2017 Customers: Analysis of The 50 Companies Allotted

2017
Customers
A stakeholder is a party that has an interest in a company and can either affect or be affected by the
business. The primary stakeholders in a typical corporation are its investors, employees, customers,
environment, etc. Customers are one of the most important people of any organization. They are the
resource upon which the success of an organization depends. So it becomes important for a company to
keep doing certain activities or attain some recognitions in order to foster their trust and make them feel
important for retaining them.
Analysis of the 50 companies allotted:
Here we have categorized the customers as good/bad/neutral on the following basis:
Companies categorized as good:
The companies under the good ranking category are the ones which have performed lots of activities like
conducting campaigns, disclosures on their website regarding the practices they do and their vision and
mission statement, introducing new products in order to cater to changing preferences, opening up
wellness centers, etc. Few of the examples of the companies and their activities are as follows:
Steel authority of India limited- the Central Marketing Organization (CMO) of Steel Authority
of India Ltd. (SAIL) organized a program for schoolchildren and a workshop at Dhalwala,
Narendranagar in TehriGarhwal district of Uttarakhand this year. The campaign was meant to
create awakening among customers.
Cummins India Ltd.: Cummins India Ltd. has launched a smart phone app to reach their
customers easily within short period of time and could provide quick support. The sales of the
company have increased 13-14% as compared to the previous year. Also the profit margin of the
company has increased to 8% with the reference of the previous year.
ICICI Prudential Life Insurance Company Ltd: The Company has eased the claims settlement
process. Also ICICI Prudential Life will provide protection to front line protection staff, (Forest
Guards, Foresters and Range officers as other staff) through ex-gratia funding, in the event of
their death or permanent disability while on official duty.
Cadila Healthcare Ltd: Cadila has received the final approval from the USFDA to market
Desmopressin Nasal Spray Solution USP, 10mcg/0.1 mL per spray, 5ml bottle. The group has
now more than 160 approvals and has so far filed over 300 ANDAs since the commencement of
the filling process which is highest of all.The stock rose 38 percent in the last nine months.
Pidilite Industries Ltd.: As crude oil prices will remain at lower levels in the medium term, it will
benefit the market leader as it is least likely to pass on the entire benefit of lower raw material prices
to customers. Also the segment growth is largely driven by construction; repair & maintenance, sales
growth (standalone) may take place at 12% CAGR in FY15-18 on the back of an increase in
penetration in smaller towns although at lower pace.
Companies categorized as bad:
The companies under this category are the ones which havent performed any activity or taken any sort of
steps throughout the year but rather have taken some negative steps with regard to customers. Also some
government regulations in some cases have led to drop in sales.
United Breweries Ltd (UBL): Indias largest beer maker and majority-owned by Dutch firm
Heineken, has said that its sales of the alcoholic beverage dropped by 40 per cent due to the
Supreme Court ban on liquor shops on highways which came into effect from April.
Divis Laborataries Ltd.: The Company is already facing losses and the stock price of the
company is declining. The company is also facing some regulatory issues. Apart from there it has
severe capacity constraint and the expansion couldnt take place because of the delay in the
acquisition of the plant. Revenues have declined almost 20%, whereas the profit share has
declined to 41.5%. All of this as a whole is creating negative impact on customers.
Marico Ltd: Mr. Mariwala talked about the impact of demonetization and Goods and Services
Tax (GST) on the company. He believed sales can only rise when consumers have enough
disposable income.Due to this he projected high growth rate, but that did not happen.
Power finance corp.: PFC gets nod to rise up to Rs 65,000 crore via debt and also Board of
Power Finance Corporation decides not to issue bonus shares. This has created a negative
impact on customers as they were expecting the bonus shares to be issued.
NHPC Ltd.: Most upcoming projects like Subansiri (187% cost over run, 2000 MW), Parbati III
(114% cost over run, 800 MW faced massive delays owing to regulatory and environmental
issues. Current CWIP (capital work in progress) is to the tune of 18000 crore out of which almost
50% is stuck in the Subansiri lower project.
Companies categorized as neutral:

Under this category the companies have neither conducted any noteworthy activities nor have they done
something against the interest of their customers. These are the companies who have maintained their
reputation and brand equity due to their goodwill or activities conducted in the past recent years.
UPL Ltd.- (from the website) -UPL's MaisTerra has been travelling through Brazil following
field days, fairs, visiting farms and talking to producers and researchers from the north to the
south. With continuous presence on the field, the rally has been generating tips and reports,
delivering results and improvements for better agriculture. This activity is being done by the
company since many years and so it is nothing new for the customers.
LIC Housing Finance: LIC Housing Finance is weak as compared to Dewan Housing Finance
Corporation (DHFL). LIC Housing is a positional short. Overall, there is strong loan demand
from western/southern/eastern regions of India. However, demand from northern India is weak as
compared to the previous few quarters.
Dabur India Ltd.: The Companys sales have been 19.8%, 18.7%, and 17.6% in year 2017,
2016, and 2015 respectively. Also the profit share of the company has been remained similar in
all these years around 10%. The company hasnt shown any drastic changes by either increasing
or decreasing in the revenue.
Colgate Palmolive (India) Ltd: The Companys market share has shrunk further in the
toothpaste category to 54.3% (vs 55.1% in FY17). While this should lift the immediate
uncertainty shrouding Colgate, they nevertheless remain concerned about the declining market
share of the company in the toothpaste category. Growing competition from Patanjali and Dabur
and the commentary from the other FMCG players keep them cautious.
Oil India Ltd.: Overall, it estimated crude oil production of 3.4 MMT and 3.5 MMT in FY16E
and FY17E, respectively, as civil issues in Assam continue to impact production. It estimates gas
production at 2.8 bcm and 3 bcm for FY16E and FY17E, respectively, as Brahmaputra Cracker
gets commissioned. However, lower LNG price in future is a risk to Oil Indias investment.
Summary of the group Findings

Which sector and industry and area of performance is the best and why?
Summarizing, As a subgroup for 2017 "Customers" we have concluded that in the year 2017 the
performance of the companies considering customer as their stakeholder has been quite good as
28/51 companies which means more than 50% companies are evaluated as good .Whereas 9/51
companies were evaluated as bad & remaining 14/51 companies were evaluated to be neutral.
Majority of the companies allotted can be categorized into 4 major sectors: FMCG, Finance and
Banking, Pharmaceutical and manufacturing and material processing. Out of the four FMCG has
been evaluated GOOD, Pharmaceuticals as BAD, Finance and Manufacturing as
NEUTRAL.
So FMCG is performing the best as it has conducted significant no. of campaigns throughout the
year, introduced different kind of products for catering to the changing demands, lowered the
prices and passed on the benefit to the customers, etc.
Do these Findings match or contradict with my individual findings?

Parisha- The overall findings and conclusion is in complete sync with my individual findings. Out of the
10 companies allotted 5 of them were categorized as good and 2 were in the FMCG sector and the group
conclusion is also that in the year 2017 the FMCG companies did a good job in terms of customers as
stakeholders.
Harsh- The overall findings and conclusion is not in complete sync with my individual findings. Out of
the 11 companies allotted 6 of them were categorized as good as majority of the firms were
Pharmaceutical and manufacturing companies with good ratings.
Archi - The overall findings and conclusion is in complete sync with my individual findings. Out of the
10 companies allotted 5 of them were categorized as good and 3 were from FMCG sector as implied in
the overall group conclusion.
Ashna-The overall findings and conclusion is not in complete sync with my individual findings. Out of
the 10 companies allotted 6 of them were categorized as good but majority were in the finance &
manufacturing sector and not FMCG .
Anurag-The overall findings and conclusion is in complete sync with my individual findings. Out of the
10 companies allotted 6 of them were categorized as good and were from FMCG sector as implied in the
overall group conclusion.

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2017

Companies categorized as neutral:

Summary of the group Findings

Do these Findings match or contradict with my individual findings?

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