Customers' Perception of Shriram Transport Finance

CHAPTER-I

EXECUTIVE SUMMARY

OBJECTIVES OF THE STUDY:-

 To know the perception of customers towards SHRIRAM

TRANSPORT FINANCE COMPANY to improve the quality of

services.

 To know whether the customers are satisfied with the present

services of the company.

 Factors considered in selecting SHRIRAM TRANSPORT

FINANCE COMPANY to take finance for HCV (Truck).

 To study the behaviour of executives of SHRIRAM TRANSPORT

FINANCE COMPANY towards customers.

 To seek suggestions and opinions from customers regarding the

improvement of services.

SCOPE OF THE STUDY:-

 The study will help the company to know their awareness among the

consumers, the perception, brand position of the company.

 The company can find out where their competitors stands in the minds

of the customers.

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 The study will help the company to make proper marketing strategy for

their weaker areas.

 The study covers the customers owning HCV in Hubli city.

LIMITATIONS OF THE STUDY:-

Not single work is exception to the limitations every work has got its

own limitations, so due to time constraint, my study confines only to Hubli

city and it is not possible to make extensive study. It is assumed that the

sample selected represents entire population.

RESEARCH METHODOLOGY:-

Primary (Field Survey)
Data source : Secondary data (internet)
Area of Research : Hubli city
Research instrument : Questionnaire
Sample plan : Personal interview
Truck owners,
Sample unit :
Transporters etc.
Stratified Random
Sampling method :
sampling
Sample size : 100 customers

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INTRODUCTION
PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT

COMPANY LIMITED.

Like any other Financial products, sales of giving finance is largely dependent

on how well company plans out their marketing strategies which helps to

increase visibility and build a distinct brand image. Looking at the intense

competition it is become very necessary for company to make a name for

themselves in consumers mind. So the opinion of customers play an important

role in making marketing strategies. Hence this study will provide the

company to what customers perceive about STFC. It will also help to find out

the brand image of STFC in the minds of customers.

India is emerging as a global automobile giant. In recent years this

industry has made pioneering efforts in adopting modern technology and

allowing the entry of foreign players. This is well supported by the economic

conditions particularly in the financial sector and in foreign direct investment.

During the last decade, conscious efforts have been made to fine-tune state

policy to enable the Indian automobile industry realizes its potential to the

fullest. The freeing of the industry from this restrictive environment has

helped it to itself to global development.

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Increasing competition as result of liberalization has led to continuous

modernization as well as international standards. Moreover, auto finance with

aggressive marketing strategies has played a bid role in boosting the

automobile demand. Commercial vehicles, widely considered being the

economy’s barometer, have had a good start for the year.

The auto finance industry is expected to grow at 18.6% till ’09. Of that

used vehicle finance is expected to grow at 27% p.a, while new car and UV

would grow at 18.9% and 13.8%.

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LITERATURE REVIEW

The world is full of stimuli. A stimulus is any unit of input affecting one or

more of the five senses sight, smell, taste, touch, hearing.The process by

which we select , organiseand interpret these stimuli into a meaningful and

coherent picture is called perception.

In essence, perception is how we see the world around us and how we

recognize that we need some help in making a purchase decision. People

cannot perceive every stimulus in their environment. Therefore, they use

selective exposure to notice and which to ignore.

Marketers must recognize the importance of cues or signals, in

customers perception of products. Marketing managers first identify the

important attributes, such as price or quality, that the targeted customers want

in a product and then design signals to communicate these attributes.

Customers also associate quality and reliability with certain brand names.

Companies watch their brand identity closely, in large part because a strong

link has been established between perceived brand value and customers

loyalty.

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Customer Perception Audits:

Every time you lose a customer, there’s a reason why. Do you really know

what your customers think about your business, your offerings, or your

service? Are they having good or bad experiences? Are you equipped with the

insight you need to improve customer satisfaction and loyalty, and make the

changes that matter? Entrepreneurs are often too busy to really take the time to

tap into what customers are really thinking. But customers hold the key. They

know what you need to do to dramatically increase the value you deliver to

them. Why keep this data a secret? Uncovering and understanding it will give

you what you need to be the best, generate higher sales and referrals and earn

repeat business.

Customer Perception Audits by Coach Kevin captures information on

the experiences your customers are having, analyzes the data, and provides

meaningful, actionable recommendations on short-term and long-term

improvements, with the goal of closing the gap between the service that is

delivered and the service that customers expect.

Opening of economy and liberalization in trade in the country brought

a sea of change in customer’s perception of buyer and seller relationship. The

customer today is not only very demanding but also likes to know the

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relationship between the supplier of goods and services and its relationship

with the manufacturer or principal and its antecedents. It is on this relationship

depends the guarantee and warranty terms to which the customer is entitled. A

customer expects trouble free service during the guarantee period. Thereafter

it is expected that a product will last to its full productive life with minimum

down time and the vendor will provide the required support service to ensure

the customer is not put to trouble.

For adopting Japanese management or for customer oriented

management we should first have the willingness and a determination much

above the petty personal gains. It needs an attitudinal change. Looking

towards present socioeconomic and political conditions such change is not

foreseen in immediate future. Market forces will have to play the game with

only customer in mind if India has to make global presence. There is little time

in hand as we are having challenges from all sides. Small nations like Korea,

Taiwan, Singapore etc. have already surpassed us. These nations are working

on a vision and resultant plans. It is the right time for market players to

pamper the customer. As the saying goes, the four deadly sins of corporate

management-complacency, blindness, megalomania, and greed. fit everything

else is overhead!.

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Remember that a customer always buys a product or service with a lot

of expectations which he has derived from the promotional inputs of the

company or other sources including word-of- mouth . So a customer would be

satisfied when Performance is equal to Expectation while would not be

satisfied when Performance does not match with Expectations. Now this

expectation is what has been derived from perception. Perception is not good

or bad, right or wrong, it is just the way someone judges an experience based

on their value system of what they believe should happen. Since people are

unique, each of their perceptions are unique .On the other hand each situation

is a "point of contact" with an employee that will tell the customer a "truth"

about the company's idea of customer service. Each situation will create

expections of what the next experience will probably be like.

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STATEMENT OF THE PROBLEM:-

The present day market is flooded with a variety of Non- banking and

as well as banking financial institutions as many as if not more than

companies like SHRIRAM TRANSPORT FINANCE COMPANY, Tata

Finance, Sundaram finance etc. are marketing their products.

Time has become talk of the town therefore the customers give utmost

priority to those financial institutions which gives loans at lower rate of

interest, quick loans, documentation, percentage of finance etc. which have

been exerting influence on the playing decision of the consumer.

The SHRIRAM TRANSPORT FINANCE COMPANY is the largest

NBFC (Non Banking Financial Corporation) in the country exclusively

engaged in financing for heavy commercial vehicles (HCV) perhaps it is the

only company rendering better performance from a long period of time with

the presence of all these factors. The SHRIRAM TRANSPORT FINANCE

COMPANY is making sales as hotcake.

The study on hand is directed to understand “the perception of

customers towards SHRIRAM TRANSPORT FINANCE COMPANY to

improve the quality of service”

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PURPOSE OF THE STUDY:-

The main purpose of the study is to understand the perception of customers

towards SHRIRAM TRANSPORT FINANCE COMPANY which will help

the company to make proper marketing strategy to render good services and

satisfy the needs of the customers. The study will help the company to make

proper strategies and emphasize on their weaker areas.

SCOPE OF THE STUDY :-

The scope of the study covers the customers of SHRIRAM TRANSPORT

FINANCE COMPANY and other competitive companies in Hubli city Truck

owners, Transport companies etc.

OBJECTIVES OF THE STUDY:-

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1. To know the perception of customers towards Shriram Transport

Finance Company Limited to improve the quality of service.

2. To know whether the customers are satisfied with the present

services of the company.

3. Factors considered in selecting SHRIRAM TRANSPORT

FINANCE COMPANY to take finance for HVC.

4. To study the behaviour of executives of SHRIRAM TRANSPORT

FINANCE COMPANY towards customers.

5. To know the awareness level of the customers towards SHRIRAM

TRANSPORT FINANCE COMPANY.

6. To seek suggestions and opinions from customers regarding the

improvement of services.

LIMITATIONS OF THE STUDY:-.

a. Because of time constraint, my study confines only to Hubli city and it

is not possible to make extensive study.

b. By busy schedule of the executives it is difficult to extract more

information from them.

c. Unwillingness of transporters, truck owners has left us to make random

conclusions.

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CHAPTER – II

COMPANY OVERVIEW:-

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Established in the year 1974, the Shriram Group, comprising 750

Branches and Service Centres, in India's premier financial services chain. This

company is the largest player in Truck Financing and Chit funds in the Indian

subcontinent.

The group, having an annual turnover of Rs. 6,000 crore (USD 1.3

billion), has a significant presence in the Insurance Consultancy, Consumer

Durable Finance and Stock Broking businesses. It also have diversified

investments in areas such as Information Technology, Pharmaceuticals,

Property Development, Project Engineering, Packaging and Auto

Components.

It employ over 11,000 employees across the countries that are

committed to providing excellent customer service. It also have over 75,000

agents nationwide who reach out to its customers in even the most remote

areas.

The Shriram Group's business ventures are built on providing the most

efficient and customer-focused services based on the simple principle of

putting people first. This 'People First' business philosophy has earned them

unstinted customer loyalty through many generations.

HISTORY AND MILESTONE:

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APRIL 2005:

Shriram Group attracts largest Venture Capital Investment in the Indian

non-banking financial sector, from Overseas

JULY 2004:
UTI Bank picks up equity stake in two Shriram Group companies

17MARCH 2003:

Shriram Investment Limited received the Mother Teresa Award for

Corporate Citizenship.

DECEMBER2002

Shriram Group enters into strategic alliance with Citicorp Finance and

Cummins Auto Services

31AUGUST2002

Shriram Group ties up with UTI Bank for Retail Truck Financing

Scheme to offer low cost loans for purchase of new or used trucks to transport

operators.

7MAY2002

Ms. Akhila Srinivasan awarded as the "Outstanding Woman

Professional" for the year 2002

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4FEBRUARY2000

Shriram Recon Trucks incorporated as India's first corporate network for

selling reconditioned used trucks.

15DECEMBER1999

Medicorp, the flagship company of Shriram group’s pharmacy

division became the first Indian company to win the Indian Drug

Manufacturers Association

27 MARCH1986

Shriram City Union Finance Ltd. Incorporated for cars and two-

wheelers.

12MARCH198

Shriram Investments Ltd. Incorporated

13JUNE1979

Shriram Transport Finance Company Ltd. Incorporated

VISION, MISSION AND VALUES:
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Helping create wealth, Empowering people through prosperity, Putting

people first.

The Shriram Group set out with the objective of reaching out to the

common man with a host of products and services that would be helpful to

him in his path to prosperity. Over the decades, the Group has achieved

significant success in executing this objective and has created a tremendous

sense of loyalty amongst its customers.

Efficiency in operations, integrity and a strong focus on catering to the

needs of the common man, by offering him high quality and cost-effective

products & services, are the values driving the organization. These core values

are deep-rooted within the organization and have been strongly adhered to

over the decades.

The group prides itself on its perfect understanding of the customer.

Each product or service is tailor-made to perfectly suit the needs of the

customer. It is this guiding philosophy of putting people first that has brought

the Group closer to the grassroots and has made it the preferred choice for all

financing requirements amongst the customers.

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NON-BANKING FINANCIAL COMPANY (NBFC) – A GENERAL

SCENARIO

Non-Banking Financial Company (NBFC) is a company registered

under the Companies Act, 1956 and is engaged in the business of loans and

advances, acquisition of shares/stock/bonds/debentures/securities issued by

Government or local authority or other securities of marketable nature,

leasing, hire-purchase, insurance business, chit business but does not include

any institution whose principal business is that of agriculture activity,

industrial activity, sale/purchase/construction of immovable property. A non-

banking institution which is a company and which has its principal business of

receiving deposits under any scheme or arrangement or any other manner, or

lending in any manner is also a non-banking financial company (Residuary

non-banking company).

DIFFERENCE BETWEEN BANKS & NBFC ?

NBFCs are doing functions akin to that of banks, however there are a few

differences:

i. A NBFC cannot accept demand deposits;

ii. It is not a part of the payment and settlement system and as such cannot

issue cheques to its customers; and

iii. Deposit insurance facility of DICGC is not available for NBFC depositors

unlike in case of banks.

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COMMERCIAL VEHICLE

It is the funding of products include, trucks, buses, tippers, light

commercial vehicles, pick ups, 3 wheelers, etc.

Range of services: funding of new vehicles, refinance on used vehicles,

balance transfer on high cost loans, top up on existing loans, Extend product,

working capital loans & other banking products.

Who are eligible?

Any individual / Partnership firm / company with more than 2 years business

experience. Ownership of a vehicle is not mandatory. Funding extended to

First Time User, Transporters and Captive Consumers.

How much?

Loan amount can vary from a few thousands to crore depending upon the

specific requirement.

Funding can be up to the extent of 100 % of the chassis, body funding can be

extended on special requirement & on the past experience.

Generally undertaken is Hypothecation funding. They are also taking

over an old high-interest loan and converting it into low interest loan.

Repayment:
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In general repayment period is of 3 -4 years, however depending on the nature

of the deal the tenure can vary from 6 - 60 months.

The repayment schedule & the amortization schedule is sent on disbursement

of the loan.

Interest:

Interest is charged on a flat rate based on the scheme applicable for the

particular product.

FARM EQUIPMENT LOANS

Farm equipment loan has also a big chunk in the vehicle finance.

Eligibility :-

Agricultural Users

Any individual aged above 21 years at the beginning of the tenure and below

65 years by the end of the tenure; involved in agriculture for the last 5 years.

Having minimum 2 acres of land with its value at least twice the loan

amount.

Staying in the same place for at least 3 years.

Having an annual income equal to the yearly installment

Mortgage of land of 2 to 3 times of the loan amount

Commercial Users

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Any individual aged above 21 years at the beginning of the tenure and

below 65 years by the end of the tenure; involved in business for the last 3

years.

Owns at least one tractor or commercial vehicle.

Owns either a house or an office or at least 2 acres of land.

Has a permanent phone connection either at office or at home.

Loan Amount:

The loan amount varies from customer to customer depending on the

valuation of the land being mortgaged, income of the customer and tenure

desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the

trailer and 50% of the cost of the implements is funded.

Documentation:

Agricultural use

Application form with photograph of the customer and all co applicants and/

or guarantor.

Performa Invoice of the asset to be funded from an authorized dealer.

Land records of the borrower/s.

Land valuation and title search report of the land.

Residence proof of the borrower/s.

Identity proof of the borrower/s.

Signature verification of the borrower/s.

Loan agreement, duly signed by the applicants and guarantor.
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2 SPDCs(Security Post Dated Cheques) for entire tenure.

Commercial Use

Application form with photograph of the customer and all co applicants and/

or guarantor.

Proforma Invoice of the asset to be funded from an authorized dealer.

Proof of Income (any of the following) :

- Billing statement for the past one year

- Latest Income tax Return

- Last 6 months bank statement

Residence proof of the borrower/s.

Identity proof of the borrower/s.

Signature verification of the borrower/s.

Loan agreement, duly signed by the applicants and guarantor.

2 SPDCs(Security Post Dated Cheques) for entire tenure.

Rates & Fees:

The rate of interest varies from customer to customer and depends on various

factors like land holding, loan amount, viability of the proposition and the

underlying collaterals provided.

Interest:

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Interest is charged on a monthly/quarterly/half-yearly reducing balance basis

as the case may be. Every installment that is paid has a component of principal

as well as interest. Interest is charged on the principal outstanding after every

installment payment.

TWO WHEELERS:

Two wheeler finance is comparably Simple, Friendly and Quick.

Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy

installments over a period of 6 to 36 months.

Eligibility Criteria:

1. Salaried Individuals

2. Self Employed Individuals

3. Pensioners, Housewives & Students

4. Partnership Entities

5. Private Limited Companies

6. Public Limited Companies

Interest rates:Interest rate is charged on a monthly reducing balance .

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Documents:

Identity Proofs

Residence Proof

Income Proof

Post Dated Cheques

Copy of Credit Card

CC billing statement

Bank passbook/Statement

No objection Certificate

AWARDS AND RECOGNITION

Recipient of the social responsiveness awards instituted by Business

world – compaq at national level under the auspices of FICCI, Delhi.

Adjudged as the third prize winner for having rended commendable

service in the areas of social welfare and rural development.

Ms. Akhila Srinivasan receiving the social responsiveness Award

instituted by Business World – Company from the Hon’ble Vice – President

of India Krishna Kant in the year 1999.

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Recipient of outstanding woman professional for 2000 – 01 by FICCI

– FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixit

Chief minister Delhi.

Mother Teresa award for corporate citizenship instituted by Loyola

institute of Business Administration (LIBA) Chennai, 2002.

SOCIAL WELFARE INITATIVES

They have always belived in delivering financial value with a human

face. As a company firmly grounded up a middle class ethos, we take our

social responsibilities very seriously.

Their corporate Social Responsibility (CSR) initiative started with the

Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT

is today active in the following areas.

• Orphan and destitute care

• Primary education for the rural poor

• Micro – credit financing through self- help groups for the marginalized

• Empowerment and upliftment of women in villages.

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OPRHAN AND DESTITUTE CHILDREN:

To swiftly help the poor and the needy to be self reliant and live with dignity,

not charity. The primary focus and beneficiaries of the Trust’s activities are.

a. Abandond neglected and destitute children.

b. Juvenile delinquents in need of care and protection.

c. Children of poor and illiterate parents.

d. Disadvantaged and marginalized section of women, particularly rural

women

MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS
FOR THE MARGINALIZED WOMEN IN VILLAGES.

a. Launch of Shriram Rural Development Project (SRDP) to create and

develop

b. Social and human capital among the poor.

c. Micro credit financing through self help groups in 156 villages in Tamil

Nadu, Andhra Pradesh and Karnataka.

PRIMARY EDUCATION FOR THE RURAL POOR:

The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai,

Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In

Andhra Pradesh. Over 2000 children receive free education. Schools offer

education up to class VII and student will progressively move up to higher

secondary level.

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FUTURE PLANS :

a. To start six primary schools for the rural poor in the villages of Andhra

Pradesh.

b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in

six districts.

c. Immediate Plans: to start two schools in Cudapah and Guntur districts in

June 2005.

LONG TERM BENEFITS OF THE PROGRAM:

a. Reduction in rural indebtedness

b. Bank/institutional credit for investment in income – generation activities.

c. Improved household food security round the year, better nutrition.

d. Improved household income.

e. Empowerment of Women.

f. Greater leverage and status of SHG members in local communities and with

the state.

THE FUTURE ACCORDING TO SHRIRAM

1. To enlarge the scope of micro credit financing activity through NBFC

Shriram Investment Limited.

2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.

3. To lend credit at low interest rates to 3 lakh women below poverty line

in the next 3 years.

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NATIONAL AWARDS WON

• Business World Compaq award fota Social Responsiveness instituted

by FICCI from the Hon’ble Vice – President of India Mr. Krishna Kant

on 1999.

• Mother Teresa award for Corporate Citizenship instituted by Loyola

Institute of Business Administration (LIBA), Chennai in 2002.

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PRODUCT PROFILE

1.TRUCK FINANCE

1. Shriram Truck Financing Companies. The wheels of progress.

2. Largest NBFC in the country exclusively engaged in financing of

heavy commercial vehicles.

3. Monopoly position in financing of used vehicles.

4. All India presence with a branch network of 260 offices and employing

over 4000 people.

5. Growing at the rate of 30% per annum.

6. Funds managed – Rs 6000 crores.

7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO

Netherlands have added tremendous value and strength.

8. Venture capital firm Chris capital joins as a strategic partner by

acquiring 21% equity.

We entered the Consumer Durable Finance business in early 2002 through

'Shriram City Union Finance Ltd., the consumer finance arm of the group.

Within a short span of 2 years, we have managed a portfolio of over Rs.584

crore.

Our monthly business amounts to over Rs.25 crore in individual loans, ranging

from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12

months to 36 months.

Since its inception, we have financed over 2,15,000 white goods and two-

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wheelers, with over 90% of the business arising out of the non-metro markets.

This financing is backed by lines of credit extended by ICICI Bank, UTI Bank

and Development Credit

THE GROUP COMPANIES ATHAT CATER TO TRUCK
FINANCING NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE

Shriram Investments Limited in the South Shriram Transport Finance

Company Limited in the West Shriram Overseas Finance Limited in

Northern/Eastern regions in India.

OUR EQUITY PARTNERS

Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake

in Shriram investments Limited and Shriram Transport Financial Company

Limited in 2002.

FMO the Dutch Government owned financial services company has recently

picked up equity stake in SIL and STFC. The company has extended a long

term debt of 6 million Euros each to the two companies.

Reliance Capital has also taken an equity stake in the two companies at a

premium.

.

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AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING

BUSINESS IN INDIA

AREA OF OPERATION ALL INDIA
Branch offices 260
Employees 4000
Depositors 12.20 lakhs

Agency Force 15,000 plus resident representatives 1300.

Funds managed Rs. 6000 crores
Net worth Rs. 349 crores
Major exchanges including the BSE and
Stock Listing
the NSE.

2.CONSUMER FINANCE:-

We entered the consumer Durable Finance Business business in early

2002. through Shriram City Union Finance Ltd. The consumer arm of the

group. Within a short span o 2 years, we have managed a profile of over rest

684 crores in this business.

Our monthly business amounts to over Rs. 25 crores in individual

loans, ranging from as little as Rs.8000 to Rs. 100000 and with tenures

ranging from 12 months to 36 months.

Since its inception we have financed over 215000 white goods and

two wheelers with over 90% of the business arising out of the non metro

markets.

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This financing is backed by lines of credit extended by

ICICI Band, UTI Bank and Development Credit.

3.CHIT FUNDS:-

Shriram chits – prosperity

Shriram chits is the largest chits fund in the country. We have grown to

become a trusted household investment option. The growth registered by

Shriram Chits recent years not only indicated the usefulness of this savings

instrument, but is also a reflection our customers trust in.

Chits one of the earliest investment instrument known to man, were founded

by the enlightened communities of India. These have, ever since, worked to

the advantages of communities that are batting scarce capital resource.

Shriram chits started its operations in the year 1974 with a single branch that

has quickly grown into trusted household name for making chits a viable form

of saving and borrowing to all sections of the social.

Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka

and Maharastra, where has a reputation for timely disbursement of funds and

excellent customer services which differen tiates it from other companies.

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Using state of the art computer systems/networks and a transparent

accounting system, Shriram Chits have transformed this contemporary mehod

of savings into an attractive personalised to banking system.

4.GENERAL INSURANCE:-

Shriram group has adopted a two strategy in this segment.

1. Broking arm – Armour Consultants – floated in year 2002

2. Retail Marketing Arm: Ski Marketing flotred in year 2001.

ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE
EXPERTS AT YOUR SERVICE

Amour consultant is engaged in insurance broking in corporate insurance

markets and has already aggregated business volumes in excess of Rs. 200

crores ($ 44 million) in premiums.

Amour consultant comprises a team of distinguished professionals from

insurance, finance, law and other management discipline, who have vast

business and managerial experience. The company has handled major claims

for renowned clients. There have been several claim cases that were won even

in the arbitration stage.

The tern at Armun Consultants begins with an in depth evaluation

of the client company’s business environment. The company’ risk profile is

then studied. Based on the results of these evaluations. The team then suggests

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the most cist effective, integrated insurance package that is perfectly suited to

the company’s risk profile.

The company plans to extend its customer base of the existing 500000 policy

holders to cross the 1 million mark by the end of financial year 2005-06.

5.LIFE INSURANCE:-

The shriram group plans to enter the life insurance segment 05. Am

application has already been filed with the IRDA for the same. We are also

exploring the possibilities of collaborating with a foreign partner in this

venture. We expect to be a major player in this very fast growing sector, as a

natural corollary of business philosophy and expertise.

6.STOCK BROKING:-

Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is

a member of the National Stock Exchange , India and the Multi Commodity

Exchange. This unit has expended the network by 150% over the last year and

today it has more than 230 terminals spread across the length and breadth of

the country.

It has a retail customer base of around 50000.

The company launched its new products like Derivatives and commodity

Trading in early 2004.

A QUICK LOOK AT SOME OF THE SALIENT FEATURES

• Limits of all clients are fixed at a pre-calculated level.

• This is benefical to them in the long run as it prevents overtrading.

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• Atimely payments and direct share transfer facility from NSE.

• Adequate risk control research support.

• The clincher. Proactivate and preventive risk control.

ORGANISATION CHART

BOARD OF DIRECORS

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SHIRAM TRANSPORT FINANCE COMPANY LIMITED

R Sridhar Managing Director

S. Venkatakrishnan Executive Director

Umesh G Revankar Executive Director

K.R.C Sekhar Director

S. Ranganathan Nominee of Citicorp Finance (India) Ltd.

Dr. T S Sethurathnam Nominee of IREDA ltd.

Company Secretary & Compliance
K. Prakash
Officer

SAMPLING:

Sample plan to know the perception of customers in this project is through

personal interview.

SAMPLE UNIT:

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I have taken the customers who are owning a truck or (HCV).

SAMPLING METHOD;

I have used Non- probability sampling i.e. Stratified Random Sampling.

Sample size for this project is 100 customers who are truck owners.

RESEARCH DESIGN:

In this research design of this project the study was conducted by the survey

method.

Taking sample of 100 customers owning trucks by commencing sampling

using the research instrument as the questionnaire.

Personal interview is considered as the sample plan.

For this project area of research is Hubli City.

DATA COLLECTION METHOD:

I have collected the data from the following sources:

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A. PRIMARY DATA:

 The data collected from the company persons.

 Questionnaires

B. SECONDRY DATA:

 Interviewing with the owners of trucks

 Internet

 Magazines, Catloges, etc.

MEASURING TOOLS:

For preparing this project I have considered questionnaire as measuring tool

for collecting the data.

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CHAPTER - III

CHAPTER III

RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-

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1) Do you own a HCV?

Table: 3.1

Number of customers Percentage
Yes 100 100%
No Nil Nil
Total 100 100%

The information presented in table3.1 reveals that:-

⇒ Almost all respondents are owning Heavy Commercial Vehicle.

The same information is presented in the form of diagrammatically as

follows:-

Diagram-3.1
100
100
80
60
Percent
40
20 0
0
Yes No
Responses

Yes No

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2. Source of finance for your HCV?

Table: 3.2

Sources Number of customers Percentage
Co-op banks 4 4%
STFC 61 61%
Tata finance 19 19%
Others 16 16%
Total 100% 100%


⇒ 61% respondents have taken loan from STFC .

⇒ 19% respondents have taken loan from tata finance and 4%

from co-op banks.

⇒ While remaining 16% have taken from other finance

companys.


follows:-

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Diagram-3.2

70 61
60
50
Percent

40
30
19 16
20
10 4
0
Co-op banks STFC Tata finance Others
Responses

Co-op banks STFC Tata finance Others

3. Are you aware of STFC?

Table:3.3

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Yes 100 100%
No Nil Nil
Total 100 100%

The information presented in table- 3.3 reveals that:-

⇒ Almost all respondents are aware of STFC .


follows:-

Diagram-3.3

100 100

80

60
Percent
40

20
0 0 S1
Yes
No
Responses
Yes No

BABASAB PATIL

4) How did you come to know about this company?

Table:3.4

Friends 38 38%
Agents 24 24%
Advertisements 32 32%
Others 6 6%
Total 100 100%


⇒ 38% respondents have bought finance from STFC on the

advice of their friends.

⇒ 24% will seek the advice of agents.

⇒ While 6% from others and 32% on the basis of Advertisements.

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follows:-

Diagram-3.4

38
40
35 32
30
24
25
Percent

20
15
10 6
5
0
Friends Agents Advertisements Others
Responses

Friends Agents Advertisements Others

5. Do you get the finance quickly from STFC?

Table:3.5

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Yes 84 84%
No 16 16%
Total 100 100%


⇒ 84% respondents are in favour of quick finance availability

from STFC .

⇒ While remaining 16% of them are not in favour of quick

finance.


follows:-

Diagram-3.5

No
16%

Yes
84%

Yes No

BABASAB PATIL

6) Are you satisfied with the documentation process at STFC?

Table:3.6

Highly Satisfied 28 28%
Satisfied 42 42%
Neither satisfied/dis-
14 14%
satisfied
Dis-Satisfied 14 14%
Highly dis-Satisfied 2 2%
Total 100 100%


⇒ 28% of the respondents are Highly Satisfied with the

documentation process at STFC , 42% of the respondents are

Satisfied and from the analysis 14% of them are Neither

satisfied/dis-satisfied .

⇒ Nearly 14% of the respondents are dis-Satisfied and 2% of

them are Highly dis-Satisfied .

The same information is presented in the form of diagrammatically

as follows:-
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Diagram-3.6

50 42
40
28
30
Pecent

20 14 14
10 2
0
Highly Satisfied Neither Dis-Satisfied Highly dis-
Satisfied satisfied/dis- Satisfied
satisfied
Responses
Highly Satisfied Satisfied
Neither satisfied/dis-satisfied Dis-Satisfied
Highly dis-Satisfied

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7) Do you require any changes in the documentation process?

Table:3.7

Yes 28 28%
No 72 72%
Total 100 100%


⇒ 28% of the respondents require changes in documentation

process at STFC .

⇒ While 72% of the respondents are Satisfied with the

documentation process at STFC .


follows:-

Diagram-3.7

Yes
28%

No
72%

Yes No

BABASAB PATIL

8. What do you feel about the interest rates at STFC?

Table:3. 8

Very High 16 16%
High 44 44%
Moderate 34 34%
Low 6 6%
Total 100 100%


⇒ 16% of the respondents are in favour that interest rate at STFC

is very high and 44% of them are in favour of High rates.

⇒ While 34% of them are in favour of moderate interest rates and

6% for low interest rates.

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follows:-

Diagram -3.8

50 44
40 34
percent

30

20 16

10 6

0
Very High High Moderate Low
Responses

Very High High Moderate Low

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9) Are you satisfied by the percentage of finance provided by

STFC?

Table:3. 9

Yes 88 88%
No 12 12%
Total 100 100%


⇒ 88% of the respondents are Satisfied with Percentage of

finance given by STFC .

⇒ While 12% of them are not Satisfied .


follows:-

Diagram-3.9

No
12%

Yes
No

Yes
88%

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10). Are you satisfied with the services offered by STFC?

Table:3. 10

Completely Satisfied 10 10%
Satisfied 32 32%
Neither satisfied/dis-
20 20%
satisfied
Dis-Satisfied 29 29%
Completely dis-
9 9%
Satisfied
Total 100 100%


⇒ 10% of the respondents are completely Satisfied with

the service offered y STFC, 32% of the respondents are

satisfied and from the analysis 20% o the respondents

are Neither satisfied/dis-satisfied .

⇒ Nearly 29% of them are dis-Satisfied and remaining 9%

of them are completely dis-Satisfied .

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The same information is presented in the form of diagrammatically

as follows:-

Diagram-3.10
35 32
29
30
25 20
Percent

20
15 10
10 7
5
0
Completely Satisfied Neither Dis-Satisfied Completely
Satisfied satisfied/dis- dis-Satisfied
satisfied
Responses

Completely Satisfied Satisfied
Neither satisfied/dis-satisfied Dis-Satisfied
Completely dis-Satisfied

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11) What are the features that attracted you to borrow loan

from STFC?

Table:3. 11

Low interest rates 6 6%
Easy documentation 10 10%
Quick finance 84 84%
Low EMI Nil Nil
Total 100 100%


⇒ 84% of the respondents are attracted by quick finance.

⇒ 10% of the respondents for easy documentation.

⇒ While remaining 6% for low interest rates.


follows:-

BABASAB PATIL

Diagram 3.11

100 84
80
Percent
60
40
6 10
20 0
0

Quick finance
documentatio
Low interest

Low EMI
rates

Easy

n
Responses

Low interest rates Easy documentation Quick finance Low EMI

12. How do you rate STFC with respect to other finance

companies?

BABASAB PATIL

Table:3. 12

Tate 12 12%
Ashok Leyland 18 18%
STFC 26 26%
HDFC 18 18%
ICICI 14 14%
SBI 12 12%
Total 100 100%


⇒ 12% of the respondents rated Tata in the 1st place with other

company’s and 18% of them for Ashok Leyland and HDFC in

2nd place.

⇒ 26% of them rated STFC in 3rd place.

⇒ Nearly 14% of them for ICICI in 4th place.


follows:-

BABASAB PATIL

Diagram-3.12

30 26
25
20 18 18
14
Percent

15 12 12
10
5
0
Tata Ashok STFC HDFC ICICI SBI
Leyland
Responses

Tata Ashok Leyland STFC HDFC ICICI SBI

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13. What is your experience when you approached the executives
of STFC for finance of HCV?

Table:3. 13

Very good 22 22%
Good 48 48%
Neither good/bad 24 24%
Bad 4 4%
Very bad 2 2%
Total 100 100%


⇒ 22% of the respondents are in favour of very good behaviour

from the executives of STFC , 48% of them are in favour of

good behaviour.

⇒ 24% of them are in favour of Neither good/bad.

⇒ While 4% of them are bad and 2% very bad.

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follows:-

Diagram-3.13

60
48
50
40
Percent

30 22 24
20
10 4 2
0
Very good Good Neither Bad Very bad
good/bad
Responses

Very good Good Neither good/bad Bad Very bad

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14. Are your queries cleared quickly?

Table:3. 14

Yes 82 82%
No 18 18%
Total 100 100%


⇒ 82% of the respondents are in favour that their enquiries are

cleared quickly at STFC .

⇒ While remaining 18% of them are telling their queries are not

cleared quickly.


follows:-

Diagram-3.14

No
18%

Yes
82%

Yes No

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15. Are you satisfied with the repayment system of STFC?

Table:3. 15

Yes 64 64%
No 36 36%
Total 100 100%


⇒ 64% of the respondents are Satisfied with repayment system at

STFC.

⇒ While remaining 36% of them requires changes in repayment

system.


follows:-

Diagram-3.15

No
36%

Yes
64%

Yes No

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16. Do you recommend STFC to others?

Table:3. 16

Yes 68 68%
No 32 32%
Total 100 100%


⇒ 68% of the respondents are in favour of recommending STFC to

others for taking loan.

⇒ While remaining 32% of them are not in favour of recommending

to others.


follows:-

Diagram -3.16

No
32%

Yes
68%

Yes No

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17. Do you want to take finance in near future from STFC?

Table:3. 17

Yes 60 60%
No 40 40%
Total 100 100%


⇒ 60% of the respondents wants to take finance in near future from

STFC.

⇒ While remaining 40% of them are not in favour of taking finance

from STFC .


follows:-

Diagram-3.17

No
40%

Yes
60%

Yes No

BABASAB PATIL

CONCLUSION

Less than anticipated growth in the face of intensifying competition and rising

costs, can hardly be expected to get the company foaming.

By seeing the observations most of the customers are having positive

perception towards Shriram Transport Finance Company Limited and are

satisfied with their services such as Quick finance, Easy documentation

process etc. The company is progressing continously in the field of finance as

Non-Banking Finance Company to compete with other Financial as well as

Non-banking financial institutions.

STFC is the Non-Banking Financial Company in the Indian scenario

and it is the leader with monopoly position in financing for Heavy

Commercial Vehicles.

BABASAB PATIL

SUGGESTIONS

 The firm should tap the un-tapped locations & market. This will help

them in increasing the business. Rural places are advised

 The company should bring down their interest rates compared to other

competitor rates.

 The STFC should increase their seizing period from 3 months to 4

months during slack season if the customers fails to pay their

instalments.

 The STFC should maintain consistency in customer satisfaction level

in future also.

 The brand awareness campaigns should be conducted. The firm should

work on its Advertisements.

 Number of customers complaints should be reduced, because always

cost is associated in solving these problems.

BABASAB PATIL

Questionnaire

Dear Sir/Madam,

1.Do you own a HCV?

Yes [ ] No [ ]

2. Source of finance for your HCV?

Co-op banks [ ] STFC [ ] Tata finance [ ] Others [ ]

3. Are you aware of STFC?

Yes [ ] No [ ] ( If no go to Question No:- 17 ).

4. How did you come to know about this company?

Friends [ ] Agents [ ] Self experience [ ] Others [ ]

5. Do you get the finance quickly from STFC?

Yes [ ] No [ ]

6. Are you satisfied with the documentation process at STFC?

Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither
satisfied/ Dis-satified [ ] Satisfied [ ] Strongly
Satisfied [ ]

7. Do you require any changes in the documentation process?

Yes [ ] No [ ]
If Yes specify _______________________________.
BABASAB PATIL

8.What do you feel about the interest rates at STFC?

Very High [ ] High [ ] Moderate [ ] Low [ ]

9. Are you satisfied by the percentage of finance provided by
STFC?

Yes [ ] If No specify _________.

10. Are you satisfied with the services offered by STFC?

Strongly dis- satisfied [ ] Dis-satisfied [ ] Neither
satisfied/ Dis-satified [ ] Satisfied [ ] Strongly
Satisfied [ ]

11. What are the features that attracted you to borrow loan from
STFC?

Low interest rates [ ] Quick finance [ ]
Easy documentation [ ] Low EMI [ ]

12. How do you rate STFC with respect to other finance companies
( 1 being highest and 6 being lowest)/

1[ ] 2[ ] 3[ ] 4[ ] 5[ ] 6[ ]

13. What is your experience when you approached the executives of
STFC for finance of HCV?

Very Good [ ] Good [ ] Neither Good/Bad [ ]
BABASAB PATIL

Bad [ ] Very Bad [ ]

14. Are your queries cleared quickly?

Yes [ ] No [ ]

15. Are you satisfied with the repayment system of STFC?

Yes [ ] No [ ]

16. Do you recommend STFC to others?

Yes [ ] No [ ]

17. Name the other finance companies you know?

____________________________________.

18. Do you intend to take finance in near future from STFC?

Yes [ ] No [ ]

19. Please provide some suggestions in improving the quality of
service at STFC?

_______________________________________________________

________________________________________________.

Please provide the below mentioned information:
BABASAB PATIL

Name:
_______________________________________________________

Address:
_______________________________________________________

Occupation: _____________________________

Annual Income ______________________

Gender: Male [ ] Female [ ]

** Thank You **

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