A Study on the Working of Indo Farm Equipment Ltd.

Baddi

A Summer Training Report

in partial fulfillment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

Satish Kumar

(Reg. No. 617012053)

Under the guidance of

Mrs. Seema Chandel (Professor) Mr. Pardeep Thakur (Accountant)

(Faculty Guide) (Industry Guide)

Submitted to

Sai School of Management and Commerce

Sri Sai University,

Palampur

July 2018
 Sai School of Management and Commerce Studies

SRI SAI UNIVERSITY

CERTIFICATE

This is to certify that the Summer Training Report entitled “A Study on the
Working of Indo Farm Equipment Ltd. Baddi”, in partial fulfillment of the
requirements for the award of the Degree of Master of Business Administration is
a record of original training undergone by Satish kumar ( Reg. no.-617012053)
during the year 2018-19 of his study in the Department of Management and
Commerce Studies, SRI SAI University, Palampur under my supervision and the
report has not formed the basis for the award of any Degree/Fellowship or other
similar title to any candidate of any University.

Place: Palampur Signature of Guide

Date: Mrs. Seema Chandel (Professor)

Sai School of Management and Commerce Studies

SRI SAI University

Palampur

Countersigned

Head of the Department

Submitted to the Department of Management and Commerce Studies, SRI SAI

UNIVERSITY (Palampur) for the examination held on_______________

Guide
 DECLARATION

I, Satish Kumar hereby declare that the Summer Training Report, entitled “A
Study on the Working of Indo Farm Equipment Ltd. Baddi” , submitted to the
SRI SAI University in partial fulfilment of the requirements for the award of the
Degree of Master of Business Administration is a record of original training
undergone by me during the period June-July 2018 under the supervision and
guidance of Your Guide name and designation, Department of Management and
Commerce Studies, SRI SAI University, Palampur and it has not formed the basis
for the award of any Degree/Fellowship or other similar title to any candidate of
any University.

Place: Palampur
Signature

Date:
 ACKNOWLEDGEMENT

I am extremely thankful to our Head of the department, his valuable suggestions

and guidance for the completion of project work. I express my sincere thanks to
my Project Guide (Mrs. Seema Chandel- Professor) for guiding me throughout the
work. I thank God Almighty for showering his perennial blessing on me for
giving me the courage to pursue this project work successfully.

Satish Kumar

(Reg. No.- 617012053)

List of Contents

Chapter Title Page No.

Certificate I

Company Certificate

Declaration

Acknowledgement

Contents

fI Introduction

II Company Profile

III Industry Profile

IV

Activities of Various Departments

V SWOT Analysis

VI Ethical and Best Practice

VII Findings, Suggestions and Conclusions

Appendices

References
 INTRODUCTION

Objective of the training:-

The main objective of the training is to observe the working of Indo Farm
Equipment limited.

Importance of the training:- The importance of the training as follows-

1. To get familiar with the working environment of the company
2. To convert the theoretical knowledge with practical knowledge.

Scope of the Training:-

This summer training report involves study on the working of Indo Farm
Equipment Limited. This study helps to understand ‘what is the mechanism of
action in various departments of an organization’. This study is to understand
what are the strength, weakness, opportunity and Threat of Indo Farm Equipment
Limited.

Training Period:-
I completed the summer training program in Indo Farm Equipment Limited
during the period of 6th June 2018 to 18 July 2018.
 INDUSTRY PROFILE
Automobile Industry in India The automobile industry in India is one of the larger
markets in the world and had previously been one of the fastest growing globally,
but is now seeing flat or negative growth rates. India's passenger car and
commercial vehicle manufacturing industry is the sixth largest in the world with
an annual production of more than 3.9 million units in 2011. According to recent
report, India overtook Brazil and became the sixth largest passenger vehicle
producer in the world beating old and new automobile makers as Belgium, United
Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil, grew 16 to 18 per
cent to sell around three million units in the course of 2011-12.In 2009, India
emerged as Asia's fourth largest exporter of passenger car after Japan, South
Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest
exporter of passenger cars. As of 2010, India is home to 40 million passenger
vehicles. More than 3.7 million automotive vehicles were produced in India in
2010 (an increase of 33.9%), making the country the second (after China) fastest
growing automobile market in the world in that year. According to the Society of
Indian Automobile Manufacturers, annual vehicle sales are projected to increase
to 4 million by 2015, no longer 5 million as previously projected.

INDIAN TRACTOR INDUSTRY

History
Indian tractor industry developed in between 1945 to 1960 because of the war
surplus tractors and bulldozers were imported for cultivation and land reclamation
in mid 1940’s. In 1947 Central and state tractor organizations were set up to
develop and promote the supply and use of tractors in agriculture and up to 1960
the demand was met entirely through imports. In 1951 there were 8500 tractors in
use 20000 tractors in 1955 and 37000 by 1960. Local production began with five
manufacturers in 1961 producing a total of 880 units per year. Eicher, Gujrat
tractors, TAFE, Escorts, M&M are the major tractor manufacturers.
During 1965 this had increased to over 5000 units per year and the total in use had
risen to over 52000. In the year 1970 annual production had exceeded 20000 units
with over 146000 units working in the country. From 1971 to 1980 six new
manufacturers were well established during this period although three companies
(Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escort
limited began local manufacture of Ford tractors in 1971 in collaboration with
Ford, UK. Others were HMT and PTL (SWARAJ) Total production climbed
steadily to 33000 in 1975 reaching 71000 by 1980. Credit facilities for farmers
continued to improve and the tractor market and thus the tractor market expanded
rapidly with the total in use passing the half million mark by 1980. From 1981 to
1990 a further five manufactured began production (Auto Tractors, Asian
Tractors, VST Tillers) during this period but only last one survived in the
increasingly competitive market place. Annual production exceeded 75000 units
by 1985 and reached 140000 in 1990 when the total in use was about 1.2 million.
Then India – a net importer up to the mid-seventies became an exporter in the
80’s mainly to countries in Africa between 1991 to1997.
Since 1992 it has not been necessary to obtain an industrial license for tractor
manufacture in India. By 1997 annual production exceeded 255000 units and the
national tractor park had passed the two million mark. India has now emerged as
one of the world leaders in wheeled tractor production. Saturation achieved in
Punjab with tractor density as high as 82 per 1000 against Indian average of 12.4,
world average of 17.4 and 32.1 in developed countries. Intense competition has
led to rapid advances in design and quality.

Market capitalization
Tractor market in India is about Rs 6000 crore. On an average around 400000
tractors are produced and their sale is 260000. Uttar Pradesh is the largest tractor
market in our country. One out of every four tractor is being purchased here.
One third of the world’s Tractor production is in India. The total turnover is 1000
crore and the total investment is 8000 crore. With employment of 28000 people
directly and 150000 people indirectly the tractor population is 3000000 compared
to 9000000 in China.

Developments in the industry

1. Today in India there is an increase in awareness among the farmers for the
need of farm mechanization and are keen to acquire tractor with the help
of credit facilities from financial institutions.
2. Agronomists believe that there is need for more tilling due to depletion of
moisture and repeated cultivation of land. It is precisely for this reason
that the demand for tractors was well maintained even during a drought
period.
3. Cost of tractors in India is the cheapest in the world. The cost of a finished
tractor here is as much as the cost of gear box in developed countries.
Hence there exists tremendous scope for exports.
4. Animal power available is too inadequate to meet power demand of our
farmers. Mechanized operations are preferred to eliminate drudgery and
delay, also labor shortage during harvesting increased the use of tractor.
5. More farmers are opting for multiple cropping over last decade. Country’s
net cropped by about 4.7%. This indicate the increased popularity of
multiple cropping
6. 95% of tractor sales are on credit. Credit is extended by commercial
banks, state land development banks and regional rural banks.
7. Irrigation facilities reduce reliance on the cropping cycle to 3 to 4 months
from the traditional 5 to 6 months. Reduced cropping cycle require deep
tilling which translates into higher demand for tractors.
COMPETITORS PROFILE

EICHER-
In 1949, Eicher Good Earth was set up in India with technical collaboration with
Gebr. Eicher of Germany imported and sold about 1500 tractors in India. On 214
April 1959 Eicher came out with the first locally assembled tractor from its
Faridabad factory and in a period from 1965 to 1974 became the first fully
manufactured (100% indigenization) tractor in India. In December 1987 Eicher
Tractors went public and in June 2005 Eicher Motors Limited sold Eicher
Tractors and engines.

ESCORT-
In 1960, Escorts set up the strategic Agri Machinery Group (AMG) to venture
into tractors. In 1965, they rolled out their first batch of tractors under the brand
name of Escort. In 1969, a separate company, Escorts Tractors Ltd., was
established with equity participation of Ford Motor Co., Basil don, UK for the
manufacture of Ford agricultural tractors in India. In the year 1996 Escorts
Tractors Ltd. formally merged with the parent company, Escorts Ltd.
Technologies- Escorts AMG has three recognized and well-accepted tractor
brands, which are on distinct and separate technology platforms.

Farmtrac - World Class Premium tractors, with single reduction and

epicyclical reduction transmissions from 34 to 75 HP.

Powertrac - Utility and Value-for-money tractors, offering straight-axle and hub-

reduction tractors from 34 to 55 HP. India’s No.1 economy range – engineered to
give spectacular diesel economy. Escorts - Economy tractors having hub-
reduction transmission and twin-cylinder engines from 27 to 35 HP. Pioneering
brands of tractors introduced by Escorts with unbeatable advantages.
HMT-
HMT is a large public sector unit and began manufacturing Agricultural Tractors
in 1972 under the HMT brand name with technology acquired from Zentor of the
Czech Republic. It manufactures its tractors in Pinjore in a large factory that also
manufactures machine-tools, and Hyderabad has a capacity of 20,000 tractors per
annum. In the Machine-tool company is a large foundry. It produces tractors in a
range from 25 HP to 75 HP. HMT has also exported tractors to the USA under the
Zebra brand, which were marketed by Zetor distributors and dealers there. The
company is controlled by the Ministry of Heavy industry that provides to the
public its financial performance.

STANDARD-
Standard began building tractors in Barnala Punjab, India. In Standard tractors are
being manufactured in the range of 35 to 75 HP with respective model names:
Standard 335, Standard 345, Standard 450, Standard 460, and Standard 475
Engines for all these tractor models, except the last 475, are manufactured within
the plant as ‘Standard Engines’, in specific names – SE 335, SE 345, SE 450 and
SE 460, respectively. All the above-mentioned models of Standard engines have
shown compliance to the TREM-III emission norms, as have been verified by the
ARAI. However, two new variants of tractor of 35hp (Standard 335-I) and 45hp
(Standard 345-I), equipped with famous Perkins engines (assembled within the
Standard Tractors plant), and two completely new models of tractor of 30hp
(Standard 330) and 40hp (Standard 340) are on the verge to be launched. Besides
these, three 3-wheelers (two passenger-carriers and one cargo), one 4-wheeler
(cargo), a crane, an electric 3-wheeled mini-car, and two 2-wheelers (scooters) are
either in the process of development or on the verge of launch from the Standard
Tractor division.
JOHN DEERE

Deere & Company, founded in 1837 (collectively called John Deere), has grown
from a one-man blacksmith shop into a corporation that today does business
around the world and employs approximately 56,000 people. The company
continues to be guided, as it has been since its beginning, by the core values
exhibited by its founder: integrity, quality, commitment and innovation. To
expand its global presence in Agricultural equipment, John Deere established the
India Tractor business in 1997 under a ‘50:50’ joint venture with Larsen &
Toubro Limited (L&T). In 2005, John Deere acquired the remaining shares in the
joint venture. The India Tractor business includes a fully integrated
manufacturing facility with three focus factories - Engine, Transmission and
Vehicle Assembly. Spread over 112 acres with 50,000 m2 of covered area at
Sanaswadi, Pune, it produces modern tractors from 35 to 70 HP for both domestic
and international markets. These include North & South America, Europe and
South East Asia where they have earned a reputation for quality.

INTERNATIONAL TRACTORS LIMITED

International Tractors Limited was incorporate on October 17, 1995 for the
manufacture of Tractors and has since then built a distinct position for itself in the
Tractor industry. ITL is manufacturing various Tractors of Sonalika brand
between 30 H.P to 90 H.P, and CLASS brand between 70 hp to 90hp. The tractors
manufactured by company have secured a reputation of performance, quality and
reliability in the market because of their maximum pulling power, minimum fuel
consumption and low emission. All this makes ITL one of the top five tractor
selling companies in India. These tractors are also exported to various countries
including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh,
Algeria, Zambia, Senegal, Ghana etc.
 COMPANY PROFILE

ORIGIN AND GROWTH

Indo Farm Equipment Limited is an ISO certified company located in Himachal

Pradesh and is into manufacturing of world-class tractors, cranes, engines, diesel
gensets and has now recently launched Harvester Combine Agricom 1070 for
wetland paddy harvesting. Incorporated in 1994, it is promoted by Mr. R.S.
Khadwalia, who is the Chairman & Managing Director of the company and has
over two decades of experience in manufacturing and marketing of various
engineering products. Indo Farm commenced commercial production of tractors
in October 2000, with technology from Ursus, Poland, at its plant located at Baddi
in District Solan, Himachal Pradesh. Spread over an area of 34 acres, the plant
started with the production of a single model. Within a decade of successful
operations Indo Farm grew to a company having models in the range of 30 HP, 38
HP, 42 HP, 48 HP, 50 HP, 52 HP, 55 HP, 60 HP, 65 HP, 75 HP ,90 HP and
110HP with many variants. Way back within a year of its operations, the
company had successfully indigenized the engine components, manufacturing and
assembly processes, and accordingly stopped import of engines and so much so, it
commenced export of engine components to Poland in May 2006 and engines to
Ursus in May 2008. In 2008, the company diversified into manufacturing and
marketing of Pick-N-Carry cranes of 9 tons - 20 tons capacity and has recently
commenced production of mobile tower cranes too. Engines being the company's
core competence area, it is now making engines for generator sets that are
exported overseas. The company has its state-of-the-art foundry equipped with
induction furnaces in order to ensure still better quality as well as to ensure
uninterrupted supply. Indo Farm operates on a pan-India basis and this has made
it a well recognized brand, associated with quality and dependability.
The company operates through 15 regional offices and a widespread 300 strong
dealer network for sales and service.

HISTORY

1999: Company was founded in 1999

2000: In the year of 2000 company started manufacturing tractors.
2001: In this year, Indo Farm’s first tractor came into market, model 2050DI
2002: Indo Farm started the production of another modified tractor model
2040DI
2003: Indo Farm’s Chief Managing Director Mr. R.S. Khadwalia awarded the
prestigious ‘Bharti Entrepreneur of the year’ award
2004: Indo Farm started the production of two more tractor models 2035 DI
and 2030 DI
2005: Production of 3-Series tractors: 3065 DI, 3050 DI, 3040 DI, and 3035
DI started and also
 Mr. R.S. Khadwalia awarded the illustrious ‘Udyog Ratna Award’ by
Chief Minister of Himachal Pradesh.
2006: Indo Farm started exporting engine parts to Ursus (Polish world-class
company).
2007: Started export of complete engines to Ursus, Poland also,
 Started production of hydraulic pick-&carry cranes and engines for
diesel genset.
 Established own Foundry Division.
2008: Started export of generator engines to UK’s famous company Lister
Petter.
 Accredited with an ISO 9001:2008 certified company.
2009: Started production of Gensets
2010: Started production of Harvester combines.
2011: Started production of new generation crane model 16 FN
2012: Started production of rotary tiller
 Limca Book of Records- National record for Longest Himalayan
expedition on tractor covering 3623 kms in 14 days.
2013: Awarded the eminent ‘Emerging Brand in Agriculture Sector’ by ABP
News.
 The great Indian tractor journey from Baddi to Kanyakumari recorded
in Limca Book of Records for covering more than 7000 km in 20 days.
2014: Started production of Indo Power Cranes in the capacity of 18 and 23
ton.
2015: started production of 22 HP and 26 HP orchards tractors.
 Indo Farm awarded for ‘CZARS of North 2015’ Entrepreneurs of the
North Region 2015.
2016: Started production of tractors 48 HP to 65 HP in constant Mesh side
shifter transmission.
 Indo farm awarded for “Excellence in Business” by Zee News in “Zee
Excellence award-2016”. Young Achiever Award-2016 by India
Today.
 2017: Company’s COO Mr. Anshul Khadwalia awarded Top 30 under 30 by
Hindustan Times.
 Indo farm awarded for 50 most influential Rural Marketing
Professionals of India presented by World Brand Congress Asia.
 Launched own subsidiary NBFC i.e. Barota Finance Limited for
providing hassle free and quick finance to company’s esteemed
customers.

PLANT-

Commenced manufacturing operation initially in technical collaboration with

Ursus (Poland) in year 2000 at its plant located at Baddi, Himachal Pradesh. Plant
is spread over an area of 34 acres. Indo Farm commenced state of the art foundry
in 2006 spread over an area of 5 acres have been used in our captive grey iron and
SG iron Foundry.
Manufacturing Capacity of plant
1. 12000 tractors
2. 2400 cranes
3. 300 harvester combines
 4. 3600 gensets
5. 12000 rotary tillers
6. 18000 engines
State of art Machine shop having more than 150 modern machines, CMM, SPMs
and latest CNC machine centers for producing excellent quality components like
cylinder heads, Transmission housings, Blocks, Hydraulic housings, Gear boxes,
Axle tubes, Timing cases and covers, Differential cages, Fly wheel housings etc.

BACKWARD INTEGRATION (CASTING DIVISION)-

Company have state of the art foundry unit which is equipped with induction
furnaces, automatic molding line, pneumatic molding machines, sand plant fully
equipped with metallurgy and sand testing laboratory. Existing capacity of casting
division is 6000 tons/annum and area covered by this division are approx 5 acres,
helping the company for better quality for critical castings. Faster adaptation of
production cycles to meet the market demand, reduced inventories, Company
aims to serve as OEMs to other automobile manufacturers in future.
Vision and Mission

VISION
To offer high quality multi-featured fuel efficient agricultural equipment are
Industrial and construction machinery at optimum cost and deliver world class
performance, backed by excellent after-sales service.

MISSION
Company always focuses on gaining a leading market share globally by providing
dealers and customers with largest choice of unique world class products and
services.

MANAGEMENT
Managed by the professional team of managers and having rich experience in the
fields of design quality, development, manufacturing and marketing from the auto
Industry.

International Footprints
Indo Farm Equipment Limited is based in India with a global footprint across
more than 40 countries. Indo Farm products are marketed under the brand names
“INDO FARM” and “INDO POWER”.
Indo Farm Equipment Limited, India's Fastest growing Tractor, Crane, Generator
and Engines Manufacturing Company has shown tremendous growth in
International Markets by expanding its wings in all major agriculture markets of
the world. Indo Farm Equipment limited has already launched its new range of
products in Europe, Africa, North and South America and Asia.
The company has expanded its International Portfolio by adding new products
like Harvester Combine, Silent Generators to its existing product range of
Tractors and Pick and Carry Cranes.
Network
The network of the company is widely established to cover all the regions. For the
easy functionality and better service to its customers the company operates
through 13 regional offices. Furthermore there is a widespread network of
company’s dealers to maximize the sales and to provide service of their tractors
easily to the customers. Marketing team of Indo Farm consists of marketing
professionals and 400 plus dealers work together with the team of service
engineers to provide best service to our customers across the length and breadth
of the country. This wide network is constantly expanding to cover the entire
remaining region. To achieve the true meaning of globalization the company has
launched its various products in the market of Nepal. Furthermore the technical
specialist and spare parts specialist of the company are always there to solve any
problem of the customer making it the best service provider.

DEPARTMENTS
STD operates through a series of departments, which can be broadly classified
into:

1. Management
i. HR
ii. Finance
iii. Marketing

1. Production
i. Machine shop
ii. Assembly shop
iii. Heat treatment shop
iv. Paint shop
v. Material Testing Lab.
3. Support services
i. Engg. Department
ii. Research & Development
iii. stores
iv. Quality Control.
v. Maintenance
vi. SPD (Spare Part Division)

INDO FARM HR DEPARTMENT

The purpose of Indo farm Human Resource Department is to hire, train and
develop staff and where necessary to discipline or dismiss them. Through
effective training and development, employees at Enterprise achieve promotion
within the company and reach their full potential. This reduces the need for
external recruitment and makes maximum use of existing talent. This is a cost-
effective way for a business to manage its people. The HRM function not only
manages existing staff, it also plans for changes that will affect its future staffing
needs. This is known as workforce planning. For example:
1. The business may grow into new markets, such as Enterprise moving into
Tractor & Crane rental
2. It may use new technology which requires new skills e.g. global positioning
equipment
3. Staff may retire or be promoted, leaving gaps which need to be filled. The
training module provides a system for organizations to administer and track
employee training and development efforts. The system, normally called a
"learning management system" (LMS) if a standalone product, allows HR to track
education, qualifications and skills of the employees, as well as outlining what
training courses, books, CDs, web based learning or materials are available to
develop which skills. Courses can then be offered in date specific sessions, with
delegates and training resources being mapped and managed within the same
system. Sophisticated LMS allow Managers to approve training, budgets and
calendars alongside performance management and appraisal metrics.
4. Assigning Responsibilities Communication between the Employees.

INDO FARM MARKETING DEPARTMENT

Marketing is the process of communicating the value of a product or service to
customers for the purpose of selling that product or service. From a societal point
of view, marketing is the link between a society’s material requirements and its
economic patterns of response. Marketing satisfies these needs and wants through
exchange processes and building long term relationships. Marketing can be
looked at as an organizational function and a set of processes for creating,
delivering and communicating value to customers, and managing customer
relationships in ways that also benefit the organization and its shareholders
Marketing is the science of choosing target markets through market analysis and
market segmentation, as well as understanding consumer buying behavior and
providing superior customer value. There are five competing concepts under
which organizations can choose to operate their business;
1. The production concept,
2. The product concept,
3. The selling concept,
4. The marketing concept, and
5. The holistic marketing concept.
The four components of holistic marketing are relationship marketing, internal
marketing, integrated marketing, and socially responsive marketing. The set of
engagements necessary for successful marketing management includes, capturing
Marketing insights, connecting with customers, building strong brands, shaping
the market offerings, delivering and communicating value, creating long-term
growth, and developing marketing strategies and plans. Indo farm marketing
environment The marketing term refers to factors and forces that affect a firm’s
ability to build and maintain successful relationships with customers.
Three levels of the environment are:
 1. Micro environment (Internal) - forces within the company that affect its
ability to serve its customers.
2. The industry in which a company operates and the industry’s market(s).
3. Macro environment (National) - larger societal forces that affect the micro
Environment

INDO FARM FINANCE DEPARTMENT

1. It is duty of indo farm finance department of company to make the budget
before actual providing money to any department. It will be helpful to fulfill each
department with minimum cost. Finance department can take the past records
from respective department. It will be useful for making better budget.
2. In this function finance department gets money from capital market at very
low risk and cost. Finance department analyzes all the resources of funds and
create a good financial structure of company. In this structure, finance department
analyze whether it will decrease the overall cost of capital on average basis or not.
3. After making financial structure, finance department invests debenture holders
and shareholders money in best projects for getting highest return on investment
for this finance department has to take investment decision. These investment
decisions can be taken with the help of capital budgeting and investment analysis
techniques.
4. Management of taxes is also the function of finance or finance department.
Taxes may be direct or indirect. Finance department continue watches the
amendments and updates in tax laws and also create good corporate relation with
government by paying return of corporate tax on the time.
5. Finance department takes many measures for managing the financial risks of
company. For reducing loss of fund due to happening liquidity solvency or
financial disaster, finance department makes a good plan and also takes the help
of debt collectors’ insurance companies and other rating agencies for reducing
financial risk.
INDO FARM PRODUCTION DEPARTMENT
Indo farm Equipment Limited builds tractors from 33 to 110hp range. The
company also manufactures 9 to 30 ton cranes and 15 to 50 kv silent generator
sets. Ursus and Poland is its technical partners. The company is exporting their
products to many countries their manufacturing is fully computerized and began
manufacturing tractors designed by Central Mechanical Engineering Research
Institute (CMERI). Its engines were initially designed on the successful HMT
brand of engines, and gearbox as per PTL design. ITL currently is manufacturing
indo farm tractors between 18 HP to 90 HP, and the Renault CERES brand
between 60HP to 90HP. ITL went into collaboration with Renault Agricultural of
France in July 2000. Renault Agriculture is a subsidiary of the Renault Group.
Renault Agriculture was bought by CLAAS of Germany in 2003. Incidentally
CLAAS already has a strong presence in India market producing its Crop Tiger
range of Combine Harvesters in a plant in Baddi, and raised its production to
10000 tractors per annual.
ORGANISATION CHART OF INDO FARM

Chairman & Management

Director

Plant Head

Marketing & Sales Accounts Human Resources

Manager Manager Systems and procedures

Sales Manager Key Officials

Key Officials Sales executive

PRODUCT RANGE

1. TRACTORS

1 Series In series one, Indo Farm have two type of tractor models
(1022and1026) of 22HP and 26HP both are Four Wheel Drive.
2 Series In series 2, There are three model-2030DI, 2035DI, 2042DI,
Of 34HP, 38HP and 45HP respectively.

3 Series There are 8 multiple models in series 3; 3035DI-38HP, 3040DI-

45HP, 3048DI-50HP, 3055NV-55HP, 3055DI-60HP, 3065DI-65HP,
3075DI-75HP, 3090DI-90HP
4 Series The series 4 tractors includes both 2 Wheel Drive and 4 Wheel Drive.
Models are 4175DI, 4190DI, 4110DI with the range of 75, 90, 110
HP respectively.
2. CRANES

FN Series FN Series includes two models both having 4 Wheel Drive.

Models are as follow-
 INDO POWER-20 FN and
 15 FN having 64 feet height, 63 feet height and 4 Part
slotted boom respectively.
FNX Series Cranes of this series are of 2 Wheel Drive. In this series of cranes
Indo Farm have 3 different models
 INDO FARM-25 FNX,
 16 FXN, and
 14 FXN with height of 80, 63, 51 feet respectively.

IP Series In IP Series there are 15 Models all of them are 2 Wheel Drive.
 INDO POWER-9 & 11T (28 feet height)
 INDO POWER-12AV (Height 29, 36, 42 feet height)
 INDO POWER-14 (Height 29, 30, 36, 42, 55 feet)
 INDO POWER-16 (Height 65 feet and 55 feet)
 INDO POWER-18 (Height 65 feet)
 INDO POWER-26 (63 and 75 feet height)
ACTIVITIES OF VARIOUS DEPARTMENTS
There are following various departments in the Indo Farm Equipment Ltd.:
1. Human resource
2. Finance
3. Marketing
4. production
5. Research and Development
6. Q.A.
7. SCM (Supply chain management)
8. Spare part Division (S.P.D.)
9. Store

Objectives of different Departments

1. HUMAN RESOURCES:
HR department is the most important in an organization. Human resource should
be managed properly.

Functions of Human Resource department

 Conducting job analysis
 Planning manpower requirement and fulfilling it.
 Conducting training program for new employees and also for
managers.
 Manages wages & salaries.
 Providing incentives and other benefits
 Performance appraisal
 To maintain discipline
 Motivating employees
 Safety and Health.
Administrative Function
1. Liaoning with local and government bodies
2. Correspondence with various governmental and nongovernmental
organizations. All the Internal/external mail, letter and memo registered
items handled by this department
3. Security should be provided for safeguarding everything inside the factory
complex.
4. To monitor the daily inward and outward dispatch.

Personal Functions
1. Manpower planning
2. Ensuring optimum use to human resource employed.
3. Determining further recruitment level.
4. Forecasting future requirements of skill needs and training needs.

Recruitment
Recruitment is the process of finding right person at right time and stimulating
them to apply for job in the organization. Recruitment in Indo farm is carried
out based on departmental requirements.

1. Executives (asst. manager and above)

i. Recruitment done through the reference or consultants.
Probationary period of six months.
ii. CV is collected from the employees. It is filtered and list for
interview is prepared based on this CV. Interview is conduct under
the observation of HR and the respective departmental Head’s
Conducted in the corporate office.
 2. Staff (Supervisors, line employees)
i. Recruitment done through reference or consultants etc.

3. Machine Operators, welders, helpers- they are selected form local

environment or through labor contractors. First they are employed as
trainees, and then on probation period. After this, they will promote as
permanent employees of the organization. Employees are selected strictly
based on their educational qualifications, work experiences, technical
knowledge and age.

Introduction
1. 3-4 days induction program is conducted for the newly selected employees
2. 2 weeks classroom and on the job training is conducted by HR and Head
of the Department’s
3. During the induction program the company policies, rules and regulations,
plant overview, job overview are explained to the employees
4. The introduction helps the employees to gain information on the company
and the operation carried out.

Training
1. Annual training plan is prepared and conducted throughout the plan
2. Training conducted for the employees at all levels
3. After training, the effectiveness analysis is conducted
4. Different trainings are conducted are-
i. Orientation training
ii. On the job training
iii. External training
iv. Internal training
5. Pre training test and after training tests are conducted to measure the
effectiveness of the training.
IR (Industrial Relations)
1. HR plays an important role to maintain good relationship between the
employees and the departmental heads.
2. Frequent meetings are conducted between the HOD and the employees
3. Monthly departmental review meeting is also conducted to make the
employees aware of the departmental performances.

Grievance handling
1. Grievance handling is done by HR department and the associated
departmental heads. Employee grievance is given greater importance in
company; immediate action will be taken in case of grievance.

Separation
1. Notice period of one month through mail to HR or HOD’s
2. HOD’s decides to accept or reject the resignation
3. If accepted then HR sends the acceptance note to employee
4. An employee has to take clearance from admin/HR, finance dept. Then
submission of clearance form
5. Exit interview by HR or by head of the department
6. Experience, reliving letter on his last working day.

Attendance management
1. Attendance management of the employees is carried out by HR
department
2. Attendance of employees is taken through the punch system (through
fingerprint)
3. And manual attendance is taken for the contractual employees
The HR dept takes care of the statutory functions also-
1. Holidays calendar making
2. Remuneration/salary

All of the executives, workers/ operators earn salary on the last day of the month.

Salary structure of employee consists of-

1. Basic pay
2. HRA
3. Fixed Daily allowances.
4. Conveyance and other allowance.

2. FINANCE DEPARTMENT
For smooth functioning of every organization proper management of money is
important. Only with the proper money management a firm can identify it
strength and weakness in the financial structure. The IFEL also give importance
to its financial department.

Financial department functions

1. Passing of all miscellaneous advances.
2. To perform all works conducted with insurance coverage of fixed asset.
3. Keeping personal file of all the employees relating to salary computation
and manual increment.
4. yearly and quarterly financial reports preparation
5. To prepare profitability trend reports and wage analysis.
6. To make bank statements
7. Finalization of accounts
8. Preparation assisting the coordination at all work connected with it.
9. Make internal/external purchases.
10. Assisting statutory/auditors from head quarters.
Capital budgeting
The capital budgeting is done at the beginning of the financial year. The
requirement of capital will be specified for approval, during the budgeted year, if
any further requirement of fund is faced then a proper justification has to be
made. If the requirement is seen as an important one then approval of capital is
sanctioned.

Planning of funds
Planning of funds is a careful estimate made by the manager about the total funds
required by the company. This is the estimate done by the observation over the
physical activities of company.

Allocation of funds
Providing funds to proper place at right time is also an important task to be done
by financial manger of the company. He firstly studies the cash requirements of
each department then funds are distributed.

Recording of transactions
Every transaction that takes place in the company has to be recorded properly for
better control over the funds and optimality. All the transactions are recorded in
journal and then posted in ledgers.

Cost control
The cost controlled either in the acquisition of raw materials, reduction in the
opening expenses or both, as there should be limitation in the utilization of funds.
Company will always have a comparison of budgets.

Inventories
Inventories are valued at lower cost. For this purpose the cost of bought out
inventories comprises of the purchase cost of items and bringing them to factory
on FIFO bases. The cost of manufactured inventories comprises the direct cost of
production and appropriate overheads.

Retirement benefits
Liabilities of gratuity for employees determined based on actual valuation as on
the balance sheet of the company, date is funded with the Life Insurance
Corporation of India and the contribution there of payable is absorbed in the
accounts. Liability for leave encashment benefits determined based on actuarial
valuation as on the balance sheet date is provided for in the account.

3. SALES AND MARKETING:

This department manages relationship between customers, marketing and to
maintain current business and develop new business at a profitable margin they
collect information such as industry situation, economics, opportunities,
competitive feedback and completion analysis etc.
The main aim of marketing department is to identify the market demand and to
supply the good to fulfill the market demand.

Functions of marketing department

1. To follow the quality management system
2. Internal communication
3. To review the management
4. Communication with customers
5. Responding to queries on time
6. Follow up with production and its relevant functions to ensure delivery on
time
7. Shipment and Invoice
8. Handling customer complaints
 9. To ensure customer satisfaction
10. Promotional activities
11. Conduction customer satisfaction survey
12. To analyze new marketing activities and trend.

4. PRODUCTION DEPARTMENT
Production department is the major department in Indo Farm. It mainly handles
the production of Tractors and cranes. The main function of production
department is to manage the production of different products as per the
requirement and according to the schedule prepared by PPC (Production Plan and
control) department.

Functions of production department

The production department of Indo farm is divided into 3 sections. They are
Casting, Machine shop and Assembly shop.

The process flow of Production department is-

Casting division Machine shop Assembly shop

Ready for shipment PDI (Pre delivery inspection)

Casting division
In casting division metals are firstly cleaned to avoid any impurity in the mental
then molded in shape through high temperature furnaces. Large metal blocks (iron
etc.) are heated to high temperatures till they come in liquid state then filled into
molds then they are allowed to cool down to give them required shape.
Machine shop
In machine shop the parts from casting are washed to remove dirt etc. and this
shop the parts are made so that they can be used in assembly shop. It includes
making holes in the engine parts, polishing, finishing etc. according to the
requirement. The part number is generated of every part.

Assembly shop
In this shop the main work is done that is to assemble the different parts like
Tires, Steering wheel, Headlights, Engine every part is assembled here to form
finish goods. The flow process of assembly shop is follow-

Parts from machine shop Cleaning with air

Drying using air Line 2 (Front line Line 1 RT (Rear

pressure assembly) Transmission)

Coupling Hydraulic assembly Engine assembly

Chemical washing Scrubbing and then thinner is Taping is done on pipes

applied to remove oil grease and holes.
etc.
 After washing the next step is drying. For drying it is sent to oven then onto flash
booth.

Oven Flash booth Primer booth

Flash booth Paint booth Flash booth

Oven Ready for final assembly of steering wheel,

headlights etc.

After complete assembly the tractor is ready. Then it is sent to PDI (Pre delivery
Inspection) department for final testing so to ensure that the product is free from
any fault before handing over to the farmers. If any default is found then it is sent
back to production where it is resolved.

5. RESEARCH AND DEVELOPMENT

The main function of R&D department is to develop new products, for innovation
and to upgrade existing products and its features. Company’s research and
development play a major role in the success of the company although is focuses
on the product development and to optimize the quality of the product.

6. QUALITY ASSURANCE
The receiving inspection department of company checks for quality and
dimensions of incoming raw material from multiple vendors. Once the Goods
received note (GRN) is get issued by the store department to the incoming
material then the components are received and then some samples are sent for
inspection to inspection department.
Once the components are checked then they are accepted. The rejected materials
are kept in rejection section and then sent back to the supplier. On the bases of it
vendor ratings are prepared by supply chain department.

Functions of Q.A. department

1. To check the dimensions of the incoming tractor implements
2. To check quality of inbound material.

7. SUPPLY CHAIN DEPARTMENT

SCM ensures the right quality of goods at right place in right time without having
a delay. SCM ensures the availability of material to different departments in right
time and in right quantity for the aim of smooth functioning of the organization.

Functions of purchase department

One of the main tasks of SCM is vendor selection.
Following steps are taken in this process.-
1. To identify the component for purchase
2. Choosing the associated vendors from the approved list of vendors.
3. Send the design as per need to vendor and collect feasibility and then to collect
the quotation
4. Compare the quotation and the price.
After selecting vendor following processes are taken-
i. Vendor registration
ii. Supplier audit
iii. Creating vendor code
iv. Raising PO (Purchase order)
Purchase order plan
The SCM department prepares the purchase order plan on the basis of priority
requirement that is it may be in daily bases, weekly bases or monthly bases.

8. SPD (Spare Part Division)

This department handles with the spare parts of tractor and cranes that are needed
by the customers if replacement of a part is required. This department deals with
the management of spare parts it includes ordering parts through vendors, storing,
taking order from customers, keeping optimum level of inventory. The most
crucial decision is that how much quantity should be ordered to keep the
inventory at optimum level.

Functions
1. Order inventory
2. Store
3. Taking orders
4. Pick-pack order from SPD store
5. Dispatch
6. Takes records about material deficiency, material dispatch with material
details and dates etc.
7. To prepare MIS

Inventory ordering
Purchase order is send to the vendor it includes all information about the
requirement including price and quantity (Purchase orders are prepared in ERP’s
Indo farm uses SAP). Purchase order is of two types
i. One time P.O.
One time purchase order is prepared for urgent basis when the goods are needed
immediately. It includes part code and description.
ii. Regular P.O.
This regular purchase order is prepared for long term orders mainly for one year.
It also includes the schedule that describes at what time of the year the material is
required by the company (i.e. monthly requirement of parts).

Daily activities of SPD department-

When customer orders a spare part then following procedure is followed by the
SPD department-
Order is taken by two ways one is through mail and second is direct sale.
i. Order from customer
ii. Customer account is checked
iii. Checked for the availability of material, if available then
iv. Customer is notified about the price of the product including tax, then bill
is prepared
v. Then after order is collected from the store and packed.
vi. Company sticker with hologram is glued with every product ensuring the
customers that it is an original product.
vii. Dispatch after payment.
viii. Then at the end of day daily report is prepared (i.e. MIS is prepared it
includes placed orders, dispatched orders etc.) to track the orders.
ix. To send PO through mail to the vendors for ordering inventory.

9. STORE/ WAREHOUSE
The store department is for maintaining the stock of necessary parts/components
used for production. There are two types of stores in many production houses are
casting store where casting raw material that is associated with machine shop is
stored and component store where raw material needed in assembly shop is
stored. All the functioning is managed with the help of SAP.
Store process
When material entered into gate then the following steps are taken-
i. Gate inward of trailer
ii. Goods received by the management
iii. Samples of material is sent for quality check to Q.A. department
iv. After getting clearance from quality control the GRN (Goods
Received Note) is given by the Store department i.e. type of
permission that permits the supplier to unload the trailer/material
in the store.
v. Multiple copies of Invoices are issued for different departments
(i.e. one for accounts and one for store etc.)
vi. After storing components are inspected fully and stored, the
rejected components are kept to return back to the supplier.
vii. After storing the inventory level is updated in SAP.
 SWOT ANALYSIS
SWOT analysis is the study to the limitations, and highlights the strengths,
weakness, opportunities and threats to the company. For every organization
SWOT analysis is the best tool to analyze their strengths weaknesses threats and
opportunities to the company helping management to take appropriate decisions.

Strength:-

1. Research, Design and Testing dept.

2. High financial position
3. Young, Progressive, Energetic and Responsive management team.
4. Top management with rich industry experiences.
5. Open-minded culture i.e. open-door policy.
6. Good investor’s relationship.

Weakness:-

1. Low promotional activities.

2. Most of the peoples don’t know about the company and its products.
3. Import of tractor and crane Parts..

Opportunities:-

1. Agricultural machineries, highly required by farmers in the country.

2. More fuel efficient and powerful machines in upcoming days.
3. Increasing fuel prices (Fuel efficient).
Threats:-

Threats: elements in the environment that could cause trouble for the business or
project are the threats for the business.

1. Competitors having advanced technology.

2. Threat of availability of skilled labor
3. Price comparison with competitors.
4. Economic change. (e.g. G.S.T.)
 ETHICAL AND BEST PRACTICES

Handling of confidential information

They strictly maintain confidential information of the group, and will not disclose
or divulge such information without following the regulation, both as current
employees and after leaving the employ of the group. They should not use the
confidential of the Group for unjust or unfair purposes, both as current employees
and after leaving the employee of the Group. They should not receive or access
confidential information through unjust means of clients, other business partners
or competitors.

Protecting personal information

It should recognize the importance of protecting personal information will
observe internal regulations and policy on protecting personal and will conduct
proper acquisition, use and provision of personal information of individuals. Also,
through establishing the necessary and appropriate security measures, we will
strive for the prevention and rectification of divulgence, loss or impairment of
personal information of individuals handled.

Strict observance of laws and regulations

They should observe all applicable laws and regulations and internal regulations
including this code of conduct, such that all corporate activities conform to sound
business practices and social ethics.

Prohibition against Insider Trading

They should not purchase or sell securities, including stocks, on the basis of non-
public information on the Group or other companies that may be acquired in the
course of one’s duties or transactions or by means. Also, we will not use such
information to benefit or accommodate a third party.
Prohibition against Participating in Anti-Social Behavior
Company have a resolute position regarding, anti-social influences and groups
that threaten peace and security of society, completely shutting out any ties.

Establishing a Relationship of Mutual Trust with Clients or customer

Company always maintains transparent and fair relationship with clients and
competitors will strictly observe all laws and regulations and will conduct fair
transactions in accordance with social ethics. Company has been conduct all
contracting and worker dispatching businesses according to the laws and
regulations.

Disclosure of corporate Information

Aiming to be a firm highly transparent management that is trusted by society, we
will disclose corporate information in a timely and appropriate fashion, and
promote active communications with all stakeholders including shareholders.

Contribution to the Local Community

It should contribute to the healthy development and harmony of the local
community as a member through our daily activities.

Strict observance of the companies Act and the financial instruments and
exchange Act
It should contribute to the healthy development and harmony of the local
community as a member through our daily activities.

Proper Accounting and information Disclosure

It conducts accounting and tax returns. and will make timely and appropriate
disclosures to shareholders and investors regarding current condition of the Group
and overall corporate activities.
Prohibition against discrimination
They should not discriminate on the basis of birthplace, nationality, race,
ethnicity, beliefs, religion, sex, age, disability or any other individual personal
traits.

Prohibition against Sexual Harassment

It should not engage in sexual harassment or in a conduct that may be
misunderstood by another as sexual harassment, and will not engage in an
unwelcomed sexual behavior or conduct toward another.

Safety of the Workplace

They are fully devoted to occupational safety and health, including those as
described in the rules of employment, and strive for the prevention of labor/
employees injuries and for the creation of a comfortable workplace environment,
working to maintain the health of all directors, officers and employees. They
creating a comfortable workplace environment, as each person should endeavor to
keep the workplace tidy and in order, will maintain cleanliness and has been work
toward the formation of healthy interpersonal relationships.

Good Moral Behavior

Whether at work or outside the workplace, they should not engage in illegal or
anti-social activities. Directors, officers and employees will always maintain high
self-awareness, bearing in mind dignity and morals, striving to raise corporate
value.
 FINDINGS, SUGGESTIONS AND CONCLUSION

FINDINGS
1. Quality product.
2. Nice working atmosphere for employees.
3. Lunch for every guest or visitor.
4. High attrition rates.
5. Shortage of helpers/workers.
6. Lack of advertisement and other promotional activities.
7. Employees are not awarded, if they work more than their capability (e.g.
star of the month award).
8. Majority of peoples working in are men.
9. Biometric is used to take attendance
10. Manufacturing unit is maintained well, clean and hygiene.

SUGGESTIONS
1. Time to time updated with new technology in the employees.
2. Time to time provide the training to the employees and workers.
3. There is a need to work on more advanced technology.
4. Should provide travelling facility to the workers as well.
5. There should have extracurricular activities than work.

CONCLUSION
From this training work done in Indo farm Equipment Ltd. the
respondents/farmers are satisfied with the Products of company. The reason
because high power and fuel efficient tractors. They are able to provide good
after sale services and are able to maintain good relation with customer.