussions
with venders
Select lowest price
technically accepted offer
After receipt of all material required to manufacture
the produce PPC Deptt. makes PP to
Production Shop & gives MWV
(Material Withdrawl Voucher) to Production
Product Manufacturing For Rectification
QA (Quality Assurance Checks) not OK
If
if OK
If not
OK Customer OK
Gives QA tagcustomer
If Informs Mktg.
co-ordiation for inspection
inspection
If NO inspection
Inspection OK
Product finishing and make PCV
(Production Credit Voucher)
B
40

41. B
Deposit in Finished Goods (FG)
Store through PCV
Inform to Marketing Kota
For giving Challan
Marketing gives challan
to FG stores
FG stores Gives material for
Packing & Despatch
Despatch the material & gives all
documents to Bill only
Marketing Department sent bills to customer &
its banker & collection of payment
41

42. DETAILS OF MARKETING PROCESS IN IL
1. Receiving Tender Enquiry :
Enquiry is floated by purchaser to it known suppliers of the product he requires to
purchase. In this enquiry all technical requirements are mentioned by purchaser and
he also mention commercial terms & conditions in this document like payment terms,
taxes an duties, security deposits for EMD and performance etc.
2. Submitting Quotation Tender :
According to the requirements of the tender enquiry the company submitting
quotation mention in this document all technical specifications of the product and also
mentions the prices and commercial terms and conditions i.e. excise duty, P&F, sales
tax, freight, insurance charges etc.
Seller also mentions special terms and conditions regarding payments through
Bank/Advance payment.
3. Techno Commercial Discussions :
Purchaser receives quotation from many suppliers and evaluates them as per technical
specifications required by them and prices quoted by sellers.
4. Selected lowest price technically accepted offer :
After techno commercial discussion the user selects the lowest priced technically
accepted offer. After selecting the offer, the user finalizes the terms and conditions
with supplier by means of telephonic discussion writing letters meetings etc.
5. Issuing Purchase Order :
After receiving the satisfactory reply from the seller the user issues a purchase order
to supplier to supply the material as per technically accepted specifications mentioned
in the purchase order. Purchaser also mentions the commercials terms and conditions
in the purchase order.
Purchase order is a document after which manufacturing process starts.
42

43. 6. Branch Function :
After receiving Purchase Order, Branch registers the order and allots a order
processing file no. and prepare manufacturing data sheet and commercial data sheet
and sends to Kota Marketing Co-ordination.
Order processing file no. is an eight digit number as mentioned below there after this
OP No. is used in all codependence processing inside I.L.
91307005
The significance of each digit is explained below :
9 = The first digit specifies the unit and 9 is the digit of marketing unit, 8 is for
project DDC unit & so on.
1 = The second digit specified the branch by which order is procured.
1 denote Delhi branch
2 denote Chennai branch
3 denotes Kolkatta branch
4 denotes Mumbai branch
5 denotes Defence Marketing Kota
6 denotes Marketing Co-ordination Kota
7 denotes Jaipur branch
3 = The third digit specify the order is for the retail order or spare items order.
1 denotes retail supply
2 denotes spare items supply
07 = This digit shown the year of the receiving purchase order. For financial year
2007-2008, 07 is used.
005 = This number denotes order processing file number.
7. Kota Marketing Co-ordination makes production programme and sent to production
planning and control :
43

44. After receiving purchase order Mktg. Co-ordination Kota, sent MDS and CDS to
production planning control department on online computer system.
There is an online system for controlling the manufacturing process. So a production
programme is made on online system which is received by PPC Department
8. PPC makes Material purchase Requisition to purchase department :
After receiving the production programme from marketing co-ordination the
production planning and control department checks the items that are not available in
stock. Then PPC make MPR for not available items and sends to the purchases
department for purchasing the required material. This is also done in online system
using PPC module.
9. Purchase department floats enquiry to its vendors :
After receiving MPR from PPC Department the purchase department floats enquiry to
its vendors for the supply of material.
10. Receiving Quotation :
After floating enquiry the purchase receives quotations from various suppliers and
processes it.
11. Techno commercial discussion :
After receiving quotations techno commercial discussions are done by purchase
department.
12. Selected lowest price technically accepted offer :
After techno commercial discussion the purchase department selects the offer which
is suitable according to the technical specifications and prices.
13. Function of PPC Department :
After receipt of all material required to manufacture the product, PPC Department
makes Production Programme to Production shop and gives the Material Withdrawal
Voucher (MWV) to production and production shop gives MWV to stores and gets all
material for making product.
44

45. 14. Product Manufacturing :
After receiving all components from store the production shop starts its
manufacturing process.
15. Quality Assurance Department :
After manufacturing the items the production shop offers it to quality assurance
department for checking the manufactured items as per specification of purchase
order.
Quality Assurance checks the items and if it found OK they issue a quality tag
number and if the item is not found OK then the QA Deptt. returns the item to Product
Mgf. Department for rectification as suggested by the QA Department. The
production deptt. after rectification, offers the product back to QA deptt.
16. Gives Quality Assurance Tag :
When the Quality Assurance Department Satisfied for the quality of the manufactured
item then it gives QA Tag to the manufactured item. If customer inspection is
required then production Department informs to marketing co-ordination for calling
the customer for inspection.
17. Product finishing and makes production Credit Voucher :
After QA certification production department finishes the product and makes
production credit voucher document in on line computer system.
45

46. 18. Deposit in Finished goods store through PCV :
After preparing Production Credit Voucher all the finished goods are deposited in FG
store through PCV.
19. Inform to Marketing Co-ordination Department :
When the Finished product is deposited in store the store department informs to mktg.
coordination deptt. for giving challan.
20. Mktg. Gives challan to finished goods store :
When the clearance information received by marketing department, it prepares the
challan giving all specifications of materials and mention all commercial terms in the
challan.
21. Finished Goods stores gives material for packing and Despatch :
After receiving the delivery challan, FG store issues the material to packing
department for packing the material and to despatch them.
22. Dispatch the material and gives all documents to Billing Department :
When all the documents i.e. delivery challan, packing list, excise gate pass, copy of
Railway Receipt/Goods Receipt Voucher etc. are available it is send to Billing Deptt.
for raising invoices on customers.
46

47. Then billing department raised the bills as per delivery challan and send all
documents to marketing co-ordination department.
23. Marketing Department sent bills to customer/its banker for collection of
payment :
When bills copies is received by Mktg. Co-ordination it is sent to customer/its banker
/ branches office for collection of payment as per commercial terms and conditions, of
the purchase order.
47

48. PURCHASE DEPARTMENT
All material is purchased by purchase department in I.L. When company receives
order from customer Kota Marketing co-ordination makes production programme and sent to
Production Planning and Control (PPC). PPC makes Material Purchase Requirement and
sends to Purchase Department for purchasing the required material.
In this way procurement action is taken by the purchase department of the
company.
Purchase department is divided into two parts –
Purchase Department
Indigenous Purchase Import Purchase
1. Indigenous Purchase : When purchase made from within the country for fulfilling
the order it is known as indigenous purchase.
2. Import Purchase : When purchase made from outside the country for fulfilling the
order which the company receives it is known as import purchase.
PROCEDURE OF INDIGENEOUS PRUCHASE
Analysis of Existing Procedure of store Accounting :
1. Procurement division on completion of purchase procedure (formalities) place the
purchase order on supplier and after entering P.O. details in online ERP System, a
copy of P.O. is sent to the store accounts. (a copy of P.O. format is enclosed). The
copy of P.O. is kept in particular series in respective P.O. file in store accounts.
2. According to the payment terms of purchase order, if advance payment is to be made
to supplier, than procurement division after entering the required details in online
ERP system in respect of payment, IRL is prepared and is sent along with
Performa/confirm invoice to store accounts for further action. (a copy of IRL is
enclosed).
48

49. 3. While preparing the payment voucher, all the terms & condition of P.O. is verified
with the PI/Confirm Invoice and with the IRL. After verification of the PO terms, the
payment particulars are recorded in purchase order as well as in supplier’s advance
register (manually). Format of advance register is enclosed and thereafter payment
voucher is prepared in online ERP System and is sent to cash section for preparation
of cheque/DD and controlling the voucher in online system. (format of payment
voucher is enclosed)
49

50. Where the payment to supplier is to be release through Letter of Credit, in such cases,
a request for LC opening is sent by procurement to store accounts and LC is opened in
bank accordingly. Either the payment is to the supplier is released through bank on
retirement of LC documents from bank or on due date, it depends on the nature of LC
(I.E. sight or usance LC). LC opening, payment and retirement of dispatch details
from the documents retired from bank, are recorded in the LC register. (LC register
format is enclosed).
4. When input material is received in IC&S Store, various input details are entered in
material module in online system, then receipt voucher and CENVAT voucher (D3) is
prepared. Some samples of input material is sent to QA, after approving the quality,
the samples are returned to the IC&S store, thereafter R.V. is controlled in IC&S store
and the copy of the same is sent to the store accounts (A copy of RV is enclosed).
After verification of P.O. terms, the input material details are recorded in P.O. as well
as in supplier is advance register and thereafter purchase voucher (RV voucher) as
well as payment voucher (if payment is due) is prepared in online system and both the
voucher are sent to book section and cash section respectively of their needful action.
5. A statement of completing items purchased, containing the input details is prepared
periodically by procurement/mktg. Unit/comm. Unit (if PO series is pertaining to KU)
and is sent to store Group-I (if invoicing of subject item is done by billing section)
and to the store accounts respectively. Further (despatch) sale particulars of the input
is incorporated in the statement of completing items and is sent to store accounts.
After verification of input details from the PO, necessary details are recorded in PO
and voucher for consumption and suppliers account are prepared for onward sending
the same to book section. Where the invoicing of completing items is done by other
units as stated above and the PO is placed in KU series, then store accounts sends the
fund/other transfer advice to the respect unit.
6. When input material bought for manufacturing has rejected at shop, then QAD form
containing the information in respect of rejection of the input, is prepared in nine
copies by QA department and a copy of the same is sent to the store accounts, based
on the information containing in the QAD, store accounts debits the suppliers account
and credit the consumption of indg. material other than W.O. account. (format of
50

51. QAD is enclosed). When replacement/refund is received, then suppliers account is
credited accordingly.
7. Sale tax forms are issued in the name of suppliers (in case of inter state sale only) on
receipt of their periodical statement of material and delivered the same to
procurement. The S.T. forms are issued after reconciliation of suppliers statement
with our sub-ledger and clearance (outstanding) debit balance lying in suppliers
account.
51

52. Chart No. 5
Imports Department
Material purchase request (Indent)
Foreign purchase dept.
Quotation from foreign supplier
Quotation from foreign supplier
Technical and Financial Adjunctions
Technical and Financial Adjunctions
Financial bid vetting of Technically Ok suppliers
Financial bid vetting of Technically Ok suppliers
Purchase Proposal Vetting
Purchase Order Vetting
Purchase Order Placed
Payment
Advance Sight draft
payment
A
Advance Letter of Sight draft Direct
payment credit payment
52

53. A
Bank confirmation
Foreign Supplier
Documents Materials
Bank Material air/ship
Custom
Documents
Bill of
Kota Entry FRV
Destination (Mumbai/Delhi)
Foreign
Rejected Purchase Dispatch to corresponding unit
Material
Dept.
GR waiver Rejected
request Quality check
Approved
Holding Stock
FRV
Pricing Shop
Production
53

54. Import Department of Instrumentation Ltd.
Product planning dept. decides for a product to be manufactured. They list out
the raw materials needed and the request for material purchase is sent to purchase
dept. In case the raw material or components are to be imported the procedure is as
follows:
Procurement
1. Material purchase request comes from indenter.
2. A public notification in media like newspapers is given inviting tenders from
suppliers as per mentioned specification. The Tenders can be of three types:
Open tender : Any supplier fulfilling specified conditions may apply.
Limited tender : When only limited suppliers are there. This is the most
common type with IL.
Single source : When there is only one supplier who is in accordance with our
need. Sometimes we receive quotations from only one supplier then in such a
case it comes a single source tender.
3. Tenders received are opened
4. A comparative statement is prepared. The various quotations are compared with each
other in terms of price, quality, period of delivery, basic rate, loading rate, transport
cost, compatibility, etc. and the best are marked as L1, L2, and L3 and so on.
5. The most reasonable party is negotiated with for deciding payment mode, transport
medium and other related areas.
6. Order is then placed.
PAYMENT METHODS
This involves a multi stage process. First of all a material purchase request come from
the purchase dept. to foreign purchase deptt. The deptt. invites various quotations from
foreign suppliers and the best one is selected. A purchase order is placed accordingly.
The mode of payment is decided with the supplier. It can be done in the following
ways:
54

55. # Advance Payment
# Letter of Credit
# Sight Draft
LETTER OF CREDIT
Letter of credit (L/C) is a commercial letter of credit opened for imports of goods by a
banker at the instance of his importer customer in favour of overseas seller.
A L/C may be commercial or non-commercial one. When it relates to a mercantile
transactions, buying and selling of goods, it is called a commercial letter of credit, when it
does not relate to any mercantile transaction, but only conveys an order of the opening banker
to his overseas correspondent to pay to third party named in the order within the specified
period of time against draft drawn upon him by that party up to stated amount, it is non-
commercial letter of credit.
This is the most common mode of payment.
55

56. Advance payment
This is done by way of demand draft or telegraphic transfer (now a day’s transfer
through SWIFT system). Method is usually used for dealings involving small amounts and
with known parties where delivery period of goods is short. This reduces the delays in getting
the materials due to letter formalities. This also saved the bank charges paid to foreign banks
which are usually quite high.
SIGHT DRAFT
This method is rarely used. When the formalities of method of payment are completed
the foreign supplier dispatches the good by air/sea route to Delhi/Mumbai where they are
received and forwarded to the concerned unit. Meanwhile the payment is done within the
period as specified in the contract which can be up to 120 days. This can be called as L/C at
sight.
Insurance
This is a kind of security against losses via fire, theft and flood. In the words of
Justice Tindall, “Insurance is a contract in which a of sum of money is paid to the assured as
consideration of insurer’s incurring the risk of paying a large sum upon a given contingency”.
Insurance is done for:
Inward indigenous
Imports
Outward dispatches
56

57. RESEARCH METHODOLOGY
DEFINITION OF RESEARCH METHODOLOGY & DESIGN
Research study will be based on collection of primary data as well as secondary.
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. The study of research
methodology gives the student the necessary training in gathering material and arranging
them.
“Research Comprises defining and redefining problems, formulasting hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
reaching conclusions; and atlast carefully testing the conclusions to determine whether they
fit the formulating hypothesis”.
-Clifford Woody
Research is an academic activity and as such the term should be used in technical
sense. Research is the systematic approach concerning, generalization & formulation of
theory.
RESEARCH DESIGN
It is an exploratory research design.
studies are also termed as formulative research studies. The main purpose of such
studies is that of formulating a problem for more precise investigation or of developing the
working hypothesis from an operational point of view. The major emphasis in such studies is
on the discovery of ideas and insights. As such the research design appropriate for such
studies must be flexible enough to provide opportunity for considering different aspects of a
problem under study.
57

58. DATA COLLECTION
The task of data collection begins after are research problem has been defined and
research design/plan chalked out. While deciding about the method of data collection to be
used for the study, the researcher should keeps in mind two types of data
(a) Primary Data
(b) Secondary Data
Collection of Primary Data
The Primary data are those which are collected afresh and for the first time. Primary
data will be collected by researches by questionnaire, observation, interviewing the executive
engaged in formulating as well as implementation of marketing procedure and its accounting,
for the purpose, technique of satisfied random sample will be used and a sample of 15
employees will be selected randomly. Moreover the researcher will also interview the
management and executive, looking after the marketing and store accounting in IL, Kota. in
my research I have opted questionnaire method which was filled by marketing department
and procurement division.
The researcher will also make on the spot study by using the observation technique of
data collection.
COLLECTION OF SECONDARY DATA
The secondary data are those which have already been collected by someone else and
which have already been passed through statistical process.
For collecting secondary data the researcher has taken the help of published
report/information of IL Accounts and Balance Sheet, Newspaper, Periodicals Journals and
Magazines etc. related to this study. After collecting the data by primary as well as secondary
sources the researcher has classifed, tabulate and interpret the same by using the various
statistical tools and techniques such as mean, mode, median, standard deviation, correlation
etc.
58

59. TYPE OF SAMPLING
Simple random sampling technique was used.
SAMPLE SIZE
While preparing the project report I will take the response to certain questionnaire from IL
employees. The sample of 15 employees has selected randomly.
59

60. DATA INTERPRETATION
Data from Primary Resources
(A) WHICH TYPE OF PRODUCTS ARE MANUFACTURED BY I.L. :
PRODUCTS
control panel
telecom exchange
gas analyser
all of these
INTERPRETATION : ALL THE ABOVE PRODUCTS ARE MANUFATURED BY I.L.
60

61. (B) HOW IS THE DEMAND OF I.L. PRODUCTS IN THE MARKET :
DEMAND IN %
11
MODERATE
45
EXCELLENT
29
LESS
VERY LESS
15
INTERPRETATION :FROM THE ABOVE CHART WE CAME TO KNOW THAT THE
DEMAND OF I.L. PRODUCTS IS
MODERATE = 45%
EXCELLENT= 15%
LESS= 29%
VERY LESS=11%
61

62. (C)WHAT IS THE MARKET POSITION OF I.L.
MARKET POSITION
2
15
GOOD
38
MODERATE
POOR
CAN’T SAY
45
INTERPRETATION :FROM THE ABOVE PIE CHART WE CAME TO KNOW THAT
MARKET POSITION OF I.L.
GOOD = 15%
MODERATE = 45%
POOR= 38%
CAN’T SAY= 2%
62

63. (D) Quality of Material used in Production in I.L.
Quality of Material Respondents Response
High 80%
Better 14%
Moderate 6%
Low 0%
Respondents response on the quality of material used
0%
6%
14%
High
Better
Moderate
Low
80%
INTERPRETATION : From this we can know that the material being used is of high
quality and only in some rare cases they go for moderate and better one but never for the low
quality material. This shows that the company pays attention to the quality of the material
also.
63

64. (E) Price level at which the materials are procured
Level of Price Respondents Response
High 33
Better 53
Moderate 14
Low 0
Price level at which the material is procured
53
60
50
40 33
30
14
20
10 0
-
High Better Moderate Low
INTERPRETATION : From this data we can interpret that the price at which the material is
being procured is better. So its clear that purchasing is made in economical way. By this they
can have high quality material at better and moderate price so it’s a smart purchasing.
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65. (F) Sources from which the material is purchased in I.L.
Sources Respondents Response
Local 0
Indigenous 27
Import 13
Import & Indigenous 7
All 53
Respondents response against the source from where the Material is Procured
60
53
50
40
30 27
20
13
10 7
0
0
Local Indigenous Import Import & All
Indigenous
s
INTERPRETATION :
By this can say that company applies all the sources in procuring the raw material. As
it can be seen that it gives more importance to the Import & indigenous purchase only. So by
this we can interpret that company works globally. But is increasing there expenditure on
material and finally decreasing their profit margin.
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66. (G) Which mode of payment is adopted by the company in Purchase/Sale?
Types of Payment Respondents Response
Letter of Credit of Sight 13%
Advance 7%
All 80%
Mode of payment used for Purchase / Sale
80%
7% 13%
Letter of Credit or Sight
Advance
All
INTERPRETATION : By this we can interpret that company uses all the mode of payments
while purchasing and sale. But most of the trade is done through Letter of Credit (L/C) or
sight payment as the graph shows. So by this we can say that most of the trade outside the
country.
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67. RECOMMENDATIONS
After analyzing the whole marketing procedure in I.L. following suggestion can be
summarized –
* Steps should be taken to train the employees in training institutes or calling training
institutes in Instrumentation Ltd.
* Marketing personnels should visit potential customer and appraise them about its
product range and study their requirements.
* Incentive schemes should be provided to create interest in oneself to capture more
orders.
* Seminar/display of products/proper advertisements to educate customers.
* They must try to maintain the good relation with the supplier and try to have relations
with new suppliers too.
* They must try to have a smart purchasing of raw material imported as they purchase
goods at a higher rate, so they must try to check for next supplier.
* The payment must be paid at said time so that there can be healthy relations among
the traders.
* There must be a proper flow of communication which must be adopted as many time
because by poor communication company need face loss and loose the goodwill in the
market.
* People in an organization must try to cooperate with each other in attaining the goal.
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68. 68

69. LIMITATIONS OF THE STUDY
The study of “marketing procedure and procurement action” is based on the data and
information available only.
- There was a Limitation of time.
- There was Inadequacy of Resources.
- There was Inadequacy of Literature.
- Website not up to date so secondry data collection was difficult.
- Area was restricted due to which study was restricted.
- Working method is a bit traditional..
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70. CONCLUSION
Proper marketing is very necessary for any organization to have a good relation with
its suppliers and customers. It is indispensable to managers and workers are doing work with
cooperation. Healthy industrial relation is a backbone of industries. Trade union is also
essential part of organization. It plays role of mediator between management and workers
participation in management is essential for proper management in any industry. Following
points are specially noted :
* Low awareness in use of technology- The employees are unable to full exploit the
use of new technology like E-mail, Electronic tenders, latest marketing techniques
etc.
* Low awareness on competitors information- During my project work researcher
observed that the marketing unit was not having adequate market intelligence and
there was no well established procedure for gathering competitors information.
* The company is overly dependence on landline orders in telecom field- Major
portion of the order booking is from BSNL land line exchange, which is reducing.
* No customer oriented approach – customer sends enquiry of their own &
Instrumentation Ltd. quotes but they do not approach customer make them aware of
our products.
* Product Information – No seminar, advertisement etc. to make the customer to
Know its product range.
* No Business Promotion activities is run by IL to boost up sales.
* Working environment is healthy, cordial and co-operative.
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71. * All contents and result show that good and harmonious industrial relation and
effective, efficient workers participation is great essential factor of any company’s
prosperity.
* There was no any strike and lockout in I.L. history.
* Insurance claims do not get cleared at right time.
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72. BIBLIOGRAPHY
1. Philip Kotler – Keller , Koshy and Jha “Marketing Management”, 13th Edition
2009,Pearson publications.
2. Annual Reports of Instrumentation Ltd. 2004-05 and 2005-06.
3. Kothari C.R. “Research Methodology” (Methods Techniques) 2nd revised Edition,
2004, New Age International Publishers, New Delhi.
Webliography :
1. www.ilkota.in
2. www.google.com
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73. QUESTIONNAIRE
This questionnaire is being circulated for surveying the extent of information the
employees of Instrumentation Ltd. have about their company, their level of satisfaction and
the opinion they have about IL. All information and details of the survey will be kept
confidential only consolidated result will be used for MBA project report.
1. Employee’s Name : _____________________
2. Organisation Name : _____________________
3. Department of the Employee : _____________________
4. Designation : _____________________
Q.1 Which type of products are manufactured by I.L.?
(a) Control Panels
(b) Telecom Exchange
(c) Gas Analyser
(d) All of these
Q.2 How is the demand of I.L. products in the market?
(a) Moderate
(b) Excellent
(c) Less
(d) Very Less
Q.3 What is the market position of I.L.?
(a) Good
(b) Moderate
(c) Poor
(c) Can’t say
Q.5 What is the quality of material used in production ?
(a) High Quality
(b) Moderate Quality
(c) Better quality
(d) Low Quality
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74. Q.6 What about the price level of material procured for production?
(a) Very price competitive
(b) High priced
(c) No concern about price
(d) Don’t know
Q.7 From which source majority of the material is purchased for production?
(a) Indigenous all ones India
(b) Imported
(c) Within state
(d) All of these
Q.8 Which mode of payment is mostly used for purchase ?
(a) Advance payment
(b) Letter of credit or sight
(c) All of these
Q.9 Are you satisfied with the marketing procedure adopted in I.L.? Say yes or no. if no
please give comments in 20 words.
_________________________________________________
Q.10 Are you satisfied with the company’s production and turnover?
(a) Yes
(b) No
(c) Yes, but need for further increase
(d) Can’t say
Q.11 Please write in 20 words your ideas/suggestions for improving the performance of the
company.
_________________________________________________
74