EXECUTIVE SUMMARY

The purpose of corporate case study is to provide in depth knowledge of the company’s
operations, strategies and performance. Case study involves a comprehensive examination of a
specific company’s journey, challenges, successes and lessons learned through the observation of
the processes taking place for the complete production of the product.

It is useful in understanding the functions of the company or industry in their different sectors
like finance, human resource, marketing, information technology, production and logistics. It
also notifies about the performance standard of the company in its sector.

This study provides an overview of the industry, highlighting its key features, characteristics,
processes and significance in the modern era.

This case study examines the challenges faced by Roots Industries India Private Limited, a
leading manufacturer of automotive horns in India. The company has been facing increasing
competition from domestic and international players, as well as rising costs. In order to remain
competitive, Roots Industries India Private Limited has implemented a number of strategic
initiatives, including investing in research and development, expanding into new markets, and
forming partnerships with international companies.

The case study begins by providing an overview of the automotive horn market in India. It then
discusses the challenges faced by Roots Industries India Private Limited, and the strategic
initiatives that the company has implemented to address these challenges. The case study
concludes by summarizing the key findings and providing recommendations for future action.

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I. ORGANIZATIONAL PROFILE

1.1 INDUSTRY PROFILE

Automotive industry in India is one of the main pillars of the economy. With strong backward
and forward linkages, it is a key driver of growth. Liberalization and conscious policy
interventions over the past few years created a vibrant, competitive market, and brought several
new players, resulting in capacity expansion in automobile industry and generation of huge
employment. Aptly, the sector was christened as the ‘Sunrise Sector’ of the economy. The
contribution of this sector to the National GDP, rose from 2.77% in 1992-93 to about 7.1% now.
It provides direct and indirect employment to over 19 million people. India is fast turning into a
global automotive hub. However, the sector displays an uneven growth trajectory, at first taking
a hit in 2007-08, then showing marginal recovery, both in terms of sales as well as in production
next year that led to a dramatic increase of 25-27% in 2009-10 and 2010-3.5. However, for the
last two financial years in continuation, the industry has gone into recession. Barring the scooter
segment, each and every other vehicle segment showed negative growth in the year 2013-14,
commercial vehicles being the most effected with (-)21% growth in production and passenger
vehicles showing a growth of (-) 4.6% indicating reduced demand among the common people
who would have aspired to buy a passenger car. Even commercial passenger carriers have shown
negative growth in production to the tune of (-) 19.86% directly impacting the growth of public
transportation. After a capacity creation of Rs 2200 cr in 2011-12, the automotive industry is
now suffering from excess capacity and suppressed demand leading to lay-offs. Some of the
areas causing distress in the automotive sector are: slowdown in economic growth, high cost of
vehicle finance, high interest rates, high fuel prices, high inflation and negative market
sentiments, increase in the commodity prices, high customs duty on Alloy Steel, Aluminum
Alloy and Secondary Aluminum Alloy, high rate of service tax and excise duty, high and varied
rate of road taxes in the States, low growth of export markets etc. Ministry of Heavy Industries
and Public Enterprises has been consistently taking up the matter of providing some kind of
stimulus package with prompt fiscal and other measures to put the industry back on track. As a
result, in the interim budget for the year 2014-15, reduction in excise duty in case of cars, two
wheelers and truck chassis was announced. Further, some other measures are urgently required

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to be taken, such as, removal of customs duty of raw materials such as steel. Aluminum etc.
revisit of CENVAT rules, review of import policy, duty draw back schemes, excise and customs
rules, direct tax benefit to promote automotive R&D, and , above all, containing inflation and
control of interest rates to make loans more affordable to the people etc. Immediate steps are
required so that the Indian Auto Industry once again becomes the engine of growth of the Indian
manufacturing sector.

1.1.1 GLOBAL ASPECTS

Since 2020, the global automotive sector has faced decreased demands and production halts
resulting from the COVID-19 pandemic and automotive semiconductor shortages. This chip
shortage led to around 11.3 million vehicles being cut from worldwide production in 2021, and
forecasts estimate that these disruptions in the automotive supply chain will contribute to the
removal of another seven million units from production in 2022. Global automobile sales started
recovering from the drop they recorded during the pandemic, reaching 66.7 million units sold in
2021. This sales volume is forecast to keep increasing in 2022, though the 2023 sales volume is
expected to still be below 2019.

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The automotive industry is an essential economic criterion, is on the verge of new technologies
and innovations. Moreover, customers' unique and costly features demand is leading the
automotive industry in the modern era. Globally the automobile industry is supported by various
factors such as the availability of skilled labour at low cost, robust R&D centres, and low-cost
steel production. According to Renub Research, Global Automotive Market is expected to
reach 122.83 Million Units by 2030.

Globally, today consumers use all-purpose vehicles, whether they are commuting alone to work
or taking the whole family to the beach. The industry's principal categories include EV, HEV,
PHEV, MHEV, NGV, FCEV, Diesel and Petrol. The MHEVs represent a technological leap in
the automotive market—vehicles solely based on a combustion engine. From today's viewpoint,
combustion engine-based powertrains will remain dominant, at least for the coming decade. As
per this research report, Global Automotive Industry is expected to grow with a CAGR of
3.71% from 2020-2030.

1.1.2 NATIONAL ASPECTS

The automotive industry in India is the fourth-largest by production in the world as per 2021
statistics. In 2022, India became the fourth largest country in the world by the valuation of its
automotive industry. As of 2023, India is the third-largest automobile market in the world in
terms of sales.
As of April 2022, India's auto industry is worth more than US$100 billion and accounts for 8%
of the country's total exports and 7.1% of India's GDP. According to the 2021 National Family
Health Survey, barely 8% of Indian households own an automobile. According to government
statistics, India has barely 22 automobiles per 1,000 people.

India's major automobile manufacturing companies includes Maruti Suzuki, Hyundai Motor
India, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Force Motors, Tractors and Farm
Equipment Limited, Eicher Motors, Royal Enfield, Sonalika Tractors, Hindustan

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Motors, Hradyesh, ICML, Kerala Automobiles Limited, Reva, Pravaig Dynamics, Premier, Tara
International and Vehicle Factory Jabalpur.

India's automotive industry is poised to become the world's third-largest market by 2030,
showcasing its dominance in the international heavy vehicles arena. As the industry contributes
significantly to India's GDP and manufacturing sector, the nation is also emerging as a leader in
electric vehicle (EV) adoption.

Between April 2021 and March 2022, India produced a total of 22.93 million vehicles across
various categories, including passenger vehicles, commercial vehicles, three-wheelers, two-
wheelers, and quadricycles. India has cemented its place as the largest tractor manufacturer, the
second-largest bus manufacturer, and the third-largest heavy truck manufacturer in the world.
Currently, the automobile industry contributes 7.1% of India's GDP and accounts for 49% of its
manufacturing GDP.

The Indian government has demonstrated its commitment to the industry's growth by increasing
the budget allocation of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles
(FAME) II by 78% in the Union Budget 2023. All in all, India's automotive industry is set for an
upward trajectory, with strong growth potential in production, sales, and exports. As the nation
transitions towards electric vehicles, the industry's economic impact will further expand,
solidifying India's position as a global automotive powerhouse. The ongoing shift in consumer
preferences, increasing exports, and government support are key drivers in shaping the future of
the industry. As the automotive market continues to evolve, India's strategic focus on innovation,
infrastructure development, and sustainable practices will not only boost its economic growth but
also position the country as a leading player in the international automotive arena by 2030 and
beyond.
The contribution of this sector to the National GDP has risen to about 7.1% now from 2.77% in
1992-93. It provides direct and indirect employment to over 19 million people. India aims to
double its automotive industry size to Rs. 15 lakh crores by end of year 2024.

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1.1.3 REGIONAL ASPECTS

The state of Tamil Nadu has around 100 major auto component manufacturers with an
investment of USD 553.85 million, at present. The output is worth USD 1.2 billion with exports
of USD 140 million directly employing about 45000 people. Over 350 tier I to tier III suppliers
apart from 4000 SMEs under the tier IV segment are located in Chennai and some of the best
auto components manufacturers such as Visteon, Delphi, and others manufacture more than 25
percent of their components in the city.

One of the biggest auto components manufacturers in India is Tamil Nadu, with cities such as
Chennai and Coimbatore contributing around 35 percent of the total auto component production.
The Tamil Nadu auto component industry has contributed over 2.3 percent of the country’s GDP
and stood at USD 49 billion market value during the fiscal year 2018-19.

Tamil Nadu claims that Chennai is the largest contributor to the automobile sector in the country.
This is in terms of industrial output. Chennai the capital city of Tamil Nadu is also known as the
Detroit of Asia and Detroit of India owing to the presence of major automobile manufacturing
units in the city. Also, the four-wheeler vehicles in this city are the base of 30 percent of the
country’s automobile industry and 35 percent of its automobile component industry. The city has
an installed production capacity of manufacturing one car every 20 seconds, which is
approximately 3 cars per minute, and one commercial vehicle every 90 seconds.

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1.2 ORIGIN OF THE COMPANY

Roots Industries India Ltd. is a leading manufacturer of HORNS in India and the 11 th largest
Horn Manufacturing Company in the world. Headquartered in Coimbatore - India, ROOTS has
been a dominant player in the manufacture of Horns and other products like Castings and
Industrial Cleaning Machines. Since its establishment in 1970, ROOTS has had a vision and
commitment to produce and deliver quality products adhering to International Standards. With a
strong innovative base and commitment to Quality, Roots Industries India Limited has occupied a
key position in both international and domestic market as suppliers to leading OEMs and after-
market. Similar to products, Roots has leading edge over competitors on strong quality system
base. Now, RIL is the first Indian Company and first horn manufacturing company in
the world to get ISO/TS 16949 certification based on effective implementation of QS 9000 and
VDA 6.1 system requirement earlier. RIL has entered into technical collaboration with Robert
Bosch, SA to further enhance the technical competence. Roots' vision is to become a world-
class company manufacturing world-class product, excelling in human relation.

Roots Industries India Ltd as ISO9001:2000 firm and the parent company manufacture electric
horns currently holding 60% of the Indian Market Share. They are suppliers to leading
automobile manufacturers such as Volkswagen, Toyota, Mercedes – Benz, BMW, Skoda,
Navistar, Harley Davidson, Tata Motors, etc., are also the exclusive suppliers of the special type
horns to defence. Their export market covers above 40 countries, which include United States,
Japan, Germany, Russia, China, Italy and Africa, now the Roots has expended and concentrated
on industrial cleaning machines.

MISSION

The mission of Roots has always been to locate and to mould exceptional leaders and private
with all the sincere effort that solid basics to extend organization solutions to customers
worldwide and there by enhance the Roots competitive advantage. The company does so thought
long team and deeply committed human relations based on the key values like Activity focus,

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Discipline, Experience, Innovation, Integrity, Introspection, Professionalism, Quality Culture and
Team Work.

VISION

We will stand technologically ahead of others to deliver world-class innovative products

useful to our customers. We will rather lose our business than ourcustomer
satisfactions. It is our aim that the customer should get the best value for his money. Every
member of our company will have decent living standards. We care deeply for our families, or
our environment and our society. We promise to pay back in full measure to the society by way
of selfless and unstinted service.

1.2.1 ROOTS FAMILY

Roots Groups promoted by Mr.K.Ramasamy, A Master Degree holder in Automobile

Engineering from Lincoln Technical Institute, USA, has its corporate office at Coimbatore in
South India extending the philosophy of quality to all spheres of its activity in the market leader
in India for flagship product automobile horns.
Roots single minded pursuit of enhancing the quality of life has led to many others
diversifications. Roots today is a multi-faced corporate entity with interests in automobile
accessories cleaning equipment, castings, precision tools, hi-tech engineering services,
healthcare & education.

YEAR COMPANY

1970 ROOTS INDUSTRIES INDIA PRIVATE LIMITED

1984 ROOTS AUTO PRODUCTS PRIVATE LIMITED

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 1984 RK NATURE CURE

1985 ROOTS CAST PRIVATE LIMITED

1987 ROOTS PRECISION PRODUCTS

1988 ROOTS POLYCRAFT

1990 ROOTS MULTICLEAN LIMITED

1997 SATCHIDANANDA JOTHI NIKETAN

2013 SYONA (ROOTS FURNITURE DIVISION)

1.2.2 ROOTS MULTICLEAN LIMITED

Roots Multiclean Ltd based in Coimbatore, a Southern city in India known for its textile and
light engineering products, is joint venture Roots Industries Limited with Hako Werke GMBH
& Co. Germany is one of the largest manufacturers of cleaning equipment under license from
Hako since 1994, within the short span of 10 year it has become India’s largest manufacturers of
floor cleaning equipment, manufacturing manually operated and powered suction, Sweepers,
Scrubber Driers and the state of the art Mopping System.
The group comprises of server important manufacturing units with the state of the art
CAD/CAM/EDP/quality assurance centers with advanced equipments.

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1.2.3 ROOTS PRECISION PRODUCTS

Roots Precision Products was established in 1987 to address the in-house tooling needs of the
diverse industries in Roots group. Owing to continuous improvement and investment into better
resources, the company has become self-sufficient. It is catering to the needs of various
industries. RPP acts as a one-stop solution for tooling and precision machining. Specialized
in design and manufacture of:

 Press tools
 Injection moulds
 Dye casting
 Jigs and fixtures

1.2.4 ROOTS POLYCRAFT LIMITED

Roots Polycraft (PC) was established in 1988 to manufacture precision plastic components.
It is equipped with latest microprocessor injection moulding machines to maintain
consistent process parameters. Over the years, Polycraft has gained skills and unique techniques
to manufacture small and medium size components forAutomotive, Pump, Textile, and Medical
Industries besides meeting the captive requirements of Roots Group. Being fully equipped to
provide the best service, Polycraft has satisfied customers who have helped augment its
technological advances. The Company's commitment towards the customer is demonstrated
with quality products and service. This has resulted in continuous growth and product
diversification. The process is closely monitored with proven techniques to obtain consistently
good quality parts.

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1.2.5 ROOTS CAST PRIVATE LIMITED

Roots Cast Pvt. Ltd., (RCPL) (formerly known as Aruna Auto Castings Private Limited) was
established in 1984 to meet the captive requirements of the Roots group. With its ever probing
eye on the needs of the market, the company in the late 80s expanded its operations to
manufacture High Pressure Die Cast Aluminum and Zinc components to the exacting needs of
various customers in Automobile and Textile Industries with a high degree of Quality and
Perfection. RCPL now has established itself as a major player in the die cast component
manufacturing thanks to the expertise built in the core activities like tool design, tool making and
pressure die cast component manufacturing.

1.2.6 SYONA

Established in the year of 2013, Syona is an embodiment of their vision to create innovatively
designed world-class furniture products at affordable prices for the 21st century work spaces.
Currently catering Office Seating Systems & Public Seating Systems, Syona Chairs are a product of
several years of research and development and they are ergonomically & aesthetically designed to
ensure comfort & durability. At Syona, they manufacture more than 6 different models of
Ergonomic chairs, including Cafeteria Chairs & Tables and two types of Gang Chairs.

1.2.7 RK NATURE CURE

Care and healing at R K Nature Cure Home is offered as an in-patient facility. For chronic
conditions and specific ailments, patients are advised to stay for a particular period of time, so
that proper cure can be effected. Since the premises of Naturopathy is built in a planned manner
to offer all round care, the patient is subjected to a comprehensive mental, emotional,
physiological and psychological assessment. Following the professional clinical evaluation, their
treatment process will have a series of systematic detoxifying, healing, tonifying, reinforcing and
rejuvenating modalities which are targeted to facilitate harmonious restoration of state of health.
Education, awareness and self-discipline are vital to ensure that natural healing takes effect on

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the system. Therefore, lot of emphasis is given to educate and counsel the patient about the
consequences of unhealthy lifestyle and stress. This is done by taking patients through a
counselling session about self-evaluation and self-control management. Once the patients
complete their scheduled treatment plan, they are encouraged to adopt a systematic and regular
follow-up regimen to ensure the prolonged effect of nature cure interventions. 18 The most
critical component of natural cure is to re-establish the harmonious environment in the body to
restore the natural healing capacity and improve the vitality. This is a gradual process which
requires genuine conviction and discipline from the patient. Therefore, treatment can extend
from one week to few months, depending on the person’s age / chronicity of the health issue.
Naturopathy physicians work with the patients to empower them and offer appropriate guidance
to develop healthy lifestyle.

1.2.8 SATCHIDANANDA JOTHI NIKETHAN

SatchidanandaJothiNikethan International School (SJN) is a fully residential, CBSE co-ed school

located at Kallar, at the foothills of the Nilgiris. The campus is spread over a sprawling acreage
and creates a serene environment that is conducive to learning. The school is enveloped by
natural environs of the Western Ghats and therefore, is a home to a variety of 17 flora and fauna.
This has created an environment quite unique to the school, for children spending the best of
their formative years in the manner they should—amidst nature. SJN is today one of the most
respected and renowned schools in the region. Its ideals are secular and ample emphasis is given
to embracing the rich and diverse traditions and value heritage of our country. They inculcate the
young minds values, knowledge wisdom, sportsmanship and universal brotherhood through
inspiration and teaching based on the principles of Gurudev without compromising on their rich
values, culture and traditions of their great country. Marching towards Silver Jubilee,

SatchidanadaJothiNikethan International School in more than two decades of its long journey in
school education has believed strongly in producing global leaders who would take up any
leadership assignments with courage and conviction. The value based education that children
learn here is a strong foundation for their unwavering spirit and enthusiasm that reign in them all
through their lives. Today the school is rated one of the most sought after schools in providing

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Life skill based education, Sportsmanship laced with values at every curve of their lives.

1.2.9 CORPORATE SOCIAL RESPONSIBILITY

Social responsibility and the will to serve immediate communities are both values deeply
embedded in the DNA of the Roots Group. From implementing environment safety norms to
devising policies for judicious use of resources within the organisation, Roots and its team takes
its commitment to betterment seriously. A pre-determined percentage of the total group turnover
has always been allocated to community development causes. Roots Care Trust has five
divisions that focus on key areas of social development: environment, medical, education, social
and spiritual. All members of the Roots community volunteer in medical camps and take an
active role in spreading awareness of diseases and disorders. Education initiatives include
providing uniforms and study support material, addressing basic infrastructure in local schools
and construction of amenities like toilets and water tanks for the schools. Academically brilliant
students are encouraged to pursue higher education and are funded by the Trust. Social
development is focused on the adopted village of the group - Kathirnaickenpalayam. From
building toilets and other sanitation facilities, members of the group have been able to magically
transform the hamlet. Roots is a powerful propagator of road safety. In liaison with the
government and traffic divisions of Coimbatore city, the group embarked on a series of road
safety signboards. Members also volunteer at traffic signals during peak hours, to ease out
traffic. Every member of the group engages in active tree planting and awareness programmes on
environmental preservation.

1.3 ORGANISATIONAL CHART

An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles and responsibilities.
The organizational structure also determines how information flows from level to level within
the company. For example, in a centralized structure, decisions flow from the top down, while in

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a decentralized structure, the decisions are made at various levels.
Organizational structure defines a specific hierarchy within an organization, and businesses of all
shapes and sizes use it heavily. A successful organizational structure defines each employee's job
and how it fits within the overall system. This structuring provides a company with a visual
representation of how it is shaped and how it can best move forward in achieving its goals.
Organizational structures are normally illustrated in some sort of chart or diagram.

EXECUTION CHAIRMAN
AND MANAGING
DIRECTOR

K.Ramasamy

PLANT MANAGEMENT QUALITY INFORMATION TECHNOLOGY

FINANCE HUMAN RESOURCE
K.Saravana MANAGEMENT O.A.Bala
K.Ravi Kavidasan
Sundaram K.Guhan Subramaniam

1.4 FUNCTIONAL AREAS

 Human Resource Department.

 Marketing Department

 Information Technology.

 Production Department.

 Export Department.

 Accounts & Financing Department.

1.4.1 HUMAN RESOURCE DEPARTMENT

Human resources is a term used to describe the individuals who comprise the workforce of an

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organization, although it is also applied in labor economics to, for example, business sectors or
even whole nations. Human resources is also the name of the function within an organization
charged with the overall responsibility for implementing strategies and policies relating to the
management of individuals (i.e. the human resources). This function title is often abbreviated to
the initials 'HR'.

Human Resources may set strategies and develop policies, standards, systems, and
processes that implement these strategies in a whole range of areas. The following are typical of
a wide range of departments under HR in the organizations:

 Recruitment department
 Welfare department
 Administration department
 Salary department
 Training and development
 Safety department
 Statutory department
 Compliance department

Recruitment procedure

1. Receiving manpower recruitment

2. Collecting of resumes
3. Segregating of resumes
4. Screening of resumes
5. Calling for interview
6. Personal interview
7. Final interview
8. Discussion on compensation package
9. Employee verification and checking
10. Issuing offer letter

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11. Receiving the acceptance and finalizing the joining date
12. Instruction to candidates selected for employment
13. Appointment order
14. Joining formalities

Forms and documents used in recruitment process

1. Manpower recruitment form

2. Personal data form
3. General intelligence test
4. Technical awareness
5. Communication skill survey
6. Leadership questionnaire
7. Whole brain profile survey
8. Interview form
9. Employee background verification form
10. Offer letter
11. Appointment order
12. Environmental policy
13. Quality policy
14. Group discussion evaluation form

Performance appraisal

In order to improve performance on-the-job training / off-the-job, performance improvement

trainings are given. They help to improve potentiality and resources, to meet future needs of the
organisation also. In order to know training needs, performance appraisal is done by reporting
officer manually and analysed. The analysis identifies the workers who need training then the
training programs are organised. After completion of training the concerned department head
observes the worker, and gives the feedback after 3 months and not less than 6 months. After the

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evaluation the Head-Corporate HRD will initiate them for retaining if needed.
Performance Appraisal is done at all levels (Executives, Staff, Workers, Trainees and
Apprentices),

 Periodical Appraisal
 Reporting Officers
 Head of Departments
 HRD Intervention
 Implementation

1.4.2 MARKETING DEPARTMENT

Marketing is the process by which companies create customer interest in products or services. It
generates the strategy that underlies sales techniques, business communication, and business
development. It is an integrated process through which companies build strong customer
relationships and create value for their customers and for themselves.
Marketing pays a vital role in the Manufacturing Organisation. Roots products are marketed
directly or through sales branches established in different parts of our country and in other
countries. Customer requirements are captured, documented & deployed to the concerned
functions by marketing.

 Procuring orders & ensuring that we have the capability to do things as

committed tothe customers.
 Preparing requirement plan and forwarding to production planning and
controldepartment
 Dispatching the finished goods through the mode of transport as agreed in
thecontract

 Follow up of the payment collection

 Handling new methods for marketing our products.

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1.4.3 INFORMATION TECHNOLOGY DEPARTMENT

The Information Technology Department plays an important role by Computerization. The ERP
package and other in house and bought out software are controlled and monitored by this
Department

 The control of data in Electronic Media

 Developing and procuring new software to facilitate the user

 Procuring Hardware according to requirement is part of their activities.

 Day-to-day backups of the details regarding Sales, Purchase & Materials Inventory.

 Backups will be taken daily, weekly, monthly, half yearly and annually to
avoid thecorruption to the software.

Softwares used

 ERP - Enterprise resource planning

 SAP – System application software
 RIMS – Roots integrated management system

1.4.4 PRODUCTION DEPARTMENT

A production department is a group of functions inside a company that is in charge of producing

items. This can contain just a few specialized functions with all other labour outsourced, or a
fully operating department that processes raw materials, assembles components into finished
things, and packages them.

 The production management team (often consisting of a production manager

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 and any number of assistants) is responsible for coordinating the various sub-
disciplines (scenic, wardrobe, lighting, sound, etc.) of any large theatrical
presentation, as well asoverseeing the stage management team
 The production manager is the highest ranking person on the production staff
and answers directing to the general manager and or/artistic director.
 The production manager's job is rather fluid, however, and may also
include just about anything an enterprising producer or director may dream
up.
 The production manager's job is mainly supervisory, although it requires
excellent ‘people skills' in order to smooth over disagreements that inevitably
arise.

1.4.5 EXPORT DEPARTMENT

Roots Industries exports to more than 15 countries. Roots also supplies to Volkswagen, USA.
Original Equipment Manufacturers: - The horns manufactured by Roots Industries India Limited
are employed as Original Equipment by a number of vehicles manufacturers like Harley
Davidson, Navistar and BMW. It has ‘Roots industries Malaysia Sdn. Bhd, Malaysia and Russia
it has a separate production unit over there. Roots Industries Exports to the following countries.

 USA

 Germany

 UK

 Italy

 Vietnam

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 Belgium

 Netherland

 Japan

 Canada

 Sri Lanka

 South Korea

 Taiwan

 Finland

 Singapore

 Malaysia

 Iran

 Russia

 Philippines

 China

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Importer exporter code

IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade, Ministry
of Commerce, and Government of India to Indian Companies.

To import or export in India, IEC Code is mandatory. No person or entity shall make any Import
or Export without IEC Code Number.

Root Industries India Limited IEC Code: 3291000315

Types of exporters

Merchant exporter: Merchant exporter does not have own manufacturing unit
orprocessing factory.

Products: Flasher, Air Horns.

Manufacturer exporter: The manufacturer exporter procures and processes raw

materials at his factory and exports finished products.
Products: W 90, Wind tone Trio, W75, Vibromax, Vibrosonic Deluxe,
Supersonic, Clear tone Deluxe, FC4, FD4 Deluxe, Roots 90 etc.

Government subsidies

Exports from India Schemes

1. DUTY DRAWBACK - Duty drawback is a refund in payments that were initially collected
upon importation of foreign-made goods; these payments could have been for customs
duties, sales taxes, or other fees.

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2. MEIS - MEIS was introduced in the Foreign Trade Policy (FTP) for the period 2015-2020.
The MEIS was launched as an incentive scheme for the export of goods. The rewards are
given by way of duty credit scrips to exporters. The MEIS is notified by the DGFT
(Directorate General of Foreign Trade) and implemented by the Ministry of Commerce and
Industry.

3. RODTEP - RODTEP is a WTO compliant Scheme and follows the global principle that the
taxes/duties should not be exported, they should be either exempted or remitted to exporters,
to make the goods competitive in the global market. 2% Subsidy or incentive.

1.4.6 FINANCE DEPARTMENT

Finance is the science of funds management. The general areas of finance are business finance,
personal finance, and public finance. Finance includes saving money and often includes lending
money. The field of finance deals with the concepts of time, money, and risk and how they are
interrelated. It also deals with how money is spent and budgeted. One aspect of finance is
through individuals and business organizations, which deposit money in a bank. The bank then
lends the money out to other individuals or corporations for consumption or investment, and
charges interest on the loans.

The company uses SAP for maintaining financial data and presentation of financial data.

 All Banking action like Letter of Credit, Money Transaction and Normal
Banking activities are controlled and functioned.
 In case of Long Term Expansion the Finance Department helps the
organisation inarranging a Term Loan.
 The creditor’s payment are calculated and issued to them within the 60 days
after the material purchased.
 The Collection from the Debtors are calculated and collected within the 60 days
fromthe date which material issued to them.

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 Duties like Central Excise, Sales & Income Tax and Insurance are calculated
and issued to the Government at the proper time and date.
 Custody and safeguarding of Securities, Insurance Policies and other Valuable
Papers.
 Taking care of the mechanical details of new outside financing

 Record keeping and reporting

Risks

1) Business Risk

a) Market risk
b) Foreign investment risk
c) Competition risk
d) Business model risk

2) Operational risk

a) People
b) Technology risk
c) Process and systems
d) Fixed assets

3) Financial risk

a) Credit risk
b) Interest rate risk
c) Liquidity risk
d) Currency risk

23
Business plan
 Annual Business plan or else called short term plan which has a duration of 1 year or lesser.
 Mid-term plan has a duration of 5 years.
 Long term plan has duration of 10 years.

Finance reports role

1. Decision making
2. Judgement

Note: Roots have to maintain 7 years accounting records.

Techniques used

a) Capital Structure

In finance, capital structure refers to the way a corporation finances its assets through some
combination of equity, debt, or hybrid securities. A firm's capital structure is then the
composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in equity and
$80 billion in debt is said to be 20% equity-financed and 80% debt-financed. The firm's ratio of
debt to total financing, 80% in this example is referred to as the firm's leverage. In reality, capital
structure may be highly complex and include tens of sources. Gearing Ratio is the proportion of
the capital employed of the firm which come from outside of the business finance, e.g. by taking
a short term loan etc.

Leverage

In finance, leverage is a general term for any technique to multiply gains and losses. Common
ways to attain leverage are borrowing money, buying fixed assets and using derivatives.

24
Important examples are: A public corporation may leverage its equity by borrowing money. The
more it borrows the less equity capital it needs, so any profits orlosses are shared among a
smaller base and are proportionately larger as a result.

 Operating leverage is an attempt to estimate the percentage change in operating

income (earnings before interest and taxes or EBIT) for a one percent change
in revenue.

 Financial leverage tries to estimate the percentage change in net income for a
one percent change in operating income.

 The product of the two is called Total leverage, and estimates the percentage
change in net income for a one percent change in revenue.

This technique is mostly used at the time of annual report preparation. Capital Structure
technique is helps in calculating the leverage values and to calculate the Earnings per Share
Amount it is used. In Roots Industries they were using this technique for those purposes. It
benefits the company to identify their Share value in the market.

b) Capital Budgeting

Capital budgeting (or investment appraisal) is the planning process used to determine whether a
firm's long term investments such as new machinery, replacement machinery, new plants, new
products, and research development projects are worth pursuing. It is budget for major capital, or
investment, expenditures. Many formal methods are used in capital budgeting, including
the techniques such as

 Accounting rate of return

 Net present value

 Profitability index

 Internal rate of return

 Modified internal rate of return

25
  Equivalent annuity

These methods use the incremental cash flows from each potential investment, or project
Techniques based on accounting earnings and accounting rules are sometimes used - though
economists consider this to be improper - such as the accounting rate of return, and "return on
investment." Simplified and hybrid methods are used as well, such as payback period and
discounted payback period.

In Roots Industries the Capital Budgeting technique is used at the time of new project
development only. This technique helps them to identify the Payback Period, Rate of Return and
to calculate the Net Present Value this type of technique is mostly used.

c) Dividend Policy

Dividends are payments made by a corporation to its shareholder members. It is the portion of
corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that
money can be put to two uses: it can either be re-invested in the business (called retained
earnings), or it can be paid to the shareholders as a dividend. Many corporations retain a portion
of their earnings and pay the remainder as a dividend.

For a joint stock company, a dividend is allocated as a fixed amount per share. Therefore, a
shareholder receives a dividend in proportion to their shareholding. Retained earnings (profits
that have not been distributed as dividends) are shown in the shareholder equity section in the
company´s balance sheet - the same as its issued share capital. Public companies usually pay
dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a
special dividend to distinguish it from a regular one.
Cooperatives, on the other hand, allocate dividends according to members' activity, so their
dividends are often considered to be a pre-tax expense.

Dividends are usually settled on a cash basis, store credits (common among retail consumers'
cooperatives) and shares in the company (either newly-created shares or existing shares bought

26
in the market.) Further, many public companies offer dividend reinvestment plans, which
automatically use the cash dividend to purchase additional shares for the shareholder.

In Roots Industries the Dividend to the Share Holders is declared according to the Net Profit of
the company. If the company earns more profit, they will issue 15%-25% as the dividend to the
shareholders. In the year 2009 the company earned Rupees 665 Lakhs, so they issued 25% as a
dividend to the shareholders. If it earns less means then it will issue 5%-10% as a Dividend to
the shareholders.

1.5 RECENT DEVELOPMENT OF THE COMPANY

Roots Industries has made a number of recent developments, including:

 Investing in new technologies: The Company has invested in new technologies, such as
3D printing and machine learning, to improve its product development and
manufacturing processes.

 Expanding its global reach: The Company has expanded its global reach by entering
new markets, such as China and Brazil.

 Launching new products: The Company has launched new products, such as electric
vehicles and battery-operated vehicles.

 Initiating sustainability initiatives: The Company has initiated sustainability initiatives,

such as using recycled materials in its products and reducing its carbon footprint.

These are just a few of the recent developments made by Roots Industries. The group of
companies is constantly innovating and expanding, and it is likely to continue to grow and
succeed in the years to come.
Here are some recent developments made by Roots Industries India Private Limited:

27
  In 2022, the company launched its first electric bus, the Roots E-Bus.

 The company also launched its first battery-operated golf cart, the Roots Golf Cart.

 Roots Industries India Private Limited has also developed new products for the
automotive industry, such as electric horns and ultrasonic sensors.

 The company is also expanding its manufacturing capacity to meet the growing demand
for its products.

These are just a few of the recent developments made by Roots Industries India Private Limited.
The company is committed to innovation and growth, and it is likely to continue to be a major
player in the automotive industry in the years to come.

1.6 FUTURE PLAN

 The Company has already invested in new technologies, such as 3D printing and machine
learning. It is likely to continue to invest in automated technologies for production in
order to stay ahead of their competition.

 The Company has already expanded its global reach by entering new markets, such as
China and Brazil. It is likely to continue to expand its global reach in order to reach new
customers and grow its business.

 The Company has already launched new products, such as electric vehicles and battery-
operated vehicles. It is likely to continue to launch new products in order to meet the
needs of its customers and stay ahead of the competition.

 The Company may acquire other businesses in order to expand its product portfolio or its

28
 geographic reach. It can acquire business related to electric vehicle components, medical
equipments, and industrial automation.

 The Company has already initiated sustainability initiatives and is likely to continue to
initiate sustainability initiatives in order to reduce its environmental impact.

 The electric vehicle market is growing rapidly, and Roots Industries India Private
Limited is well-positioned to capitalize on this growth. The company could focus on
developing new electric vehicle products, or it could partner with other companies to
enter the electric vehicle market.

 Roots Industries India Private Limited is not just an automotive company. The company
also manufactures a variety of other products, such as furniture and medical equipment.
The company could expand into new industries, such as the healthcare industry or the
construction industry.

 Roots Industries India Private Limited is currently a privately held company. The
company could go public in order to raise capital and expand its business.

1.7 PRODUCT/SERVICE DETAILS

Automobile horns, halogen lamps, Brake pads, Brake shoes, Clutch plates, automotive batteries
for two and four wheelers application and sophisticated parking guide systems. The company
enjoys 60% market share in automobile replacement horn segment in India. Its growing market
leadership has given enough incentive for Roots Industries India Limited to explore Malaysia as
well.

Roots Industries India Limited is the first auto accessories manufacturing company to get ISO:
9001 in India, QS9000 and VDA 6.1 certifications in Asia and ISO/TS 16949 certification in
world. As an eco-conscious corporate, Roots Industries India Limited has also gained the ISO
14001 certification and also received the prestigious QI award from Ford motors.

29
Roots Automotives, the leading horn manufacturer in India, caters to the After-market. We have
a wide distribution network throughout India. We offer horns for cars, bikes, and commercial
vehicles. We are OEM suppliers to various automobile manufacturers across the country.

It is essential to have a high-quality automotive horn in your vehicle in India. Although honking
can be annoying and cause noise pollution, it is still an important accessory for your vehicle to
make others aware of you or avoid a collision. It is important to use the automotive horn because
it helps you stay in your lane and keeps an eye on people driving rashly or coming from the
wrong direction. Automotive horns can be classified based on sound tones, high/low pitch
options, and price ranges.

We, the horn manufacturer in India, have a variety of automotive horns for bikes, cars, tractors,
and trucks to meet your needs. We offer the horns that operate on 12V at 400/500Hz and 120dB
sound levels in various options

Roots Automotives is the best automotive horn manufacturer in India. Shop for all cars and bike
accessories. We are also one of India's Top Auto Accessories Manufacturers and Exporters.
Explore our exclusive collection of auto accessories includes led automotive lights, two-wheeler
batteries, car batteries, and two-wheeler brake shoes.

High precision engineering

 Medical
 Aerospace
 Oil and Gas
 Automobile and Textile

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Metrology services

 Calibration of Instruments in the field Mechanical, Thermal, Electro-Technical

 Onsite-Calibration
 Inspection of components
 Third party Inspections
 Training & Consultant

Syona roots

 Visitor Series
 Office Series
 Executive Series
 Cafeteria Series
 Gang Series
 Study Series
 Work From Home
 Health care series
 Educational institutional series

Roots MultiClean products

 Weepers, Scrubbers, CommercialVaccum Cleaners

 IndustrialVaccumCleanersHigh Pressure Jets
 Carpet Cleaner
 Escalator Cleaner
 Steam Cleaner
 Janitorial, Truci, Detergents& Pads

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Roots auto products private limited

 Air Horns
 Air Horn Accessories
 Auto Electrical Accessories

Roots cast private limited

 Castings and assemblies

 Door closers

Roots Polycraft

 Electric horn parts

 Air horn parts
 Ultrasonic welded trumpet assemblies
 Textile machinery parts
 Trumpets
 Cleaning machine parts

1.8 COMPETITOR BASED ANALYSIS

A competitor-based analysis is a process of identifying and analyzing your competitors in order

to gain insights into their strengths, weaknesses, products, and marketing strategies. This
information can be used to develop strategies to outperform your competitors and to achieve
your business goals.

 Bosch: Bosch is a German multinational engineering and technology company that is one of
the world's largest suppliers of automotive components. Bosch offers a wide range of
products, including horns, brake shoes, clutch plates, batteries, and sensors.

32
 ZF Friedrichshafen: ZF Friedrichshafen is a German multinational automotive supplier that
is one of the world's largest suppliers of automotive components. ZF offers a wide range of
products, including horns, brake shoes, clutch plates, batteries, and sensors.

 Magna International: Magna International is a Canadian multinational automotive supplier

that is one of the world's largest suppliers of automotive components. Magna offers a wide
range of products, including horns, brake shoes, clutch plates, batteries, and sensors.

 Cooper Standard: Cooper Standard is an American multinational automotive supplier that is

one of the world's largest suppliers of automotive components. Cooper Standard offers a
wide range of products, including horns, brake shoes, clutch plates, batteries, and sensors.

 Delphi Technologies: Delphi Technologies is an American multinational automotive

supplier that is one of the world's largest suppliers of automotive components. Delphi
Technologies offers a wide range of products, including horns, brake shoes, clutch plates,
batteries, and sensors.

 Lucas TVS: Lucas TVS is an Indian automotive component manufacturer headquartered in

Coimbatore. The company has been in the horn manufacturing business since 1958 and is
one of the leading manufacturers of horns in India.

The automotive component industry in India is a highly competitive market. Roots Industries
India Private Limited will need to be aware of its competitors and be prepared to compete on
price, quality, and customer service in order to succeed in this market.

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 1.9 AREAS OF IMPROVEMENT

The areas where Roots industries India private limited has recently improved:

 Employee engagement: The Company has implemented a number of initiatives to improve

employee engagement, including regular employee surveys, open-door policies, and employee
recognition programs. These initiatives have helped to create a more positive and productive
work environment.

 Customer service: Roots Industries has also made a number of improvements in the area of
customer service. The company has implemented a new customer service training program for
all employees, and it has also created a new customer service department that is dedicated to
resolving customer issues. These changes have helped to improve the company's customer
satisfaction ratings.

 Environmental sustainability: Roots Industries is committed to environmental sustainability.

The company has implemented a number of initiatives to reduce its environmental impact,
including energy efficiency measures, waste reduction programs, and water conservation
measures. These initiatives have helped the company to reduce its environmental footprint and
save money.

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 II. CASE STUDY DESCRIPTION/AS OBSERVED

2.1 PROBLEMS

 Product development: Roots Industries could improve its product development process by
investing in new technologies and by working with leading research institutions. This would help
the company to develop new and innovative products that meet the needs of its customers.

 Marketing and sales: Roots Industries could improve its marketing and sales efforts by
investing in digital marketing and by expanding its marketing team. This would help the
company to reach new customers and to grow its business.

 Customer service: Roots Industries could improve its customer service by providing more
training to its customer service representatives and by implementing a customer satisfaction
tracking system. This would help the company to provide a better experience for its customers.

 Innovation: Roots Industries could improve its innovation by investing in research and
development and by creating a culture of innovation within the company. This would help the
company to stay ahead of the competition and to develop new products and services that meet
the needs of its customers.

 Sustainability: Roots Industries could improve its sustainability by using more sustainable
materials in its products and by reducing its environmental impact. This would help the company
to reduce its costs and to improve its reputation.

 Work-life balance: Some employees have expressed concerns about work-life balance at Roots
Industries. The company could improve work-life balance by offering more flexible work
arrangements and by reducing the number of hours that employees are expected to work.

 Training and development: Roots Industries could improve its training and development
programs for employees. This would help employees to upskill and to stay ahead of the latest
trends in their industry.

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 Communication: Some employees have expressed concerns about the communication at Roots
Industries. The company could improve communication by creating more transparent channels of
communication and by ensuring that employees are kept informed of important decisions.

 Corporate culture: Roots Industries could improve its corporate culture by creating a more
positive and supportive work environment. This would help to attract and retain top talent.

2.2 PROBLEM STATEMENT

By observing in the Roots Industries India private limited and by interacting with the employees
and HR, we could state that there are many problems which can be rectified in order to improve
the organisation overall performance. Some of the problems which we noticed are as follow:

 Employee turnover: While interacting with the HR department personnel we came to know that
the employee turnover rate is high in roots industries India private limited.

 Customer retention: While observing the logistics and packaging department we could see that
there were products which was produced a while before but the company did not get any order
from that particular customer thereafter.

 Over production: By seeing the factories of manufacturing we could see more amount of
products are produced which involves extra cost as they have got orders but the customers didn’t
buy the orders.

 Safety issues: There were standard operating procedures available at all the machines but some
of the SOPs were having small fonts which usually are not visible from some distance and some
employees don’t even see the SOPs because they learn mutually from their peers which leads
them to not following the SOPs and even cause safety issues.

 Unpaid dividend: Referring to the annual reports of the Roots Industries India private limited
we came to know that the dividend is lastly paid 4 years ago. From then the dividend is
outstanding to the company.

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 More debt: By referring to the annual reports of the Roots Industries India private limited we
came to know that the company deals with more loans and advances. Compared to last year the
short term borrowings has raised by 5 times.

 Lack of research and innovation: There is a need for product development and hence Roots
Industries has to invest more in the research and development wing as well as innovate their
products to create more demand.

 No proper flow of communication: By visiting the organisation, we can say that there is a
communication bridge between the employees and the management. The communication
withstands within the department.

2.3 KEY AREAS ADDRESSED

The key areas to be addressed in this case study are as follows:

 Roots Industries India Private Limited needs to continue to innovate in order to stay ahead of the
competition. This could involve developing new products, improving existing products, or
finding new ways to use its products.

 Roots Industries India Private Limited has a limited international presence. The company could
expand into new markets, such as Europe and the United States, in order to grow its business.

 The company needs to find ways to reduce its costs in order to remain competitive. This could
involve streamlining operations, negotiating better deals with suppliers, or investing in new
technology.

 The company needs to focus on customer satisfaction in order to keep its customers coming
back. This could involve providing excellent customer service, offering warranties, or
developing new products that meet the specific needs of its customers.

 The company needs to focus on employee motivation in order to retain the employee working in
the organisation. Employee is the heart and soul of the organisation, therefore the company has
to reduce employee turnover.

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 2.4 CONCEPTUAL OUTLAY

 Chapter I: The first chapter deals with the industry profile of the company and about its global,
national and regional context and the organizational structure, their future plan and about their
competitors and the areas which they have improved.

 Chapter II: The second chapter deals with the Problems faced by the company and the main
problematical areas are addressed and assumptions are given and the outcome is predicted to
some extent.

 Chapter III: The third chapter deals with analyzing the problem with facts and providing a
feasible solution for the problem that will be useful by the company.

2.5 ASSUMPTIONS

 The communication channels in roots industries India private limited is transparent and all
the information are communicated to the employees of the organisation.

 It is assumed that new technologies have been adopted in roots industries for new product
development.

 Roots industries has entered into digital marketing field for vast marketing at low cost.

 It has implemented customer satisfaction tracking system to provide good customer

oriented products as per customer specifications.

 More investments in research and development for more innovations to improve its
operations.

 Usage of more sustainable raw materials for the purpose of production.

 It is assumed that roots have intense training and development programme taking place
every year.

 Roots industries will continue to grow its market share all over the world.

38
2.6 JUSTIFICATION / PREDICTED OUTCOME

By implementing the assumptions employees are more likely to trust their employer if they feel
that they are being kept informed about what is happening in the company. This can lead to
increased loyalty and commitment to the company. They feel like they are part of the decision-
making process, they are more likely to be engaged in their work. This can lead to increased
productivity.

New technologies can help companies to develop new products more quickly. This can give
companies a competitive advantage in the marketplace. This help companies to develop products
that are more reliable and durable. This can lead to increased customer satisfaction. Due to new
technology the cost of new product development will decrease which will lead to the resources
that can be used to develop new products or improve existing products.

Digital marketing campaigns can be tracked and measured, so businesses can see how their
campaigns are performing. This can help businesses to optimize their campaigns and get the
most out of their marketing budget. This campaigns can be targeted to specific audiences, so
businesses can reach the people who are most likely to be interested in their products or services.
This can help businesses to save money and get better results from their marketing campaigns.

By tracking customer feedback, the company can identify areas where its customer service can
be improved. This can lead to happier customers and increased customer loyalty. The company
can reduce the number of customer complaints and returns.

Sustainable materials can be used to create new products, reducing the need for other materials.
This can help to conserve natural resources and reduce pollution. This can help to protect the
environment and reduce the amount of waste. This can help to conserve the environment and
ensure that future generations have access to these resources.

Employees who receive regular training are more likely to have the skills they need to do their

39
jobs effectively. This can lead to increased productivity and efficiency. This will lead them to be
more trained in using machines which would reduce the amount of safety issues for the
employees while working with the machines. A strong training and development program can
help to create a culture of learning and continuous improvement.

III. ANALYSIS AND RECOMMENDATIONS

3.1 ANALYSIS IN ELABORATE WITH FACTS AND FIGURES

3.1.1 SWOT Analysis

SWOT analysis is a framework used to evaluate a company's competitive position by

identifying its strengths, weaknesses, opportunities and challenges. Specifically,
SWOT analysis is a foundational assessment model that measures what an
organization can and cannot do, and its potential opportunities and threats.

SWOT analysis is a basic, analytical framework that assesses what an entity — usually
a business, though it can be a place, industry or product — can and cannot do, for
factors both internal and external. Using environmental data to evaluate the position
of a company, a SWOT analysis determines what assists the firm in accomplishing its
objectives, and what obstacles it must overcome or minimize to achieve desired
results: where the organization is today, and where it may go.

40
 STRENGTH WEAKNESS

OPPORTUNITIES THREATS

STRENGTH

 It is a reputed company which involves all the process functioning from

manufacturing, production, quality management, finance and accounting till
exporting.

 The first Indian Company and first horn manufacturing company in the
world to get ISO/TS 16949 certification.

 They are providing good customer satisfaction.

 It is a multi-faced corporate entity.

 Their export market covers above 15 countries, which include United States, Japan,
Germany, Russia, China, Italy and Africa, now the Roots has expended and concentrated on
industrial cleaning machines.

 The entire accounting and infrastructure control has been computerized.

 The group comprises of several important manufacturing units with the state of the art
CAD/CAM/EDP/quality assurance centers with advanced equipments.

41
 Commitment to quality and customer satisfaction

WEAKNESS

 As it’s a multi-faced organisation there is a heavy workload.

 There are more labour requirement for many process completion.

 Lack of advertisement and media communication.

 High manufacturing costs

 Limited international presence

OPPORTUNITIES

 They can extend their service in many countries.

 They can enter into various parts manufacturing in automobile industry.

 They can open their own branches in various countries.

 They can tie up with international industries.

 Growing Indian automotive market

THREATS

 They must ensure to have complete visibility throughout their supply chain for their own
compliance and that of their suppliers.

 It should be more structured in approach to managing innovation.

 Regular preventive maintenance should be taken care.

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3.1.2 FIVE FORCES MODEL

The Five Forces Model, also known as Porter's Five Forces, is a strategic framework developed
by Michael E. Porter to analyze the competitive forces within an industry. It helps businesses
understand the competitive landscape and identify factors that could impact their profitability
and long-term sustainability.

The five forces model suggests that Roots Industries India Private Limited faces a moderate level
of competition in the automotive horn market. The company needs to be careful to manage its
bargaining power with suppliers and buyers, and to keep its prices competitive. It also needs to
be constantly innovating and improving its products in order to maintain its competitive edge .

Bargaining power of suppliers: The bargaining power of suppliers in the automotive horn
market is relatively low. There are a few large suppliers of automotive horns, but they are not
essential to the success of any one company. This is because there are a number of alternative
suppliers that Roots Industries India Private Limited could use if necessary.

Bargaining power of buyers: The bargaining power of buyers in the automotive horn market is
also relatively low. There are a large number of buyers of automotive horns, including car
manufacturers, auto parts distributors, and individual consumers. This means that Roots
Industries India Private Limited has a lot of bargaining power with its buyers.

43
Threat of new entrants: The threat of new entrants into the automotive horn market is
moderate. There are a few barriers to entry, such as the need for specialized manufacturing
equipment and the high cost of research and development. However, these barriers are not
insurmountable. As a result, there is a moderate risk that new entrants could enter the market and
compete with Roots Industries India Private Limited.

Threat of substitutes: The threat of substitutes in the automotive horn market is high. There are
a number of alternative products that can be used to make noise, such as air horns and electric
whistles. This means that Roots Industries India Private Limited needs to be careful to keep its
prices competitive and to offer high-quality products.

Rivalry among existing firms: The rivalry among existing firms in the automotive horn market
is high. There are a number of well-established companies in the market, including Roots
Industries India Private Limited, Bosch, and Hella. These companies compete on price, quality,
and features. As a result, Roots Industries India Private Limited needs to be constantly
innovating and improving its products in order to maintain its competitive edge.

3.2 SOLUTION ADDRESSED

Solving issues is an important task in any company because without constantly updating
themselves and solving issues within the company. Finding and solving is all about growing so
with properly finding and solving the problems will lead to a smooth flow of the business.

By observing Roots industries, I found that there is no proper flow of communication or

exchange of information which is not welcoming. Products and service provided by the
organisation is not appropriate to the standards of their customer. Employee should be retained
for long term which will lead to many benefits.

Dividend should be paid regularly to the shareholders, which is their priority of buying their

44
company shares. The production should take place as per orders. More of equity can be used to
raise capital instead of using debt as primary priority.
Safety standards should be increased in all the departments of production and testing. More
knowledge should be given as an input to the employees for more safety purposes. Giving more
responsibility and freedom to work can lead to more innovation and improvement in products
and services.

3.3 SELECTING THE BEST SOLUTION FOR IMPROVEMENT AREA

I can suggest some alternative solutions to solve their issues in the organisation:

 Reducing employee turnover is very important because employees are the heart and soul of
the organisation who work in shifts to do all the operations of the organisation. Employee
turnover can be reduced by finding the right person for the right job role.
Retaining customer for a longer period means they have an assured return for their
company. In order to retain the customers, creating customer loyalty is an important factor.
Production are done basically after orders but the company should create trust among the
customer before the production is done.

Dividend can be paid regularly because shareholders are as important as assets. Hence,
dividend can be paid from the net profit instead of investing in assets of the organisation.
Safety training should be made compulsory to all the employees of the organisation.

 Employee turnover can be reduced by giving appropriate training, rewards and recognition
to the employees. Creating learning development programmes and encouraging employees a
healthy work life balance.

Collecting feedbacks from customers regularly and providing after sales service
appropriately. Analyzing the customer needs and providing the best quality and satisfaction
to the customers in order to retain them. Maintaining good relationships with the customers
so they are part of your organisation for long period.

45
 As the company is not giving dividend the company can right issue their shares for their
dividend proportion. The company can invest more on safety alarms and censors. Training
professional can be hired and given on the job and off the job training to the employee for
their wellbeing.

3.4 IDENTIFICATION OF THE BEST SOLUTION

Reducing employee turnover is very important because employees are the heart and soul of the
organisation who work in shifts to do all the operations of the organisation. Employee turnover
can be reduced by finding the right person for the right job role. The hiring process should be
taken seriously while hiring the employees. The education qualification can be in respect of the
job specification and job description. Employee wellness programmes can be conducted within
the organisation to keep a check on employee’s welfare. Rewards and recognition can be given at
times for their work contribution to motivate them more, so that they put their maximum effort.
Salary increments can act as a tool to reduce the employee turnover. Creating friendly and
positive work environment by building good relationship among all employee. Equally treating
all the employees of the organisation. Giving importance to their ideas and thought and
encouraging them to speak so that they are given opportunity of providing their inputs in some
areas.

Retaining customer for a longer period means they have an assured return for their company. In
order to retain the customers, creating customer loyalty is an important factor. For creating
customer loyalty the company should provide good quality products and services. The company
should be responsible for customer issues and complaints. The organisation should be empathetic
towards their customers. Regular healthy communication and engagement with the customer is
mandatory. Providing innovative products and continuous improvement or upgrade of product.
Collecting customer feedback to analyze the customer needs and provide them the best quality
and satisfaction to the customers in order to retain them. Each customer would have their own

46
specification in their orders which has to be completely fulfilled by the company to retain the
customers.

Production are done basically after orders but the company should create trust among the
customer before the production is done. Hence, the company should enter into a contract with the
customer about the order and the date it should be delivered. On time delivery of products and
customer satisfaction should be the priority. Usually many companies produce products for the
regular customer without getting order and if the customer is not ordering then it would be a
wastage of resources by the organisation. Some companies give advance amount with their
order, but don’t buy the products which are kept unsold for those customers the company can
enter into agreement whom the company is not entrusted with.

Dividend is the part of the net profit which is given to all the shareholders after paying all the
debts. We could see that the company is investing more on technology and assets instead of
paying dividend to the shareholders. So the company can pay dividend then if amount remains
then they can enter to investing in assets. If there is delay in paying dividend they can right issue
shares to the shareholder.

By reviewing the balance sheet of the last five years we could see that there is continuous
increase in debt for raising capital for the company. In the reports we found that 80% of equity
shares has been used to raise capital till now. Hence instead of going for debt fully the company
can issue a combination of both equity and debt. For debt the company has to repay the principal
amount with interest which higher than paying dividend to the shareholders.

Safety training should be made compulsory to all the employees of the organisation. The
company can implement a comprehensive safety program that includes training for employees on
how to handle materials safely. The company can also create a system for tracking the use of
materials. The company should provide proper safety equipment and should not compromise
with the quality of safety products. As roots industries mainly deals with sound as the company
is in horn manufacturing operations, the employees who are in testing and quality control should
be given proper earplugs so that it does not affect the employee health.

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Company can invest more in research and development because bringing innovative products
can be eye opener as the company can extend its product line and there won’t be any competition
at the early stage and you can capture the market at ease. Innovative products can attract more
customer which can lead to more increase in revenue and ultimately it would lead to more profit.
The company can hire more employees in the research and development to increase the pace of
innovations.
The communication channel should be corrected as there is a big gap in communication between
the employee and departments. The human resource manager can play an important role in
correcting the communication because the hiring, recruitment and training is given by the human
resource department. There should be a plan which outline the company's communication goals,
as well as the channels and methods that will be used to communicate with employees,
customers, and other stakeholders. Roots industries should encourage open communication so
that employees feel comfortable in communicating within the organisation. When
communicating with employees, customers, or other stakeholders, the company should be honest
and open about its plans and decisions. The company should let people know how you are
feeling about their communication and offer suggestions for improvement.

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3.5 CONCLUSION

By doing case study I got learnings about the roots industries India private limited, how it works,
what is their objectives, how much money they make, what products and services they provide
and what are the problems the organisation is facing and finding solution for the problems.

Roots Industries India Private Limited is a leading manufacturer of automotive horns in India.
The company has a strong track record and is well-positioned to benefit from the growth of the
automotive industry in India.

The company can continue to improve its performance by addressing its issues that it faces,
improving its communication, and implementing a comprehensive training and development
program.

Overall, Roots Industries India Private Limited is a well-managed company with a bright future.
By addressing the challenges that it faces, the company can continue to grow and succeed.

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BIBLIOGRAPHY

For preparing this project report, I have taken guidance from various sources which are as
follows:

 Dhivyasri, G., & Joel Jebadurai, D. (2018). An Organizational Study at Roots Industries India
Limited.

 Kim, D. H., & Song, J. Y. (2017). Equipment Maintenance Environment Based on Field-Data of
Root Industry by Manufacturing-Field Analysis. Journal of the Korean Society for Precision
Engineering, 34(1), 19-22.

 Ucler, C., &Vayvay, O. Problems and root causes in product realization in high technology
oriented industrial equipment production organizations.

 Khajavi, S. H., Partanen, J., &Holmström, J. (2014). Additive manufacturing in the spare parts
supply chain. Computers in industry, 65(1), 50-63.

 Murphy, M. A. (2018). Early Industrial Roots of Green Chemistry and the history of the BHC
Ibuprofen process invention and its Quality connection. Foundations of Chemistry, 20(2),
121-165.

 Ashworth, W. J. (2010). Quality and the Roots of Manufacturing “Expertise” in Eighteenth-

Century Britain. Osiris, 25(1), 231-254.

 Jasial, S. S., & Zaid, M. (2015). Improving Quality of Leather Products Using Root Cause
Analysis: A Case Study of Kings International Limited. Review of Professional Management,
13(2), 55-65.

 Piore, M. J., & Safford, S. (2006). Changing regimes of workplace governance, shifting axes of
social mobilization, and the challenge to industrial relations theory. Industrial Relations: A
Journal of Economy and Society, 45(3), 299-325.

 Company annual reports (2017,2018,2019,2020,2021,2022)

 https://www.rootsindia.com/

 https://www.alliedmarketresearch.com/request-sample/17407

 https://bard.google.com/

 https://chat.openai.com/

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