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TIDC India – The complete chain company, was incorporated in 1960 in

collaboration with the global company from USA.It is now a wholly owned SBU of
Tube Investments of India. The market leaders in industrial and automotive chains,
TIDC takes pride in serving its customers with superior quality products at
competitive prices. Its industrial chain segment covers power transmission chains,
engineering class chains, agricultural chains, conveyor chains and material handling
chains. The automotive segment covers drive and timing chains for motorcycles,
sprockets to serve the two wheeler original equipment manufacturers (OEMs) and
also cater to the spare parts two wheeler market. TIDC also manufactures fine
blanked components for two wheelers and four wheelers and other industrial
segments for varied applications.

TIDC chains find wide acceptance in variety of applications in the

following industrial segments:
 General engineering
 Construction equipment
 Agricultural machinery
 Automotive industry
 Printing and packaging
 Process industries (cement, mining, power)
 Material handling industries

Internship was of 2 months duration from May 2017 to June 2017. Three interns
including myself were there during these 2 months in organization as intern.

1.1 Objectives of the internship

The overall objective is to conduct a study on organizational structure of

TIDC India. The following are the specific objectives of the study:
 To understand the organization structure and product profile of TIDC India.
 To conduct a problem centred study within TIDC India.
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 To identify benefits, the customers get through TIDC India.

 To evaluate performance appraisal conducted by TIDC.
 To evaluate future plans, business strategy and innovation management.
 To conduct a SWOT Analysis.

1.1.1 Scope of the study

With an increasing entry of new companies, information of newer

technologies and changing economies, the world of business is changing very
rapidly. This organization study in TIDC India exposes to the practical side of the
business enterprise. This study helps to understand the history, structure, activity and
the products of the company and its contribution to the Indian cycle chain industry.
This study exposes to various departments namely purchase department, production
department, stores department, etc.

1.1.2 Methods of data collection

Data required for the study is obtained through primary and secondary sources.

Primary data: Primary data were collected from the employees of the company
through interview and also by the discussion with the finance department head in
TIDC India.

Secondary data: Secondary sources mainly included from the review of literature
from textbooks, other reference materials, lecture literatures, company records,
journals, magazines and internet.

1.1.3 Limitations of the study

 Unavailability of certain data due to confidentiality.

 The major part of the analysis has been based on the audited financial reports.
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 The concerned executives were having very busy schedules.

1.2 Industry profile

Chain manufacturing industry

The cycle chain manufacturing industry has come a long way since it
had its small beginnings in 1950’s. It plays a pivotal role in the country's rapid
economic and industrial development. The cycle chain industries sustain a prominent
place in the Indian economy. There has been an enhanced reputation in the
international and Indian market. The export of cycle chain industry has increased
manifold over the past decades.

Over the years there was development of various types of chains like
standard roller chains, attachment chains, extended pin chains, hollow pin chains,
accumulator chains, rubber top chains, 0-ring chains, leaf chains, conveyor chains,
work standard engineering chains and automotive chains to support the
manufacturing technology.

The major markets Argentina, Australia, Bangladesh, Brazil, Canada,

Chili, Columbia, Denmark, Egypt, France, Greece, Holland, Iran, Israel, Italy,
Kenya, Korea, USA, Mexico, Norway, Spain, Singapore, Turkey and UK. The major
players in India are KDR Industries, Murugappa group, Hero Honda Motors, EXL
Industries, Chana Steels Ltd., DEOL Cycle Industries, Meeras international, Shiva &
Company. The industrial chain caters to the needs of various industries like cement,
fertilizers, steel, sugar, deviator and power transmission related industries.

The growth of chain manufacturing industries is closely linked to the

growth of automotive industry. The export market for industrial chains mainly used
in agriculture/farm equipment, continued to be favorable and exports grew by 6%.
The steep appreciation of the rupee impacted the profitability.
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The focus in this business is on improving presence in the American and

European markets. India is expected to play a significant role in the global
automotive supply of chains in the near future.

1.2.1 Investments

With the help of Make in India drive, India is on the path of becoming
the hub for hi-tech manufacturing as global giants. Foreign Direct Investment (FDI)
inflows in India’s manufacturing sector grew by 82 per cent year-on-year to US$
16.13 billion during April-November 2016. India has become one of the most
attractive destinations for investments in the manufacturing sector.

1.2.1.1 Major investments and developments

Honda Motorcycle & Scooter India plans to invest around Rs 600 crore
(US$ 90 million) to add a new line at its Narsapura facility at Karnataka, and launch
at least 10-15 products during FY 2016-17 in the country. Isuzu Motors, the Japan-
based utility vehicle manufacturer, has inaugurated its green field manufacturing unit
in Sri City, Andhra Pradesh, which was set up for Rs 3,000 crore (US$ 450 million),
with an annual production capacity of 50,000 units and is estimated to generate
around 2,000-3,000 jobs.

1.2.2 Government initiatives

In a bid to push the 'Make in India' initiative to the global level, Mr

Narendra Modi, PM of India, pitched India as a manufacturing destination at the
World International Fair in Germany's Hannover in 2015. Mr Modi showcased India
as a business friendly destination to attract foreign businesses to
invest and manufacture in the country. The Government of India has taken several
initiatives to promote the growth of manufacturing sector in the country.
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1.2.2.1 Notable initiatives and developments

The government of India has introduced several policy measures in the

union budget 2017-18 to provide impetus to the manufacturing sector. Some of
which include reduction of income tax rate to 25 per cent for MSME companies
having turnover up to Rs 50 crore, MAT credit carry forward extended to 15 years
from 10 years and abolishment of Foreign Investment Promotion Board (FIPB) by
2017-18.
The National Institution for Transforming India (NITI Aayog), after its
recent push for Rs 6,000 crore (US$ 900 million) textile sector package, aims to
persuade the government for similar support in the manufacturing sectors with large-
scale employment generation opportunities, such as electrical and electronics
engineering, footwear and light manufacturing segments, which also have export
potential. The ministry of labor and employment plans to relax compliance measures
for MSMEs by exempting them from inspections related to key labor laws in order to
encourage entrepreneurs to help promote manufacturing in India.

The government of India plans to give a big boost to local manufacturing

by introducing the new 'Make in India green channel', which will reduce the time
taken for cargo clearance at ports from about a week to a few hours. NITI Aayog
plans to release a blueprint for various technological interventions which need to be
incorporated by the Indian manufacturing economy, with a view to have a
sustainable edge over competing neighbors like Bangladesh and Vietnam over the
long term.

Ms Nirmala Sitharaman, minister of state for commerce and industry,

has launched the technology acquisition and development fund under the National
Manufacturing Policy (NMP) to facilitate acquisition of clean, green and energy
efficient technologies, by Micro, Small & Medium Enterprises (MSMEs).
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The government of India has asked New Delhi's envoys in over 160
countries to focus on economic diplomacy to help government attract investment and
transform the 'Make in India' campaign a success to boost growth during the annual
heads of mission’s conference. PM, Mr. Modi has also utilized the opportunity to
brief New Delhi's envoys about the government's foreign policy priority and
immediate focus on restoring confidence of foreign investors and augmenting foreign
capital inflow to increase growth in manufacturing sector

1.2.3 Road ahead

The government of India has an ambitious plan to locally manufacture as

many as 181 products. The move could help infrastructure sectors such as power, oil
and gas, and automobile manufacturing that require large capital expenditure and
revive the Rs 1,85,000 crore (US$ 27.75 billion) Indian capital goods business. India
is an attractive hub for foreign investments in the manufacturing sector.

Several mobile phone, luxury and automobile brands, among others, have
set up or are looking to establish their manufacturing bases in the country. With
impetus on developing industrial corridors and smart cities, the government aims to
ensure holistic development of the nation. The corridors would further assist in
integrating, monitoring and developing an environment for the industrial
development and will promote advance practices in manufacturing.

1.2.4 Manufacturing industry- Indian scenario

The manufacturing industry in India has all the qualities which enhance
economic development, increase the productivity of the manufacturing industry and
face competition from the global markets. The manufacturing industry in India is
believed to have the potential of improving the economic condition of India. India
has a working population of 75%. Out of this, only 600 million have acquired
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education till middle school.

Exports of manufactured goods in India accounted for 75% in

comparison to exports of manufactured goods all over the world. Owing to the
performance manifested by the export sector in India, the scenario indicates that
there is less competition in the manufacturing segment. Absence of competition is
also established by the fact that in spite of reducing the tariff in the early and mid
90s, India continued to be one of the protected economies of the world. Contribution
of India's export towards international market grew from 05% to 0.7% during 1990
to 2000.

1.2.5 Contribution to GDP

At present, the industry contributes 16 percent to India’s GDP. Anand

Sharma, the union minister of commerce and industry, has stated that the union
government will look to increase the manufacturing sector’s growth and create a
policy that will assist the sector perform properly in India.

1.2.5.1 Manufacturing sector’s position

The contribution made by the manufacturing sector in India’s real gross

domestic product has increased over the years. However, the rate of growth has not
been at par with expectations. In the planning process of India’s economic
development a lot of emphasis was given on the heavy industries.

In 2007, the manufacturing sector contributed 34 percent to China’s GDP

while its Indian counterpart accounted for 16.1% in 2009-10 fiscal. In the last few
years, India’s registered manufacturing sector has made better contributions than the
unregistered sector.
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1.2.5.2 Manufacturing industry contribution to GDP

The following table provides information on the contribution made by

manufacturing industries across the states and union territories to India’s GDP.

State/union territory Approximate contribution of manufacturing industry to

GDP
Puducherry 36
Gujarat 26
Goa 25
Chhattisgarh 22
Uttarakhand 21
Maharashtra 21
Jharkhand 21
Punjab 18
Karnataka 17
Haryana 17
Tamil Nadu 17
Orissa 16
Rajasthan 13
Madhya Pradesh 12
Uttar Pradesh 12
Himachal Pradesh 12
Andhra Pradesh 10
West Bengal 10
Kerala 9
Assam 8
Jammu and Kashmir 7
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Meghalaya 6
Delhi 6
Bihar 6
Chandigarh 5
Manipur 5
Tripura 3
Sikkim 3
Arunachal Pradesh 2
Mizoram 1
Andaman and Nicobar 1
Table 1.1 State wise contributions to GDP Source: statisticstimes.com

1.2.6 Top players in Indian manufacturing sector

The leading names in India’s manufacturing sector may be mentioned as below:

 Larsen and Toubro
 Maruti Suzuki
 Ranbaxy Laboratories
 Mahindra and Mahindra
 Apollo Tyres
 Asian Paints
 Hindustan Lever Network
 Jindal Steel & Power
 Bombay Dyeing
 Videocon Industries

1.2.7 The global scenario

The global manufacturing sector has undergone a tumultuous decade:

developing economies leaped into the first tier of manufacturing nations, a severe
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recession choked off demand, and manufacturing employment fell at an accelerated

rate in advanced economies. Still, manufacturing remains critically important to both
the developing and the advanced world. In the former, it continues to provide a
pathway from subsistence agriculture to rising incomes and living standards. In the
latter, it remains a vital source of innovation and competitiveness, making outsized
contributions to research and development, exports, and productivity growth. But the
manufacturing sector has changed bringing both opportunities and challenges &
neither business leaders nor policy makers can rely on old responses in the new
manufacturing environment.

1.2.8 The future of manufacturing industry

The next era of global growth and innovation, a major report from the
McKinsey Global Institute, presents a clear view of how manufacturing contributes
to the global economy today and how it will probably evolve over the coming
decade. Manufacturing's role is changing. In these countries, manufacturing also has
begun to consume more services and to rely more heavily on them to operate.
Manufacturing is not monolithic. It is a diverse sector with five distinct groups of
industries, each with specific drivers of success. Manufacturing is entering a dynamic
new phase. As a new global consuming class emerges in developing nations, and
innovations spark additional demand, global manufacturers will have substantial new
opportunities but in a much more uncertain environment.

Globally, manufacturing continues to grow. It now accounts for

approximately 16 percent of global GDP and 14 percent of employment. But the
manufacturing sector's relative size in an economy varies with its stage of
development. When economies industrialize, manufacturing employment and output
both rise rapidly, but once manufacturing's share of GDP peaks at 20 to 35 percent of
GDP it falls in an inverted U pattern, along with its share of employment. The
reason is that as wages rise, consumers have more money to spend on services,
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and that sector's growth accelerates, making it more important than manufacturing as
a source of growth and employment. The sector is also evolving in ways that make
the traditional view that manufacturing and services are completely separate and
fundamentally different sectors outdated. Service makes up an increasing amount of
manufacturing activity. In the United States, every dollar of manufacturing output
requires 19 cents of services. As advanced economies recover from the great
recession, hiring in manufacturing may accelerate, and some nations may even raise
net exports. Manufacturers will continue to hire workers, both in production and
nonproduction roles (such as design and after-sales service). But in the long run,
manufacturing's share of employment will remain under pressure as a result of
ongoing productivity improvements, faster growth in services, and the force of global
competition, which pushes advanced economies to specialize in activities requiring
more skills.

No two manufacturing industries are exactly alike; some are more labor-
or more knowledge intensive. Some rely heavily on transportation, while for others;
proximity to customers is the critical issue. The largest segment by output (gross
value added) includes industries such as autos, chemicals, and pharmaceuticals.
These industries depend heavily on global innovation for local markets they are
highly R&D intensive and also require close proximity to markets. The second-
largest segment is regional processing, which includes industries such as printing and
food and beverages.

1.2.9 Important trends

The industrial manufacturing sector remains risk averse, unwilling to spend on new
machinery, software, and talent during a period of protracted slow growth and
limited proven solutions. Only thirty percent of American companies were planning
to increase spending on information technology in the subsequent twelve months.
The remaining companies are likely to fall behind. Of course, new investments alone
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aren’t enough. Industrial manufacturers need additional skills as well; they must find
out how to manage a superabundance of new data so that it becomes useful and not
overwhelming; adapt technology to run their own supply chains and operations more
seamlessly; monetize digitization; find talent adept at industrial software
programming and analytics; and build strategic partnerships that won’t compete for
market share. Below are six actions for 2017 that can help industrial manufacturers
profit despite the significant challenges they face. The industrial manufacturing
sector has a remarkable opportunity, but remains risk averse.

Leverage data and analytics in a new business model: By upgrading their

technical capabilities, industrial manufacturers can bundle a variety of services
enabled by connectivity and data, replacing the increasingly outmoded model of
selling one big complex machine under warranty and a service agreement for
maintenance and repair. These new services can include condition-based
maintenance, which involves ongoing real-time monitoring of equipment to
determine its maintenance needs; collaboration with customers on a day-to-day basis
to customize asset optimization; and predictive performance management for large
and small projects and equipment. With this approach, the breadth and value of the
services provided by the industrial manufacturer can enhance customer retention and
lead to deeper and more lucrative commercial engagements.

Innovate pricing: As technology begins to alter the relationship between industrial

manufacturers and their customers, the traditional pricing model for the service
contract must be changed as well, from pay-for-product to pay-for-performance.
Condition-based maintenance (discussed above), driven by predictive and
interconnected industrial technology, will become common place. This should
translate into fewer visits from repair technicians. As a result, customers will
naturally expect more favorable terms, which can be facilitated by sharing risk.
Instead of basing equipment pricing on products and fixed maintenance or warranty
costs, industrial manufacturers should establish fee structures tied to outcomes. For
example, the industrial manufacturer may be paid more if equipment downtime is
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reduced or if an upgrade improves productivity. Some industrial manufacturers

flinching at this drastic shift in pricing structure will adopt a blended approach, with
fixed fees to cover some costs and a variable component based on efficiency and
productivity gains realized by the customer.

Develop strategic partnerships: Industrial manufacturers must become more active

players in the technology ecosystem, seeking expertise outside the industry in order
to develop equipment connectivity, data analysis, and software that are beyond their
current abilities. For example, recognizing that it cannot grow the ecosystem alone,
at least one major industrial company has aligned with a wide range of technology
firms to create a dedicated cloud-based platform that can run industrial workplaces.

Joint arrangements are necessary because startup technology

companies have begun to whittle away at bits and pieces of the IOT’s corner of the
industrial manufacturing market. But these alliances are not without risk. Leaders
have to balance the practice of close collaboration with strategic partners against the
need to stay flexible in contracting and partner selection, all while maintaining their
hold on their markets.

Mine operational data: If connected machines the primary components of the IOT
are to be the backbone of industry in the near future, industrial manufacturers will
have to figure out how to manage the data coming from an avalanche of sensors,
integrated equipment and platforms, and faster information processing systems.
There is a critical need to hire people who can mine these bits and bytes of
information and work more closely with customers to use the data to improve
equipment performance and open new revenue streams. By proactively leading the
digitization effort, industrial manufacturers can earn a growing portion of these
gains.
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Decide what intellectual property to be shared and developed: Many industrial

manufacturers find it difficult to manage digitization and big data analytics because
their internal IT systems are so unwieldy. As company operations have grown more
complex, expanding into new global markets and product lines and integrating newly
acquired firms over many years, the old enterprise resource planning (ERP) systems
that were meant to drive efficiency and coordination have proliferated into a tangled
mass of disparate networks. In this landscape, it is difficult for IT to respond quickly
or adequately to business and market demands and to facilitate digital solutions that
are suddenly in favor in the executive suite. Industrial manufacturers must overhaul
their IT systems, creating a completely new architecture that can serve as the
backbone for internal and external technology initiatives.

Create strategies for talent development and retention: In the digitization

sweepstakes, industrial manufacturers often find themselves at a disadvantage when
trying to attract and retain talent. For example, in the U.S. many of the best and
brightest STEM (science, technology, engineering, and math) students would prefer
to work in Silicon Valley, where innovation is on the menu for breakfast, lunch, and
dinner, rather than in the stodgier old-world locales where many industrial
manufacturers have their plants and headquarters. Diversity of expertise and skill sets
will help to shorten the learning curve in the organization.