FUNDAMENTAL ANALYSIS OF COMPANIES

AUTOMOBILE INDUSTRY:
(i) MARUTI SUZUKI
COMPANY PROFILE:
Maruti Suzuki India Ltd formerly which was known as Maruti Udyog Ltd is
India's largest automobile manufacturer, which takes over more than 50% of
the domestic car market. Maruti Suzuki ltd is a subsidiary of Suzuki Motor
Corporation of Japan. This Japanese car maker has majority stake of 56.21% in
Maruti Suzuki as on 31 December 2017.
COMPANY OF OBJECTIVES:
 The SUV segment has been growing rapidly in the domestic market with
a combined annual growth rate (CAGR) of 13% over the past five years.
 India's largest carmaker, Maruti Suzuki India Ltd aims to increase its
market share in the commercial vehicle (SUV) segment by redesigning its
crossover car, the S-Cross, as a mid-range SUV and aggressively pressing
the fuel entry-level SUV, Vitara Brezza.
 The move is part of the company’s strategy to improve profitability and
operating margins following the economic disruption caused by the
Covid-19 pandemic, which led to vehicle sales plummeting in the past
few months, thus affecting the bottom lines of automobile
manufacturers.
 Consequently, the share of such vehicles as part of the overall passenger
vehicle sales has grown to 28-29% at the end of FY20 from just 13-14% in
FY18.
MISSION AND VISION:
 “To be a leader in the Indian automobile industry creating customer
delight and shareholder wealth, a pride of India”
  Maruti’s vision statement coveys’ a picture of what the future looks like,
it has a desirable appeal “creating customer delight and shareholder
wealth”, it is also distinctive being “a pride of India”. The statement is
also focused and clear “to be a leader in the automobile industry”.
 QUALITY POLICY:
Maruti Suzuki Group is making efforts to give “the priority to quality” as the
most critical matter for “strengthening of manufacturing”. It is aiming at
becoming a trusted brand by giving top priority to the safety and security of
our customers, developing and manufacturing quality products that their
customers can use with security, and quickly responding to feedback from their
customers during after-sales services.
Suzuki Group has adopted the international standard ISO9001 as its quality-
management system. In addition to 5 plants in Japan, major overseas plants in
India, Indonesia, Thailand, Hungary, etc., have also adopted the ISO9001.
As a result, the ratio of production at plants certified by ISO9001 against the
entire global production of automobiles in the Suzuki Group in FY2019
(2,967,000 vehicles) reached approximately 99.6%.
RECOGNITION AND MERITS:
 The Brand Trust Report published by Trust Research Advisory, a brand
analytics company, has ranked Maruti Suzuki in the thirty seventh
position in 2013 and ninth position in 2019 among the most trusted
brands of India.
 Maruti Suzuki has been awarded the 'National Safety Award' by Ministry
of Labour and Employment, Government of India. The award is for
excellence in industrial safety in the automobile category in the
performance year 2016.
COMPANY ISSUES AND LITIGATIONS:
  The police charged 147 Maruti workers with murder and rioting, 34 of
whom are still in jail. That conflict resulted in losses of Rs 2,500 crore
and a 6% drop in market share for the company. In the wake of the
clashes, Maruti sacked more than 1,700 contract and 546 permanent
employees
 CCI imposes ₹200 crore penalty on Maruti Suzuki for entering into
anti-competitive agreements with dealers to restrict discounts.
The CCI found that Maruti not only entered into such agreements but
also monitored the same by appointing Mystery Shopping Agencies
and enforced the same through the imposition of penalties.
PATENTS & COPYRIGHTS:
 Maruti has now filed a patent for a distinct car running sound of a jet
aircraft. The sound will be used in electric cars to notify pedestrians
that a car is passing by.
 Maruti Suzuki has also recently filed patent for its all new Celerio
designs in the Indian market
 Maruti Suzuki have trademarked 6 new names for its electric segment
out of which three names have come out that is Libertas, Espaco and
Solido. Maruti Invicto, Plazeria and Excursio are the latest names that
were trademarked by the OEM.
CORPORATE GOVERNANCE:
S. No. Name of the PAN$ & DIN Category Date of
Director (Chairperson/ Appointment in
Executive/Non- the current
Executive/Independent/ term/ cessation
Nominee) &
DIN: 00007620
1 R.C. Bhargava PAN: Chairperson-Non- 07-Jul-03
AAAPB0832F Executive
DIN: 02262755
2 Kenichi PAN: Executive 01-Apr-19
Ayukawa BIAPA0460R
DIN: 00680073
 3 Osamu Suzuki PAN: N.A. Non-Executive 24-May-83
DIN: 06709846
4 Toshihiro PAN: N.A. Non-Executive 28-Oct-13
Suzuki
DIN: 00049067
5 Kinji Saito PAN: Non-Executive 28-Apr-12
AJVPS2720D
DIN: 00068502
6 Davinder Singh PAN: Independent 04-Sep-14
Brar AAGPB0665A
DIN: 02943155
7 R.P. Singh PAN: Independent 04-Sep-14
ACUPP6767D
DIN: 00114636
8 Lira Goswami PAN: Independent 28-Aug-19
ADAPG3296K
DIN: 00034051
9 Maheswar PAN: Independent 14-May-20
Sahu ADKPS6835Q
27-Jul-2019
(Appointment)
DIN: 08506746 28-Apr-2021
10 Takahiko PAN: Executive (Cessation)
Hashimoto AIGPH2138G
DIN: 07806180
11 Hisashi PAN: Executive 28-Apr-21
Takeuchi BTHPT7249O
DIN: 08619076
12 Kenichiro PAN: Executive 05-Dec-19
Toyofuku ANPPT7659G
DIN: 06437336
13 Shigetoshi Torii PAN: Executive 28-Apr-21
APQPT3810E

S. No. Name of Committee Name of Committee Category (Chairperson/ Executive

Members Non-Executive/Independent/
Nominee) &
Audit Committee Mr. Davinder Singh Brar Chairperson- Independent
1 Ms. Lira Goswami Independent

Mr. R.P. Singh Independent

Mr. Maheswar Sahu Independent

Mr. Davinder Singh Brar Chairperson- Independent
2 Nomination and Mr. R.C. Bhargava Non- Executive
Remuneration Mr. Toshihiro Suzuki Non- Executive

Committee Ms. Lira Goswami Independent

Mr. R.C. Bhargava
3 Stakeholders' Mr. Davinder Singh Brar Independent
Relationship Mr. Kenichi Ayukawa Executive
Committee
Mr. R.C. Bhargava Chairperson- Non-Executive

Mr. Kenichi Ayukawa Executive

Mr. Shigetoshi Torii Executive

Risk Management
4 Committee Mr. Hisashi Takeuchi Executive

Mr. Kenichiro Toyofuku Executive

Mr. Ajay Seth Chief Financial Officer

Mr. Rajiv Gandhi Sr. Executive Officer (Production)

Mr. R.C. Bhargava Chairperson- Non-Executive

5 Corporate Social Mr. Kenichi Ayukawa Executive
Responsibility Mr. R.P. Singh Independent
Committee
FINANCIAL ANALYSIS:

250,000.00

214620 219870
200,000.00 211820
201670

150,000.00

100,000.00
88,581.30
81,808.20 79,031.40
73,278.90
50,000.00

0.00 11,003.40 10,465.60 7,064.80

2018 2019 2020 5,159.40
2021

Revenue Net Profit Market Cap

 1800

1600 1700.89
1603.87
1527.86
1400
1382.69
1200

1000

800

600

400

200 255.62 248.3

187.06
140.02
0 81 80 60 45
2017 2018 2019 2020

EPS BOOK VALUE PER SHARE DIVIDEND

ShareHoldings Percentage
60 56.3 56.4 56.4 56.4

50

40

30
21.9 23.1 23.1
21.5
20 17.1 16.7 15.7 15.1

10
5.2 5 4.9 5

0
Jun-20 Sep-20 Dec-20 Mar-21

Promoters FIIs DIISs Public&others

SWOT ANALYSIS:

STRENGTHS:

 Maruti Udyog limited (MUL) is in a leadership position in the market

with a market share of 48.74
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447
units from 7,65,533 units in the previous fiscal. It recently attained the
10million domestic sales mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good
product lines with good fuel efficiency like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL is the first automobile company to start second hand vehicle sales
through its True-value entity.

WEAKNESS:

 Low interior quality inside the cars when compared to quality players
like Hyundai and other new foreign players like Volkswagen, Nissan
etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new
foreign brands
 The management and the company’s labor unions are not in good
terms. The recent strikes of the employees have slowed down
production and in turn affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.

OPPURTUNITIES:

 MUL has launched its LPG version of Wagon R and it was a good
move simultaneously
 MUL can start R&D on electric cars for a much better substitute of
the fuel.
  Maruti’s cervo 600 has a huge potential in tapping the middle-
class segment and act as a strong threat to Nano
 Export capacity of the company is giving new hopes in American
and UK markets
 Economic growth of the country is constantly increasing, and the
government is working hard to increase the GDP to double digit.

THREATS:

 MUL recently faced a decline in market share from its 53.4% to

49.4 % in the previous year (2020)

 Major players like Maruti Suzuki, Hyundai, Tata has lost its
market share due to many small players like Volkswagen- polo.
Ford has shown a considerable increase in market share due to
its Figo.
 Tata Motors launches like tiago , nexon are imposing major
threats to its respective competitor’s segment

PORTERS FIVE FORCES MODEL:

(i) NEW ENTRANTS

  Most of the major global players are present in the Indian market; few
more are expected to enter.
 Financial Strength assumes importance as high are required for building
capacity and maintaining adequacy of working capital.

(ii) INDUSTRY COMPETITIONS:

 There is keen competition in select segments. (Compact and mid-size

segments).
 New Multinational players may enter the market

(iii) STRENGTH OF SUPPLIERS:

 Many automotive components suppliers

 Automotive players are rationalizing their vendor base to achieve
consistency in quality

(iv) STRENGTH OF CONSUMERS:

 Increased awareness among consumers has increased expectations.

Thus, the ability to innovate is critical
 Product differentiation via new features, improved performance and
after sales support is critical
 Increased competitive intensity has limited the pricing power of
manufactures

(v) THREAT FROM SUBSTITUTES:

 Consumer preference is changing (Mini cars are being replaced by

compact or mid-size cars)
  Setting up integrated manufacturing facilities may require higher capital
investments than establishing assembly facilities
 India also is likely to increasingly serve as the sourcing base for global
automotive companies, and automotive experts are likely to gain
increasing importance over the medium term
 Competition is likely to intensify in the SUV segment in India following
the launch of new models at competitive price

PESTLE ANALYSIS:

 POLITICAL FACTORS:
Political factors that affect the sale and revenue of automobile
companies like Maruti Suzuki are rules and regulations formed by the
government. Taxation and labour laws, affect the overall revenue of the
company if the taxes increase then the company must increase its
product price, and there is also an increase in labour laws by the
government. High skilled labour finds it easy to get a job in the
automobile sector due to these labour laws. According to the target
market, the company manufactures small cars so that it can target
economically low-income consumers. The company needs to abide by
the rules and regulations while exporting or importing its counterparts
from the international market.
 ECONOMIC FACTORS:
The economy of a country affects the sales and revenue of an
automobile company like Maruti Suzuki. As the economy of India
currently, is facing a downfall so the automobile sector is facing an
economic crisis. Maruti Suzuki is the leading automobile company in
India but due to the economic downfall, its sales decreased by 32.7
 percent in August 2019. An increase in interest and inflation rate will
result in a negative impact on the growth if the company. The oil price is
a major factor in determining the sale of the company, as the oil prices
are rising people are not willing to buy the cars and thus the sale
decreases. The manufacturing sector has grown by around 10 percent
per annum in the last few years. But due to the economic slowdown this
year, the company has curtailed its manufacturing.
 SOCIAL FACTORS:
Socially Maruti Suzuki has done a lot for the people, Maruti Suzuki
believes in serving enhanced customer requirements, and perceived
social value. Maruti has set up many welfare camps, took initiative for
the education of the underprivileged, has adopted energy-saving
technologies, reduced water wastage, taken care of road safety, etc.
Maruti Suzuki has set up its driving schools to assure every person learns
the right approach and to minimize the risk of accidents. Maruti has
always fulfilled and delivered the needs of common people. Due to the
cricket world cup, IPL, etc, the country attracts tourism so there is a
great opportunity for a company like Maruti to increases its marketing
and business. As Maruti has a strong brand value it attracts people
easily. To cater to the needs of the youth, Maruti has also launched
Maruti Genuine Accessories which extends stereo systems, carpets,
body covers, and many other cars care products for its huge customer
base.
 TECHNOLOGICAL FACTORS:
The automobile sector always needs to be updated in technologies to
consider driving safety needs and innovations in the model. The
company invests a lot in research and development to improve engine
 features. Maruti Suzuki is involved in the manufacturing of fuel-efficient
and small car engines. For its highest selling car Alto, it launched a CNG
kit. The company applies next-generation KB series engine in its new
hatchback car A-star. The company developed the LPG/CNG/Hybrid
system for the MPI engine to use as the alternate fuel technology. The
company has included a virtual design review to its Research and
development department to assure the virtual validation to reduce the
cycle time and development cost of manufacturing.
 LEGAL FACTORS:
Maruti Suzuki has to follow the highest standards of corporate
governance. All the legal laws need to be followed by the company to
take care of the safety of the consumers. The company has evolved a
legal compliance scheduling and management software by which specific
tasks are given to every individual. The customers can contact any time
for their queries to the secretarial and legal department. Maruti Suzuki is
involved in international trade, so it must follow the trade laws of every
country involved. Increased level of regulations and privatization of the
automobile sector also affects the sale of Maruti Suzuki.
 ENVIRONMENTAL FACTORS:
The automobile industry follows international standards of emission and
safety. There is a growing concern about the pollution caused by
automobiles. Maruti Suzuki enables a continuous process of promoting
recyclable and reusable car parts. Maruti is also practicing the 3 R model
- Reuse, Reduce, Recycle for a long time. Cars which are economical and
eco-friendly are introduced by the company like hybrid cars. In August
2010, the company took an initiative to introduce environmentally
friendly cars which are fitted with CNG option across the vehicle
 segment which included Eco, Alto, Estilo, Wagon R, and SX4. Thus,
Maruti became the first-ever automobile company to introduce and
manufacture CNG fitted models of car.
2) HINDUSTAN UNILEVER
COMPANY PROFILE:

Hindustan Unilever Limited (HUL), a majority-owned subsidiary of Anglo-Dutch

giant Unilever, has been working its way into India since 1888, when it started
selling its products there. As India's largest consumer goods firm, HUL markets
more than 400 brands that include beverages, food, and home and personal
care goods. Some of its names include Kwality Wall's ice cream, Sunlight dish
detergent, Lifebuoy and Dove soap, Lipton tea, Pepsodent toothpaste, and Surf
laundry detergent. HUL markets atta (a type of meal), maize, rice, and salt, and
its export division ships castor oil and fish. The company also sells bottled
water and over-the-counter medications. HUL was established in 1931 as
Hindustan Vanaspati Manufacturing Co. and following a merger of constituent
groups in 1956, it was renamed Hindustan Lever Limited. The company was
renamed in June 2007 as Hindustan Unilever Limited. As of 2019 Hindustan
Unilever's portfolio had 35 product brands in 20 categories. The company has
18,000 employees and clocked sales of ₹34,619 crores in FY2017–18.

COMPANY OBJECTIVES:

Hindustan Unilever has set itself three main goals to achieve by 2020 to help
one billion people improve their health and wellbeing; to improve the
livelihoods of hundreds of thousands of people in the supply chain; and to
halve the environmental footprint of the group’s products.

VISION:
Unilever’s corporate vision is “to make sustainable living commonplace. We
believe this is the best long-term way for our business to grow.” This vision
statement puts emphasis on sustainability, especially among consumers. The
following components are notable in Unilever’s vision statement

 Commonplace sustainable living

 Best long-term way
 Business growth

MISSION:

Unilever’s corporate mission is “to add vitality to life. We meet every day
needs for nutrition, hygiene and personal care with brands that help people
feel good, look good and get more out of life.” This mission statement
underscores how the company satisfies customers in various aspects of their
lives. The following are the significant components in Unilever’s mission
statement:

 Adding vitality to life

 Meeting everyday needs for nutrition, hygiene, and personal care
 Helping people feel good, look good, and get more out of life

AWARDS AND RECOGNITION:

 HUL ranked fourth in the top Companies for Leaders, 2009' (Asia Pacific
region) and 10th place in the global rankings in a survey carried out by
Hewitt Associates
 Awarded Customer and Brand Loyalty Award by Business India &
Business Standard in 2009
  Project Shakti won the Silver Trophy at the EMPI-Indian Express Indian
Innovation Awards, 2009
 HUL's Goa factory won a Gold Trophy at the Greentech Awards in 2009
the manufacturing sector category for their outstanding work in Safety
Management

COMPANY ISSUES AND LITIGATIONS:

 One of the major problems faced by HUL is the cutting price war in the
FMCG industry. Crowded by too many players and cut-throat
competition, reduction in price is being seen as one of the aggressive
and easy ways to churn the market.
 The problems that Hindustan Unilever Limited currently facing is
increasing input costs and operations costs due to rise in raw material
costs, increasing imitative and spurious products, and stiff competition
from other FMCG players.
 The problems that Hindustan Unilever Limited currently facing is
increasing input costs and operations costs due to rise in raw material
costs, increasing imitative and spurious products, and stiff competition
from other FMCG players.
 The employees, who were exposed to occupation health hazards due to
prolonged exposure to mercury vapour at the thermometer factory, that
was shut down by the Pollution Control Board 16 years ago, had filed the
litigation against HUL in the Madras High Court, a decade ago. Later HUL
also assured the ex-workers that they would be supported with future
health care benefits.

CORPORATE GOVERNANCE:
 S. No. Name of the Director Category Date of Appointment

1 Sanjeev Mehta Chairman & Managing 01.10.2013

Director

2 Srinivas Phatak Executive Director (finance & 01.12.2017

IT) , CFO

3 Dev Bajpai Independent Director 23.01.2017

4 Wilhelmus Uijen Independent Director 01.01.2020

5 Aditya Narayanan Independent Director 29.06.2001

6 O P Bhatt Independent Director 20.12.2011

7 Sanjiv Misra Independent Director 08.04.2013

8 Kalpana Morparia Independent Director 09.10.2014

9 Leo Puri Independent Director 12.10.2018

10 Ashis Gupta Executive 31.01.2020

AUDIT COMMITEE
S. N.
1 Ananthasubramania Executive 05-Dec-19
n & Co

FINANCIAL ANALYSIS:
700,000.00

629650
600,000.00

500,000.00 513696

400,000.00

369688

300,000.00
289159

200,000.00

100,000.00

39,518.00 46,509.00
7,285.00
35,094.00 8,522.00
38,888.00 9,092.00 10,490.00
0.00

Revenue Net Profit Market Cap

1800

1700.89
1600
1603.87
1527.86
1400
1382.69

1200

1000

800

600

400

200 255.62 248.3

187.06
140.02
81 80 60
0 45
2018 2019 2020 2021

EPS BOOK VALUE PER SHARE DIVIDEND

 Holdings

15% Foreign Promoters

3% Financial institutions
Public & Others
12%
National Banks
62% Foreign Institutions
8%

SWOT ANALYSIS:

STRENGHTS:

 HUL is a part of the Unilever group, hence strong brand equity

 It has over 18000 employees
 Hindustan Unilever has a reach of 6.4 million retail outlets which
includes direct reach to over 1.5 million retail outlets
 Two R&D centres in India in Mumbai and Bangalore
 Products with presence in over 20 consumer categories with over 700
million Indian consumers using its products
 As a part of CSR, HUL has initiatives like project Shakti, plastic recycling,
women empowerment etc
 Strong legacy of the HUL brand since its inception in 1934

WEAKNESS:

 Market share is limited due to presence of other strong FMCG brands

 Hindustan Unilever faced controversies like skin lightening creams,
pollution etc
OPPURTUNITY:

 HUL can tap rural markets and increase penetration in urban areas
 Mergers and acquisitions to strengthen the brand
 Increasing purchasing power of people thereby increasing demand

THREATS:

 Intense and increasing competition amongst other FMCG companies can

affect business of HUL
 FDI in retail thereby allowing international brands
 Competition from unbranded and local products can hurt Hindustan
Unilever's market

PESTLE ANALYSIS:

POLITICAL FACTORS:

Merging of HUL with Tata Oil Mills Company and Lakme helped Hindustan
Unilever to venture into new areas like cosmetics and food oil with the help of
regulations of India eventually helping them to expand into product and
services. Hindustan Unilever, later on merged with Kimberly Clark Corporation
helping them to enter Huggies diapers and Kotex Sanitary pads. Being sensitive
to everything in India, Hindustan Unilever does not support any political party
or government.

ECONOMIC FACTORS:
The whole world got hit with an economic crisis in 2009 but the Asian countries
were the ones which were least hit as their reliance was less based on interest
investments. When HUL was losing profits in most of the countries abroad it
was still earning profits in India. Since Hindustan Unilever has a constant price
change because it sells the products of everyday market, it is always under
pressure. Oils and soaps which mark the bottom liner are made from raw
materials like oils and chemicals whole prices keep changing every day. HUL
also faces direct competition because of the local producers, also by MNCs to
an extent that maintaining loyalty and market share hand in hand is almost
impossible

SOCIAL FACTORS:
Social programs have been a way through which Hindustan Unilever has
expanded its customer base. Hindustan Unilever accepts that an association's
value is additionally in the administration it renders to the community.
Cleanliness, nourishment, upgrade of livelihood, a decrease of ozone-depleting
substances and water impression has been HUL’s focus since the beginning.
Training and recovery of underprivileged youngsters, care for the dejected and
HIV-positive, and country improvement have also been HUL’s primer areas to
focus on. Lifebuoy Swasthya Chetana is another program that Hindustan
Unilever runs. This program focuses on getting people rid of diarrhoea. HUL's
Project Shakti is an activity through which it focuses on little towns. Through it,
Hindustan Unilever is taking rural women and their needs into consideration,
helping them live a better and much more hygienic life. This program also gives
them cleanliness and wellness education through Shakti Vani.

TECHNOLOGICAL FACTORS:

E-Commerce has been the new way for all companies, and so it has been the
same for HUL as well. Hindustan Unilever has been finding new ways to engage
customers and through its technological advancement, it has overcome this
problem of engagement by digitalization. HUL is utilizing the most recent IT
innovation; industry centre around a mechanical exertion by utilizing
innovation foundations, for example, the web, intranet, and other data trade
frameworks including phone and innovation equipment, for example, cell
phones, workstations, work areas, Bluetooth gadgets, printers and fax
machines which transmit and record data. Hindustan Unilever has started
selling its products online and this has only been possible through
digitalization. Through its technology, HUL has been able to analyse the big
data of customers and their wants, what product sells more and by how much,
thus making a breakthrough. Technology has also helped HUL understand
customer relations and apply it in modern trade.

LEGAL FACTORS:
HUL ensures that it follows every local and national law in opts working and
selling. For example, in case of Gujarat, even after high rising prices of
production, Hindustan Unilever charged nominal in the times of drought and
floods in the state. HUL needs to comply with all the natural laws in the states
pertaining these laws for its proper working. The rest of the laws which are
followed by HUL are mostly the same as followed by any other MNC, it just
needs to make sure that it doesn’t abuse or violate any law.

ENVIRONMENTAL FACTORS:
Hindustan Unilever has been in news always for breaking natural laws and
dumping compounds which are harmful and have jeopardized lives of workers
and residents living around their factories. An episode which occurred at
Kodaikanal industrial facility, because of dumping and selling pieces of glass
material containing Mercury, HUL came into light and was blamed for the
same. Hindustan Unilever had to close the production line as well. This
resulted in checking their production procedure and eventually illegal
scrapping of Mercury was found. Finally, the organization had to clean all their
squander and get back to following all the nature laws accordingly. They took
authorization from both Indian and US government to send back the waste
according to the norms of the same. HUL needs to be more stringent about
following environmental laws and creating a better surrounding for all.

PORTERS FIVE FORCES MODEL:

THREAT FROM NEW ENTRANTS:
New entrants in Personal Products brings innovation, new ways of doing things
and put pressure on Unilever PLC through lower pricing strategy, reducing
costs, and providing new value propositions to the customers. Unilever PLC
must manage all these challenges and build effective barriers to safeguard its
competitive edge.
BARGAINING POWER OF SUPPLIERS:
All most all the companies in the Personal Products industry buy their raw
material from numerous suppliers. Suppliers in dominant position can
decrease the margins Unilever PLC can earn in the market. Powerful suppliers
in Consumer Goods sector use their negotiating power to extract higher prices
from the firms in Personal Products field. The overall impact of higher supplier
bargaining power is that it lowers the overall profitability of Personal Products.
BARGAINING POWER OF BUYERS:
Buyers are often a demanding lot. They want to buy the best offerings available
by paying the minimum price as possible. This put pressure on Unilever PLC
profitability in the long run. The smaller and more powerful the customer base
is of Unilever PLC the higher the bargaining power of the customers and higher
their ability to seek increasing discounts and offers.
THREATS FROM SUBSTITUTES:
When a new product or service meets a similar customer need in different
ways, industry profitability suffers. For example, services like Dropbox and
Google Drive are substitute to storage hardware drives. The threat of a
substitute product or service is high if it offers a value proposition that is
uniquely different from present offerings of the industry.
RIVALRY AMONG EXISTING CUSTOMERS:
If the rivalry among the existing players in an industry is intense then it will
drive down prices and decrease the overall profitability of the industry.
Unilever PLC operates in a very competitive Personal Products industry. This
competition does take toll on the overall long-term profitability of the
organization.

3)STATE BANK OF INDIA

COMPANY PROFILE:

SBI is an Indian multinational, Public Sector banking and financial services

company. SBI is one of India’s major banks and is an industry leader in terms of
size, business sector promotion and initiatives for the progress and economic
enhancement of the Indian economy. SBI is entering into many new businesses
with strategic tie ups – Pension Funds, General Insurance, Custodial Services,
Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory
Services, organized items and so on – every one of these activities having a
massive potential for development. SBI is moving forward with forefront
innovation and imaginative new saving money models, to strengthen its
presence and widen its client base. The bouquet of services provided by SBI
includes Personal Banking, International, Banking, Agriculture / Rural and
Corporate Banking, SME, Government Business and Domestic Treasury. SBI is a
universally acknowledged regional banking giant and has 20% market share in
deposits and loans among Indian commercial banks.

COMPANY OBJECTIVES:

 To act in accordance with the broad economic policies of the

government.
 To encourage and mobilise savings by opening branches in rural and
semi-urban areas and to promote rural credit.
 To establish government partnership in the provision of cooperative
credit.
 To extend financial help for the establishment of licensed warehouses
and cooperative marketing societies.
 To provide financial help to the small scale and cottage industries.
 To provide remittance facilities to the banking institutions. The State
Bank of India acts as an agent of the Reserve Bank in all those places
where the latter does not have its branches.

Vision:

To become synonymous with an inclusive idea of wealth creation with

benefits having a far-reaching impact.

Mission:

To provide unmatched products, incisive expertise, and premium privileges

with focus on Client Experience and Quality in Service Delivery.

AWARDS AND RECOGNOTION:

  Best Transaction Bank in India by “The Asian Banker” for the second
time in a row.
 ” The Best Trade Finance Bank (India)-2019” for the eighth
consecutive year by Global Finance Magazine.
 “Green Bond Pioneer Award” for being the largest new emerging
markets Certified Climate Bond issuer of 2018 by Climate Bond
Initiative.
 ‘Best MSME Bank Award-Large bank’ by CIMSME.
 YONO, our digital initiative, won the “Mobile Banking Initiative of the
Year -India” at the Asian Banking and Finance Retail Banking Awards,
Singapore, and ET BFSI Innovation Awards.
 6.At the Asian Banker Financial Technology Innovation Awards 2018
SBI received awards in several categories including The Risk Data and
Analytics Technology Implementation of the Year for OFSAA.

FINANCIAL ANALYSIS:
350,000.00

300,000.00 308,547.01
302,545.07
283990 286440
279,643.54
266070
250,000.00 265,100.00
242970

200,000.00

150,000.00

100,000.00

50,000.00

14,488.11 20,410.77
0.00 -6,547.45
2018 862.30
2019 2020 2021

-50,000.00

Revenue Net Profit Market Cap

300

250 258.05
247.53
233.34
217.69
200

150

100

50

22.87
0 0 16.23 0
0 -7.67
2018 0.97 2019 2020 2021 4

-50

EPS BOOK VALUE PER SHARE DIVIDEND

 Holdings

8%
14% Promoters: Government of India
FIIs/GDRs/OCBs/NRIs
Banks & Insurance Companies
11% 57% Mutual Funds & UTI
Others
11%

SWOT ANALYSIS:

STRENGHTS:

 SBI is India’s biggest bank in terms of market share, sales, and reserves.
 SBI has been ranked in the Fortune Global 500 list.
 According to recent reports, the bank has more than 22141 branches
and 58555 ATM’s.
 The bank is active in 36 countries involved in currency traders around
the world.
 SBI has the first-mover edge of commercial banking facilities.
 SBI recently updated its vision and mission statements indicating an
indication of inclination towards new-age banking services.
 State Bank of India has a huge employee base of 257252 employees.
 SBI has revenue of 143306 Crore rupees (20 billion US Dollars).
WEAKNESS:

 The lack of adequate technology-driven infrastructure relative to private

banks
 Employees are hesitant to fix issues efficiently due to better job stability,
and the turnaround period for clients is lengthy relative to private banks.
 The banks pay a large sum on their leased houses.
 SBI has the largest number of employees in the banking sector, which is
why the bank spends a considerable amount of its income on employees
‘salaries.
 Despite the modernization, the bank still conveys the perception of the
traditional bank to new-age clients.
 SBI does not draw corporate payroll accounts, and any government
employee’s payroll accounts are now transferred to private banks for
ease of service, unlike before.

OPPURTUNITY:

 The merger of SBI with five other banks, namely the State Bank of
Hyderabad, the State Bank of Patiala, the State Bank of Bikaner and
Jaipur, the State Bank of Travancore, and the State Bank of Mysore, is at
the approval stage.
 Mergers would result in a rise in market share to protect its number one
spot.
 SBI aims to expand and invest in foreign activities due to a strong inflow
of capital from the Asian economy.
  As some of the banking activities are yet to be modernized, there is a
greater opportunity for leveraging new technology and applications to
enhance customer ties.
 Young and talented graduate and B school pools are on the rise to open
new horizons for the so-called “old government bank”.

THREATS:

 Net profit of the year decreased from 9166.05 in the year 2010 to
7.370.35 in the year 2011.
 This indicates that the market share of its close rival ICICI is that.
Other private banks, such as HDFC, AXIS bank, etc.
 FDIs permitted in the banking sector was increased to 49%, which is a
major challenge to SBI as citizens continue to turn to international banks
for better banking services facilities and technology.
 Other government banks, such as GNP, Andhra, Allahabad Bank, and
Indian Bank, are coming up.
 Customers prefer to switch to private banks and financial service
providers for loans and mortgages, as SBI involves strict verification
procedures and takes a long time to process.

PESTLE ANALYSIS:

POLITICAL FACTORS:

Endorsing the fact that RBI plays a vital role in proceeding of SBI and forging
and penetrating rules to the whole Indian banking sectors. Hence, the RBI’s
1991 monetary policy and control system accrued the efficiency,
competitiveness, and productivity between the banking sectors.
However, with accordance to the Banana Banking Skins 2010 survey the
political interference accounted as the major risk for banking sectors.
Relatively, the finance minister raised the farm credit goal from $536 billion
2009-08 to $606.9 billion 2009-10 and the Union budget

2009-10 prolonged the debt condo nation to six months for the 2-hectare land
farmer holders

which can make positive and negative impacts over the SBI operation as the
bank process their 36% of their activities in rural zone of India.

ECONOMIC FACTOR:

Economic fluctuation reflects a fragile and lucrative effect to the banking

sectors financial system. Considering the “India vision 2020” belayed by
Planning Commission of Indian Government in order to ideate the banking
sectors future. The Commission seeks to raise the India’s ranking from 11 th to
4th in World Development Report from GDP ratio perspective and transforming
India from low-income nation to upper-middle-income nation. To implement
the vision, priorities are striving to

increase the annual GDP growth from8.5% to 9% in next 7 years and Indian
Vision seeks to mitigate the agriculture share from 28% to 6%, which could be
prove vulnerable to SBI in terms of investment in infrastructure, technology
and operations.

SOCIAL FACTOR:

According to 1950-2050 demographic studies, India’s fruition rate is waning

from 5.91% to 2.76% today and is expected to decrease more to 1.8%.
Furthermore, India’s demise rate is mitigating from 25.5% 1950-55 to 8.5%
now and will reach to its lowest rate 7.9% in2020-25. The mentioned statistics
indicates the sign of longer income of customers to the SBI group and the
transition of customer target to the younger customers, as India will be
entitled as the youngest nations during 2010-2025.

TECHNOLOGICAL FACTOR:

The term Information Technology has remained a revitalize factor for the
success of banking sectors operation. Thus, the Foreign Banking sectors
entered the Indian market with asserting the technological based approach
while processing new technological innovation. Hence, the State Bank of India
is required to adapt to new technological innovations to operate with better
efficiency.

LEGAL FACTORS:

 Intellectual property laws and other data protection laws are, as

mentioned earlier, in place to protect the ideas and patents of
companies who are only profiting because of that information. If there is
a likelihood that the data is stolen, then will lose its competitive edge
and have a high chance of failure.
 Discrimination laws are placed by the government to protect the
employees and ensure that everyone in is treated fairly and given the
same opportunities, regardless of gender, age, disability, ethnicity,
religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible
conditions that employees were forced to work in during and directly
after the industrial revolution. Implementing the proper regulations may
be expensive, but has to engage in it, not only due to the law but also
 out of 's personal feeling of ethical and social responsibility to other
human beings.
 Laws are also placed to ensure a certain level of quality or reasonable
price for certain products to keep the customer safe and prevent them
for being provided. The industries this applies to find often their costs
elevated.

ENVIRONMENTAL FACTORS:

 The current weather conditions may significantly impact the ability of to

manage the transportation of both the resources and the finished
product. This, in turn, would affect the delivery dates of the final product
in the case of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example,
in the case of textiles, in countries where the winter has become very
mild due to Global Warming, warm winter clothes have much less of a
market.
 While relying, in any percentage, on renewable energy may be
expensive, it often receives support not only from the government but
also from its customer base, who may be willing to pay a premium price
for the products that may produce.
PORTERS FIVE FORCES MODEL:
THREAT FROM NEW ENTRANTS:
 Entry in the industry requires substantial capital and resource
investment. This force also loses the strength if product differentiation is
high, and customers place high importance to the unique experience.
 State Bank of India will face the low threat of new entrants if existing
regulatory framework imposes certain challenges to the new firms
 interested to enter in the market. In this case, new players will be
required to fulfil strict, time-consuming regulatory requirements, which
may discourage some players from entering the market.
 The threat will be low if psychological switching cost for consumers is
high and existing brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is
restricted.
BARGAINING POWER OF BUYERS:
 A more concentrated customer base increases their bargaining power
against State Bank of India
 Buyer power will also be high if there are few in number whereas a
number of sellers (business organisations) are too many.
 Low switching costs (economic and psychological) also increase the
buyers’ bargaining power.
 In case of corporate customers, their ability to do backward integration
strengthen their position in the market. Backward integration shows the
buyers' ability to produce the products themselves instead of purchasing
them from State Bank of India
 Consumers’ price sensitivity, high market knowledge and purchasing
standardised products in large volumes also increase the buyers'
bargaining power.
BARGAINING POWER OF SUPPLIERS:
 Suppliers have concentrated into a specific region, and their
concentration is higher than their buyers.
 This force is particularly strong when the cost to switch from one
supplier to other is high for buyers (for example, due to contractual
relationships).
  When suppliers are few and demand for their offered product is high, it
strengthens the suppliers’ position against State Bank of India
 Suppliers’ forward integration weakens the State Bank of India’s position
as they also become the competitors in that area.
 If State Bank of India is not well educated, does not have adequate
market knowledge and lacks the price sensitivity, it automatically
strengthens the suppliers' position against the organisation.
 Other factors that increase the suppliers’ bargaining power include-high
product differentiation offered by suppliers, State Bank of India making
only a small proportion of suppliers’ overall sales and unavailability of
the substitute products.
THREATS FROM SUBSTITUTES:
 A cheaper substitute product/service is available from another industry
 The psychological switching costs of moving from industry to substitute
products are low.
 Substitute product offers the same or even superior quality and
performance as offered by State Bank of India’s product.
RIVALRY FROM EXISTING FIRMS:
 There are only a limited number of players in the market
 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets
different sub-segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the
industry without incurring huge losses.
4) JUBILANT FOODWORKS

COMPANY PROFILE:

Jubilant Food Works Limited (JFL/Company) is part of the Jubilant Bhartia

Group and is India's largest food service Company. The Company holds the
master franchise rights for three international brands, Domino's Pizza, Dunkin'
Donuts and Popeyes addressing three different food market segments. The
Company launched its first homegrown brand – Hong's Kitchen in Chinese
cuisine segment & has also begun offering brand-owned ready-to-cook range
of sauces, gravies and pastes, 'Chef Boss'. The Company also entered into the
exciting world of Biryanis with the launch of "Ekdum!". It offers the widest
range of Biryanis curated from various parts of India using authentic
ingredients along with extensive range of Kebabs, Curries, Breads, Desserts
and Beverages.

The Company currently operates more than 1,380 outlets for Domino's Pizza,
Dunkin' Donuts and Hong's Kitchen and is a market leader in pizza segment.
The Company has more than 30,000 brand ambassadors committed to deliver
value to its customers.

COMPANY OBJECTIVES:

 CSR agenda is integrated with the business.

 Focussed efforts are made in the identified community development
areas to achieve the expected outcomes.
 Support in nation building and bringing inclusive growth through our CSR
programs

Vision:
 To follow global progression in the concept of Corporate Social
Responsibility and its

implementations by way of being beneficial to our society and the

corporations to which we render services.

To ensure benefit to society and to the corporation for sustainable

development by imparting measurable values to all stakeholders in every
aspect of our operations.

Mission:

To work on the popularity, adoption, and implementation of the concept of

Corporate Social Responsibility while adding measurable values to the
community and to our corporation along with managing related processes to
the advantage of all concerned in a way that becomes model for other
corporations for replication, to further expanding the scope.

AWARDS AND RECOGNOTION:

 Jubilant Food Works Limited has won the ‘Recognition for Customer
Centricity’ – (Service), (Large Business Organization) award based on
the assessment outcome of the ‘CII Awards for Customer Obsession –
2016’
 JFL has won the 3rd Edition of “Indian Risk Management Award" by
CNBC TV-18
 JFL has won CSR Initiative of the year Award in 2016 at Annual Indian
Retail Awards
 FL has won 7 CII Awards for Food Safety – 2016 Outstanding
Performance, Significant Achievement, Strong Commitment, Letter of
 Appreciation in Food Safety in the Category of 'Small & Medium Food
Service: Rising Star: QSR'
 JFL has been certified as Great Place to Work for building a high trust
& performance culture in 2017
 JFL has won the Golden Peacock award in FY16 for National Quality
Award, National Training Award and Risk Management

FINANCIAL ANALYSIS:
350,000.00

300,000.00 308,547.01
302,545.07
283990 286440
279,643.54
266070
250,000.00 265,100.00
242970

200,000.00

150,000.00

100,000.00

50,000.00

14,488.11 20,410.77
0.00 -6,547.45
2018 862.30
2019 2020 2021

-50,000.00

Revenue Net Profit Market Cap

 300

250 258.05
247.53
233.34
217.69
200

150

100

50

22.87
0 0 16.23 0
0 -7.67
2018 0.97 2019 2020 2021 4

-50

EPS BOOK VALUE PER SHARE DIVIDEND

Holdings

8%
14% Promoters: Government of India
FIIs/GDRs/OCBs/NRIs
Banks & Insurance Companies
11% 57% Mutual Funds & UTI
Others
11%

SWOT ANALYSIS:
STRENGHTS:

 Huge popular brand name and brand loyalty

 High number of products
 Hygienic food and quick service
 Leader in mobile and online ordering
 Strong brand equity supported by heavy marketing and advertising
campaigns

WEAKNESS:

 High calorie and high fat food not good for health conscious people
 High staff turnover due to lack of training and development

OPPURTUNITY:

 Improve efficiency and home delivery service

 Introduction of new flavour additives and pizza toppings that are
region specific can be good stride for Dominos
 The distribution network should be further strengthened for better
penetration into the markets for attaining optimum market levels

THREATS:

 Intensive competition from fragmented number of small competitors

 Changing consumer habits towards healthier food choices.

PESTLE ANALYSIS:

POLITICAL FACTORS:
Endorsing the fact that RBI plays a vital role in proceeding of SBI and forging
and penetrating rules to the whole Indian banking sectors. Hence, the RBI’s
1991 monetary policy and control system accrued the efficiency,
competitiveness, and productivity between the banking sectors.

However, with accordance to the Banana Banking Skins 2010 survey the
political interference accounted as the major risk for banking sectors.
Relatively, the finance minister raised the farm credit goal from $536 billion
2009-08 to $606.9 billion 2009-10 and the Union budget

2009-10 prolonged the debt condo nation to six months for the 2-hectare land
farmer holders

which can make positive and negative impacts over the SBI operation as the
bank process their 36% of their activities in rural zone of India.

ECONOMIC FACTOR:

Economic fluctuation reflects a fragile and lucrative effect to the banking

sectors financial system. Considering the “India vision 2020” belayed by
Planning Commission of Indian Government in order to ideate the banking
sectors future. The Commission seeks to raise the India’s ranking from 11 th to
4th in World Development Report from GDP ratio perspective and transforming
India from low-income nation to upper-middle-income nation. To implement
the vision, priorities are striving to

increase the annual GDP growth from8.5% to 9% in next 7 years and Indian
Vision seeks to mitigate the agriculture share from 28% to 6%, which could be
prove vulnerable to SBI in terms of investment in infrastructure, technology
and operations.
SOCIAL FACTOR:

According to 1950-2050 demographic studies, India’s fruition rate is waning

from 5.91% to 2.76% today and is expected to decrease more to 1.8%.
Furthermore, India’s demise rate is mitigating from 25.5% 1950-55 to 8.5%
now and will reach to its lowest rate 7.9% in2020-25. The mentioned statistics
indicates the sign of longer income of customers to the SBI group and the
transition of customer target to the younger customers, as India will be
entitled as the youngest nations during 2010-2025.

TECHNOLOGICAL FACTOR:

The term Information Technology has remained a revitalize factor for the
success of banking sectors operation. Thus, the Foreign Banking sectors
entered the Indian market with asserting the technological based approach
while processing new technological innovation. Hence, the State Bank of India
is required to adapt to new technological innovations to operate with better
efficiency.

LEGAL FACTORS:

 Intellectual property laws and other data protection laws are, as

mentioned earlier, in place to protect the ideas and patents of
companies who are only profiting because of that information. If there is
a likelihood that the data is stolen, then will lose its competitive edge
and have a high chance of failure.
 Discrimination laws are placed by the government to protect the
employees and ensure that everyone in is treated fairly and given the
same opportunities, regardless of gender, age, disability, ethnicity,
religion or sexual orientation.
  Health and safety laws were created after witnessing the horrible
conditions that employees were forced to work in during and directly
after the industrial revolution. Implementing the proper regulations may
be expensive, but has to engage in it, not only due to the law but also
out of 's personal feeling of ethical and social responsibility to other
human beings.
 Laws are also placed to ensure a certain level of quality or reasonable
price for certain products to keep the customer safe and prevent them
for being provided. The industries this applies to find often their costs
elevated.

ENVIRONMENTAL FACTORS:

 The current weather conditions may significantly impact the ability of to

manage the transportation of both the resources and the finished
product. This, in turn, would affect the delivery dates of the final product
in the case of, say, an unexpected monsoon.
 Climate change would also render some products useless. For example,
in the case of textiles, in countries where the winter has become very
mild due to Global Warming, warm winter clothes have much less of a
market.
 While relying, in any percentage, on renewable energy may be
expensive, it often receives support not only from the government but
also from its customer base, who may be willing to pay a premium price
for the products that may produce.
PORTERS FIVE FORCES MODEL:
THREAT FROM NEW ENTRANTS:
  Entry in the industry requires substantial capital and resource
investment. This force also loses the strength if product differentiation is
high, and customers place high importance to the unique experience.
 State Bank of India will face the low threat of new entrants if existing
regulatory framework imposes certain challenges to the new firms
interested to enter in the market. In this case, new players will be
required to fulfil strict, time-consuming regulatory requirements, which
may discourage some players from entering the market.
 The threat will be low if psychological switching cost for consumers is
high and existing brands have established a loyal customer base.
 New entrants will be discouraged if access to the distribution channels is
restricted.
BARGAINING POWER OF BUYERS:
 A more concentrated customer base increases their bargaining power
against State Bank of India
 Buyer power will also be high if there are few in number whereas a
number of sellers (business organisations) are too many.
 Low switching costs (economic and psychological) also increase the
buyers’ bargaining power.
 In case of corporate customers, their ability to do backward integration
strengthen their position in the market. Backward integration shows the
buyers' ability to produce the products themselves instead of purchasing
them from State Bank of India
 Consumers’ price sensitivity, high market knowledge and purchasing
standardised products in large volumes also increase the buyers'
bargaining power.
BARGAINING POWER OF SUPPLIERS:
  Suppliers have concentrated into a specific region, and their
concentration is higher than their buyers.
 This force is particularly strong when the cost to switch from one
supplier to other is high for buyers (for example, due to contractual
relationships).
 When suppliers are few and demand for their offered product is high, it
strengthens the suppliers’ position against State Bank of India
 Suppliers’ forward integration weakens the State Bank of India’s position
as they also become the competitors in that area.
 If State Bank of India is not well educated, does not have adequate
market knowledge and lacks the price sensitivity, it automatically
strengthens the suppliers' position against the organisation.
 Other factors that increase the suppliers’ bargaining power include-high
product differentiation offered by suppliers, State Bank of India making
only a small proportion of suppliers’ overall sales and unavailability of
the substitute products.
THREATS FROM SUBSTITUTES:
 A cheaper substitute product/service is available from another industry
 The psychological switching costs of moving from industry to substitute
products are low.
 Substitute product offers the same or even superior quality and
performance as offered by State Bank of India’s product.
RIVALRY FROM EXISTING FIRMS:
 There are only a limited number of players in the market
 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets
different sub-segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the
industry without incurring huge losses.