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

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Government 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 withan investment of
one lakh. He had just twoemployees. 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

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

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 openedat 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 ExecutiveDirector

2006 : Launched V-Guard Fans

2006 : Branch Office in Hubli, Bhubanaswar and Pune.

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2007 : Branch office at Vijayawada, Bhopal, Kala Amb and Vadodara. Turnover
crosses INR2400 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 ViceChairman 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

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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

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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.

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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 3 PHASE PUMPS MOTORS
SELF PRIME CENTRIFUGAL THREE PHASE MOTOR
MONOBLOCK PUMPS
CENTRIFUGAL SINGLE PHASE MOTOR
OPEN WELL SUBMERSIBLE OPEN WELL
SUBMERSIBLE PUMPS SINGLE PHASE
TUBE WELL SUBMERSIBLE COMMERCIAL MOTOR
BORE WELL
JET PUMPS AND SUBMERSIBLE PUMPS COOLING TOWER
COMPRESSOR MOTOR
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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

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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 AluminMethod)
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

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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

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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”

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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.

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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

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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.

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9. V-GUARD Facts & Figures

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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.

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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.

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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

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