kirloskar

1. KEC Unit 2. HUBLI
INTRODUCTION
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FATIMA DEGREE COLLEGE (BBA), HUBLI

2. KEC Unit 2. HUBLI
EXECUTIVE SUMMARY
Working capital management is one of the most important aspects of financial management.
Every company requires management of its working capital to run its business smoothly and
successfully. Proper management of working capital is necessary to maintain both liquidity and
profitability of a company .The working capital management involves deciding upon the amount
and the composition of current assests and how to finance these assests.working capital
management has become an important tool to judge the performance of a business.
Kirloskar electric company limited unit 2 was established in 1976 and ever since has maintained
its undisputed position as a market leader.
The key benefit of the study is to get knowledge of correct and appropriate measures of
evaluating the working capital management and the application of different outcomes regarding
the ratio relating to working capital in the company. And the different measures to be taken for
the proper outcomes. The study also helps in finding out the capital management patterns in the
management of cash, management of accounts receivables, and the management of the
inventories of the company and the different aspects involved in the working capital
management of kirloskar electric company limited unit 2.,.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

3. KEC Unit 2. HUBLI
INTRODUCTION
I studied the Unit 2nd of KEC at Hubli it would be better if we are well informed about the
Kirloskar group of industry.
It was establishment of Kirloskar group of co’s made a very good significant change in the
history of Indian electric industry , Even Mr.Laxman Rao Kirloskar founder of the group
probably would not have dreamt about the group would grow to this large extent in such a
fashion .
Founder Mr.Laxman Rao kirloskar strongly believe that ‘’Co’s progress was determined by the
integration of man and his intellect with technological growth and environment ‘’. His belief
paid him of in such a manner that the group ranks in the top 20 industries in India.
The very first product of Kirloskar was the ‘’Iron plough “which was must ahead of its time. The
design being done with the customer in mind Kirloskar become to be known as the other name
for the product.
Since from its first product the group showed its commitment to continues innovation , quality ,
continuing technology and advancement the group still has the same as its ‘’Golden Rule “ .
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FATIMA DEGREE COLLEGE (BBA), HUBLI

4. KEC Unit 2. HUBLI
RESEARCH AND
METHODOLOGY
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FATIMA DEGREE COLLEGE (BBA), HUBLI

5. KEC Unit 2. HUBLI
RESEARCH METHODOLOGY
Methodology aims to the present a clear idea of the research procedure used in this study, since
the valve of systematic and scientific research lies in Methodology the goals should be reached
with accuracy using least amt of time.
The method employed in the budget for collection and analysis of the information is the primary
source and secondary.
Primary:-
• Observation method :-
By Observation the various steps in the work of the dept the data collected and
also glancing over the task performed by the employees during the working hours .
Secondary source:-
Magazines, company profiles, Reports, etc.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

6. KEC Unit 2. HUBLI
MILESTONES IN THE HISTORY OF KEC
• 1946 ---- KEC established at Bangalore.
• 1948 ---- A new era opens for Indian K.E.C produces the country’s very first AC
motors
• 1954 ---- Impatient for progress, the company gets into product diversification producing
its first transformers.
• 1956 ---- First transformer manufactured.
• 1958 --- A critical power situation inspires production of the country’s first
transformers.
• 1963 ---- The patient of breakdown continues. DC motors and DC generators roll off the
assembly line.
• 1965 ---- Market demand increases. India’s first motorized gear unit joins the K.E.C
product range.
• 1966 ---- Intensive research and development sets the pace for production of the first
induction heating equipment.
• 1973 ---- First oversees office at Malaysia.
• 1976 ---- Office at Nairobi established
• 1982 ---- New collaborations. Better products. Thyristor, Converters, made in
collaboration with Thorn EMI, U.K.
• 1987 ---- Introduction of CNC systems and factory automation.
• 1989 ---- More collaboration. More products. With Fuji of Japan for investors and with
Toshiba of Japan for UPS
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FATIMA DEGREE COLLEGE (BBA), HUBLI

7. KEC Unit 2. HUBLI
• 1991 ----Toyo Denki collaboration for motors and generators up to 10MW/ MVA.
Production of technologically advanced large DC motors and large AC machines in
collaboration with AEG Daimler Benz of Germany up to 20MW
• 1992 ---- The company starts production of Hi- Tech CRT based CNC systems.
• 1993 ---- Kirloskar Electric becomes the first company in India to receive ISO 9001
certification for its entire product range and for all its manufacturing units.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

8. KEC Unit 2. HUBLI
1995 ---- Took over Voltas Transformer and started manufacturing plant at Tumkur for
Manufacturing units
• 1996 ---- Celebrated Golden jubilee and started manufacture of wind turbine.
• 2001 ---- Company restructure.
• 2002 ---- First test lab was started at Tumkur.
• 2003 ---- Received NVLAP certificate test lab.
• 2004 ---- Customer Excellence Certificate.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

9. KEC Unit 2. HUBLI
• K.E.C. UNITS
Units Place Products
Unit - 1 Bangalore AC motors, AC generators, motorized gear units.
Unit – 2 Hubli AC motors, AC generators, motorized gear units.
Unit – 3 Peenya DC motors, generators, traction.
Recently
Closed
Unit -4 Mysore • Industrial electronic group- thyristor devices,
static invertors, UPS systems.
• Factory automation group- digital readouts,
CNC systems, Servo drives and induction
heaters.
Unit – 5 Bangalore Transformers.
Recently
Closed
Unit – 6 Pune Automation electric equipments, small range induction
motors and alternators up to 5 HP.
Unit – 7 Tumkur Stampings, Die cast rotors/ bodies and coils.
Unit – 8 Pune Cast resin, transformers, and oil filled transformers.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

10. KEC Unit 2. HUBLI
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FATIMA DEGREE COLLEGE (BBA), HUBLI

11. KEC Unit 2. HUBLI
ORGANISATION SET UP OF KEC
Board of Directors manages KEC Unit II. Mr. Vijay Kirloskar is the Managing Director and
Chairman. Under the managing director, there is an Executive Vice- President. A chief
executive manages each of this unit.
BOARD OF DIRECTORS
Vijay Kirloskar : Chairman and Managing Director
Agarwal. S.N : Director
Anil Kumar Bhandari : Director
Sarosh. J. Ghandy : Director
Mythili BAL Subramanian : IDBI Nominee
Ramesh. D. Damle : LIC Nominee
Malik. P.S : Dy. Managing Director
Venkatesh Murthy. D.R : Director Sales & Marketing
Company Secretary : P. Y. Mahajan
Auditors : B.K.Ramdhyani & co. Bangalore
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FATIMA DEGREE COLLEGE (BBA), HUBLI

12. KEC Unit 2. HUBLI
BANKERS
• Bank of Baroda
• Bank of India
• State bank of India
• State bank of Mysore
• State bank of Travancore
• Standard Chartered Bank
• The Hong Kong & Shanghai Banking Corp.
REGISTERED OFFICE
Industrial Suburb, Rajajinagar
Bangalore – 560010
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13. KEC Unit 2. HUBLI
FACTORIES
Belvadi Industrial Area, Mysore
• Gokul Road, Hubli
• Hirehalli, Tumkur.
QUALITY POLICY
The quality price of KEC shall be to design, manufacture and market at competitive
prices, products of such quality, which results in customer satisfaction, quality reputation and
market leadership.
MISSION
• To remain a leading producer of electrical technology products in India.
• To continuously grow in our business and become a significant player in the world
market.
• To maximize return on investment.
• To achieve international levels of excellence in technology and quality.
VALUES
• Products of highest technology and quality.
• Customer orientation
• Teamwork among our people.
• Profits for growth
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14. KEC Unit 2. HUBLI
GUIDING PRINCIPLES
• Innovate continuously to excel in design and manufacturing.
• Development products required by market.
• Manufacture products of highest quality
• Focus on customer in all actions.
• Respond promptly to customer needs.
• Deliver supplies on time every time.
• Treat each other with trust and respect to build a team.
• Develop people by training and delegation.
• Adopt process-oriented thinking, continuous improvement, and management by facts
priority.
• Reduce costs constantly to remain competitive.
• Earn enough profits to fund growth and diversification.
• Offer goods and services at competitive prices.
• Look upon dealers, suppliers and business associates as partners.
• Maintain safe, clean and healthy environment.
• Conduct business in a socially responsible manner.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

15. KEC Unit 2. HUBLI
HOD’S OF KIRLOSKAR ELECTRIC CO.LIMITED,
UNIT-II
CEO - K.S.S.PANIKAR
PERSONNEL - U.PARAMESHWARA
PRODUCTION - A.B.JOSHI (SHOP III),
- D.S.WODEYAR (SHOP III),
FINANCE - K.SHRIDHAR
MARKETING - V.RAMPRASAD
ENGINEERING - D.A.DESAI
MMD - ASHOK KADAKOLI
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FATIMA DEGREE COLLEGE (BBA), HUBLI

16. KEC Unit 2. HUBLI
MED & MSD - S.V.PUROHIT
CEN.PLANNING - A.B.JOSHI
DEPARTMENT STUDY
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FATIMA DEGREE COLLEGE (BBA), HUBLI

17. KEC Unit 2. HUBLI
ORGANISATION STRUCTURE OF KEC UNIT II
Personnel Department
(Senior Manager)
HUBLI
Chief Executive
Deputy General Manager
Product Finance Enginee Quality Marketi M.M.D Stores Central
ion Depart ring Assuran ng Plannin
(Assista (junior
Depart ment Depart ce g
(Deputy nt Manag
ment ment Depart
(Senior Manag Manag er) (Assista
Person(Senior Manager)
ment
(Senior er) er) nt
nel Manager) Manager) (Senior
Manag
Manager)
Depart er)
ment
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FATIMA DEGREE COLLEGE (BBA), HUBLI

18. KEC Unit 2. HUBLI
MANPOWER IN KEC UNIT-II
AS on 01-05-2007
Table: 1
Human Resource Total Members
Daily rated employees (DRE’s) From grade 432
1 to 8
Monthly rated employees (MRE’s) From 45
grade 1 to 7
Officers, Engineers and above From grade 85
8 to 16
Total 562
Besides these permanent employees, around 81 trainees are recruited and contract Labour are
hired only for some specific purposes and in never employed in production or feeder shops.
Officer’s cadre is divided into 2 categories.
• Junior officers from the grade from 5 to 7
• Junior officer 1: Grade 5
• Junior officer 2: Grade 6
• Junior officer 3: Grade 7
2. Senior officers from the grade from 8 to 9
Officer: Grade 8
Senior Officer: Grade 9
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19. KEC Unit 2. HUBLI
The manager cadre is classified as follows from grade 10 to 16
Assistant Manager - Grade 10
Deputy Manager - Grade 11
Manager - Grade 12
Deputy Senior Manager - Grade 13
Senior manager - Grade 14
Deputy General Manager - Grade 15
General Manager - Grade 16
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FATIMA DEGREE COLLEGE (BBA), HUBLI

20. KEC Unit 2. HUBLI
PRODUCT PROFILE
AC Generator AC motor
`
DC Motor Traction Equipment
We design and manufacture our products according to the standards of :
• ISO (International Organization for Standardization)
• IEC (International Electro technical Commission)
• BIS (Bureau of Indian Standards)
• BSI (British Standards Institution)
• JEM(Japan Electrical Manufactures Association)
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FATIMA DEGREE COLLEGE (BBA), HUBLI

21. KEC Unit 2. HUBLI
PERSONNEL DEPARTMENT
K.E.C, company recognizes its employees as its most important asset for its continued growth.
Human resources management in Kirloskar Electric Company shall striver to ensure continuous
organizational growth by nurturing the strengths of its employees and providing the environment
and opportunity for every individual to rise to his/her highest potential, identity and achieve
his/her personal goal within the framework of organizational, social and natural objectives. To
achieve this following sections are formed to perform the various functions including, Positive
Motivation, Preparation and maintenance of quality plans with aid of systems, procedures and
work instructions published collectively in quality manuals.
Scope: Personnel Department is applicable to personal welfare safety and security.
Responsibility of Personnel Department:
Implementation and maintenance of various functions is the responsibilities of the Head of
Department (HOD) with appropriate duties assigned to section in charges (SIC) and staff.
Functions:
The Main functions of Personnel Department are:
HOD-PERSONAL AND INDUSTRIAL RELATIONS:
• To ensure that harmonious relations exists between workers and management
• To ensure safe working conditions and to provide safety equipments.
• To Co-ordinate security and vigilance activities
• Manpower planning accountability.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

22. KEC Unit 2. HUBLI
ORGANISATIONAL CHART OF PERSONNEL DEPARTMENT
HOD
SIC TRAINING DEPARTMENT SECURITY WELFARE IND.REL
IN CHARGE ASSISTANT OFFICER OFFICER OFFICER
CANTEEN AMBULANCE TIME OFFICE
ROOM I.C
MARKETING DEPARTMENT
Success of any product totally depends on HO it is marked and positioned din the market.
Marketing department is one of the important functional divisions of KEC UNIT-II, which is
basically, identifies and meets the needs of customers profitably. The people in the marketing
department are responsible for the growth of a business concern because they come in direct
contact with the customers who now are considered as King of the market as it is a buyer’s
market and no more a seller’s market.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

23. KEC Unit 2. HUBLI
As marketing departments basic principle is to take care of the customers to achieve way
they have divided their department in to their sections such as:
• Marketing
• Customer Service
• Communication
Marketing is further having its subgroups i.e. technical group, which does the job of tendering or
equally handling Execution, is planning group.
The network of marketing department has all over India at 28 branches known as sales
office/branches.
The function of this division in K.E.C UNIT-II starts to determine the needs of the customers
their documents concurrently then accurately to communicate then to various departments.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

24. KEC Unit 2. HUBLI
Marketing:-
When a branch office in any part of its network receives an order in case of special product (i.e.
as per customer requirements) it sends an order acceptance copy i.e. duly verified by the sales
engineering of that branch to the tendering group where this OA copy is examined and sent to
planning department and further forwarded engineering department for design and development
of special product who prepares its engineering
Specification and sends it to the purchase department if any new or additional components are
regard to the production department. The marketing department based on the demand contacts
the materials management department issues materials on the amount and the type of material,
which required. Based on the amount required the department based on the demand contacts the
materials management department issued materials on the amount required the production
scheduling, routing and the like has to be carried out.
K.E.C UNIT-II is planning turnover is 100 crores for last year achieved to the 84 crore.
This planning for turnover is 110 crores.
AC-Generator Marketing:-
In case of AC-Generator the final customer is directly purchase through Manufacture of
Branch office or Dealer.
The O.E.M. (Original Equipment Manufacturer) who in turn places the purchase order to
the branch office, the order acceptance form along with desired specifications is studied.
Carefully in the marketing department and if found possible for production is immediately
informed to the O.E.M the information is also forwarded to the production units
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FATIMA DEGREE COLLEGE (BBA), HUBLI

25. KEC Unit 2. HUBLI
AC Motor Marketing:-
The customer decided the rating of a motor required and approaches to the dealer, the
dealer in turn acceptance and passes it on to the branch office which prepares an order
acceptance and passes to customers and another to the unit of the production otherwise customer
is directly contact through the marketing department.
The order acceptance is then separated into the one for standard products and other for special
products. The special products requirements have to be discussed with the engineering
department and then accepted.
CREDIT POLICY:
Generally K.E.C-II does not follow the policy. But sometimes the credit is issued to a
particular customer depending on the volume of the purchase, the type of a customer K.E.C
UNIT-II has a credit policy extending to a maximum of 30 days.
Objectives:
The objectives of marketing department are to achieve customer satisfaction with quality
products, price, and delivery in time, and presale service after sale service, maintain brand image
and earn profit for further diversification.
COMPETITIORS
• Organized sector
• BHEL
• ASEA
• Crompton Greaves Ltd.
• Bharat Bijli ltd.
• Asian Brawn Boweri Ltd (ABB Ltd.)
• General Electrical Company Ltd.
• Jyoti Ltd.
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FATIMA DEGREE COLLEGE (BBA), HUBLI

26. KEC Unit 2. HUBLI
Unorganized Sector:
• Mainly cottage industries.
Direct Customers.
• OEM’s (Original Equipment Manufacturer’s)
• OEA’s (Original Equipment Assembler’s)
• Government organization (Railway, Airports)
• Indian Defense
• Indian Railways
• Other Industries
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FATIMA DEGREE COLLEGE (BBA), HUBLI