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RESEARCHT REPORT
ON

MARKETING STRATGEY TO PROMOTE HOME
CREDIT INDIA FINANCE PRIVATE LIMITED IN
UTTAR PRADESH

Towards partial fulfillment of the degree of Master of Business
Administration (2014-2015)
Under Guidance of:

Submitted by:

Dr. SANJAY SRIVASTAV

ABHILASH OJHA

FACULTY SCM

(MBA IV SEM)
Roll no. ____________

SHERWOOD COLLEGE OF MANAGEMENT
INDIRA NAGAR, LUCKNOW

PREFACE
The Topic of study was “MARKETING
MARKETING STRATEGY TO PROMOTE HOME
CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR PRADESH”.
India is going through a retail revolution. All the big business houses are entering this
Sector and it is growing at a very past pace. International giants in this sector like WalMart, Tesco and Care four are also trying to enter the Indian market. Retail is offering
tremendous opportunities in employment. However, our country also poses a big
challenge to organized large retailers particularly in food sector. Food being perishable
item, for the retailer to be successful the key is proper supply chain management. The
challenge comes from a number of factors, e.g. huge size and population of our country,
varied culture and hence varied taste, very poor infrastructure like improper roads, bad
connectivity between production centers and markets, lack of proper cold chain facility
like refrigerated transportation, ware-housing etc. Under these circumstances it is
interesting to find out how large organised retailers are coping up with these problems. In
this paper a comparative study is made in supply chain management adopted by different
players in food and grocery segments.

2

ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people concerned
and this particular project is of no exception.
A project of the nature is surely a result of tremendous support, guidance, encouragement
and help.
Wish to place on record my sincere gratitude to my project guide Dr. SANJAY
SRIVASTAV, Faculty Member, Sherwood College of Management, Lucknow. I thank
him for constructive help and encouragement throughout the project. Without his support
and guidance taking this would not have been possible.
Also, wish to acknowledge enthusiastic encouragement and support extended to me by
my family members.
I’m also thankful to my friends who provided me their constant support and assistance.

ABHILASH OJHA
MBA-4th Sem

3

DECLARATION
I do hereby declare that the research report titled “MARKETING STRATEGY TO
PROMOTE HOME CREDIT INDIA FINANCE PRIVATE LIMITED IN UTTAR
PRADESH” submitted by me in partial fulfillment of the requirement of Master of
Business Administration, exclusively prepared and conceptualized by me and is not
submitted to any other Institution or University or published anywhere before for the
reward of any Degree/Diploma/Certificate. It is the Original work of mine and has not
been obtained from any other part.

ABHILASH OJHA
MBA-4th Sem

4

EXECUTIVE SUMMARY
The supply chain management is logistics aspect of a value delivery chain. It comprises
all of the parties that participate in the retail logistics process: Manufacturers,
Wholesalers, Third Party Specialists like Shippers, Order Fulfillment House etc. and the
Retailer. Here, logistics is the total process of planning, implementing and coordinating
the physical movement of merchandise from manufacturer to retailer to customer in the
most timely, effective and cost efficient manner possible. Logistics regards order
processing and fulfillment, transportation, warehousing, customer service and inventory
management as interdependent functions in the value delivery chain. It oversees
inventory management decisions as items travel through a retail supply chain. If a
logistics system works well, the retail firm reduces stock outs, hold down inventories and
improve customer service – all at the same time.
Logistics and Supply Chain enables an organized retailer to move or store products more
effectively. Efficient logistics management not only prevents needless movement of
goods, vehicles transferring products back and forth; but also frees up storage space for
more productive use.
Retail analysts say on-time order replenishments will become even more critical once the
Wal-Mart/ Bharti combine begins operations - the American retailer works almost
entirely on cross-docking and is likely to demand higher service levels, including
potential levies for delays in shipment.

5

TABLE OF CONTENT
PREFACE

2

ACKNOWLEDGEMENT

3

DECLARATION

4

EXECUTIVE SUMMARY

5

CHAPTER-I

8



INTRODUCTION

9



SUPPLY CHAIN MANAGEMENT

14



SUPPLY CHAIN MANAGEMENT AT PANTALOONS RETAIL

21



OBJECTIVE OF THE STUDY

49



SCOPE AND LIMITATIONS OF THE STUDY

50



RESEARCH METHODOLOGY

51

CHAPTER-II

54



COMPANY DETAILS

55



MANAGEMENT

57



PRODUCT LINE

59



COMPETITORS

63



GOVERNMENT POLICIES

64



ACHIEVEMENTS

65

6

CHAPTER-III

67



LEARNINGS

68



DATA ANALYSIS

69



FINDINGS

79

CHAPTER-IV


RECOMMENDATIONS

CHAPTER-V

80
81
92



CONCLUSION

93



BIBLIOGRAPHY

94



ANNEXURE/QUESTIONNAIRE

95

7

CHAPTER I

8

FINANCE IN INDIA
More than half of personal savings are invested in physical assets such as land, houses,
cattle, and gold.
The Indian money market is classified into: the organised sector (comprising private,
public and foreign owned commercial banks and cooperative banks, together known
asscheduled banks); and the unorganised sector (comprising individual or family owned
indigenous bankers or money lenders and non-banking financial companies (NBFCs)).
The unorganised sector and microcredit are still preferred over traditional banks in rural
and sub-urban areas, especially for non-productive purposes, like ceremonies and short
duration loans.
Prime Minister Indira Gandhi nationalised 14 banks in 1969, followed by six others in
1980, and made it mandatory for banks to provide 40% of their net credit to priority
sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure
that the banks fulfill their social and developmental goals. Since then, the number of bank
branches has increased from 10,120 in 1969 to 98,910 in 2003 and the population
covered by a branch decreased from 63,800 to 15,000 during the same period. The total
deposits increased 32.6 times between 1971 to 1991 compared to 7 times between 1951
to 1971. Despite an increase of rural branches, from 1,860 or 22% of the total number of
branches in 1969 to 32,270 or 48%, only 32,270 out of 500,000 villages are covered by a
scheduled bank.
Since liberalisation, the government has approved significant banking reforms. While
some of these relate to nationalised banks (like encouraging mergers, reducing

9

government interference and increasing profitability and competitiveness), other reforms
have opened up the banking and insurance sectors to private and foreign players.
As of 2007, banking in India is generally mature in terms of supply, product range and
reach-even, though reach in rural India still remains a challenge for the private sector and
foreign banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to other banks in
comparable economies of Asia. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the Indian
Rupee is to manage volatility but without any fixed exchange rate.

10

INDUSTRY PROFILE
India is undergoing rapid development. This means that there are millions of people who
dream of better home, better infrastructure and a better life. This opens several avenues of
potentially limitless growth in the banking and finance sector. Bajaj Finserv Lending will
help grab this opportunity to grow your business, through lending loans, financing, etc.

INDIA'S FINANCIAL SERVICES INDUSTRY
An innovative, competitive and thriving financial services industry in any country plays a
vital role in its smooth functioning and development. India's financial services sector has
posited a stable growth curve over the years driven by sound fundamentals, rising
personal incomes corporate restructuring, financial sector liberalization and the growth of
a consumer-oriented, credit-oriented culture. This has led to the increasing demand for
financial products, including consumer loans (especially for cars and homes), as well as
for insurance and pension products. The soaring demand for financial services offers
promising investment prospects.
According to the Central Statistical Organization (CSO) data, released early this year,
financial services, banking, insurance and real estate sectors rose by 7.4 per cent in 201314.

BACKED WITH
A favorable demographic profile which supports a higher retail off take - 54% of the
population is in the 15-35 years age group. India consists of a dynamic and a growing
middle-class class which on a purchasing power parity basis is much larger than the
entire population of the US and a consumer credit market that is growing by more than
40% per annum.
11

Continuous increasing in capital expenditure by the government and private industry.
Significant opportunities in the largely untapped SME segment- which accounts for 40%
of the industrial output and 35% of India's direct exports
India's increasing and consistent growth. As per the CSO, the Indian economy grew by an
estimate of 7.4 per cent in the year 2012-13 and is expected to grow over 8 percent in the
coming months.
Growing investment avenues across all segments in the banking and financial services
sector.

GROWING POTENTIAL IN THE INDUSTRY
Demand for banking services is growing significantly, albeit in a country where less than
half of households have a bank account. It is in the retail sector that the surge in demand
is most marked. Housing loans grew by more than 50% and loans to the retail
commercial sector rose by more than 100%. According to the weekly statistical
supplement (WSS) of the Reserve Bank of India (RBI), Indian bank loans represented a
rise of 19.1 per cent as of June 4, 2013 while deposits were up 14.3 per cent from the
previous year. Furthermore, outstanding loans showed an increase from US$ 12.39 billion
to US$ 703.5 billion in the two weeks to June 4, 2013. The WSS reflected that bank
deposits rose by US$ 3.24 billion to US$ 975 billion in the two weeks to June 4. In 2009,
there were 21 IPOs that raised US$ 4.18 billion as compared to 36 IPOs in 2008 that
raised US$ 3.62 billion.
As per the statistics of RBI, aggregate deposits grew by 3.3% on q-o-q basis in quarter
ended June 10 as against 5.1% during the same period last year; reflecting the relatively
lower rates in term deposits.

12

NON-BANKING FINANCIAL COMPANIES
Non-banking financial companies (NBFCs) are fast emerging as an important segment of
the Indian financial system. It is an heterogeneous group of institutions (other than
commercial and co-operative banks) performing financial intermediation in a variety of
ways, like accepting deposits, making loans and advances, leasing, hire purchase, etc.
They raise funds from the public, directly or indirectly, and lend them to ultimate
spenders. They advance loans to the various wholesale and retail traders, small-scale
industries and self-employed persons.
NBFC are present in all competitive fields such as, vehicle financing, housing loans,
leasing, hire purchase and personal loans financing etc. NBFC's are not required to
maintain cash reserve ratio (CRR) and statutory liquid ratio (SLR). Priority sector lending
norm of 40% (of total advances) is not applicable to them. While this is at their
advantage, they do not have access to low cost demand deposits. As a result their cost of
funds is always high, resulting in thinner interest spread. But currently with surplus
liquidity in the system, the cost of funds for NBFC's has substantially eased thus
improving their margins. Gradually, they are being recognized as complementary to the
banking sector due to their customer-oriented services; simplified procedures; attractive
rates of return on deposits; flexibility and timeliness in meeting the credit needs of
specified sectors; etc.

13

INVESTMENT & FINANCE SECTOR ANALYSIS REPORT


The major Non Banking Financial Companies (NBFCs) in India have their
relative specializations, for e.g. HDFC (mortgage loans), IDFC (infrastructure
loans), Mahindra Finance, Power Finance Corporation (power financer) &
Shriram Transport Finance (auto loans). The trend of segmental monopoly is
changing as banks are entering long-term finance and FIs also meeting the
medium and short – term needs of the business masses



NBFCs' growth had been constrained due to lack of adequate capital. Going
forward, we believe capital infusion and leverage thereupon would catapult
NBFCs' growth in size and scale. A number of NBFCs have been issuing nonconvertible debentures (NCDs) in order to increase their balance sheet liquidity.
Also to address this purpose, especially in the infrastructure financing space, a
new category of NBFCs was formed called Infrastructure financing companies
(IFCs).



NBFCs are not required to maintain cash reserve ratio (CRR) and statutory liquid
ratio (SLR). Priority sector lending norm of 40% (of total advances) is also not
applicable for them. While this is to their advantage, they do not have access to
low-cost demand deposits. As a result their cost of funds is always high, resulting
in thinner interest spread. However, the regulatory arbitrage may soon change
between the two entities with the help of the Usha Thorat committee
recommendations, which call for stricter regulations in the space.

14

FINANCIAL YEAR’ 2014


FY14 proved to be a challenging year. The uneven political climate led to
stagnant economical scenario – thereby leading to lower infusion of investments
in to infrastructure and core industries – also leading to lower capital expenditure
and less job creation. The inflation remained on the higher side, thereby reducing
the disposable income and leading to lower consumer spends



It was also the most challenging year for the Indian commercial vehicles sector.
India's cycle-prone commercial vehicle industry is not new to downturns. Thus
the vehicle financiers too faced enormous challenges during the year.



Despite the overall slowdown in the economy, the demand for individual home
loans continued to remain strong. The demand for affordable housing remained
robust with increased growth coming from tier II and tier III cities. In an endeavor
to further support home loans, the Finance Act, 2013 provided a one-time benefit
of additional interest deduction up to Rs 1 lakh for first-time home buyers,
provided the loan amount and property cost did not exceed Rs 25 lakhs and Rs 40
lakhs respectively. This, coupled with the other fiscal benefits available on home
loans has helped reduce the effective rate of interest payable on a home loan.
Thus, overall, FY14 turned out to be a strong year in terms of home loan
disbursements for housing financiers.



During FY14 India continued to show a deceleration in growth with the GDP
growth rate at lower than 5 percent. The macroeconomic scenario was difficult
with a slowdown in the investment cycle, persistently high headline inflation and
a volatile currency and interest rates. The trend of declining private investment in
15

Infrastructure continued during the year. The issues faced by the infrastructure
sector are well known and the Government initiated some steps to reduce the
bottlenecks faced in project execution. And FY14 proved to be an equally
turbulent year for infrastructure financiers.


The Reserve Bank of India granted branch licenses to two NBFCs; namely, IDFC
and Bandhan Financial services to set bank in the private space.



The retail focused NBFCs witnessed a surge in asset quality issues during the
fiscal ended March and the troubles are likely to continue in FY15 as well. The
agency stated delinquencies due for over 180 days, after which the asset turns bad
as per the existing reporting guidelines, for the retail focused NBFCs increased to
1.9% for FY14 from 1.3% at the end of FY13. Going by the 90-day due rule,
which qualifies an asset as bad for commercial banks, delinquencies increased to
4.5% as of March 2014 as against 3.6% in the year-ago period.



The credit growth registered by retail focused NBFCs also declined massively
during the fiscal with such NBFCs reporting only 8% growth in advances as
against 19% rise in advances in the previous fiscal. A significant part of the
slowdown was due to de-growth in the commercial vehicle, construction
equipments and gold loan segments as reported by the agency.

16

OBJECTIVES OF THE STUDY


To know about the Indian finance industry.



To know about the Home Credit India Private Limited.



To know about the Home Credit India products and services.



To know about Home Credit India marketing strategies.



To know about the customer perception about the Home Credit India Pvt. Ltd.

17

SCOPE OF THE STUDY
In order to understand the concepts of logistics in terms of practical usage and to glimpse
in to the how real company or organization uses logistics as a formidable tool to gain
customer satisfaction, reduce overall cost and increase efficiency I selected “Pantaloons
Fashion & Retail Limited” the best retailing company of India. The study is done only
how Pantaloons Fashion & Retail Limited uses logistics system effectively. There are
following strength and weakness of Pantaloons Fashion & Retail Limited.

LIMITATIONS


This report incorporates sincere efforts to submit the best possible dossier on the
topic assigned because no study can be perfect. There are bound to be limitations
that I faced and within which I had to work.



The data used in most part of the report is primary data, it has inherent
discrepancy.



Some of the respondents were not completely aware of its products and track
record.



Report limited to Lucknow region only so it doesn’t resemble the whole state or
nation.

18

RESEARCH METHODOLOGY
Research

methodology is to discover answer to question through the Application of

scientific procedures the main aim of research is to find out the truth which is hidden and
which has not been discovered as yet. Marketing research is the careful analysis of a
business situation by scientifically analyzing it and using various statistical applications
to the subject of study.
Research is the process of finding a solution through the use of scientific tools and
techniques. Marketing research is a methodical and purposeful study conducted to obtain
solution for specific marketing problem.
As far as method is concerned, I preferred personal interview or face to face meeting to
ensure accurate information and encourage frank response to questions. At the same time
telephone or mail survey was not possible.
While framing the questionnaire, I tried to list a series of question, which could elicit the
needed information for proposed study. Questions, which were of no particular value for
the study objectives, were not included. I also tried to keep in mind the respondents’
understanding capacity, ability to recall the information and his experience limits. I didn’t
include those
Questions in the questionnaire, which could have raised misconception and promoted
non-cooperation on their part.
However in the questionnaire I used simple words, which were easy to understand, and
beyond any doubt. In the same way ambiguous questions were not included and questions
were arranged in a logical order.

19

RESESRCH INSTRUMENT
The research instruments generally used to collect primary data are questionnaires and
mechanical instrument. Some of these are;
Questionnaire:Questionnaire are formal sets of questions, prepare to collect the require information .this
is one of the most effective and popular technique used in survey. Questionnaire is a tool
which provides right information.
Sampling:Proper sampling design is essential in marketing research so the sample has to be
collecting in such a way that it represents the entire population. Sample size has taken of
100.
Collecting of data:In dealing with customers it is often found that data, at hand are inadequate, and hence it
became necessary to collect data that are appropriate and adequate. There are two way of
collecting the appropriate data:1. By observation:
This method implies the collection of information by investigator’s own observation,
without interviewing the respondents’ .In survey many times I observed that is what
the reason to damages and shortage of goods are.
.Personal interview:
I have also collected my data through Personal interview. I made a well structured
questionnaire and asked them what the reason of damages and shortages are.

20

Secondary data:
Secondary data is collected from the company internal and external resources. While the
internal resources include the company literature, sales report, broachers, pamphlets etc.
and the external sources could be included magazines, newspaper etc.
Research type:My project based on supply chain and damages and shortage so I am taking interview and
informative research. The main advantages of this research that I have no control over
the variable. I have done my project in Pantaloons Store, Lucknow warehouse.
Sampling method:In my survey I have used deliberate sampling. This sampling method involves purposive
or deliberate selection of a particular unit of the universe. It can also be known as
convenience sampling.

21

CHAPTER II

22

COMPANY DETAILS
HOME CREDIT INDIA PRIVATE LIMITED
Founded in 1997, Home Credit Group
has established itself as an emerging
markets

specialist

in

consumer

finance, entering attractive and high
growth

markets

ahead

of

its

competitors.
Continuing the successful development of the business in Europe (the Czech Republic,
Slovakia, Russia, Belarus and Kazakhstan), Home Credit expanded into Asia in 2007 and
has operations in China, Vietnam, Indonesia, Philippines and in India.


Consumer finance expert



Operations across 10 countries



35 million customers



125,006 distribution points



44,800 employees

23

HOME CREDIT INDIA AT A GLANCE
Home Credit Group is a global player in
consumer finance with a prominent presence
across Central and Eastern Europe (CEE), the
Commonwealth of Independent States (CIS: the
former Soviet Union) and Asia.
In line with our strategic growth plans, Home
Credit launched operations in India in 2012.
From our headquarters in Gurgaon, our Indian
journey started in the nation's capital New Delhi and the surrounding National Capital
Region (NCR) with the aim of expanding into other regions of India in the future.
Our offering primarily consists of providing in-store financing (direct non-cash loans in
retail outlets) to qualified customers looking to purchase consumer durable goods such as
home appliances, electronic goods, mobile phones and motorbikes. As we broaden our
distribution network, our range of product offerings will expand.
India is one of the most promising and fast-growing countries with the second largest
population in the world. The country provides Home Credit with outstanding business
opportunities and is a welcome addition to Home Credit's global portfolio.
COMPANY BACKGROUND
Home Credit India is a consumer finance company operating in India via the "Home
Credit India Finance Private Limited" (HCIFPL) corporation.
Registered & Corporate Office: 3rd floor, Tower C, Infinity towers, DLF phase 2,
Gurgaon, Haryana - 122 002, India.

24

HOME CREDIT GROUP AND PPF GROUP
Home Credit Group is a leading global
consumer

finance

provider

with

a

prominent presence and leading market
share positions across Europe and Asia.
We are focused on providing affordable,
flexible, simple and convenient loans to
consumers through our advanced loan
processing system.
We have proven our reputation as a pioneer over time by successfully entering
underpenetrated emerging markets and scaling up our operations to realise their true
growth potential. In less than fifteen years, the business has grown organically and
expanded across eight countries, gaining more than 35 million customers, 125,006
distribution points, and now has 44,800 employees (as of 30 June 2013). Our 5,791
employees in Asia have already served a total number of 1.8 million customers (as of 31
December 2011).

OWNER
Home Credit B.V. is owned by PPF Group N.V.,with an 86.6% stake and EMMA
OMEGA LTD, an investment holding company ultimately owned by Mr. Jiří Šmejc, with
a 13.4% stake.
PPF Group N.V. is one of the largest investment and finance groups in Central and
Eastern Europe (CEE). PPF was founded by Mr. Petr Kellner, a prominent and successful
Czech entrepreneur, who remains the major shareholder. With EUR 21.5 billion of assets
25

under management (as of 31 December 2012), PPF's business investments range across a
variety of sectors, with a focus on banking and finance. PPF's reach spans across the CEE
and Russia to Asia.

CORE BUSINESS
Home Credit's core business is to provide consumer finance lending to qualified mass
market customers, often first-time borrowers. Our comprehensive presence across each of
our markets consists primarily of in-store financing, i.e., non-collateralised, non-cash
loans primarily to customers seeking purchases of durable goods, and we provide this
service directly in the shops through our branded "point-of-sales" outlets. This localised
approach means that we have an efficient and flexible distribution model as these POS
outlets are supported by close cooperation with various local payment channels including
automated payment machines, post offices and cash kiosks, and complemented by our
own branches in some markets (Russia, Kazakhstan, Belarus). In selected markets, we
also provide cash loans, credit cards and retail banking services such as, deposits or
current accounts.

CENTRAL RISK MANAGEMENT AT HOME CREDIT
Home Credit's central risk management approach is vital to this ability to build
businesses in different countries successfully. Having created a sophisticated risk
management system tailored to the specifics of CIS and Asian countries, Home Credit's
prudent underwriting is applicable in any new country. These centrally adapted
proprietary models incorporate the wealth of experience gained from multiple countries
and include Home Credit's own set of stringent scoring and verification methods as well

26

as best practice fraud prevention. Furthermore they are supported by a centralised IT
management system that ensures effectiveness and efficiency.

OUR ETHOS
Our success is backed by the highest standards of business practice in our dealings with
customers, employees, investors and other stakeholders. We also look after our chosen
retailers through dedicated support, extensive marketing assistance and training. In each
country, we have an internationally experienced management team and we endeavour to
share best practice across the Group to improve our customer service and to grow the
businesses.

27

VISION AND VALUES
At Home Credit, our vision is to be a leading provider of consumer finance services for
our customers in the markets in which we operate, measured by our business practices,
sales, long-term profitability, sustainable growth and corporate reputation.
We aim to create and develop strong relationships with our customers, distribution
networks and agents as well as offer valuable career opportunities for our employees who
are central to the success of our business.
We endeavour to establish, maintain, and promote high standards of business practice in
all our dealings with customers, employees, investors and other stakeholders. This means
acting with responsibility and integrity; complying with applicable laws and regulations;
applying internationally accepted standards of responsible business conduct to our
operations; and respecting the traditions and cultures of the communities and countries in
which we operate.
In order to achieve this vision, our business conduct is based on the following values:
Combining customer focus with financial discipline
One of Home Credit's key strengths is the extensive knowledge we have of our
customers, combined with our expertise of local markets. Our goal is to provide our
customers with high quality service and convenient access to credit as and when they
need it, while ensuring that Home Credit observes the highest standards of financial
discipline and stability in order to maintain profitable growth.

28

WORLD-CLASS RISK MANAGEMENT
Home Credit employs a world-class risk management system and operates a fullyautomated underwriting system with a highly effective anti-fraud tool that is backed by
our strong IT systems. The importance of maintaining close relationships with our
customers is integral to providing loans to them. Effective risk management combined
with our unique ability to optimise risk on a large scale enable Home Credit to stand out
from industry peers.
PROFICIENT CENTRALISED IT PLATFORM
Home Credit has developed a fully centralised, efficient IT platform, representing a key
competitive advantage for our business. Offering scalability and flexibility, the
centralised IT platform is uniquely tailored to mass market operations in different
emerging markets. The centralisation of certain key business functions, e.g. risk
management, finance, and IT, helps to increase the efficiency of our operations, and
facilitates the sharing of best practice knowledge and expertise across Home Credit's
markets.
COMPETENT MANAGEMENT
Everywhere we operate, we aim to develop and encourage the values and principles that
are the foundation of our business success: innovation, entrepreneurship, creativity,
financial discipline, and a global perspective. This is why our greatest asset is our people:
led by a successful and experienced management team, enriched with immeasurable
consumer finance and business expertise and a steadfast commitment to deliver.

29

MANAGEMENT
Our people are key to the success of our business and the backbone of our localised
approach and it is a crucial component of Home Credit's values to ensure our employees
progress within the company and to share innovation and best practice across the group.
Our local management team receives broad support from the experts at the global Home
Credit headquarters and this is the team that we believe will be successful in growing the
business in India through their experience and expertise:
Pavel Maco-CEO
Chief Executive Officer
Pavel Maco joined Home Credit Bank, Kazakhstan as Chief
Financial Officer in 2009 and was appointed as Chief Executive
Officer in July 2010. He was appointed as CEO in India in Oct
2013. Prior to joining Home Credit Group, he spent a year at VAB BANK, Kiev, Ukraine
as CFO and Deputy Chairman of the Board of Directors, where he was responsible for
the financial management of the bank, with a primary focus on cost control. He
previously spent ten years at GE Consumer Finance, based in the Czech Republic, Ireland
and Russia in senior roles focused on finance and operations management.
Mr. Maco studied Industrial Electronics at Novosibirsk State University, Novosibirsk,
Russia and also holds an MSc in Accounting and Systems Engineering from Czech
Technical University, Prague and an MBA in Finance and General Management from the
University of Pittsburgh's Katz School of Business in the U.S.

30

Magdolna Juridesz
Chief Financial Officer
Magdolna Juridesz joined Home Credit in 2015 with over two
decades of experience across financial services and consulting. At
Home Credit India, she is Chief Financial Officer responsible for
financial planning and analysis, accounting, procurement and treasury functions. Prior to
Home Credit, Magdolna was Chief Financial Officer of CIB Bank (Intesasanpaolo),
Hungary, responsible for 21 entities of the banking group including accounting, taxation,
financial controlling, procurement and economists. In the past she has also worked with
Citibank Hungary as Vice-President, Strategic Projects and Planning where she managed
a wide variety of strategic projects for the CEO and was a member of the bank's
Management Committee. Magdolna has also served as Chief Financial Officer of
Hungarian

Post

Insurance

Companies.

Prior

to

that

she

worked

with

PricewaterhouseCoopers and began her career with Arthur Andersen. She has a Masters'
degree in Economic Sciences from the Budapest University of Economics.
Vlastimil Hrabal
Chief Sales Officer
Vlastimil joined the Home Credit Group in 2012. Over the last
eight years, he has worked in internationally renowned insurance
companies where he managed projects in Operations and Sales.
For the past two years with Home Credit India, Vlastimil has led the Operations
department transforming it into a well-oiled engine. He leads the Sales network across the
country today and holds a Masters degree from the University of Economics, Prague.

31

Manu Pal
Chief Strategy and Marketing Officer
A Chartered Accountant by qualification, Mr. Pal has amassed a
rich career spanning over 15 years in various sectors including
Retail Banking, Commercial Finance, Insurance and Healthcare in
both mature and emerging economies. He is responsible to establish the Marketing
function for the India business. His scope encompasses Marketing, Market Strategy,
Market

Research,

Branding,

Cross

Sell,

Product

Management

and

PR

&

Communications. Prior to this, he successfully built the Sales network for India
Operations. Before that he also served as the interim CMO and Head of Customer
Relationship Management with GE Money Bank and was responsible for managing the
integrated Customer Relationship Management (CRM) segment, encompassing direct
marketing, lifecycle management, channel management, customer analytics and related
technology infrastructure across the Personal and Commercial banking, Sales Finance
and Auto product segments in the Czech Republic
Tomas Dudasko
Chief Operations Officer
Tomas has been working with the Home Credit Group for over six
years, and has worked at the global Home Credit IT Centre in the
Czech Republic as well as lead the IT team in India. Over the
years, he has been responsible for rolling out projects across geographies such as Czech
Republic, Egypt and India. As Chief Operations Officer at Home Credit India, Tomas is
responsible for the Client verification process, Customer Care, Registration team and

32

Payment channels. Tomas graduated from Masaryk University, Brno, with a degree in
Computer Science and Mathematics.
Vijay Dhingra
Head of Legal
Vijay brings along a varied experience of over 12 years in the
fields of Corporate Governance, Compliances and Legal affairs of
the Company. His last assignment was with GE Capital Services
India where as part of Legal & Secretarial Team responsible for compliances and legal
matter of the Company. He was also associated with entities like HSBC and IFCI Factors
wherein he was involved in setting up compliance structures and filing of offer
documents with SEBI. Vijay is Law Graduate and Associate member of Institute of
Company Secretary of India.
Manish Kaushik
Head of Security
Manish Kaushik who joined Home Credit India in August 2013
with a rich experience of over 16 years in Security & Fraud Risk
Management, fraud frameworks & policy, fraud prevention
systems & strategy, prevention detection & major investigations - internal & external
obtained within multiple product portfolios & channels.
He has successfully achieved lowest loss ratio in the industry, In his previous company
"SBI Cards" his team was awarded as the best Fraud Control team and was given Leaders
Award

by

VISA in

2013

for

having

best

in

class

Fraud

Management.

Manish is the Chairman of Industry Forum for Fraud Prevention (IPCRC -North India)

33

and is Guest Speaker/Faculty for Fraud Conferences and Police Training Academies ,He
also has the distinction of having worked for sales of products like Auto Loans, Personal
Loans, Automobiles, Consumer durable and various financial products. He has managed
wing to wing sourcing and approval processes for various retail assets therefore has a 360
degree view of challenges faced by the sales team and the fraud control teams in a
competitive environment.
He is a valuable asset for us on our way towards achieving operational efficiency and
minimizing any potential losses.
Milan Urbasek
Chief Roll Out Officer
Milan has been working with the Home Credit Group for over
four years and currently leads the Roll Out team. A seasoned
professional, he worked, as Manager of Business Applications
unit and later as Director of Quality Management at Home Credit Bank in Kazakhstan .
During his career with Home Credit, Milan has been responsible for project Management,
Process Management, development and support of customized SW. Before joining Home
Credit, Milan had experience of 9 years with organizations like Adastra s.r.o, and
Aquasoft spol. s.r.o. He is a trained Six Sigma expert and holds Ph.D. Degree in
Informatics from Technical University, Berlin, Germany.
Petr Jirat
Chief Risk Officer
Petr has joined Home Credit in 2013 as Chief Risk Officer. In his
10 years of track record, he has done fraud management and risk

34

management in international corporations such as The Royal Bank of Scotland and
ERSTE Group. His carrier covers various projects in Risk and Fraud optimization and
implementation. During his tenure with ERSTE Group he was responsible for Portfolio
analysis and monitoring, Credit line increase strategy, Credit risk policy and collection
strategy. Petr has done Master of Science from University of Economics, faculty of
international relations, Prague, Czech Republic.
Vishal Chopra
Head of Human Resources
A Graduate in Foreign Trade from Delhi University & a Post
Graduate in HR from BVIMR, Pune, Vishal has accumulated
experience of over 13 years in all facets of HRM / HRD in
various sectors including BFSI, IT / ITES & B2B eCommerce. During his journey in the
Corporate World Vishal has taken many challenging assignments like helping the
Organizations in Ramping-up at a very fast pace, devising Talent Acquisition processes to
hire Right Talent, building Organization's capability by developing Internal Talent,
fostering Organization change & alignment of HR Practices with Business Objectives by
deploying PCMM Framework to name the few. In his last assignment at Indiamart
Intermesh Ltd. (India's No. 1 B2B Online Platform) he was responsible to Hire / Build
Talent across India (21 Cities) & own all the Processes related to Talent Acquisition.

35

Martina Kadeřábková
Chief Quality Management Officer
Martina has over a decade of experience in project management,
Business Process management and strategy. With the Home Credit
Group for over a year, Martina heads the Quality Management
team where she leads projects that aim to make business processes more efficient and
effective. Prior to Home Credit, Martina worked as a Business Consultant with Greyson
Consulting as well as with GE Money Bank in the Czech Republic. She holds a Master's
Degree from the University of Economics, Prague, Czech Republic.
Tomáš Paukner
Chief IT Officer
With more than 14 years' of experience in Data Centre
Management, Risk management, Facility Management, GSM and
ICT systems migrations, integration, space diversity solution.
Tomas leads the Information Technology team at Home Credit India. Prior to Home
Credit, he worked at GTS Central Europe, Home Credit China and Vodafone. Tomas
holds a Diploma in Power Engineering from Czech Technical University Prague, Czech
Republic.

36

CODES AND POLICIES
Through our business, we provide consumer finance products and services to more than
35 million customers across Europe and Asia.
In so doing, we aim to uphold our reputation for acting responsibly and with integrity,
respecting the laws and regulations, traditions and cultures of the countries within which
we operate, as well as internationally accepted standards of responsible business conduct.
Home Credit requires international standards of professional and ethical conduct of itself
and from all employees and other persons acting on behalf of the Group. In particular, the
Group's senior management has a special responsibility to lead according to these
standards.

View our policies below:

Happiness Express - Lucky Draw Terms & Conditions



Corporate Governance Policy



Fair Practice Code



Grievance Redressal Policy



General Terms and Conditions of Loan from Home Credit India Finance Private
Limited



Interest Rate Policy
37



Code of Business Conduct and Ethics and vigil mechanism

38

PRODUCT LINE: LOANS
Do you have your eye on a new mobile phone, laptop or television? Perhaps you need a
new motorbike? Home Credit makes these items not just affordable, but easy to buy, by
offering in-store financing for products such as electronic goods, laptops, mobile phones
and motorbikes.
Home Credit India provides loan service directly to customers who are making purchases
in-store through our branded "point-of-sales" outlets. The service is straightforward and
uncomplicated with simple document requirements and a speedy application process. In
certain cases, your loan may be approved on the spot, making it possible that you leave
the store with your new purchase, straight away.
FEATURES AND BENEFITS
What is a loan and why should I take one out?
If you are buying an electronic or household item, or a motorcycle or scooter and you
want to spread the payments, then a loan can help you do this and make your purchase,
more affordable. Rather than paying for the item upfront, you can pay for the item in
monthly instalments over a fixed period of time. Home Credit loans, available directly in
store, offer a fast and easy application process and enable you to take ownership of your
item, straight away and pay for it later.
What are the benefits of a Home Credit loan?


Loans are available in-store at the time of purchase: Just look for the Home Credit
logo



Minimum documentation needed to apply: In most cases two documents to prove
identity and income is all that's needed
39



Fast and easy processing with approval received on the spot (in certain
cases): You can leave the store with your purchase, then and there



Affordable advance EMIs and monthly payments: Flexible payment options and
term length to suit your budget



Numerous repayment options: Various modes of repayment options like ECS,
direct debit, online fund transfers, payments through authorised kiosks/bank
branches to choose from, giving you peace of mind and saving your valuable time



Clear terms and conditions: All terms and conditions, including fees and
penalties, are clearly explained at the time of submitting loan application. There
are no hidden fees/charges.

ELIGIBILITY AND DOCUMENTS
To be eligible for an in-store loan you must:


Be an Indian National



Be more than 19 years old



Have a source of income (salary, business, pension)



Reside in the same business area in which the loan is being applied



Have two pieces of valid documentation to prove your identity and current
address

Documentation requirements:
At least two documents are required. If a single document can prove both, identity and
address, then a secondary identity document is needed for a successful application. Proof
of identity and address must be issued by any authority under Government of India in the
applicant's name and must not be expired.
40

Proof of identity can include: Pan Card/Voter's ID Card/Passport/Driving License
Proof of address can include: Voter ID card/Passport/Driving License/*Latest 2 months
electricity bills/*Latest 2 months telephone bills/Latest 2 months mobile bills/Latest 2
months credit card statements/Last 3 months bank statements/*Ration Card/Rent
Agreement/ Property Registration Deed
*These documents can be in the name of an immediate family member with whom the
applicant is living, but must still be of the current residence address of such immediate
family member.
For certain purchases, proof of income may be required.
For salaried customers: Salary slips from the last two months/Bank statements from the
last three months showing salary income/Pension certificate along with bank statements
from the last three months showing pension income
For self employed customers: Bank statements from the last three months/Most recent
income tax return assessment
Additional documents accepted as proof of income for certain purchases, across customer
categories are: Credit Card/Car registration certificate (not including company
cars)/Proof of house ownership.

41

LOAN PARAMETERS
CONSUMER DURABLE LOAN

Mobile

Min & max amount
4,000-50,000 INR

Laptop

9,000-60,000 INR

Home appliance

6,000-80,000 INR
Min & max term

Mobile

9-15 months

Laptop

9-24 months

Home appliance

9-24 months
Min. cash payment

Mobile

35%

Laptop

35%

Home appliance

25%

Origination fee
0% - 5% of loan amount
Monthly servicing fee

Upto 200 INR

TWO WHEELER LOAN
Minimum & Maximum loan amount
Minimum & Maximum term
Hypothecation
Minimum advance EMI
Processing fee

20,000-120,000 INR
9-36 months
Yes
25 %
0% - 4 % of loan amount

42

HOW IT WORKS
Home Credit offers "point-of-sales" services to customers in stores to enable them to buy
goods such as electronic items and mobile phones, without the need to search around for
financing.
A loan application is made in the store with minimum documentation and sent
immediately for approval. Approval is received on the spot enabling the customer to
leave the store with his or her new purchase, then and there. The customer repays the loan
on monthly basis directly to Home Credit.
For customers, the service is simple. The customer applies on the spot and gets the goods
very quickly.



The customer makes a credit application in the shop through Home Credit sales
agent/representative: there are simple document requirements, no credit card is
needed

43



The application is submitted to Home Credit for processing ...



and notification is sent directly back once the application is evaluated



The customer leaves the shop with the item ...



... and Home Credit makes the payment for the item to the shop upon submitting
all the customer's contractual documents



The customer pays for the item by monthly instalments to Home Credit

LOAN REPAYMENT OPTION
Customers can pay us through the following repayment channels:
Repayment Option 1: ECS Debit (Electronic Clearing Service)
Repayment Option 2: Online Fund Transfer (From any bank)
Repayment Option 3: Cash Payment

44

COMPETITORS
Competition in consumer durable and auto loan sector increasing with time as many new
industry players emerging in market. Few of Home Credit India competitors given
below:

Bajaj Finance



SBI Loans



Capital First



HDFC Loans

45

CHAPTER III

46

LEARNING EXPERIENCE
The opportunity to work with the company given by the company officials was very
helpful to me. I got to meet many players in the marketing and sales field and discussed
business with them which helped me to improve my communication as well as marketing
skills.
Apart from this i was able to understand the real scenario of the market and how things
really work in the market. This made me taste the real flavors of working environment,
work pressures, target achievements and other necessary skills required to be a good
manager.
 From this study I got to know the automobile sector from inside and also came to


know about the many industry players and competition amongst them.
I also got a firsthand experience of conducting marketing research and the issues



involved with it.
I also gained knowledge about the retail store- training given by the company
about the outward and inward process.

47

DATA ANALYSIS
1. Could newcomers in the Retail Industry create damaging competition for Pantaloon?
Yes

40%

No

60%

48

Interpretation: Most respondents don’t think that Newcomers can create damaging
competition to the PANTALOONS.

49

2. Is there an equally powerful force as Pantaloon in the market who can muscle into our
territory?
Yes

60%

No

40%

Interpretation: Most respondent believe that there is other retail player which equally
powerful as the Pantaloon in market.

50

3. Are there other kinds of differentiators of other companies which could take away
Pantaloon top position in the market?
Yes

50%

No

50%

Interpretation: Respondents are divided at question of any threat to Pantaloon’s top
position.

51

4. Does Pantaloon have any weaknesses compared to the competition in a key market
segment?
Yes

20%

No

80%

Interpretation: Most respondents think that Pantaloon has not any weakness compared
to competitors.

52

5. Is the market developing in ways that favour competitors more than Pantaloon?
Yes

30%

No

70%

Interpretation: Respondents don’t think that developing market anyhow favoring to the
competitors.

53

6. Could Pantaloon customers possibly move away and take major sources of revenue
away to a competitor?
Yes

32%

No

68%

Interpretation: Respondents don’t think that pantaloon customers will move away.

54

7. Is there a major area in the market where Pantaloon lags rather than leads?
Yes

44%

No

56%

Interpretation: Most of the Respondents don’t think that Pantaloons lags rather than
lead.

55

8. Does any competitor have a stronger hold on Pantaloon biggest customers?
Yes

40%

No

60%

Interpretation: Respondents don’t think that any competitor has stronger hold on
Pantaloon Customers.

56

9.

Are there environmental/regulatory threats?
Yes

20%

No

80%

Interpretation: Most of the respondents don’t think that there is any environmental or
regulatory threat to Pantaloon.

57

10. Could unsuspected challenges arrive from outside the existing industry?
Yes

52%

No

48%

Interpretation: Respondents are almost divided on question of unexpected challenges
arrive from outside the existing industry.

58

FINDINGS


It was finding that Newcomers cannot create damaging competition to the
PANTALOONS.



There is other retail player which equally powerful as the Pantaloon in market.



Respondents are divided at question of any threat to Pantaloon’s top position.



Pantaloon has not any weakness compared to competitors.



Developing market anyhow not favoring to the competitors.



Respondents don’t think that pantaloon customers will move away.



Most of the Respondents don’t think that Pantaloons lags rather than lead.



Respondents don’t think that any competitor has stronger hold on Pantaloon
Customers.



Most of the respondents don’t think that there is any environmental or regulatory
threat to Pantaloon.



Respondents are almost divided on question of unexpected challenges arrive from
outside the existing industry.

59

CHAPTER IV

60

SUGGESTIONS AND RECOMMENDATIONS
A. FOR Shortages & Damages in Warehouse
Shortages & Damages in Warehouse
1. Shortage against PO:
Vendor/supplier sends stock only after they received Purchase Order from category team
or from the store according to the quantity that is demanded in the PO but sometimes
category team or store wants that stock mentioned in PO is not seen din bulk by the
vendor they instruct vendor that stock is send in 2 or 3 consignment because of the space
constraints so it is easy for WH and store to hold the stock. But this is not the problem the
real problem starts when WH and stores want full stock mentioned in PO but vendor does
not supply complete stock. When this situation arise then there is a shortage in the WH
and it is not able to fulfill the demand of the different stores and ultimately there is a
shortage in the stores and customer not find the required product in the stores.
Suggestions:
This problem is very critical and some of the possible solutions for this problem are that
the management applies deduction management techniques for solving this problem. If
any vendor is not able to fulfill our demands then company must deduct some amount
from the bill of retailer as a penalty for not fulfilling the demand. Company selects
minimum two vendors for any specific category of product so that if any vendor is not
able to fulfill the demand then we may switch to another one. Company should mention
clearly the terms about deduction and return in the agreement held with the vendor.

61

2. Shortage due to theft during transportation:
When WH get stock from supplier then the first thing that is done after documents
check is counting of stock and this is most important because most of the time the actual
quantity does not meet with the quantity mentioned in the invoice (bill) and there are
various reasons for this difference like sometimes there is a counting mistakes during
packing of stock at vendor site but the most critical problem is theft during transportation
by drivers and when stock reach to the WH/stores then there is discrepancy in the stock.
As company is not responsible of this loss this is the problem of vendor and his
transporter company does not borrow that loss the real loss of company is only in terms
of shortage that occurs due to theft.
Suggestions:
Many times it is happen that counting of stock is not done just after unloading of stock it
is done some time after so if there is a shortage in stock then it is hard to convince the
vendor on this issue because vendor sends the right quantity but we don’t get the qty.
according to invoice so to eliminate these kinds of issues counting must be done at the
same time and a note is write on the vendor copy of bill so that vendor know that we get
less quantity. Security must check at the time of unloading that cartons are in good
condition and if there is any damage in cartons then security staff must note it.
3. Damages during transportation from vendor to warehouse:
We all know the condition of Indian transportation and about the worst condition of
Indian roads. Roads are not only the problem drivers are also the create problems many
times because they do not take their work seriously and alcohol is the major problem of
Indian drivers and sometimes it is very dangerous for the stock they carry and also for

62

many lives. If we talk about only roads then many times the stock get damaged due to
bad condition of roads and it is very hard to transport breakable items like glass and
crockery items and in addition to this if drivers do not drive carefully then it also increase
the chances of damage.
Suggestions:
When stock comes from vendor to WH and during this journey if any stock is damaged
then it is totally the liability of vendor but we must see that the stock which we get in the
WH is good in condition so we must check the stock properly and if any damaged is
found in the stock we send it back to the vendor as soon as possible because if we inform
them late then vendor think that damages occurs in the WH. We instruct our vendors that
stock is packed properly.
4. Shortage due to unavailability of finding material in Warehouse:
When stock comes in the store it first entered in the SAP and a GRN is made and after
that every one in the company sees the stock level in the warehouse through SAP. Stores
raise STN after see the stock level in the warehouse through SAP but there is also a
problem because when WH get stock transfer order from stores then a pick list is made
and employee pick stock from the warehouse according to that list. Employee pick stock
according to the article code print on the pick list they just go in the respective section
and find the mentioned article code which print on
the bar code attached with article but sometimes employee does not find some articles
mentioned on pick list in warehouse. There are many reasons for this problem either
because article is not placed at its proper location during inwarding or due to wrong entry

63

in the SAP during inwarding and this creates shortage in stores because WH is not able to
meet the demand of store.
Suggestions:
To solve this problem first we must train our employee about the method according to
which we put the stock in the racks and also tell them where is the particular category is
placed and try that the employee who put the merchandise in any section in the WH is
responsible for picking merchandise from that section only. We must use Bin cards in the
WH as they are not used in many When Article No. is properly printed on the bar code
tags.
5. Damages in the Warehouse:
Warehouses are made because it is hard to for stores to carry much stock because stores
are located in areas of very high property rents and every Sq. ft. of land is very costly and
company try to maximize the usage of this area and it is very hard to transfer stock from
different vendors to different stores and that is the reason for develop warehouses and
storage is one of the main function of WH so better storage is very essential for WH but
damages are also happens in WH. When stock is unloaded from the vehicle then it is very
essential to unload the stock very carefully but due to mistakes of employee sometimes
stock get damaged due to poor handling. Other problem is with the storage because if the
stock is not store properly in the right place then damages also occurs like if put
something on glass items or if we stake the stock very high and during handling it stock
may fall and it may damage. Handling stock inside the store is also a tough job if proper
conveyors are not available in the WH then it is very hard to handle the stock carefully.

64

Suggestions:
For handling damages in the warehouse the fist important thing is that company must
provide proper conveyors to the WH. Other thing is that the breakable items must not be
put near to the aisles like sanitary items, glass items and gift items etc and heavy items
like furniture and consumer durable must put near to exit gate of WH. Proper instruction
are also given on how to handle different type of stock and inform our vendors that they
must print proper information about which type of stock is in any carton and in spite of
writing we use signs for instruction.
6. Damages due to improper packaging
If we want to transfer any thing from one place to another then first and foremost
thing that you require is proper packaging without which no product is safe. So while
transporting goods from vendor to WH or from WH to store proper packaging is must but
due to lack of knowledge about the packaging in employees there is always risk of
damage. Employees in the WH does not use proper material used for packaging like
thermocol, proper size of cartons and proper packed it with tape so because of this there
is more risk of damage in loosely packed items
Suggestions:
I see that many of the employees do not know how to packed the stock and they take
carton of any size and put the merchandise in it and in this way it is completely the
wastage of cartons and stock is also not properly packed, so we must train our employee
about how to pack the different type of stock so that they do not pack stock loosely and
use proper type of carton this also take less space and less risk of damage.

65

7. Damages during transportation from warehouse to store:
We study how the damages occurs during transportation from vendor to WH in the 3
point above but those damages are very different from the damages occurs when we
transport stock from WH to store because when damages occurs during vendor to WH
then financially it is total loss of vendor but when stock is moved from WH to store then
our transporter is responsible for that and according to terms and condition transporter
pay for these damages but many times damages occurs due to bad packaging and proper
packaging is responsibility of WH employees but in some places Pantaloons outsource
the work of logistics to third party Indo Arya.
Suggestions:
From getting rid of these kinds of problem proper packaging is must and driver must
have a good in driving and as pantaloons transportation business is taken care by Indo
Arya so it is not the problem for pantaloon and all the damages that occur during
transportation Indo Arya is responsible.
8. Shortage due to wrong documentation:
We see so many causes of shortages and damages from warehouse point of view but this
last reason of shortage is very different from all of the above because in this case if we
make any mistake then it is complete loss of inventory loaded in a vehicle not just some
item shortage or damage this is happens when our employees make any mistakes in
documentation then there are chances that sales tax department seize the stock because of
improper documentation. If any employee dispatch stock without waybill or OC stamp
then it is against sales tax rules and it is illegal so if there is no OC stamp or waybill in
the WH then employee not dispatch the stock for stores and there may be shortage of

66

stock in stores. I see this in dare WH when there is no OC stamp in the WH and because
of this no out warding is done from the WH.
Suggestions:
Company must provide the proper documents, which are required for dispatch of stock
from WH, on time and instruct the WH that no stock should be dispatch without the
proper documentation.
OTHER RECOMMENDATIONS
1. In warehouse there must be clear distinction between the rows and some space is also
be there for easy handling of material.
2. A first in first out format is used to move stock out from the warehouse so that old
stock is not remaining in the warehouse.
3. Company instructs the vendors of Apparel category that they pack the shirts and
trousers in polycovers of better quality so that they are not comes out from the cover.
4. Vendors must see that bar codes are properly attached to the product because if bar
codes are not attached with product employees are not able to enter that item in SAP in
most of the cases.
5. If WH employee enter any article in SAP which is without bar code by see its article
code on other article of same type then he must put bar code on the product latter so that
same problem does not occur in the store.
6. WH must instruct employees that they open cartons of stock properly so that is used
again because most of the cartons get damaged employee do not open them properly.

67

B. For Shortages & Damages in Stores
SHORTAGES & DAMAGES IN STORES
Shortages and damages of the stores is very much different from the shortage and
damages of the warehouses because if there is any shortage for any merchandise then
customer for which we taken so much precaution is not able to find that merchandise in
the store so whatever steps we take to remove shortages from our system and we are not
able in fulfilling the demand of our customer then it is the failure of our system. In case
of warehouse we only know that we less quantity of that merchandise but customer does
not know that and when customer come for shopping in our store and we are able to meet
the demand of customer then we say that we are successful. Damages in the stores are
also very different because we can not hold the damage stock for a long period of time in
our store because of the space problem and we also check the shelves of the store on the
regular basis so that no damage/defective or expired date product placed in the shelves.
The various reasons of store level shortages and damages are discussed in this section:
1. Damages due to customers:
when shelves replenishment is done by store employees then many times they do not put
the merchandise at the right place and due to which it is easily damage when any
customer even touched with it. Many times we see that children take the merchandise
from the shelf and damage it and in most of the cases children take out the food items
from the shelves like soft drinks, biscuits, snacks etc. If children eat these items in the
stores and the packets are not reach up to the billing counter then it is complete loss but if
parents take empty packets or half filled packets to the billing counter and they pay for it

68

then it is not a problem. In cases when any merchandise damage due to the mishandling
of costumer and even then they are not ready to pay for that then it also a loss.
Suggestions:
The possible solutions for this problem are that the employees pay attention during
placing merchandise in the shelves. They must see that no merchandise is put outside the
shelf; no merchandise is put here and there in the store. For handling the damages occurs
due to children store must take care that they put food stuffs at some height so that
children do not touch easily. Proper paging is also done in stores for prevent the children
from damaging the merchandise. If any merchandise damaged by customer then
salesperson try to convince the customer for paying the charges for that and if customer is
not ready for that then staff must not force them.
2. Shortage due to uncertainty in demand:
“Uncertainty is the mother of inventory and father of stock out”
Uncertainty is the most common reason of stock out because when store order for the
stock then they consider only the normal demand but in many cases the demand get
increased and the store is not capable in dealing with such situation so there is shortage
like in case of big days there is shortage of many items.
Suggestions:
Department managers must consider the past demand in case of special discount days.
Before placing the order DM not only consider only one week sell they must see the
demand of the last season also and see the offers of the competitors in that reason.

69

3. Shortage due to theft (shrinkage):
Shrinkage is the most common problems for the retailers worldwide and theft is the cause
of both shortage and financial loss. Theft is mostly occurs in the items which are easily
comes in the pocket of customer and it of high price value like valet, sunglasses etc.
Suggestions:
For prevent the theft from the store security tags are the best options. Store must put the
security tags on the product according to its requirement like soft tags, hard tags etc. and
especially in case of high price products. Products like watches, sunglasses and valets
must put inside the glass counters. Salesmen and security pay special attention on the
customers on which they have doubts.
4. Shortage due to wrong allocation of stock by category team:
I have seen that the allocation of stock which is done by category team from the WH is
not done after seeing the requirement of that store and its location category team just
distribute the stock according to the availability of stock in warehouse and the price of
the merchandise due to which shortages occurs.
Suggestions:
Before allocating the stock to the stores category team must concerned with the store
team and allocation is done is done according to the requirement of stores.

70

Other recommendations for store level shortages and damages that I like to provide
in this report are as follows:
1. Stock must be transferred to the shelves in time that is before afternoon so that
customers do not feel problem.
2. If there is shortage for any item then any other stock placed in that shelf or if some
merchandise is present in that shelf then we must put these items like that the shelf does
not look empty.
3. Before placing any merchandise in shelves responsible person must see that the
merchandise and if any offer with it is properly entered in the REM so that it do not
create any problem when customer comes for billing of that item because I see in many
cases that offers on the products are not entered properly in the REM and due to which
many times store is not able to provide that item to customer inspite of presence of that
product in the store.
4. The damaged stock from the store must send back to vendor in time and do not store it
in the store if vendor do no take it then destroy it after taking permission from the
concerned person and from the vendor.
5. Non salable items like hangers for clothes, polybags etc are also used properly and if
any hanger is blank then employees must take it out from the Gondola.

71

CHAPTER V

72

CONCLUSION
After doing this project in Pantaloon Retail I understand how exactly the work is done in
the supply chain but after observing many things I reach to the conclusion that there are
still many gaps in the supply chain of the company and we must try our best to fulfill
these gaps so that we provide better service to our customers and also reduce our
operating cost because we are in value retailing so only cost cutting provides us better
margins and to archive all this we have to work hard and make strong relation with our
vendors, logistics service provider and with our customers.

73

REFERENCES
REPORTS:


Indian Retail Report 2014-15

BOOKS:


Supply Chain Management by Chopra & Meindle

WEBSITES:
http://www.homecredit.co.in/about-us/home-credit-india-at-a-glance.aspx
http://www.homecredit.co.in/about-us.aspx
https://www.equitymaster.com/research-it/sector-info/finance/Investment-Finance-SectorAnalysis-Report.asp

74

APPENDIX
QUESTIONNAIRE
Name of the Employee

:-

Department

:-

Designation

:-

Work experience in Pantaloon

:-

1.

Could newcomers in the Retail Industry create damaging competition for
Pantaloon?
A)Yes

B) No

2. Is there an equally powerful force as Pantaloon in the market who can muscle into our
territory?
A)Yes

B) No

3. Are there other kinds of differentiators of other companies which could take away
Pantaloon top position in the market?
A)Yes

B) No

4. Does Pantaloon have any weaknesses compared to the competition in a key market
segment?
A)Yes

B) No

5. Is the market developing in ways that favour competitors more than Pantaloon?
A)Yes

B) No

6. Could Pantaloon customers possibly move away and take major sources of revenue
away to a competitor?
A)Yes

B) No
75

7. Is there a major area in the market where Pantaloon lags rather than leads?
A)Yes

B) No

8. Does any competitor have a stronger hold on Pantaloon biggest customers?
A)Yes

B) No

9. Are there environmental/regulatory threats?
A)Yes

B) No

10. Could unsuspected challenges arrive from outside the existing industry?
A)Yes

B) No

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77

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