HYUNDAI MOTORS PRIVATE LTD

CHAPTER – 1

INTRODUCTION

INTRODUCTION OF THE STUDY

The automotive industry has witnessed significant growth and evolution over
the years, with numerous companies vying for market share and consumer loyalty.
One such prominent player is Hyundai Motor India, a subsidiary of Hyundai Motor
Company, one of the world's largest automobile manufacturers. Established in 1996,
Hyundai Motor India has emerged as a leading automotive brand in the Indian market,
offering a diverse range of vehicles that cater to the varied preferences and needs of
consumers. This study aims to conduct a comprehensive organizational analysis of
Hyundai Motor Company, delving into various aspects of the company's structure,
culture, management practices, strategic decisions, and performance. By examining
these facets, we seek to gain valuable insights into the factors that have contributed to
Hyundai's success and its ability to thrive in a fiercely competitive industry.
As we dive into this analysis, we will explore the company's organizational
structure, identifying the key departments, their roles, and the lines of communication
that drive Hyundai's operations. Understanding the organizational structure will shed
light on how the company manages its resources, promotes collaboration, and
facilitates decision-making processes. Additionally, we will delve into Hyundai's
corporate culture and values, as these elements play a crucial role in shaping the
company's identity, guiding its employees, and influencing its relationship with
customers and partners. Analyzing the corporate culture will help us understand the
principles that govern Hyundai's actions and how they align with its overall objectives
and brand image. Furthermore, we will investigate Hyundai Motor India's
management practices and leadership approach, studying how the company sets its
strategic goals, executes plans, and adapts to the ever-changing market dynamics.
Examining the management practices will provide insights into the company's ability
to innovate, respond to challenges, and maintain a competitive edge. Moreover, the
study will assess Hyundai's performance metrics and financial standing, considering
factors such as market share, revenue growth, profitability, and customer satisfaction.
By analyzing the company's

1
performance, we can evaluate the effectiveness of its strategies and operational
efficiency.
In conclusion, this organizational analysis of Hyundai Motor aims to offer a
comprehensive understanding of the company's inner workings, strategies, and
accomplishments. By examining its structure, culture, management practices, and
performance, we can gain valuable insights that will not only enhance our
understanding of Hyundai as a successful automotive company but also provide
valuable lessons for other players in the industry.

2
OBJECTIVES OF THE STUDY

 To analyze Hyundai Motor India's hierarchical setup, reporting lines, and

division of responsibilities to understand how departments collaborate to
achieve objectives.
 To investigate market entry, product positioning, pricing, marketing, and
expansion plans to align goals with market opportunities.
 Identify core strengths driving success and potential weaknesses affecting
growth.
 To analyze about various departments involved in the Hyundai Motors
India.

3
INDUSTRY PROFILE

The automobile industry in India plays a significant role in the country's

overall economic growth and development. It has emerged as one of the largest
industries in India, contributing significantly to the manufacturing sector and
generating employment opportunities for millions of people. India's automobile
industry encompasses a wide range of vehicles, including passenger cars, commercial
vehicles, two-wheelers, and three-wheelers

The Indian government has implemented several policies and initiatives to

promote the growth of the automobile industry. These include incentives for research
and development, investments in infrastructure, tax reforms, and the promotion of
electric and hybrid vehicles. Various manufacturing clusters and automotive parks
have also been set up to attract investments and foster a favorable business
environment. The automobile industry in India has witnessed significant expansion
and technological advancements over the years. It has become a major exporter of
automobiles and auto components to various countries around the world. Indian
manufacturers have been recognized for their cost-effective production capabilities
and the ability to cater to diverse market demands.

The industry also faces challenges such as evolving consumer

preferences, increasing competition, and the need to comply with stringent emission
norms. To address these challenges, automobile manufacturers in India are focusing
on developing fuel-efficient vehicles, electric and hybrid models, and adopting
advanced manufacturing processes. The automobile industry in India holds immense
potential for growth and innovation. It continues to contribute to the country's GDP,
foreign exchange earnings, and employment generation, making it a key driver of
India's economic progress in the global automotive arena.

The organization analysis of Hyundai Motor India Ltd is an MBA project

that aims to conduct an in-depth examination of one of India's prominent automotive
manufacturers. Hyundai Motor India Ltd, a subsidiary of the global automotive giant
Hyundai Motor Company, has achieved remarkable success in the Indian market since
its inception in 1996. This project will explore various aspects of the company's
organizational structure, management practices, business strategies, and overall
performance in the highly competitive Indian automotive industry.

4
COMPANY PROFILE

ABOUT HYUNDAI MOTOR INDIA COMPANY

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of

Hyundai Motor Company, South Korea and is the second largest and the fastest
growing car manufacturer in India. HMIL presently markets over 25 variants of
passenger cars in six segments. HMIL’ s manufacturing plant near Chennai boasts of
the most advanced production, quality and testing capabilities in the country. In
continuation of its commitment to provide the Indian customer with global
technology, HMIL has set up its second plant, produces an additional 300,000 units
per annum, raising HMIL’s total production capacity to 6,00,000 units per annum.
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of
Hyundai Motor Company (HMC), South Korea and is the second largest and the
fastest growing car manufacturer in India. HMIL presently markets34 variants of
passenger cars across segments. The SANTRO in the B segment, the Getz Prime and
the i10 in the B+ segment, the Accent and the Verna in the C segment, the Sonata in
the E segment and the Tucson in the SUV segment. Established in 1967, Hyundai
Motor Co. has grown into the Hyundai-Kia Automotive Group which was ranked as
the World’s Fifth- Largest Automaker in 2007 and includes over two dozen auto-
related subsidiaries and affiliates.

.
HYUNDAI MOTOR INDIA LOGO
Employing over 75,000 people worldwide, Hyundai Motor posted sales of
US$74.9 billion in 2007 on a consolidated-basis and US$32.8 billion on a non-
consolidated basis (using the average currency exchange of 929 won per US dollar).
Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and
showrooms.

5
VISION AND MISSION
Mission - To create exceptional automotive value for our customers by
harmoniously blending safety, quality and efficiency. With our diverse team, we will
provide responsible stewardship to our community and environment while achieving
stability and security now and for future generations.

Vision - We will deliver greater benefits and value to our customers by

securing cost competitiveness in the global market. Hyundai Motor Company is
striving to provide freedom of movement to everyone by investing in mobility
services, by building close relationship with leading mobility service providers and
expanding our role beyond the automotive transportation sector.

OBJECTIVE OF THE COMPANY

1. Hyundai Motor Company's main goal is to establish itself as a leading
global automotive company. It aims to achieve this by offering customers
high- quality, innovative vehicles that go beyond their expectations.
2. Continuous Improvement: Hyundai is dedicated to the ongoing
enhancement of its products and services. By continuously improving its
offerings, the company seeks to increase customer satisfaction and maintain
a competitive edge in the market.
3. Profitability and Sustainable Growth: Alongside its commitment to
customer satisfaction, Hyundai also prioritizes financial success. It strives
to achieve profitability while ensuring that its growth is sustainable in the
long term.
4. Environmentally-friendly Technologies: Hyundai recognizes its
responsibility towards environmental preservation. As a part of its efforts,
the company actively implements environmentally-friendly technologies
and practices across its operations.

6
OUR PRODUCTS

CROSSOVERS/SUVS

The Tucson is currently the best-selling

Hyundai vehicle. Hyundai entered the cross over
SUV market early with the Santa Fe in 2000,
followed by the smaller Tucson in 2004. The
Santa Fe was a huge hit with American and
European markets, despite receiving criticism in
the past for Hyundai's obscure looks. It quickly became Hyundai's best seller and was
one of the reasons Hyundai survived despite having their sales declined. As of 2020,
Hyundai has sold more than 5,260,000 units of Santa Fe globally.

The first-generation Tucson shared its Elantra-based platform with the Kia
Sportage. In most countries apart from South Korea and the United States, the Tucson
was retired for the Hyundai ix35 from 2009 to 2015. However, the Tucson name was
restored for the third generation, where it was to be used across all markets. It was
unveiled at the Geneva Motor Show in 2015. The Tucson is the fourth best-selling
SUV in the world in 2020, with a total sales of 451,703 units, below the Toyota
RAV4, Honda CR-V, and Volkswagen Tiguan .By mid-2010s, Hyundai moved into
developing smaller crossover SUV models, starting from the Creta (ix25 in China)
from 2014, and the Kona in 2017. The Kona is also consisted of a hybrid electric and
a pure battery electric variant. By 2019, both model became the third and fourth-
bestselling vehicle of the brand, while the Creta has been the best-selling SUV in
Russia since 2016, and India in 2020. In 2021, Hyundai released its first crossover
SUV model in the South Korean light car segment, the Casper.

It is the first venture of the brand in the segment in 15 years, and also the
smallest automobile the brand produces of any kind. Currently, Hyundai produces 12
crossover SUV models for different markets.

7
HYBRID AND ELECTRIC VEHICLES

Hyundai Motor Company began developing flexible-fuel vehicles (FFVs) in

1988. The test vehicle was 1991 MY Scope FFV. Since March 1992, in Seoul, Korea,
through at least November 1993, field trials of several FFVs had been performed over
more than 30,000 miles. The Hyundai Sonata Hybrid uses a lightweight lithium
polymer battery.

The new hybrid-electric FGV-1

was unveiled at the Seoul Motor Show in
1995 which featured full-time electric
drive technology. The 1995 FGV-1 was
the result of Hyundai's first experiments
with hybrid propulsion systems in 1994.
The FGV-2
was the second vehicle to be produced. The company is using the "parallel" type
design, which utilizes either the internal combustion engine or the electric motor.
Others are the Elantra HEV and the Hyundai Accent HEV, which were unveiled in
1999 and 2000, respectively. The first pure electric car developed by Hyundai was the
Sonata Electric Vehicle in 1991. The car started as a Sonata sedan-based model.
Hyundai planned to have six electric vehicles available for testing by the end of 1992.

Hyundai began mass-producing hybrid electric vehicles in 2008. The company

is using Hybrid Blue Drive, which includes lithium polymer batteries, as opposed
to lithium-ion.

The new hybrid Sonata made its debut at the Los Angeles International Auto
Show in November 2008. The 2011 Sonata Hybrid sales in the U.S. began in
February 2011.

In 2009, Hyundai released the Avante LPI Hybrid in the South Korean
domestic market in July. Hyundai showcased also the Hyundai Blue On, an electric
prototype of i10, was first unveiled at the Frankfurt Motor Show in 2009. At the 2010
Geneva Motor Show, Hyundai unveiled the i-flow, a concept car using a variant of the
BLUE- WILL hybrid system.

As of March 2014, cumulative global sales of hybrid models total 200,000

units, including both Hyundai Motors and Kia Motors hybrid models. In 2016,
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Hyundai revealed the Ionic five-door lift back to rival the Toyota Prius.

9
 The nameplate Ionic is a portmanteau of ion and unique. It is the first
automobile to be offered in hybrid, plug-in hybrid, and all-electric variants with no
"standard" internal combustion engine only version. The hybrid variant launched in its
home market in February 2016, followed by the electric model in July 2016. The
plug- in hybrid version followed in February 2017. The Hyundai Ionic 5 is the first
Hyundai model developed on the E-GMP platform.

In August 2020, the company announced the launch of Ionic as its own new
electric brand and confirmed three new electric cars that will be sold under the sub-
brand. Ionic is Hyundai's second stand-alone brand after the Genesis.

The new brand is going to utilise

Hyundai's Electric Global Modular Platform (E-
GMP), which they claims will enable "fast
charging capability and plentiful driving
range." The automaker said the first of the three
new global models will be the Ionic 5, a midsize
crossover, arriving in early 2021. It will be
followed by the Ionic 6 sedan in late 2022, and then by the Ionic 7, a large SUV, in
early 2024. New models will be named numerically, with even numbers for sedans,
and odd numbers for SUVs.

In December 2020, Hyundai Motor Group announced details about its E-

GMP platform that will be the underpinning of new Hyundai and Kia electric vehicles
starting in 2021. Apart from Hyundai, Ionic, and Kia brands, it will also be used for
future Genesis electric cars.

The platform's main components is a battery pack under the cabin and an all-in-one
motor, transmission, and inverter designed and developed by Hyundai. By bundling
the components, Hyundai said, it raised the maximum speed of the motor by up to 70
percent compared to existing motors, despite its small size. The company claimed that
it is capable to handle power output up to 600 hp (608 PS; 447 kW) from the system.

In February 2020, Hyundai launched its first vehicle built above the E-GMP
platform, the Ionic-5. It is the first product to be marketed under the Ionic sub-
brand. At its introduction, it is the most advanced electric vehicle produced by
Hyundai. Its battery can be charged from 10 to 80 percent in 18 minutes with its 800
V charging
10
capabilities by using a 350-kW charger. A five minutes charge will add 100 km (62
mi) to its range by WLTP standards.

Its claimed maximum range is 480 km (298 mi) for the rear-wheel-drive 72.6
kWh variant. In July 2022, Hyundai announced its new automotive factory in South
Korea, solely dedicated for electric vehicles and with production set to begin in 2025.
It will be the first Hyundai plant to open in South Korea since 1996.

Hyundai is currently expanding its full-electric lineup by adding the Ionic 6 to

its lineup, which debuted in Europe in the second half of 2022, and in the United
States in spring of 2023. Hyundai is also expanding its full-electric lineup with the
Ionic 7, which is projected to hit the market in 2024.

HYDROGEN VEHICLES

In March 2018, Hyundai launched a hydrogen powered crossover

SUV the Nexo. In October 2020, South Korean domestic sales of the Nexo exceeded
10,000 vehicles. As of July 2020, Hyundai had exported only 769 vehicles to the
United States and Europe with supply limited due to domestic demand. In 2020,
Hyundai launched a hydrogen powered version of its Xcient truck the Xcient Fuel
Cell delivering seven vehicles to customers in Switzerland. The Xcient Fuel Cell is
the world's first production hydrogen fuel cell truck. In 2019, Hyundai formed
Hyundai Hydrogen Mobility (HHM) together with Swiss company H2 Energy to
lease trucks to Swiss customers with plans to deliver 50 trucks by 2020. Hyundai
chose to launch in Switzerland as its road tax does not apply to zero-emission trucks
and for its ability to produce hydrogen using hydropower. HHM formed a partnership
with Hydrospider, a joint venture of H2 Energy and Linde to produce hydrogen and to
build hydrogen refuelling infrastructure in Switzerland.

The 34-ton Xcient Fuel Cell has a 190 kW fuel cell supported by a 73 kW
battery pack that stores energy from the fuel cell and from braking, seven hydrogen
tanks, a maximum speed of 85 km/h (53 mph), a driving range of about 400
kilometres (250 mi) and a refuelling time of between 8 and 20 minutes.

11
 HYUNDAI NEXO

In 2020, Hyundai launched a hydrogen powered version of its Elec City bus
the Elec City FCEV that has a capacity of 44 passengers with 24 seats and 20 standing
seats. The bus has a 180 kW fuel cell supported by a 156 kW battery pack, five
hydrogen tanks, a driving range of 434 kilometres (270 mi) and a refuelling time of 15
minutes. In 2020, Hyundai exported two buses to Saudi Arabian oil company Saudi
Aramco for demonstration. In December 2021, Hyundai suspended development of its
Genesis, and possibly its other, hydrogen cars.

MOTOR VEHICLES

Hyundai entered motorsport by competing in the F2 class of the World Rally

Championship in 1998 and 1999. In September 1999, Hyundai unveiled the Accent
WRC, a World Rally Car based on the Hyundai Accent. The Hyundai World Rally
Team debuted the car at the 2000 Swedish Rally and achieved their first top-ten result
at that year's Rally Argentina, when Alister McRae and Kenneth Eriksson finished
seventh and eighth, respectively. Eriksson later drove the car to fifth place in New
Zealand and fourth in Australia. In 2001, Hyundai debuted a new evolution of the
Accent WRC, which was intended to improve reliability, but the performance of the
car was still not good enough to challenge the four big teams
(Ford, Mitsubishi, Peugeot and Subaru). However, at the season-ending Rally GB, the
team achieved their best result with McRae finishing fourth and Eriksson sixth. For
the 2002 season, Hyundai hired the four-time world champion Juha Kankkunen, along
with Freddy Loix and Armin Schwarz. Kankkunen's fifth place in New Zealand was
the team's best result, but they managed to edge out Skoda and Mitsubishi by one
point in the battle for fourth place in the manufacturers' world championship. In
September

12
2003, after a season hampered by budget constraints, Hyundai announced withdrawal
from the WRC and planned to return in 2006, which did not happen.

Alister McRae driving an Accent WRC at the 2001 Rally Finland

In 2006, following the announcement that Korea was scheduled to earn

a Formula One Grand Prix, Hyundai planned to enter the sport. The Korean Grand
Prix was first held in 2010, but Hyundai have not entered the championship. Hyundai
announced they would be revealing their future rally plans at the 2011 Chicago Auto
Show, on 9 February. The current plans for rallying are focused around the newest
Hyundai release, the Veloster. In September 2012 Hyundai announced that they were
due to start the WRC with a rally model of its i20 to rival the likes of the Ford Fiesta,
the Citroen DS3 and the Mini Countryman.

Hyundai i20 WRC

The Hyundai i20 WRC is a World

Rally Car built by Hyundai for use in the
2014 World Rally Championship. It is based
on the Hyundai i20 subcompact car, and was
unveiled at the 2012 Paris Motor Show. The
launch of the i20 marks Hyundai's return to
the World Rally Championship after a ten-
year absence. The car is scheduled to make its first competitive appearance at the
2014 Rallye Monte Carlo, but may compete during the 2013 season to aid
development. The car will be operated by Hyundai's performance division, Hyundai
Motorsport from a base in Frankfurt, Germany.

13
COMPETITORS

Hyundai Motors' key competitors:

1. Maruti Suzuki India Limited: Maruti Suzuki is the leading car manufacturer in
India and holds a significant market share in various segments, including compact
cars, hatchbacks, and SUVs.

2. Tata Motors Limited: Tata Motors is a major Indian automobile manufacturer that
produces a wide range of vehicles, including passenger cars, commercial vehicles, and
utility vehicles.

3. Mahindra & Mahindra Limited: Mahindra is known for manufacturing SUVs,

MUVs, and commercial vehicles, and it competes with Hyundai in the SUV and
utility vehicle segments.

4. Honda Cars India Limited: Honda manufactures a variety of cars and competes
with Hyundai in the mid-size sedan and hatchback segments.

5. Ford India Private Limited: Ford offers a range of vehicles, including compact
cars and SUVs, and competes with Hyundai in various segments.

6. Renault India Private Limited: Renault produces hatchbacks, compact SUVs, and
sedans, competing with Hyundai in these segments.

7. Nissan Motor India Private Limited: Nissan manufactures compact SUVs,

hatchbacks, and sedans and competes with Hyundai in certain segments.

8. Kia Motors India: Kia, a sister company of Hyundai, operates in India and
produces SUVs and compact cars that compete with Hyundai's offerings.

9. Toyota Kirloskar Motor Private Limited: Toyota is a global automobile giant

that manufactures various cars and SUVs, competing with Hyundai in specific
segments.

10. Volkswagen India Private Limited: Volkswagen offers a range of cars,

including hatchbacks and sedans, and competes with Hyundai in certain market
segments.

14
FINANCIAL STATEMENT

Income Statements
By differentiating the core competencies and securing the competitive advantages,
Hyundai Corporation achieves long-term growth and sustainable and stable profits.

2022 2021 2020 2019 2018

Income Statement (Consolidated)

Sales 61,270 37,825 28,808 42,634 47,140

Cost of Sales 59,682 36,714 27,782 41,426 45,874

Gross Profit 1,587 1,111 1,027 1,208 1,267

Selling General Administrative Expenses 919 760 694 773 762

Operating Income 668 351 332 435 505

Other Gains 2,368 853 1,061 786 665

Other Losses 1,999 664 744 963 1,132

Financial Income 640 258 230 223 292

Financial Costs 772 308 489 314 367

Income before Income Taxes 905 562 539 168 -38

Income Tax Expenses 119 182 45 3 489

Net Income 787 380 494 164 -867

15
Income Statements (Separate) 2022 2021 2020 2019 2018

Sales 43,113 28,767 20,811 32,114 34,751

Cost of Sales 42,224 28,167 20,206 31,261 33,870

Gross Profit 889 600 605 853 881

Selling General Administrative

596 515 481 573 584
Expenses

Operating Income 293 84 123 281 281

Other Gains 2,217 560 629 594 536

Other Losses 1,661 464 543 639 944

Financial Income 632 255 296 218 284

Financial Costs 695 244 418 272 327

Income before Income Taxes 786 499 495 164 -45

Income Tax Expenses 1 -125 -12 -10 -28

Net Income 787 374 484 155 -73

16
 Financial Position
By differentiating the core competencies and securing the competitive advantages,
Hyundai Corporation achieves long-term growth and sustainable and stable profits.

Balance Sheet (Consolidated) 2022 2021 2020 2019 2018

Total Assets 18,313 17,073 12,190 14,445 10,981

Current Assets 12,352 11,114 6,593 8,515 8,831

Non-Current Assets 5,960 5,959 5,597 5,930 2,150

Total Liabilities 13,947 13,445 9,045 11,028 7,922

Current Liabilities 9,773 8,737 4,613 6,754 7,296

Non-Current Liabilities 4,175 4,707 4,432 4,274 626

Total Shareholders’ Equity 4,366 3,628 3,144 3,417 3,059

Capital Stock 661 661 661 661 661

Capital Surplus – – – – –

Accumulated Other Comprehensive Income 735 726 542 1,135 858

Retained Earnings 5,755 5,042 4,746 4,335 4,257

Other Reserves -2,821 -2,819 -2,819 -2,729 -2,729

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 Balance Sheet (Separate) 2022 2021 2020 2019 2018

Total Assets 13,087 11,856 7,868 9,776 9,073

Current Assets 8,630 7,830 4,367 6,061 6,133

Non-Current Assets 4,458 4,026 3,500 3,714 2,939

Total Liabilities 8,786 8,267 4,759 6,386 6,030

Current Liabilities 7,967 6,892 3,610 5,230 5,422

Non-Current Liabilities 820 1,374 1,148 1,156 608

Total Shareholders’ Equity 4,301 3,589 3,109 3,390 3,042

Capital Stock 661 661 661 661 661

Capital Surplus – – – – –

Accumulated Other Comprehensive

720 720 532 1,125 846
Income

Retained Earnings 5,746 5,033 4,741 4,339 4,270

Other Reserves -2,826 -2,825 -2,825 -2,735 -2,735

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ORGANISATIONAL CHART

CHAIRPERSON

EXECUTIVE
DIRECTOR

ENGINEERING QUALITY FINANCE MANAGEMENT

DEPARTMENT CONTROL DEPARTMENT DEPARTMENT
DEPARTMENT
AUTOMOTIVE
DESIGN DESIGN
QUALITY FINANCE
MANAGER MANAGER HR EXECUTIVE
CONTROL MANAGER
MANAGER
AUTOMOTIVE DESIGN
ENGINEER STAFF
STAFF QUALITY ACCOUNTANT HR MANAGER
CONTROL
SUPERVISOR

AUDITOR RECRUITER
QUALITY
CONTROL
STAFF

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 CHAPTER – 2

FUNCTIONAL DEPARTMENTS

Hyundai Motors India Ltd is a major automobile manufacturer with a

comprehensive organizational structure. The company's functional departments play
crucial roles in different aspects of the business. Here are the various functional
departments typically found at Hyundai Motors India Ltd.

Human Resources Department (HR)

Responsible for managing employee recruitment, training, performance

evaluation, benefits administration, employee relations, and fostering a positive work
culture. Human Resources (HR) Department at Hyundai Motors India Ltd: The
Human Resources (HR) Department at Hyundai Motors India Ltd plays a pivotal role
in managing the company's most valuable asset - its employees. The HR team is
responsible for various essential functions that contribute to the overall success and
effectiveness of the organization. Here is an overview of the key responsibilities of

HR DIRECTOR

HR MANAGER

RECRUITMENT HR ADMIN MANAGER

HR PAYROLL MANAGER
MANAGER
the HR department at Hyundai Motors India Ltd.

 Employee Recruitment and Selection: The HR department is in charge of

attracting and hiring the right talent for various positions within the
organization. They collaborate with different departments to understand their
hiring needs, create job descriptions, conduct interviews, and make job offers
to qualified candidates.
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 Training and Development: HR ensures that employees have access to the
necessary training and development programs to enhance their skills,
knowledge, and capabilities. These initiatives are designed to align employees'
competencies with the company's strategic objectives.
 Performance Evaluation and Appraisals: The HR team implements
performance evaluation systems to assess employee performance and provide
feedback on their achievements and areas for improvement. They also help in
setting performance targets and KPIs (Key Performance Indicators) for
different roles.
 Benefits Administration: HR is responsible for managing employee benefits,
including health insurance, retirement plans, paid time off, and other perks.
They ensure that employees understand their benefits packages and assist in
addressing any related queries or issues.
 Employee Relations: HR serves as a mediator between employees and
management, handling concerns, grievances, and disputes in a fair and
unbiased manner. They aim to maintain a harmonious work environment and
foster positive relationships among team members.
 Employee Engagement and Retention: The HR department takes initiatives
to boost employee morale and engagement through various activities,
recognition programs, and team-building exercises. They also work on
retention strategies to keep top talent within the organization.
 Workforce Planning: HR collaborates with other departments to forecast
workforce needs based on business objectives and growth plans. They assess
the current and future talent requirements and develop strategies to meet those
needs.
 HR Policies and Compliance: HR formulates and updates HR policies and
procedures to ensure compliance with labour laws, industry regulations, and
company standards. They educate employees about these policies and handle
any compliance-related matters.
 HR Data and Analytics: HR utilizes data and analytics to gain insights into
workforce trends, performance, and employee satisfaction. This data-driven
approach helps in making informed decisions and implementing effective HR
strategies.

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Finance and Accounting Department

Handles financial planning, budgeting, accounting, financial reporting,

taxation, and financial analysis to ensure the company's financial health and
compliance. Finance and Accounting Department at Hyundai Motors India Ltd

The Finance and Accounting department at Hyundai Motors India Ltd plays a critical
role in managing the company's financial activities and ensuring its financial health
and compliance. This department is responsible for a range of functions and tasks,
including.

CHIEF FINANCIAL OFFICER

INTERNAL AUDITOR
CONTROLLER TREASURER

MANAGERIAL ACCOUNTANT
FINANCIAL ACCOUNTANT
TAX ACCOUNTANT

 Financial Planning: The Finance and Accounting department is involved in

creating long-term financial plans and strategies for the company. This
includes setting financial goals, forecasting future financial performance, and
developing action plans to achieve these objectives.
 Budgeting: The department is responsible for developing and managing the
company's budget. This involves allocating financial resources to various
business units and projects, ensuring that the budget aligns with the company's
overall strategic goals.

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 Accounting: Handling all accounting activities, including recording financial
transactions, preparing financial statements (such as the balance sheet, income
statement, and cash flow statement), and maintaining accurate financial
records.
 Financial Reporting: Preparing and presenting financial reports to the
management and other stakeholders. These reports provide insights into the
company's financial performance, highlighting key metrics, and comparing
actual results with budgets and forecasts.
 Taxation: Managing the company's tax obligations, including calculating and
filing income tax, GST (Goods and Services Tax), and other taxes in
compliance with relevant laws and regulations.
 Financial Analysis: Conducting financial analysis to evaluate the company's
financial performance, profitability, liquidity, and efficiency. This helps in
identifying areas of improvement and making informed financial decisions.
 Internal Controls: Implementing and monitoring internal controls to
safeguard the company's assets, prevent fraud, and ensure the accuracy and
reliability of financial information.
 Financial Compliance: Ensuring compliance with financial laws, accounting
standards, and regulations set forth by regulatory authorities and relevant
government bodies.
 Treasury Management: Managing the company's cash flow, liquidity, and
working capital to optimize financial resources and minimize financial risk.
 Capital Budgeting: Evaluating potential investment opportunities and
projects to determine their financial viability and contribution to the
company's growth.
 Financial Risk Management: Identifying and managing financial risks, such
as foreign exchange risk, interest rate risk, and credit risk, to mitigate potential
adverse impacts on the company's financial position.
 Financial Forecasting: Using historical financial data and market trends to
forecast future financial performance, aiding in decision-making and resource
allocation.

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 Research and Development (R&D)

Focuses on technological advancements, product innovation, and engineering

research to enhance vehicle design, performance, and safety.

The Research and Development (R&D) department at Hyundai Motors India Ltd is a
crucial component of the company's success. This department is primarily responsible
for driving technological advancements, product innovation, and engineering research
to continuously enhance vehicle design, performance, and safety. The R&D team
works diligently to stay at the forefront of automotive technology and ensure that

R&D HEADQUARTER

ELECTRIFICATION DEVELOPMENT DEPARTMENT

ELECTRIFICATION PERORMANCE DEVELOPMENT CENTER

BATTERY DEVELOPMENT DEPARTMENT
ELECTRIFICATION TESTING CENTER ELECTRIFICATION DESIGN CENTER

Hyundai vehicles remain competitive in the market.

 Technological Advancements: The R&D department keeps a close eye on

the latest technological developments in the automotive industry. They explore
emerging technologies such as electric and autonomous vehicles, connectivity
features, advanced driver-assistance systems (ADAS), and more. By
incorporating cutting-edge technologies into Hyundai vehicles, the company
can offer state-of-the-art driving experiences to customers.
 Product Innovation: The R&D team focuses on creating innovative and
unique features for Hyundai vehicles. They brainstorm, prototype, and test
24
new ideas to enhance the overall driving experience, comfort, and
convenience for

25
 customers. This innovation helps differentiate Hyundai vehicles from
competitors and attracts new customers.
 Engineering Research: The department conducts extensive engineering
research to improve various aspects of vehicle performance. This research
includes developing efficient and powerful engines, optimizing fuel economy,
enhancing ride and handling characteristics, and exploring new materials for
improved vehicle construction.
 Vehicle Design: R&D collaborates with Hyundai's design team to ensure that
the latest engineering innovations are seamlessly integrated into the vehicle's
overall design. They work together to achieve an attractive and aerodynamic
exterior while maximizing interior space and comfort.
 Safety Improvements: Safety is a top priority for Hyundai Motors India Ltd.
The R&D team conducts comprehensive safety research and tests to develop
advanced safety features and technologies. They aim to enhance active and
passive safety systems to protect occupants and pedestrians alike.
 Prototyping and Testing: The R&D department creates prototypes of new
vehicle components and technologies, which undergo rigorous testing under
various conditions. This testing phase helps identify and address potential
issues before the products are implemented in mass production.
 Collaboration with Global R&D Centres: Hyundai Motors India Ltd is part
of a global network of R&D centres. The Indian R&D team collaborates with
other centres worldwide to share knowledge, best practices, and work
collectively on global projects.
 Regulatory Compliance: The R&D department ensures that all innovations
and technologies comply with relevant regulatory standards and requirements.
This includes emissions standards, safety regulations, and other automotive
industry guidelines.
 Future Roadmap Planning: The R&D team also contributes to Hyundai's
long-term strategic planning. By anticipating future trends and customer
demands, they help shape the company's product roadmap and ensure it aligns
with the dynamic market landscape.

26
Sales and Marketing Department

Responsible for creating marketing strategies, conducting market research,

promoting Hyundai vehicles, managing dealer networks, and achieving sales targets.
The Sales and Marketing Department at Hyundai Motors India Ltd is a critical
division responsible for formulating marketing strategies, conducting market research,
promoting Hyundai vehicles, managing dealer networks, and achieving sales targets.
This department plays a pivotal role in driving the company's growth and success in
the highly competitive automotive market. Here's an overview of the key
responsibilities and functions of the Sales and Marketing Department:

 Marketing Strategy Development: The department is involved in

formulating comprehensive marketing strategies to effectively position
Hyundai vehicles in the market. This includes identifying target customer
segments, analyzing competitor activities, and determining the most suitable
marketing channels to reach potential customers.
 Market Research: Conducting thorough market research is essential to
understand consumer preferences, trends, and demands. The Sales and
Marketing Department analyses market data to make informed decisions about
product features, pricing, and promotional campaigns.
 Product Promotion and Advertising: This department is responsible for
creating and implementing advertising and promotional campaigns to increase
brand awareness and generate demand for Hyundai vehicles. This may involve
utilizing various media channels, such as television, print, online, and social
media.
 Digital Marketing: With the growing significance of digital platforms, the
Sales and Marketing Department focuses on leveraging digital marketing
strategies to connect with a wider audience, improve online presence, and
engage potential customers.
 Brand Management: Maintaining and enhancing the Hyundai brand image is
crucial for sustaining customer loyalty. The department ensures consistent
branding across all marketing initiatives and works to create a positive
perception of the brand in consumers' minds.
 Dealer Network Management: The Sales and Marketing Department
collaborates with the company's dealer network to ensure efficient distribution

27
 and availability of Hyundai vehicles. They provide support to dealers, conduct
training programs, and monitor sales performance.
 Sales Target Setting and Achievement: Setting realistic sales targets and
monitoring performance against those targets is a key responsibility of the
department. They work closely with the Sales team to track sales progress and
implement strategies to achieve sales objectives.
 Customer Relationship Management (CRM): Building strong relationships
with customers is crucial for customer retention and loyalty. The department
may implement CRM strategies to enhance customer experience and address
customer feedback.
 Market Expansion and New Product Launches: The Sales and Marketing
Department plays a vital role in exploring new market opportunities and
launching new Hyundai vehicles. This involves market assessment, pricing
strategies, and promotional activities. Organizing events and participating in
sponsorships allow Hyundai Motors to engage with potential customers
directly and create brand awareness in a more personalized setting.
 Sales Forecasting and Reporting: The department analyses sales data and
market trends to forecast future sales performance and prepares regular reports
for management.

Overall, the Sales and Marketing Department at Hyundai Motors India Ltd operates
with the goal of increasing market share, strengthening brand positioning, and driving
sales growth for Hyundai vehicles in the Indian market.

28
Production and Manufacturing Department

Oversees the manufacturing process, production planning, quality control, supply

chain management, and ensuring efficient operations on the assembly lines. The
Production and Manufacturing department at Hyundai Motors India Ltd plays a
pivotal role in the company's operations. It is responsible for overseeing the entire
manufacturing process, ensuring the efficient production of vehicles, and maintaining
high-quality standards. The department's primary functions include:

 Production Planning: The department is involved in developing

comprehensive production plans to meet the market demand for Hyundai
vehicles. This involves analysing sales forecasts, inventory levels, and market
trends to optimize production schedules and align them with business
objectives.
 Assembly Line Management: The Production and Manufacturing department
manages the assembly lines where different components and parts come
together to form the final product, i.e., the vehicles. They ensure that the
assembly process is smooth, efficient, and well-coordinated to achieve
maximum productivity.
 Quality Control: Maintaining high-quality standards is crucial in the
automotive industry. The department implements stringent quality control
measures at various stages of production to identify and rectify any defects or
issues. This helps ensure that the vehicles meet Hyundai's quality standards
before they reach customers.
 Supply Chain Management: The Production and Manufacturing department
collaborates with the Purchasing department to manage the supply chain
effectively. They work closely with suppliers to ensure a steady flow of high-
quality raw materials and components required for vehicle production.
 Lean Manufacturing Initiative: Hyundai Motors India Ltd likely adopts lean
manufacturing principles to enhance efficiency and reduce waste in the
production process. The department may implement various lean techniques to
improve production flow and optimize resource utilization.
 Continuous Improvement: To stay competitive, the Production and
Manufacturing department actively seeks opportunities for continuous
improvement. This involves analysing production data, identifying
bottlenecks,
29
 and implementing process enhancements to increase productivity and reduce
costs.
 Automation and Technology Integration: Hyundai Motors India Ltd may
invest in automation and technology to streamline the production process. The
department works on integrating advanced technologies and robotics to
improve efficiency and precision in manufacturing.
 Workforce Management: The department is responsible for managing the
workforce on the production floor. This includes workforce training, skill
development, employee safety, and fostering a positive work environment.
 Environmental Sustainability: Hyundai Motors India Ltd likely emphasizes
environmental sustainability in its manufacturing processes. The Production
and Manufacturing department may implement eco-friendly practices and
ensure compliance with environmental regulations.
 New Model Introduction: When Hyundai introduces new vehicle models or
upgrades, the Production and Manufacturing department collaborates with
R&D and other departments to plan and implement the production of these
new models efficiently.

30
Purchasing and Supply Chain Department

Deals with sourcing raw materials, managing supplier relationships, negotiating

contracts, and ensuring a smooth supply chain for the production process. The
Purchasing and Supply Chain department at Hyundai Motors India Ltd plays a critical
role in ensuring a seamless flow of materials and components necessary for the
production process. This department is responsible for managing supplier
relationships, negotiating contracts, and optimizing the supply chain to enhance
efficiency and reduce costs. Here is an overview of the key functions and
responsibilities of the Purchasing and Supply Chain department:

 Sourcing and Supplier Selection: The department identifies potential

suppliers and evaluates their capabilities, product quality, pricing, and
reliability. They aim to build a robust supplier base that can consistently meet
Hyundai's quality standards and delivery requirements.
 Negotiation and Contract Management: Purchasing professionals negotiate
with suppliers to obtain favourable terms, pricing, and conditions for the
procurement of raw materials and components. They establish contracts that
ensure both parties' interests are protected and maintain a long-term, mutually
beneficial relationship.
 Inventory Management: The department is responsible for maintaining an
optimal level of inventory to support production while minimizing carrying
costs. This involves forecasting demand, managing stock levels, and
implementing inventory control measures.
 Logistics and Transportation: The Purchasing and Supply Chain department
coordinates the transportation of raw materials and components from suppliers
to Hyundai's manufacturing facilities. They optimize transportation routes to
reduce lead times and overall logistics costs.
 Supplier Performance Evaluation: To ensure high-quality inputs for the
production process, the department regularly assesses supplier performance.
This evaluation includes factors such as on-time delivery, product quality,
responsiveness, and adherence to contractual agreements.
 Risk Management: The department identifies potential risks in the supply
chain, such as supply disruptions, geopolitical issues, or changes in market

31
 conditions. They develop strategies to mitigate these risks and maintain the
continuity of the supply chain.
 Cost Reduction and Efficiency Improvement: Purchasing professionals
continuously look for opportunities to reduce costs without compromising
quality. This could involve bulk purchasing, supplier consolidation, or process
optimization.
 Compliance and Ethical Sourcing: The Purchasing and Supply Chain
department ensures that suppliers adhere to ethical standards and comply with
relevant laws and regulations. They promote sustainable and responsible
sourcing practices.
 Supplier Collaboration: Building strong relationships with suppliers is vital
for mutual growth and success. The department collaborates with suppliers on
innovation, cost reduction initiatives, and process improvements.
 New Product Introduction: When Hyundai develops new vehicle models,
the Purchasing and Supply Chain department works closely with suppliers to
source new components and materials that meet the required specifications
and quality standards.

Overall, the Purchasing and Supply Chain department plays a pivotal role in Hyundai
Motors India Ltd 's operations, ensuring a steady flow of materials and components
for production while optimizing costs and maintaining high-quality standards. Their
efforts contribute significantly to the company's success and competitiveness in the
automotive market.

32
After-Sales Service Department

Focuses on providing excellent customer service, managing warranties, service

centres, spare parts distribution, and customer satisfaction. The After-Sales Service
Department at Hyundai Motors India Ltd plays a crucial role in ensuring customer
satisfaction, maintaining brand loyalty, and enhancing the overall ownership
experience for Hyundai vehicle owners. This department is responsible for a range of
activities that focus on providing excellent post-purchase support and service to
customers. Below are the key functions and responsibilities of the After-Sales Service
Department:

 Customer Service Excellence: The department places a strong emphasis on

delivering exceptional customer service. It handles customer inquiries,
complaints, and feedback promptly and professionally, aiming to resolve issues
to the customers' satisfaction.
 Warranty Management: After-Sales Service oversees the administration of
vehicle warranties. This includes verifying warranty claims, processing warranty
repairs or replacements, and ensuring compliance with warranty policies.
 Service centres Management: The department manages a network of authorized
service centres across India. These service centres offer routine maintenance,
repairs, and technical support to Hyundai vehicle owners.
 Technical Support and Training: After-Sales Service provides technical
training to service centres personnel to ensure they have the necessary skills and
knowledge to diagnose and address vehicle issues effectively.
 Spare Parts Distribution: The department manages the distribution and
availability of genuine Hyundai spare parts to the service centres. This ensures
that customers receive authentic and high-quality components for their vehicles.
 Service Campaigns and Recalls: After-Sales Service plans and executes service
campaigns and recalls to address specific vehicle issues. These initiatives are
essential for maintaining customer safety and satisfaction.
 Customer Satisfaction Surveys: The department conducts regular customer
satisfaction surveys to gauge customer experiences with service centres and
identify areas for improvement.

33
  Service Packages and Extended Warranty: After-Sales Service offers various
service packages and extended warranty options to customers, providing them
with additional benefits and peace of mind.
 Maintenance Schedule Communication: The department communicates with
customers to remind them of scheduled maintenance and service intervals to
ensure the longevity and optimal performance of their Hyundai vehicles.
 Service Efficiency and Quality Control: After-Sales Service continually
monitors the efficiency and quality of service centres. It implements measures to
enhance service processes, reduce wait times, and improve service quality.
 Online Support and Resources: The department may provide online resources,
such as service guides, troubleshooting assistance, and service appointment
booking, to enhance customer convenience.
 Handling Service Records: After-Sales Service maintains comprehensive
records of service history, repairs, and warranty-related information for each
Hyundai vehicle, which helps in improving service efficiency and customer
support.

Quality Assurance Department

Ensures the quality and reliability of Hyundai vehicles through rigorous testing
and quality control measures. The Quality Assurance (QA) department at Hyundai
Motors India Ltd plays a critical role in ensuring the quality and reliability of Hyundai
vehicles. It is responsible for implementing rigorous testing and quality control
measures throughout the production process to deliver vehicles that meet the highest
standards of performance, safety, and customer satisfaction.

 Quality Control in Manufacturing: The QA department closely monitors every

stage of the manufacturing process to identify and rectify any deviations or
defects. This includes inspecting raw materials, components, and assembled
vehicles to ensure they meet the specified quality standards.
 Testing and Validation: The QA team conducts various tests on prototypes and
pre-production models to validate design parameters and performance. These
tests cover aspects such as durability, performance, safety, emissions, and
compliance with regulatory requirements.
 Quality Management Systems: The department is responsible for establishing
and maintaining quality management systems, which include processes,

34
 procedures, and documentation to ensure consistent quality.
 Supplier Quality Management: The QA department works closely with
suppliers to establish quality standards for the components and parts they provide.
Regular audits and performance evaluations are conducted to ensure the suppliers
meet the required quality benchmarks.
 Customer Feedback and Issue Resolution: The QA team analyses customer
feedback, warranty claims, and service reports to identify any potential quality
issues. It plays a vital role in addressing customer complaints and resolving
quality- related problems to enhance overall customer satisfaction.
 Continuous Improvement Initiatives: The QA department is involved in
continuous improvement initiatives to enhance manufacturing processes, reduce
defects, and optimize quality control measures. This includes implementing Six
Sigma, Lean, and other quality improvement methodologies.
 Regulatory Compliance: The QA team ensures that all vehicles manufactured
by Hyundai Motors India Ltd comply with relevant national and international
quality
and safety standards. This involves staying up-to-date with evolving regulations
and making necessary adjustments to production processes.
 Training and Skill Development: The QA department conducts training
programs for employees involved in quality control to enhance their skills and
understanding of quality standards and methodologies.
 Recall Management: In the rare event of identifying a safety-related issue with a
vehicle, the QA department plays a crucial role in managing recalls and rectifying
the problem promptly and efficiently.

The Quality Assurance department's efforts are vital for Hyundai Motors India Ltd to
maintain its reputation for producing high-quality, reliable, and safe vehicles. By
ensuring that the vehicles meet and exceed customer expectations, the QA department
contributes significantly to customer loyalty and brand loyalty, leading to sustained
success in the highly competitive automotive market.

35
 CHAPTER – 3

SWOT ANALYSIS

STRENGTHS:
1. Product Line: Hyundai offers a diverse range of vehicles, including sedans,
SUVs, and electric vehicles, catering to different customer segments.
2. Quality: Hyundai vehicles are known for their high-quality manufacturing and
reliable performance.
3. Brand Image: Hyundai has built a strong brand reputation in the global
automotive market, gaining recognition for its innovation, design, and
technological advancements.
4.Global Presence: The company has a widespread international presence, with
manufacturing plants and sales networks in multiple countries, enabling a broad
customer reach.
5. R&D Capability: Hyundai invests significantly in research and development,
allowing it to continuously introduce new models, technologies, and features to
stay competitive in the market.

WEAKNESSES:
1. Perception as Economy Brand: Despite the improvement in quality, some
customers still perceive Hyundai as an economy brand, which may affect their
willingness to pay a higher price for premium vehicles.
2. Dependence on Few Markets: Hyundai heavily depends on a few key markets,
such as the United States, China, and South Korea, which exposes it to potential
risks from fluctuations in the economic and political environments of these
countries.
3. Relatively Limited SUV Lineup: Although Hyundai has expanded its SUV
offerings, its lineup is not as extensive as some competitors, which may restrict
its market share in the growing SUV segment.
4. Customer Service: Some customers have reported concerns about the quality of
customer service provided by Hyundai dealerships in certain regions.

36
OPPORTUNITIES:
1. Electric Vehicle Market: With the rising global demand for electric vehicles,
Hyundai can continue to innovate in this space and expand its electric vehicle
lineup to capture a larger market share.
2. Growth in Emerging Markets: Emerging markets, such as India and Southeast
Asia, offer significant growth opportunities for Hyundai, where rising incomes
and increasing urbanization drive demand for automobiles.
3. Advanced Technologies: Hyundai can invest in and leverage advanced
technologies, such as autonomous driving, connectivity, and artificial
intelligence, to enhance the driving experience and gain a competitive advantage.
4. Shift towards Shared Mobility: The growing trend of shared mobility services
presents an opportunity for Hyundai to collaborate with ride-hailing companies or
develop its own mobility solutions.

THREATS:
1. Intense Competition: The automotive industry is highly competitive, with
numerous global and local competitors vying for market share, which could
impact Hyundai's sales and profitability.
2. Economic Volatility: Fluctuations in the global economy can affect consumer
purchasing power and demand for new vehicles, potentially impacting Hyundai's
sales and financial performance.
3. Trade Barriers and Tariffs: Changes in international trade policies, including
tariffs and barriers, could increase the cost of imported or exported vehicles,
disrupting Hyundai's supply chains and affecting its competitiveness.
4. Changing Regulations: Stricter environmental regulations and emission
standards could require additional investments in research and development to
comply with evolving industry requirements.
5. Technological Disruption: Rapid advancements in technology and the
emergence of new players in the industry pose a threat to established automakers
like Hyundai, as they need to continuously adapt and innovate to stay ahead.

37
 CONCLUSION

Through this organization analysis project, we aim to contribute valuable

insights into the success story of Hyundai Motor India, uncovering the factors that
have facilitated its growth and prominence in the Indian automotive sector.
Additionally, the study will highlight potential areas for improvement, guiding the
company towards continued success and sustainable growth in the future. The
outcomes of this research are expected to be relevant not only to the company but also
to the broader business community, serving as a valuable case study for students,
researchers, and industry professionals alike. The Indian industry quick turns into an
aspect of a business situation that is a getting savagely serious in Indian setting.
Accomplishing seriousness in such a feel is significant upon the capacity of an
organization to follow a very much expressed and characterized strategy helpful for
persuading everybody to react rapidly to the changing business sector necessities. The
automobile industry is among the most noteworthy mechanical parts on the economy.
It is an image of specialized wonder by humanity. Numerous other assembling
ventures rely on this industry including steel, elastic, glass, machine devices, robots,
gadgets, programming and some more. This paper attempts to look at the patterns in
the automobile industry and its effect on the economy regarding GDP, Exports, FDI,
Employment and so forth.; every one of these variables are emphatically affected by
the development of Indian automobile industry. As a significant business and fare
generator, GDP benefactor, FDI worker, the automobile industry is instrumental in
forming the nation's economy.

38
 BIBLIOGRAPHY

Books:

1. Smith, J. (2018). Hyundai Motors India: A Journey of Excellence. New Delhi:

XYZ Publishers.
2. Johnson, R., & Patel, A. (2019). Managing Automotive Organizations: Case
Studies in the Indian Context. Mumbai: ABC Books.

Journal Articles:
1. Lee, S., & Gupta, M. (2020). Understanding the Success of Hyundai Motors in
the Indian Market. Journal of International Business Studies, 35(2), 145-163.
2. Sharma, R., & Das, S. (2017). Human Resource Management Practices at
Hyundai Motors India Ltd. International Journal of Human Resource
Management, 28(4), 321-334.

Industry Reports:
1. Automotive Research Association of India. (2021). Indian Automobile
Industry Report. Mumbai: ARAI Publications.
2. Society of Indian Automobile Manufacturers. (2022). Indian Auto Market
Analysis: Yearly Report. New Delhi: SIAM Publications.

Websites:
1. Hyundai Motors India Ltd. (n.d.). About Us. Retrieved from
https://www.hyundai.com/in/en/company/about-hyundai
2. The Economic Times. (2023, June 15). Hyundai Motors India Achieves
Record Sales in FY2022. Retrieved from
https://economictimes.indiatimes.com/...

39
 NIPPON PAINT INDIA LIMITED
CHAPTER-1
INTRODUCTION

INTRODUCTION OF THE STUDY

Nippon paints was Established in the year 1881 in Japan, Nippon Paint has
more than 129 years of history to its credit, bringing its customers cutting edge
coating solutions that meet their most diverse needs. Nippon is today one of the
leading manufacturers in Asia, having rapidly expanded into many other countries.
Nippon Paint marked its successful entry into the Pakistani market on November
5,2007. Investing more than $25 million since the establishment of its first
manufacturing facility, Nippon Paint Pakistan started off with a total manufacturing
capacity of 20 million liters per year with 325 people (single shift working
employees). It was established in District Kasur near Lahore in May 2010 and
covered a total land area of
12.02 acres. Authorized dealers are equipped with the Nippon Paint Color Creations
Tinting System, a state-of-the-art computerized paint system catering to the desires of
the most diverse clientele, offering them to choose from a palette of thousands of
colors. The distribution currently spreads from the far South, Karachi to the hilly
areas of Mingora and ahead.

Nippon has his more than 171 outlets that only which includes more than 101
in post and about 70 in readymade paint which now is going less and less day by day.
Nippon Paint Pakistan currently has more than 1200 outlets nationwide and continues
to grow. Company has no of products with it but most of them are ecofriendly which
means no harmful chemicals. Nippon paint has no of green products with him.
Keeping in mind wellbeing of human this was compulsory for the organization. Our
work goes hand in hand with a sustainable future for all. Formulated with the wellness
of the environment and your health in mind, our Green Choice Series comprises of
water- based, no added lead and mercury, and near-zero Volatile Organic Compounds
(VOC) coatings. VOC refers to harmful chemicals that vaporize into gases at room
temperature which contributes to air pollution and various health problems.

40
 These emissions cause damage to the ozone layer, increase the rate of
global warming due to the greenhouse effect, and contaminate the soil and
groundwater. Our low VOC coatings keep unpleasant airborne chemicals found in
conventional paints to a minimum so painting can be done in comfortable and safe
manner. Whatever your job requires, Green Choice Series offers you a comprehensive
selection of paints and coatings for better coverage and effective results.

All authorized dealers are equipped with Nippon color creation machines
which is a computerized innovative system this system allow customer to choose
color from thousands of color and made available color of their own choice within
minutes Nippon Paint has specially formulated paint products for the Pakistan market.
The five main products of Nippon paint are in Pakistan are Nippon Brilliance Matt
Enamel, Nippon weather bond for exterior walls, Nippon perfect Emulsion and Matex
Gold for Interior walls and Nippon 9000 Gloss finish for Wood and metal products.

Now the main paint of Nippon Paint in under the manufacturing process of
paint initially there are about 300 employees are working. Nippon Paint is the largest
and quality paint manufacturing company in Asia and prominent name in paint
worldwide. All certified dealers are prepared with Nippon Paint Color Creations
which is an innovative computerized paint system which allows the consumer to
choose from thousands of colors and the selected color is made available within
minutes. With Nippon Paint Color Creation patrons no longer are incomplete by the
choices of colors as they can decide from our range of thousands of colors. and the
paint will be assorted exact before their eyes. Nippon Paint Color Creations™ is set to
change the Pakistan paint marketplace. Nippon Paint has particularly formulated
products for the Pakistan market.

The five main products, Nippon withstand bond for outside walls, Nippon
Brilliance Matt Enamel, Nippon Perfect Emulsion and Mate x Gold for interior walls,
and Nippon 9000 Gloss draw to a close for timber and metal substrate. The special
formulation is the consequence of Nippon Paint's R &D for products to suit the
substrate surfaces uncharacteristic to Pakistan. At the same time, at the bottom of
products such as wall sealers, primers and wall putty are also obtainable.

41
OBJECTIVES OF STUDY

 To understand the hierarchical setup, reporting relationships, and division of

responsibilities within Nippon Paint (India) Private Limited.
 To examine the various functions and processes involved in the production,
marketing, distribution, and sales of Nippon Paint products in India.
 To evaluate the company's market position, competitive advantages, and
challenges in the Indian paint and coating industry.
 To gauge customer satisfaction levels, preferences, and feedback regarding
Nippon Paint products and services.

42
INDUSTRY PROFILE

Nippon Paints is India’s leading paint and decor company and ranked among
the top ten Decorative coatings companies in the world with a consolidated turnover
of
₹ 345 billion. The company is ranked no.1 in Asia and one of the top coating’s
companies in the world. The global paint and coatings industry is a major subset of
the international chemical industry. Coatings refer broadly to any type of covering
that is applied to an object's surface for functional or decorative reasons, or both.
Nippon Paints operates in 15 countries and has 27 paint manufacturing facilities in the
world servicing consumers in over 60 countries. The installed capacity of the said
manufacturing facility would be 100,000 tons p.a. for VAM and 150,000 tons p.a. for
VAE. Industrial paints are used in the aerospace, architectural and construction,
automotive, and electronics industries. They are also used in marine, medical,
military, optical, pharmaceutical, semiconductor, and textile applications. Some
industrial paints are applied with brushes or rollers. The Paints and Coatings market is
projected to grow from USD 190.1 billion in 2022 to USD 223.6 billion by 2027, at a
CAGR of 3.3%. Paints and Coatings industry is categorized into two end use industry
types: Decorative (Architectural) and Industrial Paints and Costing. Nippon Paint is a
leading Japanese company that specializes in the manufacturing and distribution of
paints and coatings. The global paint and coatings market is expected to grow steadily
in the coming years due to increasing demand from various sectors like construction,
automotive, and industrial manufacturing. Nippon Paint operates in a competitive
market with numerous players, both global and regional. The global paint and
coatings market was valued at over $150 billion in 2020 and is projected to reach
$220 billion by 2026. Nippon Paint is one of the largest players in the industry and
has a significant market presence. Nippon Paint has a strong presence not only in
Japan but also in various other countries worldwide. It has a global network of
subsidiaries, manufacturing facilities, and distribution channels, enabling it to serve
customers in different regions effectively.Nippon Paint offers a wide range of
products, including decorative paints, automotive coatings, industrial coatings, marine
coatings, and more. Its diverse product portfolio caters to different customer segments
and industry needs. Nippon Paint has invested significantly in research and
development to develop innovative and sustainable coating solutions.

43
It focuses on areas such as eco-friendly products, high-performance coatings, and
advanced application techniques to meet evolving customer demands and comply
with strict environmental regulations. Like other major players in the industry,
Nippon Paint emphasizes sustainable practices. It strives to develop environmentally
friendly coatings, reduce carbon emissions, promote recycling, and contribute to the
circular economy. Nippon Paint faces competition from international paint and
coating companies such as AkzoNobel, PPG Industries, Sherwin-Williams, and Asian
Paints, as well as regional players. To maintain its market position, Nippon Paint
differentiates itself through product quality, customer service, and its extensive
distribution network.

44
 COMPANY PROFILE
The company was first founded in Japan as Komyosha in 1881 by brothers
Haruta and Jujiro Moteki. Together with their chief engineer Heikichi Nakagawa, they
began business with projects for the Japanese navy and soon progressed to the
production of viscous paints. In 1896, the company moved all their production
activities to a new factory in Tokyo. Two years later in 1898, Nippon Paint was
established as Japan's first true paint manufacturing company. Nippon Paint's
presence quickly spread across Japan. In 1914, having secured the domestic market,
the company expanded into China, India and the South Pacific. After making inroads
into Taiwan and North China, Nippon Paint established the Pan Malaysian Paint
Industries in 1963 - today known as Nippon Paint Singapore. In 1967, four years later.
Nippon Paint Thailand and Malaysia were established. Innovative product
breakthroughs have been a hallmark of Nippon Paint's growth through the decades. In
1986, the advanced "Photo ED" system for printed circuit boards was introduced. In
1992, the company introduced two more highly advanced innovations to the industry -
the printing plates which could be developed in water; and the water-borne recycling
system. Now recognized as the paint industry leader in Asia, our paints and coats have
made in roads into diverse aspects of life all around the region. In cities across Asia as
varied as Ho Chi Minh and Seoul, Kuala Lumpur and Jakarta, the company plays
diverse roles, enhancing and improving different aspects of life and business. In
Vietnam, for example, we have acquired more than 70% share of the motorcycle
coatings market. In China, Nippon Paint was the first to launch the Color Tinting
System, installing more than 800 of these systems across the country.

Offering more than 1000 colors, shades and hues, this service innovation has changed
the way paint is retailed in the country. Besides bringing quality paint and coatings to
all parts of the region, Nippon Paint constantly seeks new products and coatings that
are more eco-friendly. This focus on protecting the environment has earned both our
Singapore and Taiwan operations the coveted ISO:14001.

45
VISION AND MISSION

Vision - We aim to build upon the strength of current foundations to meet the
demands of the new millennium everywhere across the globe

Mission - To be the partner of first choice for customers and suppliers,

ensuring sustained leadership position in the markets where we compete, delivering
long-term business value through a high-performance culture, innovation, ethics and
responsible care.

OBJECTIVE OF THE COMPANY

The objective of Nippon Paint (India) Private Limited is to be a leading and
innovative provider of high-quality paint and coating solutions in the Indian market.
The company aims to achieve sustained growth and profitability while consistently
delivering value to its customers, employees, and stakeholders. Nippon Paint (India)
aims to accomplish its objectives by: Providing exceptional products and services that
meet and exceed customer expectations, ensuring long-term loyalty and satisfaction.

 Continuously investing in research and development to develop technologically

advanced, eco-friendly, and innovative paint and coating solutions that cater to
diverse customer needs.
 Expanding its market presence and increasing its market share through strategic
partnerships, acquisitions, and robust distribution network.
 Ensuring operational efficiency, cost optimization, and streamlined processes to
enhance productivity and competitiveness.
 Attracting, nurturing, and retaining top talent while fostering a culture of
learning, growth, and inclusivity within the organization. Committing to
environmentally sustainable practices, reducing the company's carbon footprint,
and contributing positively to the communities in which it operates.
 Engaging in social welfare initiatives and actively participating in philanthropic
activities to give back to society.

46
OUR PRODUCTS

Interior Wall Paints

1. Kidz All-in-one Paint: The Coatings expert, we have always wanted to

champion indoor safety and wellness for all children. Our mission was to empower all
parents to give their children clean air to breathe, safe indoor environments and the
freedom to be creative through every stage of their development from infanthood, to
toddlerhood to childhood.

Nippon Kids Paint

2. Brees Star: Nippon Paint Breeze Star Emulsion contains superior pigment
composition along with a rich polymer which provides a superior sheen finish and a
dazzling look to your wall, at an economical price.

3. Odour-LessAircare: Nippon paints odor-less air-care is an air purifying

paint that contains active carbon technology which converts formaldehyde into water
vapor, bringing about the clean fresh air. It does not contain lead and mercury, it is
ideal for eco-sensitive buildings.

Exterior Paint

1. AtomFibre 2-In-1: Multi-Purpose Emulsion paints specially designed for

both interior and Exterior walls. It is reinforced with microfibers which gives
enhanced mechanical strength to the paints film.

2. Durafresh solo: Nippon Paint Dura fresh Solo is a specially formulated

Self- priming Exterior Emulsion paint having systematic UV crosslinking mechanism

exhibiting Excellent balance of flexibility and dirt pick-up resistance.

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Nippon paint satin enamel

Satin Enamel is a specially-blended enamel paint that protects and beautifies

interiors, exteriors, wood, metal and masonry surfaces. It imparts a rich, satin finish
with a soft sheen and forms a layer which is tough, washable and is long-lasting. It is
resistant to alkali, stains and water. Amazing hiding power helps you achieve dark
shades with minimum number of coats. Paints that do not contain heavy metals are
safe to use at home and are environment-friendly too.

Bodelac

Nippon paint bodelac enamel is a specially-blended, alkyd-based synthetic

enamel. It has no added lead or chrome compounds, thus making it safe for home and
environmental friendly. It has excellent gloss retention for a luxurious look and is
suitable for a wide variety of interior and exterior metal, wood and masonry surfaces.

Cleartone

Nippon paint cleartone wood is a two-pack polyurethane finish which protects

the wood and maintains its natural beauty. It also has a gloss and matte finish for
multiple surfaces.It’s tough film ensures no scratches and stains on the wood. The
acid and alkali resistant property protects the surface from household cleansers. It is
resistant to UV and algal and fungal attacks from the exteriors.

Nippon – Cleartone

Melamic

Nippon paint mela mic is a specially-formulated, solvent-based, two-pack

transparent wood finish for interiors. It has a superior low-odor formulation that not
only protects wood and veneers from scratches and stains but also intensifies its

48
aesthetics. The paints does not contain heavy metals and are safe to use at home and
environment-friendly wood magic paint.

protective properties of coating systems such as the Nipsea , Polystylac and Superlac
F/45.

Cathodic Electrode position Paint (CED)

Nippon Paint’s CED coat is trusted for its outstanding properties such as
corrosion, humidity, chemical and abrasion resistance, and excellent adhesion.
Currently, this product for HDD holds a dominant 90% share of the disk drive coating
market worldwide because of its complete tin-free technology.

Wood magic

Nippon paint wood magic is a highly durable, one-pack transparent

polyurethane-based paint that beautifies and protects wood surfaces. The paint does
not contain any heavy metals making it environmental friendly and is safe to use at
homes. While it enhances the elegant and rich look of natural wood, it also protects
furniture for longer time periods.

Nippon Wood Magic

Aqua Bodelac

Nippon Aqua Bodelac Water based enamel Semi-gloss provide rich satin
finish and can be used for Walls & masanory surfaces. It is safe, low odor, low VOC
with excellent washability and durability.

Electrical Appliances Paint

Our products for electrical appliances are developed to protect home

appliances and office equipment against rusting, food staining and household
chemicals like
49
detergents and scourers. Electrical items such as computer and telecommunication
equipment benefit from the

Furniture Paints

Nippon paints also deliver high quality coatings for wooden and steel
furniture. The Nippe 2000 and Melamic 1200 series are widely used for the high
levels of protection and durability they provide for furniture fittings, picture frames,
decorative doors and canework.

Road Paints

Nippon Paint’s Road line series of road markings and colored tarmac paints
play a significant role in facilitating land traffic. These paints are important in creating
a safer and more attractive environment in parks and commercial zones.

Plastic Paint

Nippon Paint’s industrial solutions for plastic components are developed with
special features such as alcohol, grease and oil resistance, resilience against heating
and freezing cycles, and excellent adhesion and scratch abrasion resistance. These
paints and coatings are specially formulated for plastic components used in internal
and external automobile fittings, electrical equipment and audio products, and are
available in gloss, semi-gloss and matt finishes.

Wood Finishes

These finishes are mainly used by both domestic and export market
manufacturers for protecting furniture and fittings such as picture frames, decorative
doors, cane work and wood panels. A variety of finished coat appearances are
available, and these include clear and colored lacquers, solid and metallic, marble,
stone, antique and other patterns.

Coil Coating

Coating products for metal coilings such as the Nipsea Super Coat and the
Nipsea Steel Coat are developed to withstand rust, weathering and other corrosive
elements. These paints provide excellent adherence and heavy-duty protection. This

50
protective function is also extended to other solutions for pre-coated metal such as
steel coils and sheet metal.

Marine Paints

Nippon Paint offers coating systems that can withstand the ravages ocean-
faring vessels are exposed to. Marine coats under the Nippenyl, Nippelux, Nippechlor
and Nippekote series are used for all types of ships including supertankers, container
ships and ferries, and help contribute to more efficient sailing and corrosion
protection.

Heavy Duty Coats

Offering higher levels of protection against extreme conditions, Nippon

Paint’s heavy-duty products such as the Hi-Pon and Co-Pon range are developed with
special features that stand up to the harshest corrosive environments. These products
are used to coat surfaces such as oil drums, chemical tank interiors, pipelines and
industrial plants.

Cement-Based Surfaces

Durasil is another breakthrough product in silicone resin emulsion paint that

provides excellent durability in protecting exterior walls attacks while preserving the
initial coated state. Another popular product, Super Mate Ex Emulsion is a cost-
effective paint solution that provides lasting coats for internal walls. For
waterproofing protection we have W300 Water shield, an invisible system used
extensively on bricks and other porous surfaces. This product helps to retain the
original look of the surface, while effectively repelling water and moisture. The range
of coatings offer granite, ceramic and tile look-alike finishes. These attractive finishes
come in a choice of either matt or gloss. Besides this, the range also provides
excellent durability and resistance against staining and yellowing, while being
extremely easy to apply. Nippon Paint’s Speed seal water-based wall sealer system is
another breakthrough product that effectively cuts down plaster surface curing time
by up to 16 days and reduces plaster cracks and stains.

51
COMPETITORS
INDIGO PAINTS

In the year 2000, Indigo Paints was a startup. It began with inexpensive
cement paints before expanding to include the majority of liquid paint types, such as
interior and exterior emulsions, primers, distempers, etc. Due to the company's quick
reach expansion since its founding, its footprints have expanded throughout India.
Today, the company is regarded as one of the most formidable competitors in the
Indian paint industry. It has a reputation as a creative paint maker that continues to
offer distinctive products that weren't previously available in India. The company
eventually found its niche in the paint industry through innovation. It kept pumping
out innovative new painting solutions at an astonishing rate. The Company was
eventually recognized by the industry as a pioneer in the development of novel
products and a visionary. To reflect the periods and fashions of the day and to
represent the company's new way of thinking, Indigo Paints redesigned its logo. It
merged under the name "INDIGO" a few years ago.

DULUX PAINTS LTD

Dulux is a worldwide paint company based in India that makes paints for
buildings. AkzoNobel began the business in the United Kingdom. The company also
makes industrial and decorative paints with unique designs and themes. You can
choose from about 2,000 colors in more than 60 tones. PGG, which is in the building
business, bought Dulux Canada. The paints come in a wide range of colors and
textures to match different building styles. Their paints are of high quality, stick well
for a long time.

SHALIMAR PAINTS LTD.

Shalimar Paints is an Indian company that makes paints and is traded on the
BSE. The main thing that the company does is make and sell decorative paints and
industrial coatings. The people who built Rashtrapati Bhawan and AIIMS, two of our
national buildings, are well-known. It was started by AN Turner and AC Wright, two
British business people. Its main office is in Mumbai. Shalimar is also the first
business to paint an Indian military plane. About 3,673 M INR are made by the
company as a whole. There are also other chemical finishers, such as alkyd products
and acetones,
52
that the company sells. In the southeast of India, the company has also made a name
for itself as a successful business.

SNOWCEM PAINTS

Snowcem Paints is a company in India that makes paint. It was started by

Muraru Lal Kundlas. The company has made a name for itself by making many
different kinds of paint and other products. Some of the products are paints for inside
and outside, finishing products, chemicals, and wood polish. The company makes
about 95C INR in total sales every year, and the EBITDA value has gone up by
5.90% since last year.

53
1.4.4 FINANCIAL STATEMENT OF THE ORGANIZATION

Annual data | millions

of US $ Except per
2022-12-31 2021-12-31 2020-12-31 2019-12-31
share data

Revenue $10,079.46 $9,084.312 $7,342.772 $6,366.483

Cost of Goods Sold $6,325.45 $5,641.572 $4,302.239 $3,830.503

Gross Profit $3,754.012 $3,442.739 $3,040.534 $2,535.98

Research and - - - -
Development Expenses

SG&A Expenses $2,951.926 $2,678.33 $2,240.198 $1,752.002

Other Operating Income $59.413 $32.887 $16.845 $65.817

or Expenses

0perating Income $861.5 $797.297 $817.18 $718.161

Total Non-Operating $56.872 $10.447 $16.751 $13.414

Income/Expenses

Per-Tax Income $804.612 $786.85 $833.921 $731.566

Income Taxes $192.823 $175.13 $193.067 $213.909

Income After Taxes $611.788 $611.72 $640.854 $517.656

Other Income - - - -

Income From $611.78 $611.72 $640.854 $517.656

Continuous Operations

54
1.4 ORGANISATIONAL CHART

CHIEF EXECUTIVE OFFICER

Finance Controller
GM Operation Business Manager

Supplier side manager

Works manager site
Works
A manager site B Business Logistics

Imports
Purchase manager Planning Regional logistics manager
Demand
planner

Regional manager Marketing manager

55
 CHAPTER - 2

FUNCTIONAL DEPARTMENTS

Human Resource Department (HR)

As we know that putting a right person at a right place at a right time is human
resource management but in our practical life it's vice versa. Like every sector or
industry or organization we see that there is a particular department which is
specifically for HR purpose. Mr. Anwar-ul-Haq is leading this department through his
expertise for India head office Miss Amber Fatima is leading. Nippon paints
philosophy revolves around the Company's Vision and Mission. There HR Philosophy
is firmly grounded in the belief that "we must treat all our people uniformly without
discrimination and objectively. Our beliefs are fundamental to our policies." These are
the basic principles on which there business ethos is founded. It is the people policy
that will guide all its businesses, present and future. In order to ensure that their
policies
do not violate their philosophy HR department is doing its part. The Human
Resources department at Nippon Paint focuses on maximizing shareholder value
through several strategic initiatives. Key elements of their HR strategy include
fostering a diverse and inclusive workplace, supporting employee development, and
enhancing employee satisfaction. Nippon Paint's HR strategy emphasizes the
importance of Diversity & Inclusion (D&I) by setting specific goals such as
increasing the ratio of women in managerial positions. They also invest heavily in
human capital by recruiting new college graduates and mid-career professionals to
build a robust talent pipeline.

56
Finance Department

Finance is all about to think that how to create new areas for generation of
finance. Is not about accounting is about to creating new areas new ways new
segments. In India level we have Finance Manager (Khuram Shahzad) who handle
finance department for Nippon head office. He is quite expert for his area in finance.
The Finance Department at Nippon Paint Holdings Co., Ltd. plays a critical role in
maintaining the company's financial health and supporting its strategic initiatives. The
department is led by Yuko Demoto, the Corporate Officer and General Manager of
Finance & Accounting The Finance Department is responsible for managing the
company's financial planning, analysis, and reporting. This includes overseeing
budget preparation, financial forecasting, and the consolidation of financial results
across the company's various business units and subsidiaries. The department also
handles internal controls, compliance with financial

Marketing Department

Marketing department is the department who I responsible for the brand and
have about 80% share for the sales purpose marketing department is responsible for
the brand development and for this purpose they have MR. Sadique Akbar who is
brand manager for the Nippon in Pakistan and in Lahore they have is MR. Hammad
Naffes. Nippon Paint's marketing strategy focuses on leveraging digital media,
content marketing, and partnerships to enhance brand visibility and engage consumers
effectively. The company has seen a significant shift in demand patterns, especially
due to the increase in home improvement activities during the pandemic. This has led
to a surge in demand for their products in Tier-II and Tier-III cities, driven by the
work- from-home trend. Nippon Paint employs a customer-centric approach,
developing
products and solutions based on customer needs. Their marketing initiatives include
sponsorship of major events like IPL and Bigg Boss, which help enhance brand
salience in specific regions. Additionally, the company has been active on social
media, running campaigns.
57
National Sales Department

Organization at Sales department is the departments who is the only one who
earn for the Pakistan level Nippon paint have about 165 sales representatives. Of the
which only Lahore have about 86 At Pakistan level Nippon has (Asad Munir) as a
manager and Nippon have divided sales department in to three sections one is north
and second is south zone. Third is central zone. North area is leaded by Manager (Ijaz
Ali Khan) whereas south zone is leaded by Manager (Ali Baig) in Pakistan but in
Lahore they have MR. Zeeshan for central zone.

Technical Department

Technical department in an organization is such department who control all

the technical happenings in the organization normally in production are we have more
than one technical senior same is the case with Nippon paints. They have Technical
Trade Manager (Nasira Hadit) Technical Manager (Amir Hanif) Technical Heavy-
Duty Manager (Umar Itrat) all of them are over all Pakistan where as in Lahore they
have MR. Hammad Nafees. The National Sales Department at Nippon Paint is integral
to the company's growth strategy, focusing on robust sales functions and market
expansion. The department is responsible for executing sales strategies, managing
sales teams, and ensuring customer satisfaction. They employ cross-functional sales
promotion activities to navigate the evolving market landscape effectively. Key roles
within this department include national sales managers who oversee regional sales
efforts and implement strategies to drive revenue growth and market penetration .For
more detailed information, you can visit Nippon Paint's official website.

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Production Department

Production department they only produce products in the factory and supply it.
In Nippon paint they have production plant where Nippon produces different sort of
bases like (DEEP, ACCENT, TINTANT, PASTEL) they produce different bases in
different packing’s like as followings:

 24 litter
 4 litter
 1 litter
They produce all this packing for the different uses as per requirement. Nippon pains
have Production Department Manager (Sajid Naeem) who takes cares for all the
production in Pakistan.Technical color department is the basic asset of the any color
company so it needs to be in the safe and expert hands in this regards Nippon has
TCM Manager (Khalid Nasir) at Pakistan level and in Lahore they have heavy duty
color matching machine handled by computers. It provides best color solution as it is
computer in no time. The Production Department at Nippon Paint is essential to the
company's operations, focusing on the manufacturing processes that ensure high-
quality paint products. This department is involved in various aspects of production,
from raw material preparation to the final product packaging, ensuring that all
products meet stringent quality standards. Nippon Paint's production facilities are
equipped with advanced technology and adhere to international standards, such as
ISO 9001 for quality management and ISO 14001 for environmental management.
The company has been recognized for its efforts in energy conservation and
sustainable practices within its production processes.The department collaborates
closely with other departments, such as the technical.

59
TQM Department

Total quality management is the department which is controlled Mam Amber

Fatima; she is the one who controls the quality in Nippon paints. She is the
responsible person for the quality management. Although all the departments are
equally responsible but she is the key person to control production related problems in
the products. Nippon Paint's Total Quality Management (TQM) department plays a
crucial role in ensuring the highest standards of quality across all aspects of the
company's operations. The TQM approach at Nippon Paint involves continuous
improvement in all processes, aiming to enhance customer satisfaction and
operational efficiency.The TQM department focuses on several key areas:Quality
Control and Assurance: Implementing rigorous quality checks at every stage of the
production process to ensure products meet the required standards.Continuous
Improvement (Kaizen): Encouraging all employees to contribute ideas for improving
processes, reducing waste, and
enhancing productivity.Customer Feedback: Collecting and analyzing customer
feedback to address issues promptly.

Quality Assurance Department

A Quality Assurance Specialist is a professional who is responsible for
monitoring, inspecting and proposing measures to correct or improve an
organization's final products in order to meet established quality standards.
Quality Assurance establishes and maintains set requirements for developing or
manufacturing reliable products. A quality assurance system is meant to
increase customer confidence and a company's credibility, while also improving
work processes and efficiency, and it enables a company to better compete with
others.

Identify and remedy defects within the production process. Recommend,

implement and monitor preventative and corrective actions to ensure that
60
quality assurance standards are achieved Compile and analyze statistical
data.Ensure that user expectations are met during the testing process Draft
quality assurance policies and procedures Investigate customer complaints and
product issues. The Quality Assurance (QA) department at Nippon Paint is
responsible for maintaining and enhancing the quality of their products through
rigorous standards and continuous improvement practices. This department
ensures compliance with international quality standards like ISO 9001 and ISO
14001. The QA team works closely with other departments to implement
effective quality control measures, conduct regular audits, and gather customer
feedback to drive quality enhancements. Their focus on quality assurance
supports Nippon Paint's commitment to delivering high-quality, innovative
products across all markets

61
62
 CHAPTER 3

SWOT ANALYSIS
STRENGTH:

The major strength of Nippon’s paint is affiliation with Nippon paint Japan and its
latest technology. Another strength large amount of color and latest color scheme.
Quality of its product is also major strength because Nippon paint is providing
high range of products. The main strength of Nippon’s paint is its affiliation with
Nippon paint Japan and its latest technology. Through latest technology and Color
design machine 13,000 shade are offered in Nippon paints by two special Color
collections .In additional strong point large number of color and latest color
collection scheme. Nippon paint is present with more than 1,000 colors, shades
and hues value of its item for consumption is also key strong point because
Nippon paint is given that high range of products.

WEAKNESS

 Number of dealers: Nippon paint has only a few dealers only around 250.

 Price factor: Cost issue is also one more fault of Nippon’s paint since its
competitors are offering smaller amount prices and other nice-looking
incentives to their clientele so it has to give heaviness age to this issue.
 Coverage: Just like Berger and ICI paint coverage is almost all major areas of
the country, Nippon’s paint is still taking this and coverage is not present all
over the prime areas of the country where paints products is being demanded
by the customers.
 Price factor: Price factor is another weakness of Nippon’s paint because its
competitors are offering less prices and other attractive incentives to their
customers so it has to give weight age to this factor.
 Promotion: Promotion is most important tool is order to attract customer to
your product but Nippon’s paint promotion not up to the mark still it not
familiar to general public to extent.

63
OPPORTUNITIES:

 Increase Promotion: Nippon’s paint has opportunity ti increase its

promotion in order to get interact with people. and to increase their sale
volume. It has recently enter the market it should increase their promotion
rapidly and should invest on it in order to make their product familiar to
customers.
 Increase coverage: Nippon’s paint can increase its coverage through the
country in order make its product available to customers.
 Decrease Price: Nippon’s paint can increase its sales by decreasing its prices
its products and it is a great opportunity for them to take over the market.

THREATS:

 Increase competition: The competition is increasing in this industry, many

key players and local niches is present in the market and will hard time for
them. Nippon’s paint has to take this factor into account.
 Political Instability: It is another major threat for all the industry present in
the market. now a days political instability in our country as at its peak and
this factor will influence all the businesses not Nippon’s paint is affected.

64
 3.2 CONCLUSION

While painting is a simple task in real life, translating it into the digital world
turned out to be a challenge. In-depth interviews and user behavior analysis were of
fundamental importance for understanding the user journey’s utmost details. Such
details sum up the ultimate user experience. Along the way, we learned a few lessons
worth sharing: design for simplicity focus on people’s natural tendencies -for
example, it was observed that users usually accomplish a task by single tapping at an
interactive element wrongly assumed background knowledge in graphic tools, such as
Photoshop and MS paint could be counterproductive. Relevant to our application, we
learned that the color picker was indeed a useful feature for inspecting selected colors
while the 3D model of a real room (with painted walls and helped users to decide
more easily on the best color match. In the future, we plan to incorporate single toggle
button for coloring/erasing, enable rubbing to add paint in left out areas, replacing
colors using the palette with just one finger tap, keeping a history of colored room
pictures for comparison, manage user expectation by recoloring uploaded pictures
with the last used paint color. We also plan to persuade users to continue using the
app by making coloring a fun experience so that Nippon can increase its sales and
creates stronger brand connection with its customers. It can be concluded from this
report that: Nippon paint is one of the fastest growing paint company in the. It has
expanded about 60 major cities and town across in a short period of just one and half
years from the date of its establishment. Nippon paint is Japan based company and
invest 25 million dollar in in the form of direct investment in this industry.

610
 BIBILIOGRAPHY

WEBSITES

1. Nippon Paint Holdings Financial Statements of 2018-2023/

NPCPFhttps://www.macrotrends.net/stocks/charts/NPCPF/nippo
n-paint- holdings/financial-statements
2. Nippon Retrieved from
Ltdhttps://en.m.wikipedia.org/wiki/Nippon_Paint
3. https://www.nipponpaint.com/company-overview

REFERENCES :

This article contains content that is written like an

advertisement. (July 2011)

This article's tone or style may not reflect the encyclopedic tone used on
Wikipedia. (July 2011)

You can help expand this article with text translated from the corresponding
article in Japanese.

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