Shriram Transport Finance Company Limited To Improve The Quality of Service

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED
BELGAUM INSTITUTE OF MANAGEMENT STUDIES, BELGAUM
Peoples Education Society and Trusts
Belgaum Institute of Management Studies,

MBA, Belgaum.
(Approved by AICTE & Affiliated to Karnatak University, Dharwad)
A STUDY ON PERCEPTION OF CUSTOMERS TOWARDS

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED TO IMPROVE
THE QUALITY OF SERVICE
AT
Shriram Transport Finance Company Limited

A Report Submitted in Partial Fulfillment of
the Requirement for the Award of
MASTERS DEGREE IN BUSINESS ADMINISTRATION
2005-2006
Submitted by
RIYAZ AHMED .M. HOSPET

Exam seat No: - MBA05006042
Institute Guide:
Company Guide:
Prof. M.M.Manik
Mr. Zulfi
Balegar
Ltd
Faculty (Marketing)
PESTs BIMS, MBA,
Belgaum.
Sales Manager
Shriram Transport Co
Hubli.
Peoples Education Society and Trusts
Belgaum Institute of Management

Studies, MBA
Adjacent to KUD PG Center, Bhutramanhatti, Belgaum.
(Recognized by AICTE, New Delhi & Affiliated to Karnatak University
Dharwad.)
CERTIFICAT
CERTIFICAT
EE
This is to certify that Mr. Riyaz Ahmed .M.

Hospet, Examination No. MBA05006042 of MBA II
Semester has successfully completed his
In-plant
Training Project 2006-2007 from May 15 to July 15,

2006.
Project Guide
Director
Date: ____________
CONTENTS
Chapter - I
Introduction
Literature review
Statement of the problem
Purpose of the study
Scope of the study
Objecatives of the study
Chapter II
Organisation profile
Organisation chart
Sampling
Research design
Data collection methods
Measuring tools
Chapter III
1-11
12-35
36-62
Results and discussion with graphs and

chart.
Summary, conclusion and a proposed

action plan with resource requirement
and projected benefits to the
organisation.
Chapter IV
Appendix
Questionnaires
Bibliography
63-77
ACKNOWLEDGEMENT
The report what I have presented is not the mere outcome of my labour
alone. There are dozens of hands buttressed me all through the programme it
doesnt go without thanking all of those who constantly keep me on the move.
I express my deep gratitude to Karnataka University; Dharwd who

have given us an opportunity to learn something practical apart from books by
including the in-plant training in our MBA Programme.
I express my gratutude to our beloved Director S.R. Bhramanaikar who
have supported me to complete this project.
My sincere thanks to Prof. Mr. M.N. Manik Internal Guide for
encouraging me to work on this project.
I would like to express my most sincere thanks and gratitude to
Mr.Ashok Singh Hajeri calm and utterly professional person to whom the
relevance and authenticity of this report should attribute to the extend every
support me helping the gain, external guide of this project for having faith in
this project idea.
I give my sincere token of thanks to all my faculties, relatives and
friends who have gathered me the wisdom of knowledge. This work is
dedicated to my parents who have supported me throughout my study.
RIYAZ AHMED HOSPET
CHAPTER-I
EXECUTIVE SUMMARY
OBJECTIVES OF THE STUDY: To know the perception of customers towards SHRIRAM

TRANSPORT FINANCE COMPANY to improve the quality of
services.
To know whether the customers are satisfied with the present
services of the company.
Factors considered in selecting SHRIRAM TRANSPORT

FINANCE COMPANY to take finance for HCV (Truck).
To study the behaviour of executives of SHRIRAM TRANSPORT
FINANCE COMPANY towards customers.
To seek suggestions and opinions from customers regarding the
improvement of services.
SCOPE OF THE STUDY: The study will help the company to know their awareness among the
consumers, the perception, brand position of the company.
The company can find out where their competitors stands in the minds
of the customers.
The study will help the company to make proper marketing strategy for
their weaker areas.
The study covers the customers owning HCV in Hubli city.
LIMITATIONS OF THE STUDY:Not single work is exception to the limitations every work has got its
own limitations, so due to time constraint, my study confines only to Hubli
city and it is not possible to make extensive study. It is assumed that the
sample selected represents entire population.
RESEARCH METHODOLOGY:BELGAUM INSTITUTE OF MANAGEMENT STUDIES, BELGAUM
Data source
Primary (Field Survey)

Secondary data (internet)
Area of Research
Research instrument
Sample plan
:
:
:
Hubli city
Questionnaire
Personal interview
Sample unit
Sampling method
Truck owners, Transporters

etc.
Stratified Random
Sample size
sampling
100 customers
INTRODUCTION
PERCEPTION OF CUSTOMERS TOWARDS SHRIRAM TRANSPORT
COMPANY LIMITED.
Like any other Financial products, sales of giving finance is largely dependent
on how well company plans out their marketing strategies which helps to
increase visibility and build a distinct brand image. Looking at the intense
competition it is become very necessary for company to make a name for
themselves in consumers mind. So the opinion of customers play an important
role in making marketing strategies. Hence this study will provide the
company to what customers perceive about STFC. It will also help to find out
the brand image of STFC in the minds of customers.
India is emerging as a global automobile giant. In recent years this

industry has made pioneering efforts in adopting modern technology and
allowing the entry of foreign players. This is well supported by the economic
conditions particularly in the financial sector and in foreign direct investment.
During the last decade, conscious efforts have been made to fine-tune state
policy to enable the Indian automobile industry realizes its potential to the
fullest. The freeing of the industry from this restrictive environment has
helped it to itself to global development.
Increasing competition as result of liberalization has led to continuous

modernization as well as international standards. Moreover, auto finance with
aggressive marketing strategies has played a bid role in boosting the
automobile demand. Commercial vehicles, widely considered being the
economys barometer, have had a good start for the year.
The auto finance industry is expected to grow at 18.6% till 09. Of that
used vehicle finance is expected to grow at 27% p.a, while new car and UV
would grow at 18.9% and 13.8%.
LITERATURE REVIEW
The world is full of stimuli. A stimulus is any unit of input affecting one or
more of the five senses sight, smell, taste, touch, hearing.The process by
which we select , organiseand interpret these stimuli into a meaningful and
coherent picture is called perception.
In essence, perception is how we see the world around us and how we

recognize that we need some help in making a purchase decision. People
cannot perceive every stimulus in their environment. Therefore, they use
selective exposure to notice and which to ignore.
Marketers must recognize the importance of cues or signals, in

customers perception of products. Marketing managers first identify the
important attributes, such as price or quality, that the targeted customers want
in a product and then design signals to communicate these attributes.
Customers also associate quality and reliability with certain brand names.
Companies watch their brand identity closely, in large part because a strong
link has been established between perceived brand value and customers
loyalty.
Customer Perception Audits:

Every time you lose a customer, theres a reason why. Do you really know
what your customers think about your business, your offerings, or your
service? Are they having good or bad experiences? Are you equipped with the
insight you need to improve customer satisfaction and loyalty, and make the
changes that matter? Entrepreneurs are often too busy to really take the time to
tap into what customers are really thinking. But customers hold the key. They
know what you need to do to dramatically increase the value you deliver to
them. Why keep this data a secret? Uncovering and understanding it will give
you what you need to be the best, generate higher sales and referrals and earn
repeat business.
Customer Perception Audits by Coach Kevin captures information on

the experiences your customers are having, analyzes the data, and provides
meaningful, actionable recommendations on short-term and long-term
improvements, with the goal of closing the gap between the service that is
delivered and the service that customers expect.
Opening of economy and liberalization in trade in the country brought

a sea of change in customers perception of buyer and seller relationship. The
customer today is not only very demanding but also likes to know the
relationship between the supplier of goods and services and its relationship
with the manufacturer or principal and its antecedents. It is on this relationship
depends the guarantee and warranty terms to which the customer is entitled. A
customer expects trouble free service during the guarantee period. Thereafter it
is expected that a product will last to its full productive life with minimum
down time and the vendor will provide the required support service to ensure
the customer is not put to trouble.
For adopting Japanese management or for customer oriented
management we should first have the willingness and a determination much
above the petty personal gains. It needs an attitudinal change. Looking
towards present socioeconomic and political conditions such change is not
foreseen in immediate future. Market forces will have to play the game with
only customer in mind if India has to make global presence. There is little time
in hand as we are having challenges from all sides. Small nations like Korea,
Taiwan, Singapore etc. have already surpassed us. These nations are working
on a vision and resultant plans. It is the right time for market players to
pamper the customer. As the saying goes, the four deadly sins of corporate
management-complacency, blindness, megalomania, and greed. fit everything
else is overhead!.
Remember that a customer always buys a product or service with a lot

of expectations which he has derived from the promotional inputs of the
company or other sources including word-of- mouth . So a customer would be
satisfied when Performance is equal to Expectation while would not be
satisfied when Performance does not match with Expectations. Now this
expectation is what has been derived from perception. Perception is not good
or bad, right or wrong, it is just the way someone judges an experience based
on their value system of what they believe should happen. Since people are
unique, each of their perceptions are unique .On the other hand each situation
is a "point of contact" with an employee that will tell the customer a "truth"
about the company's idea of customer service. Each situation will create
expections of what the next experience will probably be like.
STATEMENT OF THE PROBLEM:The present day market is flooded with a variety of Non- banking and
as well as banking financial institutions as many as if not more than
companies like SHRIRAM TRANSPORT FINANCE COMPANY, Tata
Finance, Sundaram finance etc. are marketing their products.
Time has become talk of the town therefore the customers give utmost
priority to those financial institutions which gives loans at lower rate of
interest, quick loans, documentation, percentage of finance etc. which have
been exerting influence on the playing decision of the consumer.
The SHRIRAM TRANSPORT FINANCE COMPANY is the largest

NBFC (Non Banking Financial Corporation) in the country exclusively
engaged in financing for heavy commercial vehicles (HCV) perhaps it is the

only company rendering better performance from a long period of time with
the presence of all these factors. The SHRIRAM TRANSPORT FINANCE
COMPANY is making sales as hotcake.
The study on hand is directed to understand the perception of

customers towards SHRIRAM TRANSPORT FINANCE COMPANY to
improve the quality of service
PURPOSE OF THE STUDY:The main purpose of the study is to understand the perception of customers
towards SHRIRAM TRANSPORT FINANCE COMPANY which will help the
company to make proper marketing strategy to render good services and
satisfy the needs of the customers. The study will help the company to make
proper strategies and emphasize on their weaker areas.
SCOPE OF THE STUDY :The scope of the study covers the customers of SHRIRAM TRANSPORT
FINANCE COMPANY and other competitive companies in Hubli city Truck
owners, Transport companies etc.
OBJECTIVES OF THE STUDY:1. To know the perception of customers towards Shriram Transport
Finance Company Limited to improve the quality of service.
2. To know whether the customers are satisfied with the present
services of the company.
3. Factors considered in selecting SHRIRAM TRANSPORT
FINANCE COMPANY to take finance for HVC.
4. To study the behaviour of executives of SHRIRAM TRANSPORT
FINANCE COMPANY towards customers.
5. To know the awareness level of the customers towards SHRIRAM
TRANSPORT FINANCE COMPANY.
6. To seek suggestions and opinions from customers regarding the
improvement of services.
LIMITATIONS OF THE STUDY:-.

a. Because of time constraint, my study confines only to Hubli city and it
is not possible to make extensive study.
b. By busy schedule of the executives it is difficult to extract more
information from them.
c. Unwillingness of transporters, truck owners has left us to make random
conclusions.
CHAPTER II
COMPANY OVERVIEW:Established in the year 1974, the Shriram Group, comprising 750
Branches and Service Centres, in India's premier financial services chain. This
company is the largest player in Truck Financing and Chit funds in the Indian
subcontinent.
The group, having an annual turnover of Rs. 6,000 crore (USD 1.3
billion), has a significant presence in the Insurance Consultancy, Consumer
Durable Finance and Stock Broking businesses. It also have diversified
investments in areas such as Information Technology, Pharmaceuticals,
Property
Development,
Project
Engineering,
Packaging
and
Auto
Components.
It employ over 11,000 employees across the countries that are

committed to providing excellent customer service. It also have over 75,000
agents nationwide who reach out to its customers in even the most remote
areas.
The Shriram Group's business ventures are built on providing the most
efficient and customer-focused services based on the simple principle of
putting people first. This 'People First' business philosophy has earned them
unstinted customer loyalty through many generations.
HISTORY AND MILESTONE:

APRIL 2005:
Shriram Group attracts largest Venture Capital Investment in the Indian
non-banking financial sector, from Overseas
JULY 2004:
UTI Bank picks up equity stake in two Shriram Group companies
17MARCH 2003:
Shriram Investment Limited received the Mother Teresa Award for
Corporate Citizenship.
DECEMBER2002
Shriram Group enters into strategic alliance with Citicorp Finance and
Cummins Auto Services
31AUGUST2002
Shriram Group ties up with UTI Bank for Retail Truck Financing
Scheme to offer low cost loans for purchase of new or used trucks to transport
operators.
7MAY2002
Ms. Akhila Srinivasan awarded as the "Outstanding Woman Professional"
for the year 2002
4FEBRUARY2000
Shriram Recon Trucks incorporated as India's first corporate network for
selling reconditioned used trucks.
15DECEMBER1999
Medicorp, the flagship company of Shriram groups pharmacy
division became the first Indian company to win the Indian Drug
Manufacturers Association
27 MARCH1986
Shriram City Union Finance Ltd. Incorporated for cars and twowheelers.
12MARCH198
Shriram Investments Ltd. Incorporated
13JUNE1979
Shriram Transport Finance Company Ltd. Incorporated
VISION, MISSION AND VALUES:

Helping create wealth, Empowering people through prosperity, Putting
people first.
The Shriram Group set out with the objective of reaching out to the
common man with a host of products and services that would be helpful to
him in his path to prosperity. Over the decades, the Group has
achieved
significant success in executing this objective and has created a tremendous

sense of loyalty amongst its customers.
Efficiency in operations, integrity and a strong focus on catering to the

needs of the common man, by offering him high quality and cost-effective
products & services, are the values driving the organization. These core values
are deep-rooted within the organization and have been strongly adhered to
over the decades.
The group prides itself on its perfect understanding of the customer.

Each product or service is tailor-made to perfectly suit the needs of the
customer. It is this guiding philosophy of putting people first that has brought
the Group closer to the grassroots and has made it the preferred choice for all
financing requirements amongst the customers.
NON-BANKING FINANCIAL COMPANY (NBFC) A GENERAL

SCENARIO
Non-Banking Financial Company (NBFC) is a company registered
under the Companies Act, 1956 and is engaged in the business of loans and
advances, acquisition of shares/stock/bonds/debentures/securities issued by
Government or local authority or other securities of marketable nature,
leasing, hire-purchase, insurance business, chit business but does not include
any institution whose principal business is that of agriculture activity,
industrial activity, sale/purchase/construction of immovable property. A nonbanking institution which is a company and which has its principal business of
receiving deposits under any scheme or arrangement or any other manner, or
lending in any manner is also a non-banking financial company (Residuary
non-banking company).
DIFFERENCE BETWEEN BANKS & NBFC ?
NBFCs are doing functions akin to that of banks, however there are a few
differences:
i. A NBFC cannot accept demand deposits;
ii. It is not a part of the payment and settlement system and as such cannot
issue cheques to its customers; and
iii. Deposit insurance facility of DICGC is not available for NBFC depositors
unlike in case of banks.
COMMERCIAL VEHICLE
It is the funding of products include, trucks, buses, tippers, light
commercial vehicles, pick ups, 3 wheelers, etc.
Range of services: funding of new vehicles, refinance on used vehicles,
balance transfer on high cost loans, top up on existing loans, Extend product,
working capital loans & other banking products.
Who are eligible?

Any individual / Partnership firm / company with more than 2 years business
experience. Ownership of a vehicle is not mandatory. Funding extended to
First Time User, Transporters and Captive Consumers.
How much?
Loan amount can vary from a few thousands to crore depending upon the
specific requirement.
Funding can be up to the extent of 100 % of the chassis, body funding can be
extended on special requirement & on the past experience.
Generally undertaken is Hypothecation funding. They are also taking
over an old high-interest loan and converting it into low interest loan.
Repayment:
In general repayment period is of 3 -4 years, however depending on the nature
of the deal the tenure can vary from 6 - 60 months.
The repayment schedule & the amortization schedule is sent on disbursement
of the loan.
Interest:
Interest is charged on a flat rate based on the scheme applicable for the
particular product.
FARM EQUIPMENT LOANS

Farm equipment loan has also a big chunk in the vehicle finance.
Eligibility :Agricultural Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in agriculture for the last 5 years.
Having minimum 2 acres of land with its value at least twice the loan
amount.
Staying in the same place for at least 3 years.
Having an annual income equal to the yearly installment
Mortgage of land of 2 to 3 times of the loan amount
Commercial Users
Any individual aged above 21 years at the beginning of the tenure and below
65 years by the end of the tenure; involved in business for the last 3 years.
Owns at least one tractor or commercial vehicle.
Owns either a house or an office or at least 2 acres of land.
Has a permanent phone connection either at office or at home.
Loan Amount:
The loan amount varies from customer to customer depending on the
valuation of the land being mortgaged, income of the customer and tenure
desired. A maximum of 100% of the cost of the tractor, 75% of the cost of the
trailer and 50% of the cost of the implements is funded.
Documentation:
Agricultural use
Application form with photograph of the customer and all co applicants

and/or guarantor.
Performa Invoice of the asset to be funded from an authorized dealer.
Land records of the borrower/s.
Land valuation and title search report of the land.
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.

2 SPDCs(Security Post Dated Cheques) for entire tenure.
Commercial Use
Application form with photograph of the customer and all co applicants
and/or guarantor.
Proforma Invoice of the asset to be funded from an authorized dealer.
Proof of Income (any of the following) :
- Billing statement for the past one year
- Latest Income tax Return
- Last 6 months bank statement
Residence proof of the borrower/s.
Identity proof of the borrower/s.
Signature verification of the borrower/s.
Loan agreement, duly signed by the applicants and guarantor.
2 SPDCs(Security Post Dated Cheques) for entire tenure.
Rates & Fees:

The rate of interest varies from customer to customer and depends on various
factors like land holding, loan amount, viability of the proposition and the
underlying collaterals provided.
Interest:
Interest is charged on a monthly/quarterly/half-yearly reducing balance basis
as the case may be. Every installment that is paid has a component of principal
as well as interest. Interest is charged on the principal outstanding after every
installment payment.
TWO WHEELERS:
Two wheeler finance is comparably Simple, Friendly and Quick.
Loan Schemes are available from Rs.7500/- onwards to Rs.150000/- in easy
installments over a period of 6 to 36 months.
Eligibility Criteria:
1. Salaried Individuals
2. Self Employed Individuals
3. Pensioners, Housewives & Students
4. Partnership Entities
5. Private Limited Companies

6. Public Limited Companies
Interest rates:Interest rate is charged on a monthly reducing balance .

Documents:
Identity Proofs
Residence Proof
Income Proof
Post Dated Cheques
Copy of Credit Card
CC billing statement
Bank passbook/Statement
No objection Certificate
AWARDS AND RECOGNITION

Recipient of the social responsiveness awards instituted by Business
world compaq at national level under the auspices of FICCI, Delhi.
Adjudged as the third prize winner for having rended commendable

service in the areas of social welfare and rural development.
Ms. Akhila Srinivasan receiving the social responsiveness Award

instituted by Business World Company from the Honble Vice President of
India Krishna Kant in the year 1999.
Recipient of outstanding woman professional for 2000 01 by FICCI

FICCI Ladies organisation (FLO). The award was given by Ms. Sheila dixit
Chief minister Delhi.
Mother Teresa award for corporate citizenship instituted by Loyola

institute of Business Administration (LIBA) Chennai, 2002.
SOCIAL WELFARE INITATIVES

They have always belived in delivering financial value with a human
face. As a company firmly grounded up a middle class ethos, we take our
social responsibilities very seriously.
Their corporate Social Responsibility (CSR) initiative started with the

Shriram Social Welfare Trust (SSWF) that was set up in the year 1993. SSWT
is today active in the following areas.
Orphan and destitute care
Primary education for the rural poor
Micro credit financing through self- help groups for the marginalized
Empowerment and upliftment of women in villages.
OPRHAN AND DESTITUTE CHILDREN:

To swiftly help the poor and the needy to be self reliant and live with dignity,
not charity. The primary focus and beneficiaries of the Trusts activities are.
a. Abandond neglected and destitute children.
b. Juvenile delinquents in need of care and protection.
c. Children of poor and illiterate parents.
d. Disadvantaged and marginalized section of women, particularly rural
women
MICRO CREDIT FINANCING THROUGH SELF-HELP GROUPS

FOR THE MARGINALIZED WOMEN IN VILLAGES.
a. Launch of Shriram Rural Development Project (SRDP) to create and
develop
b. Social and human capital among the poor.
c. Micro credit financing through self help groups in 156 villages in Tamil
Nadu, Andhra Pradesh and Karnataka.
PRIMARY EDUCATION FOR THE RURAL POOR:

The trust runs four schools in rural areas at Thiruneermalai, Pallikaranai,
Moovarasampet in Tamil Nadu and inn Prakash Nagar, Guntur Dist. In Andhra
Pradesh. Over 2000 children receive free education. Schools offer education
up to class VII and student will progressively move up to higher secondary
level.
FUTURE PLANS :
a. To start six primary schools for the rural poor in the villages of Andhra
Pradesh.
b. Government of Andhra Pradesh to hand over 3.5 acres of land to SSET in
six districts.
c. Immediate Plans: to start two schools in Cudapah and Guntur districts in
June 2005.
LONG TERM BENEFITS OF THE PROGRAM:

a. Reduction in rural indebtedness
b. Bank/institutional credit for investment in income generation activities.
c. Improved household food security round the year, better nutrition.
d. Improved household income.
e. Empowerment of Women.
f. Greater leverage and status of SHG members in local communities and with
the state.
THE FUTURE ACCORDING TO SHRIRAM

1. To enlarge the scope of micro credit financing activity through NBFC
Shriram Investment Limited.
2. To extend activities to Bihar, Kharkand, and Eastern Uttar Pradesh.
3. To lend credit at low interest rates to 3 lakh women below poverty line
in the next 3 years.
NATIONAL AWARDS WON
Business World Compaq award fota Social Responsiveness instituted

by FICCI from the Honble Vice President of India Mr. Krishna Kant
on 1999.
Mother Teresa award for Corporate Citizenship instituted by Loyola

Institute of Business Administration (LIBA), Chennai in 2002.
PRODUCT PROFILE
1.TRUCK FINANCE
1. Shriram Truck Financing Companies. The wheels of progress.
2. Largest NBFC in the country exclusively engaged in financing of
heavy commercial vehicles.
3. Monopoly position in financing of used vehicles.
4. All India presence with a branch network of 260 offices and employing
over 4000 people.
5. Growing at the rate of 30% per annum.
6. Funds managed Rs 6000 crores.
7. Equity investors - Citicorp,, UTI Banks, Reliance Capital and FMO
Netherlands have added tremendous value and strength.
8. Venture capital firm Chris capital joins as a strategic partner by
acquiring 21% equity.
We entered the Consumer Durable Finance business in early 2002 through

'Shriram City Union Finance Ltd., the consumer finance arm of the group.
Within a short span of 2 years, we have managed a portfolio of over Rs.584
crore.
Our monthly business amounts to over Rs.25 crore in individual loans, ranging
from as little as Rs.8,000 to Rs.1,00,000, and with tenures ranging from 12
months
to
36
months.
Since its inception, we have financed over 2,15,000 white goods and twowheelers, with over 90% of the business arising out of the non-metro markets.
This financing is backed by lines of credit extended by ICICI Bank, UTI Bank
and Development Credit
THE GROUP COMPANIES ATHAT CATER TO TRUCK FINANCING
NEEDS A DIFFERENT PARTS OF THE COUNTRY ARE
Shriram Investments Limited in the South Shriram Transport Finance
Company Limited
in the West Shriram Overseas Finance Limited in
Northern/Eastern regions in India.
OUR EQUITY PARTNERS

Citicorp financial services Ltd. An arm citigroup has taken 14.9% equity stake
in Shriram investments Limited and Shriram Transport Financial Company
Limited in 2002.
FMO the Dutch Government owned financial services company has recently
picked up equity stake in SIL and STFC. The company has extended a long
term debt of 6 million Euros each to the two companies.
Reliance Capital has also taken an equity stake in the two companies at a
premium.
AN OVERVIEW OF THE SHRIRAM GROUP TRUCK FINANCING

BUSINESS IN INDIA
AREA OF OPERATION
ALL INDIA
Branch offices
260
Employees
4000
Depositors
12.20 lakhs
Agency Force
15,000 plus resident representatives 1300.
Funds managed
Rs. 6000 crores
Net worth
Rs. 349 crores
Stock Listing
Major exchanges including the BSE and

the NSE.
2.CONSUMER FINANCE:We entered the consumer Durable Finance Business business in early
2002. through Shriram City Union Finance Ltd. The consumer arm of the
group. Within a short span o 2 years, we have managed a profile of over rest
684 crores in this business.
Our monthly business amounts to over Rs. 25 crores in individual

loans, ranging from as little as Rs.8000 to Rs. 100000 and with tenures
ranging from 12 months to 36 months.
Since its inception we have financed over 215000 white goods and
two wheelers with over 90% of the business arising out of the non metro
markets.
This financing is backed by lines of credit extended by

ICICI Band, UTI Bank and Development Credit.
3.CHIT FUNDS:Shriram chits prosperity

Shriram chits is the largest chits fund in the country. We have grown to
become a trusted household investment option. The growth registered by
Shriram Chits recent years not only indicated the usefulness of this savings
instrument, but is also a reflection our customers trust in.
Chits one of the earliest investment instrument known to man, were founded
by the enlightened communities of India. These have, ever since, worked to
the advantages of communities that are batting scarce capital resource.
Shriram chits started its operations in the year 1974 with a single branch that
has quickly grown into trusted household name for making chits a viable form
of saving and borrowing to all sections of the social.
Shriram chits operates in four states. Tamil Nadu, Andhra Pradesh, karnataka
and Maharastra, where has a reputation for timely disbursement of funds and
excellent customer services which differen tiates it from other companies.
Using state of the art computer systems/networks and a transparent
accounting system, Shriram Chits have transformed this contemporary mehod
of savings into an attractive personalised to banking system.
4.GENERAL INSURANCE:Shriram group has adopted a two strategy in this segment.

1. Broking arm Armour Consultants floated in year 2002
2. Retail Marketing Arm: Ski Marketing flotred in year 2001.
ARMUR CONSULTANTS PRIVATE LIMITED : INSURANCE

EXPERTS AT YOUR SERVICE
Amour consultant is engaged in insurance broking in corporate insurance
markets and has already aggregated business volumes in excess of Rs. 200
crores ($ 44 million) in premiums.
Amour consultant comprises a team of distinguished professionals from

insurance, finance, law and other management discipline, who have vast
business and managerial experience. The company has handled major claims
for renowned clients. There have been several claim cases that were won even
in the arbitration stage.
The tern at Armun Consultants begins with an in depth evaluation

of the client companys business environment. The company risk profile is
then studied. Based on the results of these evaluations. The team then suggests
the most cist effective, integrated insurance package that is perfectly suited to
the companys risk profile.
The company plans to extend its customer base of the existing 500000 policy
holders to cross the 1 million mark by the end of financial year 2005-06.
5.LIFE INSURANCE:The shriram group plans to enter the life insurance segment 05. Am
application has already been filed with the IRDA for the same. We are also
exploring the possibilities
of collaborating with a foreign partner in this
venture. We expect to be a major player in this very fast growing sector, as a

natural corollary of business philosophy and expertise.
6.STOCK BROKING:-
Our stock broking arm operates under the insight share Brokers Pvt. Ltd. It is a
member of the National Stock Exchange , India and the Multi Commodity
Exchange. This unit has expended the network by 150% over the last year and
today it has more than 230 terminals spread across the length and breadth of
the country.
It has a retail customer base of around 50000.
The company launched its new products like Derivatives and commodity
Trading in early 2004.
A QUICK LOOK AT SOME OF THE SALIENT FEATURES
Limits of all clients are fixed at a pre-calculated level.
This is benefical to them in the long run as it prevents overtrading.
Atimely payments and direct share transfer facility from NSE.
Adequate risk control research support.
The clincher. Proactivate and preventive risk control.
ORGANISATION CHART
BOARD OF DIRECORS
SHIRAM TRANSPORT FINANCE COMPANY LIMITED

R Sridhar
Managing Director
S. Venkatakrishnan
Executive Director
Umesh G Revankar
Executive Director
K.R.C Sekhar
Director
S. Ranganathan
Nominee of Citicorp Finance (India) Ltd.
Dr. T S Sethurathnam
Nominee of IREDA ltd.

Company Secretary & Compliance
K. Prakash
Officer
SAMPLING:
Sample plan to know the perception of customers in this project is through
personal interview.
SAMPLE UNIT:
I have taken the customers who are owning a truck or (HCV).
SAMPLING METHOD;
I have used Non- probability sampling i.e. Stratified Random Sampling.
Sample size for this project is 100 customers who are truck owners.
RESEARCH DESIGN:
In this research design of this project the study was conducted by the survey
method.
Taking sample of 100 customers owning trucks by commencing sampling

using the research instrument as the questionnaire.
Personal interview is considered as the sample plan.

For this project area of research is Hubli City.
DATA COLLECTION METHOD:

I have collected the data from the following sources:
A. PRIMARY DATA:
The data collected from the company persons.
Questionnaires
B. SECONDRY DATA:
Interviewing with the owners of trucks
Internet
Magazines, Catloges, etc.
MEASURING TOOLS:
For preparing this project I have considered questionnaire as measuring tool

for collecting the data.
CHAPTER - III
CHAPTER III
RESULTS AND DISCUSSION WITH GRAPHS AND CHARTS:-
1) Do you own a HCV?

Table: 3.1
Yes
No
Total
Number of customers
100
Nil
100
Percentage
100%
Nil
100%
The information presented in table3.1 reveals that: Almost all respondents are owning Heavy Commercial Vehicle.
The same information is presented in the form of diagrammatically as
follows:-
2. Source of finance for your HCV?

Table: 3.2
Sources
Co-op banks
STFC
Tata finance
Others
Total
Number of customers
4
61
19
16
100%
Percentage
4%
61%
19%
16%
100%
The information presented in table3.2 reveals that: 61% respondents have taken loan from STFC .
19% respondents have taken loan from tata finance and 4%
from co-op banks.
While remaining 16% have taken from other finance
companys.

follows:BELGAUM INSTITUTE OF MANAGEMENT STUDIES, BELGAUM
3. Are you aware of STFC?

Table:3.3
Yes
No
Total
Number of customers
100
Nil
100
Percentage
100%
Nil
100%
The information presented in table- 3.3 reveals that: Almost all respondents are aware of STFC .

follows:-
4) How did you come to know about this company?

Table:3.4
Sources
Friends
Agents
Advertisements
Others
Total
Number of customers
38
24
32
6
100
Percentage
38%
24%
32%
6%
100%
The information presented in table3.4 reveals that: 38% respondents have bought finance from STFC on the
advice of their friends.
24% will seek the advice of agents.
While 6% from others and 32% on the basis of Advertisements.

follows:-
5. Do you get the finance quickly from STFC?

Table:3.5
Number of customers
84
16
100
Yes
No
Total
Percentage
84%
16%
100%
The information presented in table3.5 reveals that: 84% respondents are in favour of quick finance availability
from STFC .
While remaining 16% of them are not in favour of quick
finance.
follows:-
6) Are you satisfied with the documentation process at STFC?

Table:3.6
Sources
Highly Satisfied
Satisfied
Neither satisfied/dissatisfied
Dis-Satisfied
Highly dis-Satisfied
Total
Number of customers
28
42
Percentage
28%
42%
14
14%
14
2
100
14%
2%
100%
The information presented in table3.6 reveals that: 28% of the respondents are Highly Satisfied with the
documentation process at STFC , 42% of the respondents are
Satisfied and from the analysis 14% of them are Neither
satisfied/dis-satisfied .
Nearly 14% of the respondents are dis-Satisfied and 2% of
them are Highly dis-Satisfied .
The same information is presented in the form of diagrammatically

as follows:-
7) Do you require any changes in the documentation process?

Table:3.7
Yes
No
Total
Number of customers
28
72
100
Percentage
28%
72%
100%
The information presented in table3.7 reveals that: 28% of the respondents require changes in documentation
process at STFC .
While 72% of the respondents are Satisfied with the
documentation process at STFC .
follows:-
8. What do you feel about the interest rates at STFC?

Table:3. 8
Sources
Very High
High
Moderate
Low
Total
Number of customers
16
44
34
6
100
Percentage
16%
44%
34%
6%
100%
The information presented in table3.8 reveals that: 16% of the respondents are in favour that interest rate at STFC
is very high and 44% of them are in favour of High rates.
While 34% of them are in favour of moderate interest rates and
6% for low interest rates.

follows:-
9) Are you satisfied by the percentage of finance provided by
STFC?
Table:3. 9
Yes
No
Total
Number of customers
88
12
100
Percentage
88%
12%
100%
The information presented in table3.9 reveals that: 88% of the respondents are Satisfied with Percentage of
finance given by STFC .
While 12% of them are not Satisfied .
follows:-
10). Are you satisfied with the services offered by STFC?

Table:3. 10
Sources
Completely Satisfied
Satisfied
Neither satisfied/dissatisfied
Dis-Satisfied
Completely disSatisfied
Total
Number of customers
10
32
Percentage
10%
32%
20
20%
29
29%
9%
100
100%
The information presented in table3.10 reveals that: 10% of the respondents are completely Satisfied with
the service offered y STFC, 32% of the respondents are
satisfied and from the analysis 20% o the respondents
are Neither satisfied/dis-satisfied .
Nearly 29% of them are dis-Satisfied and remaining 9%
of them are completely dis-Satisfied .
The same information is presented in the form of diagrammatically

as follows:-
11) What are the features that attracted you to borrow loan
from STFC?
Table:3. 11
Sources
Low interest rates
Easy documentation
Quick finance
Low EMI
Total
Number of customers
6
10
84
Nil
100
Percentage
6%
10%
84%
Nil
100%
The information presented in table3.11 reveals that: 84% of the respondents are attracted by quick finance.
10% of the respondents for easy documentation.
While remaining 6% for low interest rates.

follows:-
12. How do you rate STFC with respect to other finance
companies?
Table:3. 12
Sources
Tate
Ashok Leyland
STFC
HDFC
ICICI
SBI
Total
Number of customers
12
18
26
18
14
12
100
Percentage
12%
18%
26%
18%
14%
12%
100%
The information presented in table3.12 reveals that: 12% of the respondents rated Tata in the 1st place with other
companys and 18% of them for Ashok Leyland and HDFC in
2nd place.
26% of them rated STFC in 3rd place.
Nearly 14% of them for ICICI in 4th place.

follows:-
13. What is your experience when you approached the executives
of STFC for finance of HCV?

Table:3. 13
Sources
Very good
Good
Neither good/bad
Bad
Very bad
Total
Number of customers
22
48
24
4
2
100
Percentage
22%
48%
24%
4%
2%
100%
The information presented in table3.13 reveals that: 22% of the respondents are in favour of very good behaviour
from the executives of STFC , 48% of them are in favour of
good behaviour.
24% of them are in favour of Neither good/bad.
While 4% of them are bad and 2% very bad.

follows:-
14. Are your queries cleared quickly?

Table:3. 14
Yes
No
Total
Number of customers
82
18
100
Percentage
82%
18%
100%
The information presented in table3.14 reveals that: 82% of the respondents are in favour that their enquiries are
cleared quickly at STFC .
While remaining 18% of them are telling their queries are not
cleared quickly.
follows:-
15. Are you satisfied with the repayment system of STFC?

Table:3. 15
Yes
No
Total
Number of customers
64
36
100
Percentage
64%
36%
100%
The information presented in table3.15 reveals that: 64% of the respondents are Satisfied with repayment system at
STFC.
While remaining 36% of them requires changes in repayment
system.
follows:-
16. Do you recommend STFC to others?

Table:3. 16
Yes
No
Total
Number of customers
68
32
100
Percentage
68%
32%
100%
The information presented in table3.16 reveals that: 68% of the respondents are in favour of recommending STFC to
others for taking loan.
While remaining 32% of them are not in favour of recommending
to others.
follows:-
17. Do you want to take finance in near future from STFC?

Table:3. 17
Yes
No
Total
Number of customers
60
40
100
Percentage
60%
40%
100%
The information presented in table3.17 reveals that: 60% of the respondents wants to take finance in near future from
STFC.
While remaining 40% of them are not in favour of taking finance
from STFC .
follows:-
CONCLUSION
Less than anticipated growth in the face of intensifying competition and rising
costs, can hardly be expected to get the company foaming.
By seeing the observations most of the customers are having positive

perception towards Shriram Transport Finance Company Limited and are
satisfied with their services such as Quick finance, Easy documentation
process etc. The company is progressing continously in the field of finance as
Non-Banking Finance Company to compete with other Financial as well as
Non-banking financial institutions.
STFC is the Non-Banking Financial Company in the Indian scenario

and it is the leader with monopoly position in financing for Heavy
Commercial Vehicles.
SUGGESTIONS
The firm should tap the un-tapped locations & market. This will help
them in increasing the business. Rural places are advised
The company should bring down their interest rates compared to other
competitor rates.
The STFC should increase their seizing period from 3 months to 4

months during slack season if the customers fails to pay their
instalments.
The STFC should maintain consistency in customer satisfaction level

in future also.
The brand awareness campaigns should be conducted. The firm should

work on its Advertisements.
Number of customers complaints should be reduced, because always

cost is associated in solving these problems.
CHAPTER-4
Questionnaire
Dear Sir/Madam,
I am pleased to introduce myself as MBA student of PES&Ts
Belgaum Institute of Management Studies, Belgaum. As a part of
my curriculum I am conducting a survey on the Perception of
customers towards ShriRam Transport Finance Company Limited
to improve the quality of service. The information provided by
you will be strictly kept confidential and used for academic
purpose only.
Your co-operation will be highly appreciated.
1.Do you own a HCV?
Yes [ ]
No [ ]
2. Source of finance for your HCV?

Co-op banks [ ]
STFC [ ]
Tata finance [ ] Others [ ]
3. Are you aware of STFC?

Yes [ ]
No [ ]
( If no go to Question No:- 17 ).
4. How did you come to know about this company?

Friends [ ]
Agents [ ]
Self experience [ ] Others [ ]
5. Do you get the finance quickly from STFC?

Yes [ ]
No [ ]
6. Are you satisfied with the documentation process at STFC?

Strongly dissatisfied [ ]
Dis-satisfied [ ]
Neither
satisfied/ Dis-satified [ ]
Satisfied [ ]
Strongly
Satisfied [ ]
7. Do you require any changes in the documentation process?
Yes [ ]
No [ ]
If Yes specify _______________________________.
8.What do you feel about the interest rates at STFC?
Very High [ ]
High [ ]
Moderate [ ]
Low [ ]
9. Are you satisfied by the percentage of finance provided by

STFC?
Yes [ ]
If No specify _________.
10. Are you satisfied with the services offered by STFC?

Strongly dissatisfied [ ]
Dis-satisfied [ ]
Neither
satisfied/ Dis-satified [ ]
Satisfied [ ]
Strongly
Satisfied [ ]
11. What are the features that attracted you to borrow loan from
STFC?
Low interest rates [ ]
Easy documentation [ ]
Quick finance [ ]
Low EMI [ ]
12. How do you rate STFC with respect to other finance companies
( 1 being highest and 6 being lowest)/
1[ ]
2[ ]
3[ ]
4[ ]
5[ ]
6[ ]
13. What is your experience when you approached the executives of

STFC for finance of HCV?
Very Good [ ]
Good [ ]
Bad [ ] Very Bad [ ]
Neither Good/Bad [ ]
14. Are your queries cleared quickly?

Yes [ ]
No [ ]
15. Are you satisfied with the repayment system of STFC?

Yes [ ]
No [ ]
16. Do you recommend STFC to others?

Yes [ ]
No [ ]
17. Name the other finance companies you know?

____________________________________.
18. Do you intend to take finance in near future from STFC?

Yes [ ]
No [ ]
19. Please provide some suggestions in improving the quality of

service at STFC?
_______________________________________________________
________________________________________________.
Please provide the below mentioned information:

Name:
_______________________________________________________
Address:
_______________________________________________________
Occupation: _____________________________
Annual Income ______________________
Gender: Male [ ]
Female [ ]
** Thank You **
WEEKLY PROGRESS REPORT
Name the student:- Riyaz Ahemad Hospet

Title of the study:-"A study on Perception of customers towards ShriRam
Transport Finance Company Limited to improve the
quality of service"
Report:-1st
date/day
15/5/06
Monday
16/5/06
Tuesday
17/5/06
Wednesday
18/5/06
Thursday
19/5/06
Friday
20/5/06
Saturday
21/5/06
Sunday
ACTIVITIES DONE
I have prepared four project titles based on consumer
behavior and market research.
I was allotted the project as above from external guide
Mr.Zulfi Balegar.
Got the information regarding their products and
competitor which helps in this project.
I have studied information regarding customer perception.
Met the internal guide Mr. M. N. Manik and discussed the
project and related information
Met the external guide and discussed the project and how it
related with perception of customers.
Holiday
Signature of student
Signature of the Internal Guide
Signature of External Guide

quality of service"
Report:- 2nd
date/day
22/5/06
Monday
23/5/06
Tuesday
24/5/06
Wednesday
25/5/06
Thursday
26/5/06
Friday
27/5/06
Saturday
28/5/06
Sunday
ACTIVITIES DONE
Started research design to know the perception of
customers towards STFC to improve the quality of
service.
Prepared objectives of study.
Met the External Guide. Discuss the research design &
objectives of the study.
Met the Internal Guide. Discuss the research design &
objectives of the study.
I made changes in the Research design & objectives of the
study as per the instruction of External guide & Internal
Guide.
Referred some standard questionnaire for preliminary draft.
Holiday

quality of service"
Report:-3rd
date/day
29/5/06
Monday
30/5/06
Tuesday
31/5/06
Wednesday
1/6/06
Thursday
2/6/06
Friday
3/6/06
Saturday
4/6/06
Sunday
ACTIVITIES DONE
Referred some Marketing Research and Consumer
Behavior book for drafting model questionnaire.
Referred some Marketing Research for drafting model
questionnaire
Met Internal & External Guide discussed the questionnaire.
Met Internal & External Guide discussed the questionnaire
Made required changes in questionnaire. As per the
instruction of Internal & External Guide.
Made minor changes in quistionnaire.
Holiday

quality of service"
Report:- 4th
date/day
5/6/06
Monday
6/6/06
Tuesday
7/6/06
Wednesday
8/6/06
Thursday
9/6/06
Friday
10/6/06
Saturday
11/6/06
Sunday
ACTIVITIES DONE
Drafted final questionnaire for customers.
Collected data required from customers.
Referred Journals & Internet for conducting survey.
I have pointed out the random sample for conducting
survey.
Circulated the consumer questionnaire for pilot testing .
After pilot testing met Internal & External Guide discuss
problem occurred during the pilot testing of questionnaire.
Holiday
Sinature of External Guide

quality of service"
Report:-5th
date/day
12/6/06
Monday
13/6/06
Tuesday
14/6/06
Wednesday
15/6/06
Thursday
16/6/06
Friday
17/6/06
Saturday
18/6/06
Sunday
ACTIVITIES DONE
After pilot testing met Internal & External Guide discuss
problem occurred during the pilot testing of questionnaire
Considering the instructions of guides prepared final
questionnaire.
Started conducting survey for 5 customer of HCV.
Holiday

quality of service"
Report:-6th
date/day
19/6/06
Monday
20/6/06
Tuesday
21/6/06
Wednesday
22/6/06
Thursday
23/6/06
Friday
24/6/06
Saturday
25/6/06
Sunday
ACTIVITIES DONE
. Started conducting survey for 5 customer of HCV.
Holiday.

quality of service"
Report:-7th
date/day
26/6/06
Monday
27/6/06
Tuesday
28/6/06
Wednesday
29/6/06
Thursday
30/6/06
Friday
1/7/06
Saturday
2/7/06
Sunday
ACTIVITIES DONE
Met Internal & External Guide showed the filled
questionnaire to them.
Started feeding questionnaire in MS-Excel.
On leave
On leave
Started making graph and analyzing the results.
Holiday

quality of service"
Report:-9th
date/day
3/7/06
Monday
4/7/06
Tuesday
5/7/06
Wednesday
6/7/06
Thursday
30/6/06
Friday
8/7/06
Saturday
9/7/06
Sunday
ACTIVITIES DONE
Started making graph and analyzing the results.
Met External guide discussed the results and findings.
Continued making the graph and analyzing the results.
Continued making graph and analyzing results.
Collected all information in one document for making
report.
On leave
Holiday

Title of the study:-"A study on Perception of customers towards
ShriRam Transport Finance Company Limited to
improve the quality of service"
Report:-10th
date/day
10/7/06
Monday
11/7/06
Tuesday
12/7/06
Wednesday
13/7/06
Thursday
14/7/06
Friday
15/706
Saturday
16/7/06
Sunday
ACTIVITIES DONE
I have showed report to internal guide.
Made required changes in the report.
I showed report to External Guide.
Made changes as per the instructions of External Guide.
Took print out.
Submitted report to the collage.
Holiday
BIBLIOGRAPHY
REFERENCE BOOKS:1. MARKETING RESEARCH
Tull and Hawkins.
2. CONSUMER BEHAVIOR
Schiffman and Kanuk.
3. MARKETING
Lamb, Hair, Mcdaniel.
WEBSITE:1. www.shriram.com
2. www.google.com.

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SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

BELGAUM INSTITUTE OF MANAGEMENT STUDIES, BELGAUM

Peoples Education Society and Trusts

Belgaum Institute of Management Studies,

A STUDY ON PERCEPTION OF CUSTOMERS TOWARDS