Saurabh 13 PG DM 052

July 7, 2014 SUMMER INTERNSHIP REPORT- TATA CAPITAL LTD
SUMMER INTERNSHIP PROJECT

On
CONSUMER DURABLES SUMMER
DHAMAKA-
O P P O RT U N I T Y TO E X H I B I T R E A L
M A N A G E R I A L S K I L L S I N S T R AT E G I Z I N G ,
P L A N N I N G E N D TO E N D P R O D U C T D E L I V E RY
& E X E C U T I N G T H E S A M E I N A H I G H LY
COMPETITIVE ENVIRONMENTWITH
MEASURABLE INDICES
A REPORT
By
SAURABH KHURANA 13PGDM052
TATA CAPITAL LTD
A Report Submitted in Partial fulfillment of the requirements of PGDM program
International Management Institute

New Delhi 110016
7 July 2014
IMI New Delhi 1

INTERNATIONAL MANAGEMENT INSTITUTE

New Delhi
CERTIFICATE OF APPROVAL FOR SIP

This is to certify that Mr.Saurabh Khurana Roll number 13PGDM052 ,a student of IMI, has successfully
completed his/her Summer Internship Program project titled “CD Summer Dhamaka – Opportunity to
exhibit real managerial skills in strategizing, planning end to end product delivery & executing the same
in a highly competitive environment with measurable indexes” under my guidance during April – June,
2014.
His summer internship report is hereby approved as a certified study in management carried out and
presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post-
Graduate Diploma in Management for which it has been submitted.
It is understood that by this approval the undersigned do not necessarily endorse or approve any statement
made, opinion expressed or conclusion drawn therein but approve the Summer Internship Report only for
the purpose it is submitted.
Organizational Guide
Signature :
Name of Executive: Mr Nishant Jasapara

Designation: National Sales Manager, LAS and CD Loans
Address: Tata Capital Financial Services Limited

4th Floor, I Think Tecno campus
Bldg A, Off Pokharan Road no 2
Besides Yantra Park
Thane (W) 400 602
Telephone: 09029075305
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ACKNOWLEDGEMENT
I would take this opportunity to express my sincere gratitude to everyone who was involved
directly or indirectly, for their valuable assistance and guidance during my Summer Internship
Program.
I would like to thank Mr. Sanjit Dawar (Head - Business Loans & Consumer Durable Loans,
LAS Finance) and Mr. Nishant Jasapara (National Sales Manager - LAS & Consumer Durable
Loan) for putting their trust in me and giving me an opportunity to work in Consumer finance at
Tata Capital Ltd. I am thankful to them for their continuous support in grooming my skills set
and preparing me for the corporate world.
I am grateful to Mr. Shobhit Tyagi (Territory Sales Manager, CD-loans,Delhi) for his teachings
and constant encouragement from the beginning of my project. His continuous support and
guidance helped to overcome many obstacles at work.
I would also like to thank Prof. Umashankar Venkatesh, Faculty, IMI Delhi for his continuous
guidance and motivation which helped me to relate my work here with the concepts and also to
complete my project timely and in systematic manner.
I would also like to thank my entire team of Customer Representatives, as all of us have together
worked towards the common organizational objective, shared our experiences and aided each
other in times of need.
Saurabh Khurana
IMI New Delhi 3

EXECUTIVE SUMMARY
Tata Capital Ltd (TCL) is a finance company that fulfills the financial needs of retail and
institutional customers in India. It was established in 2007 as a wholly owned subsidiary of Tata
Sons and is registered with the Reserve Bank of India as a systemically important non-deposit
taking non-banking financial company (NBFC). TCL has multiple subsidiaries and my project is
in Consumer Durable Loans which falls under Consumer Finance and Advisory Business
(CFAB) unit of Tata Capital Financial Services Ltd (TCFSL) .
The objective of the study is to gain understanding of the Consumer Durable Loans market in
Delhi and work closely with the sales team to achieve the sales targets set by the company
thereby getting hands on experience in selling financial products. It includes gaining an
understanding of all the nuances related with every single step of CD Loan cycle, developing an
understanding of the issues faced by different stakeholders i.e. customers, CREs and the back
office operations team. The key deliverable is to help the company capitalize on the seasonal
opportunity of the summer season by maximizing sales on the allocated stores and ensuring that
the amount sourced is disbursed timely.
Initial two weeks of the internship were spent in understanding the policies, KYC (Know Your
Customer) documents and the processes of Consumer Durable Loan cycle. For the last six weeks
I was working a-kin to a Team Leader and handling the sales team at 5 croma stores across
Delhi-NCR. The prominent responsibilities are to ensure that the target assigned to each store is
met, the Loan files reach the regional branch on time with complete documentation, the files get
processed and disbursed on time and the Customer representative follows all the policies and
procedures to minimize default.
The methodology used to achieve these objectives involves personal interactions with various
managers, team leaders, CREs (Customer Relationship Executives) and manning the counters at
various stores to understand the process thoroughly. It also included observing the complete
back-end operations to understand the end to end process.
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The target achievement was more than 100% for the month of April and May. The disbursed
amount for the loans allocated to 5 stores grew at 39% from March to May. The delinquency
levels were less than the stipulated provisions.
I have carried out a research to map the perception and satisfaction of the Croma sale
representatives for TCFSL and the competing brand Bajaj Finserv, thereby finding the areas of
improvement. It was revealed that TCFSL needs to improve upon its Loan Origination System,
incentives for Croma employees and have lenient documentation requirements as compared to
present requirements.
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TABLE OF CONTENTS
CERTIFICATE OF APPROVAL FOR SIP 2
ACKNOWLEDGEMENT 3
EXECUTIVE SUMMARY 4
LIST OF FIGURES 8
LIST OF TABLES 9
LIST OF ABBREVIATIONS 10
LIST OF APPENDICES 11
1 INTRODUCTION 12
1.1 COMPANY INTRODUCTION 12
1.1.1 ORGANISATIONAL STRUCTURE 12
1.1.2 TCL’S OFFERINGS 13
1.1.3 TUSHMAN AND NADLER CONGRUENCE MODEL ANALYSIS 15
1.1.4 SWOT ANALYSIS OF TCL 18
1.2 LITERATURE REVIEW 20
1.2.1 CONSUMER DURABLE INDUSTRY IN INDIA 20
1.2.2 CONSUMER DURABLE LOANS 23
1.2.3 STAKEHOLDERS’ BENEFITS 24
1.2.4 MAJOR PLAYERS 24
1.2.5 MICHAEL PORTER’S STRUCTURAL ANALYSIS OF CONSUMER DURABLE LOAN INDUSTRY 25
1.3 TCFSL CONSUMER DURABLE LOANS 27
1.3.1 LOCATIONS 27
1.3.2 ELIGIBILITY CRITERIA 27
1.3.3 DOCUMENTS REQUIRED 28
1.3.4 SOURCING SURROGATES 28
1.3.5 TCFSL CD LOAN MARKET IN DELHI 29
1.4 RATIONALE OF RESEARCH 30
1.5 RESEARCH OBJECTIVES 30
1.6 RESEARCH QUESTIONS 31
2 IMPLEMENTATION METHODOLOGY 32
2.1 INITIAL UNDERSTANDING OF THE INDUSTRY, POLICIES AND PROCESSES 32
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2.2 BUILDING RAPPORT WITH THE CUSTOMER REPRESENTATIVES 33

2.3 TAKING CHARGE OF THE TEAM TO ACHIEVE THE ASSIGNED TARGETS 33
2.4 RISK MITIGATION AND CONTINIOUS PERFORMANCE MONITORING VIS-À-VIS COMPETITOR 33
2.5 IDENTIFY AREAS OF IMPROVEMENT THROUGH AN EMPERICAL STUDY 34
2.5.1 RESEARCH PROBLEM 34
2.5.2 SCOPE 34
2.5.3 RESEARCH OBJECTIVES 34
2.5.4 RESEARCH DESIGN 35
3 RESULTS 37
3.1 ANALYSIS 37
3.1.1 ACHIEVE THE TARGETS ASSIGNED FOR EACH STORE 37
3.1.2 RISK MITIGATION 39
3.1.3 COMPETITOR ANALYSIS AND MONITOR THE PERFORMANCE VIS-À-VIS COMPETITOR 40
3.1.4 MONITOR THE MOVEMENT OF FILE FROM SOURCING TO DISBURSAL 42
3.1.5 TO FIND OUT MAJOR AREAS OF IMPROVEMENT 43
3.2 ISSUES AND GAPS IDENTIFIED 46
3.3 LIMITATIONS OF THE STUDY 47
4 RECOMMENDATIONS 48
4.1 SHORT TERM RECOMMENDATIONS 48
4.2 LONG TERM STRATEGIC RECOMMENDATIONS 49
5 REFERENCES 50
6 APPENDIX 51
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LIST OF FIGURES
Fig. No. Description Page No.
1 TCL’S Organizational Structure 12
2 Size of the Indian Consumer Durables Industry 20
3 Shares of Global Middle Class Consumption,2020-2050 21
4 India’s Median Age vis-à-vis other countries 22
5 Growth of Disbursal amount over last 3 months 29
6 Implementation Methodology 32
7 Growth of Point of Sales of BFL over last 4 years 41
8 Loan Processing Cycle 42
9 Value of various parameter’s on which the CRE was judged 43
10 Satisfaction level of Croma employees with CREs 44
11 Inclination of Croma Employees to recommend TCFSL loan to customer 46
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LIST OF TABLES
Table No. Description Page No.
1 TCL’s offerings 13
2 Eligibility Criteria for Consumer Durable Loans 27
3 Store wise target for the month of April 38
4 Store wise target for the month of May 39
5 Store wise delinquency number for last 8 months 39
6 Penetration of TCFSL vis-à-vis BFL 42
7 Mean Value of various parameter’s on which the CRE was judged 43
8 Comparison of TCFSL vs BFL on various parameters 44
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LIST OF ABBREVIATIONS
Abbreviation Definition
TCL Tata Capital Ltd
TCFSL Tata Capital Financial Services Ltd
BFL Bajaj FinServ Lending
LOS Loan Origination System
CRE Customer Representative
KYC Know Your Customer
NBFC Non Banking Financial Corporation
RBI Reserve Bank Of India
SWOT Strengths, Weaknesses, Opportunities and Threats
CFAB Consumer Finance and Advisory Business
FY Financial Year
CAGR Compounded Annual Growth Rate
CD Consumer Durable
EMI Card Existing Member Identification Card
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LIST OF APPENDICES
S. No. Description Page No.
1 Questionnaire 51
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1 INTRODUCTION
1.1 COMPANY INTRODUCTION

Tata Capital Ltd (TCL) is a trusted and customer-centric, one-stop financial services provider
catering to the diverse needs of retail, corporate and institutional customers. It was established in
2007 as a wholly owned subsidiary of Tata Sons and is registered with the Reserve Bank of India
as a systemically important non-deposit taking non-banking financial company (NBFC). TCL is
headquartered in Mumbai and has registered offices of its subsidiaries in Singapore and London.
TCL has more than 100 branches spanning all critical markets in India. The essence of brand
Tata Capital is encapsulated in the brand proposition – ‘We only do what’s right for you'. The
proposition reflects company’s strong resolve to deliver financial solutions that are ‘right’ for our
customers and the society at large.
1.1.1 ORGANISATIONAL STRUCTURE

TCL has product division structure. The business units are formed on the basis of the product
like consumer finance, housing finance, commercial finance and these business units generally
work independent of each other. The support functions like Human Resource and marketing
support each of these business units. There are separate offices for each of the subsidiary that lies
within TCL. There are 8 subsidiaries under the holding company TCL.
Fig 1: TCL’s Organizational Structure
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1.1.2 TCL’S OFFERINGS

TCL’s offerings are as follows
Table 1 : TCL’s offerings
1. Commercial Finance
The Commercial Finance business helps small, medium and large corporate grow their business.
The range of offerings includes Term Loans, Working Capital Loans, Channel Finance,
Equipment Finance, Lease Rental Discounting, Bill Discounting, Letter of Credit and Bank
Guarantee. These services are offered through Tata Capital Financial Services Limited.
2. Investment Banking
The Investment banking business provides a range of services, including equity capital markets
transaction execution, underwriting, mergers, and acquisitions advisory, structured finance
advisory, private equity advisory and infrastructure advisory. These services are offered through
Tata Securities Limited.
3. Private Equity
Tata Capital acts as an Investment Manager to Private Equity Funds which identify and invest
into target companies with significant growth potential.
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4. Infrastructure Finance
The Infrastructure Finance business provides a range of services including Equipment Finance,
Project Finance, Equipment Rentals, Working Capital Loans, Bill Discounting/ Factoring,
Refinance, Top Up Loans and Loan Syndication. These services are offered through Tata Capital
Financial Services Limited.
5. Securities
Securities business offers both institutional and retail clients, products and services like Equity
Trading, IPOs, Financial Planning and Mutual Funds. These services are offered through Tata
Securities Limited.
6. Wealth Management
Wealth Management offers a range of Investment Advisory services and markets third party
investment products like Portfolio Management Services, Private Equity and Venture Capital
Funds, Structured Products, Mutual Funds, Fixed Deposits and Bonds. These services are offered
through Tata Capital Financial Services Limited.
7. Consumer Loans
Consumer Loans division offers a wide range of loans such as Home Loans (offered through
Tata Capital Housing Finance Limited), Auto Loans, Personal Loans, Business Loans, Education
Loans, Loans against Property, Loans against Shares and Consumer Durable loans offered
8. Credit Cards
Globally accepted Credit Card with the advantages of a rewarding Empower program, which is a
multi-brand loyalty program. Tata Card is the White Label Card issued, operated and serviced by
the State Bank of India with Tata Capital only marketing the card. These services are offered
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9. Travel & Forex
The various offerings under Travel include - Airline ticketing, Visa & passport facilitation,
booking hotel accommodation, Cars-hire and surface transport. The offerings under Forex
include - Travelers cheques, foreign currency notes, foreign currency denominated pre-paid
travel cards
10. Cleantech Finance
Tata Capital Cleantech Limited (TCCL) is a joint venture between Tata Capital Limited and
International Finance Corporation (IFC), a member of the World Bank Group. TCCL is a
focused initiative to assist, via financing and advisory services, companies that promote clean
technology.
My project is in Consumer Durable Loans which falls under Consumer Finance and Advisory
Business (CFAB) Unit of TCFSL. CFAB offers Home Loans, Auto Loans, Personal Loans,
Business Loans, Education Loans, Loan against Property, Loan against Shares, Consumer
Durable Loans, Two Wheeler Loans and Commercial Vehicle Loans
1.1.3TUSHMAN AND NADLER CONGRUENCE MODEL ANALYSIS

Tushman and Nadler congruence model is used for gap analysis by identifying where the
company stands today and where it wants to be. The model divides the business processes into
three groups-Input, Transformation and Output.
Input includes the environment the business operates in, resources and culture of the company.
Transformation includes the systems, the people and the tasks. And output may occur at system,
group or individual level. This model acts as a framework to help the analyst align various
factors of a company to respond effectively to the external environment and internal conditions.
The model is based on the principle that an organization performance is derived from 4 elements:
tasks, people, structure and culture.
Analysis of Tata Capital Ltd

1. Tasks: Tata Capital’s core work is to offer fund and fee-based financial services to its
customers. It provides fund and financial advisory services to retail and corporate clients, thus
helping them solve their financial problems. Most of the products offered by TCL are structured
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products with little customization. The employees need to follow the established System of
procedures while processing the loan requests for the clients. Thus it can be said that the tasks
and workflow are mechanistic in nature. In case of financial advisory business, the workflow and
tasks are comparatively organic and customized to the needs of the client. There are
interdependencies between the various functions like sales, credit, risk control and treasury.
2. People:
The various people involved in the communication are clients, employees and external
stakeholders such as Direct Selling Agents. The employees belong to different business units
and are experts in their respective finance domain. They have competency in a particular area
and the education spans CA, MBAs and commerce graduates. There is one appraisal done each
year, and it is the annual appraisal. The organization is young with more than 60% of the
employees being less than 40 years in age. There is gender diversity but the dominant gender is
male. The compensation is above the industry standard to attract the best talent but the career
progression is slow as the company is not aggressive in its outlook.
3. Organizational Structure: TCL has product division structure. The business units are formed
on the basis of the product like consumer finance, housing finance, commercial finance and these
business units generally work independent of each other. The support functions like Human
Resource and marketing support each of these business units. There are separate offices for each
of the subsidiary that lies within TCL.
TCL is in financial services domain where the work is standardized and the employees have to
work as per the SOPs. There are more than 100 offices all across India. Although structure is flat
because of the small size of the company, still a lot of sanctions and approvals are required for
miniscule issues suggesting that the decision making is centralized.
4. Culture: The core guiding principle at Tata Group is Ethics. TCL follows and believes in the
principle “We only do what’s right for you”. Thus the terminal value is customer satisfaction
and instrumental values are being ethical and customer centric.
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The leadership style is bureaucratic ensuring that the people follow rules and regulation
rigorously. This hinders the entrepreneurial spirit amongst the employees and they intend to do
only what has been instructed to them.
Due to centralization of authority the information flows from top to bottom which causes lapses
in communication. The employees are satisfied with the work life balance but there is an
organization level belief that the company is defensive in its outlook despite being an NBFC.
Interrelations in the above elements

Work and People
The work is done by the people who are educated and capable to handle it. The compensation
structure is in alignment with the market standards and job profiles.
Work and Structure
Being a financial services provider the work in TCL is standardized and this is in congruence to
the mechanistic structure it has. But the excessive controls and centralized decision making are
making the company defensive, which is against the market characteristic of NBFC.
Structure and People
Product division structure does not facilitate communication among the business units. People
within the business unit work as per their assigned roles and responsibility and hierarchy provide
the necessary control. The structure does not facilitate people from different business units to
work together effectively and this is deterrent to business as there are plenty of cross selling
opportunities in financial sector.
People and Culture
The employees are in congruence with the culture that breeds ethics and customer centricity.
There is a need to provide certain level of autonomy to the employees as they need to respond
effectively to the changes in environment.
Culture and Work
The work requires company to be aggressive in its outlook while the culture breeds restrain and
control. Thus they are not in congruence with each other.
Structure and Culture
Both the structure and culture encourage centralization in decision making and enforce restrains
and controls, thus they are in congruence with one another.
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Creating and Maintaining Congruence

There is complete congruence between areas such Work and People, Structure and Culture.
There is a need to strike the right balance between organic and mechanic structure which would
help establish congruence between the remaining of the elements. This can be done by balancing
centralization and decentralization, standardization and mutual adjustment. There is delay in
work for seeking minor approvals and permissions, thus by shifting the power structure many
issues can be addressed.
1.1.4 SWOT ANALYSIS OF TCL

Strengths
 Association with the brand “TATA” makes it standout amongst competition. Being a
company of a diversified and renowned business group ‘Tata’, brand name has radically
contributed to the credit and growth of businesses. Company has merged all its financial
services under the one cohesive brand name Tata Capital Ltd. This will certainly help
company organize its financial services businesses and be recognized as a united brand.
 TCL’s wide basket of offerings gives an excellent opportunity to cross sell products
 Experienced and talented workforce both in sales and operations.
 TCL operates at lower cut off rate as compared to competitor NBFCs and thus is able to
provide better and cheaper schemes to customer.
Weaknesses
 TCL being a young company lacks systems and procedures in few domains which slows
down the business processes.
 Technological systems such as Loan origination system and Customer relationship
management need up gradation.
 Most of the borrowers are from small and medium enterprise segment who are less
financially stable vis-à-vis large corporate borrowers.
 The rate of interest are higher than banks, thus most of the customers are those who are
not able to fetch loan from banks due to weak credibility
 Centralized organizational structure makes the company defensive in its outlook
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Opportunities
 Wide offerings give TCL an excellent opportunity to cross sell.

 Revival of economy, boost to infrastructure and increasing levels of consumption will
help TCL’s expansion plans.
 Large untapped market in both rural and urban areas.
 Differentiated offerings in credit card and consumer finance can help enhance market
penetration
Threats
 High cost of funds due to inflation control measures by RBI

 Growing retail thrust within banks and unorganized money lenders
 Regulatory changes for NBFC may hinder businesses like consumer durable finance.
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1.2 LITERATURE REVIEW
1.2.1 CONSUMER DURABLE INDUSTRY IN INDIA

The consumer durable market in India can be divided into 2 major segments
a). Consumer Electronics (Brown Goods)
These include Television, Audio and Video systems, Personal Computers, Laptop, Digital
Cameras and camcorders.
b). Consumer Appliances (White Goods)
These include Air Conditioners, Refrigerators, Washing machines, Sewing machines, Fans and
Microwaves.
Consumer durables sector is one of the fast growing sectors in India. This sector raked in
revenues worth $7.3 billion is FY 2012 and is expected to reach $12.5 billion by FY 2015.
Fig 2- Size of the Indian Consumer Durables Industry
Source: Electronic Industries Association Of India
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Compounded Annual Growth rate from FY03 to FY12 has been around 10.8% and the industry
is expected to grow 19.6% in coming years. Urban markets comprise 65% of the total revenues
in the industry and the remaining is contributed by the rural sector.
By 2025, India is expected to become the world’s fifth-largest consuming country from its
twelfth position in 2010. The major factors which are fueling growth in this sector are as follows
I. Growing Demand
The growing demand can be attributed to the following factors
a) Increasing Disposable Income
With the rapid increase in the disposable income, the Consumer spending in India grew from
US$ 549 billion to US$ 1.06 trillion between 2006 and 2011, putting India on the path to
becoming one of the world’s largest consumer markets by 2025. India’s consumption is expected
to rise 7.3 per cent annually over the next 20 years. By 2040, nine out of every ten Indians will
belong to ‘the global middle class group’ with daily expenditures ranging between US$ 10 and
US$ 100 per person in today’s purchasing power parity terms. The absolute number of India’s
middle class will touch 1 billion by 2039, with its influence on global middle class consumption
captured in the figure below.
Fig 3: Shares of Global Middle Class Consumption,2020-2050
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b) Shrinking Replacement Cycle
India’s biggest asset is the huge size of youth population. 50% of Indians are below the age of 25
and 65% Indians are in the working age group of 15-65.Young Indians are aspirational,
demanding and this has led to shrinking replacement cycle thereby boosting demand for new
products and technology. The huge size of working population not only ensures high demand for
durables but also cheap and enough labour.
With technology changing overnight the desire for new goods is everlasting amongst the young
Indian Population
Fig 4: India’s Median Age vis-à-vis other countries
c) Easy consumer Credit
The rapid rise in the credit cards user base and availability of easy and cheap consumer finance
facilities have enabled consumers to finance their durable needs. These facilities have boosted
purchasing power of consumers and have made luxury goods like LEDs and air conditioners
affordable for a middle class customer.
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d) Rising Rural Demand
The rural consumer base is growing at 30% CAGR on account of the rising income and rapid
rural electrification measures taken by the government of India.
II Policy Support
Growth of the electronics industry has been a constant Endeavour of the Government and this is
visible through the following policies
 Custom duty and Excise duty relaxations

 Encouragement to Foreign Direct Investment
 National Electronics policy 2012 which is aimed at creating a globally competitive
electronic manufacturing hub in India.
 EPCG( Export Promotion Capital Goods scheme) and EHTP (Electronic Hardware
Technology Park scheme) are aimed at boosting the local electronic manufacturing
industry.
1.2.2 CONSUMER DURABLE LOANS

Consumer Durable Loan is a lending facility which enables a customer to use his future cash
flows to buy consumer products upfront and pay in installments over a period. These loans are
unsecured loans and the tenure varies between 6 months and 24 months.
This facility is available on almost all Electronic goods which can be classified into 3 major
categories
1. Entertainment – TV, LCD, LED, Home Theatre system etc

2. Home Appliances – Air Conditioner, Refrigerator, Washing Machine, Microwave etc
3. Information Technology goods – Laptop, Mobiles, Personal Computers etc
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1.2.3 STAKEHOLDERS’ BENEFITS

The following stakeholders are involved and the benefits that they receive are listed below:
1. Customer’s Benefit
The rate of interest is generally 0% for the customer, making it attractive and affordable
enough for low and middle income families to buy high value consumer products.
2. Lender’s Benefit
The lenders get the returns through manufacturer’s subvention and dealer’s subvention. The
returns vary between 20% -30% depending on the product, scheme and tenure. Moreover
lenders also get an opportunity to cross-sell loans (personal loans, insurance etc)
3. Manufacturer’s Benefit
The manufacturer benefits through the volumes game as they are able to sell more. Secondly
they are able to sell larger ticket items which definitely have higher margins
4. Retailer’s Benefit
The retailer also enjoys higher footfall and sales. CD loan facility gives a retailer competitive
advantage over Mom n Pop stores which offer lower prices but don’t have lending facilities.
Also, it has been observed that customer’s relationship with CRE of the lender brings the
customer back to store thus encouraging customer repurchase possibilities.
1.2.4 MAJOR PLAYERS

CD loans are provided by both Banks and NBFCs. Banks do not reach out directly to the buyer
through the electronic stores whereas the NBFCs have positioned their Customer representatives
in these stores (Point of Sale) to provide on spot lending services to the customers. There are 3
major NBFCs in this sector:
1. Tata Capital Financial Services Ltd

2. Bajaj Finserv Limited
3. Capital First Ltd
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1.2.5 MICHAEL PORTER’S STRUCTURAL ANALYSIS OF CONSUMER DURABLE LOAN

INDUSTRY
a) Competitive rivalry within the Industry
There are 2 categories of competitors :
a) Banks
Banks have been banned by RBI from extending 0% finance schemes. They are not present in
the stores and are approached by customers who are looking for large ticket CD loan.
b) NBFCs
The major rival in the industry is Bajaj FinServ Lending which has been discussed in detail.
Other NBFCs are Capital First and Home Credit but they do not have prominent presence in the
industry.
Thus it can be concluded that the concentration of competitors in Delhi’s CD loan market is low
and there is not much differentiation in the offerings except for BFL’s EMI card.
b) Bargaining Power Of Suppliers
There are 2 major suppliers:
a) Supplier of Funds
The supplier of funds is Banks and there is plenty of competition amongst them. Keeping in
mind the strong credibility of TCFSL and backing of TATA group, the bargaining power of fund
providers is negligible.
b) Human Resources
In a country with demographic dividend there is no dearth of educated human talent , thus the
bargaining power of employees is also low.
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c) Bargaining Power of Customers
Most of the schemes offered by TCFSL and competitors are similar, thus the cost to the customer
is same (zero in most cases). There are certain schemes on Credit card like 5% cash back on Citi
Bank Cards which give the customers an attractive alternative over our offerings.
Thus it can be concluded that customers enjoy some bargaining power but that does not hamper
the attractiveness of the industry.
d) Threat of substitutes
The major substitutes are credit cards and CD loans offered by banks. With RBI banning 0%
schemes offered by Credit Cards and Banks, the threat of substitutes have reduced in the last
couple of yeaatrs.
e) Threat of New Entrants
There are several barriers for new entrants:
a) In order to enter the Consumer Finance space, a new entrant has to obtain the required licenses
and clearances from RBI and other regulatory authorities.
b) The distribution channel is established for existing players and it would be difficult for a new
player to match their presence as the floor space in stores is limited and they do not prefer to
have more than required financers in their premises.
c) The scope for product differentiation is negligible.
d) Building relationships with manufacturers and getting attractive schemes aboard is a time
consuming job.
Thus it can be concluded that the threat of new entrants is there but not alarming.
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1.3 TCFSL CONSUMER DURABLE LOANS

CD loan is a relatively new offering under the consumer finance basket from TCFSL. Currently
company’s exposure in the field is limited and the total lending was around Rs 18 crore in April
2014.It is gradually maturing into an important and profitable business for the company.
1.3.1 LOCATIONS
TCFSL is offering CD loans through 2 Large Scale Retailers (LSRs) : Croma and Reliance
Digital in the following cities
1. Mumbai
2. Pune
3. Ahmedabad
4. Baroda
5. Chennai
6. Bangalore
7. Hyderabad
8. Delhi NCR
9. Chandigarh
1.3.2 ELIGIBILITY CRITERIA
Criteria Salaried Self Employed
Minimum Age Limit 21 years 21 years
Maximum Age Limit 60 years 65 years
Minimum Loan Amount Rs. 10,000* Rs. 10,000*
Maximum Loan Amount Rs. 1,50,000 Rs. 1,50,000
Minimum Net Tenor 6 months 6 months
Maximum Net Tenor 24 months 24 months
Table 2: Eligibility Criteria for Consumer Durable Loans
IMI New Delhi 27

The funding can go beyond 1.5 lacs upto 5 lacs but the loan will be granted only after submission
of valid income proof. On the spot approval will not be granted, instead approval will be given
by Central Processing Centre in Mumbai after validating required documents.
1.3.3 DOCUMENTS REQUIRED

The documents required for processing the loan are as follows
1. PAN card
2. Address Proof
3. 1 Passport size Photo
4. Security Post Dated Cheque of amount equal to the net loan amount.
1.3.4 SOURCING SURROGATES

a) CIBIL
Credit Information Bureau (India) Limited (CIBIL) is a credit data repository that maintains
records of an individual’s payments towards loans and credit cards. By entering the details of the
customer into the Loan Origination System (LOS) the CRE at the Point Of Sale checks the
CIBIL score of the customer. Customers having CIBIL score 700 or above are granted loan.
Customers who don’t have any credit history have CIBIL score as -1, they are granted loan on
the basis of one amongst the following surrogates. Any customer having CIBIL score less than
700 excluding -1 will not be granted loan from TCFSL.
b) CAR Registration Certificate (RC)
If the customer has car registered in his name and in the city in which he is buying the product,
then loan can be sanctioned under this surrogate.
c) Credit Card
If the customer has a credit card in his name and the card is atleast 6 months old, then loan can
be sanctioned under this surrogate.
IMI New Delhi 28

d) House Ownership
If the customer is living in self-owned/family-owned house, then loan can be sanctioned under
this surrogate.
e) Listed Company Employee
If the customer is an employee of a company listed with TCFSL, then loan can be sanctioned
after sending the employment proof to CPC and getting the required approval from them.
1.3.5 TCFSL CD LOAN MARKET IN DELHI

TCFSL CD loan is being offered only at 16 Croma stores presently and would be shortly
introduced at Reliance Digital stores. The disbursal amount has been growing handsomely for
the past 4 months. It has grown from 0.82 Crores in Feb-14 to 2.43 Crores in May-14 at a rate of
43%.
Disbursal Amount (in Crores)

3
2.43
2.5
2.07
2
1.5 1.28
1 0.82
0.5
0
Feb-14 Mar-14 Apr-14 May-14
Figure 5: Growth of Disbursal amount over last 3 months
IMI New Delhi 29

1.4 RATIONALE OF RESEARCH

Summer season presents an opportunity for Consumer durable loan companies to cash on the Air
Conditioner and Refrigerator sales. Companies failing to pursue consumers at this time will
squander crucial opportunities to build positions of strength. . The scope of the study is limited to
Delhi-NCR and it involves development of an end to end product delivery strategy & executing
the same in a highly competitive environment with measurable indices. TCFSL CD loans are
offered in 9 locations but Delhi-NCR was chosen by the company as my project location because
of its geographic presence that causes the maximum impact of the summer season. The sole
objective of the project is not only to enhance sales and market penetration but at the same time
mitigate risk by keeping a vigil eye on the credibility of the customers whom the loans are
extended. The management also had expansion plans in mind as they wanted to expand to other
LSRs like Reliance Digital, thus they wanted to understand the gaps and issues at the ground
level. Delhi has the potential to be one of the largest market for TCFSL’s CD loan, thus the
project was assigned keeping in mind the untapped potential of the location.
1.5 RESEARCH OBJECTIVES

On the basis of the literature review and the discussions with the guides, the final research
problem is as discussed henceforth.
The primary objective was to help the company capitalize on the seasonal opportunity of the
summer season by maximizing sales on the allocated stores and ensuring that the amount sourced
is disbursed timely. While enhancing sales and market penetration vis-à-vis competitor, I had to
ensure the delinquency levels are minimized and the file movement from the store to the branch
is efficient. Inorder to identify the pain areas and highlight them to the organization, I carried out
a research with the sales executives of Croma. By plugging the gaps highlighted the company
can work more effectively with new Large scale retailers.
The major deliverables of the project are as follows
• Achieve the Target Assigned for each Store
• Competitor Analysis and Measuring the Performance vis-à-vis Competitor
IMI New Delhi 30

• Monitor the Movement of File from Sourcing to Disbursal
• Risk Mitigation
• To find out critical areas of improvement through an empirical research
1.6 RESEARCH QUESTIONS

1. Who is a typical CD loan consumer?
2. What is the revenue model for the company?
3. What are the roles and responsibilities of CRE?
4. What are the legalities and formalities involved in granting the loan?
5. What precautions should be taken before granting the loan?
6. How to enhance Brand presence on the store?
7. How does a loan file move from store to branch?
8. Who is the major competitor(s)? How well is it performing visa-vis TCFSL?
9. What are the issues and gaps in our Loan Processing cycle and service?
IMI New Delhi 31

2 IMPLEMENTATION METHODOLOGY
The implementation methodology can be summarized in the series of steps mentioned below
Risk
Initial
mitigation Identify areas
understanding Building Taking charge
and of
of the rapport with of the team to
continious improvement
industry, the Customer achieve the
performance through an
policies and Representativ assigned
monitoring emperical
processes es targets
vis-à-vis study
competitor
Fig 6: Implementation Methodology
2.1 INITIAL UNDERSTANDING OF THE INDUSTRY, POLICIES AND PROCESSES

Initial understanding of the systems and processes was gained by working in the back office as
the Sales coordinator for a period of 10 days. The major learning during this phase were
 Know Your Customer Documents

 Different surrogates under which the loans can be granted
 Movement of file after receipt in back office to disbursal
 Productivity of different stores and CREs
IMI New Delhi 32

2.2 BUILDING RAPPORT WITH THE CUSTOMER REPRESENTATIVES

I was assigned 5 Stores on 20 April 2014 and was given the desired targets of the stores. In a
short stint of 40 days, with no previous experience in selling financial products, I was suppose to
handle 5 CREs who had quite a bit of experience. Before leading them it was essential to learn
from them about their store’s sale, relationships with Croma employees and performance of the
competitor in their particular store. Thus initially I visited each store for 2 days and learnt about
the above mentioned aspects. I was successful in striking a chord with these CREs by listening to
their problems and empathizing with them. Sometimes I had to camouflage my designation to
them so that they take me seriously. They were depressed with the slow system and restrictive
policies and this was where I capitalized and told them I am preparing a report on the same and
would suggest the required recommendations to the management.
2.3 TAKING CHARGE OF THE TEAM TO ACHIEVE THE ASSIGNED TARGETS

Target achievement was the most critical deliverable of my project and this was accomplished by
ensuring the following
 Punctuality of CREs
 Target planning
 Maintaining and enhancing relationships with Croma Executives
 Daily monitoring and reporting
 Motivating the sales force
 Tracking the movement of files from sourcing to disbursal
2.4 RISK MITIGATION AND CONTINIOUS PERFORMANCE MONITORING VIS-À-

VIS COMPETITOR
The following steps were taken for risk mitigation
 Strict adherence to the practice of Original Seen and Verified (OSV)
IMI New Delhi 33

 If there was a suspect case in one store the details were communicated to other CREs as
well to counter the risk
 Pan Verification, Voter Identity card verification was done in cases with slightest
suspicion
The major competitor in all the 5 stores was Bajaj FinServ Lending and the results of competitor
analysis have been tabulated in the next section of report.
2.5 IDENTIFY AREAS OF IMPROVEMENT THROUGH AN EMPERICAL STUDY

This deliverable was achieved by carrying out an empirical study wherein the feedback of Croma
employees was used to find out the areas of improvement. The details of the research are as
follows
2.5.1 RESEARCH PROBLEM

To measure the perception and satisfaction of Croma sales representatives towards TCFSL’s
services vis-à-vis the major competitor Bajaj FinServ Lending(BFL) and thereby find out the
areas of improvement.
2.5.2 SCOPE
 The scope of the study is limited to 5 only Croma stores in Delhi-NCR.
 The respondents were all Croma employees and not other Brand employees positioned in
Croma stores.
2.5.3 RESEARCH OBJECTIVES

 To study the perception of Croma Executives towards TCFSL’s Customer representative
 To measure the performance of TCFSL on various parameters vis-à-vis BFL.
 To study the inclination of Croma Executive to recommend a customer for TCFSL’s CD
loan
IMI New Delhi 34

2.5.4 RESEARCH DESIGN

Exploratory Research
Exploratory research is the simplest and most loosely structured design. The basic objective of
our exploratory research was to obtain clarity about the problem situation.
Personal interviews were conducted with the Customer Representatives, Team Leaders and
Territory Sales Manager. The interviews were guided by the following questions
1. Who are our major competitors?
2. What are the expectations of Croma manager and staff from our representatives?
3. Are they satisfied with our services?
4. What are the problems that you face while working at TCFSL?
5. How are the competitors performing on the issues faced by us?
Unit of Analysis
Research information was collected from Store Managers, Department managers, Assistant
Department Managers and other Croma executives who were involved in the sale of products
costing more than Rs 10000.
Design of Questionnaire
Research objectives were converted into questions to get exact answers from the respondents.
Both formalized concealed and formalized unconcealed questions were framed to map the
required objectives of the study. A self-administered questionnaire was prepared where the
respondents read all the instructions and questions on their own and recorded their responses.
All the questions were Close-ended, with mix of Dichotomous questions, Multiple-choice
questions and Scales. While designing the questionnaire, considerations were made to keep the
language simple by avoiding ambiguous, leading, loaded and double-barrelled questions.
Branching question was used in the beginning to identify respondents whether they use social
media platforms or not.
IMI New Delhi 35

Method of administering
Questionnaire was administered personally to the respondents at Croma Store.
Sampling Design
Non- probability sampling design was used to select the sample from the population. In this
design method, the elements of the population did not have any known chance of being selected.
The results of the research have been tabulated in the next section of the report.
IMI New Delhi 36

3 RESULTS
3.1 ANALYSIS
My project location is Delhi-NCR and here we are presently available at only Croma electronic
stores and soon would be present at Reliance Digital stores. There are 21 Croma stores in Delhi-
NCR excluding the 2 ZIP stores at Domestic and International Airport Terminal. Currently we
are present at 16 stores amongst 21. I am working directly with the Territory Sales Manager (Mr
Shobhit Tyagi). There are two Team Leaders who manage a team of 22 Customer
Representatives (CREs) across the 16 stores.
The first 2 weeks of the internship were spent understanding the entire loan cycle and policies
which include
 Policies and surrogates for granting loan

 Required documents for sanctioning loan
 Calculating the IRR to TCFSL and benchmarking with the laid down criteria
 Communicating with the CREs and completing the pendency in rejected files
 Scanning the loan files and sending them to the Central Processing Centre in Mumbai
 Risk Monitoring i.e. to monitor the credibility of customer and reduce delinquency.
The last 6 weeks I have been working a kin to a team leader managing the sales team at 5 Croma
stores and helping them achieve their sales targets. This is the time of the year when Air
Conditioner, Refrigerator and Entertainment product (like LCDs/LEDs) sales surge and the sales
team has to be motivated and monitored to capitalize on the seasonality effect. The major
deliverables during this phase are as follows:
3.1.1 ACHIEVE THE TARGETS ASSIGNED FOR EACH STORE

In order to achieve the above stated goal, It is essential to build a good rapport with the CRE
positioned in the store. I have been to all the 5 stores for several days and during the stay there I
have tried to strike a chord with the CREs. This has helped me understand and solve their
problems. It has been my constant endeavor to ensure that they are motivated and punctual.
The next thing I have done to ensure that the targets are met is to guide the CREs on building
healthy relationships with the Croma sales executives who are the prime sourcing agents for our
IMI New Delhi 37
business. They are the ones who are in the position to channelize the customer to us or our
competitors. I myself interacted with the Store Manager, Department manager and other staff at
Croma stores to ensure that they are satisfied with our services and aware of our presence. It was
during the interaction with the Store Managers that I found out that we are losing potential
business because of our CREs reaching the store at 12 in the noon. The stores open at 11 and
according to the store manager, the customers that walk in at this time are those who are surely
going to buy the product and it is at this time when none of the two financers are in the store.
Thus to ensure that the CREs reach on time, I initiated a system wherein the CRE was suppose to
send me a SMS as soon as he reaches the store and I can cross check his presence by calling the
Store Manager. This helped us tap potential business and this practice was extended by the
Territory sales manager to other stores as well.
Financers are not allowed to advertise their schemes at Croma stores. It is only their Head Office
which decides the schemes that are to be advertised, thus the BTL promotion was limited to
ensuring that the CRE wears his brand T-shirt every day. I suggested the TSM to have a brand
sticker on the laptop and this suggestion was readily accepted.
The monthly target was divided into daily targets and that was further segregated into weekday
and weekend target and daily reports were taken from each CRE.
The target completion status for the five stores for the month of April and May is as follows
Target
DEALER NAME/CRE NAME Target Allocated Target Disbursed Completion%
Saket PVR/ Abhinay 2000000 2019076 100.95%
Faridabad/ shashi 2000000 2002571 100.13%
Rohini/ Saurabh 1000000 1513590 151.36%
Sec-29 Gurgaon/ Ravi
Anand 1000000 1040452 104.05%
Saket Select City Walk/ Arjit
Singh 2000000 2000416 100.02%
TOTAL 8000000 8576105 107.20%
Table 3: Store wise target for the month of April
IMI New Delhi 38

Target
DEALER NAME/CRE NAME Target Allocated Target Sourced Completion%
Saket PVR/ Abhinay 3000000 3070913 102.36%
Faridabad/ shashi 2000000 2066990 103.35%
Rohini/ Saurabh 1500000 1070000 71.33%
Sec-29 Gurgaon/ Ravi
Anand 1500000 2011436 134.10%
Saket Select City Walk/ Arjit
Singh 2500000 2308528 92.34%
TOTAL 10500000 10527867 100.27%
Table 4: Store wise target for the month of May (Disbursed data was not available)
3.1.2 RISK MITIGATION

CD loans are unsecured loans so it is essential to guide and monitor the CRE in order to ensure
that they resist the temptation to grant loan to a customer who might default. Making sure that all
the necessary documents are Original seen and verified (OSV) by the CRE can help reduce
delinquency. CREs have been advised to do PAN verification and Voter ID verification before
closing a case where there is even slight suspicion of default.
There was a training held by Risk Control Unit on 1 May 2014. It was attended by all CREs from
my team and I have ensured that the instructions that were given in that meeting are strictly
followed.
As per the information received from my manager the delinquency levels have fallen drastically
to .09% in the last one year.
The delinquency reported from my stores during the last 8 months is
CUSTOMER NUMBER OF DELINQUENT

REPRESENTATIVE STORE LOCATION CASES
ABHINAY PVR Saket 4
ARJIT SINGH Select City Walk Saket 1
RAVI ANAND Sec-29 Gurgaon 0
SHASHI Faridabad 0
SAURABH Rohini 1
Table 5: Store wise delinquency number for last 8 months
IMI New Delhi 39

3.1.3 COMPETITOR ANALYSIS AND MONITOR THE PERFORMANCE VIS-À-VIS

COMPETITOR
The major competitor in the market is Bajaj Finserv Ltd. They were the first ones in 19989-1999
to make foray into CD loan business and are the market leaders with a growth rate of 39% during
the last financial year . The company acquired 1.9 million new users last year and financed 13%
of all consumer electronics sold in the country. BFL financed one out of every four LCD/LED
panel sold in the country clearly indicating its strong presence in the urban market. The major
competitive advantages that BFL has over TCFSL are as follows:
a). Robust Loan Originating System
The loan processing system of BFL is efficient and effective enough to handle huge volumes of
business. The average time taken by a BFL executive to process the details of a customer for
loan approval is around 5 minutes while that taken by TCFSL executive is around 15 minutes.
This is mainly due to the lengthy application form and slow LOS. Mostly on Sundays when the
customer footfall in the store is at its peak, the LOS stops working, This leads to loss of business
on the most critical day of the week. Moreover it strains the relationship of our CRE with
Croma’s Sale executive as they also lose their customer because of our incapability to process
the loan. Many dissatisfied representatives stop sourcing the business to our CRE because of the
above reason. This futher demoralizes the CRE leading to higher attrition rates.
b) Market Presence
BFL is present across 4900 Point of Sale across 91 cities in India The company is rapidly
expanding its presence across India and this has been highlighted in the following figure. They
have doubled their point of sales from 2500 in 2011 to 4900 in 2014 and are on a massive
expansion drive.
IMI New Delhi 40

Point Of Sales
6000
4900
5000
4000 3500
2800
3000 2500
2000 Point Of Sales
2000
1000
0
2010 2011 2012 2013 2014
Fig 7: Growth of Point of Sales of BFL over last 4 years
c) EMI Card
BFL has a unique and innovative product offering called the EMI (Existing Member
Identification) card for its existing consumer durable customers. The card entitles a customer to
obtain a loan for incremental consumer durables with the facility to ‘Swipe, Sign and Go’, so
long as the earlier loans and payment performance have remained good. This product has been
well received and has been extremely successful. EMI card was started as a pilot project in 2011
and today the number of EMI cards in force exceeds 1.9 million. These cards have given BFL a
competitive advantage over TCFSL as almost 40% of the customer looking for CD finance are
already carrying EMI card. EMI card has given BFL an opportunity to cross-sell other products
like personal loan, two wheeler loan etc to their customer and thus capitalize on the Customer
Lifetime Value.
d) More Tie-ups with Electronic Brands
As compared to our company BFL has more tie-ups especially when it comes to IT products like
mobile and laptops. I feel it’s a deliberate step not to increase exposure in such products as the
probability of default is higher as compared to other goods.
The standard target penetration level set by the top management is 33% and it stood at 30.54%
and 34.52% for the five stores allocated to me in the month of April and May respectively.
IMI New Delhi 41

Bajaj TCFSL Bajaj TCFSL

Amount amount Amount amount
DEALER NAME/CRE NAME (may) (may) (may) (may)
Saket PVR/ Abhinay 8036599 3070913 7537869 2019076
Faridabad/ shashi 6298790 2066990 4209183 2002571
Rohini/ Saurabh 5807600 1070000 5394663 1513590
Sec-29 Gurgaon/ Ravi Anand 4298760 2011436 3565231 1040452
Saket Select City Walk/ Arjit Singh 6233854 2308528 7374159 2000416
TOTAL 30675603 10527867 28081105 8576105
PENETRATION MAY 34.32% APRIL 30.54%
Table 6 : Penetration of TCFSL vis-à-vis BFL
3.1.4 MONITOR THE MOVEMENT OF FILE FROM SOURCING TO DISBURSAL

The file movement can be understood through the end to end process described in the figure
Document Sending
Document
Sourcing Verification & Completed file
Verification
Collection to Store
File
Disbursal Queries Scanning
Inward
Fig 8: Loan processing cycle
It is critical that the CRE after sourcing a case sends the file as soon as possible to the branch. I
discussed with the CREs and then with consensus implemented the strategy to send a file
sourced on a particular weekday on the next consecutive day through the courier facility to the
regional branch. The files that were sourced on Saturday and Sunday were send on Monday as
there was no time on weekends to complete the file. Till date this system is followed by most of
the CREs and the files are reaching the branch on time.
IMI New Delhi 42

I personally worked closely with the sales coordinator in the branch and ensured that any
pendency in a file gets completed on urgent basis. The average cycle time from sourcing to
disbursement of the file is 5 days.
3.1.5 TO FIND OUT MAJOR AREAS OF IMPROVEMENT

Data Analysis
Objective 1: To study the perception of Croma Executives towards TCFSL’s Customer

representative
The average scores (out of 5) obtained on these factors have been listed in the table below
Statistics
Knowledge of Efficiency in
Communication Relationship with schemes and handling
Skills Punctuality Dressing Sense other employees policies customer
Mean 3.94 3.76 3.84 4.06 3.94 4.12
Table 7: Mean Value of various parameter’s on which the CRE was judged
Mean
4.2
4.12
4.1 4.06
4 3.94 3.94
3.9 3.84
3.8 3.76
Mean
3.7
3.6
3.5
Communication Punctuality Dressing Sense Relationship Knowledge of Efficiency in
Skills with other schemes and handling
employees policies customer
Fig 9: Value of various parameter’s on which the CRE was judged
IMI New Delhi 43

Overall satisfaction level with the CREs have been depicted in the pie chart below
Fig 10 : Satisfaction level of Croma employees with CREs
Objective 2: To measure the performance of TCFSL on various parameters vis-à-vis BFL.
The ratings received on various parameters are shown in the table below. The coding assigned
was : 1- Strongly Disagree, 2 –Disagree, 3 –Neither Agree nor Disagree, 4 –Agree, 5-Strongly
Agree
S.NO ATTRIBUTE TATA CAPITAL BAJAJ

FINSERV
3(a) This company has 3.92 4.08
attractive schemes (
like 0 down payment)
3(b) This company has 3.78 4.34
tieups with most of the
electronic brands
3(c) This company has fast 1.64 4.64
Loan processing system
3(d) This company has 3.86 3.66
adequate staff on store
floor
IMI New Delhi 44

3(e) This company provides 1.72 4.38

incentive to Croma sale
executive
3(f) This company requires 2.4 4.6
less documentation for
loan approval
3(g) This company is well 3.72 4.54
known to the customer.
Average 3.005 4.32
Table 8: Table showing comparison of TCFSL vs BFL on various parameters
The average score of both the indicates that Croma employees are valuing Bajaj Finserv in much
better light than TCFSL.
By using paired T-test at the significance level 5%, I found out that the perception of Croma
executives varied on the following parameters
 Loan Origination System
 Documentation Requirements
 Incentive for Croma Employees
 Tie ups with Electronic Brands
 Brand recognition to the customer
Objective 3: To study the inclination of Croma Executive to recommend a customer for TCFSL’s
CD loan
The response obtained has been depicted in the pie chart below
IMI New Delhi 45

Fig 11: Inclination of Croma Employees to recommend TCFSL loan to customer
48% of the Croma executives said that they always recommend TCFSL loans to their customers
while 6% said they never do so. 46% of them were recommending TCFSL sometimes
3.2 ISSUES AND GAPS IDENTIFIED

a) LOS (Loan Origination System) is not able to handle heavy traffic on weekends. This lowers
the morale of the CRE in the store as he is not able to source business on critical days and
also spoils his/her relationship with croma sales executives.
b) ECS bounce cases have surged in the last 4 weeks and the reasons are unknown as there is
sufficient balance in the customer’s account. This is adversely affecting the brand and
customer loyalty.
c) Unavailability of schemes on popular brands like IFB, Panasonic and carrier has led to loss
of potential customer.
d) Promotional activity to enhance visibility at the store is negligible. In some stores the display
poster at the Finance Desk does not carry Tata Capital’s name, it only has BFL advertised on
it. Even the posters displaying 1 Re down payment scheme on Croma products have been
removed.
IMI New Delhi 46

e) Loan approval process is much longer (12 mins) than the competitor Bajaj Finserv(6 mins). It
is mainly because of the lengthy application form and Pin code fetching problem in the LOS.
f) A lot of customers are lost to competitor because of the requirement of Security Post dated
cheque while competition requires cancelled cheque.
g) BFL is providing incentives to Croma employees during this season and this has helped them
attract business. I have even seen Croma executive directing a customer to BFL for a Croma
product for which BFL was charging Rs 550 as processing fee while we were charging 0 fee.
h) There is a tendency to keep the business piling up for the first 15 days of the month and
almost 80% of the business is disbursed in the last 15 days of the month.
i) Reconciliation process is not managed effectively. All the CREs are called on the same day
which leads to a lot of rush and mismanagement in the branch. Many CREs go back in the
evening without completing their reconciliation process leading to wastage of time and
business.
j) The operations team is undersized. The norm is to have 1 operation executive for 125 loan
files but we are processing 600 files with 2 executives. This slows down the processing time
and most of the bandwidth of Territory Sales Manager is consumed in handling operational
issues.
3.3 LIMITATIONS OF THE STUDY

 The study is restricted to Delhi.
 The study covers only 5 Croma stores out of 16, so the conclusions may not be
generalized for all the stores in Delhi
 Due to shortage of time the sales figures can be monitored for a small period of time.
 TCFSL’s CD loan business in Delhi is in its nascent stage so there is no previous data to
understand the seasonality effects of summer.
 There would also be some limitations in the form of access to all the information
associated with the operations, since a lot of information is confidential and of strategic
importance to the company, and hence must remain classified and accessible to only
select individuals as per the discretion of the company
IMI New Delhi 47

4 RECOMMENDATIONS
4.1 SHORT TERM RECOMMENDATIONS
1) Brand Awareness at store can be increased through cost effective Below the Line promotions
like
– Tent cards
– Brand Sticker on Laptop
– Brand labeled notepads, pens
2) Sodexo coupons can be introduces as an incentive for Croma employees .A Rs 25 coupon

can be given for every case.
Feasibility check
Number of finance cases in Delhi in May = 600
Incremental cases due to incentive = 10% i.e. 60 ( This has been benchmarked with the increase
that Bajaj FinServ has witnessed due to such initiative)
Average ticket size = Rs 37000
Incremental loan amount = Rs 37000* 60 = Rs 222000
Assuming 20% cut off rate , incremental benefit = Rs 44,4000
3) Reconciliation process can be carried out between 8 am- 11 am for 3 days so that the CRE
reaches the store on time. This will help address Croma executive’s dissatisfaction regarding
CRE’s punctuality and also increase business.
4) Two more operations executives required to disburse business keeping in mind the opening of
Reliance digital outlets.
IMI New Delhi 48

The operations are taken care of by E-Next and the standard laid out by them is 1 executive per
125 files. Currently with 580 files we need 4 executives but only 2 are available.
4.2 LONG TERM STRATEGIC RECOMMENDATIONS
1. Efficient and Reliable LOS integrated with Risk control utilities like hunter match is the most
important requirement. I can assure that if we have an effective LOS we can take on any
competitor in the market.
2. All competitors require cancelled cheque while we require SPDC. The customer finds this
requirement unreasonable and is hesitant in availing our services. Thus SPDC requirement
should be replaced with Cancelled Cheque.
3. With Monsoon coming, tie-up with IFB would help capitalize on sales of washing machines.
Tie-ups with Panasonic and Toshiba before Diwali would help boost sales during that season.
4. Market presence can be enhanced by venturing into potential stores like More Store, Jumbo
electronics. Sargam Electronics and Vijay Sales are other options which can be considered after
required preliminary checks.
5. Keeping in view increased business CD division requires a minimum 12 seat office. Givin the
same will help reduce disbursal time.
6. Allocation of store to a CRE should be a strategically decided keeping into mind the
productivity, dynamics of store and the personality traits of the CRE
IMI New Delhi 49

5 REFERENCES
1. http://tatacapital.com/consumer-finance/consumer-durable-loans.htm
2. http://www.bajajfinservlending.in/
3. http://www.thehindu.com/business/consumer-durable-financing-interestfree-schemes-gain-
popularity/article4253297.ece
4. http://articles.economictimes.indiatimes.com/2013-11-07/news/43776454_1_durables-
consumer-mood-festive-season
5. http://www.bajajfinservlending.in/investors-presentations.aspx
6. http://www.thehindubusinessline.com/industry-and-economy/banking/ban-on-0-interest-
schemes-creates-confusion-in-market/article5218227.ece
7. Indian Government Investor Website - http://www.investindia.gov.in/?q=advantage-india
8. PWC Report titled “Winning In India’s Retail Sector : Factors For Success”-
list2.pwc.fr/assets/...retail.../pwc_winning_in_india_retail_sector_1.pdf
9. CIA World Factbook India : https://www.cia.gov/library/publications/the-world-

factbook/geos/in.html
10. Contemporary Strategy Analysis : Robert M. Grant
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6 APPENDIX
APPENDIX 1: QUESTIONNAIRE
Note:
The aim of this survey is to study the perception and satisfaction towards the Consumer
Durable loans provided by Tata Capital Ltd in your store. Please fill this questionnaire.
1. Do you know Tata Capital’s Customer Representative in your store ?

a) Yes
b) No
Please proceed only if answer to the above question is Yes
2. Please rate Tata Capital’s Customer representative in your store on a scale of 1-5 on the
following parameters. (1-very bad, 2 –bad, 3-average, 4-good, 5-very good)
S.NO ATTRIBUTE 1 2 3 4 5
2(a) Communication Skills
2(b) Punctuality
2(c) Dressing Sense
2(d) Relationship with other employees
2(e) Knowledge of schemes and policies
2(f) Efficiency in handling customer
Q3. On a scale of 1 to 5, please rate each of the financing company on the following attributes.
(1- Strongly Disagree, 2 –Disagree, 3 –Neither Agree nor Disagree, 4 –Agree, 5-Strongly Agree)
S.NO ATTRIBUTE TATA BAJAJ

CAPITAL FINSERV
3(a) This company has attractive schemes ( like 0 down payment)
3(b) This company has tieups with most of the electronic brands
3(c) This company has fast Loan processing system
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3(d) This company has adequate staff on store floor

3(e) This company provides incentive to Croma sale executive
3(f) This company requires less documentation for loan approval
3(g) This company is well known to the customer.
4. I recommend Tata Capital Consumer Durable loan to a customer interested in financing a

product.
a) Always
b) Sometimes
c) Never
5. Any issue/problem you would like to highlight which you are facing with our services?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
6. Gender:
a) Male
b) Female
7. Age:
a) 18 - 24 years
b) 25 – 30 years
c) > 31 years
8. Store Location: _____________________________________________
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Saurabh 13 PG DM 052

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July 7, 2014 SUMMER INTERNSHIP REPORT- TATA CAPITAL LTD

SUMMER INTERNSHIP PROJECT

SAURABH KHURANA 13PGDM052

TATA CAPITAL LTD

A Report Submitted in Partial fulfillment of the requirements of PGDM program

International Management Institute

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INTERNATIONAL MANAGEMENT INSTITUTE

CERTIFICATE OF APPROVAL FOR SIP

Name of Executive: Mr Nishant Jasapara

Address: Tata Capital Financial Services Limited

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2.2 BUILDING RAPPORT WITH THE CUSTOMER REPRESENTATIVES 33

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1.1 COMPANY INTRODUCTION

1.1.1 ORGANISATIONAL STRUCTURE

Fig 1: TCL’s Organizational Structure

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1.1.2 TCL’S OFFERINGS

Table 1 : TCL’s offerings

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9. Travel & Forex

10. Cleantech Finance

1.1.3TUSHMAN AND NADLER CONGRUENCE MODEL ANALYSIS

Analysis of Tata Capital Ltd

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Interrelations in the above elements

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Creating and Maintaining Congruence

1.1.4 SWOT ANALYSIS OF TCL

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 Wide offerings give TCL an excellent opportunity to cross sell.

 High cost of funds due to inflation control measures by RBI

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1.2 LITERATURE REVIEW

1.2.1 CONSUMER DURABLE INDUSTRY IN INDIA

a). Consumer Electronics (Brown Goods)

b). Consumer Appliances (White Goods)

Fig 2- Size of the Indian Consumer Durables Industry

Source: Electronic Industries Association Of India

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The growing demand can be attributed to the following factors

a) Increasing Disposable Income

Fig 3: Shares of Global Middle Class Consumption,2020-2050

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b) Shrinking Replacement Cycle

Fig 4: India’s Median Age vis-à-vis other countries

c) Easy consumer Credit

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d) Rising Rural Demand

 Custom duty and Excise duty relaxations

1.2.2 CONSUMER DURABLE LOANS

1. Entertainment – TV, LCD, LED, Home Theatre system etc