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eMarketing and eCommerce opportunities
This is a research report on
eMarketing and eCommerce opportunities
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Hemant Padalkar
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Marketing
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Internet Marketing
section of our research repository.
1565 views, 0 comments, Last Update: Mar 4, 2012.
A PROJECT REPORT ON “MARKET POTENTIAL SURVEY FOR E-MARKETING AND E-COMMERCE IN BARAMATI CITY AREA” AT DEORE CONSULTANCY SERVICES, PUNE BY HEMANT L. PADALKAR B. Com GUIDED BY Prof. S. B. PAWAR B.E. (Mech), MBA SUBMITTED TO "UNIVERSITY OF PUNE" IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) THROUGH S.V.P.M.’S INSTITUTE OF MANAGEMENT MALEGAON (BK), BARAMATI (YEAR: 2010-2012)
Acknowledgement
A journey starts with a single step. It is my great pleasure and proud to be able to complete and present this project report on “Market potential survey for E-Marketing and E-Commerce in Baramati city area” within the given span of time. The completion of this project work is an important beginning and a milestone in my professional life and the completion of the same was possible only with the inspiring and valuable guidance, cooperation and united support rendered to me by. Mr. Ankush Deore, Director, Deore Consultancy Services Pvt. Ltd. Pune, Miss Ashwini Pilangwad and my other colleagues at Deore Consultancy Services. Not only did they guided me in this project, but also taught me the basic practical skills required to be a good manager. I am deeply indebted and thankful to them for their valuable support and guidance. I would like to thank Dr. S.S. Jadhav, Director, S.V.P.M.?s Institute of Management, for his valuable support and having faith in me. I am also thankful to my project guide Prof. S. B. Pawar for his time to time guidance and valuable suggestions he has given throughout the project work. I also want to thank Prof. Neelkanth Dhone for his continuous support and motivation. It would be unfair if I forget my friends and family members who have always encouraged me to carry on my project with the great zeal and undisturbed work that helped me to concentrate on the given work to complete it within the stipulated period. I express my sincere thanks to all of those who supported me directly or indirectly in carrying out this project. I would also like to thanks all the respondents for giving me their precious time and relevant information and experience that I required, without which this project would have been a different story.
HEMANT LAXMAN PADALKAR
DECLARATION
I, the undersigned hereby declare that the Project Report entitled “Market potential survey for E-Marketing and E-Commerce in Baramati city area” written and submitted by me to the University of Pune, Pune in partial fulfillment of the requirements for the award of degree of Master of Business Administration under the guidance of Prof. S. B. Pawar is my original work and conclusion drawn therein are based on material collected by myself.
Place: Date: HEMANT LAXMAN PADALKAR
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that HEMANT PADALKAR is a bonafide student of S.V.P.M’s INSTITUTE OF MANAGEMENT. He has successfully carried out his summer project titled “MARKET POTENTIAL SURVEY FOR E-MARKETING AND E-COMMERCE IN BARAMATI CITY AREA” AT DEORE
CONSULTANCY SERVICES, PUNE in the partial fulfillment of Master of Business Administration course of University of Pune (2011 - 2012). He has worked under our guidance and direction. His work is found to be good and complete in all respect. During the period we found him hardworking, sincere and loyal. We wish him all the best for future.
PROF. S. B. PAWAR (PROJECT GUIDE)
DR. S.S. JADHAV (DIRECTOR)
INDEX
SR.NO. I
1.1 1.2 1.3 II 2.1 III
PARTICULARS Introduction
Theoretical background Market segmentation Scope Company Profile Product Profile Objectives
PAGE NO. 1 – 20
7 – 17 18 – 19 20 – 20 21 – 30 26 – 30
31 – 31 32 – 36 37 – 46
37 – 38 39 – 46
IV V
5.1 5.2
Research Methodology Data Analysis
Current Statistics Data Analysis and Interpretation
VI VII VIII IX X
Findings Suggestions Conclusion Bibliography Annexure
47 – 48 49 – 49 50 – 50 51 – 52 53 – 57
List of tables
SR.NO. 1 PARTICULARS Internet Users in the world as on March 31st 2011 World Internet Penetration Rates as on March 31st 2011 India Internet Usage and Population Statistics Distribution of companies based on type of business Distribution of companies based on annual turnover Distribution of companies based on operating area Distribution of companies based on owning of a website Distribution of companies based on awareness 8 about E-Marketing and E-Commerce Distribution based successful online / credit card 9 transactions carried by an indivisual Distribution based on companies selling their 10 products online Distribution based on willingness of companies to sale their products online 45 44 43 PAGE NO. 37
2 3 4
37 38 39
5
40
6
41
7
42
11
46
List of figures
SR.NO. 1 PARTICULARS Percentage of Internet Users in the world as on March 31st 2011 World Internet Penetration Rates as on March 31st 2011 India Internet Usage and Population Statistics Distribution of companies based on type of business Distribution of companies based on annual turnover Distribution of companies based on operating area Distribution of companies based on owning of a website Distribution of companies based on awareness 8 about E-Marketing and E-Commerce Distribution based successful online / credit card 9 transactions carried by an indivisual Distribution based on companies selling their 10 products online Distribution based on willingness of companies to sale their products online 45 44 43 PAGE NO. 37
2 3 4
37 38 39
5
40
6
41
7
42
11
46
I
Introduction
Introduction
There is no doubt about it – the Internet has changed the world we live in. Never before has it been so easy to access information, communicate with people all over the globe and share articles, videos, photos and all manner of media. The Internet has led to an increasingly connected environment, and the growth of Internet usage has resulted in declining distribution of traditional media: television, radio, newspapers and magazines. Marketing in this connected environment and using that connectivity to market is E-Marketing. E-Marketing embraces a wide range of strategies, but what underpins successful E-Marketing is a user-centric and cohesive approach to these strategies. Marketing is about conversations, and the Internet has become a hub of conversations. The connected nature of the Internet allows us to follow and track these conversations, and provides entry points for all parties. The increasing use of Internet has forced organizations to enhance their operations online. Internet subscribers in India have already crossed over 100 million internet user base (of which 40 million people in India access the Internet from work, 30 million from Cafes, 12.32 million households have a broadband connection installed), and another 40 million Internet users in India access internet through their mobile phones. The IT industry is expecting
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internet penetration rate to increase from the current rate of 6.9%, which shows that their lies a bright future for the e-marketing and E-Commerce firms. Advances in telecommunications and computer technologies in recent years have made computer networks an integral part of the economic infrastructure. More and more companies are facilitating transactions over web. There has been tremendous competition to target each and every computer owner who is connected to the Web. Although business-to-business transactions play an important part in E-Commerce market, a share of ECommerce revenues in India is generated from business to consumer transactions. E-Commerce provides multiple benefits to the consumers in form of availability of goods at lower cost, wider choice and saves time. People can buy goods with a click of mouse button without moving out of their house or office. Most experts believe that overall E-Commerce will increase exponentially in coming years. Business to business transactions will represent the largest revenue but online retailing will also enjoy a drastic growth. Online businesses like financial services, travel, entertainment, and groceries are all likely to grow. For developing countries like India, E-Commerce offers considerable opportunity. It is believed that low cost of personal computers, a growing installed base for Internet users will help fuel E-Commerce growth in India. According to a McKinsey-Nasscom report by the year 2012, E-Commerce transactions in India are expected to reach $150 billion. Indian middle class of 288 million people is equal to the entire U.S. consumer base. This makes India
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a real attractive market for e-commerce. There has been a rise in the number of companies taking up E-Commerce in the recent past. Major Indian portal sites have also shifted towards E-Commerce instead of depending on advertising revenue. Many sites are now selling a diverse range of products and services from flowers, greeting cards, and movie tickets to groceries, electronic gadgets, and computers. With stock exchanges coming online the time for true ECommerce in India has finally arrived. There are many challenges faced by E-Commerce sites in India. The relatively small credit card population and lack of awareness among general public create a variety of payment challenges. Delivery of goods to consumer by couriers and postal services is not very reliable in smaller cities, towns and rural areas. However, many Indian Banks have put the Internet banking facilities in place for the upcoming E-Commerce market. The speed post and courier system has also improved tremendously in recent years. Modern computer technology like secured socket layer (SSL) helps to protect against payment fraud, and to share information with suppliers and business partners. With further improvement in payment and delivery system it is expected that India will soon become a major player in the E-Commerce market. While many companies, organizations, and communities in India are beginning to take advantage of the potential of E-Commerce, critical challenges remain to be overcome before E-Commerce would become an asset for common people.
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Organizations are starting to provide E-Commerce facilities like B2B, B2C etc. to create value for their customers and to increase their competitive edge in face of a fierce competition. There have been ballooning growths in online retailers in past few years websites such as flipkart.com, infibeam.com and ebay.in have seen phenomenal success in past few years. Consumers, on the other hand change rapidly from one website to other as it very easy to find best deals online on different websites and all it takes is a click on a link and you can visit a competitors website which may offer more attractive deals for products you are looking for, also there are other reasons for losing consumers like – effectiveness and friendliness of a website, logical flow, webpage loading times, graphics, security feature, browser compatibility and finally professional look. Many new technologies like Near field communication, or NFC, allows for simplified transactions, data exchange, and connections with a touch. It is anticipated to become a widely used system for making payments by Smartphone. With help of many payment options like - cash on delivery (COD), use of credit cards, debit cards, credit cards with EMI facility, netbanking/ bank transfer, mobile/ cash cards it has become very easy to shop for anything online. As all retailers online provide strict security for all products, they mostly provide guaranties such as “7 days return, no questions asked” policy, “in transit insurance”, etc., it has become more secure to shop online.
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With increase of integration of logistics with online retail business, it has decrease the lag time between placing of order and delivery of product. Nowadays products are delivered within days to the customer as oppose to weeks previously. All the E-Commerce business have integrated and streamlined their business activity with logistics which provides both pickup and drop facilities and hence decrease lag time. E-Commerce and E-Marketing has lot of potential in India, only hindrance is the ambiguity in minds of both customer and retailers. There has been little or no awareness about these mediums and hence traditional businesses shy away from getting involved in online trading. Same goes for the consumers - general public is still scared to do transactions online. Almost all banks offer some form of security/ protection for online transactions which in turn has made hacking and online fraud impossible. Security measures such as requirement of a passcode (sent only to registered mobile of account holder) for completion of a transaction has made it impossible to complete transaction without this pass code. With increasing no. of broadband users and recent entry of 3G in India there is going to be ballooning growth of internet users, all of which can be prospective customers for any kind of online business. It has become more economical for new entrepreneurs to start new ventures online due to low capital requirements. Anybody with little knowledge of internet can start selling online. Websites such as eBay provide you with all required facilities and tools to setup your shop online without you having to know anything about
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coding etc., everything is automated right from the point of placing of an order to the time it is delivered to the customer. E-Commerce in India still has huge untapped potential & will continue to grow robustly. There are multinational companies like amazon.com coming to India from abroad as they want to expand their market beyond their local country, and they are looking to tap into the potential of Indian market. People are getting more and more web savvy when it comes to cell phones. We will see the integration of E-Commerce with other technologies out there such as social networks which will play a major role in the E-Commerce world. Social networks such as facebook can influence the popularity of a product. Looking at the near future, E-Commerce will become an industrial revolution in India. I have been an avid online shopper since 2004, when I got my first savings account with net banking facility from Axis Bank. I have shopped from numerous website and had experienced both positive and negative aspects of online shopping. I wanted to know both consumers and retailers opinions about E-Commerce and E-Marketing and wanted to find out about public awareness and willingness to shop/ sale online and hence chose EMarketing and E-Commerce as subject for my project.
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1.1
Theoretical Background
E-Marketing Definition and scope:
Internet marketing or E-Marketing is a component of electronic commerce. Internet marketing is also referred to as „Online Marketing?. EMarketing can sometimes include information management, public relations, customer service, and sales. Recently E-Commerce and E-Marketing have become popular due to increase in widespread availability of internet services. E-Marketing is nothing but the use of information technology for creating, communicating, and delivering value to the customer, and also for managing customer relationship such as it benefits the organization and its shareholders. To put it more simply - E-Marketing is application of information technology on traditional marketing. E-Marketing affects traditional marketing in two ways: 1) It increases efficiency and effectiveness in traditional marketing functions. 2) The technology of E-Marketing transforms many marketing strategies which results in new business models that add customer value and/or increase company profitability. Rapid growth of the internet and the subsequent bursting of the „DOT COM? bubble coupled with mainstreaming of the internet and related technologies created today?s climate for marketing convergence.
Comprehensive integration of E-Marketing and traditional marketing allowed
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creating seamless strategies and tactics. Many digital technologies such as the mobile phone also converged with the digital camera and personal digital association (PDA). Convergence is an important theme for e-marketing. How does e-marketing relate to business? E-Business is the continuous optimization of firms business activities through digital technology. E-Business involves attracting and retaining the right customers and business partners. It integrates business processes, such as product buying and selling. It includes digital communication, E-Commerce and online research, and it is used by every business discipline. E-Commerce is the subset of eBusiness which focuses on transactions. E-Marketing is only one part of an organization?s eBusiness activities.
Business models:
Internet marketing is associated with several business models. The main models include ? Business-to-Business (B2B) ? Business-to-Consumer (B2C). ? Peer-to-Peer (P2P) B2B consists of companies doing business with each other, whereas B2C involves companies selling directly to the end consumer. B2C model was first to emerge when Internet marketing started, B2B transactions were more complex and came about later. The third less common business model is peerto-peer (P2P) in this model individuals exchange goods between themselves.
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Benefits of e-marketing:
E-Marketing gives businesses of any size access to the mass market at an affordable price, and unlike TV or print advertising it allows truly personalized/ targeted marketing. Specific benefits of E-Marketing include: ? Global reach - A website can reach anyone in the world who has Internet access. This allows you to find new markets and compete globally. ? Lower cost - A properly planned and effectively targeted E-Marketing campaign can reach the right customers at a much lower cost than traditional marketing methods. Also investment needed to start an ECommerce business is far less compared to traditional business. ? Traceable, measurable results – email or banner advertising makes it easier to trace how effective a campaign has been. It is possible to obtain detailed information about customer?s responses to an advertisement or how many times an advertisement has been clicked. It is even possible to know how many times the mouse cursor hovered in and out of an advertisement. ? 24x7 marketing – Having an E-Commerce website or putting an advertisement online makes it possible for prospective customers to find out about products and buy products from a website 24 hours a day and 7 days a week even when shops are closed. This gives the customer freedom of shopping any time he desires.
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? Personalization - If customer database is linked to a website it is possible that whenever a returning customer visits the website a customer specific targeted offer is displayed to that customer which can be based on past shopping data stored on the website servers. The more the customer buys the customers profile is refined and it is possible to target offers more effectively to that customer. ? One-to-one marketing - E-Marketing make it possible for companies to approach people who want to know about company?s products and services instantly. For example, many people take mobile phones and PDAs wherever they go; combine this with the personalized aspect of EMarketing this makes it possible to create very powerful, targeted campaigns. ? More interesting campaigns - E-Marketing lets companies to create interactive campaigns using music, graphics, animation and videos. An advertisement can be in any form like a game, quiz, animated banner or in general anything that can attract or generate customer?s interest in the product. ? Better conversion rate - If a company has a website it is possible for a customer to purchase any of the company?s products by click a few links on the website which is unlike any other media which requires people to get up and make a phone call or post a letter or go to a shop and spend hours browsing and searching for a particular product. E-Marketing is seamless.
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Pay per click
Pay Per Click (PPC) is the hottest medium of online marketing today and is likely to be strengthen in future. With growing popularity and the ease of PPC, it can be regarded as a simple and effective way of Internet marketing through which a company can reach a targeted market very fast in order to generate more business leads and increase sales of the company?s products and services very easily. PPC advertising needs a good planning which can help a company to target product specific customers. Good planning is needed to generate effective keywords so as to match with customer?s entered keyword about company?s products or services. Another fact about PPC is that many advertisers are prohibited from bidding on keywords since their ad?s click through rates are very low, but it should be noted that that there are thousands of companies offering the same product and services and are paying high for each click, so time will come, when a company?s ad will be removed due to its low ad click through rate, therefore a company must focus on the way competitors are presenting themselves and should be prepared to prove best among all. Company must plan and generate unique and sophisticated keywords instead of common terms, and also create an ad campaign strategy so as to represent its products. In contrast to organic search engine listing, Pay Per Click does not require extensive content management and link building campaigns, but it
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should be kept in mind that site?s landing page must contain all the information that are needed to convince potential consumers.
Benefits of Pay Per Click Campaign:
? It is the cost effective method of campaigning for business, products and services. ? Company can choose minimum bid on keywords. ? Company will be linked only to targeted and potential buyers who are actively searching for its products thus gaining accuracy in business. ? It is a fast and easy medium of advertising for all kind of business as there is probability of new prospective customers viewing the ad as soon as the ad campaign is approved to go live. ? Company can guide visitors to relevant page so as to significantly improving their purchasing experience and making them more inquisitive. ? Thorough campaign report on daily, weekly or monthly basis a company can effectively know about the progress of their campaign by just logging into their account.
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E-commerce
Electronic commerce, commonly known as E-Commerce, eCommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well. A large percentage of electronic commerce is conducted entirely in electronic form for virtual items such as access to premium content on a website, but mostly electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers are now electronically present on the World Wide Web. Electronic commerce that takes place between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g.
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commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that takes place between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service involved. The sale or purchase transaction is completed electronically and interactively in real-time such as in Amazon.com for new books. However in some cases, an intermediary may be present in a sale or purchase transaction such as the transactions on eBay.com. Electronic commerce is generally considered to be the sales aspect of ebusiness. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions.
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Limitations of E-Marketing and E-Commerce
Though there are advantages of internet marketing there are some limitations that can create problems for both companies and consumers these are as follows: ? Slow Internet connections can cause irritating website loading time. ? If a company builds overly large or a complicated website its users may struggle to view or download the information available on the website. ? Internet marketing does not allow shoppers to touch, smell, taste or try tangible goods before making an purchase decision (some E-Commerce vendors have implemented liberal return policies to reassure customers, Germany for example introduced a law in 2000 Fernabsatzgesetz - later incorporated into the BGB, this allows any buyer who has brought a new product online to return the product on a no-questions-asked basis and get a full refund on their purchase, this is one of the main reasons why in Germany internet shopping became so popular.) ? Another limiting factor particularly with respect to actual buying and selling, is the adequate development (or lack thereof) of electronic payment methods like e-checks, credit cards, etc. ? Additionally, there is the need to drive people to the website. Without other mediums like print, television or radio it can often be difficult for the consumer or other businesses to find any specific address.
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Security concerns:
For both companies and consumers that participate in online business, security concerns are very important. Many consumers are hesitant to buy items over the Internet because they do not trust that their personal information will remain safe. Recently some companies that do business online have been caught giving away or selling information like credit card no. of their customers. Several of these companies have guarantees on their websites claiming that customer information will be private. By selling customer information these companies are breaking their own publicized policy. Some companies that buy customer information offer the option for individuals to have their information removed from the database (known as opting out). However, many customers are unaware that their information is being shared and are unable to stop the transfer of their information between companies. Security concerns are of great importance and online companies have been working hard to create solutions. Encryption is one of the main methods for dealing with privacy and security concerns on the Internet. Encryption is defined as the conversion of data into a form called a cipher, this cipher cannot be easily intercepted unless an individual is authorized by the program or company that does the encryption. In general, the stronger the cipher, the better protected the data is. However, the stronger the cipher, the more expensive encryption becomes.
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1.2
Market Segmentation
Market Segmentation Bases of segmentation:
It is widely thought in marketing that segmentation is an art, not a science. The key task is to find the variable or variables that split the market into actionable segments. There are two types of segmentation variables: 1) Needs 2) Profilers
The basic criterion for segmenting a market is customer needs. To find the needs of customers in a market, it is necessary to undertake market research. Profilers are the descriptive, measurable customer characteristics (such as location, age, nationality, gender, income) that can be used to inform a segmentation exercise. The most common profilers used in customer segmentation include: ? Geographic ? Region of the country ? Urban or rural ? Demographic ? Age, sex, family size ? Income, occupation, education ? Religion, race, nationality
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? Psychographic ? Social class ? Lifestyle type ? Personality type ? Behavioral ? Product usage - e.g. light, medium, heavy users ? Brand loyalty: none, medium, high ? Type of user (e.g. with meals, special occasions) Market segmentation is carried out on the basis of location or geographic area; here area under considered is Baramati city and the industrial areas present in the outskirts of city. For this project we have targeted most of the small and medium scale industries (SMI) and the big shops of specific categories which have differential products for sale and have the capacity to go beyond the specific/ defined boundaries of the market segments.
Target Market
Before a business can increase its sales it has to know about prospective customers for its products/services. Just an ideology that company will sell its products/ services to anyone is a bit being vague.Business needs to zero in on a specific segment that needs company?s products or services to figure out the target market and use market segmentation to narrow it down.
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1.3
Scope
Scope of project
1) The project is carried out in the Baramati city and the industrial zones (MIDC) around it, so the data restricts to this segment only and the time period in which the research was carried out was from 25th of May to 31st of July 2011. 2) This research is concerned only with E-Marketing and E-Commerce products and does not relate to or involve with any the other products and services carried out by Deore Consultancy services.
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II
Company Profile
Company Overview
Deore consultancy services is a growing Information Technology Consulting and Software Services company located at Pune, India. Company provides IT services for increasing efficiency and enhancing productivity while reducing operating costs of businesses. Company?s expertise lies in identifying customer?s business goals, choosing the most appropriate technology and efficiently designing & developing solutions to maximize customers “return on investment”. Customer centric approach helps the company to provide best possible solution for range of services. Deore Consultancy Services Pvt. Ltd. deals in the website design and various web solutions and IT solutions including e-commerce. Following are some of the services offered by Deore Consultancy Services Pvt. Ltd.: ? Custom Application Development ? Web Solutions ? Enterprise Application Services ? System Integration ? IT Consulting ? IT Outsourcing
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Vision Statement
“To achieve a highly efficient and effective sustainable world, with each individual having equal opportunity to enjoy its valuable resources in peaceful manner.”
Mission Statement
“To enhance efficiency and effectiveness of our customer?s businesses by providing them with most excellent and innovative information technology solutions.”
Core Ideology Core values:
1) Truth: Truthfulness in business (legal and ethical practices). We will conduct our business fairly with honesty and transparency. 2) Customer is at the highest priority. We shall strive for utmost customer satisfaction and delight. 3) Quest for innovation and creativity. We shall consistently strive for creativity and innovation in our organization.
Core purpose:
Company core purpose is the attainment of sustainable world.
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Corporate overview
The corporate governance structure specifies distribution of rights and responsibilities among different members in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company?s objectives are set, this means to attain objectives and monitor performance. This section details our board of directors in corporate structure. Currently, founder director Mr. Ankush Deore and Ms Kalyani Joshi constitute the board of Deore consultancy services. Company is in process of selecting eligible professionals for its board of directors as well as board of advisory positions.
Matrix organization:
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Company follows matrix organization structures. Matrix organization structure at DCS ensures that the project manager gets maximum autonomy and authority for taking project related decisions which is key requirement for the successful completion of the project.
Brief history
Deore consultancy services is a growing company in the search for ways to make a difference in the world economy. Mr Ankush Deore, chairman and founder director of the company started evaluating different entrepreneurial opportunities since May 2001. In June 2004 he along with ms Kalyani Joshi established “Centre for Entrepreneurship and Business Management” (CEBM) to identify, evaluate and exploit business opportunities across the globe and mainly to lay a strong foundation for a visionary company. In march 2005, “Deore Consultancy services Pvt. Ltd.” was incorporated. Currently Deore consultancy services is engaged in developing infrastructure and establishing a global customer base.
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Company Profile:
Name of the Company - Deore Consultancy Services Pvt. Ltd. Location - Pune Address - 204, Amit Court, Old Tophkhana, Memon Lane, Shivaji Nagar, Pune, Maharashtra, India. Pin Code - 411 005 Contact Person – Mr. Ankush Deore, Director.
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2.1
Products Profile
Products Deore QT
Finding out quantities has been tough task for construction companies till date, process is tedious and time consuming but is equally important as success of whole project rests on correct quantity estimates. By keeping this unique need of construction companies, “Deore consultancy services” has introduced special software solution “Deore QT”. Extensive research of two and half years has finally fruited into a unique quantity take off product with the desire to empower construction companies with technology and improve their efficiency.
Deore Estimate
“Deore Estimate” is an end to end solution for carrying out the cost estimation of various projects. It not only automates the estimation process but also helps in generating various reports which are proving to be most important documents while taking critical decisions. As estimation is carried out in the initial phase of life cycle of the project, its importance is highlighted with the fact that maximum cost reduction can be carried out with effective and accurate estimation. Doing estimation manually becomes time consuming and tedious when building plans are altered many times before they are finalized. The cost involved goes up in this process.
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Deore Inventory
Keeping inventory costs down is crucial to gain competitive advantage in present global scenario. Managing inventory has never been easy as demonstrated by “Deore inventory”. Effective management of inventory which in turn results in cost reduction, has emerged as one of the biggest challenges for management in most of the organization. “Deore inventory” provides software solution for effective management of inventory.
Deore CRM
Deore CRM empowers management to keep effective track of all the customers enquiries along with assessing payment dues on day today basis.
Deore Purchase
Deore Purchase aims at optimizing procurement process at any construction company which leads to reduction of paper work, increase in efficiency of operation and in turn improves the profit.
Deore School
Automation of schools or colleges ha started with introduction of computers. But just presence of computers is not enough. These machines need to be equipped with necessary software which can take care of day today administration, track the progress of students, analyze their performance, and
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automate library functions etc. “Deore School” is a software solution offers all of the above facilities.
Deore ORS
“Deore ORS” is an excellent assistant to any HR manager who now a days has to spend a lot of time and effort scrutinizing and recruiting right kind of people. “Deore ORS” not only streamlines the work but also helps in perfect selection.
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Services Website designing and custom application development
Deore consultancy services provide custom application development (CAD) and website development services which focus on delivering customized development of software applications and interfaces as well as enhancements to existing packaged applications or pre engineered templates and support and provision of custom applications.
Search Engine Optimization (SEO)
It is observed that 92% of the online population visits a search engine portal every day. Top ranking of a website in search engines generates more traffic which results in more awareness about a company as well as increased sales. Search engine optimization (SEO) is a process of improving website ranking among search engines. Improved rankings ensure more number of visitors which in turn generates more business for company.
E-Commerce
E-Commerce is online shop which operates 24x7 . E-Commerce solutions facilitate buyers to do business without any restrictions such as time and location. It helps in creating a virtual office without a huge infrastructure.
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Internet advertising and online branding
Internet has begun to make its presence in advertising world. In the recent developments it has been observed that internet is becoming a major channel of communication and information. Businesses abroad looking for suppliers search on internet and contact those who have a web presence. Internet advertising is one of the low cost medium of advertising which helps in targeting domestic as well as international markets. Various researchers indicate that Indians with access to the internet spend a considerable percentage of their time online; it is thus natural that an increasing number of advertisers and business are keen to advertise online.
IT outsourcing
IT outsourcing is the process of transferring an existing business function or a part of a business function over to an external provider in order to strategically use outside resources to perform activities previously handled in the same organization. IT Outsourcing (or contracting out) can also be defined as “the delegation of non- core operations or jobs from internal production within a business to an external entity (such as a sub contractor) which specialize in these operations”
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III
Objective
Title of the project
“Market potential survey for E-Marketing and E-Commerce in Baramati city area” (Covering areas under Baramati city and Baramati MIDC)
Primary objective:
To find out market potential related to E-Marketing and E-Commerce for Deore Consultancy Services, within the premises of Baramati city.
Secondary objectives:
1) To find out the untapped market potential for IT products. 2) To find out the awareness about E-Marketing and E-Commerce. 3) To find out target market for Deore Consultancy Services. To carry out awareness for Deore Consultancy Services.
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IV
Research Methodology
Research Methodology
Research is a scientific and systematic search for pertinent information on a specific topic. Research is thus an original contribution to the existing stock of knowledge making for its advancement it is the pursuit of truth with the help of study, observation, comparison and experiment.
1) Descriptive research method
It includes surveys and fact-finding enquiries of different kind. The major purpose of descriptive research is description of the state of affairs as it exists at present the main characteristic of this research is that the researcher has no control over the variables; he can only report what has happened or what is happening. By this method it was quite possible for me to gather important data and state and compare present situations with the findings of my project.
2) Applied research method
Applied research aims at finding a solution for an immediate problem facing a society or an industrial/ business organization. The central aim of the applied research is to discover a solution for some pressing practical problems. Whereas basic research is directed towards finding information that has a broad base of applications, applied research adds to the already existing body of scientific knowledge. This method was useful to find out the data for the expansion plan and the platform availability for expansion.
32
3) Qualitative research method
It involves investigating the reasons, discovering the underlying motives and desires and using in depth interview for the purpose. I have adopted field research method and interviewed the concerned persons by means of a questionnaire having closed and open ended questions in it.
Sample Design
All the items under consideration in any field of enquiry constitute a „universe? or „population?; from this universe we have selected only a few items for our study purposes, this items so selected constitute what is technically called a sample. Sample can be either probability samples or nonprobability samples. With probability samples each element has a known probability of being included in the sample but the non-probability samples do not allow the researchers to determine its probability.
Following sampling techniques were used 1) Deliberate sampling - This sampling technique involves purposive or deliberate selection of particular units from the universe (here Baramati city and the outskirts of it having various industrial zones constitute the universe). 2) Simple random sampling - This type of sampling is also known as a chance sampling or probability sampling where each and every item in the universe has an equal chance of inclusion in the sample. For the
33
samples or the companies for which no database was present I visited them randomly or made the cold calls to them and these companies were approached through my own effort. 3) Convenience sampling - When population elements are selected for inclusion in the sample based on the ease of access, it can be called convenience sampling. I collected the data by using convenience sampling methods such as from different newspapers, yellow pages, industrial directory which were selected on the basis of easy access to include them in the sample size.
Method of data collection
While deciding the method of data collection to be used for the study, the researcher should keep in mind two types of data viz. Primary and Secondary.
Primary Data
The primary data is the data which is collected afresh for the first time, and thus happens to be original in content. The secondary data on the other hand is the one which is collected by someone else and which has been passed through the statistical process. 1) Interview method - Personal interview method is used for data collection, using this method I contacted the concerned persons and interviewed them and collected the relevant data.
34
2) Through questionnaire - Interview technique is followed by the questionnaire format which consisted of various open and closed ended questions. 3) Through e-mails - Where it was not possible to meet the concerned persons I e-mailed them for further reference.
Secondary Data
Secondary data is the data which is already available I collected this data from following sources: 1) Various publications of the central, state and local government. 2) Various publications of the foreign govt., international bodies and their subsidiary organizations. 3) Technical and trade journals. 4) Books, magazines and news papers. 5) Various websites on the internet.
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Limitations of the research
Though the survey for this project has been carried out to reach meaningful conclusion and to provide recommendations on the basis of the findings during the survey, but as we know that no project is ideal and hence in reality this survey suffers from certain problems which acts as limitations of the project these are as follows: 1. The real information may not be disclosed. 2. Interviewer can provide a biased data for avoiding further questioning or as a security measure. 3. Limited time frame restricts the surveyor to come to the exact conclusion and hence authenticity of the project can be questioned. 4. The sample selected for the survey may not represent the exact universe or all of the population. 5. As the company is newly established and brand name of the company is not so known, some of the respondents didn?t entertain any requests for an interview. 6. The collected data is mainly focuses medium and small scale industries (MSI) only. So the results and findings are applicable to these companies only.
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V
Data Analysis
5.1
Current Statistics
Table 1: Internet Users in the world as on March 31st 2011
Region Asia Europe North America Latin America / Caribbean Africa Middle East Oceania / Australia No. of internet users (%) 44 22.7 13 10.3 5.7 3.3 1
Fig 1: Percentage of Internet Users in the world - 2011
Fig 2: No. of Internet Users in the world - 2011
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Table 2: World Internet Penetration Rates as on March 31st 2011
Region Asia Europe North America Latin America/ Caribbean Africa Middle East Oceania/ Australia Internet Penetration Rate (%) 23.8 58.3 78.3 37 11.4 31.7 60.1
Fig 3: World Internet Penetration Rates as on March 31st 2011 Table 3: India Internet Usage and Population Statistics
Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 Users 1,400,000 2,800,000 5,500,000 7,000,000 16,500,000 22,500,000 39,200,000 50,600,000 40,000,000 42,000,000 81,000,000 100,000,000 Population 1,094,870,677 1,094,870,677 1,094,870,677 1,094,870,677 1,094,870,677 1,094,870,677 1,094,870,677 1,112,225,812 1,112,225,812 1,129,667,528 1,156,897,766 1,173,108,018 % Pen. 0.10% 0.30% 0.50% 0.70% 1.60% 2.10% 3.60% 4.50% 3.60% 3.70% 7.00% 8.50%
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5.2
Data Analysis & Interpritation
5.2.1 Distribution of companies based on type of business Table 4: Distribution of companies based on type of business Type of Business
B2B B2C Both
No. of Companies (%)
40 40 20
Fig 4: Distribution of companies based on type of business Observation / Comments –
Equal amount of companies i.e. 40% are doing business in B2B and B2C respectively and about 20% of these are doing business in both B2B and B2C.
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5.2.2 Distribution of companies based on annual turnover Table 5: Distribution of companies based on annual turnover Turnover
Upto 10 Cr. Upto 20 Cr. Not disclosed
No. of Companies (%)
30 15 55
Fig 5: Distribution of companies based on annual turnover Observations / Comments –
There are about 55% of companies that were not ready to reveal there turnover but remaining 45% disclosed their turnover and these companies can be targeted in future.
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5.2.3 Distribution of companies based on operating area Table 6: Distribution of companies based on operating area Area
Baramati Maharashtra India International
No. of Companies (%)
35 15 13 37
Fig 6: Distribution of companies based on operating area
Observations / Comments – There are about 37% of companies that carry out their business internationally, and remaining carry out their businesses nationally - of these 13% do business all over India, 15% do business only in Maharashtra and 35% restrict their business to Baramati.
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5.2.4 Distribution of companies based on owning of a website Table 7: Distribution of companies based on owning of a website Response
Yes No
No. of Companies (%)
68 32
Fig 7: Distribution of companies based on owning of a website Observations / Comments –
Of all the companies interviwed 68% have their own website, while 32% do not own a website, these companies can be targeted as prospective coustomers for website develoupment.
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5.2.5 Distribution of companies based on awareness about EMarketing and E-Commerce Table 8: Distribution of companies based on awareness about EMarketing and E-Commerce Response
Yes No Little
No. of Companies (%)
25 10 65
Fig 8: Distribution of companies based on awareness about EMarketing and E-Commerce Observations / Comments –
Only 25 % of the interviewed had thorough knowledge about EMarketing and E-Commerce, 10% were clueless and about 65% had some kind of idea / knowledge about E-Marketing and E-Commerce, these companies can be future targets only if required information is provided to them.
43
5.2.6 Distribution based on successful online / credit card transactions carried by an individual Table 9: Distribution based successful online / credit card transactions carried by an indivisual Response
Yes Many times No
No. of Individuals (%)
55 10 35
Fig 9: Distribution based on successful online / credit card transactions carried by an indivisual Observations / Comments –
About 55% of respondants had used a credit card and / or bought something online, 35% had never used or own a credit card and had never done an online transaction, and 10% are regular online shoppers.
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5.2.7 Distribution based on companies selling their products online Table 10: Distribution based on companies selling their products online Response
Yes No
No. of Companies (%)
30 70
Fig 10: Distribution based on companies selling their products online Observations / Comments –
30% of companies interviewed are currently selling their products online while 70% are not selling their products online, these 70% of companies can increase their sale by selling their products online, but for this to happen they have to be made aware of E-Marketing and E-Commerce.
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5.2.8 Distribution based on willingness of companies to sale their products online Table 11: Distribution based on willingness of companies to sale their products online Response
Yes No Maybe
No. of Companies (%)
20 25 55
Fig 11: Distribution based on willingness of companies to sale their products online Observations / Comments –
20% of the companies interviewed were ready for taking their business online, 25% were not ready as they had their own reasons, but 55% were not sure as they had little or no knowledge about E-Marketing and E-Commerce, these companies can be prospective customers if they are educated about EMarketing and E-Commerce.
46
VI
Findings
Findings
1) Equal amount of companies are doing business in B2B and B2C respectively and some of these companies are doing business in both B2B and B2C. 2) Most of the companies were not ready to reveal there turnover but some of them disclosed their turnover and these companies can be targeted in future. 3) There are few companies that carry out their business internationally, and others carry out their businesses nationally - of these some do business all over India, some do business only in Maharashtra and remaining restrict their business to Baramati. 4) Of all the companies interviwed many companies have their own website, while few do not own a website - these companies can be targeted as prospective coustomers for website develoupment. 5) Only few of the companies interviewed had thorough knowledge about E-Marketing and E-Commerce, while most were clueless and some of these companies had some kind of idea / knowledge about E-Marketing and E-Commerce - these companies can be future targets only if required information is provided to them. 6) About half of the respondants had used a credit card and / or bought something online, majority had never used or own a credit card and had
47
never done an online transaction, and very few are regular online shoppers. 7) Some of the companies interviewed are currently selling their products online while some are not - these companies can increase their sale by selling their products online, but for this to happen they have to be made aware of E-Marketing and E-Commerce. 8) Few of the companies interviewed were ready for taking their business online, some of the companies were not ready as they had their own reasons, but about half of the interviewed companies were not sure as they had little or no knowledge about E-Marketing and E-Commerce these companies can be prospective customers if they are educated about E-Marketing and E-Commerce.
48
VII
Sugessions
Sugessions
1) Company should target potential markets as these small scale companies can?t progress / grow in future without being exposed to the EMarketing and E-Commerce. 2) The potential market is quite confused about the E-Marketing and ECommerce concept and hence a regular interaction and some form of seminars should be arranged for them which may clear their ideas about the topic to some extent. 3) The potential customers are quite curious about the price range of the offered services; they can be lured by providing some discounts, early registration benefit or mass registration benefits. 4) Potential market has many customers not having a website, so company can target these customers and can offer them services like website development. Also to attract these company some kind of introductary offer like one year domain name registration free etc. can be provided. 5) As company is in its early stages many customers aren?t aware of the company, so company should work on promotion to increase the awareness and brand value of the company. 6) The Researchers are the mirror images of the company as they represent the company so they should be equipped with the proper training programs having detailed emphasis on the products and its nearest competitors.
49
VIII
Conclusion
Conclusion
This survey i.e. „Research on E-Marketing and E-Commerce opportunities? (Covering Baramati city and industrial zones around it) was carried out in and around premises of Baramati city. Research shows that the market is buzzed with the lot of opportunities available to be to grabbed and also unexplored. Survey shows that there is a little confusion about EMarketing and E-Commerce in the minds of entrepreneurs as they don?t know or knows very little about E-Marketing and E-Commerce so there is a need to carry out the seminars so as to clear their doubts, this can benefit the company in long term future on which company can build its image in the present market. The survey also shows that the industrial zones like Baramati MIDC are full of opportunities as these areas have many medium and small scale companies. These companies can prove to be nice opportunities for EMarketing and E-Commerce. Also there are lots of opportunities for web development, as some of these companies still don?t have their own websites. Hence company can grab these opportunities and create a stronger base for is E-Marketing and E-Commerce projects.
50
IX
Bibliography
Bibliography
1) E-Marketing, fourth edition by Judy Strauss, Adel El-Ansary, Raymond Frost. Prentice hall India. 2) Guide to web marketing successful promotion on the net .by Judy Davis, Crest Publishing House. 3) Marketing management by Rajan Saxena, third edition, Tata Mcgraw Hill. 4) E-Marketing Excellence by Dave Chaffey and P. R. Smith, third edition, Butterworth-Heinemann in an imprint of Elsevier. 5) eMarketing: The essential guide to online marketing by Rob Stokes, second edition, Quirk eMarketing (Pty) Ltd. 6) Business Research Methods by Donald Cooper, Pamel Schindler, Tata Mcgraw Hill Education Private Limited (2006). 7) Research Methodology: Methods And Techniques by C. R Kothari, New Age International (2004). 8) www.edoore.com - Date acsessed – 14th Jun 11 9) www.wikipedia.com - Date acsessed – 20th Jun 11/ 3rd Jul 11 10) www.internetworldstats.com - Date acsessed – 21st Jul 11 11) www.iconocast.com - Date acsessed – 23rd Jun 11 12) www.nkarten.com - Date acsessed – 13th Jun 11
51
13) www.businessindia.in - Date acsessed – 14th -15th -16th Jun 11 14) www.vanik.com - Date acsessed – 12th Jul 11 15) www.businesslink.com - Date acsessed – 15th Aug 11
52
X
Annexure
DEORE CONSULTANCY SERVICES PVT. LTD.
Name of the Company: ___________________________________________
___________________________________________
Address: ___________________________________________
___________________________________________
___________________________________________
___________________________________________
Phone No.: ____________________________________________
Name of the contact person: _______________________________________
Email id: ______________________________________________________
Mobile No.: ____________________________________________________
53
01) What is the core business of your company?
02) What are the products/services offered?
03) What is the type of business?
B2B
B2C
04) What is the turnover of your company?
05) What is the marketing area of your company?
Baramati city
Maharashtra (other states)
National
Worldwide
06) Do you have a website of your company?
Yes
No
54
07) Have you heard about e-commerce?
Yes
No
08) Have you ever done a transaction using Internet?
Yes
No
often
always
09) Do you use E-Commerce for your products/services?
Yes
No
10) Are you interested in using E-Commerce for your products/services?
Yes
No
not sure
11) Any references you would like to suggest of those who may be interested E-Marketing and E-Commerce.
_______________________________________________________________ _______________________________________________________________
55
Companies Visited
Sr. 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 30 31 32 33 34 35 36 37 38
Name of Company
Val India Private Company Raj Industries Godrej Agrovet Ltd. Venture Steels Shakti Group Transmech System Graphitech Casting & Alloys Mahalami Seamles Equipment Lande Patil Transport Ltd. Delta Engineering Vedant Enterprises Dynamix Darade Auto Engineering Works Shree Shreeyash Indurstries J.J Engineering Metlife Insurance Ltd. Soham Insurdtries Bharati Engineering Works Sanva Auto Component Pvt. Ltd. Suraj Indurstries Mota Garments Sai engineering Omkar Packaging Indurstrues Shrinath Powder Coating Suyash Auto Max Insurance Life Spectrum Coats Raj Packaging Suneet Indurdtries Govind Cement Pipes Shreeya Indurstries Reliable Indurstries Sadguru Indurstries Baramati Tiles Pvt. Ltd. Soma Textiles Shardual Packaging Indurstris Baramati Electomech Piaggo Vahicles
56
Contact No.
02112-645937 9823029550 9158005352 919011-025657 09422-011425 09860036308 02112-325627 09545514939 9922960382 02112-243362 09371147437 02112-243821 9975305304 942231939 9326039017 02112-649091 9272798557 9673994009 8805471500 9623447225 9604929122 9960038988 9822217099 9765989005 9011027111 9822199696 9850950498 9823072152 9922076869 9850410666 9423584159 9325311400 9822550655 02112-243908 02112-243716 02112-43720 02112-243908 9881139960
39 40 41 42 43 44 45 46 47 48 49
Kaygee Foam Pvt. Ltd. Success Life Buisness. Kunal Traders Sundaram Finance Ltd. Guradatta Enterprises Tate Electricals V- Connect Placement Service Angel Industries Chankeshwara Auto Indurstries Sahaydri Agro Sameer Indurstries
9922439822 9209192970 8600101243 02112-243041 9373007086 09423042596 9272107081 9822874213 9270000753 02112-244055 9763719849
57
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