3M

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3M (India) Pvt. Ltd.

Feasibility Study of 3M Products in Value Added
Services
in Cars and Bikes

An Internship Report
By:-
Akhilesh Dev
PID - P001072264

In partial fulfillment of the Master’s Program in Business Administration,

Ohio University, Athens, USA

Ohio University Christ college Academy for Management Education

Christ College Campus

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Declaration

I, Akhilesh Dev., hereby declare that the project entitled “Feasibility

Study of 3M products in value added services in cars and bikes” at
3M, Delhi is an original and genuine work carried out under the
guidance of Mr. R. Raghavan, from 12th March to 20th April 2007 in
partial fulfillment of Ohio University Christ College MBA Program.
I declare that the report submitted by me is a bonafide work of my
own.

Place: New Delhi (Akhilesh Dev)

st
Date: - 1 May, 2007

Hosur Road, Bangalore - 560029

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Acknowledgement

Before going into the thick of things, I would like to take an

opportunity and mention few people without whom completion of
the project would be impossible.

I would like to take an opportunity and thank 3M for felicitating me

for this project, especially Mr. R.Raghavan who have been a great
support and guided me through out in the completion of this project.

I would also like to express my thanks to our project guide Prof.

Amalendu Jyotshi, Prof. Girish & Prof. Bhagwath without their
guidance the project wouldn’t have been successful.

Finally I would like to express my deep gratitude to all my friends

and family for being a constant support.

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Executive summary

3M is a $ 21billion dollar diversified technology company; developing

innovative technologies are the foundation for products that make
people's lives easier and better. 3M makes everything from masking tape
to asthma inhalers. The company has six operating segments: display and
graphics (specialty film, traffic control materials); health care (dental and
medical supplies, and health IT); safety, security, and protection
(commercial care, occupational health and safety products); electro and
communications (connecting, splicing, and insulating products); industrial
and transportation (specialty materials, tapes, and adhesives); and
consumer and office. Well-known brands include Scotchgard fabric
protectors, Post-it Notes, Scotch-Brite scouring products, and Scotch
tapes. Sales outside the US account for about two-thirds of 3M's sales.

The project “Market Analysis and Feasibility Study for 3M to Enter in the
Value-Added Services in Automobile Industry Provided during Servicing in
Delhi market”. This project deals with the developing an overview of the
value added services provided during car and bike servicing in Delhi for
which there should be an understanding of the current market scenario,
its demand and the competitors plying in the market. Developing and
understanding how many competitors are there in the market, there
market share and to which all the automobile dealers they serve and at
what price they are providing these services. The study will reflect the
market of different brands available in Delhi and its consumption level in
every dealer’s workshop.

Understanding “fitness-to-use” and “fitness-to-standards” of 3M products

that is due to launch. Understanding the current need and the satisfaction
level of the workshops and the end consumer.

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Table of Content
1. Introduction ----------------------------------------------------------------------------------1
2. Histroy
-----------------------------------------------------------------------------------------2
3. 3M India --------------------------------------------------------------------------------------4
4. Product and Services -----------------------------------------------------------------------5
5. Supply Chain
---------------------------------------------------------------------------------7
6. Competitors---------------------------------------------------------------------------------10
• Bardahl --------------------------------------------------------------------------------11
• Wynn’s ---------------------------------------------------------------------------------12
• Liqui Moly ----------------------------------------------------------------------------13
7. Market Analysis ---------------------------------------------------------------------------15
• Engine Oil Flush & Additive --------------------------------------------------17-18
• Gear Box Flush & Additive ---------------------------------------------------18-20
• Radiator Flush & Additive ----------------------------------------------------21-22
• Petrol Additive -------------------------------------------------------------------22-23
• Diesel Additive -------------------------------------------------------------------23-24
• Petrol De-Carbonizing
--------------------------------------------------------------29
• Diesel De-Carbonizing --------------------------------------------------------------30
• Coolant -----------------------------------------------------------------------------31-
32
8. Price Paid by the Customer----------------------------------------------------------34-36

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9. Bikes------------------------------------------------------------------------------------------37
10. Dealer’s Details------------------------------------------------------------------------38-40
11. Financials-------------------------------------------------------------------------------41-42
12. SWOT---------------------------------------------------------------------------------------43
13. Limitation of the study-------------------------------------------------------------------
43
14. Recommendation-------------------------------------------------------------------------44
15. Bibliography-------------------------------------------------------------------------------45

Introduction
3M is a diversified technology company with a worldwide presence in the
following markets: consumer and office; display and graphics; electro and
communications; health care; industrial and transportation; and safety,
security and protection services. What makes it so diverse is ability to
apply its technologies – often in combination – to an endless array of
customer needs.

3M is also one the 30 companies in the Dow Jones Industrial Average and
also is a component of the Standard & Poor's 500 Index.

3M’s Values

• Provide investors an attractive return through sustained, quality

growth.
• Satisfy customer with superior quality, value and service.

• Respect our social and physical environment.

• Be a company employees are proud to be part of.

3M’s Vision and Strategy

Corporate Values and Sustainability

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3M's sustainability policies and practices are directly linked to our
fundamental corporate values:

• Act with uncompromising honesty and integrity in everything we do.

• Satisfy our customers with innovative technology and superior

quality, value and service.
• Provide our investors an attractive return through sustainable,
global growth.
• Respect our social and physical environment around the world.

• Value and develop our employees' diverse talents, initiative and

leadership.
• Earn the admiration of all those associated with 3M worldwide.

History:

The company was founded by Henry S. Bryan, Dr. J. Danley Budd, Harmon
Cable, William A. McGonagle, and John Dwan, Who incorporated 3M on the
North Shore of Lake Superior at Two Harbors, Minnesota in 1902. Their
original plan was to sell the valuable mineral corundum to manufacturers
in the East, who wanted corundum for the grinding wheels they used to
finish their products. After selling only one load, on 13 June 1902 the five
men walked into the Two Harbors office of company secretary John Dwan –
now part of the 3M Museum. They signed the papers making Minnesota
Mining and Manufacturing a corporation. But Dwan and his associates
were not selling what they thought they were selling: the mineral was
anorthosite, and it was worthless.

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After failing to make sandpaper with the anorthosite, they decided to
import minerals like Spanish garnet, and sandpaper grew strong. Them in
1914, customer started to complain that the garnet was falling off the
paper. They found that as the stones had traveled across the rough
Atlantic Ocean with olive oil, the oil had penetrated the stones. Unable to
take the loss of selling expensive inventory, the company found that the
olive oil would come out if the garnet was washed and the dried.

The company’s early misadventures taught 3M employees that “ingenuity

and perseverance can overcome even potentially ruinous mistakes.

In 1916, company general manager William L. McKnight applied the same

measures scientific method to production that he had used to save the
company from bankruptcy and bought the company’s first lab for $500,
from then on, science would be 3M’s guide.

• The world's first waterproof sandpaper, which reduced airborne

dusts during automobile manufacturing, was developed in the early
1920s.
• A second major milestone occurred in 1925 when Richard G. Drew,
a young lab assistant, invented masking tape – an innovative step
toward diversification and the first of many Scotch® Pressure-
Sensitive Tapes.

• In the early 1940s, 3M was diverted into defense materials for

World War II, which was followed by new ventures, such as
Scotchlite™ Reflective Sheeting for highway markings, magnetic
sound recording tape, filament adhesive tape and the start of 3M's
involvement in the graphic arts field with offset printing plates.

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• In the 1950s, 3M introduced the Thermo-Fax™ copying process,
Scotchgard™ Fabric Protector, videotape, Scotch-Brite™ Cleaning
Pads and several new electro-mechanical products.

• Dry-silver microfilm was introduced in the 1960s, along with

photographic products, carbonless papers, overhead projection
systems, and a rapidly growing health care business of medical and
dental products.

• In 1980, 3M introduced Post-it® Notes, which created a whole new

category in the marketplace and changed people’s communication
and organization behavior forever.

• In 2004, sales topped $20 billion for the first time, with innovative
new products contributing significantly to growth. Recent
innovations include Post-it® Super Sticky Notes, Scotch®
Transparent Duct Tape, optical films for LCD televisions and a new
family of Scotch-Brite® Cleaning Products that give consumers the
right scrubbing power for a host of cleaning jobs.

3M worldwide Board of Directors:

George W. Buckley
Chairman of the Board, President and
Chief Executive Officer

Frederick J. Palensky
Executive Vice President
Research and Development and CTO: Frederick J. Palensky

Inge G. Thulin
Executive Vice President
International Operations: Inge G. Thulin

3M India Ltd.

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The perfect match between India’s multifaceted customer profile and 3M’s
diverse range of products offering proven customers benefits led to 3M
India being born in 1988 as Birla 3M Limited. The name of the company
was subsequently changed to 3M India Limited in Dec 2002.

One of the main plans of 3M’s business philosophy has been to grow
through improving and expanding its own technology base creating
products that fulfill specific customer needs. With a promise of delivering
innovative, quality products and services that makes customers life easier
and better, 3M today has an array of useful products targeting each and
every segment of the market.

In India, 3M India has over 2000 diverse products in Industrial,

Automotive and Specialty Materials, Electrical and Telecom,
Healthcare, Traffic and Safety, Electronics, Construction and
Consumer and Office Markets, building over the past years an
exhaustive list of satisfied customers and a reputation for
unmatched quality.

• Over 2000 products

• Turnover of Rs.3830 million in 2005 with profits of over Rs.384.1

million
• Over 500 employee

Board of Directors / Key Personnel :

• Mr.Yashovardhan Birla Chairman/Chair person

• Mr.Herbert O`Donoghue Managing Director

• Mr.B V Shankaranarayana Rao Director

• Mr.B C Prabhakar Director

• Mr.Thomas P Spencer Director

• Mr.D J Balaji Rao Director

• Dr.Carlisle S Boyce Director

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• Ms.Mary B McCormick(smt.) Director

• Mr. Brad C sweet Alternate Director

• Mr. K Ramesh Chandra Co. Secretary

Products and Service

3M serves customers through six business segments, which increase

speed and efficiency by sharing technological, manufacturing, marketing
and other resources.

These six businesses are:

1. Consumer and Office Business

With powerful brands, innovative products and a global presence,
3M make life easier and more productive for consumers and office
workers around the world. 3M brands – including Scotch®, Post-it®,
Scotch-Brite®, Scotchgard™, O-Cel-O™, Filtrete®, Command™ and
Nexcare™ – are synonymous with quality and value. You’ll find 3M
products at mass merchandisers, office superstores, contract
stationers, home improvement and hardware stores, membership
clubs, grocery and drug stores, and other retailers.

2. Display and Graphic Business

Drawing on 3M’s technology platforms, 3M provide products that
people around the world rely on every day. 3M industry-leading
Vikuiti ™ Display Enhancement Films do amazing things with light,
making LCD TVs brighter, and the images on notebook computers,
cell phones, PDAs and other electronic devices easier to see under a
wide range of lighting conditions. 3M innovative reflective materials
make traffic signs more visible day or night and in harsh weather,
contributing to the safety of both drivers and pedestrians. And 3M

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eye-catching, durable graphics help companies promote their
businesses – and thereby stand out from the competition.

3. Electro and Communication Business

3M turns its technology into solutions for customers in electrical,
electronics and communications markets around the world. 3M
products help customers connect, clean, polish, insulate, protect,
finish and test electrical, electronics

and communications pathways; store energy; and transmit data,

information and ideas. As a result, 3M contribute to reliable sources
of electrical power,
high-performance electronic devices, and speedy and dependable
telecommunications networks globally.

4. Health Care Business

3M is a $3.8 billion provider of medical and surgical products, dental
and orthodontic products, health information systems,
pharmaceuticals, and other health care products. Drawing on 3M’s
rich technology base, 3M help improve the quality of care provided
by health care professionals throughout the world, while also
helping make the delivery of patient care more affordable.

5. Industrial and Transportation Business

3M industrial products are based on outstanding technologies, and
stand for quality, performance and value worldwide. Whether it’s
tapes, abrasives, adhesives, specialty chemicals, filtration systems
or software for supply chain management, our innovative products
and value-added services contribute to the productivity and
profitability of manufacturers in a wide range of industries –
from automotive and construction to metal fabrication, mining, and
oil and gas.

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6. Safety, Security and Protection Service Business

Helping to protect workers against airborne contaminants. Making
passports and driver’s licenses more secure. Helping manufacturers
know when their products have been tampered with. Keeping
commercial establishments clean and well-maintained. Making
pedestrians more visible to drivers at night. Keeping outdoor
enthusiasts comfortable in cold weather. Providing roofing granules
that make asphalt shingles durable and algae-resistant. Making

windows more efficient and reducing the dangers of flying shards of

glass caused by storms, flying objects or bomb blasts. Drawing on
3M’s technology platforms, 3M businesses do all of this and more.

Supply Chain

3M Supply Chain functions are responsible for logistics leadership,

customer service and expertise, lean manufacturing analysis/support, and
network design that is optimized from supplier input materials through
manufacturing/distribution and ultimately to the customer. Its
responsibilities include managing distribution operations, warehousing,
planning, materials management, operations management and
transportation operations on a global basis. Supply Chain positions exist at
factory, division, business unit and corporate levels.

For 3M, supply chain management is a key competitive edge as it uses

processes not only to reduce inventories and costs, but to speed key
business activities, and most importantly, to retain customers and
increase their satisfaction. For instance, the company formed a Six Sigma
team to coordinate a collaborative planning, forecasting and
replenishment (CPFR) initiative with a key trading partner, West Marine, a
retailer of boating supplies.

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To help optimize all aspects of its value chain, 3M, chose the solutions
from i2, the leader in value chain management. Through its solutions, i2
delivers innovative ways to increase efficiency and velocity within the
enterprise and across all of its suppliers, partners, and customers.

Specifically, 3M Canada focused on i2 Supply Chain Management™ (SCM).

i2 SCM integrates collaborative forecasting, planning, and execution
capabilities with complete visibility across the supply chain. i2 provides
software and services that help businesses make a lasting positive impact
on their profitability.

In implementing the i2 Supply Chain Management solution set, 3M Canada

chose two powerful applications, i2 Factory Planner™ and i2 Supply Chain
Planner.™
Using i2 solutions, 3M Canada planners re-plan every day based on data
from previous shifts and new orders. Factory Planner and Supply Chain
Planner create optimized purchase requirements and manufacturing
orders. The company’s materials resource planning (MRP) system could
only plan based on material

availability. But Factory Planner and Supply Chain Planner also consider
machine capacity and the availability of other manufacturing resources.

“Depending on specific requirements, i2 solutions will alter existing

schedules. It also incorporates shop floor information into those
requirements. Factory Planner then passes an optimized production
schedule back to the shop floor. i2 solutions allow to look at all of those
things simultaneously.

Since implementing Factory Planner and Supply Chain Planner, 3M has

achieved several significant results. i2 solutions have improved 3M
planning and scheduling productivity by 20 percent.

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Filling orders is critical for a make-to-stock manufacturer. By ensuring that

the company is producing the right products at the right time, i2 solutions
have increased 3M customer service levels from 92 percent to 98 percent.

“i2 allows to look at more things simultaneously” . “It can look at demand,
machine capacities, and constraints. It allows more business factors to be
used in decision-making. That is enabling 3M to use information to replace
inventory.”

“As a result of implementing i2’s technology, 3M has improved the whole

front end of its process,” that allows to better predicting future
requirements, the impact of changes in the market, and the impact of new
promotions that 3M has. Building all those factors into the demand plan
tells 3M what need to do to meet customer demands.”

And when those customer demands change, the company is able to react
much faster than before.

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Competitors

COMPETITORS:

There are many competitors for 3M in the market who are there in the
market for many years.

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1. Bardahl
2. Wynn’s
3. Liquimoly
4. Wuerth
5. BG

Bardahl, Wynn’s & LiquiMoly are the major competitors for 3M in

automotive sector in Delhi. As the products of these companies are used
in many workshops and are also approved by OEMs (Maruti, Hyundai, GM,
TATA etc...)

1. Bardahl

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Bardahl is one the established & strong player in the market as it
has been in the market for many years and its products are
approved by most of the OEMs. Bardahl provides total care solution
through its wide range of products. Products like – engine tune up &
flush, oil additive, radiator flush & additive etc…
By providing total care solution Bardahl can give a tough
competition to the new players.

In Delhi, Bardahl is mainly used in TATA workshops

and some of the Maruti workshops.

OEM Approved:
a. TATA
TATA has approved and recommended Bardahl to be used in all its
dealer workshops across India.

b. Maruti
Maruti has approved and recommended Bardahl products to be
used in its dealer workshops across India.

c. Hyundai

TATA Workshops using Bardahl:

1. Vivek Automobiles
2. Sanya Automobiles
3. Autolinks
4. Him MotorsA-One Motors
Maruti Workshop using Bardahl:

1. Rana Motors

2. Wynn’s

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Wynn's, a world leader in total car care and one of the pioneers in
the automotive chemicals industry with 60 years of experience, and
Mekuba, with over 20 years of experience in industrial lubricants,
have joined forces. Wynn's Belgium, the Belgian operation of Wynn
Oil Company, signed a joint-venture with MEKUBA PETROLEUM Ltd
in Madras at the beginning of June 1997. The new company,
WYNN'S MEKUBA INDIA started production and commercial
activities in February, 1998.

Wynn’s is one the major player in the

market and has captured a large chunk of
the market share in Delhi. Wynn’s is
approved & recommended by many
OEMs.

Wynn’s products are widely used in

Hyundai workshops in Delhi.

OEM Approved:
a) Hyundai
b) Maruti

Hyundai Workshop using Wynn’s:

a) Hans Hyundai
b) Samara Hyundai
c) Hyundai Motor Plaza
d) Rama Hyundai
e) MGF Hyundai
f) Deep Hyundai

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3. Liquimoly

Liquimoly is also one of the strong players in the market. This

product is marketed by Fucon Technologies Pvt. Ltd. in India.
Liquimoly is widely used in Maruti workshops.

OEM Approved
a) GM
b) Maruti
c) Hyundai

GM Workshop using Liquimoly:

a) Auto Vikas
b) Regent Automobiles

Maruti Workshop using Liquimoly:

a) Bagga Link
b) Alliance
c) Rohan Motor
d) Marketing Times

Hyundai Workshop using Liquimoly:

a) Deep Hyundai

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Market Analysis

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Market Analysis:
Based on the data collected in Delhi form the 25 car dealer’s workshops,
the market analysis is done on flushes, additives and de-carbonizing
chemical.

Flushes
Total Market share of the Flushes:

Flushes

No
Yes

42.67%
57.33%

The above pie charts depicts that total market share of flushes is only
57.36% which includes all kinds flushes available in the market.

Different Kinds Flushes available in the market:

1. Engine Oil Flush

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2. Gear Box Flush
3. Radiator Flush

All the flushes mentioned above form only 57.36% of the market
rest don’t use any flushes in their services.

Additives:

Total market share of additives:

Additive

No
Yes

42.40%
57.60%

The above graph depicts the total market share of all the additives in
Delhi. 42.40% is only market share of the additive available in the market.

Different kinds of additive:

1. Petrol additive
2. Diesel additive
3. Engine oil additive

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4. Radiator additive
5. Gear box additive

All the additive mentioned above form only 42.40% of the market
and the rest don’t use any kind of additives.

1. Engine Oil Flush

Through the survey conducted we came to know that 76% of the

workshop provide the services of engine oil flushing and 24% don’t.

Market share of different brands of engine oil flush:

Engine Oil Flush

Bardahl
BG
Liqui Moly
No
Toyota
Wynn's
20.00% 20.00%

4.00% 4.00%

24.00% 28.00%

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The above pie chart shows the market share of all the companies whose
products are used in engine oil flushing. 24% of the workshops do not use
any kind of engine

oil flushing in their workshop are the workshops of HONDA and FORD they
say “our technology is so superior that our vehicles don’t require any
flushes” . The chart shows that Liqui Moly has the highest market share of
28% followed by Bardahl and Wynn’s who equally share the market at
20% each. BG being a small player in the market share only 4%. Toyota is
the only OEM who supplies the servicing products itself under its brand
Brands of Engine Oil Additive
name to all its dealer workshops.

1.1 Engine Oil Additive Brands: Bardahl

BGof
On the basis of interview conducted we came to know that 56%
12.00%
workshop use engine oil additive and 44% of workshop do not use engine
Liqui Moly
oil additive. 4.00%
20.00% No
Market share of different brands of engine oil additive: Wynn's

20.00%

44.00%

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The above pie chart depicts the market share of different brands of engine
oil additives. 44% of workshop do not use engine oil additive in their
workshops. Liqui Moly and Wynn’s share equally the 20% of the market
share followed by Brands
Bardahl of
whoGear
has Box
12%Flushing
of market share. And BG has a
mere 4% of the total market.
4.00%
Bardahl
Liqui Moly
2. Gear Box Flushing:
No
16.00%
Based on the survey conducted in 12.00%
25 dealer’s workshop it was figured out
Toyota
4.00%36% of the workshops use gear box flushing and 64 do not use.
that ony
%% Wynn's

Market share of different brands of Gear Box Flush:

64.00%

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Gear Box Additive

The above pie chart shows the market share of gear box flush of different
Bardahl
brands. 64% of workshops do not provide the service of gear box flushing.
4.00%has the maximum market share of 16%
The chart indicates that Wynn’s Liqui Moly
followed by Liqui Moly who share the 12% of the market share. Bardahl
and Toyota equally share 4% of market each. No
16.00% 12.00%
Wynn's

2.1 Brands of Gear Box Additive:

On the basis of interview conducted we came to know that only 32% of

workshop use gear box additive and 68% do not use gear box additive in
their workshop.

Market share of different brands of Gear Box Additive:

68.00%

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The above pie chart depicts the market share of different brands of gear
box additive. More than 50% that is 68% workshop do not use gear box
additive in their workshop. Wynn’s has 16% market share followed by
Liqui Moly sharing 12% and at last Bardahl sharing 4% of total market
share.

3. Radiator Flushing:

Based on the survey conducted we came to know that 60% of the

workshop provide the services of radiator flushing and 40% don’t provide
this service.

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Market share of different brands of Radiator Flushes:

Radiator Flushing

The
Bardahl
[[
BG

12.00% Liqui Moly

4.00%
No
20.00%
Toyota
Wynn's
4.00%
20.00%

40.00%

The above pie chart shows the market share of different brands of radiator
flush in the Delhi market. Flat 40% workshop do not use radiator flush in
their services. Wynn’s and Liqui Moly share the equal market share of 20%
followed by Bardahl at
12% market share then comes BG and Toyota who also share the equal
market share at 4%.

3.1 Radiator Additive:

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On the basis of interview conducted we came to know that only 20% of

workshop uses radiator additive and 80% do not use radiator additive in
their workshops.

Market share of different brands of radiator additive:

Radiator Additive

4% 4% Bardahl
Liqui Moly
No
12.00%
Wynn's

80.00%

The above pie chart depicts the market share of the different Radiator
additive in the market. 80% of the workshop do not use radiator additive
in their workshops. Radiator additive has a very small market of 12%
market share is grabbed by

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Liqui Moly followed by Bardahl and Wynn’s share the equal market share
of 4% each.

4. Petrol Additive:

Form the data collected through survey it was figured out that 60%
workshop use petrol additive in their workshop and 40% do not use.

Market share of different brands of Petrol Additive:

Bardahl
Iftex

Liqui Moly
8.00%
No
16.00%
Wynn's
12.00%

24.00%
40.00%

The above pie chart depicts the market share of the different petrol
additive available in the market. 40% of the workshop do not use petrol

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additive. 24% of the market share is taken over by Liqui Moly followed by
Wynn’s which has 16% of the
market share. Iftex has 12% market and Bardahl has a mere 8% of total
market share.

5. Diesel Additive:

Based on the survey conducted we came to know that only 44% of

workshop uses Diesel.

Market share of different brands of Diesel Additive:

Based on the information collected it was known that 44% of the

workshops use diesel additive and 56% don’t use any diesel additive in
their workshop.

Diesel Additive

Bardahl
4%
BG
4%
Iftex
Liqui Moly
16.00% No
Wynn's
12.00%

8.00%

56.00%

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The above pie chart depicts the market share of different diesel additive in
the market. More than 50% of workshop do not use diesel additive. 16% of
market share is captured by Wynn’s followed by Iftex which has 12%
market share. Liqui Moly has 8% market share and Bardahl and BG share
equal market share at 4% each.

Note: - On being questioned HONDA, FORD & TOYOTA their

service advisor told that their Vehicle do not require any Additive,
Flushing and De-Carbonizing as their technology is so superior
that don’t need all such products.

- One of the advisors in TOYOTA (Galaxy Toyota) comment that

De-Carbonizing in ban in TOYOTA vehicles

6. Belt Dressing:

Belt Dressing is a rubber belt which is used in the engine to run the motor
and other parts of the engine.

From the information gathered through the survey we came to that in 80%
of workshop nothing is applied or used on the rubber belt to enhance its
performance. After talking to many of the mechanics and service advisors
we came to know that “if we apply any grease or spray on the belt,
the belt will slip out from its grooves.”

The service advisor told that after a particular kilometer

depending upon the car the belt is replaced with a new one.

But at few places we came to know that the car mechanics used some
grease on the belt if the engine makes noise.

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Different Brands of Sprays or Grease used on Engine Belt:

Belt Dressing

3M Spray
4%
Grease
4%
No
Spray
12%

80%

The above pie chart depicts the use of spray or grease on the belt of the
engine.
80% of the workshops do no use any kind of spray or grease on the belt.
12% of the workshops sometimes use local grease on the belt & only 4%
of workshops use multiple sprays (3M) on the belt.

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7. Window Dressing:

Based on the information gathered 64% of the workshop use different

kinds of sprays or grease on the window dressing to make the rolling up of
the window smooth.

Different brands used for window dressing:

Window Dressing

3M Spray
Grease
8.00% No
8.00% Local Spray
Wurth Spray
8.00%
12.00% Wynn’s Spray

20.00%

44.00%

The above pie chat depicts the products used in window dressing. 44% of
workshops do not use any spray or grease. 20% of the workshop use local

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spray or multiple spray, 12% of people use local grease and only 8%of the
workshop use branded sprays of 3M, Wurth and Wynn’s each.

8. AC Evaporators
Based on the survey we came to know that none of the workshops in Delhi
use any kind spray to clean the AV evaporator. For cleaning the AC
evaporator the entire AC is opened and cleaned with the water pressure
and nitrogen.

9. Vent Deodorizer:
Based on the information gathered from the all the dealer workshops we
came to know that none of the workshops provided the service for vent
deodorizer.

10. Filter for A/C:

Amongst the 25 dealer’s workshop surveyed in Delhi we found that all
dealers’ workshop use OEM supplied A/C filter except for TATA who uses
Elofic A/C filter in their cars.

11. Battery Coat:

Based on the data collected we found that 52% of workshop used Bat Gel
on battery terminals, 24% use local grease available in the market. Only
12% of the total workshop used branded spray by Wurth & 4% used
Wynn’s spray.

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Battery Coat
Bat Gel
4% GM Gel
Honda
12.00% Local Grease
Wurth Spray
Wynn's Spray

52.00%
24.00%

4%

4%

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12. De-Carbonizing:
De-carbonizing is the process where the accumulation of carbon in the
engine is cleaned.

12.1 Petrol De-Carbonizing

Based on the 25 workshop surveyed we came to know that 56% of the
workshop did petrol-de-carbonizing and 44% did not do.

Market share of different brands used in petrol de-carbonizing:

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Petrol De-Carbonizing
3M
4% Bardahl
Carburetor Spray
Liqui Moly
12.00%
20.00% No

4.00%
Wynn's

16.00%

44.00%

The above pie chart shows the market share of the different brands used
in petrol de-carbonizing. 44% do not do any de-carbonizing, 20% of the
market share is captured by the Wynn’s followed by Liqui Moly which has
16% of the market share.

Bardahl has 12% of the total market share. Carburetor spray is the only
product which is supplied by the Maruti to its dealer workshop and has 4%
market share.

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12.2 Diesel De-Carbonizing
Based on the information gathered, only 40% of the dealer workshop in
Delhi does diesel de-carbonizing and 60% do not do.

Market share of the different brand used in diesel de-carbonizing:

Diesel De-Carbonizing

3M
Bardahl
4%
BG
Liqui Moly
16.00% 12.00% No

Wynn's
4%

4.00%

60.00%

The above pie chart depicts the market share of the different brands used
in Diesel De-Carbonizing. Flat 60% of the workshops do not use diesel de-
carbonizing. 16% of the market is captured by the Wynn’s followed by the
Bardahl which has 12%

market share. The rest of the market is equally shared BG, Liqui Moly and
3M at 4% each.

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Note: “Petrol and Diesel De-Carbonizing is Ban in Honda and Toyota”

said by one of the service advisor.

13. Coolant:
Coolant is an essential part of the engine it keeps the engine cool and
under controlled temperature.
Market share of different brands of coolants used in dealer’s
workshops:

COOLANT

Elf
Golden Cruiser
8.00%
OEM
Servo
24.00%

36.00%

32.00%

The above pie chart depicts the market share of different brands of
coolant used in dealer’s workshops. Golden Cruiser has the maximum
market share of 36%, as this is approved and recommended by TATA and
Maruti, it is used in all the dealer’s workshops of TATA and Maruti.
Followed by OEM which has 32% market share, this

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coolant is supplied by the OEM itself under its brand name to its entire
dealer’s workshop. OEMs like – HONDA, TOYOTA and FORD supply their
own coolant. Servo
which has 24% market share is approved and recommended by Hyundai
and is used all Hyundai dealer’s workshops. Elf being a small player in
passenger car segment
share only 8% of market share. Elf is approved and recommended by GM
thus used in all the GM dealer’s workshops.

“To enter the coolant market it is very important for any company to get
recommended and approved by the OEMs before launching its brand in the
market.”

Coolant used in workshops:

Workshop Coolant Used

Maruti Golden Cruiser

TATA Golden Cruiser

Hyundai Servo

GM Elf

Ford Ford Supplied

Mahindra Mahindra Supplied

Honda Honda Supplied

Toyota Toyota Supplied

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14. Windshield Washer Liquid:

Windshield washer liquid is a liquid which is mixed with the water to clean
the windshield of the car.

Market share of the different bands of the windshield liquid:

WIND_LIQ
Elf
4% Local Shampoo
8.00% No
OEM
16.00% Wurth

4.00%

68.00%

The above pie chart depicts the market of the different brands of
windshield washer liquid. Only 4% of workshops do not use any kind of
liquid in the windshield washer,

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they just use normal water to clean the windshield. 68% of the workshop
use windshield washer liquid supplied by their OEMs under its brand name.
OEMs like
FORD, HONDA, TOYOTA and GM supply their own windshield washer liquid
to all their dealer’s workshops. 8% of workshops use Wurth windshield
washer liquid. The entire TATA dealer’s workshop in Delhi uses Wurth
windshield washer. 16% of

workshops mix any local shampoo available in the market in water to

clean the windshield. And only 4% of total workshops in Delhi use Elf
windshield washer liquid.

Average Prices Paid by the Customer:

Costs to the end customer vary form workshop to workshop. Even though
the workshop are of the same OEM and treatment is done by the same
brand still the cost differ form one workshop to the other. So it is difficult
to find the exact cost to the customer, as in the value added services
industry the margin depends on the volume of treatment done.

Below are the mentioned average price paid by the customer of the
different treatments:

Maruti Workshop:
1. Engine Oil Flush : between Rs. 600 – 700 + tax
2. Radiator Flush : between Rs. 450 – 550 + tax
3. Petrol Additive : between Rs. 300 – 400 + tax
4. Radiator Additive : between Rs. 350 – 450 + tax
5. Engine Oil Additive : between Rs. 300 – 400 + tax
6. Petrol De-Carbonizing : between Rs. 1200 – 1400 + tax
7. Coolant : between Rs. 200 – 250 per Lt.

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TATA Workshop:
1. Engine Oil flush : between Rs. 500 – 750 + tax
2. Radiator flush : between Rs. 300 – 400 + tax
3. Diesel Fuel Additive : between Rs. 200 – 250 + tax
4. Gear Box Additive : between Rs. 400 – 450 + tax
5. Radiator Additive : between Rs. 450 – 500 + tax
6. Engine Oil Additive : between Rs. 450 – 500 + tax
7. Diesel De-Carbonizing : between Rs. 1300 – 1600 + tax

8. Petrol De-Carbonizing : between Rs. 1300 – 1600 + tax

9. Coolant : between Rs. 150 – 200 per lt. + tax

Hyundai Workshop:
1. Engine Oil Flush: between Rs. 350 – 500 + tax
2. Gear Box Flush: between Rs. 350 – 450 + tax
3. Radiator Flush: between Rs. 350 – 500 + tax
4. Petrol Fuel Additive: between Rs. 300 – 400 + tax
5. Diesel Fuel Additive: between Rs. 300 – 400 + tax
6. Gear Box Additive: between Rs. 500 – 700 + tax
7. Engine Oil Additive: between Rs. 350 – 450 + tax
8. Petrol De-Carbonizing: between Rs. 1300 – 1500 + tax
9. Diesel De-Carbonizing: between Rs. 1300 – 1500 + tax
10.Coolant: between Rs. 170 – 200 per lt. + tax

Mahindra Workshop:
1. Engine Oil Flush: between Rs. 650 – 700 + tax
2. Radiator Flush: between Rs. 150 – 200 + tax
3. Diesel Fuel Additive: between Rs. 450 – 500 + tax
4. Diesel De-Carbonizing: Rs. 1500 + tax

HONDA Workshop:

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1. Coolant: Rs. 300 per lt. + tax

GM Workshop:
1. Engine Oil Flush: between Rs. 700 – 725 + tax
2. Gear Box Flush: Rs. 500 + tax
3. Radiator Flush: between Rs.350 – 500 + tax
4. Petrol additive: Rs. 475 +tax
5. Diesel Additive: Rs. 475 + tax
6. Gear Box Additive: Rs. 525 + tax
7. Radiator Additive: Rs. 375 + tax

8. Petrol De-carbonizing: Rs. 1400 + tax

9. Diesel De-Carbonizing: Rs. 1400 + tax
10.Coolant: Rs.168 + tax

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Bikes:

Based on the survey conducted among 11 dealer’s workshop in Delhi, the

survey says that none of the workshops in Delhi do de-carbonizing.
According to the service advisor “De-carbonizing is not required in the 4-
stroke engine as the current technology doesn’t allow carbon to get
deposited.”

Workshop surveyed:

1. G K TVS
2. Auto Needs (Hero Honda)
3. PRJ Bajaj
4. Swarup Honda
5. Royal Bajaj
6. Padam TVS
7. ARC Motors (Hero Honda)
8. Malwa Motors (Honda)
9. Aadarsh Yamaha
10.Chandra Yamaha
11.Mehndru Motors (Royal Enfield)

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Only few workshops did de-carbonizing for 2-stroke bikes only. For
de-carbonizing the head and the silencer is opened manually and
then the carbon is scraped with the sand paper and then cleaned
with the petrol. It generally takes 2 to 3 hours to clean the carbon.

Out of all the workshops surveyed only one dealer – “Aadarsh

Yamaha” showed interest in using a product which could reduce
their time in de-carbonizing. This could be an opportunity to
expand in the bike market.

Dealer Details:

These are the dealers who supply the flushes, additive and other products
to the workshops.

1. Wynn’s Distributor

Mr. Rajesh Gulia (Proprietor)

Sol (India) Pvt. Ltd.
Address : H.O. : 709, Pocket –E , Mayur Vihar, Pahse – II, Delhi -
110091
Contact No. – 09811704877
Tel. : 011-22724133, 22720757

• In Delhi they only supply to Hyundai and some of the Maruti

workshops.

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• They get Wynn’s product form Chennai then distribute to
other parts of the country.
• In Delhi they have 35 employees on payroll and another 100
employees on contract.
• There over 17 distributors of Wynn’s product in India

2. Liqui Moly Distributor

Mr. Rahul Parikh (MD)

FUCON TECHNOLOGIES
71/4, Shivaji Marg, (Opp. Ring Honda),
Najafgarh Road Industrial Area, Moti Nagar, New Delhi – 110015
Contact No. : 0910106780
Tel. : 011-45095206/7/8

• They are the sole distributor of Liqui Moly products in India.

• There are four directors in the company.
• Import Liqui Moly products from Germany.
• Supply to almost 80 to 90 dealers.

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• Supply to – Maruti, Hyundai, Skoda, GM, Mahindra.
• Approximately 15000 bottles of flushes and additive they
distribute in a month.
• Dealer’s price varies from workshop to workshop depending
upon the margin and volume of consumption.
• 1400 employees all over India including 450 employees are in
Delhi.
• Sell flushes approximately at Rs. 300/- to the workshops.

3. Bardahl Distributor:

Mr. V.K Giri (Director)

LV Rustore Applications Pvt. Ltd.
Corp. Off: Hanspal Industrial Complex, 17/6 Mathura Road,
Faridabad- 121007
Tel. : 9129 – 4010181, 4010182

• Sole distributor of Bardahl products in Delhi, Faridabad,

Ghaziabad and Noida

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• Total employee strength – 150
• Supplies to TATA workshops around 800 to 900 bottles of
flushes and additives:
- Sanya Motors
- A-One Motors
- Vivek Automobiles
Supplies to Maruti workshops around 500 bottles of flushes
and additive:
- DD Motors
- Posco Motors
Supply to Hyundai Workshop around 200 bottles of flushes
and
additive:
- MGF Hyundai

Financials of 3M (India)

The financial analysis of the company is done on the basis of ratio

comparison of year 2006 with year 2005.

RATIO 2006 2005

Operating Profit Margin 16.68 18.06

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Gross Profit Margin 16.81 17.79
Net Profit Margin 10.02 10.15

Inventory Turnover 6.36 5.15

Ratio
Debtor Turnover Ratio 8.06 7.56

Fixed Asset Turnover 15.86 13.02

Ratio
Current Ratio 2.96 2.81

Debt Equity Ratio 0.00 0.00

Interest Covering Ratio 21.48 16.99
Return On Networth 23.00 22.00
Return On Investment 38.00 39.00

Operating Profit Margin: Operating profit margin indicates how

effective a company is at controlling the costs and expenses associated
with their normal business operations. Operating profit margin had
decreased in year 2006 to year 2005 this is because the proportionate
increase in the sales revenue is higher as compare to expenses.

Net Profit Margin: A ratio of profitability calculated as

net income divided by revenues, or net profits divided by sales. It
measures how much out of every dollar of sales a company actually keeps
in earnings. Net profit margin has decreased in the recent year when
compare to the previous which can be observed from the above table. This
actually says while the company increased its net income, it has done so
with diminishing profit margins.

Inventory Turnover Ratio: This ratio should be compared against

industry averages. A low turnover implies poor sales and, therefore,
excess inventory. A high ratio implies either strong sales or ineffective

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buying. The ratio has increased as compare to the last year’s ratio. This
shows there is an increase in the inventory deployment, this leads to
increase in the liquidity which further increases the current ratio. This
means there is more cash flow. Cash flow is life blood of any business.

Debtor Turnover Ratio: This ratio tells how quickly the company is
paying of its debt. If the turnover ratio is falling from one period to
another, this is a sign that the company is taking longer to pay off its
suppliers than it was before. The opposite is true when the turnover ratio
is increasing, which means that the company is paying of suppliers at a
faster rate. The debtor turnover ratio has increased this year form the last
year this implies the company is paying of its debts faster than the last
year.

Current Ratio: A liquidity ratio that measures a company's ability to pay

short-term obligations. The higher the current ratio, the more capable the
company is of paying its obligations. The current ratio is higher than the
last year’s current ratio which implies the company is now able to pay its
obligation faster than the last year.

Interest Covering Ratio: A ratio used to determine how easily a company can
pay interest on outstanding debt. The ratio is calculated by dividing a company's
earnings before interest and taxes (EBIT) of one period by the company's interest
expenses of the same period. The current interest covering ratio is higher than the last
year’s ratio which implies that the company is paying of its interest on debt much
faster than last year.

Return on Investment: A performance measure used to evaluate the efficiency of

an investment or to compare the efficiency of a number of different investments. The
return on investment is lower than the last year’s percentage but the difference is no
so much, so the change is minimal.

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SWOT Analysis of the Product

Strength:
1. the biggest strength of 3M is its brand name
2. quality products and services
3. innovative products

Weakness:
1. less promotional activity

Threats:
1. competitors like – Bardhal, Wynn’s, Liqui Moly, Wurth, and BG
2. Technology can be a threat for e.g. OEMs like HONDA, TOYOTA, and
FORD do not recommend such products.

Opportunity:
1. opportunity to enter bike market
2. Currently there are only two major players in the market; there is a
room for competition.

Findings:
1. Market share of each brand available in the market
2. OEM approved brands
3. Cost to customer
4. Dealer’s Price to workshops

Limitation of the study:

1. Study is conducted in Delhi only
2. Due confidentiality of the data many of the interviewer did not
provide with the enough data

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3. The findings are purely based on the market share of the each
brand in the market.

Recommendation:

• Since there are only two major players in the market there is
enough room for competition, so 3M can launch its product in the
market and give a tough competition.
• Before launching its products it is very important for 3M to get its
products approved and recommended by the OEMs that would be
fitness to standard.
• 3M will have to set the prices competitively to get the market share.
• 3M will have to find an active dealer who would supply its product
efficiently and effectively.
• There is a huge opportunity in the bike sector as till date most of
the workshops do de-carbonizing manually without the use of any
chemicals.

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Bibliography:

• www.3M.com

• www.Bardhal.com

• http://economictimes.indiatimes.com

• www.liquimoly.com

• www.wynn’s.com

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