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Friday, August 12, 2011

NECESSITY OF STARTER

NECESSITY OF STARTER
For starting 3 Phase Induction Motor if rated voltage is given to the starter of motor very high. Starting current will flow through the motor winding. (I.e. 5 to 6 times the Running Current). This Starting or initial high current is objectionable, because it will produce large line voltages drop, Which n turn will effect the operation of other electrical Equipment and line connection to the same line.

The Starting current is controlled by apply a reduced voltage to the Stator winding during the Starting time, and then full normal voltage is applied. When the motor has run up to speed.

NOTE:-
For Small capacity motor, say up to 3HP. Full normal voltage can be applied to the start.

ADVANTAGES OF STARTER
1} To Start and stop the motor.
2} protect the motor from overload current & low voltage.
3} protect the motor from Single phasing.
4} The Starter may also reduced the applied voltage to the motor at the time of Starting.

Starter operated either Mechanical or Electrical System. It for switching on a mechanical system is used in the Starter, Then it is known as manually operated starter, If an Electromagnetic contactor is utilized, Then it is Called Electrically operated Starter. All Starters above 2HP are Usually Electrically operated. In Addition to Starter are provided with safety devices like over load relay, and no. Volt coil for protection of the motor.

TYPES OF STARTER
1} Direct on line (D.O.L.) Starter- (Mechanically Operated)
2} Direct on line (D.O.L.) Starter-(Electrically Operated)
3} Star Delta Starter (Manually Operated)
4} Star Delta Starter (Semi Automatic)
5} Star Delta Starter (Fully Automatic)
6} Slipring Motor Starter
7} Auto Transformer Starter

In the above Starter Except for the Direct in line Starter reduced voltage is applied to the stator of the motor. at the time of Starting, and normal voltage is applied once the motor pick up the Speed.

PARTS OF STARTER
1} Contactor
a) Main Contactor b) Auxiliary Contactor
2} N.V.C.
3} O.L.R.C.

SELECTION OF STARTER
Factor must be considered when selecting starting equipment for motor. I.e. starter
1} Starting Current
2} Full Load Current
3} Voltage Rating of Motor
4} Voltage Drop
5} Cycle of Operation
6} Type of Load
7} Motor protection and Safety of the operator.

PART OF STARTER
CONTACTOR:-
Contactor forms the main part in all the Starter. A Contactor may be defined like this Capable of making or Breaking the load circuit. At Frequency of 60 c/h or more. It may be operated by hand or (Mechanical). Electromagnetic, Prelatic or Electro Primate Relays.

MAIN CONTACTOR: -
There are Three sets of normally open, Main contact between Terminals. 1& 2, 3 and 4, 5&6 two sets of normally open.

AUXILARY CONTACT: -
Auxiliary Contact between terminals 2,3&24, 13&14. One set of normally closed contact between the terminals 21&22. Auxiliary Contact carries current than the main Contact.

N.V.C.(No Volt Coil):-
No Volt Coil means Electromagnetic it works on 440V. Due to this Magnetic action moving contacts to the fixed contact. Then motor run at its normal Speed.

Here N.V.C. ON push button. OFF push button and OLRC are series with the Circuit.

The Voltage between any two phases 440V. I.e. L1&L2/R&Y. This Control circuit N.V.C. becomes Magnetic. It contacts the movable contact to the fixed Contact.

O.L.R.C. (Over Load Relay Coil):- The over load relay protect the motor against high current. Normal over load existing for long times Single phasing effects.

These Relays have Characteristics. Which help the relay to open the Contractor in 10 seconds.

TYPES OF RELAYS
1} Bimetallic Over Load Relays
2} Magnetic Over Load Relays

RELAYS SETTING:-
The load relay unit is the protection center if the motor starter. Relays come in number of Ranges. Selection of a relay for a starter depends upon the Motor types, rating & Duty cycles.

For all D.O.L. Starter, relays should be set to the actual current of the motor. This value should be equal to or Lower than the full load current. Indicated on the name plate of the motor.

Set the relay to about 80% of the full load current. If it trip increase the setting to 85% or more till the Relay Holts.

In Control circuit when ON push button is pressed, the control circuit closed. The N.V.C. Coil is magnetized, and the Contactor closes. An Auxiliary a normally open contact is also actuated together with the main contact. If normally open Contact is connected in Parallel with the ON Switch. It is called a self holding Auxiliary Contact.

When for starting the motor by pressing the ON push button. Current flowing through ON Switch. N.V.C. becomes magnet due to connect 440V A.C. When ON push button released the current flowing via auxiliary contact till contactors release.

STAR.DELTA.STARTER
Necessity of Star Delta Star-Delta Starter for 3 Phase Squirrel Cage Induction Motor.
If a3 phase Squirrel cage induction motor is started directly, it takes about 6-7 times. The full load current for few seconds, and then current reduces to normal value once the speed accelerates to its rated value.

However large capacity motors, the starting current will cense too much. Voltage Fluctuations in the power lines and disturb. the other loads On the other hands, if all the Squirrel cage motors Connected to the power lines are started at the same time, They Momentarily over load the power lines, Transformers and even the alternators.

Because of these reasons, the applied voltage to the Squirrel cage motor needs to be reduced during the starting periods and regular supply could be given when the motor pick up its speed.

Following Methods of reducing the applied voltage to the Squirrel cage motor at the Start.

1} a) Star Delta Starter- (Manually Operated)
b) Star Delta Starter- (Fully Automatic)
c) Star Delta Starter- (Semi Automatic)
2} Auto Transformer Starter
3} Step Down Transformer Starter

Star-Delta Starter:- In star delta starter over load relay and under voltage protection through circuit fuses. In a Star Delta Starter, at the time of starting. The Squirrel cage motor is connected in star so that. The phase voltage us reduced to 1/1.73times. The line voltage and when motor pick up its Speed, The Windings are connected in delta. To connect delta starter to a 3 phase squirrel cage motor, all six terminals of the motor winding must be available.

MANUALLY OPERATED STAR DELTA STARTER
As the insulated handle is spring loaded, it will come back to OFF position from any position unless and until the no volt coil is Energized. When the hold on coil circuit is closed though the supply taken from U2&W2. The coil is Energized and it holds the plunger, and their by the handle is held in delta position against the spring tension by the lever plate mechanism. When the no. Volt coil is De-Energized/De-Magnetized. The Plunger falls and operates the lever plate mechanism so as to make the handle to be through to the OFF position due to spring tension. Which make it impossible for the operator to put the handle is brought to star position first, and then when the motor pick up speed, the handle is pushed to OFF position.

The Handle has a set of Baffle insulated from each other and also from the handle, When the handle is thrown to Star position, The baffles connect the supply lines. L1,L2&L3 to beginning of the 3 phase winding W1,V1&U2 respectively. At the same time the small baffles connect V2, W2&U2 Through the shorting cable to form the star point.

When the handle is thrown to delta position, The longer end of baffles connect the main supply line L1,L2&L3 to the winding terminals W1 U2,V1 W2,U1 V2 respectively to from the delta connection.

The overload relay current setting could be adjusted by the worm gear mechanism of the insulated rod. When the loads current exceed a stipulated value, the heat developed in the relay heater element. Pushes the rod to open the no. volt coil circuit, and the coil is De-magnetized, and the handle return to the OFF position Due to the spring tension.

The motor also could be stopped by operating the stop button.

ABOUT LG COMPANY

LG COMPANY PROFILE
LG Electronics was established in 1958 as gold star company in 1995 as a part of an effort to make the company a major player in world markets. The new corporate name and identity will continue to offer full satisfaction to consumers around the world and will continue to symbolized “The face of the future”

“LG ............... A new name for Gold star, A new communication to innovation. A New World of possibilities”

Gold star brand products sale in 1966 come to US$ billion which ranked 30th in the world electronics industry. The consumers more than 171 countries for offering products that deliver ultimate satisfaction know are to LG.

The LG Group is today one among Korea’s top three conglomerates. In fields angling From chemicals energy, electronics, semiconductors, machinery and metals to trade services and finance each of the 48 LG member companies is now working to the highest level of global competition in their respective industries with a combined group’s turnover of’ US $ 64 billion. LG is a new ready to rom the next quantum leap forward- LEAP 2000. The products manufactured internationally cover multimedia players, video/audio products, home appliances in formation system products, communication devices, display products, magnetic recording media devices and electronic parts and components.

LG IN INDIA - THE NEXT FORNTIER:
LG Electronic India Pvt. Ltd. (LGEIL) is a wholly owned subsidiary of LG electronics South Korea. It was established in January 1997, after clearance from the foreign investment promotion Board (FIPI3).

In May 1997 the company launched 21 Models of colours TVs ranging from 14th to 29th inches, large capacity refrigerators ranging from 320 liters to 650 liters and washing machines ranging from 5-5 kg to 10 kg. The company envisions a total investments of US $ 289 millions (Rs.1040crores) over the next 9 years which will give it a major manufacturing presence in India in a range of white and brown goods as well as in electronics of components by 2005.

The marketing vision of the LGEIL is “too established as the friendliest organization in India”. Over the years LG has developed technologies in the fields of,
Application specific integrated circuits.
Projection displays.
Digital broad costing.
High density optical disc storage.

Transforming living spaces into homes
LG believes the place where people should be full of happiness comports. Since its inception in 1958. The company has worked to create happy and convent homes. All this laid the foundation for the company to develop:

Smallest personal digital assistant ( PDA) :
Handheld PCs
Refrigerators.
Washing machines.
Colour TVs.
Dish washers.
Micro waves.
Vacuum Cleaners.
Air conditioners.
Audio Systems.
Multi Media PCs.
Video equipments.
CDs players.
Video on Dem (VOD) system.
Wall hanging audio systems.
Cam corders.

LG CORPORATION
CURTAIN RAISER TO THE TELEVISION INDUSTRY:
Television sales in the year ended 31st march 2002 was estimated 56 lakhs units with a value of RS.8000 crores. The year saw a sharp decline in selling price especially for the top and models, narrowing the prices brand for the product category the price decline is coming with innovative consumer need to a sharp increasing sales of colour TVs as compare to other goods.

The average sales price of the whole industry was however increased indicating a shift in consumer preference to higher and models. Among the major players BPL was only Indian company register growth and is currently market leader. The MNC brands Akai, Daewoo, LG, Thomson, Sony and Samsung have registered growth albeit over very small basis. The best known colour TV world wide Sony, however decline in value of sales probably this is a reflection of Sony strategy of not waiting to get involved in price world.

Among the various size segments the 29 segments has grown faster. thanks to Akai aggressive pricing and intensive schemes. At the same time surprisingly in the 20 segments was grown faster then more popular 21 segments. Akai clearly has been the most high profile brand of the year end has made huge gains. Its strategy of using pricing and replacements schemes was working well. TV had emerged from a dream in the lab as far back as the 1880s to a prominent element in American life by 1970. The US TV industries were borned for practical purpose light after world war second. It had grown by 1970s as a major between and later colour set.

Early development in TV:
The initial development of TV occurred in a number of countries. From the early all mechanical systems by the end of 1930s world war It’s. After the 1st war it was resumed notably in the labs of J.L.Baired in England and C.F. Jenkins and GECO in the labs of J.L.Baired gave the 1st demonstration of TV in 1962 by electrically transmitting making pictures in half tones.

Introductions of colour TVs;
Invention of colour TVs: The Americans invented the 1st colour TV, but it was the Japanese and Koreans who maintained by the millions in the US market even as they hunted the natives out of their own turf. And now they are eying the Indian, territory even as domestic manufactures scream.

Potential of CTV in the Work!: As far as the potential of CTVs in the world is concerned Hong Kong is placed the highest in the world. Because there are 426 CTVs per thousand people followed by Singapore with 326, Malaysia with 144, China with 127 thousand with 108 Philippines with 46, Vietnam with 37 and India which takes the last place with 33.

Potential of CTV on India:- Action is the word to description the CTV market in India. At no other times so many models and brands available in the Indian market. The flooding of the brands in the market has ensured at least one thing increased competition for the existing Indian players. This has lead to dramatic changes price are tumbling which is also contributed by the decrease in duties on imported TVs.

A change however is not new to the Indian CTV market. Since the launch of CTV in India during the year 1982 through eighties. The Indian TV market was dominated by a handful of players like Weston, crown, dyanora, bush and the Government owned E.C. This saw dramatic change with the entry of three brands BPL, Videocon and Onida. All three have positioned in different segments. Onida on the quality it offered onida pricing is based on that it has high import content than the others. They reckoned that for the best quality a price had to be paid. Hence, the Indian market maintained tremendous growth after the entry of new Indian companies. But the ultimate change was notice after a few MNCs like Samsung, Aiwa, Sony, Panasonic, Akai, TCL and others started marketing their respective products in India. The customers were provided more choices in terms of purchases with very competitive after sales and service.

MAJOR PLAYERS
The attempts have however given raise to more questions than answers.
LG have 11% of market Share.
Onida have 13% of market Share.
Aiwa have 10% of market Share.
BPL have 20.3% of market Share.
Samsung have 10% of market Share.
Videocon have 19% of market Share.
Sony have 03% of market Share.
Philips have 5.5% of market Share.
Sharp have 03% of market Share.
Akai have 02% of market Share.
Thomson have 02% of market Share.
Others have 2.2% of market Share.

BUILDING A NEW YOUTHFUL CORPORATE CULTURE:
LG Electronics is a company with a flexible creates culture. A culture that is unique and embracing as well as active and ambitious.

As a trendsetter is a Korean labour relations. LG Electronics provide its employees with shorter work weeks as well as flexible working hours 1993. LG Electronics become the first Korean company to adopt a flex time system by allowing the employees to set their work hours. The company has enhanced job satisfaction while providing greater opportunity for self employment.

The company’s actively has rededicated itself to providing the words kindest service and is now conducting a major service campaign under the slog on “Kindness first“. A corporate culture where young people can find job satisfaction. A culture that is both active and productive and culture that would do anything for customers. That is kind of culture LG Electronics is building today.

To commemorate the completion of one year manufacturing operations in India. LG unveiled “Millenic dream” a range of home appliances for its consumers in the country. When LG entered to India it wanted to become the number 1 home appliances and consumer electronics company by 2005.

PREMIUM PRICING
The result its colour TVs price at a maximum of Rs.21000 for a 21” model were at least 10% higher then even Sony says Karwal. The analvsis show that most of the competitors were catering to the lower and middle segments. Thus, we decided to concentrate on the premium segments. The strategy to offer value propositions to the customer through honest pricing is that of the long term players in hind sight it has paid rich dividends.

LG is stand ling other price segments too by capitalizing on the brand image and positioning built around reliability and quality while that could dilute its premium perch in the short term, it will enable LG Electronics to go market share in the long run.

PACKING :
It was obvious that LG could not waste anytime being among the last to entree the market. So that 20 month schedule to commission its manufacturing plant was compressed to 10 months and it also decided to go in far a nation wide launch and appointed. 1000 dealers in just 5 months in 1997. Finally the company entered 3 months categories. Simultaneously, ensuring adequate retail space explains Karla. This identity ensured that we were able to build up the market for our products faster than we would have done if we had launch models with innovative features at regular intervals. LG Electronics range include 24 models of colour TVs, 6 washing machines and 11 refrigerator models, but it needs to aggressively introduce more models like the proposed launch of the digital TV by 2000 to effectively combat is competitors whose multi branding strategy is a notch above LG Electronics.

PENETRATION:
Pace was followed aggressively penetration. Having established 18 branch officer and 6 ‘C’ and ‘F’ agents in Goa and pondichery to take advantage of the sales tax benefits in these areas and town like Ranchi (Bihar). This will rise to 3500 dealers to cater to rich rural. The company has 8 mobile vans covering nearly 4500 Km of the hinter lands around the 4 metros every month. All this is backed by an estimated annual spend and market support expenses of Rs. 28 crows in 1999. However, none of this will succeed unless, it is backed by product and pricing flexibility. Clearly what LG Electronics needs to do is to develop “Golden Eye” to the changing demand of the customer automatically.

STRATEGIES
Business strategies:
Penetration in to rural markets-LG has developed its new customized T’V being developed for the rural market “Sampoorna”.

Advertisement Strategies:
LG is one of the major splendors on advertisements during World Cup Cricket 1999. They had spent 15 crores. LG Korea was the official supplier of consumer electronics and home appliances at the World Cup Cricket.

LG Electronics as also tried to cash in on the festive sprit by launching a special discounts schemes during the Durga pooja and Diwali Festivals in states like West Bengal, Karnataka, Orissa and the State of the North, East. The reason of these festivals is treated as a special occasion for buying new house hold items. The customer was cared with loyalty rewards on the purchase of any LG product. The reward would enable them to get a discount of 10% on their next purchase. A skill quiz with a trip to Switzerland as a price was also run. The Korean measure LG Electronics has introduced new colour TV models, falling under the “Golden Eye” series in corpora ting new colour TV models falling under the best available technology. The Golden Eye series will have mechanism to direct the slightest variation in any of the six aspects of light brightness, colour, contrast, sharpness, tint and balance and the TV will get automatically adjusted. (as per 2004)

Thursday, August 11, 2011

ABOUT SONY COMPANY

COMPANY PROFILE SONY
Sony’s humble beginning started in Japan in 1946 from the sheer determination and hard work of two bright and enterprising young men. Both Masaru Ibuka and Akio Morita joined hands in making their dream of a successful global company a reality. Learn more about who we are and what we do in this section.

Sony’s Story:
It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionate and committed group of employees started to build “tokyo Tsushin Kenkyujo” (Totsuko), or “Tokyo telecommunications research insituted” to the billion dollar global conglomerate that it is today.

Product Milestones:
Sony is one of the World’s manufacturers for consumer electronics and broadcast & professional products. Established for more half a decade, Sony is known for it innovative and high quality products. This section brings you through Sony products from its establishment till now.

Overview:
Sony India a leader in the consumer electronics brand in the country, aims to make a difference to people’s lifestyles and offer them new dimensions of enjoyment.

Company Outline:
Sony Corporation, Japan, established its India operations in November 1994, focusing on the sales and marketing of Sony products in the country.

Location:
Sony has expanded its operation in 21 Branches for Sales & Marketing to provide services all over India. Its expected to grow further in near future.

Our founders in the early Years:
It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionate and committed group of employees started to build “Tokyo Tsushin Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” to the billion dollar global conglomerate that it is today. The main objective of the company was to design and create innovative products which would benefit the people.

The Electric Rice Cooker:
From early attempts at creating products like the rice-cooker to the later success of creating Japan’s first magnetic recorder, the innovative company went on to create other hit products which won the company widespread recognition and international acclaim as a truly global company known for its quality and innovative products. significant product milestones included Japan’s first transistor radio (1955), Trinitron colour television (1968), Walkman personal stereo (1979), Handycam Videocamera (1989), PlayStation (1994), Blu-ray Disc recorder (2003) and Play Station 3 (2006).

Sony Employees in 1956:
The company name of Sony was created by combining two words of “Sonus” and Sonny”. The word “Sonus” in Latin represent words like sound and sonic. The other word “Sonny” means little son. Used in combination, Sony is supposed to represent a very small group of young people who have the energy and passion towards unlimited creations and innovative ideas. With the far-sight of expanding worldwide, it was in 1958 that the company formally adopted “Sony Corporation” as its corporate name. Easy to pronounce and read in any language, the name Sony, which has a lively ring to it, fits comfortably with the spirit of freedom and open mindedness.

One of the most recognized brand names in the world today, Sony Corporation, Japan, established its India operations in November 1994, focusing on the sales and marketing of Sony products in the country. In a span of 15 years Sony products in the country. In a span of 15 years Sony India has exemplified the quest for excellence in the world of digital life style becoming the country’s foremost consumer electronics brand. With relentless commitment to quality.

Consistent dedication to customer satisfaction and unparalleled standards of service, Sony India is recognized as a benchmark for new age technology, superior quality, digital concepts and personalized service that has ensured loyal customers and nationwide acclaim in the industry.

With brands names such as BRAVIA, XPLOD, Sony hi-fi, Handycam, Cyber-shot, VAIO, Walkman, Memory stick, PlayStation. Sony has established it self as a value leader across its various product categories of Audio/Visual Entertainment products, Information and Communications, recording Media, Business and Professional products.

In India, Sony has its footprint across all major towns and cities through a distribution network comprising of over 4000 dealers and distributors, 240 exclusive Sony outlets and 19 direct branch locations. Manned by customer friendly and informed sales persons, Sony’s exclusive stores ‘Sony Center’ are fast becoming the most visible face of the company in India.

Sony India also has a strong service presence across the country with 20 company owned and 190 authorized service centers. A distinctive feature of Sony’s service is its highly motivated and well-trained staff that provided the kind of attentive and sensitive service that is rare today.

Sony is committed to ensuring that both the products and the marketing activities employed truly make a difference to people’s lifestyles and offer them new dimensions of enjoyment.

Company Outline:
Company :
Sony India Pvt., Ltd.
Managing Director : Mr.Masaru Tamagawa
Date of Establishment : 17th November, 1994.
Location : A-31, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi.
Staff Strength : 728
Share Capital : Rs.550 Million
Share Holding : 100% subsidiary of Sony Corporation, Japan.

Branch Offices :
Delhi, Haryana, Mumbai, Bangalore, Chennai, Kolkatta, Hyderabad, Vijayawadas, Jaipur, Chandigarh, Lucknow, Pune, Ahmedabad, Indore, Cochin, Coimbattore, Ghaziabad, Guwahati, Mangalore and Ranchi.


Business Activities :
Marketing, Sales and After-sales Service of electronic products & software exports Products: Televisions, Hi-fi Audios, Home Theater systems and DVD players, Personal Audio (CD/Cassette Radio Players and Walkman), Audio video Accessories, Car Audio Visual Systems, Notebooks, gaming Consoles, Camcorders and Digital Still Cameras, Digital Imaging Accessory Batteries, Chargers, Microphone, Photo Printers). Mobile Phones, Recording Mediea.

Sony in India:
Sony in India has exemplified the quest for excellence in the world of digital lifestyle becoming the country foremost consumer electronics brand with relentless commitment to quality consistent dedication to customer satisfaction and unparallel standards of service, Sony in India is recognized as a benchmark for new age technology, superior quality concepts and personalized service that has ensured loyal customers and nationwide acclaim in the industry.

Sony is not new to India whether it was television or the walkman a Sony always remained in the wish list of India, the love for the Sony brand culminated in a new set up a 10% subsidiary called Sony India on 16 January 1995. The company has evolved into a luminous brand with a unique selling proposition technology innovation and premium quality in the field of hi-tech entertainment. Today a part from the being personal favorites of millions, Sony is also preferred choice for professional requirements.

Sony in India focused towards making a difference in the lifestyles in the India and up new entertainment in the country. Sony in India remains committed towards offering new technology, new models and digital concepts, while working in hand with Indian industry, their consistent commitment towards service has brought the company quite close to the Indian customers. (these informations are as per under the year-2004)

ONIDA COMPANY PROFILE

THE INDIAN ELECTRONICS INDUSTRY
India is the firth largest economy in the world and has the second largest GDP. Among emerging economies. Owing to its large population, the potential consumer demand is almost unlimited and consequently under appropriate conditions, strong growth performance can be expected.

In fact, the liberalization of the economy in 1991 has led to rapid growth. The electronics industry, in particular is emerging as one of the most important industry in the Indian market.

The electronics industry in India dates back to the early 1960s. Electronics was initially restricted to the development and maintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphic communication, and augmentation of defense capabilities. Until 1984, the electronics sector was primarily government owned. The late 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting in the liberalization and globalization of the economy. The economic transformation was motivated by two compelling factors–the determination to boost economic growth, and to accelerate the development of export-oriented industries, like the electronics industry.

The electronics industry has recorded very high growth in subsequent years. By 1991, private investments both foreign and domestic were encouraged. The easing of foreign investment norms, allowance of 100 perce1t foreign equity, reduction in custom tariffs, and delicensing of several consumer electronic products attracted remarkable amount of foreign collaboration and investment. The domestic industry also responded favourably to the politic policies of the government. The opening of the electronics field to private sector enabled entrepreneurs to establish industries hitherto suppressed demand.

Improvements in the electronics industry have not been limited to a particular segment, but encompass all its sectors. Strides have been made in the areas of commercial electronics, software, telecommunications, instrumentation, positioning and networking systems, and defense. The result has been a significant trade growth that began in the late 1990s.

The Indian Electronics Industry is a text for investors who are considering India as a potential investment opportunity.

Various segment of India’s electronics industry, which include telecommunications, consumer electronics, computer hardware and software, and medical electronic systems.

Brief History of the Television industry:
Television technology was actually first developed in the 19th century, before commercial radio was conceived of, when, in 1897, Ferdinant Braun invented the cathode ray tube. The first time the cathode ray tube was used to produce images was in 1907.

The tube was an essential step in the invention of television, followed by Philo Farnsworth and Vladimir Zworykin’s independent developments of the image dissector and iconoscope. By the end of the 1920s, the United States had a total of fifteen experimental stations for mechanical television. In 1929, Herbert Hoover, at the time Secretary of commerce, made an appearance on the rnechanca1 television. In 1929, Herbert Hoovert, at the time the Secretary of Commerce, made an appearance on the mechanical television of AT&T. RC, the pioneer in broadcast development, did broadcasting experiments in the early 1930s.

World War II delayed the commercial development of the television, although research and development targeted for the war effort resulted in the possibility of better products for consumers. At the close of World War II, there was less than 7,000 working television sets, and only nine stations on the air, in the entire country. The United States was the leader in television technology, primarily because advances were made directly before, during and after WWII, when America’s major competitors in television development, Germany and England, halted their research programs.

The earliest television networks in the United States (NBC, CBS, ABC and DuMont) were actually part of the larger radio network systems, and many of the early television shows were simulcasts of popular radio shows. In 1951, ABC merged with United Paramount Theaters, gaining sizable financial resources with which to compete in a fierce television market. During the first five years of the 1950s ownership of televisions skyrocketed, affecting other forms of entertainment available to the public.

About United Electronic Industries Inc.:
United Electronic Industries “The High Performance Alternative” is a manufacturer of high-end hardware and software for data acquisition, instrumentation, automation and control located in Canton, M. The firm has served as a source of quality products and services since 1990.

Its products fall into few major families
Power PAQ boards for both the PCI and PXI.
Power DNA-Distributed Networked Automation system.

History of Electronic Media:
This course traces the history of electronic media as they have become the dominant source for entertainment and information in contemporary culture starting with over the air broadcasting of radio and television through to cable and the “narrow casting” achieved by digital technologies; while some attention will be paid to other national industries, the chief focus of the course will be on electronic media in the United States to determine, in part, the transformative role they have paid in the cultural life of the nation. The course explore the relationship of the electronic media industries to the American film industry, determining how their inter actions with the film industries helped mutually shape the productions of both film and electronic media.

HISTORY OF THE COMPANY:
Company Profile:
Onida has been recognised as one of the most prestigious organisations evoking pride of ownership by offering unmatched quality products through innovation, speed, flexibility and empowered employees.

The Onida Group, one of the India’s largest consumer Electronic companies was established in the year 1975. The group comprise of Onida Savah, Onida Saka, Akasaka, IWAI, Onida Finance, Audio telecom and Onida resorts.

The group has its manufacturing exists at Thane and Wada in Mumbai along with Noida in Delhi. The Wada project, the largest in the Asia pacific region has state of the machinery and technology, which enables it to have a production capacity of one million colour TVS per annum of which 6,00,000 TV sets are already being manufactured annually.

Gulu Lalchand Mirchandani is chairman of the Onida group of companies, as well as Managing Director and Chairman Mire Electronics Limited, flagship company of the Onida group.

Product Profile:
Choosing the right DVD player is not a trivial matter flooded with products from various hardware vendors. There are more than several players to choose from in each price category in the notion of spending more money will buy you better performance does not always apply here, especially when DVD players’ are concerned. Usually when you spend money on a unit, it will offer you more features, better remotes and more usable interactive on screen displays (OSD’s) with marginal if any empowerments in audio or video performance. The purpose of the DVD or CD player buying guidelines is to help. Educate the consumer about DVD players and assist them in choosing the best model for their needs based upon budget, performance expectations and systems compatibility.

Audio Performance:
The majority of DVD users operator player primarily as a DVD player with a Dolby Digital source. Even if one wanted to use it as a CD player, good performance may be achieved by passing the internal PAC’s of the DVD players and using it has a transport only in your digital system. Audio performance should only be considered a critical issue if you plan on using the DVD players analog outputs for DVD audio / SACP for 96 / 242-Channel music.

Video Performance:
Most DVD players have excellent video performance, for exceeding capabilities of the VCR or cable TV for that matter. However there are subtle differences between players to the trained eye, which may be noticeable enough to prefer one brand over the other. One common occurrence on some of the 1st generation players was the presence of scan lines and / black vertical bars faintly present in the background while viewing the DVD, when comparing DVD players one important video characteristics, to note is the ratio of darkness to luminence you can do this by choosing a DVD with scenes that have bright clear colours with dark black backgrounds. Pay attention how black the blacks are. Darker is better. Some DVD players have video options to custom tailor the picture. Make sure all video options on the DVD player are disabled when performing this test (15 colour, contrast, brightness etc) color accuracy and richness are also important characteristics of video quality. Play careful attention to the realism of color and how details the picture is when switching between different players our recommendations is to choose a DVD audio or video the offers progressive scan, almost of all TV’s being sold today are digital ready and you will click yourself in the future should you decide to upgrade to an HDTV ready TV and not have a progressive scan DVD players.

STATE BANK OF INDIA

History of Bank:
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2nd June 1806. Three years later the bank received its character and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first Joint-Stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1st July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the imperial Bank of India on 27 January 1921.

In order to make the Reserve Bank of India more powerful the Indian Government nationalized it on January 1, 1949. With a view to have he co-ordinate regulation of Indian banking the Indian banking act was passed in March 1949. According this act the reserve Bank of India was granted extended powers for the inspection of non-scheduled banks. For the development of the banking facilities in the rural areas the imperial bank of India was partially nationalized on 1 July, 1955 and it was named as the state bank of India, SBI has completed 200 years of its business in India, SBI has completed 200 years of its business in India.

The State Bank of India is the biggest commercial bank in public sector of India. The maximum share capital of its associate banks is lying with the SBI conducts nearly 26.2% of the total banking transaction in the total Banking transactions in the country while 31.9% is performed by the nationalized banks.

The State Bank has established a specialized agency SBI. Gilfs Ltd. For buying and setting the Government Securities.

The State Bank of India, the country’s oldest Bank and a premier in terms of balance sheet size, number of branches, market capitalization and profits is today going through a momentous phase of Change and Transformation - the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups - Pension Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale Merchant Acquisition, Advisory Services, structured products etc - each one of these initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking models to expand its Rural Banking base, looking at the vast untapped potential in the hinterland and proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. It is consolidating its global treasury operations and entering into structured products and derivative instruments. Today, the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. It is the only Indian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread ail over the country the Bank is continuously engaged in skill enhancement of its employees. Some of the training program’s are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as internationally. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India - SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process of raising capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets, attitudes and take all employees together on this exciting road to Transformation. In

Vision:-
My SBI
My customer first,
My SBI: first in customer satisfaction.

Mission:-
We will be prompt, polite and proactive with our customer.
We will speak the language of young India.
We will create products and services that help our customers achieve their goals.
We will go beyond the call of duty to make our customer feel valued.
We will be of service even in the remotest part of our country.
We will excellence in services to those abroad as much as we do to those in India.
We will imbibe state of art technology to drive excellence.

Values:-
We will always be honest, transparent and ethical.
We will respect our customers and fellow associates.
We will be knowledge driven.
We will learn and we will share our learning.
We will never take the easy way out.
We will do everything we can to contribute to the community we work in.
We will nurture pride in India.

Important facts related to the state bank of India
After partial nationalization of the imperial bank of India in 1955 July 1st. its name was changed as state bank of India. In this way, the state bank was established 1955. SBI has completed 200 years of its business in India.
The state bank of India is the biggest commercial bank in public sector of India.
The maximum share capital of its associate banks is lying with the SBI conducts nearly 26.2% of the banking transactions in the country. While 31.9%. is perfumed by the nationalized banks.
The state bank has established a specialized agency SBI gilts Ltd. For buying and selling the government securities.
All commercial public sector banks were directed by RBI attain 9% capital adequacy ratio by 31st march 2000. State bank of India already achieved this target in March 1996(11.6%).

Parliament approves SBI (Amendment) Bill 2007:
Parliament on august 23,2007 finally passed the SBI (Amendment) Bill 2007 to replace the ordinance issued by the government in June 2007, enabling the transfer of RBI 59.73%. State in state bank of India to the union government. The SBI (Amendment) bill 2007 was approved by the rajya sabha on august 23,2007 while it got lok sabha’s approved on august 21,2007.

State Bank of India is the largest public sector bank in the country. On June 30, 2007. 14082 branches of SBI & associates were working in the country. SBI group also includes 16 state banks of sourastra associate banks other than merge with SBI-2008. the share capital of these associated banks has been reserved with SBI. SBI GROUP (i.e. SBI and its 16 associated banks) has about 26.6% share in total banking business in the country. During 2006-07, state bank of India earned the net profit of Rs.4531 crore, after SBI, Punjab national bank with Rs.l421crore during 2006-07.

Provisions made in SBI subsidiary (amendment):
Allows SBI to down holding to 51 %.
Paves was for raising capital through preferential share issue. Private placement or public issue.
Permits issuance of bonus shares.
Removes restriction on individual shareholding.
Increase in voting rights of share holders other than SBI to 10% from 1%.

Bill Introduced in parliament to raise SBI Authorized capital to Rs. 5000 crore:
The state bank of India bill has been introduced in the parliament on 18th December,2006 to enable it to raise funds to meet future capital requirements and increase it s authorized capital toRs.5000 crore from Rs.20 crore. This bill also amends the SBI Act, 1955 to reduce the minimum holding by RBI in the bank to 51%. RBI at present holds 59.73% in the SBI. After the parliament’s approval of the bill, SBI can issue fresh equity and raise capital .it can even off load 8.73%.of existing equity in the domestic market. The government is also finalized plans to buy 59.73%. Stake from RBI.

According to the proposed amendments. The central board of the amendments, the central board of the bank can increase the issued capital by public issue or preferential allotment or private placement; the bank will also be allowed to issue bonus shares which it could not do under the existing act. SBI shareholders will now be able to name their successor to take their share after their death.

It has also been proposed in the bill to empower the center to supersede the SBI broad on the recommendation of RBI. The central bank can do so in public interest or for securing proper management of SBI or preventing the affairs of SBI being conducted in a manner detrimental to the interest of depositors.

SBI hints at interest rate like in April:
Lending rates may go up only from the first quarter of the next fiscal, the State Bank of India, Chairman Mr. O.P. Bhatt, hinted here today. SBI is likely to take a call on hiking the lending rates by March end.

This is even as the Reserve Bank of India recently came up with a 75 basis point increase in the cash Reserve Ratio, which will remove Rs. 36,000 crore from the banking system in two states beginning February 13.

“The CRR hike will affect liquidity to some extent not lending rates. I expect the lending rates. I expect the landing rates to go up, but not before May-June, Mr. O.P. Bhatt told reporters on the sidelines of an event to mark the launch of SBI’s defence salary package for navy.

He said that SBI’s credit growth during the current fiscal is expected to the 16-18 percent “It was about 17 percent till end December 2009”.

On SBI’s 8 percent reaser rates for home loans, Mr. Butt said the RBI had not objected to teaser rates. SBI would not have introduced this scheme if the regulator had objected, he said on the Merger of State Bank of Indore with SBI, Mr. Bhatt said the process would be completed by end March.

Buys RBI’s Entire stake in SBI:
With the biggest even cash purchase, the government on June 29, 2007 acquired the Reserve Bank of India’s entire 59.73% stake in State Bank of India for a total consideration of about Rs. 35,531.33 crore. As per this transaction the government has acquired 314339200 equity, shares with a face value of Rs. 10 each at Rs. 1130.35 per share at a total amount of Rs. 35531.33 crore. It is worth noting that the union cabinet on June 15, 2007 had approved an ordinance to amend the State Bank of India Act 1955 and made the road clear for the transfer of the Reserve Bank’s 59.7%. Stake in State Bank of India to the government. A bill has been planned to be moved in the coming session of parliament to replace this ordinance which placed the time limit of this transaction to be completed by June 30, 2007 (i.e., the end of RBI’s financial year).

In budget 2007-08 Financial Minister had announced that the government would by the RBI’s stake in SBI at an estimated market value of Rs. 40,000 crore to separate ownership and regulatory functions of the central bank.

Based on the European Banking system, the first bank in the country was started at Calcutta in 1770 by Alexander and company. It was named as ‘Bank of Hindustan’, but this bank was not successful.

With the financial assistance of the Government the Private owners established the Bank of Bengal in 1806, the Bank of Bombay in 1840, and the Bank of Madras in 1843. These Banks were called the presidency Banks. The presidency Banks has the right to issue paper currency notes till 1862.
In 1921, the Imperial Bank of India was established after merging these entire three presidency Banks.
On July 1, 1955 the imperial Bank was partially nationalized and it was named as the State Bank of India. At present, the State Bank is the largest Commercial Bank in the country. State Bank of India has completed 900 years of banking business in India.

Board of Directors
Sri O.P.Bhatt
– Chairman
Sri R.Shridhra – Director
Sri Bharati Rao – Director
Sri V.Kannan – Director
Sri B.K. Vastav – Independent Director
Sri Y. Vijayanand – Independent Director
Smt Bhama Krishnamurty – Director
Sri S.Rajendra – Director
Sri Ashwin Ankhad – Independent Director
Sri Sangeet Shukul – Executive vice Chairman and CEO.

Wednesday, August 10, 2011

PROFILE OF LIC

PROFILE OF LIC
Life Insurance in India since Vedic times, arrived here from England in its modern from only in the year 1818, to insure Europeans and support their windows entered ‘Bombay Mutual Life Assurance Society” in 1870 the First India Insurance Company, with just seven rupees for initial expenses. Later, Lala Harikishanlal launched “Bharat Insurance Company” at Lahore In 1896.

In early days of 1956 nationalization of Life Insurance was taking concrete shape Life insurance was nationalized in the public interest as a public utility and as a social service in the words of the Finance Minister Mr.C.D.Deshmukh.

“Yogakshema” building was inaugurated by Pandit Jawaharlal Nehru in 1963, by opening the gates with a silver key “Yogakshema” LIC corporate office is not the only Landmark building at LIC. The corporation also happens to be one of the largest property owner in India second only.

Historical Background:
The Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा निगम) is the largest life insurance company in India, and also the country's largest investor.; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 8 Trillion Rupees (or about $170 Billion dollars). It was founded in 1956.

The Life Insurance Corporation of India (LIC), a public sector enterprise, is the largest insurance company in India, selling insurance products and related services.

In March 2001, LIC had a total asset base of Rs 1936.2 billion and a total premium income of Rs 342.07 billion. By April 2002, the total sum assured under 23.2 million policies stood at Rs 1925.7 billion. LIC had a variety of insurance plans to cater to various categories of people and their diverse needs.

The company offered life insurance and group insurance. It also provided social security schemes and pension schemes. Each of its business products offered a variety of different plans to suit different customers and situations. Investment in LIC was considered by a majority of its customers to be reliable and secure.

Housing loans were granted through its subsidiary and LIC sold its market savings and investment products through its mutual fund subsidiary, LIC Mutual Fund Ltd. To serve its 140 million policyholders (2001 end), the insurance giant had 1.25 lakh employees and 6.51 lakh agents across the country.

The company, which was based in Mumbai, had seven zonal offices, 100 divisional offices, and 2,048 branch offices that spanned the country. LIC's penetration in rural areas was very high; 18% of its total business came from rural areas.

Since LIC enjoyed monopoly status for over four decades, it emerged as one of the key public fundraisers in India. However, things began changing in the mid-1990s, when the Government of India decided to privatize the insurance sector.

Subsidiaries:
In the late 1980s, LIC established a few subsidiaries with a view to expanding its services. These were LIC Housing Finance Limited, LIC Mutual Fund, Life Insurance Corporation (International) E.C. and LIC (Nepal).

Associates
LIC HFL Financial Services LTD.
LIC Housing Finance LTD.
LICHLF Care Homes LTD.
LIC Mutual Fund AMC LTD.
LIC Cards Services LTD.
LIC Pension Fund LTD.

Current Scenario:
LIC existence is of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2008.

The organization now comprises 2048 branches, 109 divisional offices and 8 zonal offices, and employs over 1,002,149 agents. The corporate Office of LIC is in Mumbai. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians.

With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. However, it still manages to be the largest player in the Indian market, with the lion's share of 55%.

The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand of the Country. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world).

LIC owns the following subsidiaries:
Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries.

LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal.

LIC Lanka: A joint venture company formed in 2003 with the Bartlett Group of Companies, Sri Lanka.

LIC Housing Finance: Incorporated in 19 June 1989, its main objective is to provide long term finance for construction or purchase of houses or apartments. It has a Dubai office.

LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it builds & operates "Assisted Community Living Centers" for senior citizens.

Nature of Business carried:
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilization’s partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person:
That of dying prematurely leaving a dependent family to fend for it.
That of living till old age without visible means of support.

Types of Insurance
Life Insurance -
Insurance guaranteeing a specific sum of money to a designated beneficiary upon the death of the insured, or to the insured if he or she lives beyond a certain age.
Health Insurance - Insurance against expenses incurred through illness of the insured.
Liability Insurance - This insures property such as automobiles, property and professional/business mishaps.

Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

Mission
"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Area of operation
Corporate Office- Mumbai.
Zonal offices-8
Divisional offices-100
Branch offices-2048
Agents 10,021,149

Ownership Pattern Competitors :
Aviva Life Insurance
Bajaj Allianz Life Insurance
Birla Sun-Life Insurance
HDFC Standard Life Insurance
ING Vysya Life Insurance
Max New York Life Insurance
MetLife Insurance
Om Kotak Mahindra Life Insurance
Reliance Life Insurance
Sahara India Life Insurance
SBI Life Insurance
TATA AIG Life Insurance
General Insurance Companies
Agriculture Insurance
Amsure Insurance
ANZ Insurance
Bajaj Allianz General Insurance
Cholamandalam General Insurance
Employee State Insurance
Export Credit Guarantee Corporation
ICICI Lombard General Insurance
National Insurance
Oriental Insurance
Peerless Smart Financial
Royal Sundaram Alliance
TATA AIG General Insurance
Bharti AXA Life Insurance.

KSFC Profile

INTRODUCTION:
Financial institution play very important role in the economy of any country. These institutions facilitate covenant and effective channels of savings and investments, in a developing country like India, the role of these institutions becomes more pronounced in order to achieve rapid economic growth. Considering the need for such institutions, industrial financial corporation of India (IFCI) was setup in 1948.


At the same time it was felt that there is necessity to establish similar institution with a view to assisting smaller industries in different state needs of all the same concerns sprawled all over the country.


Karnataka financial corporation was established by the government of Karnataka on 30th March 1959 under the provisions of SFC at 1951 passed. All along, KSFC has played a pioneer role in the development of micro and small scale enterprises in the state of Karnataka. It has fulfilled the objectives of developmental lending such as industrialization of backward areas, assistance to weaker sections, promoting first generation entrepreneurs, assistance technocrats and women, several units, which received start up assistance from KSFC have today become large industrial conglomerates. By now there are 18 SFC’s functioning in the different states of the Indian union, these institution are closely modeled on the lines of IFCI, but different in the scope of there activities.


The principal objective behind setting of SFC’S is to provide medium and long term financial assistance to small and medium enterprise particularly when normal banking accommodation is not available, the other objectives are

Economic growth.
Balanced regional growth.
Widening of the entrepreneurial base through encouragement of new entrepreneurs.

INTRODUCTION OF KSFC:
Karnataka state financial corporation is a state level financial institution established by the state government in the year 1959 under the state financial corporations act 1951to meet mainly the long term financial needs of small and medium enterprises (SME’s) in the state of Karnataka.

The Karnataka state financial corporation, which prior to November 1,1973, was known as the mysore state financial corporation, was established on march 30th 1959,the n government of mysore established the Karnataka state financial corporation by notification no:FD.28 BIS 59 dated 30th march 1959.


The mysore government at Rs.2 crores fixed the authorized share capital, as compared to this, todays authorized share capital is Rs.8168.38 crorers with a provision that the state government of Karnataka, the recommendation of small industries development bank of India, increase the authorized capital to Rs.9102 crores.


Today while the state economy is making rapid strides in the global market. Karnataka state financial corporation is moving in tandem, as a pioneering and responsive financial institution, Karnataka state financial corporation is fine tuned to fulfill the plans and aspirations of entrepreneurs by extending all possible assistance.


Amendments to the SFCs act provide for wide ranging scope of assistance and operational flexibility, keeping this in view, Karnataka state financial corporation has reengineered itself to ensure utmost customer satisfaction with new energy, trust and speed.


In the 50 years of existence, Karnataka state financial corporation has contributed most significantly for the growth of SSI’S, back word areas development and promotion of first generation entrepreneurs, its achievement in these areas is unparalleled. Since inception , Karnataka state financial corporation has assisted more then 1.60 units with cumulative sanction of over Rs. 9102 crores out of which more then 50% is towards SSI’S.


Karnataka state financial corporation an ISO 9001:2000 certified organization proved to have played a major role in the industrial development of the state, it is also the proved privilege of , Karnataka state financial corporation to have assisted many industries that are internationally recognized like the INFSYS and BIOCON.

OBJECTIVES OF KSFC:
The corporation has the been established with the basic objectives of promoting industrial development in Karnataka. KSFC was desired to give particular emphasized small and medium scale industries keeping inline with the IDBI and SIDBI and either specialized institution or the government. It was felt that no industrial project which is due important should not perish due to lack of timely and adequate finance.

QUALITY OF OBJECTIVES:
to ensure satisfaction through team work and professional management,
to extend effective guidance through entrepreneurs for successful accomplishment of their business venture, to provide good quality of service on a continued basis to the satisfaction of the customer To attain specified level. Of performance with statutory and regularly requirement,
To encourage every one in the organization to upgrade and enhance their skill and knowledge with.

MISSION OF KSFC:
To be premier, self sustained financial institution for catalyzing, creating and sustaining viable investment in the small scale and medium sector of industry and services and the financial sectors in the state of Karnataka.

vISION OF KSFC:
to reach and cover the entire state of Karnataka
to suit the knowledge of each region in terms of infrastructure and nature resources industrialization and entrepreneurship,
Specialization in the appraisal, monitoring a recovery of loan of SSI/MSI and other new fund based and fee based activities.
A continuous journey towards the development of SSI entrepreneurs.

FUNCTIONS OF KSFC:
According to sec25 of SFCs act 1951. The function of KSFC includes:

1) Guaranteeing on such terms and conditions as may be agreed upon,
2) Loans raised by industrial concerns, which are repayable within a period not exceeding 20 year’s and floated in the public market.
3) Loans raised by industrial concerns, from scheduled banks or state co-operative banks or other financial institution.

a) Guaranteeing, on such terms and conditions as may be agreed upon deferred payment due from any industrial concerns in connection with its purchase of capital goods within India,
b) Under writing of the issue of stock, shares, bonds or debentures by industrial concerns.
c) Transferring for consideration any instruments relating to loans and advance granted by it to industrial concerns.
d) Acting as agent of the centeral Govt of the state government or the development bank (IDBI) or the small industries banks (SIDBI) or the IFCI limited formed and registered under the companies act,1956 or any other financial institution notified in this behalf by the centeral government in respect of any matter connected with, or arising out of, the grant of loans or advances to an industrial concern, or subscription to debentures of an industrial concern or relating to the business of the development banks, small industrial bank IFCI limited of financial institution.
e) Subscribing to or purchasing of the stock, shares. bonds or debentures of an industrial concern or any other concern.
f) Retaining as part of its assets any stock. Shares bonds or debentures that it may acquire by subscription or in fulfillment of it underwriting liabilities and disposing of the stock, shares bonds or debentures so acquired.
g) Granting loans or advances to or subscribing to debentures of in industrial concern.
h) Accepting or discounting promissory notes and bills of exchange made, drawn, or accepted or endorsed by industrial concerns or by any person selling capital goods manufactures by one industrial concern, to another industrial concern.
i) Undertaking research and surveys for evaluating or dealing with marketing or investments, or undertaking and carrying on techno-economic studies or other activities in connection with the development of any industry.
j) Providing technical and administrative assistance to any industrial concern or any person for the promotion, management or expansion of any industry.
k) Planning and assisting in the promotion & development of industries.
l) Acting as the trustee for the holders of debenture of other securities.
m) Leasing, sub-leasing or giving on hire purchase of industrial plant, equipment, machinery or any other assets.
n) Factoring
o) Providing export related credit and services.
p) Undertaking money market related activities.
q) Setting up of mutual funds and undertaking assets management activity.
r) Promoting, forming or conducting or assisting in the promotion, formulation or conduct of companies, subsidiaries, societies, trusts or such other association of persons as it may deem, fit.
s) Opening or confirming or endorsing letters of credit and negotiating or collecting bills & other documents drawn hereunder.
t) Doing such other business as the small industries bank may otherwise and or generally the doing of such acts and things as may be incidental to or consequential upon, the exercise of its powers or the discharge of duties under the act.
u) Providing constancy and merchant banking services.

AREA OF OPERATION:
Karnataka state financial corporation extends loans to industrial concerns established / to be established in the state of Karnataka. Industrial concerning having registered office out side the state of Karnataka can also avail financial assistance provided the place of business in Karnataka, and they agree to shift their registered office to the state of Karnataka.

Karnataka state financial corporation has branches all over the state, each district has a branch office, in total Karnataka state finance corporation has 7zonal offices, 3 super “A” grade branch offices, 13 “A” grade branches and 14 ”B” grade branches,

MANAGEMENT OF KSFC:
The board of directors constituted as per the KSFC’s Act 1951 assisted by a managing directors executive committee and advisory committee, carries out of the management of KSFC.

BOARD OF DIRECTORS:
The board of directors shall consist of the following namely.

1) A director to be nominated as chairman under sub-sec(1) sec 15, the small industrial banks, in consultation with the state government nominates a directors as a chairman of the board for such period not exceeding three years,
2) Chairman is whole time director unless he is also appointed, to function as the managing director.
3) The chairman presides over the meeting of the board and general meeting of the financial corporation.
4) Two directors nominated by the small industries bank.
5) Two directors, nominated in the prescribed manner by the parties mentioned in clause (c) of sub sec(3) of sec 4,
6) Such number of directors elected, in the prescribed manner, by shareholders other than mentioned in clauses (a) (b) and (c) of sub sec,(3) of sec 4, whose names are entered on the register of shareholders of the financial corporation, ninety days before the date of meeting in which such election takes place an the basis specified in the act.
7) Managing director appointed in consultation with the small industries by the state government, the managing director.
Is a whole time officer of the KSFC
Performs such duties as the board, by the regulations, entrusts or delegate to him,
Holds office for such term not exceeding three years as the state government may specify and shall be eligible for re-appoint

EXCUTIVE COMMITTEE:
The board shall constitute and executive committee consisting of the chairman and managing director, the whole time directors and such other directors as it may be.
The executive committee shall discharge such functions as may be prescribed or as may be delegated to it by the board.
The board may constitute such other committee’s whether consisting wholly of director’s of other person for such purpose as it may think fit,
Subject to such general or special direction, as the board may form to time given, the executive committee may deal with any matter within the competence of the board.

ADVISORY COMMITTEE:
The financial corporation may appoint (one or more committees consisting wholly of directors or wholly of other persons) for the purpose of assisting the financial corporation in the efficient discharge of its functions and in particularly for the purpose of securing that those functions are exercised with due regard to the circumstances and conditions prevailing in and the requirement of particular areas of industries.

QUALITY MNAGEMENT SYSTEM (ISO 9000):
During the fiscal year 1996-97 the corporation has appointed institute of standard engineers (Tata Consultancy Services) as an external agency to advise and co-ordinate in getting the certificate.


Since competitiveness in rate of interest and better customer service are the key factors for development and growth of the corporation.


Therefore, the corporation decided to lowering the rate of interest to attract business and evolve strategies helped the corporation to obtain ISO 9000 certification, preliminary work in this regard was completed and all efforts were being made to get ISO 9000 certification quickly.
Due to continuous efforts and different programs were conducted at all levels the process of getting ISO 9000 certification was completed and the corporation was awarded ISO 9000 certification on 25th may 1998.


The corporation initiated action to obtain ISO 9002 certification for head office for its quality services, the local office of m/s bureau of Indian standards conducted audit may,1998 at head office and recommended for award of certification to the quality management system of KSFC.
The validity of the certificate for 3 years efforts are being put of derive benefit of ISO certification for improvement in quality of service for enhancement of customer satisfaction.

AMMENDMENT TO THE STATE FIANANCIAL CORPORATION ACT:
In a significant development, the state financial corporation act was amended by the parliament in September 2000 with a new to enlarge the scope of activities of KSFC’s to provide more autonomy to them, to restructure and re capitalize the allying KSFC ‘s. and for identification the role and status of KSFC’s in the emerging Indian financial system. Consequent to this the board of KSFC’s was dissolved and a new board is being constituted (under the provision of amended act).


KSFC’s (amendment) act has also provided for higher limit of section unto Rs. 5.00 lakhs per project. In special cases KSFC’s are allowed to section up to Rs.2000 lakhs with the prior approval of SIDBI. Consequent to this delegation of sanctioning powers within the organization was also restructured during the year.

SPECIAL FEATURES OF KSFC:
Team loan over Rs. 40.00 lakhs per processed and sanction at the head office. KSFC extends terms loans to new / existing units up to Rs.500.00 lakhs for corporate bodies and registered co-operative societies. “Terms loan up to a maximum of Rs.200 lakhs are sanctioned to proprietary partnership and joint Hindu family concern.

THE VARIOUS LOAN SCHEMES ARE GIVEN BELOW:
Equipment finance loan scheme
Diesel generator loan scheme
Hospital /nursing homes /medical stores loan scheme
Electro medical equipment loan scheme
Technology development and modernization fund scheme ( TDMF )
Loan scheme for maintenance, development and construction of roads.
Tourism related activities loan scheme
Assistance for acquiring indigenous or imported second had machinery

Qualified professionals loan scheme
Assistance to SSI units for technology development and modernization,
Scheme of assistance for acquisition of ISO 9001:2001 services certification by SSI units, recently introduced -2010-11

Line of credit ( LOC ) for purchase of raw materials from KSSIDC.
Scheme for financing of energy saving projects ( SESP ) for MSME & under JICA line of credit of SIDBI.
Scheme for financing of wine
Manufacturing industries,
Interest subsidy scheme for scheduled tribe entrepreneurs.

NON PERFORMING ASSETS (NPA's)

ORIGIN AND GROUTH OF BANKING.
The origin of commercial banking can be trance able in the early times of human history in the ancient Rome and Greece, the practice of strong precious metals and coins at safe place and out money for public and private purpose an interest was prevalent in England. Banking has its origin with the London goldsmith who in the 17th century began to accept deposits from merchants and other valuables, as public enterprise, banking made its first appearance it Italy in 1157 when the bank of Venice was founded.

THE GOLD SMITH.
The next stage, in the development of banking came when the receipt for deposits with the gold smith began to be used as a means of payment, people stored keeping gold, silver and coins with gold smith in exchange for warehouse receipts or goldsmith notes these warehouse receipts became a medium of exchange and means of payment,

INTRODUCTION.
“A man without money is like a bird without wings, the Rumanian proverb insists the importance of the money. A bank is establishments, which money, the basic function of commercial banks are the accepting of all kinds of deposits and lending commercial banks are the accepting of all kinds’ deposits and lending of money.


The concept of NPA has been burning topic among the people associated with the banking sectors in the recent years, the subject of NPAs has been difficult to comprehend by lay people, the increasing competition in the industrial system and the patent deficiencies in commercial judgment on the part of bank official dom. No. doubt the level of NPA’s in few banks can cause alarm.

OVERVIEW OF NPA:
Indeed, the dynamic trend of baking sector in India has stretched a beam of light on many vital aspects of assets classification, income recognition and provisioning, complexity of NPA’s etc. in general; the assets are dividend into two category.

Performing assets or standard assets.
Non-performing assets.

PERFORMING ASSETS OR STANDARD ASSETS:
Assets which do not give any trouble in generating predetermined income and / or installment may be called standard assets,

NON-PERFORMING ASSETS:
An assets which is ceased to generate income of the bank is called non-performing assets, the past due amount remaining uncovered for the two quarter consequently the amount would classified as NPA, it includes borrowers default or delays in payment of interest or principal loan amount.

“The term non-performing may be defined as “loans or advances whose credit quality has deteriorated such that full collection of principal and or interest in accordance with the contractual repayment terms of the loan or advances is in question “loan or advances is in question” loans or advances with pre established repayment programs are non performing when principal and or interest is due and uncollectible for 90 day’s or more beyond the scheduled payment date or maturity. In line with the international practices and as per the committee on the financial system (chairmen shri.m Narashimhan). The reserve bank of India has introduced, in a phased manner, prudential norms for income recognition, assets classification and provisioning for the advances portfolio of the banks so as to more towards grater consistency and transparency in the published accounts pertaining to all banks.

Meaning of NPA’S
As assets which ceases to generate income of the bank is called non performing assets, the past due amount remaining uncovered for the two quarter consequently the amount would be classified as NPA, it includes, borrowings or delays in payment of interest or principal loan amount.

DEFINITION OF NPA’S
A loan or lease that is not meeting its stated principal and interest payments ,banks usually classify as non performing assets, any commercial loans which are more than 90 days over due and any consumer loans which are 180 days overdue, more generally, an assets which is not producing income. The historical or evolutionary process of higher NPA’s is generally related to the following.

Lacunae in the credit recovering system
Inadequate legal provisions on bankrupted
Long drawn legal procedural difficulties in the execution of decreases awarded by course.
The above factors show that even the legal system is sympathetic towards borrowers and economic system and some may not.
However there is a total deterioration in assets quality and further the loan recovery system is in efficient..
For the first time after 50 years Indian banks seem to have learnt how they should progress in the interest of banking and economic and ho9w they should not have managed the NPA’s.

IDENTIFICATION OF NPA’S:
For the purpose of identification of NPA’s advance are classified into four broad head as mentioned below.

Term loans;
This includes terms loans, demand loans, bridge loans/ bonus loans, personal loans, crop loans, loan against bonds own deposits (LABOD) loan against government securities or shares.

Cash credit and overdraft:
It includes cash credit packing credits, advances against trust receipt overdraft against fixed deposit receipts or government securities or shares and the like.

Gills purchased and discounted:
It includes bills purchased or discounted, cheques purchased etc.

Other accounts:
These include other credit facilities not mentioned for examples advance bill duty drew back.

STEPS TAKEN TO CONTAIN NPA’S
The RBI stressed the need for credit appraisal and credit supervision since the basic problem is at loan decision stage.
Stressed the need to monitor stock and operation and end use statements.
Detailed guide ones have been issued to take step to avoid sickness and also to nurse back the ailing units.
Stressed the need to constitute recovery cells, NPAS management departments and fixed recovery target for banking units.
The debit recovery tribunal (DRT) should dispose off the issues within the six moths.
On the filling of suits in a court of low the fallowing guidelines are prescribed which should be observed.
To check whether the charge (I&II) are properly registered enforceable.
To check whether the liability of guarantor is enforceable.

OBJECTIVES OF MANAGEMENT OF NPA’S:
Keeping in view the desired goal, management of NPA would have the following three specific objectives.
Improving the quality of NPA to a performing status so that income on such assets is recognized.
Upgrading the status of the assets so as to reduce the provisioning requirements.

Reserve bank guidelines on purchase or sales of non performing financial assets:
Assets Classification Norms :
Prudential norms were made applicable to the USB’S since 1992-93. the STCB’s and DDB’s since 1996-97 and SCARDS and PCARDB’s since 1997-98.


The non performing financial assets purchased, may be classified as standard in the books of the purchasing bank for a period 90 days from the date of purchase, there after, the asset classification statues of the financial asset recovery in the books of the purchasing bank with reference tgo cash flow estimated while compliance with requirements.


The assets classification status of the existing exposures to the same obligator in the books of the purchasing bank will continue to be governed by record of recovery that exposure and hence may be different.


Where the purchase or sales does not satisfy any off the prudential requirements prescribed in these guidelines the assets classification status of the financial assts in the banks of the purchasing bank at the time of purchasing shall be the same as in the books of the selling bank.
There after the assets classification status will continue to be determined with reference to the date of NPA’s in the selling bank. Any restructure or reschedule or rephrase of the repayment schedule or the estimate cash flow of the non performing financial assets by the purchasing bank shall render the account as a non performing assets.

Provisioning norms books of selling bank:
When a bank sells its non performing financial assets to other banks , the same will be removed from its books on transfer. It the sale is at a price below the net book value (NBV) the short fall should be debited to the profit and loss account of that year.


If the sales are for a value higher then the NBV, the excess provision shall not be reversed but will be utilized to meet the short fall or loss on account of sale of other non performing financial assets.


Book of purchasing bank the asset shall attract provisioning requirement appropriate to its asset classification status in the books of the purchasing bank.


Accounting of recoveries any recovery in respect of a non performing asset purchased from other banks should first be adjusted against its acquisition cost recovery in exes of the acquisition cost can be recognized as profit.


Capital adequacy for the purchase purpose of adequacy, bank should assign 100% risk weights to the non performance financial assts purchased from other bank, in case the non performing assets purchased is as investment, then if would attract capital change for the market on capital adequacy restriction on capital adequacy would be applicable .


Exposure norms the purchased banks will reckon exposure on the obligor of the specific financial asset. Hence these banks should ensure compliance with the prudential credit exposure selling (both single and group) after recording the exposure to the obligors arising on account of the exposure norms would be applicable.

Disclosure requirements:
Banks which purchase non performing financial assets from other banks shall be required to make the following disclosers in the notes on accounts to their balance sheets.

Over due:
Any amount due to the bank under any credit facility is overdue if it is non paid on due date fixed by the bank.

Types of NPA’S:
A) Gross of NPA’S
B) Net of NPA’S

Gross of NPA’S
Gross NPA’s are the sum total of all loan assets that are classified as NPA’s as per RBI guidelines as on balance sheet date. Gross NPA reflects the quality of the loan made by bank it consists of all the non standard assets like as sub slandered, dough full and loss assets.

Net of NPA’S
Net NPA’s are those types of NPA’s in which the bank has deducted the provision regarding NPA’s “net NPA’s shows the actual burden of bank”
Since amount of NPA’s and the process of recovery and write off of loans is very time consuming, the provision, the banks have to make against the NPA’s according to the central bank guidance are quite significant , that is why the difference between gross and net NPA’s quite high it can be calculated.

Factors for rise in NPA’s:
The banking sectors has been facing the serious problems of the rising NPA’s but the problem of NPA’s is more in public sectors banks PSB are growing due to external as well as internal factors.

Internal factors:
Poor lending decision
Non compliance to lending norms
Lack of post credit supervision
Failure to appreciate good payees
Excessive over draft lending
Non transparent accounting policy

External factors:
Socio political pressure
Change in industry environment
Encounters macro economic disturbance
Natural calamities
Industrial sickness
Diversion of funds and will full difficulties.
Time or cost overrun in project implementation
Labors problems of borrowed firm
Business failure
Inefficient management
Absolute technology
Product obsolete.

CONSUMER OR CUSTOMER BEHAVIOUR

MEANING OF CONSUMER BEHAVIOR
Consumer behavior is the study of how people buy, what they buy when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, socio psychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups and society in general.

The starting point for understanding the buyer is the stimulus-response. Marketing and environmental stimuli enter the buyer’s consciousness. The marketer’s task is to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the buyer’s purchase decisions.

MODELS OF BUYER’S BEHAVIOR:
The major factors influencing buying behavior, a consumer buying is influenced by cultural, social, personal and psychological factors.

Cultural Factors:
Culture is the most fundamental determination of a personal wants and behavior. The growing child acquires a set of values perception and behavior though his or her family and other key institutions.

Sub Culture:
Each culture consists of smaller sub culture that provides as more specific identifications. Such culture include nationalities, religions many sub cultures make up important market segmentation and marketers often design product and marketing programme tailored this needs.

Social Class:
Social class are relatively homogenous and enduring divisions in a society, which are hierarchically order whose members share similar value interest and behavior. Vertically all human societies exhibit social stratification.

Social classes have several characteristics class tend to behave more alike than persons from two different social classes. Second person are perceived has occupying inferior or superior position according to social class. Their class is indicated by a cluster of variables for Ex. Occupation and value orientation rather than by any single variable. Individuals can more from one social class to another up or down during this life time.

Reference Group:
A person reference group consists of all the group there have direct or indirect influence on that persons attitudes or behavior group having a direct influence on a persons are called membership group.

Some membership group are primary group such as family, friends, neighbors and co-workers with whom the person fairly continuously and informally people also belong to secondary groups which tend to be more formal and require uses continuous instruction.

Marketers try to identify target customers reference group. However the level of reference group influence varies among products and brands reference both product and brand choice in such times as furniture and clothing and mainly product choice is such items as backs cigarette.

Manufactures of products and brands where group influence and brands where group influence is strong must determine how to reach and influence the opinion leaders in these reference group.

Family :
The family most important consumer buying organization in society and it has been research extensively. Family members constitute the most influential reference group. The family of orientation consists of ones parent and siblings from parents a person acquires are orientation towards religion.

Markets are interested in the roles of relative influence of the husband, wife, children in the purchase of a large variety of products and services.

Role and Status:
A person participates in many groups, family clubs and organizations. The person position in each group can be defined in terms of role and status. A role consists of activities that a person is expected to perform each role carries status.

Personal Factors:
A buyer decisions are also influenced by personal characteristics. Those include the buyer age and stage in the life cycle, occupation, economic circumstances like lifestyle, personality and self concept.

Age and Stage: In the life cycle people buy different goods and services over a life time. They eat baby food in the early years, most foods in the growing and mature years and special diets in the later years. Tasted in cloths, furniture and recreation in also are related.


Occupation and economic circumstances: Occupation also influences a person consumption pattern. A blue colour worker buy work clothes, work shoes and lunch box. A company president will buy expensive things. Marketers try to identify the occupational groups.

Life Styles:
People from the same sub culture, social class and occupation may lead quite different life styles.

A life style is the persons pattern of living in the world or expressed in activities interest and opinions life posture the “whole person” interacting with his or her environment.

Personality and Self Concept:
Each person has a district personality that influence buying behavior. By personally, we mean distinguishing psychological characteristics that lead to relatively consistent responses to environment.

Personality can be useful variable in analyzing consumer behavior, provided that personality types can be classified accurately can the correlation exist between certain personality types and product or brand choices.

Psychological Factors:
A persons buying choice are influenced by four major psychological factors.
Motivation
Perception
Learning
Attitude

Motivation:
A person who has many needs at any given time some needs are biogeneric they arise from physiological states of tension sleeks as hunger. This is discomfort other needs are physiological they arise from psychological states of tension such as the need for recognition esteem or belonging. A need becomes a motive when it is aroused to sufficient level of intensity.

Psychologist have developed theories of human motivation three of the best known theories of Sigmund Freud, Abraham Maslow and Tedrical Herzberg of carry quit different implications for consumer analyse and marketing strategy.

Freud’s theory:
Sigmund Freud assumed that psychological shaping people behavior are largely unconscious and that a person cannot fully undress and his or her own motivation.

Maslows Theory:
Abraham Maslows sought to explain people are driven by particulars needs as a particular time.
Self
Actualization
Extreme Needs
Social Needs
Safety Needs

Physiological Needs:
Human needs arranged in hierarchy from the most pressing to the least processing. Is this order of importance they are physiological needs, safely needs, social needs, esteem needs, and self actualization needs will try to satisfy their most important needs first.

Herzberg Theory:
Frederick Herzberg developed a two factor theory that distinguishes satisfaction and dissatisfaction.

Perception:
It is the process by which an individual selects organizes and interprets information, inputs to create a meaningful picture of the world. Perception depends not only on the physical stimuli but also on the stimulus but also on the stimulus relations to the surrounding field on condition within the individual.

The key work is the definition of perception in individuals are person might perceive of fast talking sales person as aggressive and insincere another as intelligent and helpful people can emerge with different perceptions of the same, because of their personal perceptual process, selective attention, selective distortion and selective reinvention.

Learning:
When people act they learn, learning involves changes an individuals behavior arising from experience. Most human behavior is learned.

Beliefs and Attitudes:
Through learning people require beliefs and attitudes. These in turn influence buying behavior.
A belief is a descriptive through that a person hoods about something. Beliefs may be based on knowledge, opinion or faith. The manufacturers will want to launch a comparing to current these beliefs.

Attitude:
It is a person learning favorable or unfavorable inoculation emotional things and action tendencies towards some objects or idea. People have attitudes towards almost everything like religion, politics, foods, clothes, music etc.

Buying Roles:
We can distinguish five roles people might in a decision process.

Initiator : A person who first suggest.
Influencer : A person whose view or achieve influence the decision
Decider : A person who decides on any component of a buying decisions whether to buy, what to buy, how to buy, where to buy.
Buyer : A person who makes the actual purchase.
User : A person who consumes or uses the product or service.

TYPES OF BUYING BEHAVIOR:
Complex Buying Behavior:
It involves three steps:
The buyer develops beliefs about the products.
He or she develops attitudes about the product.
He or she makes a thoughtful choice consumer engages in the complex buying behavior when they are highly involved in a purchase and aware of significant difference among brands.

Dissonance-Reducing Buying Behavior:
Sometimes the consumer is highly involved in purchase but has title differences in brands. The high involvement is again based on the fact that purchase is expensive, infrequent and risky.

Habitual Buying Behavior:
Many products are bought conditions of low consumer involvement and absence of significant brand differences. Consider the purchase of salt. Consumers have little involvement in this product category. They go to the store and reach for the brand. It they keep reaching for the same brand, it is out of habit, not strong brand loyalty.

Variety Seeking Buying Behavior:
Some buying situations are characterized by low consumer involvement but significant brand differences. Here consumers are often observed to do a lot of brand switching. The consumer has some beliefs, chosen a brand without much evaluation and evaluates it during consumption. But next time, the consumer may reach for another brand out of boredom or a wish for a different taste.


Stage in Buying Decision Process:
The consumer passes though five stages: Problem recognition, information search, evaluation of alternatives, purchase decision and post purchase behavior.

Need Recognition:
The buying process starts when the buyer recognizes a problem or need. The buyer senses a difference between his or her actual state and a desire state.

Information Search:
An aroused consumer will be inclined to search for more information. Consumer information falls into 4 groups.

Personal Sources : Family, friends, neighbors, acquaintances.
Commercial Sources : Advertising, salesperson, dealers, displays, packaging.
Public Sources : Mass media, consumer rating organizations
Experiential sources : Handling, examining using the product.

As for the consumer information sources, the marketers should identify them and evaluate their relative importance.

Evaluation of alternatives:
The consumer arrives at attitudes (judgments, preferences) toward the brand alternatives though an evaluation procedure.

Purchase Decision:
In the evaluation stage, the consumer forms preferences among the different brands. However two factors can intervene between the purchase intension and the purchase decision.