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    THE OXFORD COLLEGE OF BUSINESS MANAGEMENT

    Glass industry in India

    Glass industry in India is poised to grow rapidly owing to its extensive use in the numerous

    sectors. The market is driven by increasing disposable income and willingness to spend on

    better living standards due to rising aesthetic sense among consumers as well as glass being

    the preferred medium of packaging. The total glass industry is worth INR 180 bn in 2010

    The unique attributes of glass like its optical properties, chemical durability, and recyclability

    account for a range of glass products making it an integral part of the social existence. It is

    being used for innumerable consumer products ranging from tableware to automotive glass,

    for lighting and construction, and most importantly as packaging material food and

    beverages, cosmetics, and chemicals. The ever increasing demand for container glass for both

    conventional as well as new and specialty products as a result of pioneering researches ensure

    the continued success of global container glass market. The global market for container glass

    is projected to grow at a CAGR of approximately 7.9% for the period spanning 2011-2013.

    Glass as a packaging material is being increasingly preferred by consumers inclined towards

    a healthy and sustainable lifestyle. At the same time, the industry is also encouraging the use

    of glass packaging due to features of better shelf life, design possibilities and recyclability.

    The factors driving the global container glass market include mainly the growth in beverage,

    cosmetics, and pharmaceutical industry. However, the development of plastic and PET

    containers has provided a packaging alternative thus creating a challenge for the globalcontainer glass market.

    The global container glass industry is dominated by Europe and the US, where the container

    glass category accounts for a sizeable amount of the overall glass market revenues. Both the

    US and European regions reported an increase in container glass revenues in 2010, in

    response to improving economic conditions, and rising consumer awareness about the

    benefits of using glass packaging. In addition, continuous efforts on the part of the

    governments to promote recycling of glass containers will lead to an unprecedented growth in

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    the container glass market. In the recent years, the emerging nations in the field of container

    glass category, like India and other developing countries, have acquired a dominant position

    posing as potential threat and as well as opportunity for the existing markets.

    The current landscape of the global container glass market is intensely competitive with

    numerous large and regional players operating in the market, competing on the basis of price,

    quality, and other marketing attributes. The leading players in the global container glass

    industry include Saint-Gobain, Owens-Illinois, and Vetropack, among others.

    We have predicted the future growth of the global glass container market by combining SPSS

    Inc.s data integration and analysis capabilities with our relevant findings. We employed

    various significant variables that have an impact on this industry and created regression

    models with SPSS to determine the future direction of the industry.

    Overall, the glass container market in India has been growing at a healthy rate of over 10 per

    cent, with F&B segment contributing handsomely due to prospering FMCG sector. Food

    packaging is witnessing healthy volume growth due to the arrival of organized retail market.

    This has led to high competition in the packaging segment, and consequently has resulted in anumber of innovations in the sector. The adoption of Narrow Neck Press & Blow (NNPB)

    technology in the production of glass containers has brought a revolution in the Indian glass

    packaging industry. It has resulted in decreasing the weight of the glass containers by 25-30

    per cent. This technology also offers benefits such as better control over glass distribution

    and increased productivity, thus making glass packaging more cost-effective and convenient

    for the consumers.

    All major industries create wealth but if there is one industry that plays a unique role by way

    of both creation of wealth through a wide range of manufacturing activities and also by way

    of preserving the wealth or value created by many, many other industries, it is packaging.

    Apart from the huge value addition and employment involved in these activities, packaging

    has served the Indian economy by helping preservation of the quality and lengthening the

    shelf life of innumerable products ranging from milk and biscuits, to drugs and medicines,

    processed and semi-processed foods, fruits and vegetables, edible oils, electronic goods etc.,

    besides domestic appliances and industrial machinery and other hardware needing

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    transportation. With water becoming a consumer product, polymer material-based bottles are

    becoming a universal presence. Packaging, as distinct from mere packing, plays its most

    visible and catalytic role in a modern economy with the widespread adoption of branding ofproducts and development of consumer preferences. To the extent that any consumer product

    is packaged in a manner that meets the criteria of safety, convenience and attractiveness, it

    gains market share. In the aggregate, packaging as a sect oral activity boosts consumption and

    economic growth. Heightened competition in all product sectors within the country as also

    the increasing need to look for export markets have contributed to the rising demand for

    appropriate, and at the same time cost-effective, packaging material and technologies.

    The packaging industrys growth has led to greater specialization and sophistication from the

    point of view of health (in the case of packaged foods and medicines) and environment

    friendliness of packing material. The demands on the packaging industry are challenging,

    given the increasing environmental awareness among communities. The World Packaging

    Organizations (WPO) slogan, Better Quality of Life through Better Packaging, sumps up

    the important place that packaging occupies in a modern economy. To ensure that public

    appreciation of this role and the policy-makers support to the industry are not diluted,

    attention should be paid to basic issues like collection, segregation and reuse of synthetic

    packaging material and observation of regulatory requirements.

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    Indian Packaging Industry Market:

    The Indian packaging industry itself is growing at 14-15% annually. This growth rate is

    expected to double in the next two years. Indian Packaging industry is USD 14 billion and

    growing at more than 15% p.a. These figures indicate towards a change in the industrial and

    consumer set up. However, the Indian fascination for rigid packaging remains intact. It is

    estimated that more than 80% of the total packaging in India constitutes rigid packaging,

    which is the oldest and the most conventional form of packaging. The remaining 20%

    comprises flexible packaging.

    Rigid packaging constitutes glass bottles, metal cans, aerosol cans, battery cell cans,

    aluminum collapsible tubes, injection molded plastic containers made of PVC, PET, HOPE,

    barrels made from HOPE, paperboards, a corrugated boxes. However, with the expanding

    middle class and rising income levels, the patterns of consumption are bound to change

    substantially and the demand for quality and convenience-based products will increase.

    Concurrently, the increased interaction with the developed world will considerably influence

    the aesthetic and quality norms of the Indian consumer and lead to better consumptionstandards. This is expected to stimulate greater consumption of branded products and

    increase the use of rigid and flexible packaging.

    Flexible packaging contains multi-layered laminated sheets of single or a combination of

    substrates such as plastic, paper or aluminum. Flexible packaging finds varied use because of

    its ability to provide strength, moisture resistance, aroma retention, gloss, grease resistance,

    heat retention, salability, printability and low odor. Flexible packaging has gained vast

    acceptability because of the protection it offers to the product against environmental threats

    like moisture, heat, and chemical reaction. More so, convenience in handling the product and

    the cost benefits it provides are added advantages. Nonetheless, plastic, which is the most

    commonly used substrate in flexible packaging, is facing pressure because of issues of

    environmental protection and safe disposal. These issues act as a major impediment in

    flexible packaging becoming an all-pervasive medium. Paper and paperboard, on the other

    hand is environment friendly and also enjoy the advantages of easy handling and efficient

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    process implementation. Moreover, flexible packaging mandates additional capital

    requirements and technical know-how for efficient manufacturing operations.

    Although substrates like plastic have gained vast acceptability, attractiveness of paper and

    paperboard consumption remains. Currently, India is ranked 15th in the world for its paper

    and paperboard consumption and is expected to improve its rank in the future. Paper is the

    fastest growing substrate segment with a growth rate of 6-7%. The total demand for paper

    currently is estimated to be around 6 mn tones, of which about 40% is consumed by the

    packaging industry. If the demand for paper continues to grow at the same rate, total paper

    consumption is expected to reach 9.5mn tones by 2010.

    Laminated products including form-fill-seal pouches, laminated tubes and tetra packs are

    growing at around 30% p.a. There are about 600-700 packaging machinery manufacturers,

    95% of which are in the small and medium sector located all over India.

    Germany and Italy are the latest suppliers of packaging machinery to India but focus is now

    shifting on Taiwan, Korea and China. Indian packaging machinery imports are USD 125 million. Indian packaging machinery exports are rapidly growing. India's per capita packaging consumption is less than USD 15 against worldwide

    average of nearly USD 100.

    The large growing middle class, liberalization and organized retail sector are thecatalysts to growth in packaging.

    Food and Pharma packaging are the key driving segments. On the packaging machinery side, while a wide range is manufactured in India, the

    industry imports machinery, especially at the high end.

    Germany and Italy are the largest suppliers of packaging machinery to India butfocus is now shifting on Taiwan and China.

    The import (customs) duty for packaging machinery is 25.58% for 2007-08. Indias imports at 20 & 25% of its total packing machinery import indicate further

    opportunities for Italian companies to explore.

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    Some important Packaging sub-sectors:

    Corrugated Packaging & Situation in India:

    A flourishing organized retail have raised the expectations that consumption of

    corrugated packaging will begin to expand again as the number and volume of goods

    packaged in corrugated increases. MNCs are demanding corrugated boxes of international

    standards and the pattern of buying the packaging is changing.

    Prices of corrugated sheet and converted boxes have remained low due to the over-

    capacity, manual operations and low productivity. Besides, transport constraints and high

    freight costs have meant that small to medium sized corrugated box plants are located near

    the customers.

    The over 4,000 corrugated boards and sheet plants are highly labor-intensive,

    employing over half a million people both directly and indirectly. The industry is

    converting about 2 million tons of Kraft paper into corrugated boxes. Factories are spread out

    in all parts of India, even in the remote industrially backward areas.

    This present scenario is already being challenged by the sweeping changes that are

    beginning to take shape. More and more in-line automatic plants are being set up, as

    corrugated box makers gear up to meet the new demands for high precision boxes with

    attractive graphics and large integrated production capacities.

    Inline Automatic Board and Box making plants will ease out the present semi

    automatic production processes. Deployment of Folder Gluers, Rotary Die cutters will be on

    the increase. Use of corrugated for display/promotional packs, POPs and dispensers.Advances in multicolor, flexi printing will facilitate in-house flexi printing and do away with

    screen printing, contract printing on offset presses.

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    Pharmaceutical Packaging & Situation in India

    Pharmaceutical packaging occupies a considerable portion of the overall drugs and

    pharmaceutical market in India and is growing steadily with the same pace of the industry.

    Pharmaceutical packaging consists of various types of glass, pet bottles, strip and blister

    packs, injectibles, ampoules, bulk packs, etc.

    The Indian pharmaceutical packaging industry is witnessing a spurt in growth. Today, the

    packaging industry in India is considered a sunrise industry and its linkages are extensive and

    highly employment creating. On one side, it involves manufacture (and sometimes import) of

    a wide range of packing material - paper, paperboard, cardboard, a range of polymer productsincluding rigid and flexible packaging material, aluminum foil, tin an good old wood and

    steel. Other backward linkages of packaging including printing labeling and binding

    /adhesive tapes etc. Of course machinery for making / processing these products and for

    packing / packaging is another segment closely linked to this industry. Growth will follow

    upward trends in global medication consumption, which will expand at a strong pace as aging

    demographic patterns lead to an increasing number of diseases and disorders.

    Pharmaceuticals will assume an expanding role in worldwide health care delivery based onnew product introductions and economical advantages over other forms of patient treatment.

    Besides upward trends in medication consumption, the adoption of stricter regulations and

    standards governing the production, storage, distribution and labeling of pharmaceuticals will

    boost global growth opportunities for packaging products and accessories. Historically,

    pharmaceutical packaging requirements focused exclusively on preserving the quality of

    enclosed medication. These requirements are now being extended to cover such criteria as the

    prevention of product tampering and counterfeiting, the assurance of product dispensing

    accuracy and the promotion of patient compliance with product dosage schedules.

    As most of the consumers, you actually take a decision on which product to buy when we are

    in the supermarket before the shelves. It is important that the packaging let you having a

    truthful and instant appreciation of the product inside, while at same time jumping off the

    shelf, speaking to you, providing instant convincing information about the quality of the

    product. The packaging has therefore the prime tasks to be appealing, while being functional

    and reliable.

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    Unlike other materials, glass adds a touch of class to the products contained inside while

    guaranteeing the highest level of protection and longer shelf life. You can easily sense theelegance and the beauty of a bottle of Champaign, of a wine glass or flacon of perfume.

    No other packaging material matches the shelf impact of glass. The clarity, shape, and feel of

    glass containers contribute to the premium image of products ranging from fine perfumes to

    liquor to gourmet foods and beverages.

    Packaging industry serves the following purposes in India:

    1. Containment: Most products must be contained before they can be moved from one place

    to another. To function successfully, the package must contain the product. This containment

    function of packaging makes a huge contribution to protecting the environment. Faulty

    packaging (or under packaging) can lead to spillages a result in major losses and serious

    damage.

    2. Protection and Preservation: Packaging plays a vital role in protecting products as they

    go from the manufacturer to the consumer. Packaging is designed to ensure that the productreaches the consumer in good condition. The product is protected during transport and

    distribution; from climatic effects (heat and cold, moisture, vapor, drying atmospheres); from

    hazardous substances and contaminants; from infestation.

    3. Supplementary Product Protection: Packaging can also provide supplementary product

    protection. This may be achieved by forms of cushioning such as shredded papers, sheets of

    corrugated paperboard, foamed plastic or wrappings. Packaging therefore contributes to food

    safety, quality and nutrition. Packaging technology has made major contributions toadvancing food science and food safety and reduction of food spoilage.

    4. Communication:A package must protect what it sells and sell what it protects. Modern

    methods of consumer marketing would fail were it not for the messages communicated on the

    package. The information provided on packaging allows the consumer to make informed

    decisions on the products purchase and use.

    5. Convenience: Packaging plays an important role in allowing products to respond to the

    demands and needs of modern consumers. Frozen food packs, microwavable containers, wine

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    cardboard casks, easy-open beverage and food cans and aseptic cartons are good examples of

    convenience packaging. These types of packaging reflect the demand for convenience and

    quick food preparation in a way that guarantees freshness. Light weight medical devices arepackaged in peel-open, pre-sterilized containers designed for easy use in operating rooms,

    patients rooms, or laboratories. In the administration of drugs, unit-dose packaging, solid and

    liquid, in small containers allows sealed, unused drugs to be returned to stock. Medical

    packaging also reduces the risk of accidental overdose or improper use by children (child

    resistant closures).

    6. Environmental Aspects: Packaging reduces the amount of waste going to landfill.

    Without the benefit of packaging to preserve food, a higher proportion of food would become

    spoiled and consequently consigned to garbage collection for land disposal. When the food is

    packaged, the unwanted portions such as skins, outer leaves and trimmings, remain at the

    processing point where they can be economically recovered and used in the manufacture of

    valuable byproducts.

    7. Reduction of Pilferage: Packaging of a wide variety of products sold from self-service

    counters is designed to reduce stealing. The product may be sold in a blister package sealed

    to a large paperboard backing. The large card makes the package more difficult to conceal

    and steal. Other examples of security packages are lock-on caps and tamperproof closures.

    8. Marketing Trends: Marketing trends are placing increasing emphasis on the look, sales

    appeal and quality of retail packaging. Packaging helps sell products by providing product

    differentiation and presentation, greater brand awareness and convenience. The continuously

    changing demands of consumers will require higher quality graphics and promotional links

    between graphics and advertising to support brand identities, plus the ability to reflect current

    consumer trends and images.

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    Factors Affecting Growth of Packaging Industry in India

    1. Urbanization

    Modern technology is now an integral part of nation's society today with high-end

    package usage increasing rapidly. As consumerism is rising, rural India is also slowly

    changing into more of an urban society. The liberalization of the Indian economy, coupled

    with globalization and the influx of the multi-nationals, has improved the quality of all types

    of primary and secondary packaging. Also industrialization and expected emergence of the

    organized retail industry is fuelling the growth of packaging industry.

    2. Increasing Health Consciousness

    As people are becoming more health conscious, there is a growing trend towards well packed,

    branded products rather than the loose and unpackaged formats. Today even a common man

    is conscious about the food intake he consumes in day-to-day life.

    3. Low Purchasing Power resulting in Purchase of Small PacketsIndia being a growing country, purchasing power capacity of Indian consumers is lower; the

    consumer goods come in small, affordable packages. Apart from the normal products packed

    in flexible packaging, the use of flexible in India includes some novel applications not

    usually seen in the developed world. Products like toothpaste, toothpowder, and fairness

    creams in laminated pouches are highly innovative and are not used elsewhere. Another

    typical example of such applications is tobacco and betel nut-based intoxicants and mouth

    fresheners catering to unique Indian taste.

    4. Indian Economy Experiencing Good Growth Prospects

    The Indian economy is growing at a promising rate, with growth of outputs in agriculture,

    industry and tertiary sectors. Overall economic growth has proved to be beneficial for the

    consumer goods market, with more and more products becoming affordable to a larger

    section of the population.

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    5. Changing Food Habits amongst Indians

    Changing lifestyles and lesser time to spend in kitchens are resulting in more incidence ofeating away from homes resulting in explosive growth of restaurants and fast food outlets all

    over the country. Indians are trying out newer cuisines and also purchasing similar food items

    for their homes. Therefore, the review period has seen new products like pasta, soups, and

    noodles being launched in India, fuelling the growth of packaging industry in India.

    6. Personal health consciousness amongst Indians:

    With growing awareness towards contagious diseases like AIDS and other STDs, awareness

    towards usage of contraceptives and disposables syringes have increased the demand for

    packaging required for the same.

    7. Rural Marketing Pushing Demand for Sachets

    India comprises of a big rural market and there has been growing focus on rural marketing,

    whereby manufacturers are introducing low-priced goods in smaller pack sizes. Low priced

    sachets have proved to be extremely popular in smaller towns and villages, where people do

    not prefer to buy larger packs due to financial constraints.

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    Global Glass Market

    The global market for glass packaging is thriving on the back of the increasing consumer

    demand for pure, green, and sustainable food and beverage packaging. Glass the fact that

    glass containers are chemically inert and pure, and thus safer to be used, their popularity and

    demand is notably high among consumers. Further, the perception of glass containers as

    having a high quality or premium image compared to plastic and metal containers facilitates

    growth.

    Its key property of being chemically inert and transparent makes glass the most suitable

    medium of packaging of liquor, pharmaceutical/life saving drugs and food items. Recyclable

    is another major advantage of glass which makes a preferred choice for packaging. In

    addition to the above benefits of glass, factors like increasing demand from emerging markets

    of India and China, rising cosmetic sales, changing lifestyle, increasing per capita is also

    driving for the growth of the industry and as well as the country wealth increases.

    Unlike plastic, cans, and multi layered cartons, glass containers do not need a petroleum-

    based plastic layer or other chemical additive to preserve the taste of foods and beverages,

    avoid corrosion or decrease gas permeability. Glass does not deteriorate, corrode, stain orfade, so products inside glass container remain as fresh and pure as they were bottled.

    Major Centers

    The Indian glass processing industry is clustered in six geographical locations that fall near

    the six industries or metropolitan cities. It is very interesting to note that there are certain

    areas as big as Italy where you won't find a single glass processing unit. These areas are

    dependent on the glass processors in the six clusters to cater to their processed glass plants.

    Can you believe a state having a population of 230 million (yes that's million) does not have a

    single processing unit?

    The processing clusters are located in and around the following cities :New Delhi. The

    national capital has some of the biggest and most reputable glass processors in the country.

    GSC Glass, Gold Plus (which recently announced setting up a float line), Mico Glass, and

    Gulati glass are some of the glass processors in the region, and all are located in a belt of 100

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    km in the capital region. GSC and Gold Plus glass stand out among the processors in the

    capital region; in fact, GSC glass could be termed the most advanced and largest glass

    processor in the country. Incidentally GSC was the first glass processor in the country when itstarted to process glass in 1994.Mumbai. The country's financial capital, as it is dubbed, has

    some of the very best names in the processing industry. Sejal Glass, Fishta Glass, and Viral

    Glass are a few of the outstanding names in the region. The processing industry in this region

    is benefiting from the boom in construction activities that has been going on for quite some

    time. Other than these two major industry clusters. The remaining clusters are in and around

    the cities of Chennai, Hyderabad and Bangalore, and in the eastern coast of the country in

    Kolkata. One prime reason these clusters formed in these particular regions is the spate of

    construction that has been happening in these cities over the last five years. If you travel to

    any of these cities today, you will see how the skyline is changing. Overnight, new structures

    are rising, and you will see endless facades of glass also rising. Looking at this one would

    guess that this is the region where every glass processor would want to be, so what is the

    reason that a value-added glass industry in the country is not booming?

    Low demand drivers

    Consumer awareness. Perhaps, the most important reason for low volume of value added

    glasses can be attributed to consumers. As glass has gained increased popularity in the last

    fifteen years, most consumers in India are not aware of type of value-added glass and their

    respective advantages. Consumers are not aware of the availability of various types of glass

    and what benefits each one gives. Most customers have the perception that glass is something

    that is transparent and very fragile. Fragmented nature of the industry. It is no secret that the

    glass processing industry in India is much disorganized. Because of the fragmented nature of

    the industry, glass processors, whole sellers, glaziers, and all other participants are short-term

    driven. Almost no effort has been put into customer service, reducing costs, or systematically

    developing markets. spiraling Costs. The glass industry is also weighed down by the spiraling

    cost of manufacturing. Energy costs are increasing, as are those of raw materials and

    infrastructure. The regulatory framework of building codes for safety and energy also needs

    to keep pace with industry growth and new glass uses. In case value-added glass has to make

    inroads in India at a scale and pace comparison to European countries, then prices will have

    to come down and in a hurry. Lack of knowledge among architects. It may seem strange that

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    many architects are not aware of the type of value-added glass available, and many turn to

    glass processors to suggest a type of glass for a particular application. Because glass is a

    relatively new product in building applications, those who use are still learning aboutapplications and benefits of various types of glass. Price sensitivity of Indian consumers.

    Despite robust economic growth during the last decade, Indian consumers and the Indian

    market are very price sensitive. With a price differential between basic flat glass and value-

    added glass, consumers would rather opt for the basic glass type. Low penetration in the

    residential sector. Use of value-added glass has gained popularity in commercial buildings to

    a large extent, but residential buildings, which are a major source of demand for these glass

    types, are not using much of thee products. Value-added glass is finding application in only a

    minuscule number of residential units. Lack of codes. Another dire problem facing the value-

    added glass industry is back of any codes for the products. There are no government

    guidelines for the use of any particular type of glass. There was an initiative by one of the

    state governments to make the use of tempered glass mandatory in commercial buildings, but

    it has yet to see the light of the day. A drive to adopt a ruling similar to that of Germany's for

    use of low E glass in windows can drive demand for value added glass in India.

    An overriding theme for glass packaging is that of reduced growth opportunities in mature

    regions and mature product categories. Fast-developing economies in Asia Pacific, Latin

    America and Middle East and Africa regions, meanwhile, are pivotal in supporting current

    and forecast global volume sales growth for glass.

    As disposable incomes increases amongst these dynamic economies and the retail

    infrastructure continues to develop, a subsequent rise in consumption of packaged food and

    beverages drives growth of glass.

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    Different types of containers:

    The influence of competing pack formats impacts glass share as dynamic packaging

    performer, lightweight PET, offers consumers a conveniently lightweight pack, suited to the

    on-the-go lifestyle.

    Harshest impact on glass is seen in carbonates and bottled water sales. The global glass

    stronghold of spirits is additionally seeing pack substitution in favor of PET amongst more

    economy lines, most apparent in North America. Beverage can advances in beer and more

    niche packaging developments exist to challenge the dominance of glass in wine.

    The growing consumer trend towards eating and entertaining at home, itself being furthered

    by tightened consumer spending in the weaker economic climate is promoting greater

    packaging growth in the off-trade channel as against weaker on-trade performance.

    This cocooning trend is producing retail growth for glass in its key alcoholic drinks

    categories of beer, wine and spirits. In developed regions, positive growth for glass is further

    observed in sauces, dressings and condiments.

    In particular, table sauces, pickled products and pasta/wet/cooking sauces respond to a

    widening consumer interest in other world cuisines whilst Asia Pacific's rise in purchases of

    packaged, branded products is a further driver for forecast glass growth.

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    Introduction

    Samyu Glass Pvt. Ltd. was established in the year 2009 and is dedicated to themanufacture of high quality glass containers. They cater to the package needs of hot/

    cold food processing, Pharmaceuticals, cosmetics and other industries. This company

    was cradled by the most arduous and sincere entrepreneurs in the country, benefited

    with the support of ever increasing demand for glass containers, economy of the state

    and the presence of a diligent group of individuals eager to attain growth and success.

    Outstanding product quality, dedicated customer service and the creation of

    innovative new products have always been central to our business. Its willingness to

    take on challenges and see them through is their hallmark.

    Samyu Glass Pvt. Ltd., a leader in product innovation, has designed andmanufactured a wide array of products for many of the worlds most recognized

    brands. The factory is located in Andhra Pradesh, South India, and in close proximity

    to the raw-material resources, major ports and our customers. Within a short time of

    operations the Company has built up an excellent reputation for quality and caters to a

    large and demanding customer base with a product range covering Flint, Amber and

    Green containers. The Company has an installed capacity of producing 200 MT perday of Glass and has state of the art equipments designed to produce Glass containers

    in 100 ml 1000ml range, in different shapes and in Flint, Amber and Green glass.

    The manufacturing facilities are among the best and state of the art to achieve high

    levels of productivity and quality.

    Vision

    At Samyu Glass Pvt. Ltd., we have a clear vision of what we would like to accomplish, and

    we constantly strive to meet this challenge. In the next 5 years, we would like to spread ourbusiness establishments and services across the world, and to be a pioneering leader in the

    manufacturing of glass products in the global market. We strongly believe that excellence can

    be achieved only through innovation. We aspire to be a globally respected corporation that

    provides best business products and services, and sticks to the basic values and principles that

    were the pillars on which this company was initially incorporated upon.

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    Basic Principals

    Samyu Glass Pvt. Ltd. has always been a principal-driven company. These principals

    continue to direct the growth and business of our company. These principals are an integralpart of us and the manner in which we conduct our business:

    Leadership: We must strive to set standards in our business and transactions and be an

    exemplar for the industry and ourselves. We must have the courage to shape a better future

    for the society at large.

    Responsibility: We must conduct our business fairly, with honesty and transparency.

    Everything we do must stand the test of public scrutiny. We must continue to be responsible,

    sensitive to the laws, communities and environment in which we work.

    Reliability: We must be caring, show respect, compassion and humanity for our colleagues

    and customers around the world, and always work for the benefit of the communities we

    serve. We must surpass customer expectations consistently. We must bring prosperity to our

    investors, security to our employees, and productivity excellence to our customers and

    business partners.

    Excellence: We must constantly strive to achieve the highest possible standards in our day-

    to-day work and in the quality of the goods and services we provide. We strongly believe that

    excellence can be achieved only through innovation. We must be committed to growth and

    diversification. Constantly identifying new opportunities, looking out for new challenges and

    this must become our way of life.

    Primary Competitive Advantages

    Transparent dealings Utmost client satisfaction Ability to deliver bulk order Stringent quality check

    No of Staff 700

    Year of Establishment 2009

    Product Range

    Perfume Glass Bottle Beverage Glass Bottle Juice Glass Bottle

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    An Overview

    With an exclusive range of glass products, we, Samyu Glass Private Limited, has captured a

    huge market share. Incepted in the year 2009, we have carved a niche for ourselves as one of

    the prominent manufacturers, suppliers, exporters, importers and traders of a wide range of

    glass bottles. The products we manufacture are Alcohol Glass Bottle, Beverage Glass Bottle,

    Juice Glass Bottle, and more. Our range is widely used into various industries such as

    Hot/Cold Beverages, Pharmaceuticals, Cosmetics and Food processing.

    Our proficient team, plays a crucial role in the marketplace, includes designers, managers,

    quality analysts, packaging inspectors, sales and marketing personnel, administrator staff, etc.

    They are highly experienced with complete knowledge of the processes involved in product

    manufacturing and their applications. With their expert guidance, we design and produce

    various others glass products according to the latest market trends and specifications given by

    the clients.

    In the near future, we plan to expand our export base and become leader in the domain of

    glass bottles manufacturing.

    Product Portfolio

    We are engaged in manufacturing, exporting, importing, trading and supplying a wide range

    of glass products, which are well-tested by our experts. The products are made using quality

    raw material that is procured from renowned vendors of the market. Our spectrum ofproducts includes:

    Perfume Glass Bottle Beverage Glass Bottle Juice Glass Bottle

    These products are available in various volumes such as 720ml, 500ml, 180ml, 200ml,

    320ml, etc.

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    Assured Quality

    Since our foundation, supreme quality has always been primary objective of our organization. Hence,

    we have a quality control wing, which is managed by a team of experts who supervise all the

    production processes and ensure that products go without defect. We are committed to use best

    quality material in the manufacturing of alcohol glass bottle, juice glass bottle, and other products.

    Also, the end products are checked on numerous parameters, some of which are as follows:

    Design Size Durability Accuracy Finishing

    Sophisticated Infrastructure

    We have the- state-of-the-art infrastructure that is outfitted with necessary machines and equipment

    for carrying out smooth production process within committed time frame. Our facilities are divided

    into various departments such as processing unit, quality testing unit, warehousing, dispatching, etc.

    Every unit has been provided with adequate resources and upgraded technology to produce a

    comprehensive range of glass products. Time to time up- gradation of our facilities allows us to attain

    timely accomplishment of the targets. Our infrastructure spreads over a vast expanse of land that

    allows our professionals to work in close proximity.

    Our Forte

    We enjoy immense popularity and recognition in the domestic as well as international markets and are

    known for our flawless products. Some of the numerous reasons, why we are preferred over our

    competitors are listed below:

    Easy payment modes Utmost customer satisfaction Safe and durable products Use of innovative technology Optimum quality of products Versatile infrastructure set up Efficient and experienced personnel Timely delivery of the consignment.

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    Products:

    Industry served Juice and mineral water Industry Pharmaceutical Industry Perfumery industry

    Design Studio

    As a global leader in the design and manufacture of glass, Samyu Glass is committed to

    delivering innovative and creative packaging solutions to customers. The Corporate Design

    Center is a product of this commitment.

    The Samyu Glass Corporate Design Center is a state-of-the-art facility and offers a complete

    range of design solutions to customers in categories as diverse as perfumes, cosmetics, skin

    care, beverages, food, wine, and pharmaceuticals. The center's solutions cover a wide gamut

    of packaging materials and components.

    The center has cutting-edge infrastructure and is peopled with experienced professionals. It

    offers 3-D industrial design, and is equipped with an in-house prototype and model making

    workshop.

    The design center continuously tracks the latest trends in fashion, perfumery, cosmetics and

    art and incorporates best practices into its packaging solutions. As a result, our solutions are

    fresh, creative and contemporary.

    The Corporate Design Center also has a center of innovation and development, offering

    marketing support in the form of point of sale design, graphic design, merchandising designs,

    exhibition design etc

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    Quality Policy

    To Gain the confidence and respect of our customers in the field of Glass container

    manufacturing by providing quality products that meet and exceed Customer expectations in

    terms of Quality, Delivery and cost.

    This shall be achieved by

    1.Continual improvement of our Technology and skills to meet and exceed customers

    statutory quality requirements.

    2. Cost reduction through judicious use of available resources in all Business processes.

    3. Development of Human resources through systematic Employees Involvement,

    Motivation and Training.

    4. Tuning of our business practices through feedback from our customers and suppliers.

    Quality Assurance

    Quality Checks:

    At Samyu Glass, quality is of paramount importance. To ensure consistency and quality, a

    Six Sigma initiative is being rolled out at both the Indian plants. At the corporate level, too,

    we are carrying out a Business Process Excellence initiative.

    Quality inspection involves five levels of checks.

    Level 1 happens at the IS machine, immediately after the bottle is formed. Here, the line

    operator, with the quality control checker, does hot end sampling for dimensional checks.

    Hot-end ware rejection is an automatic process to ensure quality of the bottles after bottle

    swabbing. Next, the bottles are put into an annealing chamber, where they are gradually

    heated and cooled to de-stress.

    The bottles then pass through a series of automatic and camera inspection checks by

    equipment like M, M-Cal, VERITAS and VISIGLAS. These machines check for body

    defects, neck finish, bubbles, foreign matter etc.

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    The bottles are finally automatically shrink-wrapped, and a sample of the packed bottles is

    put through a QA process to check for defects. The container used for transport is fumigated

    and also checked for cleanliness and hygiene prior to stuffing.

    Highlights of Samyu Glass Pvt Ltd:

    State of art equipment Global network base Cost effective quality products Experienced executive teams Leader in Product Innovation Proximity to raw materials /major ports Stringent quality control policies On time services Dedicated work force

    OUTLOOK

    The demand for clear figured glass is very good. We are gradually increasing our production

    and, thereby, bringing down cost of production per unit. Prices are also looking up. It is

    expected that they shall continue in this trend for this calendar year. Our present production

    quality is also acceptable in the market and we are getting the benefits of increased prices.

    We plan to introduce some new designs in the coming year.

    In colored figured, we have made 3 new colors this year that were not made for many years -

    coolex, blue, green. This is other than grey that we usually make. We plan to add new colorsin the coming year also. Our colored figured plant needs cold repairs. We have to start

    preparations for the same and have to order out refractoriness that has a lead time of 8-9

    months. Prices of colored figured are also up, but since colored figured demand is only 20-

    25% of total demand and 3-4 plants at a time make colored figured, there is a strain on orders.

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    Internal control system and their adequacy

    The Company has adequate system of internal controls to ensure proper safeguarding of the

    assets. The Company has appointed external firms of Chartered Accountants as internalAuditors.

    Financial performance

    During the year the turnover amounted to Rs. 3886.98 lakhs compared to Rs. 3635.47 lakhs

    in the previous year. After providing for interest and depreciation amounting

    to Rs. 364.46lakhs & Rs.133.97 lakhs, the net loss comes to Rs. 1618.85 Lakhs against net

    profit of Rs. 893.77 lakhs of previous year.

    The loss from operations is Rs. 401 lakhs only, balance is provision made for severance and

    full and final settlement of Allahabad Plant workers and other write-offs of not recoverable

    debts.

    Samyu Glass offers several competitive advantages over other suppliers of flacconage. These

    include:

    Strong manufacturing presence Wide sales and distribution spread Significant cost advantages Decoration services and accessories

    Strong Manufacturing Presence

    Samyu Glass is one of the largest manufacturers of flacconage glass for the pharmaceuticals

    and perfumery businesses today, with an installed capacity of 1,115 tons per day, and sales of

    more than $200 million worldwide. We also manufacture glass bottles for specialty food and

    beverages. Samyu Glass has invested more than $110 million in creation of significant new

    capacity, and is among the top five manufacturers of perfumery bottles in the world.

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    Sales & Distribution Spread

    Samyu Glass has a large geographic footprint, with a sales and distribution presence in mostmajor markets across the globe. Our significant marketing presence in Europe, USA and

    South America enables us to build more intimate relationships with customers, and respond

    to their needs quickly and efficiently.

    Corporate Social Responsibility

    As a citizen of corporate India, Samyu Glass takes its corporate social responsibility

    seriously. We have a variety of programs designed to help employees, local communities and

    the under privileged.

    Programs cover:

    Education

    Funding computers at a local school Improving infrastructure of the school

    Community Development

    Making drinking water more accessible for local communities by building tanks Building roads to make local villages more accessible, programs for senior citizens, etc,

    Research Design Innovations

    Glass can be molded into an infinite number of shapes and sizes for consumer appeal andform and functionality. And, creative labeling, embossing and other decorative treatments can

    also enhance customer appeal.

    Two properties of design:

    1. Significance - having importance or meaning2. Utility - quality of being useful

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    ORGANISATION STRUCTURE:

    Most organizations today are designed as a bureaucracy in whom authority andresponsibility are arranged in a hierarchy. Within the hierarchy rules, policies, and

    procedures are uniformly and impersonally applied to exert control over member

    behaviors. Activity isorganized within sub-units (bureaus, or departments) in which

    people perform specializedfunctions such as manufacturing, sales, or accounting. People

    who perform similar tasks areclustered together.The same basic organizational form is

    assumed to be appropriate for any organization, be it agovernment, school, business,

    church, or fraternity. It is familiar, predictable, and rational. It iswhat comes immediately tomind when we discover that ...we really have to get organized.

    Organization design is a formal guided process for integrating the people, information

    and technology of an organization. It is used to match the form of the organization as

    closely as possible to the purposes the organization seeks to achieve. Through the

    design process, organization act to improve the probability that the collective effort of

    members will be successful. Typically, the design is approved as an internal change

    under the guidance of an externalfacilitator. Manager and members work together to

    define the needs of the organization thencreate system to meet those needs most

    effectively. The facilitator assures that a systematic process is followed and encourages

    creative thinking.

    HIERARCHICAL SYSTEM:

    Western organizations have been heavily influenced by the command and controlstructure ofancient military organizations, and by the turn of the century introduction

    of Scientific

    THE DESIGN PROCESS:

    Organization design begins with the creation of a strategy- a set of decision guidelines by

    which members will choose appropriate actions. The strategy is derived from clear, concise

    statement of purpose and vision and from the organization basic philosophy

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    Organization Structure of Samyu Glass Pvt. Ltd.

    WORKERS

    MANAGING DIRECTOR

    SENIOR MANAGER

    ASSISTANT MANAGER

    FACTORY MANAGER

    SENIOR ENGINEER

    ENGINEER

    SUPERVISOR

    DEPUTY SUPERVISOR

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    FUNCTIONAL DEPARTMENTS

    Managing

    Director

    HR FINANCE MARKETING QUALITY PRODUCTION

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    Departmentalization by function organizes by the functions to be performed. The functions reflectthe nature of the business. The advantage of this type of grouping is obtaining efficiencies

    from consolidating similar specialties and people with common skills, knowledge and

    orientations together in common units.

    Functional departmentalization - Grouping activities by functions performed. Activities can be

    grouped according to function (work being done) to pursue economies of scale by placing

    employees with shared skills and knowledge into departments for example human resources, IT,

    finance, manufacturing, marketing and engineering. Functional departmentalization can be used

    in all types of organizations.

    Human Resource Department:

    Human resources are a term with which many organizations describe the combination of

    traditionally administrative personnel functions with performance, Employee Relations and

    resource planning. The field draws upon concepts developed in Industrial/Organizational

    Psychology. Human resources have at least two related interpretations depending on context. The

    original usage derives from political economy and economics, where it was traditionally calledlabor, one of four factors of production. The more common usage within corporations and

    businesses refers to the individuals within the firm, and to the portion of the firm's organization

    that deals with hiring, firing, training, and other personnel issues. This article addresses both

    definitions.

    The objective of human resources is to maximize the return on investment from the organization's

    human capital and minimize financial risk. It is the responsibility of human resource managers to

    conduct these activities in an effective, legal, fair, and consistent manner.

    Marketing Department:

    Marketing is defined by the American Marketing Association as the activity, set of institutions,

    and processes for creating, communicating, delivering, and exchanging offerings that have value

    for customers, clients, partners, and society at large. The term developed from the original

    meaning which referred literally to going to market, as in shopping, or going to a market to sell

    goods or services.

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    Production Department:

    Production is the functional area responsible for turning inputs into finished outputs through a

    series of production processes. The Production Manager is responsible for making sure that raw

    materials are provided and made into finished goods effectively. He or she must make sure that

    work is carried out smoothly, and must supervise procedures for making work more efficient and

    more enjoyable.

    In a manufacturing company the production function may be split into five subfunctions:

    1. The production and planning department.

    2. The purchasing department.

    3. The stores department.

    4. The design and technical support department.

    5. The works department.

    Finance Department:

    Finance, accounting is the system of recording, verifying, and reporting of the value of assets,

    liabilities, income, and expenses in the books of account (ledger) to which debit and credit entries

    (recognizing transactions) are chronologically posted to record changes in value (see

    bookkeeping). Such financial information is primarily used by lenders, managers, investors, tax

    authorities and other decision makers to make resource allocation decisions between and within

    companies, organizations, and public agencies. Accounting has been defined by the AICPA as

    The art of recording, classifying, and summarizing in a significant manner and in terms of

    money, transactions and events which are, in part at least, of financial character, and interpreting

    the results thereof."

    Source: http://www.syfes.com/1.html

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    3.1-HUMAN RESOURCE DEPARTMENT

    STRUCTURE OF HR DEPARTMENT

    Table-3.1

    Today we are living in competitive world. So every sector role is vital. At the same way in the

    organization human resource role is very central. Every human being has the ability and potential

    to do remarkable things if they are provided with opportunities and climate to understand,

    develop and utilize his or her potentials. Unfortunately, the development of people has been aneglected phenomenon in the past and therefore, ignored by most of the organizations.

    These organizations tended to view people as mere instruments for accomplishing organizational

    goals and, therefore, felt that they need to be administered or managed. But it is not true. In fact,

    complexities of modern organizations as apparent from changing technology, increasing size of

    business, larger volumes of production and greater emphasis on specialization lay stress on

    cutting down the costs of production, improving the quality of product or service, enhancing

    market share and maintaining effective and efficient leadership.

    MANAGING DIRECTOR

    DEPUTY MANAGING

    SENIOR MANAGER (HR)

    ASSISTANT MANAGER (HR)

    FACTORY MANAGER

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    Recruitment:Recruitment in Samyu Glass is a very fair and transparent process with adequate opportunities

    to look for suitable candidates internally as well as from outside. Applicants are generally invited

    on the basis of specific advertisements in newspapers. A committee of officers handles the entire

    recruitment process comprising screening of applications, preliminary short-listing, interviews,

    and final selection. All decisions of the Recruitment Committee are recorded in respect of each

    candidate.

    Recruitment process steps

    Source: http://hrmadvice.com/blog/2008/06/15/understanding-high-level-recruitment-process/

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    Overview of the recruitment process steps:

    1) Job Position Opening The most important process step for the successful recruitment

    and selection of the good candidate. The manager and the recruitment specialist define the profile

    of the position and the profile of the suitable candidate. The recruitment specialist has to

    be prepared for detailed discussions to have a good definition of the ideal job candidate.

    2) Selecting recruitment source The recruitment specialist has to decide about the

    correct recruitment channels to be used and the amount of job resumes, which can be expected to

    select from. This part of the recruitment process decides about the speed of the whole process.

    3) Selecting job candidate The process when the recruitment specialist and the managerselect the best candidates to make the offer to them. This part is usually the process step with the

    biggest risk of the delay in the recruitment process.

    4) Making an offer The nicest part of the recruitment and selection process. The

    recruitment specialist summarizes the requests of the manager and the wish told by the job

    candidate and tries to convert the job candidate into a new hire for the organization.

    Performance Management:The Companys performance management system is in itself a benchmark that provides ample

    opportunities and motivational incentives to employees so as to reward and retain good talent

    within the Company. These incentives include: performance linked incentives, good work

    awards, letters of appreciation, special increments, promotions, nomination to external training

    programmers in India and abroad, public felicitation, and appreciation. Some plants have Best

    Employee and Employee of the Month awards

    Training and Development:SAMYU Glasss new performance management system incorporates a process called

    Competency Assessment and Training and Developmental Needs wherein appraisers are

    specifically called upon to identify and assess training needs of employees at specific intervals

    that do not coincide with performance appraisals. This is so that training needs can be assessed

    objectively. Training is imparted to take care of an individuals career development as well as

    functional and skill enhancement. Competency and development training inputs include skill and

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    general performance enhancement, communication skills and career development. Functional

    training needs are identified and conducted by functional departments while corporate HR

    organizes competency and developmental inputs.

    Employee Welfare and Perquisites:

    Employee welfare receives prime attention at Samyu Glass. It has several schemes for general

    welfare of employees and their families. These cover education, healthcare, retirement benefits,

    loans and financial assistance, and recreation facilities

    Employee Satisfaction:

    The salient points of the survey of employees are shared below:

    People are treated fairly regardless of religion and gender.

    Samyu Glass Pvt. Ltd. is a safe place to work.

    Management is competent in running business.

    Employees feel good about what Samyu Glass does for society.

    Management thinks positively.

    AWARDS:

    Awards are instituted by the company in the recognition of outstanding work performance,

    useful suggestions for the improvements, & contributions to technical/academic knowledge.

    COUNSELING:

    Counseling services are provide to enhance employees competence & job satisfaction, to prepare

    them for future responsibilities, to establish better working relationship & to cope up with

    personal problems. Counseling is carried out by HRD appraisers & professional counselors.

    CARRER PLANING:

    This is ensuring that people of the right caliber are available to meet the present & future

    requirements of organization. The process identifies the necessity inputs aim at imparting

    technical/managerial knowledge, interpersonal skills & attitudes that will helping dealing with the

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    external & internal environments. Other factors to develop potential include activities such as

    exposure to new functional projects.

    SUCCESSION PLANING:

    The manager in Samyu Glass organization will prepare a succession plan to all position under

    him with the guidance of Deputy managing, identify the right incumbents with high potential

    for

    all positions, concerned HOD & unit chief shall implement the process. HR departments shall

    Co-ordinate this activity. Succession planning & career planning shall be reviewed every 6

    month in the company.It shall endeavor to uphold the dignity of individuals, by making feel proud partners in

    progress,

    through the following measures:

    Ensure a high degree of selectivity in recruitment of employees/trainees explicitly onCriteria of their knowledge, skills & attitudes, so as to secure super achievers &

    nurture them to excel in there.

    Impact such induction, orientation & training, as to match the individual to the task &inculcate a high sense of organizational loyalty.

    Provides facilities for all round growth of the individual by training in & outside theorganization, lateral mobility & self development through self motivation.

    Groom every individual to realize his potential in all facts while contributing to attainhigher organizational & personal goals.

    Build teams & faster team work as the primary instrument in all activities. Recognize worthy contributions in time & appropriately so as to maintain a high level

    ofemployees motivation & morale. Appraisal & promotion shall be ethical &

    impartial.

    Implement equitable, scientific & objective system of rewards, incentives & control. Contribute towards health & welfare of employees.

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    `3.2-MARKETING DEPARTMENT:

    STRUCTURE OF MARKETING DEPARTMENT

    Table-3.2

    MARKETING

    Marketing deals with identifying and meeting human and social needs. One of the shortest

    definitions of marketing are meeting needs profitably.

    AMERICAN MARKETING ASSOCIATION offers the formal definition of marketing

    Marketing is an organizational function and a set of processes for creating, communicating and

    delivering value to customers and for managing customer relationships in ways that benefit the

    organization and its stake holders

    MANAGING DIRECTOR

    DEPUTY MANAGING

    SALES & MARKETING MANAGER

    REGIONAL MANAGER

    FIELD MANAGERS

    REPRESENTATIVES

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    MARKETING MANAGEMENT

    Marketing Management can be defined as the art and science of choosing target markets and

    getting, meeting and growing customers through creating, delivering and communicatingsuperior customer value.

    Marketing mix

    Marketing mix is defined as the set of marketing tools the firm uses to pursue its marketing

    objectives. McCarthy classified these tools into 4 broad groups called 4 Ps of marketing:

    Table-3.3

    Source:http://business-fundas.com/2011/the-4-ps-of-marketing-the-marketing-mix-strategies/

    PRODUCT:

    The following features of the products are considered before releasing a product for sale.

    Quality

    Brand

    Packing

    Legal Aspects.

    http://business-fundas.com/2011/the-4-ps-of-marketing-the-marketing-mix-strategies/http://business-fundas.com/2011/the-4-ps-of-marketing-the-marketing-mix-strategies/http://business-fundas.com/2011/the-4-ps-of-marketing-the-marketing-mix-strategies/http://business-fundas.com/2011/the-4-ps-of-marketing-the-marketing-mix-strategies/
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    PRICE:

    The price is the simply amount a customer pays for the product. If the price outweighs theperceived benefits for an individual, the perceived value of the offering will be low and it will be

    unlikely to be adopted, but if the benefits are perceived as greater than their costs, chances of

    trial and adoption of the product is much greater.

    PROMOTION:

    Promotion is a communication process for informing the customer and company about the

    product, which they create for sale. It covers also adoption of method for increasing sales by

    motivation of customers, stockiest and retailers and sales force. Samyu Glass Pvt. Ltd. Adopts

    various types of sales promotion tools like discounts, gifts, other incentives, and sometimes

    company sends their dealers and distributors on tour in Darjeeling, Shiliguri, Sikim etc.

    Samyu Pvt. Ltd. invites contract of advertisement to private agencies, which look after

    all the functions regarding advertising. Samyu glass uses different modes of media vehicle to

    reach the people such as:

    Magazines

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    3.3-PRODUCTION DEPARTMENT:

    STRUCTURE OF PRODUCTION DEPARTMENT

    Table-3.5

    In Samyu Glass Private Limited, production department takes on a very decorative position in

    the entire array of company affairs. The production department is concerned with the planning

    and organization of the production system. It is responsible with the overall situation of the plant

    And the machinery, production planning and organization as well as overall capacity utilization.

    INDIVIDUAL SECTION (I.S.) MACHINE

    Individual Section (I.S.) machine produced first time in 1925 is now used all

    over the world as the most dominant machine for bottle and jar production. In this machine,

    there are number of individual sections. During the initial years of production of this machine

    there were only four sections. Machines with 6, 8, and 10 sections operating double gobs are

    now available and in operation in India. The number of sections in a machine depends on the

    size of the orders expected. Machines working either single, duel, triple or quadruple gobs are

    available throughout the world. The largest machine has 12 sections.

    MANAGING DIRECTOR

    DEPUTY MANAGING

    PRODUCTION MANAGER

    PRODUCTION SUPERVISOR

    WORKER

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    Individual Section machine does not rotate. The moulds stay in the

    same position and just open and close. A transfer arm pivoted between a blank and blow

    mould transfers the parison from one mould to another.

    MECHANISM

    1. Shear Mechanism2. Scoop Mechanism3. Funnel Mechanism4. Baffle Mechanism5. Plunger Mechanism6. Neckring Mechanism7. Invert Mechanism8. Blowhead Mechanism9. Vertiflow MechanismThe Operation of making glasses:

    1. Shear mechanism - shears the gob2. Scoop mechanism - guides the gob3. Mould opening & closed mechanism - Blank mould closed4. Funnel mechanismguides the gob in required shape5. Baffle mechanismON operation6. Plunger mechanismON7. Counter blow operation8. Settle blow operation9. Neckring mechanism - Parison transfer to blow mould10. Blow head mechanism - Final blow11.Take-out mechanismtakes the bottle to the machine conveyor

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    SHEAR MECHANISM

    The shear mechanism consists mainly of two sector gears, two arms and bracket.

    The shear blades are fixed on the shear arms. The function of the shear mechanism is to shear

    the gobs in proper shape and size for the container making process.

    SCOOP MECHANISM

    The scoop mechanism consists of a piston and cylinder arrangement. The purpose of

    scoop mechanism is to supply the gob to the different sections of the I.S. machine for glass

    formation.

    FUNNEL MECHANISM

    The funnel mechanism consists of a piston and rod and a cylinder. The arm is dipped

    in an oil well and the OFF operation is spring controlled. The purpose of funnel mechanism

    is to hold the funnel arm and to guide the gob in the required shape to the blank mould.

    Improved cam design resulted in speed increase up to 33% during downstrokeand 35% during upstroke

    Less mold equipment wear Prolonged mechanism service life Reduced inventories for funnel mechanism and spare parts Greater maintenance convenience Compatibility with existing mold equipment Externally accessible ball check valves Enlarged air passages Integrated cushioning ring Permanent lubrication Precise mechanism movement

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    BAFFLE MECHANISM

    A baffle mechanism consists of a long piston and rod and a cylinder. The twisting of the

    baffle of the baffle arm is achieved by a cam provided at the bottom of the cylinder. Thefunction of the baffle mechanism is to hold the parison while giving counter blow and then to

    give the settle blow.

    Faster Baffle operations Improved alignment between blank molds and baffles Less wear on mold equipment Improved motion and repeatability of baffle arm Prolonged service life of the baffle mechanism 60% less force on the baffle mechanism creates smoother baffle operation No baffle

    arm overlap into adjacent section in the "Off-Position"

    Equal settle blow air pressure build-up in all cavities Quick-Change Baffle Head reduces job-change time Quick conversion capabilities (SG / DG / TG) Improved operating safety Compatibility with existing mold equipment

    PLUNGER MECHANISM

    The function of plunger mechanism is to provide the counter blow air for parison

    formation and to give the plunger ON movement for the formation of the neck of the glass

    container. It consists of a piston and cylinder arrangement.

    For Precision Parison Forming Quick Exchange for Different Processes Low Friction Design for Narrow Neck Press & Blow Precise Plunger Alignment Improved Plunger Cooling Improved Efficiency and Reduced Job-Change time

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    NECKRING MECHANISM

    The neckring mechanism consists of a splined shaft and two cylinders, which are air

    operated. The function of neckring mechanism is to hold the neckring and to transfer the ware

    than the blank mould to the blow mould.

    50% higher cooling efficiency Easier handling at job change Rigid design Well proven damper cylinder

    INVERT MECHANISM

    The invert mechanism consists of a racked piston and a cylinder. The end operations are

    cushioned by two hydraulic cartridges. The function of invert mechanism is to rotate the

    neckring mechanism for parison transfer.

    Cartridge valve

    Predictable cooling helps produce more consistent container quality Reduced cooling time leads to potential for higher production speed Easier mold change helps reduce down time Fumes carried away thus providing better working environment No heat load on section helps increase mechanism life Conversion of VertiFlow Molds to use of existing mold stock

    BLOWHEAD MECHANISM

    The blow head mechanism consists of a piston and rod and a cylinder. The cam and

    cam roller movement determines the swing of the arm. The cam is immersed in an oil well.

    The function of the blow head mechanism is to provide the final blow air for the complete

    formation of the bottle in the blow mould cavity.

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    Blow head arms

    Improved cam design resulted in speed increase up to 37% during down stroke and24% during upstroke

    Less wear on blow head arms and blow heads Prolonged mechanism service life Reduced inventories for blow head mechanism and spare parts Greater maintenance convenience Compatibility with existing mold equipment Externally accessible ball check valves Enlarged air passages Optimized upstroke piston rod cushioning Integrated air and lubrication piping

    VERTIFLOW MECHANISM

    The vertiflow mechanism consists of an air chamber and a damper, which is air

    operated. The function of the vertiflow mechanism is to provide the cooling air for the

    cooling of the blow moulds in an I.S. machine.

    The Production Process

    Glass MeltingThe furnace melts cullet (crushed, recycled glass), sand, soda ash, limestone, and other raw

    materials together. Molten glass usually ranges in temperature between 2,300 and 2,800 F.

    Furnace Control systems monitors and controls firing temperature.

    Gob Distribution

    At the end of the furnace, the glass stream is distributed to different forehearth for the

    respective production line. Molten glass is conditioned in the forehearth and its temperature

    gradient is equalized to ensure uniform temperature homogeneity. Plungers intercept the

    stream of molten glass from the forehearth and cuts gobs individually by mechanical shears.

    The gob distributor then routes the gobs into blank moulds at the I.S Machine.

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    Container Forming

    Gobs of glass are delivered to blank moulds to form a parison. The ring finish and

    internal bore are created. It is then transferred to molded side, where compressed air andvacuum are applied, stretching & cooling the parison to exact inner cavity profile of the

    mould, forming the final shape of the container.

    Annealing Lehr

    The glass containers are then submitted through a special type of oven called a Lehr

    designed specifically for annealing glass. Glass is heated to the annealing point and then

    slowly cooled to room temperature. This process relieves the internal stresses, making the

    glass much more durable.

    Cold End Coating

    After annealing, a layer of polyethylene wax, is applied via a water based emulsion. This

    makes the glass slippery, protecting it from scratching and stopping containers from

    sticking together when they are moved on a conveyor. The resultant invisible combined

    coating gives a virtually unscratchable surface to the glass.

    Cold End Inspection

    All containers are monitored regularly throughout the production process and the

    end product is subject to exhaustive computer, laser, electronic, mechanical and manual

    checks to ensure it passes the most stringent health and safety standard requirements.

    Typical faults flagged up in this process include small cracks in the glass called checks,

    foreign inclusions called stones, bubbles in the glass, called blisters and thin glass. Rejected

    containers are recycled back into the furnace.

    Bottle Filling

    A completely hygienic process throughout all the pipe works and valves are

    stainless steel the only flexi hoses on the site are between tanker and intake bay. Product

    can be processed at sales gravity or high gravity product then diluted and carbonated.

    Flavored Alcoholic Beverages and soft drinks can be made from concentrate or from a

    recipe.

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    Packaging

    Depending on Customer requirements the final product can be packed in a multitude of

    ways. Cases ranging from 4 to 30 bottles, neck though packs and tray and shrink wrappingare all options that are available.

    Palleting & Wrapping

    Glass containers are staked automatically on pallets and separated by cardboard into rows

    before going undergoing the shrink wrapping process. This involves a hood type film being

    placed over the pallet before being heated until the pallet contents are in a compact unit

    ensuring minimal movement of the product in transit.

    Warehousing

    The Pallets of Container Glass move along a railing system into the automated

    warehouse. All individually racked, packaging integrity is maintained. All pallets remain in

    storage until distribution to the customer or directed to the in-house filling lines.

    Roles of Production department in Samyu Glass Pvt. Ltd.

    Creating awareness among department personnel. Identification of resource requirement and provision of adequate resource. Participation in design review when necessary. Implementation of storing/handling instruments. Quality assurance department will be provided information by production department

    for traceability of products.

    Handling, Storing & preservation of materials & products.

    Responsibilities of Productions Department Heads:

    To schedule the production program to achieve the set targets. Monitor and review of manufacturing activities with the shop supervisors to achieve

    targets.

    To monitor and ensure safety precautions are adhered to during production activities.

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    To co-operate with engineering department for any design modification or reworkactivities during production.

    Interacting with customers and updating the production status. To ensure optimum work in progress in the shop floor with the co-ordination from the

    procurement team.

    Motivate the workers. To study and improve the stator pressing process in co-ordination with shop

    supervisors and engineering department.

    To identify the requirements of production resources tools and fixture for effectiveproduction shop floor.

    The relationship between R&D and Production is also very important, if R&D is latein developing a new product the loss in income to the company may be severe. If this

    occurs it may not be possible to meet production targets for extended periods.

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    3.4-FINANCE DEPARTMENT:

    STRUCTURE OF FINANCE DEPARTMENT

    Table-3.9

    Money makes many things happen, goes the saying and obviously financial management is

    the one of the four important areas of the management.

    The major objective of any business firm is to make profit for its proprietor, apart from the

    primary objective of enhancing long-term shareholder value. To reach this objective, the firm

    purchases, organizes and manages various factors of production, and then produces the output

    to sell, and all these processes require funds. Finance is, therefore, said to be the circulatory

    system of the economic body of the firm.

    Financial management is the administrative function, which relates to management of cash

    and credit. The central feature of the financial department is the formulation of the firms

    strategy in determining the most effective use of funds and selecting the most favorable

    sources of additional funds that the firm would require in future.

    MANAGING DIRECTOR

    DEPUTY MANAGING

    FINANCE MANAGER

    ACCOUNTANT

    OPERATIONAL PERSONS

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    Function of Financial Management:

    The function and responsibility of the finance and account wings include the following:

    Analyze the financial results of all operation, report the facts to management andmake recommendations concerning future operations.

    Develop the best plans to obtain the external funds needed Determine the financial resource required to meet the corporation operating and

    capital expenditure program.

    Establish and maintain a system of financial control governing the allocation and useof the funds.

    Planning and forecasting Coordinating of other deportment

    Source: http://www.managementstudyguide.com

    WORKING CAPITAL:

    Working capital is that position of the assets of a business which are used in or related to

    current operations and represented at any one time by operating cycle of such items as againstreceivables, inventories of raw materials, stores, work in progress and finished goods,

    merchandise, notes or bills receivables and cash. In accounting, working capital is the

    difference between the inflow and outflow of funds (net cash inflow).

    WORKING CAPITAL MANAGEMENT:

    Working Capital Management is concerned to manage the current assets, the current

    liabilities and interrelationship that exist between them. Working Capital Managementinvolves both setting working capital policy and carrying out that policy in day to day

    operations. The goal of working capital management is to manage the firms current assets

    and liabilities in such a way that a satisfactory level of working capital is maintained.

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    MAJOR FUNCTIONS OF FINANCE DEPARTMENT

    INVESTMENT DECISIONS:

    Investment decisions refer to selection of various assets on which funds are invested, it is

    concerned with allocation or deployment of funds among various short term and long term assets.

    In short it is concerned with asset mix decision.

    FINANCING DECISIONS:

    Financing decisions also called as Capital Structure decisions are concerned with selection of

    various sources of financing and their appropriate mix. It involves the study of internal and

    external sources of financing. It covers both Debt (External) and Equity (Internal) sources offinancing.

    STRATEGY:

    The company follows the long term & short term strategy for all departments. It is the

    process of establishing long term quality goals &defining the approach to meet these goals

    SOURCES OF SHORT TERM FINANCING

    Credit

    SOURCES OF LONG TERM FINANCING

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    The company is maintaining centralized cash system. All the cash and bank transaction

    disbursement made through corporate office. But factory units are maintaining small petty cash

    transaction, monthly once petty cash transactions reconcile with main accounts. The companymaintaining banking account in different branches:

    I. ANDHRA BANK.

    II. BANK OF INDIA.

    III. STATE BANK OF INDIA.

    IV. SYNDICATE BANK.

    V. AXIS BANK.

    VI. UCO BANK

    Major function of finance department at Samyu Glass Pvt. Ltd. is as

    Follows:

    Preparation of budget, appropriation of accounts, re-appropriations, surrenders asavings.

    The functions relating to its entire obligation like salary to employees payment ofrent,

    Legal and professional charges, audit fees, vehicle etc. Operation and maintenance, printing and stationary expenses, charges like payment of Interest on loan, interest on working capital loan, bank charges and other interest. Company is also getting income from interest through Bank Deposit, company hire Purchase system for purchasing material, vehicles, machineries and equipment. The function relating to purchases include making payment to supplier, getting the Discounting allowed by the supplier and takes the advantage of cash advance being

    received by the customers.

    Administration of Taxes i.e. Sales Tax, purchase Tax, Income Tax etc

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    3.5 MATERIAL MANAGEMENT DEPA