A PROJECT REPORT ON
EVOLUTION OF WARANA “BEYOND THE LUCKY GOLD STAR GROUP” Project Submitted to the Institute of Agribusiness Management in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration (Agribusiness) 2008-09
Submitted by: Dange Vishwesh Shashikant 04-0390-2007 INSTITUTE OF AGRIBUSINESS MANAGEMENT NAVSARI AGRICULTURAL UNIVERSITY NAVSARI
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Declaration by Student I hereby declare that the project entitled “Evolution of Warana – Beyond The Lucky Gold Star Group” submitted for the M.B.A. (Agribusiness) Degree is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles.
Place: Date:
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Vishwesh Shashikant Dange
INSTITUTE OF AGRIBUSINESS MANAGEMENT NAVSARI AGRICULTURAL UNIVERSITY NAVSARI-396 450
CERTIFICATE This is to certify that the project entitled “Evolution of Warana – Beyond The Lucky Gold Star Group” is the bonafide research work carried out by Dange Vishwesh Shashikant student of M.B.A.(Agribusiness) during the year 2008 -2009, in partial fulfillment of the requirements for the award of the Degree of Master of Business Administration(Agribusiness) under my guidance and supervision and that the project has not formed the basis for the award previously of any degree, diploma, associateship, fellowship or any other similar title.
Place: Date: Approved Dean IABM
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Dr. Ruchira Shukla
ORGANIZATIONS CERTIFICATE
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ACKNOWLEDGEMENT It is indeed a pleasure to acknowledge the contribution of all those who have helped me during the project work. It was a most rewarding experience to work in “WARANA BAZAAR and WARANA BANK”. I am very thankful to our dean Dr. R. R. Shah and Prof Samar K. Datta, Chairman, Center for Management in Agriculture, Indian Institute of Management, Ahmedabad for giving me this opportunity. I am deeply indebted to Dr. Ruchira Shukla as a Project Guide and Dr. Alpesh Leua whose valuable guidance helped me a lot at all stages of my project. I would also take the opportunity to express my sincere thanks to the management of Warana Bazaar and Warana Bank and specially Mr. Sharad A. Mahajan (General Manager, Warana Bazar), Mr. Jayant Sopal (Purchase Manager, Warana Bazar), Mr. Mahesh Auti (Sales Manager, Warana Bazar), Mr. T. B. Chavan (Accounts Manager, Warana Bazar), Mr. T. M. Dhere (Labour Officer, Warana Bazar) and Mr. S. K. Shinde (Asst. General Manager, Admin., Warana Bank) for their kind cooperation throughout my study. Last but not the least I would also like to express my deep gratitude towards all the faculty members, my parents, my beloved friends and all those for their generous help during this study directly or indirectly. Place: Date:
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Vishwesh Shashikant Dange
I Dedicate this Project to my Beloved Parents and Friends. Whose love and blessings have been a source of inspiration to me. I owe them for what I am today and even hope to be in future. I will never forget the help, motivation, support and inspiration given by them. Vishwesh
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CONTENTS Sr. No. 1) 2) 3) 4)
Particulars Executive Summary Introduction to Warana Co-operative Complex Members’ Activities in Warana Co-op. Complex Industry and Organization Profile a. Profile of Co-operative Consumer Stores in Indian Retail Industry b. Profile of Warana Bazaar c. Profile of Co-operative Banks in Indian banking
5) 6) 7) 8) 9) 10)
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Industry d. Profile of Warana Bank The Project Research Methodology Data Presentation and Analysis Findings, Recommendations and Conclusion Bibliography Appendix
Page No. 10 12 15 18 19 21 38 41 50 53 56 103 108 109
LIST OF TABLES Table No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29.
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Title Development of Warana Bazaar Board of Directors Area of Operation Activities for Members Benefits to Staff besides salary Consultancy to Bazaars Franchisees of Warana Bazaar General Information of Warana Bank Distribution of Profits by Warana Bank Manpower involvement in Warana Bazaar Members of Warana Bazaar Members Share Capital in Warana Bazaar Total share Capital of Warana Bazaar Working Results of Warana Bazaar Financial Assistance from government Total Sales of Warana Bazaar Total Income of Warana Bazaar Performance Highlights of Warana Bank Loans Sanctioned by Warana Bank Profit Earned by Warana Bank Working Capital requirement of Warana Bank Deposits Frequency Table for Population Frequency Table for Age Group Qualification of Respondents Monthly Expenses Benefits from Warana Bazaar Display of Goods Product Mix Satisfaction
Page No. 23 27 28 30 31 33 37 44 46 57 57 59 59 61 62 63 65 66 67 68 69 70 96 97 98 99 100 101 102
LIST OF FIGURES Figure No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.
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Title Organizational Chart Members of Warana Bazaar Total share Capital of Warana Bazaar Total Sales of Warana Bazaar Total Income of Warana Bazaar Loans Sanctioned by Warana Bank Profit Earned by Warana Bank Working Capital requirement of Warana Bank Deposits Frequency Table for Population Frequency Table for Age Group Qualification of Respondents Monthly purchases from Warana Bazaar Benefits perceived from Warana Bazaar Proper Display of Goods Product Mix Satisfaction
Page No. 25 58 60 64 65 67 68 69 70 96 97 98 99 100 101 102
EXECUTIVE SUMMARY The project entitled EVOLUTION OF WARANA “BEYOND THE LUCKY GOLD STAR GROUP” is the project done on the “WARANA BAZAAR” and “WARANA BANK” which are the part of the well recognized “Warana Co-operative Complex” which is located in Warananagar, Kolhapur. The core objective of this endeavour is to study the development of these two organizations i.e. the Warana Bazaar and the Warana Bank starting from the Warana Co-operative Sugar Factory and which has now departed from the sugar factory to other organizations like the dairy, bank, bazaar and the poultry which is beyond the development of South Korea’s giant Lucky Goldstar group. Paul Milgrom and John Roberts, in their celebrated book titled ‘Economics, Organization and Management’1, enunciate a classic case of South Korea’s giant Lucky Goldstar group to depict the extent to which firms can profitably take over the operations of their suppliers and industrial customers (alternatively called as backward and forward linkages) and also simultaneously expand their activity spectrum. The ultimate success story of Lucky Goldstar chaebol, profitably engaged in a wide range of activities, is encapsulated in the following citation in the words of Koo Cha-Kyung, the son of the Lucky Goldstar founder: “My father and I started a cosmetic cream factory in the late 1940s. At that time, no company could supply us with plastic caps of adequate quality for cream jars, so we had to start a plastic business. Plastic caps alone were
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not sufficient to run the plastic-molding plant, so we added combs, toothbrushes and soapboxes. This plastic business also led us to manufacture electric fan blades and telephone cases, which in turn led us to
manufacture
electrical
and
electronics
products
and
telecommunications equipment. The plastic business also took us into oil refining which needed a tanker-shipping company. The oil-refining company alone was paying an insurance premium amounting to more than half the total revenue of the largest insurance company in Korea. Thus, an insurance company was started. This natural step-by step evolution through related businesses resulted in Lucky Goldstar group as we see it today. For the future, we will base our growth primarily on chemicals, energy and electronics. Our chemical business will continue to expand toward fin chemical and genetic engineering while the electronics business will grow in the direction of semiconductors manufacturing, fiber optic telecommunications and eventually, satellite telecommunications. (Milgrom & Roberts, ibid, pp. 543). Also the objective of the study is to study the role of leadership i.e. the role of Shri. Tatyasaheb Kore and his associates who were the establishment pillars of Warana Co-operative Complex, in starting up of Warana Bazaar and Warana Bank and its progress. The competitive advantages of both these organizations are identified over their rivals which help these organizations in generating higher margins by increasing sales and to retain their customers. SWOT analysis of Warana Bazaar and Warana Bank i.e. the strengths, weaknesses, opportunities and threats are carried out also showing their future perspectives. A customer response towards the Warana Bazaar is studied to know the level of satisfaction of customers.
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INTRODUCTION TO WARANA CO-OPERATIVE COMPLEX Warana is a well-developed rural area located 30 kilometers northwest of the city of Kolhapur, in one of the richest states of India, Maharashtra. Much of Warana’s success is due to the presence of a strong co-operative movement, the Warana Group of Cooperatives (WGC). About 50,000 farmers live in 100 villages spread in the 25,000-sq. kilometer area covered by the co-operative. The main economic activity is sugar cane growing and processing. The name, WARANANAGAR is derived from the river WARANA flowing from Kolhapur and Sangli districts in western Maharashtra. Sixty years back Warana was a barren land and has emerged on the world map as a model for all-round development of the region through continuous efforts of all concerned under the able leadership of Late Sahakarmaharshi Shri. Tatyasaheb Kore, a man with great vision and commitment towards the upliftment of the poor section of society. Shree Warana Co-operative sugar factory was founded in the year 1956. Warana Co-operative sugar factory has best proved many times among all Co-operative sugar factories in the country. It has proved to be a nucleus for the multi-faceted development of the region and for bringing about the upliftment of the masses. In other words, we can say that without knowing the definition of marketing (creation and delivery of standard of living) Late Sahakarmaharshi Tatyasaheb Kore has done such a Herculean task within a short span of 60 years.
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Warana Co-operative Sugar factory is the mother institute of all the industrial and Co-operative units like Warana dairy, Co-operative bank, Co-operative bazaar as well as educational units like School, ITI, College, Engineering College, Military School, Pharmacy College and Cultural units like Warana children’s orchestra and social units like Shree Warana Bhagini Mandal, Warana Mahila Credit Society, Lijjat Papad Centre etc. WARANA is eminently, a unique name that stands as forerunner in the cooperative movement in India. The name WARANA sounds suitable wherever there is a mention of co-operative movement. The uninitiated may be amazed by the way barren land has been converted into a green valley. The green valley with its smiling face welcomes the whole nation for its exemplary services. "Love at first Sight" can be rightly applied to this land of integrated rural development. The beauty of this land makes music which can penetrate and lilt the most inaudible ears and a riot of natural colours to the most unaccustomed eyes and it can even make even the unlettered to construct the duets. The activities in this valley can enliven the most passive. There is no name parallel to WARANA except perhaps the WARANA RIVER, which flows parallel to WARANA. Warana culture has set an example and is making wonders today. WARANA•
A successful name in the cooperative movement;
•
A successful name in the operation flood;
•
A successful name in the agricultural field;
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•
A successful name in the sugar lobby;
•
A successful name in the education field;
•
A successful name in the banking field;
•
A successful name in the consumer services; industries; and
•
A successful name by itself!
All this did not happen by chance or through any sort of magic. An incredible man set on an arduous mission with a singular dream of achieving all these incredible things. The man who sacrificed his joys, happiness and stood bold, to do the best. This man like a sprint achieved the success in all the fields. His words were Godly words to his followers. With an undaunted strong belief along with his team when he struck, the whole barren valley that was filled with dacoits and turned it into a prosperous and polite land. Who was this incredible man? Who was this motivator? Who was this sprint? He was one and only one Late Vishwanath Kore alias Tatyasaheb Kore. Tatyasaheb Kore who did a magnificent miracle in the land of Warana, born on17th October 1914, he was the son of a farmer in a small village Kodoli. Young Vishwanath Kore had to overcome several hurdles due to the poverty of his family. Besides poverty the sad demise of his parents might have crunched him a great deal. But young Vishwanath did not flinch an inch. Being the eldest in his family he took all the responsibilities on his shoulder and through his hard work he brought up the whole family through difficult times. By entering the local village co-operative society in 1935 he started his social service. He
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actively participated in Quit India Movement of 1942. He was actively associated with underground movement of Late "Yashwantrao.B. Chavan, 1st Former Dy. Prime Minister of India. Due to his social services he was unanimously elected as President of Kodoli Municipality in 1940. He plunged into a severe action when an unprecedented depression in 1951 literally ruined the farmers of this area and they had to burn out their sugar canes rather than making jaggery and face the prospect of selling it at throw away prices. This shocking incident made him to set up a modern co-operative sugar factory in the barren land WARANA situated next to Kodoli village. The success of this sugar factory doubled his enthusiasm and lead to the overall development of Warana Complex. Today Warananagar is a place of many facets and fragrances and its success story started unfolding with every sunrise. Warana is making stupendous growth and is expected to make miracles in the days to come.
Members’ Activities in Warana Co-Operative Complex: Members’ involvement and empowerment in Warana Cooperative Complex: Warana Cooperative Complex which has carved a niche in the global cooperative landscape is mainly attributed to the ceaseless efforts of great architect and visionary Late Shri. Tatyasaheb Kore and the involvement of farmer members that has led to their empowerment. The successful establishment of co-operative sugar factory in 1959 has completely revolutionized the life of the people in Warana co-operative complex. The co-operative sugar factory, in fait is the backbone of the complex. The democratic setup wherein the members actively participate, give their
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valuable suggestions, the sub committees of the board representing the particular village and members aspirations coupled with the need based services offered by all the co-operatives institutions in the complex is the main factor for the member empowerment. Economic and social services that persuade members to participate are as: 1. Affordable and modern irrigation schemes, provision of agricultural inputs at subsidized rates, access to advanced agricultural technological information through “Warana Wired Village Project”, the first of its kind in Asia, constant member initiatives like seminars, demonstrations, field visits, workshops, training facilities, etc has created an environment for the members to take farm activities with enthusiasm. 2. Better rate of return to the members’ products, redressal of economic grievances through provision of financial facility at reasonable terms has attracted the farmer members to be loyal to their institution in terms of supply of cane, availing facilities, economic participation and democratic involvement. 3. Small farmers and landless people are made to involve in the dairy and allied activities of Warana dairy helping to attain self sufficiency. Members’ active involvement in extension activities, production of quality milk is laudable.
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4. Provision of wide variety of choices of consumer products at reasonable prices much below the MRP including member attractive deposit schemes, sales promotion schemes and member friendly activities like haldi-kumkum ceremony, festival rebates added with courteous services at Warana Bazaar has benefited the consumer members to enhance the sense of belongingness and participation in purchasing, forwarding suggestions and member related activities. 5. Provision of social services like medical and education facilities to members’ children at concessional rates, access to library, technical education, gymnastic, gobar gas plants, aid to temples, constructing community halls in backward areas, village drinking water facility, community marriage system, fostering children’s orchestra, employment towards women folk, involving women in decision making and promoting the various income generating activities to both men and women members have made Warana Co-operative Complex a land of many facets for member participation and member employment.
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Chapter I
Industry and Organization Profile
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1.1 Profile of Co-operatives in Indian Retail Industry: Retailing is the largest industry of the world. During the last five years, there has been a lot of consolidation and concentration in the field of retailing so much so that in all the developed countries the top five retailers control more than 60% of the food retailing. Cooperatives have also been contributing significantly to retail businesses in the country. Consumer cooperatives are retail firms owned by their respective customer members. In such cooperative arrangements, groups of consumers, invest in the cooperative, receive stock, certificates, elect officers, manage operations and share profits or savings that accrue. Consumer cooperatives came into existence with the purpose of operating stores as well or better than traditional retailers, of getting control over prices, of saving money by substituting their own labour or getting access to healthful, environmentally safe plots, not available from traditional stores. The consumer cooperatives have been playing an important role in the distribution of various items of essential consumer goods both in the urban as well as rural areas. In India consumer cooperatives had confined their retail business to small shops till 1965. Thereafter, supermarkets and departmental stores have come up in different parts of the country with governmental assistance. But in the wake of liberalization and opening up of modern stores by private groups in the urban areas, the business of consumer cooperatives have been adversely affected due to poor infrastructure and absence of professional and modern systems of management. But, by and large the credibility of institution still exists on account of quality and good measurement standards where the cooperatives should not allow a chance to others and make all efforts to retain this faith with the members.
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The retail market size of India is estimated to be around $180 billion. Retailing provides jobs to almost 15 percent of employable Indian adults and it is perhaps the largest contributor to India’s GDP. But the flip side of the coin is; the average size of each of the retail outlets in India is only 50 sq. feet and though a large employer, the industry is much unorganized, fragmented and with a rural bias.
Vision 2010: The past 2-3 years have seen a number of developments in the retailing business in India. The entry of corporate houses like RPG, Tatas, Piramals and Reliance has increased the capital availability in the market. Bigger players are in a position to take advantage of their sizes in dealing with the manufacturers. Despite a slowdown in the economy customer queues at the stores are not decreasing. Retail sector is bound to grow in the coming years. But how much and in what direction are the questions that need to be evaluated. Various agencies have made different estimates of the size of organized market in 2010. The one thing in common amongst these estimates is that the Indian organized retailing industry will be very big in 2010. The status of the industry will depend a lot on external factors like Government regulations and real estate prices, besides activities of the retailers and demands of the customers.
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1.2 Company Profile:
SHREE WARANA VIBHAG SAHAKARI GRAHAK MANDAL, LTD; WARANA BAZAR, WARANANAGAR. Tal: Panhala
Dist: Kolhapur
Registration No:
KPR/CON/28 Dated 07/08/1974.
Members:
10110
Area of Operation: 107 villages in Kolhapur and Sangli districts. Board of Directors: 23 First Consumer Co-op. Stores in Rural India: - Warana Bazaar: Warana Bazaar, the first consumer Co-operative store was founded and registered in the year 1976 and started functioning on 2 nd April 1978. Warana Bazaar has been accepted as a model store by all concerned. It has proved to be a successful departmental store in the country. The success of Warana Bazaar has inspired the emergence of many more cooperative stores in different parts of Maharashtra, Goa and other States in the country. In the era of globalized economy too, Warana Bazaar is
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achieving heights of success with yearly turnover of Rs. 82 cores, shouldered by 555 employees and Member’s strength of 10110 out of them 78% are women members which is the special feature of this unit. Warana Bazaar has two big department stores and 50 branches. Daily turnover of Warana bazaar is more than Rs. 30 Lakhs and the society is in surplus since beginning. Warana co-operative complex has a chain of interlinked units facilitated for the people in its command area to earn livelihood. The people had to often rush to Kolhapur or Sangli to obtain their daily needs and this resulted in waste of time, money, and energy. Sugar factory was giving a serious thought to the idea of starting a consumer store at Warananagar for meeting the daily requirements under one roof at fair and reasonable price. At that time there was risk involved in such a venture. Consultancy and promotional cell of N.C.C.F. Ltd, New Delhi and I.L.O. experts were searching for some location in rural part of the country for starting Departmental Cooperative store and successfully operate it. Then the ILO experts from Canada and Philippines visited Warananagar to examine the location and in depth study of the area. After that they resolved to start the first departmental store of the country. The Warana cooperative sugar factory sponsored for the consumers store. Warana Bazaar, the first of its kind in rural India. Shree Warana Vibhag Sahakari Grahak Mandal Ltd. Established and registered on August 7th 1976 and the Cooperative Developmental Store, Warana Bazaar started on April 2 nd 1978 with the assistance of the consultancy and promotional cell if the N.C.C.F. Ltd. New Delhi.
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Reformulated Principles of Cooperation (Accepted By I.C.A):
•
1st Principle: Voluntary and Open Membership.
•
2nd Principle: Democratic Member Control.
•
3rd Principle: Member Economic Participation.
•
4th Principle: Autonomy and Independence.
•
5th Principle: Education, Training and Information.
•
6th Principle: Cooperation among Cooperatives.
•
7th Principle: Concern for Community.
Objectives of Warana Bazaar: 1. To supply quality goods at fair and reasonable price to the customers. 2. To make available all type of goods under one roof. 3. To supply goods at same rate to all customers. 4. To supply fresh and clean goods to the customers. 5. Give information about food adulterations to the customers. TABLE NO: 1 Development of Warana Bazaar Sr. No
Year
Members
Sales in Lakhs
Growth %
1 2 3 4 5 6 7 8
1979-1980 1984-1985 1990-1991 1994-1995 1999-2000 2000-2001 2001-2002 2002-2003
1471 3068 4863 8656 9776 9776 9779 9779
147 470 1365 2528 4155 4413 4636 4721
-26.4 27.1 24.0 10.4 6.20 5.04 1.84
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9 10 11 12
2004-2005 2005-2006 2006-2007 2007-2008
9795 9987 10103 10110
6144 6886 7999 8167
20.30 12.00 16.00 2.09 Source: Annual Report
Features of Warana Bazaar: 1. The first Cooperative Department Store in Rural India. 2. Yearly turnover above Rs. 80 crores. 3. Audit class “A” since beginning. 4. Ranks third in sales turnover in India. 5. Women participation more than 77% of the total members. 6. Department store who has employed 50% women in staff. 7. Bazaar having 10000 sq. ft. selling area on the first floor. 8. First store which started training centre i.e. consultancy for different bazaars. Administration of Warana Bazaar: The Administration of Warana Bazaar is an example of systematic administration which one can apply. Chairman and Directors of Warana Bazaar personally do hard work for the organization. They always try to purchase the pure and best goods from the reliable parties or direct from manufactures and producers by keeping good relation with them. They visit to all branches and departmental stores and check the financial status of the branches whether it is in profit or loss and helps to solve the problems regarding the branch.
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Organization Chart: Figure: 1 General Body Board of Directors
Chairman Vice Chairman General Manager
Accounts Manager
Purchase Manager
Sales Manager
Chief Auditor
Chief Accountan t
Purchase Assistant
Sales Superviso r
Audit Staff
Branch Accountan t
Purchase Clerks
Sales Staff
Clerks
Section In-charge
Assistant and helpers
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Board of Directors: The board of directors handles the management carefully. 1. Chairman
01
2. Vice Chairman
01
3. Directors •
Male
05
•
Female
09
4. Employees representative
02
5. General Manager
01
The board meeting is arranged every year: •
Board of Directors meeting –
12
•
Purchasing committee meeting -
43
•
Branch committee and managers meeting -
12
•
Employees committee meeting -
12
•
Audit committee meeting -
12
•
Recovery Committee meeting -
12
•
Franchisee committee meeting -
13
Board of directors meeting is arranged for discussing newer ideas and problems of the store. Records of meetings are maintained regularly. The board has constituted sub committees to look after day to day management of stores.
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Board of Directors: TABLE NO: 2 Board of Directors
2002-03 to 2007-08 Name Smt. Shobhatai V. Kore Mr. Nemgonda A. Patil Smt. Lilavati D. Kore Mr. Vijaysinha G. Jadhav Mr. Laxman T. Salunkhe Mr. Ganpati S. Shete Mr. Subhash A. Desai Mr. Vishwanath T. Patil Mrs. Putalabai P. Gaikwad Mrs. Ashwini A. Patil Mrs. Babutai R. Mahapure Mrs. Sharada B. Mulik Mrs. Sajakka P. Shid Mrs. Jayashri U. Kulkarni Mrs. Suvarnadevi L. Patil Mrs. Shila R. Chougule Mr. Dayanand S. Utale Mr. Rajendra V. Powar Mr. Sharad A. Mahajan Mr. Vijay S. Kesarkar
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Designation Chairperson Vice Chairperson Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Gen. Manager, Ex. Officio Secretary Consultant
Area of Operation: TABLE NO: 3 Sr. No
District
1.
Kolhapur
2.
Sangli
Area Of Operation Tahsil
No of Villages
Panhala Hatkanangale Karveer Shirol Gadhinglaj Shahuwadi Bhudargad Ajara
22 31 6 3 1 3 1 2
Shirala Walwa Miraj Total
7 27 4 107
The WARANA BAZAAR operates successfully in the two districts of Maharashtra state i.e. Kolhapur and Sangli and covers almost 150 villages surrounding them. Availing the benefits of the no restriction or no barriers for the expansion, it is trying for further expansion in different villages. Reasons for success: i.
Success will not be spelt without ‘U’ and “U” means the secret of our success, ‘U’ means the stock holders, customers, Suppliers, Employees depositors, well wishers etc. and they cause the success.
ii.
Enlightened leadership--- Late Sahakarmaharshi Shri Tatyasaheb Kore was a great visionary. He has given birth to this consumer’s co-operative store. He has put all efforts to see it a success. Hon. Minister Shri. Vinayraoji Kore and Chairperson Smt. Shobhatai Kore are following the same path.
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iii.
Real and effective use of ICA co-operative 7 principles.
iv.
No political interference but “one for all & all for one” working culture.
v.
Dedicated and devoted staff, In house consumer co-operative training centre approved by Shivaji University, Kolhapur and NABARD.
vi.
Professional management:•
Per man per day sale - to avoid over staffing
•
Per square feet sale - Space utilization
•
Stock turn Rate-Should be more than 15 times
•
Break even point should be achieved by each unit.
•
Percentage of expenses on employees should be less than 55 % of Gross Profit.
•
Purchasing from the place of origin / manufacturer
•
Purchase pilot system (for minimum inventory)
•
Transparency in Business
•
Deposits from members / non members.
Activities for Members: TABLE NO: 4 Sr. No 1
Activities for Members Description 8% rebate on the purchase of festival goods at the time of Dipawali.
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2
8% rebate on the purchase of festival goods at the time of Gudhi
3
Padva. 10% cash rebate coupons for use throughout the year. Total 26%
4
on their investment in shares in the society. (for a class members) Haldi-Kumkum Ceremony for lady members at the time of Makar
5 6 7
Sankrant. Purchase Rebate to customers 0.5% “Pak kala ”competition for lady members “Ashi bhesal Ashi chalakhi.Ashi Banava Banavi ”- Exhibition
Activities for Customers: a) Daily welcome by staff at entrance. b) Book fare. c) Discount goods d) Festival goods e) Goods at cheaper rates f) Own branded goods g) Active pricing policy.
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Benefits to staff besides salary: TABLE NO: 5 Benefits to staff Sr. No 1 2 3 4 5
Description Provident Fund Bonus Incentive House Rent Allowance Pension Scheme Total
% 12.0 25.0 12.5 05.0 05.0 59.5
•
34 days leave.
•
3 months maternity leave.
•
Tea 2 times per day.
•
On the job training for the trainees.
•
Part time job provided for the college students.
•
Mediclaim & personal accident insurance policy for all staff.
•
Workers Welfare Trust registered under the trust act.
•
Gratuity Trust registered under the trust act.
•
Uniform.
•
Performance incentives.
Additional Activities in Warana Bazaar: a. Barcode system. b. STD/ISD/PCO Booth at Warananagar & Vadgaon. c. Xerox Services at Warananagar & Vadgaon. d. Organization of demonstration of various types of goods. e. Consumers meeting every year.
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f. Organization of seminar on ‘Save Oil Save Nation’. g. Organization of seminar on weights & measurement precautions. h. Implementation of different schemes for sales promotion. i. Food Testing Laboratory. j. Own brands in edible oil (Cotton, Soya, and Groundnut). k. Yoga & Pranayam shibir.
Staff Training & Development: Consumers Co-op. Movement needs trained Staff. In order to get trained staff the bazaar has started a training center under the name “Vilasrao Tatyasaheb Kore Consumers Co-op. Training Center” in the year 1996. Every year salesman training programme of one month duration is conducted in the center. Shivaji University, Kolhapur has approved this programme. First ten students, of every batch are absorbed in the service in Warana Bazaar; Employees who are already in service with various Bazaars in Maharashtra are eligible for admission in the above training programme. NABARD has approved this Programme.
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Consultancy: In order to promote the consumer Co-op. Movement in the country. Warana Bazaar has provided consultancy & in store training to many Coop. Bazaars. TABLE NO: 6 1.
Raigad Bazar, Alibag
10.
Adarsh Bazar, Goa
2.
Raigad Bazar, Pen
11.
Vedganga Bazar, Gargoti
3.
Raigad Bazar, Khopoli
12.
Jawahar Bazar, Dhule
4.
Shreeram Bazar, Phaltan
13.
Sattari Bazar, Valpoi, Goa
5.
Tarun Bharat Bazar, Sangli
14.
Rayat Bazar, Karad
6.
Urban Bazar, Karad
15.
Mahalaxmi Bazar, Satara
7.
Lonavala Bazar, Lonavala
16.
Shivshankar Bazar, Akluj
8.
Bardes Bazar, Goa
17.
Sagareshwar Bazar, Devrashtre
9.
Bagayat Bazar, Goa
Warana Bazaar Sales Policy: 1. Fixed Price, Fixed Rate: The rate of each commodity at all branches is same and fixed. No variation in rate as per branch. 2. After sales service: After sales service is must in every organization. It has also been the part of Warana Bazaar. If the after sales service of Warana Bazaar is better then and then only the people will prefer to purchase from Bazaar again and again. It may be the source of word of mouth publicity.
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3. Sales Promotion Scheme: Sales promotion schemes are started to retain the existing customers and attract new customers to buy products from Warana Bazaar. These sales promotion schemes are open during Dassera, Diwali, Gudhi Padwa (Marathi New Year), Akshay Tritiya and marriage seasons. 4. Best Quality: The supply of produce at cheaper rate to the customer with appropriate quality and quantity. For the same purpose product knowledge is necessary. The availability of newer products to the customers at proper time and in proper amount will help in increasing overall sales. 5. Providing services to the customers/members at the places they reside and making the material available on time essential for the day to day use without any extra charges. The material is made available in the respective branches as per the demand of customers by which the time, money and energy of the customers is saved.
6. The customers/members are made aware of the fake and spurious products and the adulterated goods in the market by conducting different awareness programmes at different places to prevent the customers from getting cheated from the other retailers in rural areas.
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7. To make logistics and stock management efficient and best by which maximum sales is obtained by keeping minimum stock level. Proper care is taken of the goods which are not sold for longer time for the expiry date.
8. Sales force training: Observing the increasing trend towards the mall revolution and other retail chains and the increasing investments of multinational companies in Indian rural market, for that the staff in the outlets is so trained in the field of retailing so that he can withstand in the competition and face the challenges firmly. Nowadays, newer marketing concepts and tactics are emerging which should be reached up to the staff and also applied. So the sales force training programmes are organized. 9. To provide proper service to the Warana Bazaar customers and the members so that they can get the feeling that the Bazaar is for their service through proper behaviour with the customers.
10. The fluctuating rates which are provided by the head office to all branches are conveyed to the customers to improve the image of Bazaar which will finally improve the overall sales.
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11. Cleanliness: Cleanliness is the mirror of mind. Cleanliness is maintained in the bazaar because it makes effect on mind of the customer which may help to improve the purchase and increase the overall sales. 12. Light Facilities: Proper arrangement for lighting is done in bazaar to highlight different products which becomes attraction for the customers which increases the overall sales. 13. Display: Display is a silent salesman. The display of goods in Warana Bazaar is done attractively so that it attracts the customers towards the product and which forces the customer to purchase it. 14. Medicines Department: The timing of the medicines department is from Morning 8:00 am to Night 9:00 pm. The medicines are made available to the customers at reasonable rates. All type of medicines are made available. 15. Park for children: The Colgate-Palmolive company has sponsored for the play park for children in the area of Warana Bazaar.
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Competitors: Considering the Warana Bazaar there is no such retail chain as their competitors but the private Kirana stores act as competitors at initial stages in the areas where the branch of Warana Bazaar is established. Initially when the branches were established at Kameri and Danoli villages, it was seen that the per day sales of the branches was Rs.10000/- to Rs. 15000/- but now the average per day sales has reached up to Rs. 40000/-. Franchisees: Table No: 7 Sr. No 1 2 3 4 5 6 7 8
Warana Bazaar Franchisee Takawade Tung Dudgaon Rukadi Jotiba Herle Kasabe Digraj Nandre
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Dist: Kolhapur Dist: Sangli Dist: Sangli Dist: Kolhapur Dist: Kolhapur Dist: Kolhapur Dist: Sangli Dist: Sangli
Date of Commencement 01-10-2005 03-04-2006 24-09-2006 08-10-2006 14-10-2006 24-01-2006 17-03-2007 19-04-2007
Daily Average Sales (Rs.) 4000 13000 10000 11000 16000 6000 12000 11500
1.3 Profile of Co-operative Banks in Indian Banking Industry: The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, nonscheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old/ new domestic and foreign). Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process. As far as the present scenario is concerned the banking industry is in a transition phase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake of
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the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India. Currently, India has 88 Scheduled Commercial Banks (SCBs), 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. With passing time, Indian economy is further expected to grow and be strong for quite some time-especially in its services sector. The demand for banking services, especially retail banking, mortgages and investment services are expected to grow stronger. Therefore, it is not hard to forecast few M&A, takeovers, and asset sales in the sector. Consolidation is going to be another order of the day. The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System. They are setup to provide easy loans to farmers or other persons to set up his business. Though the co operative movement originated in the West, but the importance of such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas also have increased phenomenally in recent years due to the sharp increase in the number of primary cooperative banks. Co operative Banks in India are registered under the Co-
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operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. Banking industry has been undergoing a rapid transformation. Banks today are market driven and market responsive. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. This makes it imperative that banks provide best possible products and services to ensure customer satisfaction. They have been managing a world of information about customers, their profiles, location, needs, requirements, cash positions, etc. Furthermore, banks have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention. They are focusing on region-specific campaigns rather than national media campaigns as effective strategy for a diverse country like India. Customercentricity also implies increasing investment in technology. Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the major steps taken by the banks in India towards modernization. Some cooperative banks in India are more forward than many of the state and private sector banks. According to NAFCUB the total deposits & lendings of Cooperative Banks in India is much more than Old Private Sector Banks & also the New Private Sector Banks. This exponential growth of Co operative Banks in India is attributed mainly to their much better local reach, personal interaction with customers, and their ability to catch the nerve of the local clientele.
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1.4 Profile of Warana Bank:
SHREE WARANA SAHAKARI BANK LTD; WARANANAGAR, TAL: PANHALA DIST: KOLHAPUR. ESTABLISHEMENT: 28-02-1966. Reg. No.: KPR/BNK/123, Dated 28-02-1966 Reserve Bank License No: DBOD.UBD.MH.364, P. 21-11-1983. Jurisdiction: Kolhapur, Sangli, Pune, Satara, Solapur, Raigad, Ratnagiri, Sindhudurg Districts and Navi Mumbai (Vashi). History: Late after independence, there were many challenges before the country. Out of those were poverty, illiteracy, unhealthiness, etc. There was a requirement for the development in areas of agriculture industry through which the challenges could be overcomed. During those days the Warana Valley region was situated in the hilly areas where irrigation was the major problem and the farmers had to follow dryland cultivation. There were no
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options for the development of the people, which lead to arise of loots, dacoits and robberies in the Warana Valley. At such time there emerged a diamond in Kodoli village of Warana Valley who lightened up the lives of the rural people in the Warana Valley. He was Shri. Vishwanath Anna alias. Tatyasaheb Kore. For the people he was not just a common man but who took birth for the rural people to diminish the illiteracy and the darkness of poverty. He was the person responsible for changing the lives of more than 5 Lakh people on the earth. He worked for the rural community until his last moment. Shri. Tatyasaheb Kore first established Cooperative Sugar Factory for which he struggled day and night. He suggested the rural people to grow cash crops, for which irrigation was necessary. For meeting the purpose of irrigation, he started irrigation schemes and also he requested the government to construct dam. And at last the dryland agriculture was totally converted into irrigated land with his efforts. But only availability of irrigated land was not just a plus point but proper overall management was necessary i.e. management of water and development of Agriculture as a business and also other secondary businesses which will be supporting agriculture. The farmers needed financial assistance for the development and at the times of difficulties. There was a need of a bank in rural areas which would help the farmers by giving them loans at cheaper interest rates. For this purpose the Registrar gave permission for the establishment of co-operative bank in rural area in Maharashtra on trial basis. It was started with initial paid up share capital of Rs. 1.28 Lakh on 28/02/1966.
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The development of co-operative bank in rural area, its financial status, and management was seen by Reserve Bank of India. Then RBI under Banking Regulation Act, 1949, Rule No. 56 (O) gave Banking License to the bank on 21/11/1983. After that the bank has made a super fast growth during last 37 years. Bank started 4 branches in Kolhapur district, 1 branch in Sangli district and 1 branch in the economic capital of India i.e. Mumbai at Washi. At present there are 23 branches and 1 extension counter and all are computerized. The bank provides maximum loans to the rural artisans like the potter, cobbler, welder, etc to develop their small businesses. Also it provides loans for the purchase of Truck, Tractors, Rickshaw, and Vans. The dreams dreamed by Shri. Tatyasaheb Kore to start the Warana cooperative complex and with the same dreams keeping in mind and working on it efficiently to make those dream true by the Chairman of Warana Sahakari Bank, Mr. Nipunrao Kore and Hon. Vinayraoji Kore are working wholeheartedly to fulfill those dreams of Shri. Tatyasaheb Kore. The bank which took birth in the rural area and started its branches and operations in urban areas i.e. Warana Sahakari Bank, Warananagar. The development of sugarcane cultivator, farmers in the Warana Valley was only due to the establishment of Warana Cooperative Sugar Factory. But it was not the limit for Tatyasaheb Kore. He wanted the other people in the unreached areas like small and marginal farmers, village artisans, landless labourers, agricultural labourers, and backward class people to be developed. Today all economic transactions in Warana are through Warana Cooperative Bank Ltd. To maintain the strong economy of the valley, the
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bank took shape in 1966. It is creating the banking mind in the rural population. The bank is playing a pivotal role in the overall development of Warana and the rural mass. It provides loans at subsidized interest rates for all farmers, weaker section and the needy. The efficiency of the bank is reflected on the latest statistical information like Rs. 67 crores of deposits are accepted and around Rs. 50 crores loan has been lent. The bank is aiming still high in the days to come. The bank even accepts NRI deposits. Probably this is a unique bank where the branches are spreading from the rural head office to city branches. General Information: Table No: 8 (Rupees in Lakhs.) As on 31-03-2008 1.
Shareholders
2. Authorized Capital 3. Paid up Share Capital 4. Total Reserves and Funds 5. Deposits 6. Deposits Accounts 7. Advances 8. Advances Account 9. Working Capital
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17782 1500.00 793.92 2134.76 32198.14 134478 20123.75 18938 35897.14
10. Audit Class 11. Profit (31-03-2008) 12. Dividend (31-03-2007)
“A” 117.40 10%
Source: Annual Report
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Branches: i.
Main Branch, Warananagar.
ii.
Laxmipuri, Kolhapur.
iii.
Kini, Tal: Hatkanagale, Dist: Kolhapur.
iv.
Herle, Tal: Hatkanagale, Dist: Kolhapur.
v.
MIDC, Shiroli, Tal: Hatkanangale, Dist: Kolhapur.
vi.
Ichalkaranji, Tal: Hatkanangale, Dist: Kolhapur.
vii.
Bhavani Mandap, Kolhapur.
viii.
Peth Vadgaon, Tal: Hatkanangale, Dist: Kolhapur.
ix.
Jaysingpur, Tal: Shirol, Dist: Kolhapur.
x.
Extension Counter, Warana College.
xi.
Shiroli Pulachi, Tal: Hatkanangale.
xii.
Bagal Chowk, Kolhapur.
xiii.
Kodoli, Tal: Panhala, Dist: Kolhapur.
xiv.
Pargaon, Tal: Hatkanangale.
xv.
Aitawade Khurd, Tal: Walwa, Dist: Sangli.
xvi.
Khochi, Tal: Hatkanangale, Dist: Kolhapur.
xvii.
Shigaon, Tal: Walwa, Dist: Sangli.
xviii.
Satave, Tal: Panhala, Dist: Kolhapur.
xix.
Chikurde, Tal: Walwa, Dist: Sangli.
xx.
Kale, Tal: Panhala, Dist: Kolhapur.
xxi.
Vashi, Navi Mumbai.
xxii.
Mangale, Tal; Shirala, Dist: Sangli.
xxiii.
Market Yard, Sangli.
xxiv.
Market Yard, Kolhapur.
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Awards won by Warana Sahakari Bank Ltd, Warananagar: •
Maharashtra State Co-operative Banks Association Ltd, Mumbai’s Late. Padmabhushan Vasantdada Patil Best Co-operative Bank Award.
•
Kolhapur District Cooperative Banks Association’s First Award for -- Best Co-operative Bank. -- Best Bank Management. -- Best Recovery Management.
Features of Warana Bank: •
Proper Distribution of profits: Table No: 9 Particulars a. Reserve Fund b. Dividend to Members @10% c. Rural bad debts funds d. Building Fund Balance of Profit for next year Total
Amount 38,00,000.00 73,62,000.00 33,78,000.00 3,00,000.00 382.74 1,48,40,382.74
•
Provide loans at lower interest rates.
•
Provide insurance to the members (Aviva Life Insurance).
•
Provide General Insurance (Bajaj).
•
Samvad Programme/Customer Meet – During the year 2003-04 the bank started a novel idea of “Customer Meet” and these meets are held at Kolhapur, Sangli, Jaysingpur and Ichalkaranji wherein the bank tried to establish ‘productive dialogue’ with the customers. The customers give an overwhelming response regarding the problems of
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customers in bank, the suggestions for the improvement and their demands. •
Biometric system ATM – Thumb impression are used to withdraw cash upto Rs. 30000/-.
•
Electricity bill payment facility started.
Facilities provided to the staff: •
Two dresses per year.
•
Medical allowance upto Rs. 2000/-
•
Bonus upto 20%.
•
Incentives upto 10% of his pay.
•
Special deposit scheme.
•
Housing loans.
•
Loan against payment.
•
Vehicle loans.
•
Cash credit loan.
Competitors of Warana Bank: Following are some of the competitors of Warana Bank: •
Ichalkaranji Janata Bank, Ichalkaranji.
•
Ratnakar Bank, Kolhapur.
•
Bank of India.
•
State Bank of India.
•
Kolhapur District Central Co-operative Bank.
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Report of the Statutory Auditors for the year 2007-08 (Under section 81 (5b) of Maharashtra Co-op Societies Act and Rule 69 of Maharashtra Co-op Societies Rules as applicable under Banking Regulation Act.) We have audited the Balance Sheet of ‘Warana Sahakari Bank Ltd’ as on 31st March, 2008 and also Profit & Loss Account for the year ended on that date. These financial statements are the responsibility is to express an opinion on these financial statements based on our audit. We have conducted our Audit in accordance with Auditing Standards generally accepted in India. These standards require that we plan and perform the Audit to obtain reasonable assurance about whether the Financial Statements are free of material misstatement. An audit also includes assessing the accounting principles used and significant estimates made by the Management as well as evaluating the overall financial statement presentation. We believe that our Audit provides a reasonable basis for our opinion. We report that 1. We have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of Audit. 2. In our opinion proper books of accounts as required by the law have been kept by the bank as far as appears from our examination of the books.
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3. The Balance Sheet and Profit & Loss account dealt with by this report are in agreement with the Books of Accounts. 4. In our opinion and to the best of our knowledge and according to the explanation given to us, the books of accounts are in conformity with the law. a. In case of Balance Sheet of the state of affairs of the bank as at 31st March, 2008 and b. In case of Profit and loss Account, of the profit for the year ended on that date are in accordance with part ‘a’, ‘b’, & ‘c’ of the Audit Report and show true and fair view. c. After considering the working and functioning during the year 2007-08 the bank is allotted Audit Grade “A”.
Date: 25/09/2008 Place: Kolhapur. S/d Girish A. Samant Partner Mem. No. 104820
(For M/S. Powar, Samant, and Jagoje Chartered Accountants.)
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Chapter II
The Project
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2.1 Title:
“Evolution of Warana – Beyond the Lucky Gold Star Group”.
2.2 Objectives: •
To study the role of leadership in starting up of Warana Bazaar and Warana Bank and its progress.
•
To identify the competitive advantages of Warana Bazaar and Warana Bank Vis a Vis the other retail outlets and the banks.
•
To provide a SWOT analysis of the functioning of Warana Bazaar and Warana Bank besides, a future perspective of the same.
•
To know the response of customers towards the Warana Bazaar.
2.3 Expected Results: Following results are expected from the project: Drawing management and leadership lessons from Warana Bazaar and Warana Bank which can be applied to similar other organizations. Future performance and competitiveness of Warana Bazaar and Warana Bank.
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2.4 Advantages of the study: This study shows the ultimate effects of the growth of professionalism in co-operatives. The study shows whether the cooperative will withstand in future and fight the battle of independence. This study highlights the changes coming in co-operative management due to mixture of essence of visionary leadership.
2.5 Limitations of Project Study: Following limitations may come while conducting the project. Due to the limited availability of time, the study was conducted on a
short
term
basis
which
increases
the
chances
of
misinterpretations. Reluctance of people in taking active participation due to lack of interest. Sampling errors may be the other limitation. Based on the results further research can be carried out taking large area and sample size.
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Chapter III
Research Methodology
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3.1 Definition:According to John Best, “Research is a more systematic activity directed towards discovery and the development of the organized body of knowledge”. Marketing Research is the systematic design, collection, analysis and reporting of data and finding relevant to a specific marketing situation facing the company. The marketing research process consist of five steps such as defining the problems and research objectives, developing the research plan, collecting the information, analyzing the information presenting the findings. 3.2 Data Collection: While deciding about the method of the data collection to be used for the study, the researcher should keep in mind two types of data i.e. primary and secondary. There are two methods of data collection: 3.2.1 Primary data: The primary data are those which are collected a fresh and for the first time. Collect the primary data during the project. Primary data will be obtained either through observation or through direct communication with respondent and interviews. 3.2.2 Secondary data: Secondary data are those which have already collected by someone else and which have been already passed through the statistical process. Sources of secondary data may either be published data or unpublished data. Usually published data are available in various publications through the central, state, & local
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government. Technical and trade journals, books, magazines, news papers, unpublished data also like reports, diaries, letters, trades associates. Here in this study the researcher have used secondary data means the data which have already been collected by someone else and which have already been passed through the statistical process. Here the researcher has used the secondary data in the form of:•
Data from finance department.
•
Data from the Internet.
3.3 Methods utilized for Study: The development of WARANA can be compared with the development of “The Lucky Gold Star Group” of South Korea. But due to time constraints I have selected only “Warana Bazaar” and “Warana Bank” for my study. Case studies on history of leaders of Warana starting from Tatyasaheb Kore and others. Interaction
with
professionals
and
their
perception
about
performance and future perspective. Performing SWOT analysis and financial performance of Warana Bazaar and Warana Bank. Semi-structured questionnaires were prepared as per the need for the present study and data was collected by personal interviews and through discussion with different stake holders. Secondary data was collected from the records of the organization a.e. annual reports, literatures and other sources.
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Chapter IV
Data Processing and Analysis
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A. WARANA BAZAAR: 1) Members: TABLE NO: 10 Manpower Involvement (31/03/2007): Sr. No 1 2 3 4 5 6 7 8
Manpower Individual Members Board of Directors Purchase Committee Members Staff Committee Members Branch Committee Members Audit Committee Members Recovery Committee Members Franchisee Committee Members Total Staff
Male
Female
Total
2211 9 2 2 5 3 3 4 389
7892 10 4 4 2 3 2 3 121
10103 19 6 6 7 6 5 7 510
TABLE NO: 11
Members Year
Male
Female
Total
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
1833 2085 2210 2210 2212 2215 2225 2225 2226 2225 2227 2219 2211 2211 2212
5667 6571 7473 7479 7477 7481 7551 7551 7553 7554 7581 7576 7776 7892 7898
7500 8656 9683 9689 9689 9696 9776 9776 9779 9779 9808 9795 9987 10103 10110
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Figure: 2 From the above graph we can see that the number of members in 199394 were 7500 and in 2007-08 were 10110. The faith of people on the Warana Co-operative Complex and Tatyasaheb and his family was the main reason for the increasing interest in Warana Bazaar by the members.
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2) Share Capital (31/03/2007): TABLE NO: 12 Sr. No 1 2 3 4
Members Individual Government Warana co-op Sugar Factory Other Institutions
Rs. in Lakhs 53.85 9.38 2.00 0.26 65.49
TABLE NO: 13
Share Capital
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Year
Rs. in Lakhs
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
35.24 38.46 41.50 52.84 57.90 56.98 56.79 54.86 54.67 61.28 62.5 62.78 66.02 65.49 63.75
Figure: 3 From the above figure it can be seen that the share capital of Warana Bazaar is continuously increasing from Rs. 35.24 lakhs in 1993-94 to Rs. 63.75 lakhs in 2007-08. Also as on 31/03/2007 the individual share capital of Warana Bazaar was Rs. 53.85 Lakhs and that of governments share was Rs. 9.38 Lakhs. The share of co-operative sugar factory was Rs. 2.00 Lakhs.
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3) Working Results: TABLE NO: 14 2002-03
2003-04
2004-05
2005-06
2006-07
Particulars
2001-02
Sr.
1)
Sales
46.36
47.22
51.00
61.44
68.86
80.00
2)
(Crores) Gross Profit
294.18
317.55
309.97
330.51
368.56
393.39
3)
(Lakhs) Net Profit
04.65
05.47
06.63
07.31
8.90
9.97
4)
(Lakhs) Audit Class
No
“A" Class Since Beginning
From the above table it can be seen that the sales of Warana Bazaar is growing continuously with the increase in net profit from the year 2001-02 to 2006-07. Warana Bazaar has got Audit Class “A” since beginning.
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Financial Assistance from the Government:
Share Capital
Loan for furniture
Furniture Subsidy
Loan for Godown
Godown Subsidy
Managerial Subsidy
Warananagar Vadgaon Retail Outlet
10.00 05.00 24.20
2.625 1.125 08.65
0.875 0.375 4.500
0.75 ** **
0.25 ** **
0.50 0.20 2.35
Sr. No 1 2 3
(Rs. in Lakhs)
Branches
TABLE NO: 15
From the above table we can see that the total amount of financial assistance from government to different branches of Warana Bazaar for different purposes like godown, furniture, etc. was Rs. 61.40 Lakhs from which the amount refunded up to 31/03/2007 as per installment given was Rs. 45.53 Lakhs.
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4) Total Sales: TABLE NO: 16
Total Sales Year
Rs. in Crores
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
20.39 25.29 28.44 31.11 32.64 37.62 41.56 44.13 46.36 47.22 51.07 61.44 68.86 80.00 81.67
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Figure: 4
From the above graph we can see that the amount of sales from the Warana Bazaar including the two departmental stores and the other retail outlets is continuously increasing from 1993 upto 2008. This is due to the different features of Warana Bazaar which includes cheaper rates, quality produce, easily available at doorsteps, different schemes and good after sales service. Due to this the level of satisfaction of customers has been increased from the services provided by Warana Bazaar. Due to this the customer loyalty towards Warana Bazaar has been increased.
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6) Total Income: TABLE NO: 17 Total Income: Year
Rs in Lakhs
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
117.08 137.94 143 179 206 252 272 294 308.79 335.17 328.4 352.58 391.5 425.24 485.53
Figure: 5
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B. WARANA BANK: 1) Performance Highlights: TABLE NO: 18 Performance Highlights Particulars Paid up Share Capital Total Reserves and Funds Total Working Capital CRAR Deposits Loans Investments Total Income Total Expenses Net Profit Net NPA % Business per Employee Profit per Employee Audit Class
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2005-06 610.09 1233.64 1843.73 29253.71 9.63% 26671.08 16689.66 10137.33 2675.54 2584.30 91.24 3.81% 167.42 0.35 “A”
Amount in Lakhs 2006-07 2007-08 705.53 793.92 2002.61 2103.76 2708.14 2897.68 30115.62 35897.14 11.60% 11.68% 26687.69 32198.14 17726.54 20123.75 9833.14 12314.32 2960.23 3205.28 2845.89 3056.88 114.34 148.40 3.15% 2.88% 172.82 198.94 0.44 0.56 “A” “A” Source: Annual Reports
2) Loans Sanctioned: TABLE NO: 19
Loans Sanctioned Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
Amount (in Lakhs) 6682.43 7762.56 8050.21 8538.67 11379.46 14714.89 16689.66 17726.54 20123.75 Loans Sanctioned
Figure: 6 25000 20000 15000
Amount
10000 5000 0 2000
2001
2002
2003
2004
2005
2006
2007
2008
The loans sanctioned by Warana Bank are the result of the timely repayment of the loans by the farmers. So the amount of loans sanctioned is increasing year by year due to easy procedure and quick recovery.
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3) Profit Earned: TABLE NO: 20 Year 2001 2002 2003 2004 2005 2006 2007 2008
Profit Earned Amount (in Lakhs) 052.52 064.95 081.69 104.71 071.12 091.24 114.34 148.40
Figure: 7
From the above graph we can see that the profit level of Warana Bank is continuously increasing year by year. In the year 2001 the profit earned was Rs. 52.52 Lakhs and now the profit earned in the year 2008 is Rs. 148.40 Lakhs.
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4) Working Capital: TABLE NO: 21 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008
Working Capital Amount (in Lakhs) 10901.30 12872.78 14495.67 15959.03 19889.70 24746.01 29253.71 30115.62 35897.14
Figure: 8 The working capital requirement of Warana Bank is also increasing year by year which results in the increasing level of profit. 5) Deposits: TABLE NO: 22 Year
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Deposits Amount (in Lakhs)
2000 2001 2002 2003 2004 2005 2006 2007 2008
9453.52 11366.69 12559.86 13808.51 17254.71 22262.09 26671.08 26687.69 32198.14
Figure: 9
DEPOSITS
From the above graph it is clear that the deposits from the members are gradually increasing year after year.
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Objective 1: To study the role of leadership in starting up of Warana Bazaar and Warana Bank and its progress.
Founder
SAHAKARMAHARSHI LATE SHRI.V.A. Alias TATYASAHEB KORE (1914-1994). •
A freedom fighter and social reformer.
•
A close associate of Former Dy. Prime Minister Late Yashwantrao Chavan.
•
A strong believer in Co-operative movement.
•
A great visionary who believed in "Rural Development through Cooperative Movement."
•
A leader who changed barren land into a prosperous area comprising of 80 villages by establishing Warana Co-operative Complex.
•
He deeply studied on each and every aspect of projects before applying his thoughts.
•
He was a person with a long term vision.
•
He used to encourage the people for their development by helping them to start small businesses due to which the standard of living of people improved.
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•
He had very much attachment towards doing any work and he struggled for the accomplishment of such a work.
•
He had no political interest in any of the organization within the complex.
•
He had no personal interest during his work. He just worked for the upliftment of the rural people.
•
Each time he concentrated on the aspects like planning, organizing, and coordination in any organization.
•
Also he concentrated on the idea creativity and always he accepted newer ideas from the professionals, friends and other people regarding the developments in Warana Valley.
Warana Co-operative Sugar Factory: Sixty years back Warana was a barren land and has emerged on the world map as a model for all-round development of the region through continuous efforts of all concerned under the able leadership of late Shri. Tatyasaheb Kore, a man with great vision and commitment towards the upliftment of the poor. Shree Warana Co-operative sugar factory was founded in the year 1956. Warana Co-operative sugar factory has the best proved many times Co-operative sugar factory in the country. It has proved to be a nucleus for the multi –faceted development of the region and for bringing about the upliftment of the masses. In other words, we can say that without knowing the definition of marketing (creation and delivery of standard of living) late Tatyasaheb Kore has done such a Herculean task within a short span of 60 years. Sugarcane was the main crop cultivated by the farmers in the region of Warana Valley. The farmers use to cultivate sugarcane for the purpose of
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production of jaggery, because there were no such techniques available for the extraction of sugar from sugarcane in the surrounding areas. So the farmers used to depend on the production of jaggery and sell it. The farmers were not able to fetch appropriate price for jaggery which did not cover their cost of production of sugarcane. Sometimes the farmers used to burn the crop of sugarcane due to low market prices for jaggery. This condition was seen by Shri. Tatyasaheb Kore. He thought that the farmers should get higher prices for sugarcane and the cost of production should be covered. An idea stuck in his mind to start a co-operative sugar factory for the people. He got this idea to start the sugar factory from the Pravara cooperative sugar factory of Pravaranagar. His plans were supported by the Government at that time. He was helped by Former Dy. Prime Minister Late Yashwantrao Chavan to convert his dreams in truth. There were many problems during the establishment but Tatyasaheb didn’t stop his work. He faced those problems firmly. Later on the people realized the importance of work done by Tatyasaheb and then they went on with him to carry forward and complete the task. The successful establishment of a co-operative sugar factory in 1959 completely revolutionized the life of Warana. Today it is the backbone of this complex. With this factory Tatyasaheb Kore and his magnificent team touched the lives of the entire weaker section. Through this co-operative sugar factory the downtrodden started growing rich and their life standards were updated. The working efficiency has broken all the existing records in the long-standing Indian history of sugar industries. This co-operative sugar factory has bagged first prize for its best technical efficiency in the year 1988-89 at the National Federation of Co-operative Sugar Factories Ltd. New Delhi. In 1991-92 it has also been awarded by Vasantdada
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Sugar Institute, Pune for its best technical efficiency in Southern region of Maharashtra. The sugar factory has also bagged many prizes from the National Federation of co-operative sugar factories Ltd., New Delhi. Warana Co-operative Complex’s total growth is dependent on this sugar factory. This is parent unit from which Warana is drawing inspiration and enthusiasm for its overall growth. Every effort is being put to make the sugar factory an ideal one. His dream was to bring the people in the 80 villages in and around Warana Valley above poverty level. To make available the irrigation facilities, he started irrigation schemes. He forced the government to construct dams and bunds over the Warana river. Warana Bazaar: The dream for starting the Warana Bazaar was dreamed by Tatyasaheb Kore before 25 years. But he was not the person who only dreamed, but he was on who brought the dreams into reality. For this he used to wait for appropriate time to come and the appropriate person to be identified. He had the powers and ability to start the consumer co-operative but he knew the pros and cons. So he waited for 25 years. Luckily at that time there was scheme of National Co-op. Consumers Federation Ltd. to start cooperative consumer stores in the rural areas in India. The consultancy and promotional cell of the federation identified Warananagar as the appropriate place. Before starting any project in Warana Valley, it would be pre planned. When he visited Italy and Japan for the purpose of visit to the paper mills, he visited different shopping malls during his leisure time and applied some ideas for the development of Warana Bazaar. The dream of starting Warana Bazaar came into existence on 2 nd April, 1978. At that time Shri. Tatyasaheb got an honest and reliable person for
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Warana Bazaar. He was Mr. Vijay Kesarkar. He was the first General Manager of Warana Bazaar. The aim to start Warana Bazaar was that, the people in the Warana Co-operative Complex should get the essential goods at reasonable rate and better quality at one place. The Warana Bazaar was started on three major principles i.e. quality material, assured weight and minimum price. The main objective to start the store was to make available the essential goods at the doorsteps to the members, farmers and workers working in the nearby areas like dairy, poultry, sugar factory, etc. The Warana Bazaar branches were helpful in the distribution of the sugar to members at the rate of Rs. 2/- per kg upto 7 kg per member per month. It saved much time and energy of farmers to go to the factory and get sugar. Tatyasaheb expected that every common man should remain satisfied. There was much opposition of the merchants and traders during the establishment. Merchants and traders used to divert the minds of people by saying that it was impossible to start up such a kind of Bazaar. But still he managed the people and he was successful in attracting the people towards Warana Bazaar. Warana Dairy: With the sole intention of supplementing the income of zealous farmers a great idea of dairy farming was put forth in the minds of enthusiastic team. This resulted in the birth of the Warana Dairy, in 1968. This white revolution has spread to all other 78 surrounding villages and added revenue of Rs. 150 crores per annum. The aim of starting the Warana Dairy was that, Tatyasaheb thought that there should be a secondary business of the farmer which would support the agriculture business. So the farmers were supplied with cattle initially and they were helped to
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maintain these cattle for their feeding and other day to day activities like vaccination, etc. The dairy plant has a capacity to handle more than 300,000 litres of milk of which 100,000 litres can be converted into milk products. A clean and efficient management of dairy brought the proud products of Warana like Warana pasteurised Milk, Milk Powder, Ghee, Butter, Shrikhand, Amrakhand, Lassi, Cheese, and Strawberry Desert etc. These products once tasted chase the taster. The dairy has made its strides all the way. The turnover for the year 1997-98 was Rs. 138 Crores. By selling 2035 tonnes of Shrikhand in the year 1998, Warana reached a new record of maximum selling of Shrikhand in India. For its qualitative and quantitative excellent performance dairy has acquired an ISO 9002 Certification in record time of three months. M/S. Cadbury India Ltd. has joined hands with Warana Dairy and started production of Bournvita, Drinking chocolate and Cocoa Powder. "Warana Stymena" - a malted milk product has bagged a mammoth order of 550 metric tonnes from the Indian Army. Even the 60% of total production of the Cadbury India Ltd.'s Bournvita is produced from Warana Dairy. This simply reflects the quality and efficiency of the dairy. Warana Dairy has won many awards for its quality products and efficiency. The dairy, in future, has ambitious plans to venture into products like branded cheese, pasteurised butter, beverages and ice creams. This will surely bring many credentials and laurels to Warana. Warana Cattle-feed division is producing the quality cattle feed, which is supplied to the farmers for their cows and buffaloes, at subsidized prices. •
Lassi: "Warana lassi" The all season drinks its most popular drink from Warana.
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•
Shrikhand: Largest manufacturer & seller of Shrikhand in four flavors Badam Pista, keshar, mango & Elachi.
•
Ghee: Ghee is a quality product from Warana available in different packing sizes.
•
Cheese: The products Mozzarella cheese, processed cheese.
•
Butter: Salted butter, white butter & yellow butter are the best products.
•
Milk: Milk & milk products from India like milk powder, cheese, paneer, ghee, butter, and lassi.
Warana Bank: The bank which took birth in the rural area and started its branches and operations in urban areas i.e. Warana Sahakari Bank, Warananagar. The aim of starting the Warana Bank was to make available credit for the farmers for land development, purchasing machinery, seeds, pesticides, fertilizers, etc in easy way. It was a major challenge for Shri. Tatyasaheb to gather the capital required to start the bank. He gathered the amount of Rs. 1 Lakh and to be paid to the government to register the bank within 4 days. The member’s along with Tatyasaheb collected the amount and paid it to government and got the bank registered within 4 days.
The
development of sugarcane cultivator, farmers in the Warana Valley was only due to the establishment of Warana Cooperative Sugar Factory. But it was not the limit for Tatyasaheb Kore. He wanted the other people in the unreached areas like small and marginal farmers, village artisans, landless labourers, agricultural labourers, and backward class people to be developed. Today all economic transactions in Warana are through Warana Co-operative Bank Ltd. To maintain the strong economy of the valley, the bank took shape in 1966. It is creating the banking mind in the
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rural population. The bank is playing a pivotal role in the overall development of Warana and the rural mass. It provides loans at subsidized interest rates for all farmers, weaker section and the needy. The efficiency of the bank is reflected on the latest statistical information like Rs. 67 Crores of deposits are accepted and around Rs. 50 crores loan has been lent. The bank is aiming still high in the days to come. The bank even accepts NRI deposits. Probably this is a unique bank where the branches are spreading from the rural head office to city branches. Warana Educational Complex: Preparing the mass to march towards 21st century. Education alone can revolutionize education alone can create awareness; education alone can transform the lives; and education alone can make the mass to march ahead. With an ideal idea of building stronger India, Shree Warana Vibhag Shikshan Mandal was born in 1964. Within few years of its establishment, it has made a great impact on the minds of the youngsters, and it is achieving its goals with rapid strides. Under the roof of the Shikshan Mandal many educational institutions are running which are: SHREE WARANA VIDYAMANDIR
An ideal school for an ideal valley with an ideal idea. Shree Warana Vidyamandir is offering education in Marathi medium from Lower KG to 4th standard. The school emphasizes on character building and discipline.
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SHREE WARANA VIDYALAYA
A model for Gurukul System. Shree Warana Vidyalaya, which is a residential school from 5th to 10th standard, has attracted several people for its unique educational system. Getting the admission at the residential school is becoming a prestigious issue, which speaks the standard of the school. TATYASAHEB KORE ENGLISH ACADEMY
Preparing the kids to the modern roaring technologies of the world. To compete anywhere in the world, today, a disciplined English medium education has become essential. To prepare the kids of the Warana valley to the forthcoming challenges, Tatyasaheb Kore English Academy has started functioning since 1994. It has English medium education starting from lower Kinder Garten to High school level. TATYASAHEB KORE MILITARY ACADEMY
Unique of its kind. A unique kind of Sainik School was established in 1997 to teach the individual, the necessity of disciplined education. In its preliminary stages itself, it has achieved many successes with its disciplinary acts. This Sainik School is striving to prepare the students who can entirely take up the responsibility of protecting their Nation and motherland. YASHWANTRAO CHAVAN WARANA MAHAVIDYALAYA
Inspiring the rural youth. Yashwantrao Chavan Warana Mahavidyalaya with its Arts, Science and Commerce faculties is attracting the rural youth and guiding them to shape their future. With its highly qualified staff it is commanding respect from the people around.
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TATYASAHEB KORE INDUSTRIAL TRAINING INSTITUTE
Quenching the thirst of the technical mass. An industrial training institute [I.T.I.] was established with the sole intention of imparting the technical education to the rural youth who have passed 10th standard. It is offering training to the students in the field of Welding, fitting, electrical and sheet metal. After the completion of the course the practical training is also given to the students in Training Cum Production Centre [T.C.P.C.]. Soon it is planning to start Machinist and Turner courses. TATYASAHEB KORE TRAINING CUM PRODUCTION CENTRE
A laboratory where things take shape. A Training Cum Production Centre [T.C.P.C.] was set up to absorb the newly trained youth in I.T.I. Quality based materials take shape in this workshop. The youth after few years of practical training in TCPC are ready to face the challenges of the practical field. Shortly it is proposing to have a tie-up with M/s. Godrej & Co. for quality products. TATYASAHEB
KORE
INSTITUTE
OF
ENGINEERING
TECHNOLOGY
Shouldering the responsibility of technicalities of technology and to bring the technical education to the doorsteps of the rural mass, Tatyasaheb Kore Institute of Engineering and Technology [T. K. I. E. T.] was established in 1983. The Institute is approved by All India Council for Technical Education, New Delhi and awarded “A " grade for its overall achievements in the field of Technical Education. The institute with its Civil, Chemical, Electronics and Mechanical Engineering undergraduate disciplines has made a stupendous growth over the years. Institute is also offering even postgraduate course in Electronics Engineering (Vocational) and Chemical Engineering (Regular). The Institute is planning to add the
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Computer Engineering, Information Technology and Biotechnology engineering disciplines to its wings. And also planned to start post graduation course in Civil Engineering. Every member in the family should be literate and educated was the dream of Shri. Tatyasaheb Kore. So he established educational complex. Today the Warana Educational Complex is considered one of the top educational complexes.
Warana Poultry: Every farmer's family should have small poultry, which can supplement the additional income. This was the dream of Late Shree Tatyasaheb Kore and he advanced to achieve the same. The result is that today around 500 poultry units are working. Central poultry unit was set up to provide layer birds, feed, veterinary facilities and marketing of egg. The farmers were given training in scientific rearing of birds, which help them to maintain their own poultry unit. Today Warana is successfully producing more than 13.2 million eggs per annum. A leadership self assessment activity was conducted in Warana Bazaar wherein the leaders of Warana Bazaar and Warana Bank were assessed for the level of preference or comfort with leadership characteristics and skills. In this 50 characteristics and skills of leader were mentioned like communication skills, honesty, decision making power, etc. and those were rated as very strong, moderately strong, adequate, moderately weak, and very weak. The maximum score was 250 and the minimum score was 50. The evaluation was done for maximum scores. It was observed that the leaders who are at present leading the organizations scored maximum
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which shows that they are well on their way to become a leader. They believe that there is opportunity for growth by improving the relationship with the employees, farmers, and all others who are directly or indirectly related to Warana Co-operative complex. Also the leaders they like to learn newer things and try to search for newer opportunities.
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Objective 2: To identify the competitive advantages of Warana Bazaar and Warana Bank Vis a Vis the other retail outlets and the banks. What is Competitive Advantage? A company’s ability to outperform its competitors (earn higher profits). Any advantage a company has over its competitors because it can do something which they cannot or it can do something better than they can.” An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retains more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.
These include: • Providing products at low cost • Differentiating features • Serving unique needs • Expertise • Resource strengths • Capabilities to do new things
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Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. The principle of “Co-operation Amongst the Co-operatives” is incorporated in
different
organizations
in
the
Warana
Cooperative
Complex.
Tatyasaheb used to say that “Money saved is equal to Money earned”. According to this principle the money saved of the people in and around Warana Valley reaches upto the amount of rupees 12 crores. There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.
In the case of WARANA BAZAAR the competitive advantages identified which generate greater sales or margin and retain customers were as follows: •
As far as the cost advantage of Warana Bazaar is considered over its rivals, the Bazaar has direct contacts with the producers, processors and different FMCG industries. By taking the advantage of these contacts, Bazaar procures the goods directly from these
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producers or processors. This direct procurement from industries minimizes the cost of goods due to shortening the marketing channel and reducing the middlemen’s commission. •
Also the supply chain of Warana Bazaar is very efficient by which the goods are made available for the customers as per their needs at right time, in right quantity and at right place with best quality.
•
The forecasting of demand for the goods is carried out taking into consideration different factors like seasons, festivals, previous years demand, etc so that the inventory level to be maintained for right kind of goods and which can be made available to the customers.
•
The products offered by Warana Bazaar at its two departmental stores and other branches and franchisees is same all over as per the price list generated by the head office.
•
The other characteristic of Warana Bazaar is that, when there is rise in the price for the goods in the market, the increase in the price level of the goods is not immediately informed to the farmers and the sale of the goods is carried on as per the previous rates but when there is price fall in the market for the goods, immediately the farmers are informed of the price fall and they are sold goods at the lower or reduced prices. This is the strategy used by Warana Bazaar to retain the existing customers and attracting new customers.
•
Also some of the goods like edible oil are private labeled and sold by the name of Warana Bazaar.
•
Most of the procurement of the foodgrains is done from the farmers, so quality material is obtained.
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•
As far as the differentiations based on better services are considered the services provided by Warana Bazaar to their customers is best. Each and every customer is welcomed at the entrance of the Bazaar. Due to this respect towards the customer is shown and the proverb “Atithi Devo Bhava” which means “Customer is God” is proved. Every customer is treated friendly. They create a feeling in the mind of the customer that the Bazaar is for their service and they have given a chance to the Bazaar to provide them service.
•
Queries and problems of customers are solved by providing best services; the customers are guided by the staff during the purchase.
•
The after sales service of Warana Bank is also best. There are no such complaints registered yet regarding the after sales service.
•
Home delivery services are also provided by Warana Bazaar.
•
Credit Facility for the members of Warana Co-operative Complex.
•
Different schemes are launched by Warana Bazaar during festive seasons like Diwali, Dassera, and Akshay Tritiya, for bulk purchases.
•
Goods are provided at discount rates or discount coupons are given to the customers on purchase of goods worth Rs. 250/-.
•
Exhibitions of different cereals and pulses is arranged in the complex like
“Tandul
Mahotsav”,
“Gul
Mahotsav”,
“Dal
Mahotsav”, etc. which increases the overall sales in these exhibitions.
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•
The customers are also made aware of the fake and spurious goods in the market by arranging the awareness programmes like “Ashihi Bhesal Ashihi Chalakhi”.
•
The customers are provided goods in the packaging suitable for them i.e. 250g, 500, 1 kg, 5 kg, etc.
•
The Warana Bazaar brand itself shows the quality goods at cheaper rates.
•
Captured majority of market share in rural areas.
In the case of WARANA BANK the competitive advantages identified over its rivals which generates greater margins and retain customers are: •
Proper distribution of profits.
•
The customers of the bank are provided loans at lower interest rates.
•
The procedure for sanctioning loan is easier than the other banks. Minimum number of documents is required.
•
The installments for repayment are as per the feasibility of the farmers to repay them.
•
Provide insurance to the members (Aviva Life Insurance).
•
Provide General Insurance (Bajaj).
•
Samvad Programme/Customer Meet – During the year 2003-04 the bank started a novel idea of “Customer Meet” and these meets are held at Kolhapur, Sangli, Jaysingpur and Ichalkaranji wherein the bank tried to establish ‘productive dialogue’ with the customers. The customers give an overwhelming response regarding the problems of customers in bank, the suggestions for the improvement and their demands.
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•
Biometric system ATM – Thumb impression are used to withdraw cash upto Rs. 30000/-.
•
Electricity bill payment facility started.
•
Captured majority of market share in rural areas.
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Objective 3: To provide a SWOT analysis of the functioning of Warana Bazaar and Warana Bank besides, a future perspective of the same. SWOT Analysis of WARANA BAZAAR: Strengths: •
The Warana Co-operative Complex is clustering together itself. It is the strength of Warana Bazaar.
•
The Warana Co-operative Sugar Factory which is the mother institute of all other co-operatives is also the strength and backbone of the Warana Bazaar.
•
The cooperation of Management Body i.e. Chairman, ViceChairman and Directors of Warana Bazaar.
•
The competitive prices of products of Warana Bazaar as compared to the rivals.
•
Experienced personnels in each and every department.
•
Low operating cost of the organization including overhead capital expenses.
•
Warana Bazaar pattern has become a highly developed pattern which is employed in various other co-operative bazaars.
•
Brand image in the community.
•
Loyal customers.
•
Strong and well built relations with different producer organizations.
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•
Highly
experienced
and
visionary
management
body
and
management professionals i.e. General Manager, Purchase Manager, Accounts Manager, Sales Manager, etc. •
Well designed and structured marketing channel.
•
Well defined organizational setup. Authorities and responsibilities are delegated to each and every individual at each level in the organization.
•
Marketing strategies are highly structured considering the rural customer base and also changing with changing environment.
•
The price and quality of the products in Warana Bazaar speak i.e. the word of mouth publicity.
•
No political involvement in the operations i.e. the authorities are delegated to the respective organizational heads in the cooperative complex i.e. General Manager in Warana Bazaar so that there should be efficiency in the working of organization.
•
Professionalism in serving the people at large.
•
Captured majority of market share in the rural areas within the area of operation. If the bazaar plans to start a branch at any place, it is just a job of 3 days for the management.
•
Well developed network of 40 branches and 6 franchisees.
•
Continuous knowledge upgradation of managerial personnels by exposing them to different seminars and visits i.e. continuous learning.
•
Proper control over maintaining the inventory level and the bazaar is trying to maintain zero inventory level.
•
Vilasrao Kore Consumer Co-operative Training Centre for training the employees.
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•
Timely payment for goods procured which maintains good relationship with the producers or the suppliers.
Weaknesses: •
Training of manpower available in rural areas has become a rigorous job (increasing their IQ level, training for sales, etc.) because the consumer demands for different services are increasing.
•
The organization personnels are not accustomed to use the latest technologies i.e. use of computers, internet by the professionals (not more proficient due to heavy work schedule and coordination).
•
Overstaffing in various departments.
•
Under communication of branch managers with the head office i.e. communication between the branch manager and the head office is lacking for some sort of requirements or orders.
•
Less devotion towards work of different personnels in the organization.
Opportunities: •
Demand for Warana Bazaar branch at every outskirt of district and also beyond district places.
•
Developing the convenient shopping stores chain of retailing in India.
•
Increasing the number of products range.
•
Private labeling and its expansion is also an opportunity for Warana Bazaar.
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•
It is seen that there is no automobile service station in the nearby areas. Therefore it is an opportunity to start a service station in the area.
•
There is scope to keep perishable commodities in Warana Bazaar like vegetables, fruits, etc. for selling.
Threats: •
Political changes in Warana Co-operative Sugar Factory, Warana Dairy, etc which largely affects the development of Warana Bazaar.
•
Big retail chains are planning to target the rural areas to start their operations like Reliance Fresh, Tata Kisaan Sansar, Godrej Adhar, etc. which may compete with Warana Bazaar.
•
Private entrants may imitate the policies of Warana Bazaar to attract the customers. This condition has been already started by small retailers and they compete up to cut throat level in the festive seasons.
•
If there is entry of any private retail chain, and if they offer services better than Warana Bazaar, then the customers may get diverted.
Future perspective of Warana Bazaar: In future Warana Bazaar is planning to start bar code system in all branches so that it will become easy to make bills efficiently and correctly. Also Warana Bazaar is planning to make the two departmental stores air conditioned so that it will create good ambience. The future of Warana Bazaar is very much bright in coming years. Warana Bazaar has already created a brand image in the minds of
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the people. The people have become very much familiar with Warana Bazaar and have become loyal towards the bazaar. Bazaar should make use of this advantage for the expansion of Warana Bazaar i.e. the expansion of departmental stores in its own infrastructure.
SWOT Analysis of WARANA BANK: Strengths: •
Customer Loyalty.
•
Image of Warana Bank in the Market.
•
Captured majority of share in rural areas.
•
Well developed infrastructure.
•
Manpower availability.
•
Highly visionary Management Body.
•
Well developed network of branches.
•
Continuous upgradation of knowledge of managerial personnel’s by exposing them to different seminars, visits, etc.
Weaknesses: •
Repayment of loans is not achieved in time.
•
No loans can be given over exposure norms.
•
Efficiency of employees.
•
Attrition rate.
Opportunities: •
Core Banking.
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•
Internet Banking.
•
Increasing number of Biometric Cash Dispensing Machines (ATM’s).
•
Expansion of the network of branches.
Threats: •
Restrictions from RBI for Co-operative Banks.
•
Difference between Nationalized and Co-operative Banks.
•
Observing the failure condition of the other co-operatives, the farmer members are withdrawing their accounts.
•
Investment in government securities is compulsory. But due to recession the profit is in the direction to decrease. So it has become a threat for the bank to invest in government securities.
Future perspective of Warana Bank: a. In today’s modern field of banking the people are in need of quick services. So for this the bank is going to start Core Banking Solution. The importance of core banking is increasing day by day. Due to the core banking solution system, the information from the branches can be easily transmitted to the main branch in short time, due to which the processing will become efficient. To get benefit of this system, the bank has completed work of Data Centre building and the interior work has been finished at Kolhapur. Initially some of the urban branches will be connected to this Data Centre. After observing the results, the other branches will be connected later on. b. The bank has started the Biometric Cash Dispenser (ATM) service in Kolhapur and Warana areas in 3 branches. Warana Bank is the first
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bank to give such type of service to the people in rural areas and the bank is trying to give this service in maximum branches. c. Observing the current economic status and thinking of the new economy, there should be many changes made in the economy regarding the banking sector. The coming years will be challenging one for banks for which the banks should be ready to face those challenges by using newer technologies, efficient use of available manpower. d. It has become a challenge for the bank in today’s competitive age to keep up its position which it is at current stage i. e. “A” grade. e. In future the bank is planning to open up new branches at Pune, Satara, Bambavade and Miraj.
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Objective 4: To know the response of customers towards the Warana Bazaar. TABLE NO: 23 Particulars
Frequency Table for Population Frequency Percentage
Male Female Total
38 22 60
63.33 36.67 100
Figure: 10 When the customer satisfaction survey of 60 farmer members was conducted in the areas of Warana Bazaar, it was observed that only 37% of female members responded to the survey and rest 63% male members responded to the survey.
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Age Group (Yrs.) Below 20 20-30 30-40 Above 40 Total
TABLE NO: 24 Frequency Table for Age Group Frequency Percentage 0 18 25 17 60
0 30 41.66666667 28.33333333 100
Figure: 11 From the survey it was observed that out of 60 members, majority of the customers i.e. about 42%, visiting Warana Bazaar were in the age group between 30-40 years, 30% of the customers were of the age group between 20-30 years and about 28% customers were of the age group above 40 years.
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Qualification Illiterate 12th pass Graduate Post Graduate Total
TABLE NO: 25 Qualification Frequency 12 35 12 1 60
Percentage 20 58.33333333 20 1.666666667 100
Figure: 12 Considering the qualification of the customers, it was observed that out of 60 members about 58% customers are 12th pass, 20% customers are Illiterate and 20% customers are graduate. Only 2% of the customers are post graduate.
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TABLE NO: 26 Monthly Expenses Monthly Expenses 500 500-1000 1000-2000 2000-5000 Total
Frequency 11 20 25 4 60
Percentage 18.33333333 33.33333333 41.66666667 6.666666667 100
Figure: 13 From the survey conducted of 60 members regarding the monthly expenses on purchase of goods from Warana Bazaar, it was observed that about 42% customers purchased goods of Rs 1000/- to Rs. 2000/per month, while about 33% customers purchased goods of Rs. 500/- to Rs. 1000/- per month and about 7% customers purchased goods of Rs. 2000/- to Rs. 5000/- per month. The remaining 18% customers purchased goods of Rs.500/- per month. These were the customers which included the college students, the people below poverty level.
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TABLE NO: 27 Benefits from Warana Bazaar Benefits Frequency Reasonable Rate 57 Good Quality 60 Variety Choices 59 Assured Weight 58 Credit Facility 1 At door step 55
Percentage 95 100 98.33333333 96.66666667 1.666666667 91.66666667
Figure: 14
Surveying the customers for the benefits they get from the purchase from Warana Bazaar it was observed that 100% of the customers were benefited from the quality products they purchase, about 98% of customers were benefited by getting variety of choices in purchase of goods, 97% of customers were benefited by getting goods with assured weight, 95% of customers were benefited by the reasonable rates of the goods, 92% of customers were benefited by getting the goods at their door step. While only 2% people were benefited by the credit facility because the credit facility is available only for the members.
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Particulars Yes To some extent No Total
TABLE NO: 28 Display of Goods Frequency 56 4 0 60
Percentage 93.3333333 6.66666667 0 100
Figure: 15 When the customers were surveyed for the display and arrangement of goods in Warana Bazaar, 93% customers were satisfied with the display and arrangement of goods in Warana Bazaar. About 7% customers were satisfied to some extent with the display and arrangement of goods. There was a suggestion for the display of ayurvedic medicines with the amount to be consumed at a time and also the purpose for which it has to be consumed. Also one customer suggested changing the outer showcase displays as those were too old.
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TABLE NO: 29 Product Mix Satisfaction Particulars Frequency Yes 58 To some extent 2 No 0 Total 60
Percentage 96.6666667 3.33333333 0 100
Figure: 16 When the customers were surveyed for the product mix satisfaction they get from Warana Bazaar, it was seen that about 97% of the customers were satisfied with the product mix available in Warana Bazaar; only 3% were satisfied to some extent.
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Chapter V
Findings and Recommendations
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Findings: a. After studying the progress of Warana Co-operative Complex, it was seen that the development just matched the development of South Korea’s Lucky Gold Star Group which started its development with a cosmetic factory which continued with development of plastic industry and reached upto manufacture of satellite communications. Similarly the development of Warana Co-operative Complex started with the development of Warana Co-operative Sugar Factory and continued with the development of other organizations such as Warana Dairy, Warana Bank, Warana Bazaar, Warana Poultry, Warana Educational Complex, etc. This was the vision of Shri. Tatyasaheb Kore to establish such organizations and his role to convert these dreams into reality was worthy. b. After studying these organizations it was seen that the authorities and responsibilities were delegated to the respective organizational heads and without much political interference due to which any decisions could be taken effectively and which could develop professionalism. c. It was seen that the credit facility made available to the customers is not in the level which it should be. d. When the study of members was done on the basis of annual reports, it was seen that the number of members drastically increased during the year 1993 to 1995 e. The accounts department of both these organizations is working very efficiently. Each and every branch has a separate auditor who audits the accounts monthly due to which any defects in the accounts could be identified. f. The competitive advantages of Warana Bazaar and Warana Bank over their rivals are such that those can generate higher sales with higher
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margin and they can retain the existing customers and also attract new customers. g. When the SWOT analysis of Warana Bazaar and Warana Bank was performed it was seen that the strengths of both these organizations were such that these strengths can be used to take the advantage of the
opportunities
available
and
by
taking
the
advantage
of
opportunities the weaknesses of these organizations could be overcomed. Also the strengths can be used to avoid the threats. h. When the response of customers was taken towards the Warana Bazaar, the overall response of customers regarding the services provided by Warana Bazaar was positive and the customers were satisfied with the product display and the product mix. Most of the customers were loyal to the Warana Bazaar because they purchased goods from bazaar since 10-15 years. i. By studying the financial aspects of these organizations, it was seen that these organizations are continuously growing as far as the sales or income and profit level is concerned. The curve of development has reached at a peak stage and also there are chances for future development. j. The use of mirrors to minimize thefts was very much interesting concept which is applied in every branch. k. There were a few complaints from the Agro Service Centre Department regarding the services provided by them. Conclusion: Warana Bazaar and Warana Bank are functioning as envisioned by Shri. Tatyasaheb Kore and it seems that the future generation of Shri. Tatyasaheb Kore i.e. Shri Vinayraoji Kore and Nipunraoji Kore, both are
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managing these organizations very efficiently without much political interference. Thus we can conclude that the future of Warana Bazaar and Warana Bank is very much bright. During the customer satisfaction survey few suggestions were given by the customers: •
The ayurvedic medicines which are kept in Bazaar should be labeled for their use and the quantity to be consumed.
•
The number of employees in some branches should be increased by calculating the profitability of that branch.
•
The area of Warana Bazaar’s main branch should be increased so that it will become comfortable for the customers to purchase goods.
•
The outer display of Warana Bazaar should be changed and should be made attractive which will attract more and more customers.
Recommendations: Warana Bazaar: 1. After the study it was seen that the credit facility given to the customers was not enough which has to be increased. 2. The area under the departmental stores should be increased to avoid congestion during the purchase. 3. The exterior of the store should be changed so that the customers will be attracted for the purchase. 4. In some branches number of employees should be increased to give better services to the customers.
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5. The store should expand its product range and add newer categories in it like furniture etc. 6. Bar code system should be immediately applied in different branches to increase the efficiency of work. 7. The inventory level of branches should be checked time to time so that the cost on inventory will be minimized. 8. The bazaar should plan for installing close circuit cameras in order to minimize thefts in the bazaar. 9. The bazaar should pay attention to the Agro Service Centre where there are few complaints of the customers regarding the services provided by them to avoid negative publicity. 10.The interface between the producers and consumers should be improved. 11.The credit facilities should be increased for the consumers (members). Warana Bank: 1. Warana Bank should increase the number of Biometric Cash Dispensing Machines (ATM’s) as early as possible. 2. Warana Bank should use the funds for promoting more local projects in the area.
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The Reference Matter: Bibliography 1. Ray G L, Mondal Sagar; Research Methods in Social Sciences and Extension Education, 1st edition, 1999, Kalyani Publishers, New Delhi. 2. Kothari C.R; Research methodology, 3rd edition, 1997, Vikas Publishing House Pvt. Ltd, New Delhi. 3. An autobiography of Shri. Tatyasaheb Kore. [Mi ek Karyakarta(in Marathi), Vol. I and II]. 4. Warana Bazaar, Silver Jubilee Year, 2003. 5. Datta Samar K (2005), “Bonhooghly Fishermen’s Cooperative Society: Beginning of an Indian ‘Lucky Goldstar?”, Page Number 1. 6. Datta Samar K (2004), ‘My Journey through Cooperatives and Beyond- In search of a Governance Structure for Stakeholder Cooperation’, Paper presented to a Symposium on ‘Cooperative Governance’ at Institute of Rural Management (IRMA), December, 2004.
7. Datta Samar K, Bhate Rucha, Nilakantan Rahul, (2005), “Cooperative Reforms: Light at the end of the tunnel?”
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Appendix: Questionnaire: Date:
1. Name : 2. Locality: 3. Phone No:
4. Age Group: Below 20
20-30
30-40
Above 40
5. Qualification:
12th Pass
Illiterate
Graduate
Post Graduate
6. Occupation:
7. Total monthly expenses on domestic goods (Rs):
500
500-1000
1000-2000
2000-5000
8. You like to purchase goods from:
Departmental store (Warana Bazaar)
Provisional Store
Small Retail shop
9. Which benefit do you get from purchase form Warana Bazaar?
Reasonable rate
Good quality
Assured weight
Credit facility
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Variety choices At door step
10.Do you like to purchase goods by self-service system in Warana Bazaar?
Yes
To some extent
No
11.Are you satisfied with purchasing in self service shop?
Yes
To some extent
No
12.Since when did you start purchasing from Warana Bazaar?
13.How far do you like the system of display of goods in Warana Bazaar?
Yes
To some extent
No
14.Are you satisfied with the staff and sales people in the Bazaar?
Yes
To some extent
No
15.Are you satisfied with the after sales service of the Bazaar?
Yes
To some extent
No
16.Are you satisfied with the overall service of the Bazaar?
Yes
To some extent
No
17.Does Warana Bazaars’ product mix satisfy your all needs with respect to variety and price?
Yes
To some extent
No
18.Would you like to give any suggestions for Warana Bazaar?
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