Final Blk Bk (1).pdf

A PROJECT REPORT ON COMPARATIVE ANALYSIS OF MARKETING STRATEGIES USED BY ADITYA BIRLA FINANCE LIMITED

SUBMITTED TO SIES COLLEGE OF COMMERCE AND ECONOMICS (AFFILIATED TO MUMBAI UNIVERSITY) AS A PARTIAL REQUIREMENT FOR COMPLETING THE DEGREE OF THE BACHELOR OF MANAGEMENT STUDIES (SEMESTER VI) 2018-19

SUBMITTED BY: NADAR NEHA ANTHONYRAJ ROLL NO.: 100

UNDER THE GUIDANCE OF Ms. Divya Thakur SIES COLLEGE OF COMMERCE AND ECONOMICS, SION (EAST), MUMBAI – 400022.

SIES COLLEGE OF COMMERCE AND ECONOMICS, SION (EAST), MUMBAI – 400022 (AFFILIATED TO MUMBAI UNIVERSITY)

A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF MARKETING STRATEGIES USED BY ADITYA BIRLA FINANCE LIMITED

SUBMITTED BY: NADAR NEHA ANTHONYRAJ TYBMS SEMESTER VI ROLL NO.: 100

UNDER THE GUIDANCE OF : MS. DIVYA THAKUR

ACADEMIC YEAR 2018-2019

CERTIFICATE

I, Ms. Divya Thakur hereby certify that, Ms. Nadar Neha Anthonyraj studying in the Third Year of Bachelor of Management Studies course at the S.I.E.S College of Commerce & Economics, Sion(East), has completed a project on “Comparative Analysis of Marketing strategies used by Aditya Birla Finance Limited” under my guidance in the academic year 2018-19. The information presented in this project is true and original to the best of my knowledge. Date: Place: Mumbai

Ms. Jinal Shah

Ms. Divya Thakur

(Co ordinator)

(Project Guide)

Examiners Signature & Date

Dr. Nina Roy Choudhury (Principal)

DECLARATION

I, Ms Nadar Neha Anthonyraj studying in the Third Year of Bachelor of Management Studies course in the academic year 2018-19 at S.I.E.S College of Commerce & Economics, Sion (East), hereby declare that I have completed the project titled Comparative Analysis of Marketing strategies used by Aditya Birla Finance Limited as a part of the course requirements of Bachelor of Management Studies of University of Mumbai. I further declare that the information presented in this project is true and original to the best of my knowledge.

Date:

Ms. Nadar Neha Anthonyraj Roll No.100

Place: Mumbai

ACKNOWLEDGEMENT In making this project report a lot of people have contributed by giving me the required knowledge and time, I would like to thank all of them. My special thanks to all my friends who had supported me with my survey and also all my faculty members. It is because of their assistance and competence that I have reached this milestone. I would like to express my gratitude and sincere thanks to my Project Guide Ms. Divya Thakur, for instilling confidence in me to carry out this study and extending valuable guidance and encouragement from time to time, without which it would not have been possible to undertake and complete this project. I also wish to extend my appreciation to the management and staff of my college, especially our principal Dr. Nina Roy Choudhury, for their kind co- ordination and support. And last but not the least my colleagues for their valuable comments and suggestions for making this a cherishable experience for me.

Ms. Nadar Neha Anthonyraj Roll No.100

Executive Summary

I, Neha Anthonyraj a student of SIES college got an opportunity to carry out an internship in Aditya Birla Finance Limited ("ABFL") the leading well-diversified financial services company in India. The reason behind this was to get an in depth understanding of the functioning of corporate marketing used by well-known financial institutions. So, under ABFL comes Wealth management which offers personalized solutions to the clients and partners up with them at every step of the way on the road to financial well-being. Wealth management has different sub department which deals with different target groups such as wealth HNIS/UHNIS, Business partner groups, Corporate & Treasures services. So, the business partnership group has distribution partners who are agents who serves as a link between the Aditya Birla finance limited company and clients. As there is an intense competition between the financial companies and different types of marketing strategies are adopted in order to tie up with many financial advisors as possible. So, my internship project is to analysis such competitor’s marketing strategies. The main motive is get in depth understanding of various Marketing strategies used by competitors of Aditya Birla Finance ltd as they noticed an shift of number of IFAs from the favour of ABFL to such Competitors

INDEX Sr Nos.

Title

1. 1.1 1.2 1.3

2. 2.1 2.2 2.3 3.

Part I-Financial System Introduction to Financial system Overview of financial sector in India Role of Financial System Components/constituents of Indian Financial system Part II-Financial System-Evolution Evolution of Indian Financial System Financial sector reforms in India Trends in the Financial Services Industry in India

8-13 9 10 12

Part III-Aditya Birla Finance Ltd Company Profile

14-29

1-7 1 2 5 6

Company profile 3.1 History of Aditya Birla finance Limited

15 16

3.2 Key People of Aditya Birla finance Limited

17

3.3 Products& Service Offering of Aditya Birla finance Ltd

18

3.4 Mission and objectives of Aditya Birla finance Ltd

27

3.5 SWOT analysis Of Aditya Birla finance Ltd

28

Part IV-Aditya Competitors 4.

Pg no.

Competitor profile 4.1 NJ Wealth

Birla

Finance

Ltd

‘s 30-32 30 31

32

4.2 Prudent corporate

5.

6.

Part V-Comparison of marketing strategies 33-42 used by Aditya Birla Finance Ltd and its competitors Comparative analysis of marketing strategies used 33 by competitors of Aditya Birla finance Ltd 5.1 Brand positioning of ABFL, NJ wealth, Prudent corporate

34

5.2 Marketing strategies used by ABFL, NJ Wealth, Prudent corporate

37

Part VI-Role in the Experience of Internship Role in the organization

Organizations

& 43-53 45

6.1 Background of the study

47

6.2 Reason for the study

48

6.3 Research methodology

49

6.4 Finding & Interpretations

50

6.5 Recommendations/inferences

55

7.

Challenges/Limitations

56

8.

Conclusion

57

9.

Bibliography

58

Annexure

59

10.

Part IFINANCIAL SYSTEM

Chapter I-Introduction to Financial system

[1.1] Overview of financial service sector in India [1.2] Role of Financial System [1.3] Components/constituents of Indian Financial System

1

INTRODUCTION Overview of financial service sector in India

India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, nonbanking financial companies, co-operatives, pension funds, mutual funds and other smaller financial entities.

The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 per cent of the total assets held by the financial system.

The Government of India has introduced several reforms to liberalise, regulate and enhance this industry. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing guideline to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA).

With a combined push by both government and private sector, India is undoubtedly one of the world's most vibrant capital markets. In 2017, a new portal named 'Udyami Mitra' has been launched by the Small Industries Development Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small and Medium Enterprises' (MSMEs) in the country. India has scored a perfect 10 in protecting shareholders' rights on the back of reforms implemented by Securities and Exchange Board of India (SEBI).

2

Market Size The Mutual Fund (MF) industry in India has seen rapid growth in Assets Under Management (AUM). Total AUM of the industry stood at Rs 24.03 trillion (US$ 342.01 billion) between April-November 2018. At the same time the number of Mutual fund (MF) equity portfolios reached a high of 74.6 million as of June 2018.Another crucial component of India’s financial industry is the insurance industry. The insurance industry has been expanding at a fast pace. The total first year premium of life insurance companies reached Rs 193,866.23 crore (US$ 30.10 billion) during FY18.Along with the secondary market, the market for Initial Public Offers (IPOs) has also witnessed rapid expansion. The total amount of Initial Public Offerings (IPO) increased to US$ 1.2 billion raised from 37 between April – June 2018. Over the past few years India has witnessed a huge increase in Mergers and Acquisition (M&A) activity. In H12018, 74 deals of acquisition took place in financial sector. The total value of such transactions was US$ 4.166 billion. Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix Inc to build a robust insurance distribution network in the country through a new distribution exchange platform.

Investments/Developments 

Investments by Foreign Portfolio Investors (FPIs) in Indian capital markets have reached Rs 6,310 crore (US$ 899.12 million) up to November 22, 2018. 3



As of October 2018, the Financial Inclusion Lab has selected 11 fintech innovators with an investment of US$ 9.5 million promoted by the IIMAhmedabad's Bharat Inclusion Initiative (BII) along with JP Morgan, Michael and Susan Dell Foundation, and the Bill and Melinda Gates Foundation.



The private equity and venture capital (PE/VC) investments reached US$ 25.20 billion between January to October 2018.

Government Initiatives 

In December, 2018, Securities and Exchange Board of India (SEBI) proposed direct overseas listing of Indian companies and other regulatory changes.



Bombay Stock Exchange (BSE) introduced weekly futures and options contracts on Sensex 50 index from October 26, 2018.



In September 2018, SEBI asked for recommendations to strengthen rules which will enhance the overall governance standards for issuers, intermediaries or infrastructure providers in the financial market.



The Government of India launched India Post Payments Bank (IPPB), to provide every district with one branch which will help increase rural penetration. As of August 2018, two branches out of 650 branches are already operational.

Road Ahead 

India is today one of the most vibrant global economies, on the back of robust banking and insurance sectors. The relaxation of foreign investment rules has received a positive response from the insurance sector, with many companies announcing plans to increase their stakes in joint ventures with Indian companies. Over the coming quarters there could be a series of joint venture deals between global insurance giants and local players.



The Association of Mutual Funds in India (AMFI) is targeting nearly fivefold growth in assets under management (AUM) to Rs 95 lakh crore (US$ 1.47 trillion) and a more than three times growth in investor accounts to 130 million by 2025.

4

ROLE OF FINANCIAL SYSTEM

The financial sector plays a critical role in the function of the economy. It allows more efficient transfer of resources from savers to investors as well as facilitates the use of funds by households, businesses, traders and governments. In fact, an efficient financial sector spurs economic growth. The Indian financial system6 comprises of an impressive network of banks, other financial and investment institutions, offering wide range of products and services, which together function in fairly developed capital and money markets. As such, financial system has come to occupy an important role in the process of economic development. The economic development of a country depends, inter alias, on its financial structure. In the long run, the larger the proportion of financial assets to real assets, the greater the scope for economic growth. Investment is a pre- condition of economic growth. This apart, to sustain growth, continued investment in the growth process is essential. Since finance is an important input in the growth process it has a crucial role to play in the economy. The more efficient composition of real wealth is obtained by the promotion of financial assets which provide incentives to saves to hold a large part of their wealth in financial form. The increasing rate of savings is correlated with the increase in the proportion of savings held in the form of financial assets relative to tangible assets. A sound and efficient financial system can contribute to economic growth and development in a number of ways which include by providing a spectrum of financial assets to meet diverse preferences of household and thus, enabling them to choose their asset portfolios to achieve a preferred mix of return, liquidity and risk. Further, it helps to raise productivity of capital through efficient allocation. Conditions8 that support the development of a more robust and balanced financial structure with improve the ability of domestic financial systems to contribute to their growth. By restoring macroeconomic stability, building better legal, accounting, and regulatory systems, specifying rules for fuller disclosure of information, and levying taxes that do not fall excessively on finance governments can lay the foundations for smoothly functioning financial systems. 5

a. It serves as a link between savers and investors. It helps in utilizing the mobilized savings of scattered savers in more efficient and effective manner. It channelizes flow of saving into productive investment. b. It assists in the selection of the projects to be financed and also reviews the performance of such projects periodically. c. It provides payment mechanism for exchange of goods and services. d.

It

provides

a

mechanism

for

the

transfer

of

resources

across

geographicboundaries. It provides a mechanism for managing and controlling the riskinvolved in mobilizing savings and allocating credit. e. It promotes the process of capital formation by bringing together the supply ofsaving and the demand for ingestible funds. f. It helps in lowering the cost of transaction and increase returns. Reduce costmotives people to save more. g. It provides you detailed information to the operators/ players in the marketsuch as individuals, business houses, Governments etc.

6

Components/ Constituents of Indian Financial system: The following are the four main components of Indian Financial system. 1. Financial institutions 2. Financial Markets 3. Financial Instruments/Assets/Securities 4. Financial Services. Financial institutions: Financial institutions are the intermediaries who facilitate smoothfunctioning of the financial system by making investors and borrowers meet. Theymobilize savings of the surplus units and allocate them in productive activitiespromising a better rate of return. Financial institutions also provide services toentities seeking advice on various issues ranging from restructuring todiversification plans. They providewhole range of services to the entities whowant to raise funds from the markets elsewhere. Financial Markets:Finance is a prerequisite for modern business and financial institutionsplay a vital role in economic system. It's through financial markets the financialsystem of an economy works. The main functions of financial markets are: 1. To facilitate creation and allocation of credit and liquidity; 2. To serve as intermediaries for mobilization of savings; 3. To assist process of balanced economic growth; 4. To provide financial convenience. Financial Instruments Another important constituent of financial system is financial instruments. Theyrepresent a claim against the future income and wealth of others. It will be a claimagainst a person or an institution, for the payment of the some of the money at aspecified future date. Financial Services: Efficiency of emerging financial system largely depends upon the qualityand variety of financial services provided by financial intermediaries. The termfinancial services can be defined as "activities, benefits and satisfaction connectedwith sale of money that offers to users and customers, financial related value". 7

Part II FINANCIAL SYSTEM-EVOLUTION Chapter II- Evolution of Financial system [2.1] Evolution of Indian Financial System [2.2] Financial sector reforms in India [2.3] Trends in the Financial Services Industry in India

8

EVOLUTIONOF INDIAN FINANCIAL SYSTEM

Economic development of the nation is completely depending on its financialstructure. Both in long run and short run, the financial system and its efficiencydictates the success of the nation in terms of economic growth. The larger, theproportion of financial assets to real assets, the greater the scope of economicgrowth. Investments which are considered as the core of financial structure are apre-condition of economic growth. This apart, to sustain growth, continuedinvestment in the growth process is essential. As finance is an important input inthe growth process, it has a crucial role to play in the development off economy. The increasing rate of saving is correlated with the increase in the proportion ofsavings held in the form of financial assets relative to tangible assets. The word "system", in the term "financial system", implies a set ofcomplex and closely connected or interlined institutions, agents, practices,markets, transactions, claims, and liabilities in the economy. Indian financialsystem consists of financial market, financial instruments and financial intermediation. In simple terms, financial system is the set of interrelated activities/services working together to achieve some predetermined purpose orgoal. It includes different markets, the institutions, instruments, services andmechanisms which include the generation of savings, investment capital formationand growth. Van Horne defined the financial system as the purpose of financialmarkets to allocate savings efficiently in an economy to ultimate users either forinvestment in real assets or for consumption. Christy has opined that the objectiveof the financial system is to “supply funds to various sectors to activities of theeconomy in ways that promote the fullest possible utilization of resources without the destabilizing consequence of price level changes or unnecessary interference with individual desires. According to Robinson, the primary function of thesystem is “to provide a link between savings and investment for the creation ofnew wealth and to permit portfolio adjustment in the composition of the existingwealth. Financial system provides services that are essential in a modern economy. The use of a stable, widely accepted medium of exchange reduces the costs oftransactions. It facilitates trade and therefore, specialization in production.Financial assets with attractive yield, liquidity and risk characteristics encouragesavings in finical form. By evaluating alternative investments and monitoring theactivities of borrowers, financial intermediaries increase the efficiency of resourceuse. Access to variety of financial instruments enables an economic agent to pool,price and exchange risks in the markets. Trade, theefficient use of resourcessaving and risk taking are the cornerstones of a growing economy. In fact, thecountry could make this feasible with the active support of the financial system. 9

FINANCIAL SECTOR REFORMS IN INDIA

It was in this backdrop that wide-ranging financial sector reforms inIndia were introduced as an integral part of the economic reforms initiated in theearly 1990s with a view to improving the macroeconomic performance of theeconomy. The reforms in the financial sector focused on creating efficient andstable financial institutions and markets. The approach to financial sector reformsin India was one of gradual and non-disruptive progress through a consultativeprocess. The Reserve Bank has been consistently working towards setting anenabling regulatory framework with prompt and effective supervision,development of technological and institutional infrastructure, as well as changingthe interface with the market participants through a consultative process.Persistent efforts have been made towards adoption of international benchmarksas appropriate to Indian conditions. While certain changes in the legalinfrastructure are yet to be affected, the developments so far have brought theIndian financial system closer to global standards. The reform of the interest regime constitutes an integral part of thefinancial sector reform. With the onset of financial sector reforms, the interest rateregime has been largely deregulated with a view towards better price discoveryand efficient resource allocation. Initially, steps were taken to develop thedomestic money market and freeing of the money market rates. The interest rates offered on Government securities were progressively raised so that the Government borrowing could be carried out at market-related rates. In respect of banks, a major effort was undertaken to simplify the administered structure of interest rates. Banks now have sufficient flexibility to decide their deposit and lending rate structures and manage their assets and liabilities accordingly. At present, apart from savings account and NRE deposit on the deposit side and export credit and small loans on the lending side, all other interest rates are deregulated. Indian banking system operated for a long time with high reserve requirements both in the form of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This was a consequence of the high fiscal deficit and a high degree of monetization of fiscal deficit. The efforts in the recent period have 10

been to lower both the CRR and SLR. The statutory minimum of 25 per cent for SLR has already been reached, and while the Reserve Bank continues to pursue its medium-term objective of reducing the CRR to the statutory minimum level of 3.0 per cent, the CRR of SCBs is currently placed at 5.0 per cent of NDTL. As part of the reforms programme, due attention has been given to diversification of ownership leading to greater market accountability and improved efficiency. Initially, there was infusion of capital by the Government in public sector banks, which was followed by expanding the capital base with equity participation by the private

investors.

This

was

followed

by

a

reduction

in

the

Governmentshareholding in public sector banks to 51 per cent. Consequently, the share of thepublic sector banks in the aggregate assets of the banking sector has come downfrom 90 per cent in 1991 to around 75 per cent in2004. With a view to enhancingefficiency and productivity through competition, guidelines were laid down forestablishment of new banks in the private sector and the foreign banks have beenallowed more liberal entry. Since 1993, twelve new private sector banks havebeen set up. As a major step towards enhancing competition in the banking sector,foreign direct investment in the private sector banks is now allowed up to 74 percent, subject to conformity with the guidelines issued from time to time.

11

Trends in the Financial Services Industry in India

The financial services industry is a highly volatile sector, which immediately gets affected by various reasons: be it technology, government regulations, fiscal and monetary policies, trade relations, tax changes, etc. This year has witnessed major changes in the financial services, thanks to technology again, we explore which are the top trends that rocked the financial service industry over the past 5 years.

1. The Boom of Big Data Big Data has almost made the pandemonium break loose in the field of data science. Data science, business intelligence, and business analytics have penetrated in almost all areas. This has played a pivotal role in redefining the way data is used. The management of finance industry is looking out for professionals who are well equipped with the knowledge of business analytics. Rather, it is a golden period for Business Analytics professionals, who will witness a sudden increase in their demand. With the ease in the collection of data of consumers and their transactions in addition to the development of techniques to use this information to build potential clients, the financial services industry is certainly up for a big change. This sea wave of change is sure to bring a huge demand for business analytics professionals.

2. Start-ups In India Not to mention in India has witnessed a growth in the start-up industry deals by leaps and bounds. The recent government also announced financial assistance for start-ups. You’ll see many ideas lined up for investors and the financial services industry has much to do in this case. With rising start-ups who need investments, there is a need for finance modelling professionals who will prepare financial models to represent the financial viability of the projects.

3. Outsourcing Most Indian companies, considering the increasing costs of setting up head offices in top cities such as Mumbai, Delhi, Bangalore, etc., have decided to outsource their KPO activities to Tier II and Tier III cities such as Pune, Jaipur, etc. Overcrowding of resources 12

in Tier I cities has induced the companies to set up in other cities, thereby increasing the employment opportunities in these areas. This proves there are increasing employment opportunities for finance professionals in Tier II and Tier III cities.

4. NPAs The menace of NPAs (Non-Performing Assets) has given birth to responsible debt payment since the attitude of MNCs is slowly changing these days. Companies no longer keep the attitude of looking at debts as a primary source of funds or engage in siphoning of funds. This can serve as a big booster to honest entrepreneurs and discourage defaults in payments. In fact, as per latest news, almost four banks are planning to sell the assets of Kingfisher Airlines, the company who came into limelight after being declared as a defaulter of payments. Considering the change, there is bound to be increasing demand for credit analysts and project finance experts who will review the credibility and financial viability of the firm. 5. IFRS With the much ado about IFRS, it has finally started making its impact in the financial accounting of Indian companies. While voluntary adoption has already begun, some companies have come under the ambit of compulsory adoption since 1st April 2016. This has necessitated the demand of IFRS professionals who can guide into a successful change in the financial accounting. 6. Payment Banks Payment banks are redefining traditional banking since it is possible for them to reach out as many rural areas who’ve never availed formal banking services. With more and more payment banks getting licenses from the RBI, this move has become widely popular. the big names in this industry include Paytm, Vodafone M-Pesa, National Securities Depositary, etc. Payment Banks will ensure that even rural areas are availing facilities of formal banking services, which in turn, will ensure that there is an increase in demand of support and finance professionals. The Indian economy is making its mark on the global map. That is the reason many MNCs are opening up their units in India or outsourcing their activities to India. The Internet has already created a revolution and the financial service industry is making its mark. 13

Part III ADITYA BIRLA FINANCE LTD COMPANY PROFILE Chapter III- Company Profile [3.1] History of Aditya Birla finance Limited [3.2] Key People of Aditya Birla finance Limited [3.3]Products & Service Offering of Aditya Birla finance Ltd [3.4] Mission and objectives of Aditya Birla finance Ltd [3.5] SWOT analysis Of Aditya Birla finance Ltd

14

Company profile

Aditya Birla finance limited Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified financial services company in India offering end-to-end lending, financing and wealth management solutions to a diversified range of customers across the country. ABFL is registered with RBI as a systemically important non-deposit accepting non-banking finance company (“NBFC”) and ranks among the top five largest private diversified NBFCs in India based on AUM as of March 31st, 2017 (source: CRISIL). For the Quarter ended 31st December 2018, ABFL’s loan book has reached Rs. 493 billion. Along with its growth, ABFL has maintained healthy asset quality with GNPA (Gross NPA) at 1.17% as of 31st December 2018. This is reflected in its long-term credit rating of AAA (Stable) by ICRA and AAA (Stable) by India Ratings, Perpetual debt credit rating of AA+ (Stable) by ICRA and AA+ (Stable) by India Ratings (Stable) and short-term credit rating of A1+ by ICRA & India Ratings. ABFL caters to the varied needs of diverse set of customers ranging across retail, HNI, ultra HNI, micro enterprises, SME, mid and large corporates. ABFL offers customized solutions in areas of personal and business loans, corporate finance, mortgages, capital market-based lending, project loans, structured finance, wealth management and digital lending, debt capital markets and syndication. Aditya Birla Capital Limited (ABCL), is the financial services platform of the Aditya Birla Group. With a strong presence across the life insurance, asset management, private equity, corporate lending, structured finance, project finance, online personal finance management, housing finance, pension fund management and health insurance business, ABCL is committed to serving the end-to-end financial services needs of its retail and corporate customers. Anchored by more than 17,000 employees, ABCL has a nationwide reach and more than 2,00,000 agents / channel partners. 15

History of Aditya Birla finance Limited

Originally incorporated in October 2007 under the Companies Act 1956, Aditya Birla Financial Services Private Limited received the certificate of registration from the Reserve Bank of India in May 2009 to commence the business as nondeposit taking NBFC.In December 2014, the company was converted from a private limited company to a public limited company, and was renamed as ‘Aditya Birla Financial Services Limited’. During past one decade since its incorporation, the Company has come a long way to become one of the largest financial services players in India. Year 2017 marks a milestone, with the Company becoming a pure play listed holding company of all the financial services businesses of the Aditya Birla Group. To mark this new phase in its journey, and in line with its new unified brand identity, the Company was rechristened as ‘Aditya Birla Capital Limited’ in June 2017. The synopsis of its journey over past 10 years from 2007-2017 is as follows: 

From 5 business lines to a well-diversified portfolio of 12 business lines



Aggregate AUM1 has grown 10 times to Rs. 2,463 billion



Lending book (including Housing Finance) has grown 65 times to Rs. 388 billion



Aggregate2 revenues have grown 6 times to Rs. 106 billion



From Investment phase to aggregate2 earnings before tax of Rs. 11.5 billion Our parentage Aditya Birla Capital is a part of the Aditya Birla Group, a USD 40 billion Indian multinational in the league of Fortune 500. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 36 countries across the globe. About 50 percent of its revenues flow from its overseas operations. For more information on the Aditya Birla Group, please visit www.adityabirla.com.



Includes AUM of Life & Health Insurance, Private Equity & quarterly average AUM of Asset Management businesses



Represents summation of 100% of the IGAAP financials of subsidiaries/JVs, before inter-company eliminations or minority interest 16

KEY PEOPLES OF ADITYA BIRLA FINANCE LTD AS OF 2019 Rakesh Singh Chief Executive Officer Sanjay Miranka Chief Financial Officer (CFO) - NBFC Rajeev Sharma Head - Capital Market Group Devang Rawal Head - Corporate & Institutional Nirmal Kishore Head - Retail Lending M S Sekhar Head - Risk & Compliance Ankur Kapoor Head - Operations Sujatha Sudheendra Head - Human Resources Sudesh Puthran Chief Technology Officer (CTO) Udayan Sharma Head - SME, Wealth Management & Emerging Businesses

17

Products & Service Offering of Aditya Birla finance Ltd

DCM & Loan Syndication

Personal

SME Finance

finance Aditya birla finance ltd Corporate finance

Real estate finance Loan against Securities

 Personal finance

Aditya Birla Finance offers personal loan to salaried individuals with a good credit score and a consolidation, medical emergencies, purchase of household or electronic goods, children's education, wedding expenses, home improvement and for travelling. Broadly, it covers an individual's immediate personal need for funds. The unsecured loan is offered to all salaried individuals from ages 23 to 60 at a fixed rate of interest.  Corporate finance

Aditya Birla Finance Limited offers a comprehensive solution to meet all your business requirements. We offer business owners Corporate Finance that help you scale up their operations or acquire new processes for optimal functioning and 18

profitability. Moreover, our corporate finance is an excellent solution that applies to both short term (managing assets and existing liabilities) and long term (capital purchases and future investments) financial issues. 

Project Finance:The project financing business was set up in 2011 with a view to partner in the infrastructure development financing in India. Since then, this business has focussed on the opportunities in the infrastructure, core and manufacturing sectors by providing comprehensive solutions for mid-sized projects and partnering with other infrastructure financing institutions for the larger projects.The project financing team acts as a focal point of contact for our customers' entire debt financing requirements catering to business development, project appraisal, customizing, advising and providing financing solutions. The project financing business has been the sole lead arranger and underwriter of a significant amount of project debt over the years. With over 100 corporate groups serviced by our three zonal offices in Mumbai, Delhi & Hyderabad, this business caters to providing holistic solutions encompassing Rupee term loans, sub-debt / mezzanine finance, non-fund-based facilities as well as structured finance and bond placements across major sectors.



Structured Finance: Structured corporate finance transactions require a trustworthy, reliable and an experienced partner (and not just a financier) who can understand your business requirements. Apart from conventional balance sheet and project loans, we offer customised & innovative solutions for long term working capital requirements, bridge loans, acquisition financing and equity investment requirements. By providing timely and innovative solutions to assist you in achieving your goals, we would be able to become your partner of choice and not just a financier.



Working Capital: Businesses run on a constant stream of daily funds. Their requirements can range from purchasing monthly office supplies to paying rent on the office space. However, having working capital at hand always is not potentially likely at all times. Hence, companies may explore the option of taking a Working Capital Demand Loan to meet their financial needs.

19



Term Loans: Businesses need a periodic infusion of funds to keep their operations running without a hitch. From purchasing new machinery to upscale output to procuring skilled manpower, every business requires immediate funding to keep its activities and revenues on course of growth. There may be times when a company may not have enough cash reserves at hand, or may lack adequate securities that may be instantly liquidated. In such cases, a term loan is a useful instrument.

 Loan against securities 

Loan Against Shares: Every business requires funding from time to time. Whether to upgrade operations or purchase new premises, business loans help corporates take a higher leap towards progress. Whether your business is small or large, you may require an inflow of funds to take your operations to the next stage of success. However, you could consider putting your securities in the capital market to use. Instead of monetising your investments in securities, why not take a Loan Against Shares (LAS) also known as Loan Against Securities or a Line of Credit (LOC) and leverage your investments.



Loan Against Mutual Funds: Loan Against Mutual Funds offers customers the opportunity of receiving immediate liquidity against the mutual fund units they own. This is essentially an overdraft facility for short-term monetary requirements, with a relatively shorter tenure than other loans. You may take a loan against the mutual funds you own to earn immediate returns on it, as well as earn surplus reserves to invest elsewhere. To avail of a Loan Against Mutual Funds (LAMF), the borrower must request the Mutual Fund Registrar to mark a lien against the mutual fund units



Loan Against Life Insurance Policy:Loan Against Life Insurance Policies offers customers the opportunity to leverage their existing life insurance policies and generate cash reserves quickly. This is a beneficial facet of life insurance, which helps you liquidate an existing policy (ies) to beget funds for professional or business purposes. It is pertinent to note that the loan is approved only against 20

traditional life insurance models that include endowment and money back features. It is not granted against term insurance, but we approve the LAIP for unit-linked insurance policies.

Also, not all life insurance plans qualify for personal loan against insurance policy. Aditya Birla Finance approves LAIP only for Life Insurance policies that have attained their surrender value at the time of application of the loan. 

ESOP Financing: Employee contribution is the single most important driving force for a company’s success. Businesses cannot achieve their financial goals if employees do not exert their best efforts towards accomplishing the same. Hence, companies may reward their prized employees by setting up an Employee Stock Option Plan (ESOP). The ESOP may either be set up as a trust fund or it can borrow money to purchase new or existing company shares. Employees may opt for ESOP Financing to purchase company equity shares



IPO Financing: Investing in IPOs is a rewarding experience for individuals or companies. However, it may so happen that you may not possess the requisite funds to subscribe to IPOs. At this juncture, an inflow of funds from another source may become necessary. One can explore the option of IPO Financing to bridge the deficit between the resources at hand and the funds needed in aggregate.



Promoter Funding: After building your company to a force to reckon with, you as the promoter of the business, will always want to expand by way of starting new operations, entering new markets and introducing new products. To do this, you may require additional funds. In such a case, Promoter Funding against your shareholding is an excellent way to raise funds immediately.



Margin Trade Funding: There is no doubt that one may need urgent funds at key moments in life. One may even wish to leverage their owned equity investments to get a loan. However, the securities one owns may not be sufficient to either yield the required loan amount or purchase further securities. In such a case, one may wish to bridge the deficit in their resources with funding from another source. 21

A financing solution known as Margin Trade Funding is a worthwhile option to explore at this juncture.  Real estate finance

Loans Against Property: A sudden requirement of funds is an unavoidable circumstance arising in professional or personal life. Whether a personal necessity (hospitalisation, child's marriage) or a professional one (expanding business operations on a priority basis), every person requires immediate financial backing at key moments. In this context, it is imperative to consider an invaluable source of finance known as Loan Against Property (LAP). This is a loan borrowed by placing one's owned property as collateral. The funding may be given by financial institutions after scrutinising the validity of the said property and its current market value. 

Construction Finance: The real estate industry requires a constant stream of funds for various construction-related tasks. From the under-construction stage to the handover stage, developers must have funds available to ensure the timely delivery of housing or commercial units. Stalling a project mid-way owing to paucity of funds is a common problem faced by many housing and commercial development projects in India. Real estate developers can overcome this hurdle by availing construction loans.



Lease Rental Discounting: Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rental cash flows from the property and its current market value.



Commercial Property Purchase: The real estate market in India continues to be in a state of speedy development. Owing to a business-friendly environment several Indians are taking up the gauntlet of running their own enterprises. This 22

necessitates the purchase of commercial property to set up business headquarters. A company will also require premises for the storage of machinery and equipment, or a smaller premise for back-office operations. For all of this, the company needs a steady stream of revenue that will facilitate the property purchase. In the absence of the requisite funds at hand, businesses can avail of a finance solution known as the Commercial Property Purchase Loan.  SME Finance

As the owner of a small or medium enterprise, you have to manage the day-to-day running of your business, while also pursuing plans to expand your business. This could be through technological advancement, or perhaps through setting up ancillary units in different markets, or even scaling up production to anticipate future demand. Along with this, you also need to keep an eye out for opportunities you can capitalise on: a sudden tender you want to bid for, a unit that is up for auctions that you could buy. All of these require funds that your working capital may not have the elasticity to provide.SME Finance can prove beneficial to you at these times. Our range of products are tailored to meet your requirements. 

Line of Credit: A line of credit, is an arrangement between a financial institution, and a customer that establishes a maximum loan balance that the lender permits the borrower to access or maintain a customer may draw upon the available line of credit, provided that the amount does not exceed the limit. Money borrowed on the line of credit must be paid back within a specified timeframe, at a specified interest rate. Unlike a loan, however, only the money actually drawn (or used) on a line of credit is charged.



Unsecured Business Loan: A line of credit, is an arrangement between a financial institution, and a customer that establishes a maximum loan balance that the lender permits the borrower to access or maintain a customer may draw upon the available line of credit, provided that the amount does not exceed the limit. Money borrowed on the line of credit must be paid back within a specified timeframe, at a specified interest rate. Unlike a loan, however, only the money actually drawn (or used) on a line of credit is charged 23



Secured Business Loan: The Small and Medium Enterprises (SME) sector in India has matured tremendously over the last few decades, providing employment opportunities to millions of people and bringing several industries to rural areas. The SME sector employs millions of Indians and functions as a subsidiary to large industries in the country. The sector also contributes to a large portion of the country's exports. It follows that the growing SME segment's business output must be bolstered by timely funding. The productivity of the sector can be significantly augmented by periodic funding. This business loan takes the shape of a financial product known as SME Loan.



Working Capital Demand Loan: Businesses run on a constant stream of daily funds. Their requirements can range from purchasing monthly office supplies to paying rent on the office space. However, having working capital at hand always is not potentially likely at all times. Hence, companies may explore the option of taking a Working Capital Demand Loan to meet their financial needs.



Supply Chain Financing Solutions - Invoice Discounting: Enables you to convert your receivables into cash which in turn improves liquidity resulting into a healthy and continuous cash flow for your business. Vendor Finance

Channel Finance for Manufacturers Channel Finance for Traders 

DCM & Loan Syndication

The DCM business aims to provide solutions by leveraging its knowledge and insight of the debt capital markets in India. These are coupled with robust distribution and structuring capabilities. The following debt capital market offerings:

 CONVENTIONAL CORPORATE BONDS

24

We provide financing solutions to corporates and financial institutions to meet their business requirements such as Capital Expenditure, Long Term Working Capital, Refinancing and other corporate purposes.

 SHORT- TERM FINANCING We provide short term financing products such as Commercial Paper issuances and Structured Bridge financing instruments.

 CREDIT ENHANCEMENT STRUCTURES We provide tailor made solutions using various credit enhancement mechanisms such as Third-Party Guarantee, Holdco Guarantee, DSRA Guarantee, Partial Credit Enhancement, First Loss Guarantee thereby increasing the credit worthiness assuring a diverse investor base.  SECURITISZATION Our securitization solutions extend across a wide range of asset classes, including consumer loans of all types, Real Estate holdings and future flows of stable cash streams through a wide array of solutions like Pass Through Certificates (PTCs), Commercial

Mortgage

Backed

Securities

(CMBS),

Collateralized

Debt

Obligations (CDOs) and Receivable Discounting structures.

 COLLATERALISZED LENDING We provide innovative financing solutions for Corporates against collateralized securities such as Capital Market instruments and Real Estate.

 MEZZANINE FUNDING We provide customized solutions to corporates and financial institutions through Subordinated Debt and Quasi-equity instruments.

 ACQUISITION FINANCE 25

We enable corporates to identify the optimal financing solution for acquiring the target company with the use of debt, equity and hybrid financing techniques.  Lease Rental Discounting

Owning a commercial or residential property in India comes with its share of advantages – the principal one among them being that the property owner is able to lease out the premises to earn rental income. Apart from monetising the property, the rent receivables also yield an additional benefit to the owner: he can raise a term loan against the rent for personal or business intents. This loan is known as Lease Rental Discounting (LRD) and is approved against the discounted rental cash flows from the property and its current market value.  Commercial Property Purchase Loan

The real estate market in India continues to be in a state of speedy development. Owing to a business-friendly environment several Indians are taking up the gauntlet of running their own enterprises. This necessitates the purchase of commercial property to set up business headquarters. A company will also require premises for the storage of machinery and equipment, or a smaller premise for back-office operations. For all of this, the company needs a steady stream of revenue that will facilitate the property purchase. In the absence of the requisite funds at hand, businesses can avail of a finance solution known as the Commercial Property Purchase Loan.  Construction finance

The real estate industry requires a constant stream of funds for various construction-related tasks. From the under-construction stage to the handover stage, developers must have funds available to ensure the timely delivery of housing or commercial units. Stalling a project mid-way owing to paucity of funds is a common problem faced by many housing and commercial development projects in India. Real estate developers can overcome this hurdle by availing construction loan 26

Mission and objective of Aditya Birla finance limited

To be a premium global conglomerate with a clear focus on each of the businesses To deliver superior value to our customers, shareholders, employees and society at large The "Power of 5" is unique way of saluting, celebrating and cheering the inspirational act of integrity, commitment, passion, seamlessness and speed by our people, over the last decade. Integrity: Honesty in every action Acting and taking decisions in a manner that is fair, honest, and following the highest standards of professionalism. Integrity for us means not only financial and intellectual integrity, but in all other forms as are commonly understood Commitment: Deliver on the promise On the foundation of integrity, doing whatever it takes to deliver value to all stakeholders. In the process, taking ownership of our actions and decisions, those of our team and that part of the organisation that we are responsible for Passion: Energised action A missionary zeal arising out of emotional engagement with the organisation that makes work joyful and inspires each one to give our best. Seamlessness: Boundaryless in letter and spirit Thinking and working together across functional silos, hierarchies, business and geographies. Leveraging the available diversity to garner synergy benefits and promote openness through sharing and collaborative efforts Speed: One step ahead always Responding to internal and external customers with a sense of urgency. Continuously seeking to crash timelines and choosing the right rhythm to optimise organisation efficienciesFinancing solutions to enable us to get the right things at the right time without having to wait. 27

SWOT Analysis of Aditya Birla Finance Ltd

• Goodwill of Aditya Birla Brand

• Less awareness in rural market

Strength

Weakness

Opportunites

Threats

• Huge potential in Finance market

• Many competitors in the market

SWOT Analysis of Organization SWOT analysis is a tools auditing an organization and its environments. It is the first stage of planning and helps markets to focus on key issued. SWOT stands for strength, weakness, opportunity and threats. Strengths and weakness are internal factor. Opportunities and threats external factors



STRENGTH

Carry Goodwill of Aditya Birla Brand

Transparent functioning.

Very strong capital base.

28

Customer satisfaction.



WEAKNESS

Less awareness in rural market.

Number of advertisements is very less.

Shifting of IFAs from their favour.



OPPORTUNITIES

Huge potential in Financial sector.

Create awareness about the importance of financial advisory.

Build brand trust through investment in promotional activities.



THREATS

Stiff competition from Nj wealth and prudent corporate.

Entry of new firms.

29

Part IV ADITYA BIRLA FINANCE LTD ‘s COMPETITORS Chapter IV-Competitors Profile [4.1] Nj Wealth [4.2] Prudent corporate

30

Competitors Profile  NJ Wealth

NJ Wealth - Financial Products Distributors Network, one of India's leading and most successful network of distributors in the financial services industry. Started in 2003, NJ Wealth seeks to reach out to the common man and extend the opportunity to create wealth through an empowered network of financial products distributors – the NJ Wealth Partners. To its Partners, NJ Wealth provides a full service, comprehensive business platform with end-to-end solutions critical for success in financial products distribution practice. With its compelling set of offerings covering every area of distribution practice, NJ Wealth has managed to successfully transform the lives of many small and big distributors. To the common man, NJ Wealth offers a comprehensive wealth management platform with a wide choice of financial and non-financial products. Backed by high levels of excellence in operational and service standards, NJ Wealth offers customers of its Partners, with solutions that truly make a difference. Driven by the strong vision of 'Creating Wealth and Transforming Lives', NJ Wealth's constant endeavour is to build on the ideas that are meaningful & effective in scaling business challenges, seizing available opportunities and serving the interests of the customer.

The NJ Wealth family has grown steadily and today it has over 33,000+ NJ Wealth Partners, spread across 95 branches in 19 states in India with over 25,00,000+ investors, and over INR 65,000+ crores of mutual fund assets under advice. Irrespective of the numbers though, it is trust in us which fuels the passion for creating solutions with excellence that touch many lives, day after day.

31



Prudent Corporate

Incorporated in 2000 with a clear vision of providing professional services in the area of personal and corporate investments, Prudent group has created a niche segment over a period of time with an excellent quality client base with in-house capability of analysing various products on various parameters before suggesting them to clients.

The team approach has worked wonders and in the short span of over one and a half decade, the Prudent Group has expanded its horizon by offering specialized services in the areas of Personal & Corporate Investment Planning through Mutual Funds, Equities, Derivatives, Third Party Products, Fixed income Products, Life/General Insurance, Commodities and Real Estate through various business verticals.

Prudent is headquartered at Ahmedabad, Gujarat and operates out of 70 branches across 19 states in India. Prudent comprises a team of 800+ high skilled professionals in various business verticals, it is their combined intelligence, spirit, and dedication that has lead the company to enviable heights.

Time and again, Prudent has been rewarded by industry through various awards and laurels. Prudent was adjudged as winner of CNBC TV 18 - Best Financial Advisor Award (West) for 5 years in a row from 2009 to 2014.

32

Part V-COMPARISON OF MARKETING STRATEGIES USED BYADITYA BIRLA FINANCE LTD & ITS COMPETITORS Chapter V-Comparative analysis of marketing strategies used by competitors of Aditya Birla finance Ltd [5.1] Brand positioning of ABFL, NJ wealth, Prudent corporate [5.2] Marketing strategies used by ABFL, NJ Wealth, Prudentcorporate

33

Comparative analysis of marketing strategies used by of Aditya Birla Finance ltd

Brand positioningby Aditya Birla Finance ltd

Market Segmentation 

Aditya Birla Finance segment market based on user status -based on client’s position



The segmentation is also based on demographic- Providing Financial solutions based on Client’s age.



User Usage-Solutions based on client’s usage.

Target Marketing 

The target audience of Aditya Birla finance ltd varies as they have different solutions n advisory for different audience bas on their age , work profile , needs.

Positioning 

Brand Loyalty- As ABFL has its presence in the market for years and have catered to different market segments through these years.



Ad promotion- mostly used promotion are through print media.



Different campaigns-#dear money

34

Brand positioning by NJ Wealth

Market Segmentation 

In NJ Wealth, there exist heterogeneous segments. The major segment consists of Advisors.



Advisors are Segmented into insurance advisors, Tax consults, Chartered Accountant, Stock brokers and postal agents.

Target Marketing 

NJ INDIA INVEST targets various segments Like all financial professionals i.e. teacher, advocate, MBA student, etc.



But the main targets are the Insurances, Taxes, Direct Equity and PPF Different products are provided to suit different targeted groups.

Positioning 

NJ India is a dominant player in the Indian mutual funds distribution business with over decade of experience.



NJ India Invest has a given the very good research supports to his advisor.



In NJ India Invest is present in more than 100 location in 19 states.



NJ Wealth Focus on “BE A WEALTH ADVISOR” position.

35

Brand positioning by Prudent corporate

Market Segmentation



Prudent corporate has a global reach it segments it market based on geographic as well as on user status. Mostly advisors are targeted as they are mutual fund agents.



Advisors are Segmented into insurance advisors, Tax consults, Chartered Accountant, Stock brokers and postal agents.

Target Marketing 

Prudent corporate also targets various segments Like all financial professionals i.e. teacher, advocate, MBA student, etc.



But the main targets are the clients looking for investment solutions.

Positioning



Being an eminent name in the respective domain, Prudent Corporate always strive to render the most favourable Tax consultancy services to its clients.



Service is acknowledged by the clients because of being the best and reliable in nature.

36

Marketing Strategies of Aditya Birla finance ltd

 Running Different campaigns to promote their services

# DEARMONEY

Aditya Birla Capital Limited (ABCL) had launched its #DearMoney, commercial through a high-octane campaign across 51 TV channels, 14 radio stations, OOH locations, Facebook, YouTube, Instagram and websites.

Directed by Ram Madhvani, the TVC has been created by Taproot Dentsu. Media handling the digital campaign roll-out and MindShare India being responsible for the digital and TV media planning. Fitch India was responsible for the creation of the new visual brand identity for Aditya Birla Capital.

This is the very first campaign to be launched post the formation of Aditya Birla Capital, which is the holding company of all the financial services businesses of the Aditya Birla Group and one of the leading financial services players in India. With this launch, all ABCL businesses, inclusive of Aditya Birla Finance Limited, Aditya Birla Sunlife Mutual Fund, Aditya Birla SunLife Insurance and Aditya Birla Health Insurance, have come together as one to serve the end-to-end financial needs of its retail and corporate customers through one brand.

The campaign highlights the launch of a whole new category, money, and the launch of a whole new way in which financial brands enter and become a part of people's lives through their life's needs. Money is not an easy topic to talk about as the complexities surrounding it are unique to every individual. And therefore most of us do not like to talk about money, not just with others, but often even with ourselves. The objective of the campaign is to provoke people to start a conversation about money, with money! In a unique one-on-one conversation across all channels and 37

mediums, the campaign touches on the issues the people of India have in relation to their money and self-realise the need for money in various aspects of their life. For only when people start actively thinking about their money, will they take the first step towards planning it for all their life's needs, throughout their lives.  Tie up with apps such as paytm to offer finance option to seller

Online recharge and payments company Paytm has tied up with Aditya Birla Finance to offer hassle-free finance options to more than 50,000 sellers on its platform. The move is expected to help small and medium sellers to scale up their business. By creating an ecosystem which helps our merchants to grow their business faster Accessibility to short-term loans and working capital loans is often a major roadblock for smaller sellers which we are working towards removing Aditya Birla Finance was setting up a dedicated system and infrastructure to cater to the financing requirement of smaller sellers.

A majority of micro, small and medium enterprises (MSME) in India do not have access to formal financing channels, said Aditya Birla Finance Chief Executive Rakesh Singh. "The partnership with Paytm also creates the opportunity for ABFL to penetrate the unbanked MSME space faster."

 Providing brochures & leaflets for promotion to IFAs to maintain transparency They provide the materials to advisors on monthly basis which shows that the financial companies want their financial advisors to be updated about their offerings throughout the year. This is a way of promoting their offerings to IFAs as well as to the client

38

Marketing Strategies of competitors of Aditya Birla finance ltd

 NJ WEALTH The present marketing strategies of mutual fund products adopted byNJ Indiainvest can be divided into following heads:

1. Direct marketing

2. Selling through Intermediaries

3. Other channels

DIRECT MARKETING This constitutes 20 % of the total sales of mutual funds. Some of the importanttools used in this type of selling are: Personal Selling In this case, the customer support officer at particular branch takes appointmentfrom the potential prospect. Once the appointment is fixed, he informs the managementexecutives in marketing department to meet and give him all details about the schemes being offered by the fund. Telemarketing In this type of marketing, the database of the people is to be picked from thetelephone directory or other commercial sources randomly. Sometimes people belongingto particular profession are also contacted through phone and informed about funds.

39

Advertisements The

Asset

Management

Companies

advertises

the

particular

schemes

innewspaper, magazines, televisions and radios at regular interval of time. Now a day, mutual fund NFOs (IPO’s) are coming at every two months' which are heavily advertisedthrough these mediums. The purpose is to keep investors aware about the schemes offered by funds and their performance in recent past. Hoardings and banners In this type of marketing' the various funds advertise their schemes throughhoardings and banners, which are kept at important locations of the city where themovement of the people is very high.

SELLING THROUGH INTERMEDIARIES

Intermediaries include Distributors or Agents or Brokers who contribute in greatmanner to increase the sales of mutual funds schemes. These people or distributors are indirect touch with the investors. Most of them are also involved in selling shares and other investment instruments. They are completely associated with financial markets and hence perform a good job to convince the investors to invest in mutual funds. On the other hand. customers prefer to put trust on those distributors who give them right information about the fund and keep them update with market conditions Regular meeting with distributors also plays vital role in collecting the sales of mutual funds. The Sales executives regularly meet these distributors and solve their requirements and complain from either service side or from customer side. The objectiveis to make a good business relation and work with co-operation because these distributorsor brokers contribute 70-80% of total sales of mutual funds.Sometimes special training sessions are also to be organized for the new agents or distributors. Training involves giving details about the scheme,' their investmentobjective' its performance in the market and the competitors’ schemes also.Sometimes big distributors have their own sub agents or sub brokers to increasetheir sales activities. 40

OTHER CHANNELS Apart

from

direct

marketing

and

intermediaries,

there

are

other

distributionchannels also developed by mutual funds. It includes banks and other financialinstitutions that are promoting these mutual funds schemes as per the regulations prescribed by SBI and RBI. In private as well as nationalized banks. there is a separatesection for mutual funds. They have their own executives with efficient sales force to promote the mutual fund schemes among their customers.

STALL ACTIVITY NJ uses a very common technique as its marketing techniques' i.e. Keepingstalls and booths at various fairs. At these stalls they try to get convince the peopleto invest in mutual funds and become an advisor. This is a widely used technique by major byNJ India Invest.

VAN ACTIVITY Another technique used byNJ Wealth is using a car for advertising. Mostly Maruti car is used for doing this work.

KHICHDI MEET Khichdi meet is one of the unique marketing techniques used byNj IndiaInvest. In this meet 10 to 15 partners are invited. This is a technique which makesthe partners feel their importance in the company and motivates them to work more and more.



Prudent Corporate

Single interaction point

41

Effective integration of different products and services for simplicity that deliver effective, dynamic solutions that work. Dedicated Relationship Manager for every Prudent Partner Single Service Point – Get/ Deposit Applications of All AMCs/ All schemes at Prudent Branch office. Query Handling - Single contact point for all queries across all AMCs/ All problems. SINGLE WINDOW - MULTIPLE SOLUTIONS Single Interaction Point Money through wisdom

Joint Calls Joint calls includes the calling the partners and informing them aboutvarious new schemes and keeping them aware about the market conditions. It also includes going to the partner and explaining him about the new schemes in themarket and where actually he can invest his money i.e. in what type of mutualfund he wants to invest and what is the amount. Sometimes the head alsoaccompanies the mutual fund advisory to do joint calls.

Client meets Client meets are arranged whenever it is required. There are differentmeets like meet for issuing of new mutual funds' a project visit in case of prudent corporate reality, meeting telling the partners about the conditions and new schemes whichare recently added. These meetings and gatherings are known as client meets.

Courier This is technique is also used for marketing by all financial institutions. Different brochures, templates,bookletsare sent on monthly or weekly basestothe places of partners. This keeps the partner update with what is going in the firm and market conditions. 42

Part VI ROLE IN THE ORGANIZATION & EXPERIENCE OF THE INTERNSHIP Chapter VI- Role in the Organization [6.1]Background of the study [6.2] Reason for the study [6.3] Research methodology [6.4] Finding & Interpretations [6.5] Recommendations/inferences

43

44

My role in the Organization  Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified financial services company in India offering end-to-end lending, financing and wealth management solutions to a diversified range of customers across the country.  Aditya Birla Finance Limited(ABFL), through its brand Aditya Birla Wealth Management, offers a range of solutions for wealth management and distribution. It also offers third party products like company deposits, mutual funds, structured products, alternate investments and property services.  I was assigned as intern in marketing department of Aditya Birla wealth management which comes under ABFL and my mentor wasNamrata Ginwala – Deputy Chief Manager (Marketing).  So during my Summer internship I had to first get complete knowledge of the functioning of the department so portfolio of ABWM was given to me and I was introduced to some people to get information from them to get proper understanding of the work.  The wealth management has different sub department which deals with different target groups such as wealth HNIS/UHNIS, Business partner groups, Corporate & Treasures services.  So

I

was

given

a

project

during

my

summer

internship

as

CompetitorResearchof Marketing content of BPG business whereI had to analysis and do a research on marketing strategies and content used by the competitors of the Aditya Birla Finance Ltd.

45

 So the business partner groups are basically the link between the Aditya Birla company and clients. BPG are generally independent financial advisors so my job was to interview such IFAs and to get an understanding of their preferences.  This research was also targeted to get a comparative analysis of the competitors’ strategies and ABFL to understand where ABFL was lacking in the area of marketing and the reason of shifting of IFAs from ABFL ‘s Favour.  This project helped me to put my skills and knowledge in actual practise by interacting with different IFAs and also to understand the steps involved in a research.

46

Background of the study

1. Aditya Birla Finance Limited (“ABFL”) is among the leading well-diversified financial services company in India offering end-to-end lending, financing and wealth management solutions to a diversified range of customers across the country. 2. So, under ABFL comes Wealth management which offers personalized solutions to the clients and partners up with them at every step of the way on the road to financial well-being. 3. Wealth management has different sub department which deals with different target groups such as wealth HNIS/UHNIS, Business partner groups, Corporate & Treasures services. 4. So, the business partnership group has distribution partners who are agents who serves as a link between the Aditya Birla finance limited company and clients. 5. IFAs play a crucial role as they are the one who are in direct contact with the clients by providing them suggestion and helping to fulfil complex financial needs of the clients by their expertise and knowledge. 6. As the IFAs focus on building relationships that’s responsive, attentive, and personalwiththeclients. So, they can get better understanding of the client’s situation. 7. So, the financial institutions should take a keen interest to maintain good relation with IFAs by being up to date with them and providing them all the necessary information which is required by the IFAs. 8. As there is an intense competition between the financial companies and different types of marketing strategies are adopted in order to tie up with many financial advisors as possible. So, to analysis such competitor’s marketing strategies 9. The main motive is get in depth understanding of various Marketing strategies used by competitors of Aditya Birla Finance ltd as they noticed an shift of number of IFAs from the favour of ABFL to such Competitors.

47

The Reason for the study-

Shifting of IFAs from Aditya Birla Finance ltd

First, what is IFAs?

Independent Financial Advisers or IFAs are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products from the whole of the market. The term was developed to reflect a United Kingdom (UK) regulatory position and has a specific UK meaning, although it has been adopted in other parts of the world, such as Hong Kong. The term is commonly used in the United Kingdom where IFAs are regulated by the Financial Conduct Authority (FCA) and must meet strict qualification and competence requirements.

Typically an Independent Financial Adviser will conduct a detailed survey of a client’s financial position, preferences and objectives; this is sometimes known as a ‘factfind’. The adviser will then recommend appropriate action to meet the client's objectives; and if necessary, recommend a suitable financial product to match the client’s needs.

Individuals and businesses consult IFAs on many matters including investment, retirement planning, insurance, protection and mortgages (or other loans). IFAs also advise on some tax and legal matters. So as IFAs are the link between Aditya Birla Finance ltd and their clients and recently there were some number of IFAs shifting from favour of Aditya Birla finance ltd to the competitors i.e. Nj wealth & prudent corporate. So the Project work was given to me as a part of my internship where I have to interview IFAs to get a better understanding of their preferences and on what basis they choose the financial institution which whom they want to collaborate.

48

Research methodology

 Research Objectives 

To analysis & understand the Competition faced by financial companies.



To get insights about the competitor’s offering to the financial advisors.



To understand financial advisor’s preferences and their relationship with different financial companies.



To find out what marketing strategies are adopted by different financial companies to get competitive edge over its competitors.

 Research plan 

Sample plan

Sample unit-Financial advisors Sampling method-Convenient sampling



Research design

Primary-Questionnaire interview Descriptive research and Explanatory research

49

Findings & Interpretation of data 

The most of the sampled financial advisors have been working as an financial advisors for 6 to 8 years. The advisors were mostly working in a corporate company before starting their advisory services company. As the advisors said they prefer an independent working environment compared to corporate working environment.



Advisors

use

their

tie

up

companies’websites

such

as

www.prudentcorporate.com&www.njwealth.in for their transactions.



Some of the advisors prefer client satisfaction and providing valuable services to them the most while there were also some advisors who prefer profitability more.



The financial advisors mostly use comprehensive approach for their clients so they prefer to tie up with such financial companies which helps the financial advisor to understand all the aspects of their client’s financial position.

50

1. Which marketing materials do they provide?

RESPONSE Turorials 6% Whatsapp posts 6% Emailer 20%

Company brochures 49%

Leaflets 19%



The materials provided by financial companies were mostly brochures and leaflets while for some of the advisors also received mailers and WhatsApp posts

2. How often do they provide such materials?

RESPONSE

Anually 21%

Quarterly 16%

Periodically during campaigns 1%

Monthly 62%

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

They provide the materials to advisors on monthly basis which shows that the financial companies want their financial advisors to be updated about their offerings throughout the year.

3. Is the materials customizable like can they add name or brand logo on it?

RESPONSE

YES 28%

NO 72%



The response for customization of such materials were mostly negative so it shows that the financial institutions prefers to not allow the IFAs to customize their Booklet.

4. How does the materials is sent to you? 1.Hardcopy 2. Softcopy

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RESPONSE HARDCOPY 14%

SOFTCOPY 86%



The materials were mostly given in the form of softcopy to most of the advisors and very few are received in form of hardcopy which shows that the financial company prefer to give softcopy over hardcopy due to its convenience of exchange.

5. Are the materials? I)Free of cost as you have to subscribe ii) Additional money is charged

RESPONSE

ADDITIONAL CHARGE 11%

FREE OF COST 89%



The advisors receive the materials for free of cost by logging on their websites as a subscriber. 53

6. Do you think co-branding is important?

RESPONSE NO 15%

YES 85%



The advisors feel co-branding is very important but they said not all the companies do co-branding but they prefer when there tie up companies co brand with them.

7. Do you pass off the materials to your clients? If yes, which materials do u pass?

RESPONSE

NO 24%

YES 76%



The advisors only pass off materials such as brochures and leaflets to their clients not all the materials they receive from the financial companies. Passing off the materials has also helped the financial advisors to gain their client’s interest. 54

Recommendation /Inferences 

The advisors prefer their material to be in softcopy for easy accessibility so it is recommended that the materials are available in softcopy form and the advisors should be given such marketing materials on monthly basis so they are updated about the offerings.



The advisors feel co-branding is very important so it shows that advisors prefer financial companies which co-brand with them.



Most of the advisors does not disclose all materials to their clients which might be a downfall for the clients so advisors should be encouraged to pass most of the materials to the client.



One of the competitors also have a dedicated online portal designed to provide marketing support. It has marketing products available such as banners, booklets, flyers, stationery, newsletter, personalized products, SMS manager.



One of the competitors’ strategies is to provide personalized services to different category of business associates such as client desk for clients and partner desk support for partners which has more edge over client support desk.

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Challenges/Limitations The challenges that I faced during the starting of my internship was it was difficult to adapt to the environment as a being a college student it was all new for me the corporate working lifestyle The challenges faced during my Internship project are as following as it becomes essential to figure out the various constraints that I underwent during the study. The following points in this direction would add to our total deliberations: -

 Due to confidentiality with their partner companies, some IFAs were not open to give some details.

 Lack of time is the basic limitation in the project.  Some IFAs refuse to cooperate with the queries.  Some IFAs gave biased or incomplete information regarding the study.

 Lack of proper information and experience due to short period of time .  Some IFAs did not answer all the questions or do not have time to answer.

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Conclusion 

The Summer internship at Aditya Birla Finance Ltd is really full of experiences and learning.



Firstly, it was a great experience to work with a world class as it was my first step into the corporate world.



It was an eye-opener for me as it provided me an opportunity to have practical knowledge of market.



It was very interesting to interact with the IFAs and know from them what they actually expect from Aditya Birla finance Ltd.



Distribution channel of the company should be strong because any problem in distribution channel make product and company suffer.



Due to market research project I have got an opportunity to see different marketing strategies and content used by Financial Institutions to attract IFAs in order to increase the number of clients.



I have learnt about how being transparent with the IFAs and giving them some liberty to customize the marketing content will have positive impact on IFAs.



When I saw my seniors doing each and every kind of work than I came to know how much important is each kind of work.



Experience & learning’s through Marketing dept.



I also learned how much values & cultures of the organization impacts productivity



Organizing your work and put a timeline make your work easier.



You can learn by observing more than asking.

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BIBLIOGRAPHY

 Avadhani, V.A., ‘Marketing of Financial Services’, Himalaya Publishing House, Mumbai, 2008  Narasimham.M (1998), “Report of the committee on financial sector reforms”, A Nabhi publication, Publishing house, Delhi, p349  Sen, Kunal and R.R.Vaidya(1997), “ The process of financial liberalization in india”, Oxford New Delhi, p.114  Lee, J., Marlowe, J. (2003), "How consumers choose a financial institution: decision- making criteria and heuristics", International Journal of Bank Marketing, Vol. 21 No.2, pp.53-71.  Srivastava, R.M. and Divya Nigam, ‘Management of Indian Financial Institutions’, Himalaya Publishing House, Mumbai, 2010.  Bhole, L.M. and Jitendra Mahakud, ‘Financial Institutions and Markets – Structure, Growth and Innovations’, Tata McGraw Hill Education Private Limited, New Delhi, 2010.

WEBSITES  www.adityabirlacapital.com  https://economictimes.indiatimes.com/industry/banking/finance/aditya-birlafinancial-services-to-enter-infrastructure-financing/articleshow/10481329.cms  https://bestmediainfo.com/2017/11/aditya-birla-capital-s-dearmoney-campaignencourages-people-to-have-a-conversation-around-money/  https://www.livemint.com/Companies/kIxriIVcQjYv2w6AWpGm8J/The-rise-ofAditya-Birla-Financial-Services.html  https://www.techmagnate.com/aditya-birla-finance-ppc-case-study.html  https://talentedge.in/blog/evolution-finance-digital-india/ 58

ANNEXURE

Questionnaire for IFAS

1. How long has it been since you have started your Financial advisory business? 2. Before starting, did you work in any corporate company?

3. If yes then, where were you working previously? 4. What made you to start your own IFAs? 5. How is the experience has been as you have shifted from a corporate working environment to your own independent working Environment?

6. What are your areas of specialization?

7. On what basis do you segment your clients & which segment is mostly preferred by you? Age group wise

Job wise

Ticket size wise

Lifestyle wise

8. What approaches do you use while giving advices to your clients? 9. Do you use any online portal for easy accessing of transaction?

10. What kind of commission structure do you follow?

11. Currently with which companies do you have tie-ups?

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12. How did they approach you?

13. Which materials do they provide from the following? Company brochures

One pager

Product information

Campaign materials

Emailer

Articles

Trading materials

Tutorials

WhatsApp posts

Any special websites

Contests-

Others-

14. How often do they provide such materials? Monthly

Quarterly

Annually

Periodically during campaigns

15. How does the materials is sent to you? 

Hardcopy



Softcopy

16. If softcopy is it available online? 17. Is the materials? i) Free of cost as you have to subscribe iii)Additional money is charged 18. Is the materials customizable like can they add name or brand logo on it? 19. If so, then which all materials are customizable? Company brochures

One pager

Product information

Campaign materials

Emailer

Articles

Trading materials

Tutorial

WhatsApp posts

Any special websites

Contests

Others60

20. Do you run any co-branded campaigns with the companies, if so can you share some details?

21. Does the company run any contests for you, if so what type of contest?

22. Do you pass off the materials to your clients too?

23. If yes, then which materials do you pass off to your clients? 24. What impact does that have on your client like does that 

Help to retain your clients



Increase your client’s willingness to invest

25. What are your Future plans for your company? 26. Do you want to expand your business?

27. If yes, then how do you plan it?

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