A SUMMER TRAINING PROJECT REPORT ON

“Financial performance of Pu Select in comparison to Reebok”

Submitted in partial fulfillment of the requirement for

Master of Business Administration (MBA)

Submitted To: Submitted By:

Company Guide’s Name NISHANT DRALL

Designation 02620803916
2016-18

BHAGWAN PARSHURAM INSTITUTE OF TECHNOLOGY

ROHINI, SECTOR-17, DELHI

Affiliated to Guru Gobind Singh Indraprastha University

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DECLARATION

I, NISHANT DRALL hereby declare that the project report entitled “FINANCIAL

PERFORMANCE OF PU SELECT IN COMPARISON TO REEBOK” is an authenticated

work carried out by me under the guidance of Dr. MANI MANJRI for the partial fulfillment of

the degree of Master of Business Administration.

This work has not been submitted for similar purpose anywhere else for the award of any degree

or diploma.

NISHANT DRALL

02620803916

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ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to BHAGWAN PARSHURAM INSTITUTE OF

TECHNOLOGY, GGSIP University, New Delhi for imparting us very valuable professional
training in MBA.

I pay my gratitude and sincere regards to Dr. MANI MANJRI, my project Guide for giving me
the cream of her knowledge. I am thankful to her as she has been a constant source of advice,
motivation and inspiration. I am also thankful to her for giving her suggestions and
encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library
staff for providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the project
and providing me an environment which enhanced my knowledge

Signature of the student with date

NISHANT DRALL

02620803916

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 EXECUTIVE SUMMARY

This Project named as “FINANCIAL PERFORMANCE OF PU SELECT IN

COMPARISON TO REEBOK.”, is carried out at Anand polymers a footwear company in
Delhi& all over India.

The Select group is one of the India’s leading business conglomerates. The company is
concerned with providing footwear items for all kinds age group. With over a decade of
experience in footwear industry. Select is synonymous with quality footwear products for the
whole family ranging from casual to formals; from daily wear to sportswear and an elegant
collection for ladies to fun range for kids.

Apart from other footwear companies which only focuses on production matters the Select
Company apart from production matter also emphasis on R&D (RESEARCH AND
DEVELOPMENT DEPARTMAENT) and acquiring latest technology in order to capture
large market share.

I have done the comparison of pu select with Reebok on financial basis, I have compared the
performances of both these company on two year basis & also with their profit & loss
account.

I have also tried to find out the differences in sales done in last five year.

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TABLE OF CONTENTS

CHAPTERS PARTICULARS PAGE

1. Introduction. 6.

2. Company Profile. 8-32.

3. Literature Review. 34-41.

4. Research methodology. 42-47.

5. Data analysis and 48-70.

interpretation.

6. Findings. 71.

7. Recommendations. 72.

8. Conclusions. 73.

9. Bibliography. 74.

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 CH – 1: INTRODUCTION
A shoe is an item of footwear intended to protect and comfort the human foot while doing
various activities. Shoes are also used as an item of decoration. The design of shoes has varied
enormously through time and from culture to culture, with appearance originally being tied to
function. Additionally, fashion has often dictated many design elements, such as whether shoes
have very high heels or flat ones. Contemporary footwear varies widely in style, complexity and
cost. Basic sandals may consist of only a thin sole and simple strap. High fashion shoes may be
made of very expensive materials in complex construction and sell for thousands of dollars a
pair. Other shoes are for very specific purposes, such as boots designed specifically for
mountaineering or skiing.
Traditionally, shoes have been made from leather, wood or canvas, but are increasingly made
from rubber, plastics, and other petrochemical-derived materials.
Though it has evolved over hundreds of thousands of years in relation to vastly varied terrain and
climate conditions, the human foot is still vulnerable to environmental hazards such as sharp
rocks and hot ground, against which, shoes can protect.
Shoemaking became more commercialized in the mid-18th century, as it expanded as a cottage
industry. Large warehouses began to stock footwear in warehouses, made by many small
manufacturers from the area.
Until the 19th century, shoemaking was a traditional handicraft, but by the century's end, the
process had been almost completely mechanized, with production occurring in large factories.
Despite the obvious economic gains of mass-production, the factory system produced shoes
without the individual differentiation that the traditional shoemaker was able to provide.
The basic anatomy of a shoe is recognizable, regardless of the specific style of footwear.

All shoes have a sole, which is the bottom of a shoe, in contact with the ground. Soles can be
made from a variety of materials, although most modern shoes have soles made from natural
rubber, polyurethane, or polyvinyl chloride (PVC) compounds. Soles can be simple — a single
material in a single layer — or they can be complex, with multiple structures or layers and
materials. When various layers are used, soles may consist of an insole, midsole, and an outsole.

6
The insole is the interior bottom of a shoe, which sits directly beneath the foot under the footbed
(also known as sock liner). The purpose of insole is to attach to the lasting margin of the upper,
which is wrapped around the last during the closing of the shoe during the lasting operation.
Insoles are usually made of cellulosic paper board or synthetic non woven insole board. Many
shoes have removable and replaceable footbeds. Extra cushioning is often added for comfort (to
control the shape, moisture, or smell of the shoe) or health reasons (to help deal with differences
in the natural shape of the foot or positioning of the foot during standing or walking).
The outsole is the layer in direct contact with the ground. Dress shoes often have leather or resin
rubber outsoles; casual or work-oriented shoes have outsoles made of natural rubber or a
synthetic material like polyurethane. The outsole may comprise a single piece, or may be an
assembly of separate pieces, often of different materials. On some shoes, the heel of the sole has
a rubber plate for durability and traction, while the front is leather for style. Specialized shoes
will often have modifications on this design: athletic or so called cleated shoes like soccer,
rugby, baseball and golf shoes have spikes embedded in the outsole to improve traction.
The midsole is the layer in between the outsole and the insole, typically there for shock
absorption. Some types of shoes, like running shoes, have additional material for shock
absorption, usually beneath the heel of the foot, where one puts the most pressure down. Some
shoes may not have a midsole at all.
The heel is the bottom rear part of a shoe. Its function is to support the heel of the foot. They are
often made of the same material as the sole of the shoe. This part can be high for fashion or to
make the person look taller, or flat for a more practical and comfortable use.[39] On some shoes
the inner forward point of the heel is chiselled off, a feature known as a "gentleman's corner".
This piece of design is intended to alleviate the problem of the points catching the bottom of
trousers and was first observed in the 1930s.
The upper helps hold the shoe onto the foot. In the simplest cases, such as sandals or flip-flops,
this may be nothing more than a few straps for holding the sole in place. Closed footwear, such
as boots, trainers and most men's shoes, will have a more complex upper. This part is often
decorated or is made in a certain style to look attractive. The upper is connected to the sole by a
strip of leather, rubber, or plastic that is stitched between it and the sole, known as a welt.
Most uppers have a mechanism, such as laces, straps with buckles, zippers, elastic, velcro straps,
buttons, or snaps, for tightening the upper on the foot. Uppers with laces usually have a tongue
that helps seal the laced opening and protect the foot from abrasion by the laces. Uppers with
laces also have eyelets or hooks to make it easier to tighten and loosen the laces and to prevent
the lace from tearing through the upper material. An aglet is the protective wrapping on the end
of the lace.
The vamp is the front part of the shoe, starting behind the toe, extending around the eyelets and
tongue and towards back part of the shoe.
The medial is the part of the shoe closest to a person's center of symmetry, and the lateral is on
the opposite side, away from their center of symmetry. This can be in reference to either the
outsole or the vamp. Most shoes have shoelaces on the upper, connecting the medial and lateral
parts after one puts their shoes on and aiding in keeping their shoes on their feet. In 1968, Puma
SE introduced the first pair of sneakers with Velcro straps in lieu of shoelaces, and these became
popular by the 1980s, especially among children and the elderly.

7
CH-2 COMPANY’S PROFILE

• ABOUT THE COMPANY

The Select group is one of the India’s leading business conglomerates. The company is
concerned with providing footwear items for all kinds age group. With over a decade of
experience in footwear industry. Select is synonymous with quality footwear products for the
whole family ranging from casual to formals; from daily wear to sportswear and an elegant
collection for ladies to fun range for kids.

Apart from other footwear companies which only focuses on production matters the Select
Company apart from production matter also emphasis on R&D (RESEARCH AND
DEVELOPMENT DEPARTMAENT) and acquiring latest technology in order to capture
large market share.

We have in house manufacturing facilities as well as our company do some kind of out
sourcing in order to meet demand of the market.

Each Select product is the product of relentless quest for quality, high level of workmen ship
and a true commitment to a customer satisfaction. At select we strive to listen to the
customers in their local market and identify their footwear needs and then provide products
that exceed the customer’s expectations in terms of quality, style , comfort and value.

Select has carved a special niche in the Indian footwear market and in the hearts of its
customers throughout the country.

FORMATION
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• It is a brand of shoes.

• It was founded in 2003 in India.

• Its CEO is AJAY ANAND.

• Its net sales of 5 CRORES.

• In the commencement of the business there was a showroom for selling shoes as the
demand of products rises they commenced their own shoe manufacturing business with
the brand name of SELECT

• LOGOS OF THE COMPANY

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Vision of the company

Select company works with the vision to nurture a financially strong, growth oriented group
through leadership and innovation and to widen future options by entering newly emerging
footwear markets where the potential seems enormous.

We work with motive that there must be development of both organization as well as the
members of the organization by providing them various of development opportunities like
training etc. so that it helps in getting quality of employees which helps in effectiveness of
the organization.

We as a group shall continue to seek opportunities where we can leverage our resources and
skills.

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Mission of the company

At SELECT our mission is to work together, respecting each other, our skills and knowledge to:

 Build higher quality of footwear products and provide services related to it.
 Continually strive to enhance customer satisfaction.
 Improve customer relation and loyalty.
 Gain a competitive advantage and larger market share by analyzing the business
environment.
 Elimination of scrap, waste, defects, and errors.
 To create a great place to work.
 To provide goods better than the expectations of the customers.
 No compromise in outsourcing the footwear work.
 Be welcomed in the communities in which we operate.

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 Values of the company
How we accomplish our mission is as important as the mission itself. Fundamental to the
success of the company are the three basic values.

 Teamwork
 Learning and innovation
 Energy and passion

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Products and services of Shoe Company select
Following are some products of SELECT:

Step “n” toes

The Step and toes and SELECT are the article or product line of ANAND POLYMERS
is concerned with the wide range of footwear products for kids only. Some features of
these products are :

 They are very light in weight as they are made for the kids
 They are highly durable as they didn’t torn out while kids playing any sport
 The base or Sole of these sandals are made of material called PU.
 They are made with Rexene which makes them more comfortable.
 They give cushioning effect due to their materials.

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 FLORENCE

The FLORENCE is the article or product line of SELECT is concerned with the wide
range of footwear products for Teenage girls and ladies only. Some features of these
products are:

 These products are concerned with ladies footwear so that they are quit fashionable.
 Apart from fashionable they are quit comfortable.
 The sole of these line of products are made of PU and material called EVA.
 They are very light as their sole are made of EVA material.

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YANKEES

The YANKEES are the article or product line of SELECT is concerned with the wide
range of footwear products for Teenage boys and also for adults men only. Some features
of these products are :

 They are very light in weight so that it helps in sport activities

 They are highly durable as they didn’t torn out while kids playing any sport
 The base or Sole of these sandals are made of material called PU.
 They are made withering called PATENT which makes them more comfortable.
 They give cushioning effect due to their materials.

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PU-SELECT

The PU-SELECT are the article or product line of SELECT is concerned with the wide
range of footwear products for adult’s men only. They looks quite formal and are widely
used in various types workers of an organization .Some features of these products are :

 They are very light in weight so that it helps in sport activities

 They are highly durable.
 The base or Sole of these sandals are made of material called PU.
 They are made withering called MOUKA which makes them more comfortable.
 They give cushioning effect due to their materials.
 Apart its sole the insole of its sandal are also build of PU material.

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 Competitor’s profile
About the company

Early history
In 1890 in totting ton, a small village between Bury and Rams bottom, Joseph William Foster
was producing and selling regular running shoes when he came up with the idea to create a
novelty spiked running shoe. After his ideas progressed, he joined with his sons and founded a
shoe company named J.W. Foster and Sons in 1895.
The company began distributing shoes across the United Kingdom and was worn by British
athletes in the 1924 Summer Olympics held in Paris. In 1958, two of the founder's grandsons,
Joe and Jeff Foster, renamed the company "Reebok," having found the name in a South African
dictionary won in a running race by Joe Foster as a boy. The name is the Afrikaans for the grey
Reebok, a type of African antelope.
In 1979, at the Chicago International Sneaker Trade show an American businessman, Paul
Fireman, took notice of Reebok. Fireman was working for an outdoor sporting goods store and
negotiated a deal to license and distributes the Reebok brand in the United States. The division
was called Reebok USA Ltd. Later that year, Fireman introduced three new shoes to the market
at $60. By 1981, Reebok reached more than $1.5 million in sales.
1980s-1990s
In 1982, Reebok debuted the Reebok Freestyle aerobics shoe, the first athletic shoe designed for
women. Fitness professional Gin Miller became the face of "Step Reebok," the
company's aerobics fitness campaign and program. The following year, Reebok's sales were $13
million.
The company began expanding from tennis and aerobics shoes to running and basketball
throughout the mid to late 1980s, the largest segments of the athletic footwear industry at the
time. In 1985, Reebok had its initial public offering on the Exchange under the ticker symbol
RBK.

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In 1986, Reebok switched its logo from the Union Jack flag it had since its founding, to the
vector logo with an abstract Union Jack streak across a race track. The switch signaled the
transition of the company into a performance brand as it began licensing deals with professional
athletes in the NBA and NFL.
During the 1980s, Reebok began introducing sports clothing and accessories, along with a new
line of children's athletic shoes (called 'Weeboks') at the end of 1980. By the end of the year,
Reebok's sales were about $1 billion. One of the company's most signature technologies,
the Reebok Pump, debuted in 1989 with more than 100 professional athletes wearing the
footwear by 1992, including Shaquille O'Neal.
Reebok named Carl Yankowski president and chief executive officer of the brand in 1998,
replacing former president Robert Meers. Yankowski stepped down one year later to accept an
executive position at another company. Reebok chairman and CEO Paul Fireman took over as
president for the first time in 12 years.
2000s-present
Reebok signed Venus Williams after winning singles titles at Wimbledon and the 2000 Summer
Olympics. In December 2000, Reebok signed a 10-year licensing agreement with the NFL for
the exclusive rights to manufacture and sell NFL licensed merchandise, including uniforms and
footwear, for all 32 teams.
In 2001, Reebok became the exclusive apparel outfitter for the 29 teams in the NBA, and
16 WNBA teams for ten years beginning in the 2004-2005 season. The deal also added the
Reebok vector logo to the 2004 U.S. Olympic basketball team's uniforms. Later in 2001, Jay
Margolis was named as Reebok's president and COO. After launching retail flagship stores in
China, Dhaka, London, Los Angeles, New York, Philadelphia and Tokyo, Margolis resigned in
October 2004. Fireman took over as president after signing a new long-term employment
agreement with the Reebok board of directors.
Reebok acquired official National Hockey League sponsor CCM in 2004. The company began
manufacturing ice hockey equipment under the CCM and Reebok brands. Reebok phased out the
CCM name on NHL authentic and replica jerseys, using the Reebok logo since 2005. CCM
became Reebok-CCM Hockey in 2007. Reebok will be moving most of its hockey equipment
lines to CCM through 2015.

Adidas acquisition
In August 2005, Adidas acquired Reebok as a subsidiary, uniting two of the largest sport
outfitting companies, but maintaining operations under their separate brand names. Adidas
acquired all of the outstanding Reebok shares and completed the deal valued at $3.8 billion.
Following the acquisition, Adidas replaced Reebok as the official uniform and apparel supplier
for the NBA in 2006with an 11-year deal that includes the WNBA and replica jerseys and warm-
up gear.

18
Reebok named Paul Harrington president and CEO of the company in January 2006, replacing
Paul Fireman who was acting president since 2004. Harrington joined the company in 1994 and
was Reebok's senior vice president of global operations and chief supply chain officer.

Reebok Delta Logo

In 2010, Reebok announced its partnership CrossFit, a fitness company and competitive fitness
sport, including sponsoring the CrossFit Games, opening CrossFit studios, and introducing a line
of co-branded footwear and apparel for fall 2011. In 2011, Reebok debuted the CrossFit delta
symbol on the brand's fitness apparel line. In 2013, Reebok announced another fitness
partnership with Les Mills, a group fitness and team training program in 80 countries in more
than 15,000 studios. The agreement included Reebok footwear and clothing integration into Les
Mills' fitness programs and media marketing. By July 2013, the red delta sign began showing up
on all of Reebok's fitness collections. The brand announced it was phasing out the vector logo
and replacing it with the delta sign, making it the company's second logo change in more than
120 years. The delta symbol represents the three pillars of positive self-change including mental,
physical and social, as Reebok increases its presence in the fitness industry with yoga, dance,
aerobics and CrossFit.
REEBOK ‘S OFFICES
Reebok's parent company, Adidas, is headquartered in Germany, while the Reebok world
headquarters remains located in Canton, Massachusetts. The Reebok-CCM Hockey offices are
located in Quebec, Canada and Stockholm, Sweden. Reebok EMEA (Europe, Middle East, and
Africa) has its regional office in Amsterdam, Netherlands. The company also has additional
regional offices located in Panama City (Reebok Latin America), Shanghai (Reebok Shanghai
International Commerce Centre), Singapore, Taikoo Shing, and Toronto.

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REEBOK’s head office in Canton, Massachusetts, U.S

Reebok’s Vision, Mission, objectives

Fulfilling Potential
Reebok is dedicated to providing each and every athlete - from professional athletes to
recreational runners to kids on the playground - with the opportunity, the products, and the
inspiration to achieve what they are capable of. Everyone has the potential to do great things. As
a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and
employees fulfill their true potential and reach heights they may have thought un-reachable

Always Challenge and Lead through Creativity

At Reebok, they see the world a little differently and throughout their history have made their
mark when they've had the courage to challenge convention. Reebok creates products and
marketing programs that reflect the brand's unlimited creative potential.

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 Reebok’s products & services:
Reebok designs, manufactures, distributes and sells sport and fitness apparel, footwear, and
accessories. The brand has also collaborated with other companies to produce fitness equipment
and workouts.
1. Reebok Sunglasses

2. Reebok Watches

3. Reebok Shoes

4. Reebok Track Suits

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5. T Shirts

6. Reebok bags

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 Swot analysis of both the companies:
The SWOT-analysis highlights how internal factors such as strength and weaknesses or external
factors as opportunities and threats are affecting the organization and its decision-making.

Swot analysis of ‘SELECT’

‘S’ (strength) of ‘select’

Some are the strength of the SELECT shoe company:

 Having good brand image among the customers of northern India

 Having large market share on the sandals based footwear market
 Having good market on kids and ladies footwear products
 Use of new technology advancement
 Great emphasis on R&D DEPARTMENT
 Having a good channel of distribution
 Use of mixed way of production than the labour intensive technique of production

“W” weakness of ‘select’

Some are the weaknesses of the SELECT shoe company are:

 Having less market share on shoe products

 Having no market share on sports footwear products
 Having less customers on age group of adults customers
 Target only small market of the footwear industries
 Financing problems
 Outsourcing of their work leads to reduction in quality of products
 Limited number of distributers
 Their policies are highly rigid

“O” Opportunities ‘select’

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 Can make new type of footwear products based on transfer printing as it is a new concept
 Try to hit school footwear products as less footwear companies are engage in it.
 Can use Rubber-based soles as they high in demand in current markets
 Try to hit market of teenage customers

“T” Threats of select

Some are threats which may affect the company:

 Local companies like Lancer shoe , today shoes etc. can affect the market of select
 Need to diversify their range of products
 Need to focus on teenage age group market

Swot analysis of ‘Reebok’

Strengths

Since 1995 the organization is listed as a stock corporation and benefits from the adjusted
capital. This enables the company to invest more capital in innovated and effective technologies
to advance unique products. Adidas is by now the second largest manufacturer of sporting goods
and worldwide known for top-quality products. This amount of capital enables more investments
in marketing and promotion. The company uses the image of its brand and the available amount
of capital to sponsor many sports events such as soccer championships, Olympic Games or
Paralympics and many more. In 2012 Adidas will be the official sportswear-partner of the
Olympic Games and the Paralympics in London. The company is going to provide the volunteers
and the athletes with its products and features the merchandising as well as marketing rights.

Additionally the company shows an efficient working network between many varied facilities
and the high qualified personnel. It enables a 24/7 real-time work, for example designing a new
article or managing a new project. The time difference and its network make it possible to work
in Germany, America and Japan 24 hours on the same project. Furthermore Adidas has
“Workplace Standards” to guarantee an efficient supply chain and top quality products. These
“Workplace Standards” are based on the human- and employee-rights-conventions of the
International Labour Organization (ILO) and the UN. (www.Adidas-group.com). In order to
enhance the manufacturing process, the organization proceeded and developed training programs
and workshops for the suppliers.
1. Reebok is amongst the top 3 largest seller of athletic footwear and athletic apparel in the
world.

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2. Reebok brings out the perfect combination of technology and fitness each year in its products.
3. Products are made not only in the premium range but also in mid-range.
4. The Reebok value store targets lower income groups thus categorizing its products for each
class of society.
5. The brand has been endorsed by many sports stars and movie celebs globally
6. Reebok operates through a network of Department stores, Sporting goods, Specialty retailers,
Company-owned stores, Licensees thus having a better reach.
7. Reebok sponsors international teams, clubs, players from all sports like football, cricket,
basketball, motorsport, etc.

Weaknesses

In 2006 Adidas took over the Reebok International ltd. to gain more shares in the US-market.
Since that time Reebok represents a problematic part of Adidas. Due to the situation caused by
the financial crisis in 2007/2008 the company had to fight against lower incoming orders.
Reebok lost 29% of the orders on the North American market as well as a two-digit deficit was
registered on the Asian and European market in 2009. However Adidas had to help out
financially its subsidiary in the past and therefore reduced the advanced profit.

Another weakness are the manufacturing facilities of the company. As Adidas is producing in
“low-wage countries” it is very difficult to guarantee top-quality products. The organization
engages 67% of its plants in Asia because the shoes cannot be produced mechanically and 90 %
of the production process has to be done by employees.

1. The brand faces tough problem from fake and duplicate sales
2. Being a popular brand means any controversy affects brand image considerably.

Opportunities

As Reebok experiments with new techniques like “miCoach”, a new program for optimizing the
training-process, the company follows the trend to combine sporting-goods with electronic tools
like heart-frequency-meter or Smartphone’s. Following this trend and developing a right
marketing strategy means that the organization has the possibility to enhance its exchange.

1. Reebok can expand its kids section.

2. Lifestyle section can be expanded and can be given more focus.
3. More tie-ups with sports academies and schools worldwide.

25
Threats

There are a lot of competitors in the sporting-goods market, but there is one with high risk,
NIKE. NIKE is the market leader in America and Asia and has the same products as well as the
same price range. But the maximum risk is the product counterfeiting in Asia. These
organizations are producing the same goods, with much lower quality and selling them cheaper
than Adidas. The customers with less money would buy the fake articles.
1. Competition by Chinese market can be perceived as a threat.
2. Fluctuating international currencies can mean losses to the company

26
KEY COMPETITOR OF ANAND POLYMERS

27
CHAPTER -3 LITERATURE REVIEW

Market Analysis:
The market size for footwear in India is estimated to be about Rs.19, 900/- crores. This sector is
poised to grow at a rate of 8-10 per cent. . The sportswear industry market size in 2010 was
estimated to be Rs. 3,500 crores with a CAGR at 18%. The footwear category includes formal,
semi-formal and sports shoes. It also includes sandals for men and women. 59 per cent of the
market is covered by men's segment, while the rest 41 per cent is covered by the women's
segment.
The market is dominated by unorganized sector with organized retail having an overall share of
20 per cent. The size of organized retail sector is expected to reach 25-30 per cent by 2015. In
the organized footwear sector, exclusive-brand outlets account for over 50 per cent of the
footwear market followed by multi-brand outlets at 28 per cent. The overall organized sector is
growing with more and more consumers preferring buying footwear from the retail outlets.
The key brands in India for footwear are NIKE, Adidas, Reebok, Red Tape, Bata, Liberty,
Woodland, M&B, Puma, Converse and Relaxo. Organized retail sports good market is
dominated by Reebok at 46 percent. Other major competitors to Reebok are Adidas, NIKE, and
Puma. The market share of these brands in organized retail is shown in Appendix 1.
India is the only market where Reebok is ahead of both NIKE and Adidas. In 2004, Reebok was
taken over by Adidas. So, the combined market share of Reebok and Adidas is 67%. Still Adidas
and Reebok continue to position their products independent of each other.2

Industry attractiveness
The Indian sports shoe industry is growing at a fast pace which makes it attractive for well-
established foreign sports shoe companies. A new company with no brand name and no
differentiating factors to bank upon will find it difficult to attain profitability and will be ousted
out of the industry by existing larger players. Overall the industry is unattractive for new players
with no pre-established brand name (but moderately attractive to foreign players with established
brand names.

Critical success factors

Brand name establishment: The brand name and brand strength is very important in the sport
shoes industry coupled with the market demand for branded products.
Quality control: Proper quality control is essential for footwear in general and sports shoes
specifically, to maintain existing customer base loyalty.
Economies of scope: Sport shoe manufacturers needs to have a diverse product line to cater to
various consumer segments, for e.g. running shoes, jogging shoes, basketball shoes, football
shoes etc. with various sub segments within these. The fixed costs of setting up a sports shoe

28
manufacturing unit can be spread over the multiple product lines which reduces the fixed cost
associated per item and thereby increases profit.
Innovation: Sports shoe companies need to innovate constantly and come up with design and
technological changes in shoes which are aimed at improving the consumer experience and
performance in an associated sport.
Economies of scale: The cost associated with production of a single item can be reduced by
increasing the production. This also acts as a critical competitive factor as the lowest cost
manufacturer becomes the cost leader in the industry.
Low Internal Cost: Companies need to minimize their internal costs while maintaining quality.
Customers in India are price sensitive and low internal costs can help manufacturers target Tier 2
and Tier 3 cities with lower price range of shoes.

Assumed cost of production for different footwear firm

Although the majority of costing sheets were collected or made in operational shoe
manufacturing companies, as promised their names will not be revealed either in this survey, or
at any later stage. Some countries (e.g. India, Mexico) supplied several costing examples from
different firms: in such cases the most complete ones were used.

In spite of the simple yet fairly exact specifications and instructions on cost structure, the
costing sheets received from twelve countries are far from being uniform. However, after
grouping cost components it was possible to establish a more or less uniform cost structure
which is compatible to most of the costing sheets received.

In case of Oxford men shoes only two specifications could not be used at all and one appeared
to be useful only for analyzing direct costs. Styles for which costing data were supplied are
similar: all uppers are made of full grain genuine leather, but soles vary from genuine leather to
PUR and PVC units.

Contrary to expectations only six costing sheets made for sports (athletic) footwear appeared to
be complete enough for the present survey. Here styles, constructions, upper and sole materials
vary considerably; therefore, the comparison of these six examples should be assessed with
special care.

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Chapter-4
Research methodology

Objectives and scope of the study

(1) . To study about the financial position of Anand polymers.

(2) . To study the balance sheet of the company.
(3) . To study about the competitors of the select with Reebok.
(4) . To analyze the factors which influence people to buy shoes?

Managerial usefulness of the study

The project tends to be useful as it contains all the required data that helps in finding out the
activities of the company.

Following are some factors which are covered under this project:

 Helps in finding out the performance of company in recent years.

 Helps in getting the knowledge of assets and liabilities of the company.
 Helps in understanding the cash flow statement of the company..
 Helps in finding out its position in sportswear sector.
 To calculate & compare all the ratios.

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What is a Research?
Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications. It is used to establish or confirm facts, reaffirm
the results of previous work, solve new or existing problems, support theorems, or develop new
theories. A research project may also be an expansion on past work in the field. To test the
validity of instruments, procedures, or experiments, research may replicate elements of prior
projects, or the project as a whole. The primary purposes of basic research (as opposed to applied
research) are documentation, discovery, interpretation, or the research and development (R&D)
of methods and systems for the advancement of human knowledge. Approaches to research
depend on epistemologies, which vary considerably both within and between humanities and
sciences. There are several forms of research: scientific, humanities, artistic, economic, social,
business, marketing, practitioner research, etc.

ACTION RESEARCH
The essentials of action research design follow a characteristic cycle whereby initially an
exploratory stance is adopted, where an understanding of a problem is developed and plans are
made for some form of interventionary strategy. Then the intervention is carried out (the "action"
in Action Research) during which time, pertinent observations are collected in various forms.
The new interventional strategies are carried out, and this cyclic process repeats, continuing until
a sufficient understanding of (or a valid implementation solution for) the problem is achieved.
The protocol is iterative or cyclical in nature and is intended to foster deeper understanding of a
given situation, starting with conceptualizing and particularizing the problem and moving
through several interventions and evaluations.

Data collection used to get information from select shoe company

In order to get data from SELECT shoe company we choose both Primary and
secondary source of data some of ways are :

 Financial statistics of SELECT shoes company

 Pricing data of the company
 Questionnaire commenced among customers
 Data of Reebok Company.

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 Chapter 5: Data Analysis

WHAT IS DATA ANALYSIS?

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the
goal of discovering useful information, suggesting conclusions, and supporting decision-making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under a
variety of names, in different business, science, and social science domains.

I have used the secondary data to continue my research.

Secondary Data Analysis

NOTE: In case of this study secondary data is used in order to get financial data of the
company like Balance sheet etc.

Reebok have 46% market share in the premium sportswear brands, which is much more than its
competitors Adidas and NIKE which only hold (21%) &(11%)in this segment, whereas puma
has only 6% in sportswear brands, whereas others brand like SELECT holds 16% in the market

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.Reebok is much ahead of all its competitors in this segment. Reebok and its parent company
(Adidas) hold 67% in this segment.

Financial STATISTICS OF SELECT

Net sale

3 select sales
anand polymers

0
2011 2012 2013 2014 2015

As we know that Anand polymers shoes net sales of recent yesrs is 50 lakhs. As we know that
select company is small scale industry, but its sales are continuously increasing with in the
years.Select is the main asset of the company as most of the sales are done by the select under
head which is way more than other products of company.

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SALES GRAPH OF REEBOK

Reebok sales have declined in recent years as we can see it from the graph that it has declined to
1599 million euro in 2013 from 1940 million in 2011.we can see from this graph that in recent
years Reebok sales are continuously decreasing within the years.

34
 Financial STATISTICS OF SELECT

BALANCE SHEET OF SELECT dated ( 31-march-2015)

BALANCE SHEET OF SELECT (31-march-2016)

35
Balance sheet of select dated 31 march 2016

( for karolbagh branch )

 Opening stock- Rs. 2119057
 Closing stock- Rs. 6343307
 Gross profit- Rs. 3975184
 Net profit-1267939
 Current asset- Rs. 15178200
 Current liability- Rs. 12198280
 Working capital- Rs. 2979920

Some keys points above financial statments

(For bahadurgarh branch)

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 (For 2015 review of balance sheet)
 Opening stock- Rs. 2024840
 Closing stock- Rs. 5958400
 Gross profit- Rs. 3664035
 Net profit-991979
 Current asset- Rs. 12217899
 Current liability- Rs. 12013426
 Working capital- Rs. 2604473

(For 2016 review of balance sheet)

 Opening stock- Rs. 2119057
 Closing stock- Rs. 6343307
 Gross profit- Rs. 3975184
 Net profit-1267939
 Current asset- Rs. 15178200
 Current liability- Rs. 12198280
 Working capital- Rs. 2979920

Review:
 We can see that the opening stock has risen to 2119057 from 2024840.
 Also the gross profit and net profit have increased in this year.
 Also the current assets have risen to Rs. 15178200 from- Rs. 12217899.
 Negative point is that current liabilities of the firms have also risen in this last year.
 Also the working capital has also increased in these two years.

37
 BALANCE SHEET OF REEBOK COMPANY

€ in millions March 31, 2016 March 31, 2015 Change in %

ASSETS

Cash and cash equivalents 1,328 1,373 (3.2)

Short-term financial assets 5 5 3.0

Accounts receivable 2,517 2,456 2.5

Other current financial assets 272 695 (60.8)

Inventories 2,939 2,539 15.7

Income tax receivables 76 84 (9.6)

Other current assets 531 477 11.4

Assets classified as held for sale 0 282 (100.0)

Total current assets 7,669 7,911 (3.1)

Property, plant and equipment 1,598 1,523 4.9

Goodwill 1,364 1,226 11.3

Trademarks 1,558 1,616 (3.6)

Other intangible assets 177 166 6.7

38
Long-term financial assets 145 138 5.1

Other non-current financial assets 97 47 107.1

Deferred tax assets 680 680 (0.0)

Other non-current assets 126 108 16.6

Total non-current assets 5,746 5,504 4.4

Total assets 13,415 13,415 (0.0)

Liabilities and equity

Short-term borrowings 676 456 48.1

Accounts payable 1,573 1,475 6.7

Other current financial liabilities 235 223 5.7

Income taxes 446 340 31.2

Other current provisions 474 480 (1.3)

Current accrued liabilities 1,664 1,381 20.5

Other current liabilities 396 384 3.2

Liabilities classified as held for sale 0 35 (99.7)

Total current liabilities 5,464 4,773 14.5

39
Long-term borrowings 1,467 1,464 0.2

Other non-current financial liabilities 32 10 218.0

Pensions and similar obligations 274 294 (6.8)

Deferred tax liabilities 328 457 (28.2)

Other non-current provisions 53 39 36.6

Non-current accrued liabilities 92 71 30.9

Other non-current liabilities 43 44 (2.6)

Total non-current liabilities 2,288 2,377 (3.7)

Share capital 200 203 (1.5)

Reserves 254 1,088 (76.6)

Retained earnings 5,224 4,980 4.9

Shareholders' equity 5,679 6,271 (9.4)

Non-controlling interests (16) (6) (154.8)

Total equity 5,663 6,265 (9.6)

40
Total liabilities and equity 13,415 13,415 (0.0)

Review of balance sheet:

Company’s total assets & its total liabilities remain same in both the years 2015&2016 have
remain same there is no increase in its assets and liabilities. But there are changes in its assets
and liabilities some of the changes are:

1. Assets:
 Total current assets have increased to7911million Euros from 7669 in this year.
 There is decline in accounts receivables which good for company, because its
money is not stocked in the market.
 Inventories have decreased which is also a good thing because company is selling
its goods at good rate and clearing its stocks.
 Goodwill of company has decreased which is bad thing because company’s image
is deteriorated with scams.
 Total noncurrent assets have also decreased in this year.
 Total assets have remained same 13415 million Euros both year.

2. Liabilities:
 Total current liabilities have also decreased in this financial period from 5464
million Euros to 4773.
 Short term borrowings and accounts payable have also decreased in this year.
 Long term borrowings have remained same this year.
 Shareholders are almost same as last year which is200 now its 203 million Euros.
 Reserves have increased at huge rate which is 76% which is not good for
company from254 to 1088 million Euros, it must be increase but at good rate.
 Retained earnings have decreased but not to worry because it’s little steep
from5224 million Euros to 4980.
 Shareholders equity has also increased to 6271 million Euros from5679.

41
Comparison of the balance sheet of the companies:

Assets of the companies:

 Select has assets net worth Current asset- Rs. 12217899 Whereas Reebok have assets
7911million.
 Select has liabilities of 12198280 whereas 5464 million.
 Select has Opening stock- Rs. 2119057 whereas Reebok 2,539 million.
 Select Closing stock- Rs. 6343307 in compare to Reebok 2644 million.
 Select Net profit-1267939 and Reebok is 2000 million.
 Select Gross profit- Rs. 3975184 and Reebok 239 million.
 Select Working capital- Rs. 2979920 in comparison to Reebok 4754 million.
 Total assets of select is 28393642 whereas Reebok have 7911million

From above key points we can say that select is doing pretty good in these years it all sub
heads like assets, profit both net and gross also have increased in this period, also
working capital is also increased which is good to do its day to day operation.
The negative thing is that the inventories have also increased which is a negative term
because it cause burden to the firm, and it also has had its impact that the liabilities have
increased in this years.

42
 Chapter 6: Findings
 Select net assets have increased in these years, it has assets net worth Current asset- Rs.
12217899.
 It is doing good business in recent years because both net and gross profit has increased
in these years.
 Gross profit- Rs. 3975184 in last year compare to Rs. 3664035 last year.
 Whereas net profit have also increased it is1267939 in compare to Net profit-991979 of
previous year.
 Working capital has also increased to Rs. 2979920 in compare to Rs. 2604473.
 Current liabilities have also increased to12198280 from12013426.

43
 CHAPTER -7: RECOMMENDATION
.
 There are still efforts are needed to make people aware about his products and services
provided by them.
 Company Should Increase Man Power for sales.
 It has to increase its production in order to achieve its target.
 Company has various opportunities to achieve its both vision and mission because shoe
market is quite big and will be increasing in coming years.
 Company needs to clear its inventories as quick as possible, because they are burden to
the organization.
 Company is in positive state because its profit and assets are increased in these years.

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CHAPTER – 8: CONCLUSIONS

 Select has to do a lot in this industry to achieve a big name like Reebok.
 Company have lot to do create its image in the mind of the customer which it can do only
after providing better quality products to its customer.
 Shoes market is quite big so there are many chances in future that select will grow at a
healthy rate in the market.
 Company is doing pretty good looking with its size& operations as it is only a small scale
company at this time.
 Select will be facing tougher competition in the market to survive in al long market.
 On of the biggest conclusion is that people are more concerned and aware about the
brands whose product they want to buy.

45
BIBLIOGRAPHY

www.anandpolymers.com

http://economictimes.indiatimes.com/selectshoes-ltd/infocompanyhistory/companyid-13781.cms

http://www.selectindustresltd.com/profile/profile.htm

http://www.moneycontrol.com/financials/select/balance-sheet/U01#U01

http://profit.ndtv.com/stock/anandpolymers-ltd_select/reports

http://www.selectshoes.com/blog/?tag=sustainable-packaging

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