Final report

Industrial Visit to V-GUARD Industries Ltd

1. Introduction

V-Guard Industries Ltd is a major electrical appliances manufacturer in India, and

the largest in the state of Kerala with an annual turnover of 7 billion. Established in 1977,

from the vision of one man Kochouseph Chittilappilly, V-Guard is nurtured by his quality

consciousness, passion for hard work and the will to succeed. V-Guard continues to

remain at the helm through rigorous research and development. R&D labs at Cochin and

Coimbatore explore and reinvent existing products and design. R&D for electronic

products and electric geysers are carried out in Cochin while electro-mechanical

products, electrical wires and solar water heaters are the strong point of the Coimbatore

R&D lab. State of the art production centers ensure consistency and quality throughout

the product range.

2. History of the Organization

2.1. History

The foundation of V-GUARD was laid with the formation of a Partnership

Concern viz. Premiere Electronics by the Promoter in the year 1977 which was engaged

in the business of manufacturing and marketing voltage stabilizers under the brand name

"V-Guard". In the year 1992, Premier Electronics, the partnership concern was dissolved

and Mr. Kochouseph Chittilappilly continued the business as a proprietary concern.

Also, in the year, 1985, Mr. Kochouseph Chittilappilly started another proprietorship

concern by the name of M/s Prompt India for marketing of the products under the brand

name of V-Guard. Subsequently, M/s Prompt India changed its name to M/s V-Guard

Industries.

On February 12, 1996, the Company was incorporated under the name of "V-Guard

Industries Limited" under the Companies Act, 1956, with the Registration No. 09-10010

of 1996 having its registered office at 44/1037, Little Flower Church Road, Kaloor,

Cochin- 682017, Kerala, India.

With effect from 1st April, 1996, the company took over the business of the proprietary

concern i.e. M/s V-Guard Industries, ongoing concern basis for a lump sum consideration

2Government Polytechnic College Kumily


of Rs.234 lakhs and carried on the business of the firm namely manufacturing and

marketing of electronic and electro mechanical appliances.

With effect from Novermber 15, 2001 the Company was converted into a private limited

company and again got converted into a public limited company on August 1, 2007 and

received a fresh certificate of incorporation in the name of "V-Guard Industries Limited".

The company now has diversified into a multi-product company which now

manufactures and markets Electronic Voltage Stabilizers, Monobloc, Jet, Submersible,

Compressor Pumps and Electric Motors, Insulated Electrical Cables (House Wiring,

Industrial), Electric Storage & Instant Water Heaters, Solar Water Heaters, UPS, Electric

Fans and is also in generation of Power in a small way.

2.2. Milestones

1977 : Mr. KochousephChittilappilly begins Premier Electronics with an investment of

one lakh. He had just two employees. Two Refrigerator Stabilizers were

manufactured each day.

1980 : Launched AC Stabilizers.

1982 : Started another unit called Universal Electronics.

1983 : Started Supreme Electronics

1985 : Started Electro Controls

1986 : Started Prompt India. Opening of Tamil Nadu branch, followed by a branch in

Karnataka.Prompt India started marketing Stabilizers in the brand name of V-

Guard.

1987 : Launched Servo-Controlled Stabilizers.

1989 : Prompt India converted into V-Guard Industries

1990 : Launched Quartz Clocks.

1991 : New branch office in Andhra Pradesh



1992 : V-Star Creations unveils Branded Churidars unique in the country.

1996 : V-Guard Industries becomes a Public Limited Company.Launched V-Guard

Water Heaters and Wiring Cables.

1997 : Launched Aquatron, an Electronic Water Level Controller for overhead water

tanks.

1998 : Launched UPS (Online & Offline).

1999 : Launched Digital Stabilizer, V-Guard Cable manufacturing unit inaugurated at

Coimbatore.

2000 : Veega Land, South India’s major amusement park is opened at Cochin.

2000 : Turnover crosses INR 1000 Million Mark.

2001 : Launched Compressor Pumps.

2001 : Company is converted into Private Limited for better maneuverability.

2002 : Launched V-Guard Solar Water Heaters.

2003 : Solar Water Heater manufacturing unit and Electro Mechanical Works for

manufacturing pumps both in Coimbatore becomes operational.

2003 : 2*230 KW Wind Mills goes operational in Erode District,Tamil Nadu.

2005 : Launched Solar Water Heaters with Evacuated Glass Tube Collector

Technology.

2005 : Turnover crosses INR 1500 Million Mark.

2005 : Opening of 2nd amusement park “Wonderla” at Bangalore

2006 : Shri Mithun K Chittilappilly joins V-Guard as Executive Director

2006 : Launched V-Guard Fans

2006 : Branch Office in Hubli, Bhubanaswar and Pune.



2007 : Branch office at Vijayawada, Bhopal, Kala Amb and Vadodara. Turnover

crosses INR 2400 Million Mark. V-Guard Industries becomes a Public Limited

Company. Branch Office at Kanpur, Nagpur, Raipur,Jamshedpur, Kolkata,

Ludhiana, Jaipur.

2008 : Listed in BSE & NSE. Launched Inverters / DUPS&LT Cables.

2009 : Opened New LT Cable Factory at Coimbatore and Wire &Cable factory at

Kashipur.

2009 : Opened Manufacturing facility for Water Heaters and Fans at Kala Amb, HP.

2010 : Opened new Corporate Office at Vennala, Cochin.

2010 : Formation of SCM division for better control in purchase and distributions.

2010 : Turnover crosses 4600 million marks.

2011 : Turnover crosses 7263.5 million marks.

2011 : New branch offices in Ghaziabad, Dehradun, Patna andChandigarh

2012 : New branch office in Guwahati

2012 : Turnover crosses 10,000 million marks

2012 : April 1st ,Board of V-Guard restructured with, Shri Kochouseph Chiittilappilly

as Executive Vice Chairman and Shri Mithun Chittilappilly asManaging Director

2.3. Corporate Governance Philosophy

Corporate governance is all about commitment to values and ethical business

conduct. It encompasses adhering effectively to the governing laws, procedures,

practices and the implicit rule that determines a management’s ability to make sound

decisions in the best interest of all stakeholders viz, shareholders, customers, employees,

creditors, the suppliers etc. At V-Guard Industries Limited, both the Board of Directors

and the Management are committed to the adoption of best governance practices and its

adherence in the true spirit, at all times. The Corporate Governance arrangements of the



Company are under constant review. The Board of Directors performs the pivotal role in

the governance system and constantly reviews the existing practices adopted and strive

to improve them in the best interest of all stakeholders. The decision making process at

the Company is transparent and documentary evidence is available for each and every

transaction of the Company. The Board has also formed various sub-committees and

defined guidelines and formulated framework for the meetings of the sub-committees.

The members of these sub-committees discuss and deliberate the matters and proposals

which are coming within their terms of reference and provide its recommendation to the

Board to take accurate decisions. The Board also ensures that accurate and timely

financial and strategic information are given to the present and potential investors. The

Company is in compliance with the guidelines on Corporate Governance as stipulated

under Clause 49 of the Listing Agreement executed with Stock Exchanges where the

shares of the Company are listed.

3. Area of expertise

Amalgamating digital technology in to everyday life is the main area of expertise

of V-GUARD Industries Limited. The company’s product basket has the following

categories of products.

Voltage Stabilizers

Wiring Cables

Pumps

Motors

Geysers & Water Heaters

Fans & UPS

Switch Gears & Induction Cookers

Power control cables

Digital UPS

Inverters & Batteries

Switch gears

Distribution Boards



Voltage Stabilizers - The largest selling stabilizer brand in India and trusted by millions, V-

Guard stabilizers offer the best technology with features like automatic restart, turn-on delay,

time-delay system and high-low voltage cut off that provide efficient and reliable protection for

electronic appliances against voltage problems.

v-guard stabilizers are unmatched in every sense. It’s 'jellybean' design is registered to

prevent cheap imitations’-guard stabilizers come in different capacities for different applications

like Air Conditioner, LCD TV, Music System, Refrigerator, washing machine, Microwave oven

and treadmill. Main line stabilizers are available for general purposes.

Wiring Cable - V-Guard cables are manufactured in a fully automated ISO 9001 certified

factory at Coimbatore and Kashipur complying with world class quality standards. ISI marked

V-GUARD cables are come with HFT technology, 3 – layer insulation and length assurance seal

in every 90 meters. These high quality cables ensure complete and reliable protection against all

electricity hazards. Multi – core flat, round, LT power cables and control cables are also

available. All cables are available in FR and FRLS variants.



Better flexibility

Fire retardant

ISI certified

Low resistance

Short circuit proof

Assured length

Triple layer

HFT technology

Power and Control Cables – V-GUARD’s power and control cables are manufactures in a fully

– automated ISO 9001 certified factory in Coimbatore and comply with world class quality

standards. All cable designs confirm to IS : 7098 (Part 1) for XLPE and IS:1554 (Part 1). For

PVC insulated cables, for working voltages up to including 1.1 KV. These high quality cables

ensure complete and reliable protection against electricity hazards. V-GUARD LT power and

control cables come in armored and unarmored variants.

Pumps - Ultra efficient V-Guard pumps with high speed pumping technology can pump water

even from the deepest of wells very quickly, hence saving time and electricity. vguard pumps are

made from top-grade castings, fine components and high quality aluminum. With a wide

application range, these pumps are available in more than 400 models ranging from 0.25 to 25

HP (including 3-phase models) for domestic, agricultural and commercial purposes

Conforming to international standards

Wide dealer network

Extensive and well-equipped service center network

Cost-effective and Star-rated models


SINGLE PHASE PUMPS

SELF PRIME

CENTRIFUGAL

OPEN WELL SUBMERSIBLE

TUBE WELL SUBMERSIBLE

JET PUMPS AND COMPRESSOR

3 PHASE PUMPS

CENTRIFUGAL MONOBLOCK PUMPS

OPEN WELL SUBMERSIBLE PUMPS

BORE WELL SUBMERSIBLE PUMPS

MOTORS

THREE PHASE MOTOR

SINGLE PHASE MOTOR

SINGLE PHASE COMMERCIAL MOTOR

COOLING TOWER MOTOR


Geyser / Water Heaters - V-Guard offers a wide range of instant and storage model water

heaters that combine quality and technology. Our latest ‘Energy Saving Technology’ with 5-

star rating saves up to 50% energy and the ‘ Penta Protection System ‘ assures maximum user

safety. The outer body is made of high-quality ABS and powder-coated metal. V-guard

water Heaters are available in 1,6,10,15,25,35,50,80 and 100 liter capacities in different

models like Electric Water Heater, Gas water Heater and Immersion Heater, to suit your

bathrooms and kitchens.

Penta Protection System

Elegant Design

ISI Accredited

‘Energy Saving ‘ technology

ABS Body

Solar Water Heaters - V-GUARD solar water heaters with international ETC (Evacuated

Tube Collector) technology are way ahead of the competition, in terms of quality, technology

and efficiency. The ETC system facilitates efficient absorption and utilization of solar

energy, with minimal heat loss. Approved by the Ministry of New and Renewable Energy

(MNRE) , V-GUARD solar water heaters are eco-friendly and non-polluting as they do not

consume electricity or fuel to heat water. Suitable for domestic and commercial purposes, v-

guard solar water heaters are available in 100,125,150,200,300,500,1000,2000,3000,4000

and 5000 LPD capacities. Manufacturing of V-guard water heaters takes place in an ISO

Certified factory in Coimbatore.

High-quality components

International technology standards

Evacuated Tube Collector

Lifetime Investment

Fans - V-Guard fans come with unique ‘high –Angle technology’ and specially designed

blades that facilitate ‘full-coverage’ of cool breeze in the entire room. The sleek metal



painted body and stylish design, and add a touch of class to the interiors. V-guard fans are

available in different models and colors.

Double Ball Bearings

Powder Coated /Metallic Finish

Rust resistant

Consistent performance

Digital UPS, Inverter, Batteries and Trolley - An innovative power back up device , V-

Guard digital UPS , designed and developed by V-guard’s ISO 9001-2008 Certified R&D,

comes with the latest technology and unique features to manage power failures efficiently.

Designed for contemporary living, V-Guard digital UPS, compared to ordinary generators is

stylish in looks, ultra-compact, light-weight, noise-free, pollution-free and can be kept

indoors.

Made from high quality components , v-guard digital UPS is equipped with advanced

Micro-Controller based line interactive technology and a host of features like MOSFET

based power stage with PWM output , FRCM (fly-back Reactance Charging Alumin

Method) with UST (Uni Polar Switching Technology) for uninterrupted back-up during

power failures.

Switch Gears – V-Guard switch gears have been designed with world class tripping

mechanisms to ensure maximum safety. Manufactured to deliver excellence in quality and

reliability, our range of switchgears cover MCBs, RCCBs and isolators varying in number of

poles and ratings to suit every requirement.

Fully confirming to IEC international standards

High quality molded casing with superior thermal and dielectric properties

Improved and rugged design of operating mechanism.

State-of-art arc running system



Distribution Board – V-Guard distributions boards are fabricated out of high quality cold

rolled and closed annealed metal sheets from domain leaders with an attractive and compact

design. Phase selector DBs, Plug and sockets and MCB enclosures are also available.

Designed with the objective of easy assembling and inside wiring

High quality surface treatment and superior powder coating.

Enhanced protection against corrosion.

Attractive color shades and aesthetic design to improve the appeal of your interiors.

Suitable for flush and surface mounting

4. Organizational Structure

4.1. Departmental Profile

Customer service department

Electronic and new projects department

Electro mechanical department

Finance and accounts department

Human resource and administration department

Mechanical and electrical department

Marketing department

Supply chain management

Systems department

4.2. Organizational Hierarchy



5. Locations

6. Nature of the Organization

At V-Guard the principles that motivated the company’s success remain unchanged: The

passion of our early years and our quest for excellence. Through stringent quality measures,

reliable products, talented people and a responsible approach to business and global

citizenship we continue to steadily capture the hearts of the people.

6.1. Vision

“Let us endeavor to make V-GUARD a trusted household name”



6.2. Mission

To offer a range of products at affordable prices, which add to comfort of life

through saving in manual labor, time and energy or force entertainment. To make our

products meet international quality standards and provide trouble free performance. To

adopt designs, which support timely and efficient post sale service. To continuously

innovate and add values to our products, if needed with technical collaboration. To

continuously assess and improve customer service.

6.3. Social Responsibility

Extending a hand in support of education

The Thomas Chittilapilly Trust

Shantimandiram; an old age home for women

Kerala industrialist donates kidney to save a life

Social Welfare Fund- an employee CSR activity

Stabilizer SHG activity

7. Experience

It was a 14 days unique experience for me in the V-GUARD corporate office situated in

Vennala, Ernakulam, where the data from the branches all over India were processed. The

office starts at 9:00 AM in the morning and continues till 6:00PM in the evening. The code of

conduct for employees are clearly defined and well understood by the employees. Dress code

for each gender is well defined on week days and Saturdays.

Every employee selected in to the V-GUARD family is initially placed on probation for a

period of six months. A detailed appointment order shall be issued setting out the terms and

conditions of appointment. Upon joining, employees shall submit a fresh set of Bio-data in

the prescribed form together with a joining letter in his/her own handwriting. After the initial

induction training, the new employees are sent to their respective departments for the on-the-

job training.

The following schemes are implemented for the benefit of employees.



Bonus

Medical Reimbursement

LTA (Leave Travel Assitance)

Gratuity

EDLI Coverage

Term Loan

Financial assistance for higher education

Educational allowances to employees children

Benevolent funds

V-GUARD award for excellence

8. Knowledge Accrued

It is no exaggeration to say that Chittilappilly has molded entrepreneurs in V Guard and

placed them as heads of various business units. Mr. Vijayan, the GM of V Guard industries,

Mr. Jayaraj, AGM in charge of Veegaland, Chittilappilly’s wife Sheela, who is looking after

the operations of V Star garments, and their elder son who is heading Bangalore Veegaland

project are examples of that. Vijayan is now a Director of the company’s board. His style of

initial hand holding, nurturing and giving autonomy facilitate the process of grooming such

entrepreneurs. Managing by exception is his mantra. He never wanted to create two classes

of employees having conflicting goals and values. One step to ensure this was to avoid

inducting any relative of his into the V Guard group. He strongly believed that favoritism and

partiality would inject poison into the positive attitude of his loyal employees. This is very

well known to his empowered subordinates who select and induct new employees into the

group, so that they go by merit and not by favoritism. One outcome of the outsourcing

strategy was that V Guard has only just 50 workers out of the 450 permanent employees. The

remaining 400 are managerial and supervisory staff. V Guard’s compensation scheme is

benchmarked with that of a scheduled bank. A graduate fresher gets Rs. 5,000 plus. A senior

manager gets around Rs. 30,000. A number of MBAs are serving the organization in various



positions. The GM, Mr. Vijayan, has no second thoughts in saying that Chittilappilly has 29

created a family of trusted men in V Guard. The company management

plays a significant role in meeting the personal needs of its employees. Fifty to sixty

percent of V Guard’s employees are deployed in the field organizing and integrating

critically important supply chain processes. Chittilappilly wants the V Guard employees to be

highly competent. No wonder, in January 2005, the account staff who are placed in branch

offices and head office were given training in the VAT system of taxation of goods to cope

with the requirements of new tax regime proactively.



9. V-GUARD Facts & Figures



10. Contribution

The main suggestion I would like to point out during the V-GUARD industrial visit is the

advertising methods they used to follow. In addition to print and visual media, they have to

give importance to social media advertising.” Since social networking web sites like facebook

and twitter having more influence on people and most of them are spending more time in front

of the computer, I believe that these kinds of advertising have much importance.

As we know that “online marketing management” is an important branch of marketing

management, they should think about the vast possibilities of internet marketing. V-GUARD

can use SEO(Search Engine Optimization) techniques for the promotion of their products. By

implementing SEO techniques, a user who is searching for a product; for example a voltage

stabilizer, will get the website of V-GUARD Industries as the first result.

By using online advertising, they can avoid intermediaries and can they can save on

product cost which will certainly result on product cost.



11. Conclusion

The Industrial Visit to V-Guard Industries helps learn a lot of things which I had never

learned from my academics. The culture of the organization, office etiquettes and the unique

management model will give a deep insight about the industry and definitely it will pave my

way to success. During this visit I got the opportunity to familiar with the different products

of V-GUARD Industries and how they reached what they are today; from a stabilizer making

three-employee company. I took this opportunity to thank all the staffs of V-GUARD

Industries and Government Polytechnic College, Kumily; without them, I couldn’t have

completed this Industrial Visit.



12. Reference

1. V-GUARD HR Induction Manual; NO.1/2012

2. Product Manual, V-GUARD – Ideate create innovate

3. Annual Report V-GUARD 2010-2011

4. Wikipedia

5. www.vguard.in


Final report

Business

Transcript of Final report