Crm project

Individual Project
CRM
Punit Agrawal

A Industry/ Segment Overview
Construction is an important part of the industrial sector and one of the
core sectors of India's economy. According to IHS Global Insight, US$175
billion was spent on construction in India in 2007 after growing 156%
since 20005. Out of US$175 billion, US$140 billion was spent on
nonresidential, and the remaining US$35 billion was spent on residential
construction. Construction spending is expected to increase to US$370
billion by the end of 2013, with residential totaling US$63 billion and
nonresidential registering US$307 billion. This represents a compound
annual growth rate (CAGR) of 13.3%.
IHS Global Insight's nonresidential construction forecast for India,
including major subcategories transportation, public health, energy, office,
commercial, institutional, and industrial— is expected to rise at a CAGR of
13.9% during 2007-13.
The construction sector is also the second largest employer in the country
following agriculture, employing 18 million people directly and 14 million
indirectly. Exports constitute about 5% of the size of domestic market and
include construction materials, services, and cheap labor. The country's
main international trading partners in this sector are the Middle East,
Africa, and Malaysia. Indian companies have very limited exposure to
large markets such as the United States, Japan, and West Europe.

The Indian construction industry is highly fragmented. This is partially due
to the fact that, for most projects, there are no long-term relationships
between the contractors and clients. For example, government agencies
such as the National Highway Authority of India (NHAI) do not provide
any benefits to the long-term contractors that have worked with them in
the past. Because the sector lacks economies of scale, smaller players
may have better cost structures due to lower overhead costs. The industry
can be broadly classified into two segments— organized and unorganized.
The organized segment consists of firms and independent contractors
who manage their business (design, financing, execution, etc.) on a
professional basis. The organized segment operates on small, medium,
and large scales. The unorganized segment primarily consists of
standalone contractors that operate at a small scale. Construction
activities of smaller firms in the organized segment and contractors in the
unorganized segment are mainly focused on simple construction
projects—building houses for individuals, repair, and maintenance for
smaller buildings. Construction activities for larger firms involve complex
logistics management of men, machinery, and materials.

B Company Overview
Aarti Group
Mr. Kamal Agrawal started business of cement in year 1994 which was
started with a capital of Rs.5,00,000. For that a new firm was started
Kailash Associates taking C&F of Narmada Cement Company. Market was
limited to central Gujarat and Kuch part of Gujarat.
At that time a new line was also started of soda chemicals and
organization was named as K Punit Marketing and Om Chemicals with a
initial capital of Rs.5,00,000/- in year 1996 It was started by younger
brother of Mr. Kamal Agrawal Mr. Nandkishore Agrawal and it also started
growing very fast.
At same time in year 1996 Mr. Kamal Agrawal started a new field of real
estate in which dealing in land was started and share market was stated.
A huge investment of around Rs.7,50,00,000/-.
At same time in year 1996 Mr. Kamal Agrawal started exports in textile to
Shri Lanka and which was also done on a great scale with a capital
investment of 2,50,00,000/-. At that as time grew exports also grew with
it and more and more capital was invested.
Then after some years Narmada Cement Company was takeover by L&T
so company started to operate its business functions with L&T but it did
not work well. And same time business faced problems in other field also
due to which Mr. Kamal Agrawal gradually started closing down textiles,
chemicals and real estate lines due to some natural and some political
forces. Due to which business had to face great losses.
So Mr. Kamal Agrawal planned to go for other company along with it JK
cement but same problem was their so our margins fell down gradually
and our turnover also fell down.This resulted in very low profits.
Then it went for a different product in cement, it was a ready to use sort
of cement by taking C&F of company Roofit it was a company from
Mumbai. Organization had put great efforts in it but it was not successful

as market was not so easily excepting that product as it was all to gather
a new product and consumers where not having so faith in it.
Then Mr. Kamal Agrawal approached ACC Cement Company in year 2003
which had made some changes in situation as there was less competition
among company itself as their where only less C&Fs of company but
company said if Kailash Associates was able to achieve the targets given
for that month then only a agreement of C&F would be done and Mr.
Kamal Agrawal was able to meet that targets and he became C&F of
company.
As ACC Cement Company was doing marketing of the TATA Chemicals Ltd
which produced cement but after two years i.e. in year 2005 TATA
Chemicals Ltd took over marketing from ACC Cement Company and
started doing marketing itself and made C&F from its company only. It
started cement division under TATA Chemicals Ltd and product was
marketed in name of TATA Shudh Cement.
So once again table turned and situation became worse and no business
was there so great to go ahead further. But after six months TATA
Chemicals Ltd approached Mr. Kamal Agrawal for being C&F of their
company with another C&F of that company for Ahmedabad and
Gandhinagar district. Mr. Kamal Agrawal agreed and started with firm
name Aarti Agencies which was initially Kailash Associates, with a initial
capital of Rs.50,00,000. All though there was only one other C&F of TATA
Chemicals Ltd for that region but competition was there among both
organization and with other companies C&F also in that market. Then
TATA Chemicals Ltd passed an order that from both organizations who
ever was the highest selling C&F in next six months would continue
further.
After six months time period given by company Aarti agencies was able to
perform excellent so company made Aarti Agencies as single C&F of
company for Ahmedabad and Gandhinagar district. A huge adverting and
promotion activities where done in order to increase dealers and direct
costumers.

A huge sales force was build by a great dealer network in Ahmedabad
and Gandhinagar district. Its sales went up till 10,000mt which is equal to
2,00,000 bags of cement each bag of 50 kg. As Aarti Agencies was only
C&F of TATA Chemicals Ltd.
Mr. Kamal Agrawal and Mr. Nandkishore Agrawal thought of starting new
business along with cement and they started another business by
becoming C&F of Reliance Industries in that Recron 3s division. A firm
named Aarti Associates was started with capital investment of
Rs.15,00,000 by the end of year 2005. Region under Aarti Associates for
Dr. Fixit brand was central and Kuch Gujarat
business along with cement, recron 3s and they started another business
by becoming C&F of Pidilite Industries Ltd. in that subsidiary company Dr.
Fixit brand. Operations of business of Dr. Fixit where carried under firm
Aarti Associates. With the capital of Rs.15,00,000 in year 2006. Region
under Aarti Associates for Dr. Fixit brand was whole Gujarat in project
division.
business by adding another brand of cement in the portfolio by taking C&F
of Shree Digvijay Cement Co Ltd. Operations of business of Shree Digvijay
Cement Co Ltd where carried under firm Aarti Associates and K Punit
Marketing. With the capital of Rs.50,00,000 in year 2007. Region under
Aarti Active Agencies for Roff brand was whole Gujarat in project and
retail division.
Shree Digvijay Cement Co Ltd basket of products includes special cements
like Oil Well Cement, Sulphate Resisting Portland Cement and Railway
Sleeper Manufacturing Cement in addition to other varieties of Ordinary
Portland Cement etc. But they mainly deal in Sulphate Resisting Portland
Cement, Portland Pozzolana Cement in addition to other varieties of
Ordinary Portland Cement in bulkers of cement also.

business by adding another brand of Pidilite Industries Ltd. Roff by taking
C&F of Roff. Operations of business of Roff where carried under firm Aarti
Active Agencies which was initially Om Chemicals. With the capital of
Rs.15,00,000 in year 2008. Region under Aarti Active Agencies for Roff
brand was whole Gujarat in project and retail division. Pidilite acquired
Roff brand in 2004. Roff is a pioneer in construction chemicals in India
and is well known for modern tile fixing solutions like tile-on-tile and
waterproof tile joints. Pidilite also sells several construction chemicals
under Roff name for application in waterproofing, sealing, flooring,
concrete treatment & plastering.
Mr. Kamal Agrawal and Mr. Nandkishore Agrawal thought of starting a
new product line in same construction line then they started trading of
bricks. Operations of business of bricks where carried under firm K Punit
Marketing. With the capital of Rs.10,00,000 in year 2008.
business along with cement, construction chemicals, construction fiber
and bricks that business was of steel and became Distributor of Nilkanth
Concast Pvt. Ltd. in year 2009 by adding capital of Rs.25,00,000. Under
firm K Punit Marketing.

C Vision and Mission of the organization.
VISION:
The vision of Aarti Group is to make this firm the biggest suppliers of
construction material firm in the country. To become One Stop Solution
for distribution of Building Materials & Raw Materials
MISSION:
The mission of Aarti Group is to provide the highest quality finished
product at a fair price within a reasonable amount of time. At the same
time they try to promote a good work environment for their people that
both rewards and satisfies quality workmanship.

D Organizational Chart
Top Management
Aarti Group is a firm, which is owned by the family members only no
outsiders, are having any share in it at present.
Chairman-
Kamal Agrawal
Director-
Omprakash
Agrawal
Managing Director-
Nandkishore
Agrawal
Director-
Meena
Agrawal(Non
Director-
Sunita
Agrawal(Non
Director-
Pushpadevi
Agrawal(Non

Employees
In all there are 15 employees who work for Aarti group and there is no
such specific employee, which would work for a particular firm.
As this group is adopting modern system in which has reduced its work
force as before there were employees to deliver bills but now all are send
by post and collection boys which where their to collect payments are also
cut short by developing a system of collecting payment by RTGS or by
post which has reduced its employees by number of 7 to 8
Employees
under Top
Managemen
Sales
manager
Purchase
manager
Marketing
manager
Accounts
manager
HR manager Distribution
manager
Collection
Boys (2)
Engineers
(2)
Account
recorders (2)
Auditor (1)
Workers (2

E Current Business
Current business deals in construction material like
1. Cement – TATA Shudh Cement, Kamal Cement(Digvijay Cement)
2. Steel-Neel Kanth
3. Construction fibber-Reliance Recron 3s
4. Construction chemicals-Dr. Fixit, Roof
5. Bricks
Geographical spread
It operates its operations all around India in some products but has main
excess to Gujarat local market in that mainly central and Kachchh part of
Gujarat and very limited excess to other parts of India.

And it has dealer network to access all this parts of India as it has
different dealers in each and every part like in Gujarat in Gandhinagar
there is different dealer and for other part it is different and sometimes it
can be more than one dealer in one location.
Size of the organization
Turnover
The groups over all turnover is around 150 crore.
Firms under Aarti group:
 Aarti Agencies(Kailash Associates) with 60 crore,
 And rest other contribute around 90 crore
 Aarti Associates,
 Aarti Active Agencies (Om Chemicals),
 K Punit Marketing,
 Kamal Textile,
 Saraf Sales.

F Current Segment And Offering
Currently organization is catering to
 Dealers
 Builders
 Government Contractors
Current business deals in construction material like
1. Cement – TATA Shudh Cement, Kamal Cement (Digvijay Cement)
2. Steel-Neel Kanth
3. Construction fibber-Reliance Recron 3s
4. Construction chemicals-Dr. Fixit, Roof
5. Bricks

G Competitive Analysis
ORGANISATION ANALYSIS USING MCKINSEY’S 7S FRAMEWORK
Strategy:
Aarti Groups strategy revolves round its customers. They formulate their
strategy of achieving the target of supplying quality materials to
customers in minimum time so as to achieve an edge over their
competitors.
Aarti Group emphasizes on building long term win-win relation between
the firm and its clients by sustaining relations, both personal and
professional.
Structure:
Aarti Group is designed to assist free flow of information and power within
the organization. The de-layered structure acts as a facilitator for free flow
of communication, which adds flexibility and dynamism to the functioning
of this team based organization.

Systems:
The family members who are the owners form rules and regulations,
procedures and practices that are followed to carry out tasks in the
organization. These include both the formal and informal systems, which
complement an organization structure.
Style:
Participative and transparent style of leadership gives the organization an
informal but professional outlook. The functioning of the firm follows a top
down flow but when it comes to innovation and craftsmanship, the flow
hits 360 degree.
Staff:
The staff, as the pillars of this firm, takes an upfront position and paves
way for the professional and qualified delivery of the business. Training
and assistance is provided consistently to keep the employees competent
and technically precise.
Skills:
Technical skills and other qualified communication skills are required to
cater the client. As a trading firm, quality of skills differentiates the firm
from its competitors and is given due diligence. Aarti Group has
strengthened in a number of business areas; however, their key skills
underpin their success in many business areas. Aarti Group is now trying
to achieve more of specialized skills now so as to make the firm more of a
professionally run organization.

Shared values:
To provide one’s clients with the best services, which enables them to
understand and influence the business environment in which, they
operate. Aarti Group believes in working as a business partner sharing the
objectives and vision of the client firm. This helps the firm to customize its
services and achieve their client’s strategic objective in the most efficient
manner.
THREAT OF ENTRANTS-
The threat of entrants in trading of building material is very high because
of less legal formalities required by Indian Government to enter in trading.
Moreover, there are no such great barriers out by government in this

field. Access to the distribution channel in this trade is also not difficult
because of growing industry and upcoming new suppliers and buyers.
There’s no great product differentiation in this industry which makes it
easy for new entrants to offer the same offering as provided by the
present players but huge amount of working capital is required as the
builders and contractors buy in bulk and generally trade on three to four
weeks credit. So some times, the non-availability of huge amount of
working capital may act as a hindrance for new entrants in this industry.
THREAT OF SUBSTITUES-
With the vast potential of R.M.C. plants is virtually replacing old system of
construction with the use of cement to prepare. The qualities of R.M.C. is
very much the same as those of concrete made on site by mixing cement
sand and stones and they are gaining varied application in building project
which are developing very fast. These days labor is not available so
R.M.C. solves problem of that till great extent also. R.M.C. concrete is
available in varied types as per the requirement so that problem also does
not arise.
POWER OF SUPPLIERS-
Supplier’s power is high as there’s a concentration of suppliers rather than
a fragmented source of supply building material. A trader has always a
fear that the supplier may contact their buyers personally and supply
them material at a lesser price.
BUYING POWER-
Buyer’s power in this industry is high as the supplying industry comprises
a large number of small operators and there are alternative sources of
supply perhaps because the product required is undifferentiated between
suppliers. Moreover, buyer’s power is high as there’s no cost of switching
a supplier and there’s a threat of backward integration by the buyer.

COMPETITIVE RIVALRY-
In this industry, competitors are of roughly equal size so there’s intense
competition as one competitor attempts to gain dominance over other.
Since the construction industry is at its slump now, construction material
industry in also facing down fall stage welcoming entry of competitors who
are fighting for their share. It being an undifferentiated product, there’s
little to stop customers switching between competitors.
There is a huge competition in case cement, steel, construction chemicals
and bricks which make the organization to leave the profits of margins in
that deal to meet the competition. Even some times organization needed
to make loss in deal also as to get with the new customer or to maintain
the old one.
Sometimes scenario market is not good and there is no good demand may
be due to price or any other external factor then organization is not able
meet the targets given by the company which is adversely affected in
form of the commission which is reduced to great extent which makes
situation worse as already low sales above that low margins and profits on
per unit.

H SWOT Of Company
Strength
Business is capable to do business is adverse condition and can get some
realization may it be less so owners need not need to worry as much as
they need to worry in other business and its product value will appreciate
in future so it creates a strength for business. Family background and
have a good sources for supply of raw material and good leakage with
architects and consultants.
Weakness
Great capital and labor-intensive industry so we need to employee great
capital and we need to take care very much and at same time it is very
high labor intensive so labor problems are very much in this industry.
Opportunity
Fast growing industry that to very high phase and it will grow as
population is growing and even building become old so they need to be
renewed and they need to be reconstructed so this industry will always
grow.
Threat
As such no great threat is there in this industry other then recession,
which causes a great problem as during recession industry goes under
great loss.

I Future Goals/Strategies
There is a significant scope for construction material and construction
fieldIndia where requirement may not be large but quality products can be
sold at a better price and payment terms. Such markets are difficult to
locate but can definitely be identified.
Aarti group is trying to explore untapped markets and finding out the
potential of those markets. They are taking part in various fairs now so as
to expand their presence in the emerging global market.
They are now planning to open their ware-houses and offices at other
locations also but nothing has been finalized till yet.
In year 2012 Mr. Kamal Agrawal and Mr. Nandkishore Agrawal are
planning to go for addition of one more product namely white cement to
their portfolio.
Aarti group is even trying to get into construction field i.e. becoming a
builder.

J Business Development Process
 Customers are approached frequently
 Organization tries to take many advertisement things by
distributing gifts
 Many test facility are conducted for customers benefits
 Engineers are send on site for demonstration and problem soving

K Sales Order Fulfillment Process
Sales order fulfillment process
 Sales order are taken by the booking department
 Then all orders are compiled on hourly basis
 Then scheduling is done
 Then area wise bifurcations are done
 Then it is send to dispatch department
 Then material is send as per scheduling done and on the basis of
material received

L Complaint Handling Process
 Salesdepartmenttakesfirstcomplaint
 Thenit isforwardedtoowners
 If the complaintisdue tothe Aarti groupthenownersor staff bringssolutionasper
the importance andproblemsize
 If the problemisnotof the organizationbutof the supplierthenitisforwardedto
suppliers
 Thena engineervisitssiteif required
 Thena solutionisbrought
 Andif compensationneedtobe made thennecessarycompensationismade

M Customer Touch Point And For Which
Purchase
Organizationmainlykeepsincontacttocostumersby
 Frequentengineersmeet,buildersandcontractorsmeet.
 Frequentvisitsbyengineersandsalespersonof Aarti Groupto customerssite and
office
 Regularinterval callsandtimelyvisitsmade byownerstosee whatall problemsthey
are facingand whatall theyrequire.

N Current Systems In Company
Payment terms:
At present current turnover comprising of all firms account to
Rs.150,00,00,000 and all firms make payments to creditors in advance
may it be TATA Chemicals Ltd., reliance industries, Pidilite Industries, etc.
It shares a good reputation in the market in payment terms and
credibility. It has a great goodwill in the market. Which is making it as
brand virtually for companies being associated with it as which ever
product may deal under any of the company of Aarti group may it be Aarti
Agencies, Aarti Associates, Aarti Active Agencies, K Punit Marketing, Om
Chemicals, Kamal Textile, Saraf Sales.
Payment Collection Terms:
 Aarti Agencies is having generally 4 days credit terms for dealers in
Tata cement.
 Aarti Associates is also having generally 4 days credit terms for
Kamal cement(Shree Digvijay Cement Co Ltd.).
 For construction chemicals and construction fiber it is around 15
days.
 For bricks it is 1 month.
 For steel it gives two to seven days credit.
But many times payments are delayed and not recovered also. Which
gives a great loss to business.
Distribution network:
 Material like cement, steel, bricks are done from factory of suppliers
to direct site of the customer.
 Other material may some times be transferred from warehouse in
sarkej in Ahmedabad.

O Problem Faced By Company
Nature of problem
Firm is facing fall in cement sales in TATA Shudh cement as the company
is not able to produce as per the requirement so it started with various
related products but now a stage has come to look for more broad line to
grow a great speed and to achieve great levels.
So company is planning to extend its product range in other words to go
for diversified field. So Aarti Group has planned out to go construction
line.
For this firm is looking into all the areas, which are required to be taken,
care. Taking into current scenario of downfall in construction line firm is in
dilemma to go for it now or wait and watch for some time.
It has a head office in Kankaria, Ahmedabad and booking and distribution
office in Sarkej, Ahmedabad. All companies face a labor problem as labor
loading and unloading of material which is duty of the firm need to be
completed and no labor is available in market and contractors charge
more if labor is available cheap then they some times do cutting in
material during transit period and complains come from customers which
spoils good will of the company.
There is a huge competition in case cement, steel, construction chemicals
and bricks which make the organization to leave the profits of margins in
that deal to meet the competition. Even some times organization needed
to make loss in deal also as to get with the new customer or to maintain
the old one.
Some times scenario market is not good and there is no good demand
may be due to price or any other external factor then organization is not
able meet the targets given by the company which is adversely affected in
form of the commission which is reduced to great extent which makes
situation worse as already low sales above that low margins and profits on
per unit.
Rains play a great role as due to rains some time consignment gets wet
and material like cement which get spoiled due to water as when it comes
in direct contact with water it turns into stone form and it becomes of no
use.
Upcoming RMC (Ready Mix Concrete) plants are threat for the
organization as if whole market is shifted towards it then demand for

cement bags will be finished as a results sales would be affected
adversely.
Engineers need to be trained and need to be made aware about our
products so that they are convinced and at same time purchase
department of builders and contractors need to be convinced in order to
get the order. And both need to be convinced from different point of view
and different perspective.
Organization even provides test report facility i.e. customers can test the
products and they can find deviations if they feel and that expenses is
also taken by the organization in order to get faith of the customers and
every week batch test reports are send to customers asking for it which
comes directly from the company.
Organization also gives catalogs, does wall paintings, special skims and
gift articles to promote sales and to get reminding about the product
range available. It also makes some mind set in the mind of customers
that organization cares for us like dewali gifts given makes them feel as
they are associated with the organization and organization feels
importance of them.
In last five years Technology played a great role as now a days all MNCs
are technological upgraded and we have meet there requirement may it
be e payments i.e. now a days these MNCs except e payments only so we
can not draw a cheque in favor to them, like that if order need to maid
then a server is allotted by the company in which we have to log in and
place the order if any thing goes wrong then in that server only we have
to make complaint and if due to any technical reasons like fail of
connection of internet then it creates a problem. Staff needs to be trained
as credit notes debit notes come though mail and even every bill drawn by
them do come from mails and hard copy is received after many days for
that time to make entry in books of accounts any entry need to be made
then it need to be maid through that soft copy only.
As per the requirement of MNCs organization need to spent unnesacary on
technical staff like engineers as two engineers are required instead as per
companies rules C&F need to have 3 or 4 engineers then unnesacary
additional cost is incurred.
As organization representing many leading companies it is having
esteemed sales network in throughout Gujarat State, especially in each
and every corner of central & Kutch region. It has about 250 Large &
small dealer network in Gujarat. Over and above to these 250 large
dealers we are attached with many consumers and Projects for their large
and regular need of material.
Decision making process in the organization is done in such a way that all
strategic business decisions, planning, employee related and financial

decisions are taken by chairman- Kamal Agrawal, managing director-
Nandkishore Agrawal and director- Omprakash Agrawal while routine
operational decisions about work planning and process are taken by the
middle level management.
Mainly from family three people are involved i.e. Kamal Agrawal,
Nandkishore Agrawal and Omprakash Agrawal and middle level staff. If
any thing other than a routine job or any other big decision is to be taken
or any problem comes that is not solved by middle level then the top-level
management makes decision. Final authority to make decision is Kamal
Agrawal.
Mainly organization is having a diverse culture as people from different
cast work in the organization may it be Hindu or Muslim with different
beliefs and background but no such discrimination is maid which makes
the culture of the organization very healthy and helps organization people
to settle very fast if any new comer is their.
Many employees who left the organization due to nay of the reason do
come back to meet people of the organization as they fell that they where
treated as a family member of the organization so they need to keep
relations with the organization.
Employees are working in organization from long years and they are not
leaving jog even if they are getting job some where else as they feel they
are now part of the organization and organization is like their family and
they cant leave their family like that only as the environment in the
organization is such good even lower level management people can even
directly come to top management if he feels he is not heard and some
thing is going wrong in the organization.
Government plays also a great role as due to government rules and
regulation delivery need to made between specified time as heavy
vehicles cant enter city befor or after the time given by government so
some times there is clashes with customers on that issue as their would
be no one to get material unloaded as mainly material is unloaded
between 8:00 pm to morning 7:00 am

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