Company Report

COMPANY PROJECT REPORT

OF INTRENSHIP PROGRAM 2009 IP COMPANY- EUREKA FOBES LIMITED

SUBMITTED TO: MR. GAJENDRA BHARDWAJ Guide)

SUBMITTED BY: ADITYA KHANDELWAL

(Company

FORWARDING LETTER

To

:

Gajendra Bhardwaj

From

:

Aditya Khandelwal

Date

:

30/06/2009

Title Subject

:

Managing the channel sales of Eureka Forbes limited. :

The report on the Eureka Forbes

The report contains the following points on the Eureka Forbes.

         

Introduction of company Product of the company Analysis of the player of the industry Market share Market trends Differentiate from other in the industry Generic competitive strategies 4Ps Analysis Positioning analysis Valuation exercise

TABLE OF CONTANTS 1. Introduction of the company 2. Product of the company 3. Analysis of the players of the industry 4. Market share 5. Market Trends 6. Differentiate from other in the industry 7. Marketing strategy 8. Generic competitive strategies 9. 4Ps analysis 10. Positioning analysis 11. Valuation exercise 12. References

ACKNOWLEDGEMENT

The completion of any report depends upon the co-oration, co-ordination and combined efforts of several resources of knowledge inspiration and energy. Before we get into thick of the things. We would like to add a few heartfelt words for the people who were part of this project in numerous ways… people who gave unending support to us in completing this project. Firstly we thankful to Mr.Gajendra Bhardwaj, for giving us opportunity to give us this live project by which we can understand the effectiveness of advertising and personal selling on industrial good of your choice in your city .

INTRODUCTION OF THE COMPANY Multi-product, Multi-channel Corporation - part of the Shapoorji Pallonji Group. About 7,000 employees are working in the company. Eureka Forbes Ltd. is the Leader in domestic and industrial Water Purification

Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. Eureka Forbes Ltd. is the Pioneers in Direct selling - Asia's Largest Direct Sales Organization. About 6,000 strong Direct Sales Force touches 1.50 million Indian homes, adding 1,500 customers daily. Customer family now numbers over 6 million - enduring relationships as friends for life. The Operations of this company is going on 125 cities & 475 towns across India. Eureka Forbes Ltd. also expanded channels that reach out to customers to include. This company has Over 5,000 strong Dealer Sales Network in India .and also have 58 distributors for strong Institutional Sales Network. This company has Security Systems Division that is one of India's largest system integrators. Eureka Forbes Ltd have a strong service network that backs up sales efforts. About 4500 company trained technicians who make 20,000 kitchen visits daily. That is supported by Call Centers, Customer Care Representatives & Mobile Service Vans. Eureka Forbes - A Business Super brand .this company’s Aqua guard & Euro clean - Chosen Super brands. This company Ranked among India's Most Admired Consumer Durable Companies. This company awarded for The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise' MAKE- Asia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards. Eureka Forbes Ltd. Vision is to make a happy, healthy, and safe & pollution free environment on truest and lasting relationship with customers. Eureka Forbes Ltd. Mission is To Build sustainable relationship with customers as their ‘Friend for life’ by satisfying their evolving health, hygiene and life style need through…

PRODUCT OF THE COMPANY Eureka fobes Ltd. Majorly deals with water purifiers, vacuum cleaner, air purifiers and security solution. WATER PURIFIERS:-

Eureka Forbes is a specialist in 5 water technologies, addressing 17 diverse water conditions. Over 71 million liters of Aqua guard water is consumed daily. Eureka Forbes is the world's largest manufacturer of Ultraviolet based Water Purification System. With over 20 products and over 3 million units sold. Following are the product name. crystal UV, ivory UV, aquaflo dx UV ,aquaflo UV, spring fresh Ro ,elegant RO, aqua care RO, RO+UV,and aqua sure 18lt.&25lt.

VACUUM CLEANERS:Dusting, sweeping & swabbing does not get rid of fine dust. Even the cleanest-looking spaces harbour dust & dirt. Dust floats in the air & settles on pillows, mattresses, furniture, dhurries & even soft toys. Fine dust is actually living dust - microscopic, health threatening dust mites live in it. Over 19,000 dust mites in a single gram of fine dust. Dust mites cause allergies like fatigue, runny noses, itches and even severe asthma. Ordinary cleaning does not get rid of dust mites - only powerful, thorough cleaning with a vacuum cleaner can. Eureka Forbes are pioneers and leaders in vacuum cleaning with over 2.5 mn satisfied customers. Eureka Forbes has the widest range of vacuum cleaners and accessories that remove dust & dirt from deep below surfaces, hard-to-reach places and areas where it does not seem to be present. They are infinitely superior to conventional cleaning methods and are easy-to-use.

Following are the product name. Easy clean, Trendy xenon, Trendy, Trendy chary. AIR PURIFIERS:Indoor air is more polluted than the air outside. Polluted air causes maladies like allergies headaches, nausea, physical aches etc. Asthma and allergy sufferers are worst affected. Pollutants include cigarette smoke, dust, pollen, fibers, soot, dander, airbor. Fungal & bacterial particles and indoor allergy stimuli odours. Particles smaller than 10 microns are the greatest health risk as our body's natural biological deface mechanism is not effective in dealing with them. SECURITY SOLUTION:-

Euro vigil from Eureka Forbes provides complete safety for your loved one & business. Solution customized for home, institutions & corporate, each solution from Euro vigil is tailor-made for unique requirement. An array of product – intrusion detection, access control, surveillance & fire detection, the euro vigil solutions are state-of- the art security solutions providing you total safety.

ANALYSIS OF THE PLAYER OF THE INDUSTRY

1. EUREKA FORBES LTD.:Multi-product, Multi-channel Corporation - part of the Shapoorji Pallonji Group. About 7,000 employees are working in the company. Eureka Forbes Ltd. is the Leader in domestic and industrial Water Purification Systems, Vacuum Cleaners, and Air Purifiers & Security Solutions. Eureka Forbes Ltd. is the Pioneers in Direct selling - Asia's Largest Direct Sales Organization. About 6,000 strong Direct Sales Force touches 1.50 million Indian homes, adding 1,500 customers daily. Customer family now numbers over 6 million - enduring relationships as friends for life. The Operations of this company is going on 125 cities & 475 towns across India. Eureka Forbes Ltd. also expanded channels that reach out to customers to include. This company has Over 5,000 strong Dealer Sales Network in India .and also have 58 distributors for strong Institutional Sales Network. This company have Security Systems Division that is one of India's largest system integrators. Eureka Forbes Ltd have a strong service network that backs up sales efforts. About 4500 company trained technicians who make 20,000 kitchen visits daily. That is supported by Call Centers, Customer Care Representatives & Mobile Service Vans. Eureka Forbes - A Business Super brand .this company’s Aqua guard & Euro clean - Chosen Super brands. This company Ranked among India's Most Admired Consumer Durable Companies. This company awarded for The Best Employers (4 times in a row) .This Company is the Winner of 'Most Admired Knowledge Enterprise' MAKE- Asia Awards, Winner of awards on Customer Responsiveness, Winner of Water Digest awards. Eureka Forbes Ltd. Vision is to make a happy, healthy, and safe & pollution free environment on truest and lasting relationship with customers. Eureka Forbes Ltd. Mission is To Build sustainable relationship with customers as their ‘Friend for life’ by

satisfying their evolving health, hygiene and life style need through…

2. KENT: KENT is a 21st century health care products company with a vision for making the world a healthy and a happy family. This company’s mission is to produce innovative health care products that purify the water we drink, the food we eat and the air we breathe, thus help people live healthier. For customers, bringing health care products for you, is more than just a business, it is a passion. It is, In fact, it is the most prominent purpose of our existence. Pioneer in bringing revolutionary RO technology to India for the first time, Kent, started in 1995 in Noida, Despite a humble beginning, today Kent is a strong organization with offices spread across Delhi, NCR, Mumbai and other major cities. Most importantly, Kent is having millions of satisfied customers to its credit. This company’s product philosophy is unambiguous. We help people in attaining the biggest and most precious wealth called "Perfect Health", which is reflected in our range of health care products too. Kent’ vision is To Making the world a healthy & happy family and to become the number one market player with maximum market coverage by providing the world’s first Mineral RO technology and sustainable values. Due to very aggressive and extensive adve7rtising & marketing strategies of the company KENT Mineral RO has gained immense popularity amongst the general public. The product has been so successful and popular that it was awarded three International Awards in 2007. Best Domestic Water Purifier 2006-2007 AND 2007-2008 (By UNICCO And Water Digest International) , Golden Peacock Award For Best Eco Innovation 2006-2007.

3. HINDUSTAN UNILEVER LTD.:Pure it, a breakthrough offering of Hindustan Unilever, comes with many unique benefits –

complete protection from all water-borne diseases, great convenience, and unmatched affordability. Pure it’s unique Germ kill Battery technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities, giving you water that's 'as safe as boiled water. It assures your family of 100% protection from all water-borne diseases like jaundice, diarrhea, typhoid and cholera. What’s more, it doesn’t need gas, electricity or continuous tap water supply. You will be further reassured to know that Pure it meets the stringent germ-kill criteria of the Environmental Protection Agency (EPA), the toughest regulatory agency in the USA. Protect your loved ones with a Pure it Water Purifier today!

4. PHILIPS:ROYAL PHILIPS ELECTRONICS, a global leader in the three interlocking domains of healthcare, lifestyle and technology recently announced its foray into the water purification market. Philips Electronics India ltd, a subsidiary of the Netherlands based Royal Philips electronics endorsed the announcement by launching the “Philips Intelligent Water Purifier”, a state of art advanced UV Water Purifier. Said to bring about a revolution in the water purification market, the company not only promises to provide pure and safe water but the new range also features delivery convenience to the consumers. Adopting the policy of aggressive marketing, various ‘Experience Centers’ will be set up in high traffic areas wherein the consumer can see, touch, feel and experience the water purifier. The demonstrator will also inform the consumer about the nearest retail purchase point of the product. Philips has also set up a robust CRM system for providing sales support whereby a consumer helpline called ‘Philips Pure Water Care helpline’ which is already operation.

MARKET SHARE It is estimated that roughly two thirds of the existing water purification market belongs to UV water purifiers and one third is shared between reverse osmosis purification systems and chemical purifiers. In the UV purifier segment, Eureka Forbes’ Aqua guard is the clear market leader with approximately 68% market share. Other brands include Philips’ Intelligent Water Purifier with 7% and HUL’pureit. With 25% market share. The UV purifier market is estimated to be growing at a lower rate than the chemical based segment. Reverse osmosis purifiers, which are rather expensive and not the preferred option in many areas, have a smaller share of the market when compared with UV purifiers and chemical based systems. In the reverse osmosis segment, Eureka Forbes is again the major player with 60% share. A major portion of the remaining 40% belongs to Kent reverse osmosis Systems

MARKET TRENDS The water purifier market is seeing a three-way fight between the two global giants, Hindustan Unilever and Philips, and the local market leader, Eureka Forbes which has unleashed a new national campaign for its economy water purifier brand. Both HUL and Eureka are gearing up to woo the large section of the lower-income group which could not afford ultra-violet water purifiers with a starting price of about Rs 5,000 and do not have steady supply of electricity and tap water HUL, which began selling its Pure it brand of water purifier nationally earlier this year, is now being challenged by Eureka Forbes with its Aqua sure brand launched nationally this month. Aqua sure uses a resin based technology in which the water is treated by a chemical like bromine and then the chemical is removed from the water after it purifies it. This product also does not need electricity. Eureka is straddling the retail and also direct selling model to increase its market share and keep HUL at bay. While HUL is selling its water purifier at Rs 1,800, Eureka has priced one of its models at Rs 1,600. Industry experts say that in India three types of water purifiers are being marketed now — ultra-violet based, reverse osmosis and resin based. The country’s largest water purifier maker Eureka Forbes’ Aqua guard is the market leader with 68 per cent in UV-based market. In reverse osmosis (RO) as well the company enjoys 60 per cent share and Delhi-based Kent RO systems has 40 per cent share. RO based water purifiers are the most expensive section of the water purifier market and are priced at Rs 13,000 and above.

Philips, on the other hand, which uses UV-based technology to purify water, has dropped its price to Rs 6,995 from the initial launch price of Rs 8,500. Industry sources say its struggle to establish itself in the market with lesser priced water purifiers by competitors has been difficult.. Out of the 220 million households in India, only about 8 million use water purifiers. Eureka Forbes has a reach of 6 million households. HUL, in its first three years of operations, has already sold 1 million units.

DIFFERENTIATE FROM OTHERS IN THE INDUSTRY Eureka Forbes Ltd. is one of the largest companies in water purifier industry. The company is working is two way first is direct marketing and second is channel marketing. Eureka Forbes Ltd. is first company in India who is dominant in direct marketing .in the sense on direct marketing is to sell the product direct to the end customer. In this marketing there are no intermediatries. This type of marketing contributes 75% sales turnover. On the other hand Eureka Forbes Ltd. is also dominant channel marketing. This is followed by company to distributors, distributors to dealer, dealers to end customer. This type of marketing contributes 25% sales turnover. In this company’s water purifier have unique 5 stage purification process in this purification process there are 5 filer. •

Stage 1 there is a particulate filter which is removes dirt & floating particles.

•

Stage 2 there is sediment filter which is removes suspended impurities.

•

Stage 3 there is a Biostat carbon block which is removes bad odour and taste and also removes chlorine and organic chemicals.

•

Stage 4 there is active disinfectant to seeks & destroys Disease-causing bacteria and virus

•

Stage 5 there is special activated carbon for retains the natural taste of water. KENT is dominant in industry by channel sales. But this company use advertising. The brand

ambassador of Kent is bollywood actress Hema malini.I Kent Purification by RO followed by UV with TDS Controller to maintain natural minerals in water .Computer Controlled Operation with Filter Change Alarm & UV Fail Alarm .After a preset time, Filter Change Alarm is audible which indicates the time to replace the filters. If the filters are not changed within next 60 hours of use, the purifier will stop functioning .Incase the UV stops functioning, UV Fail Alarm is audible. The purifier will not function until the UV lamp is replaced

.Stylish eye catching modern design.”Purified water level indicator" on storage tank .Enhanced purification through an additional Micronics Filter .Spin Welded RO Membrane Housing to prevent tampering .Secondary purification by UV after RO ensures enhanced water quality throughout service cycles .Monitoring filter replacement in time helps maintaining the optimum filter & water quality.8 liters of purified water storage capacity that makes water available on demand, even in the absence of electricity / water supply. Fully automatic operation with auto-start and auto-off & Built-in SMPS to operate within 160-300 AC voltage Philips have good name in electronics world. So the water purifier of Philips sells with their brand name. Philips water purifier have advanced state-of-the-art UV (PLS) technology destroys known waterborne viruses, bacteria, parasites and amoebae while the activated carbon and sediment filter removes turbidity, chlorine, volatile organic chemicals (VOC’s), cysts, larger micro-organisms and improves taste. The maximum flow rate of 1.2 liter per minute

ensures that you have safe drinking water available at any time HUL is the very big FMCG Company. In water purifier industry this company have one product that is pure it. In pure it has a Germ kill battery. This technology kills all harmful viruses and bacteria and removes parasites and pesticide impurities. Pure it is available in two attractive colors that are Royal Blue and burgundy

Feature

Consumer Benefit

AquaSure

Philips

From the house of Eureka Forbes, leaders in water Purification for 25 years Endorsed by Indian Medical Association

Turst of 25 lakh customers

√

Guarantee of 178000 doctors Gives the freedom to place where ever you want Convenience to fill water by keeping glass clean the filter Gives you water which is safer than boiled water gives very quick after sales service across india

Table top facility Stainless Steel bottle holding tray Back Flush Facility Power Boil back up of 1004 exclusive service centers across 186 cities cartridge life indicator wall hanging facility twist filter change macro filter sediment filtre

Dust and soil remove Suspended particles remove

Marketing strategy:(a)Direct marketing-

Kent

Purit

X

x

x

√

X

X

x

√

X

X

x

√ √

X √

√

√

√

√

√

√

√ √ √ √ √ √

x x √ √ √ x

x x x √ √ x

√ x √ √ √ x

X

x

 Eureka Forbes followed the globally 'tried and tested' direct selling route for marketing its products in India, thus becoming one of the first direct selling companies in India.  Eureka Forbes not only had the financial strength, but also a strong network of sales executives to push its new products into them market. (b)Networking channel sales Eureka Forbes is setting up alternative and bew retail channels to increase the penetration of water purification devices.  Networking division is now extending products to chemists, CSDs (canteen stores department) and general merchandise stores to reach out to households which do not use water purification devices.

PORTER’S GENERIC COMPETITIVE STRATEGIES To analyze a firm’s success in an industry in which it is operating its position in the industry and its attractiveness should be evaluated. a firm can perform profitably, even though the industry is not lucrative, if it can employ its resources optimally. If the company determinant of a firm’s profitability is the attractiveness of the industry on which it operates, an important secondary determinant is its position with in that industry. Even though an industry may have below-average profitability, a firm that is optimally positioned can generate superior returns. Michael E.Porter suggested that all strategies are the derived strategies from generic strategies. They are given below 1. Cost leadership strategy: - a firm gains cost leadership in an industry when it’s cost of production is lower than that of its competitors. It can gain cost leadership by managing its processes and resources efficiently this strategies involves attempting to minimize cost in every aspect of the business. 2. Differentiation strategy: - firm that adopt the differentiation strategy successfully have access to advance scientific research ,a highly skilled labor force, effective communication strategies, etc. a firm may differentiate its products and service in various way . it may differentiate itself from others in terms of design or brand name. 3. Focus strategy: - a firm is pursuing a focus strategy trend to serve a specific segment instead of catering to the entire market. This segment may be a special group of customers, a specific geographic area or particular product or service line. A firm following a focus strategy and also differentiated strategy will have advantage of pricing their product higher. In water purifier industry the product of this industry is divided in to two segments first is reverse osmosis segment and second is ultra violet segment.

In reverse osmosis segment the Eureka Forbes ltd follow cost leadership strategy and differentiation strategy because this company have three type of RO.those are used for low TDS(Total dissolved solid) water and high TDS water. The all three product of this company are different for their storage capacity, purification stages and modal. And this company is working about 25 years so the company has lots of goodwill and brand name. On the other hand Kent also comes in water purification industry with their product. Kent is follow focus strategy and differentiation strategy because Kent is working only one product that is Kent RO. Kent brand ambassador is bollywood actress HEMA MALINI. Philips also come in this industry with there brand name so Philips follow differentiation strategy. In ultra-violet segment the Eureka Forbes ltd.follow cost leadership. Differentiation and focus strategies because this company have five types of UV those are different for there feature like storage capacity, online, electric & non electric, water outflow, etc. the company have good band name. In this segment the company targets all levels of customer. On the other hand HUL follow the differentiation and focus strategies because the company have good brand name. And HUL have only one product that is PURE IT. HUL, which began selling its PURE IT brand of water purifier nationally earlier this year, is now being challenged

by

Eureka

Forbes

with

its

AQUASURE

brand

launched

nationally

this

month.

.

4Ps Analysis The major marketing management decision can be classified on one of following four categories 1. Product 2. Price 3. Place 4. Promotion These variables are known as the marketing mix or 4 P’s of marketing. They are the variables that marketing managers can control in order to best satisfy customers in the target market.

Product: - The product is the physical product or service offered to the costumer. In the case of physical product, it also refers to any services or conveniences that are part of the offering. Product decision includes aspects such as functions, appearance, packaging, service, warranty, etc.

Price: - Pricing decision should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing.

Place: - Place decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions.

Promotion: - Promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decision. It is useful to know the value off a customer in order to determine whether addition customers are worth the cost of acquiring them.

4Ps Analysis of Eureka Forbes limited In Eureka Forbes ltd. we done 4Ps analysis in two segment first is UV segment and second is RO segment.

4Ps analysis for UV segment:1. CRYSTAL UV:Product

Product feature 1.The sleek new Crystal is a multistage compact water purifier with power boil 2.Has an Electronic Monitoring system to ensure pure water or no water 3.The 3 components, sediment filter, activated carbon block and UV chamber ensure pure, safe drinking water 4.Inbuilt voltage stabilizer with special indicator 5.Auto Power shut off to save unnecessary power consumption 6.Electronics flush it drain stagnant water 7.convenient water filling tray 8.water outflow 2 liter/min

Price

Rs.7650

place

it is install in low TDS area

promotion

giving best service, promoted by company promoters

2. IVORY:Product

Product feature

1.The Aqua sure Ivory is an elegantly designed multistage UV water purifier with power boiling 2.Has an Electronic Monitoring system to ensure pure water or no water 3.online water filter-cum- purification system 4.can be placed on a counter or mounted on a wall 5.Dual filter to remove odour and impurities 6.World proven UV technology that deactivates all bacteria and virus 7.Bottle holding tray 8.Water outflow 2 liter/min

Price

Rs.6990

place

it is install in low TDS area

promotion

giving best service, promoted by company promoters

3. AQUALFO DX:Product

Product feature 1.The Aqua sure Aquaflo DX is a multistage UV water purifier with power boil 2.online water filer-cum-purification system 3.removes odour, organic impurities and traces of chlorine 4.Deactivates all bacteria and virus into UV chamber 5.Bottle holding tray 6.Water outflow 1 liter/min

Price

Rs.5990

place

it is install in low TDS area

promotion

giving best service, promoted by company promoters

4Ps analysis for RO Segment:SPRING FRESH RO SYSTEM:-

Product

Product feature 1.The Aqua sure spring is a 6-stage RO water purifier with power Boil 2.Removes excess TDS from hard water and makes it taste fresh 3.Has auto shut-off of pump, with unique weight sensor mechanism 4.Separate sealed cap for storage tank protects water from dust and impurities 5.Storage capacity of 8 liters of purified water 6.conveninent water filling tray

Price

Rs.13990

place

It is installing in High TDS area like above 300.

promotion

giving best service, promoted by company promoters

ELEGANT RO SYSTEM:Product

Product feature 1.The Aqua sure Elegant is an advance RO water purifier with power Boil 2.5 stage purification system 3.Auto shut-off micro switch controller 4.5 liter. Purified water capacity 5.Protection against dry running of pump 6.Auto shut-off to avoid wastage of water

Price

Rs.9990

place

It is installing in High TDS area like above 300.

promotion

giving best service, promoted by company promoters

AQUACARE RO SYSTEM:-

Product

Product feature 1.The Aqua sure Aqua care RO is an elegantly designed, optimized RO water purifier with power Boil 2.Optimum RO purification system 3.It has a reverse osmosis membrane to revive the original taste of water 4.A special cartridge to enhance the life of the membrane 5.Online Reverse Osmosis purification system 6.water outflow 8 liter/min

Price

Rs.8995

place

It is installing in High TDS area like above 300.

promotion

giving best service, promoted by company promoters

4Ps model of Eureka Forbes ltd.

PRODUCT a) Suitable for all type of raw water b) Easy availability nation wide c) Many stages of water purification process d) Automatic membrane cleaning system e) Multi products launched - water purifier 18 lit., UV and RO f) No running water g) No boiling required

PRICE a) Product price range started for 1800 - 16000 b) Low cost of maintenance and consumable c) Low cost for product d) Best price for other than competitor EX..(eureka) aqua flow dx Philips a) price- 5990 6230

PROMOTION a) Activated subscription immediately b) Right time installation of products c) Working properly d) Properly repair services against paid AMC's e) Services during contract period f) Saves time

PLACE a) b) c) d) e) f)

Increase impurities than use for water purifier Increase disease Direct sales given knowledge for customers Easy available product At jaipur 2 distributors and many dealers Any activity, Ex…Knops’

POSITIONING ANALYSIS

Tables for sales $ profit Year 2008 2007 2006 2005

sales in million 845.5 839.98 733.4 634.33

profit in corer 249.1 229.3 219.8

Sales graph-

900

845.5

800

840.98 733.4

700

634.33

600 500 400

salesmillion

300 200 100 0 2008

2007

2006

2005

Reason for rise sales –     

We at Eureka Forbes always believe in going total satisfaction to the customers. Product design product performance and after sales services is better. Catalogue to large fraternity of customers. Last year sales are not increasing because other competitor coming in the market. Eureka Forbes products price is low but other competitor price high.

 The campaigns tried to build the image of a Euro champ as a Friend rather than one that is after the money

Profit graphprofit crore 255 250 245 240 235 230 225 220 215 210 205 200

profit crore

2008

2007

2006

Reason for increase profit  Eureka Forbes (EFL) has come a long way. From being famous for pioneering the direct selling in India to being rated as the best employer and top it all a case study at Harvard.  Eureka Forbes is a joint venture between Forbes (India) and Electrolux from Sweden.  Eureka Forbes has also tried to position their sales persons as problem solvers rather than sales officers.  Because of the low interest and since the product benefits needs to be demonstrated to the customers, conventional distribution was not viable  This brand connects very well with the concern of mothers about the purity of the water at home.  Eureka Forbes is a brand that personifies the hard work of all Euro champs.

VALUATION EXERCISE Eureka Forbes Ltd is a part of Shapoorji Pallonji Group. This group listed on Nation stock Exchange of India ltd.with name of Forbes & Company Ltd.the Net Assets value and Earning per share of that company in the year of 2008-09 is given below. Net Current assets

Rs.cr

Current Assets, Loans & advances

215.75

Less: Current Liabilities &provision

150.1

Total Net Current Assets

65.65

EPS

1.88

For only Eureka Forbes ltd.During the year under review, your Company made a turnover of Rs.813 crores, a growth of 10% over the previous year. The profit before tax and extraordinary items also increased from Rs.38.95 corers to Rs.41.81 corers, a growth of 7% as compared to 14.7% in the previous year. In terms of acquisition for this company. Other company will pay Net Assets value amount than that company will merge there company.

References:1. www.eurekaforbes.com 2. www.pureitwater.com 3. www.kent.co.in 4. www.icicidirect.com