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PART (A)
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INDEX
NO. TOPIC PAGE NO.
1 ORGANIZATIONAL
DESIGN
3
2. PRODUCTION 11
3. MARKETING 16
4. FINANCE 28
5. PERSSONEL 34
5. SOCIAL
RESPONSABILITY
39
6. AWARDS AND
ACHIVEMENT
41
7 BIBLIOGRAPHY 43
8 SOURCES OF
INFORMATION
44
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(A)ORGANIZATIONAL
DESIGN
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1. TOP MANAGEMENT
Managers at or near the upper levels of the organization structure who areresponsible for making organization wide decisions and establishing the
goals and plans that affect the entire organization.
1
(Stephen P. Robbins,2008)
Highest ranking executives responsible for the entire enterprise. These arethose people who are translates the policy into goals, objectives, and sharesprojects which will make the industries future bright. They are the one whotake key steps in every organization. They are the one who are solelyresponsible for every good and bad thing that organization faces2().
It means that if the company earns profit or loss the top management is the
one who are responsible for it.
Main Function of Managements:-
1 Stephen P. Robbins, Mary Coulter, Management(Pearson Education),Page no. 7
2 www.businessdictionary.com/definition/top-management.html
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Frames policy
Decide the goal of the industries
Decide future projects
Does planning, organizing and other management functions
These are the main steps the top management does.
1. HIERARCHY
DEFINATIONOF HIERARCHY
A body of officials disposed organically in ranks and orders eachsubordinate to the one above it; a body of ecclesiastical rulers.3()
In simple term we can say that hierarchy is going from lower level tothe upper level or from upper level to the lower level within theorganization and within the department.
IT IS IMPORTANT FOR ORGANIZATION?
It is important because of the following two reasons:-
i. As there are lots of people within an organization so to control themand make them do their work with unity for achieving the overallobjective of the people.
ii. The work is divided into small parts so to make it economic part with
view to pursuing the ideal of task specialization so essential tomanagerial policy.
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1.1 FIGURE SHOWING GENERAL HIERARCHY IN THEORGANIZATION4(Stephen P. Robbins, 2008)
1. ORGANISATIONAL STRUCTURE
Formal and informal framework of policies and rules, within which anorganization arranges its lines of authority and communications, andallocates rights and duties. This structure depends entirely on theorganization's objectives and the strategy chosen to achieve them.
In a centralized structure, the decision making power is concentratedin the top layer of the management and tight control is exercised overdepartments and divisions.
In a decentralized structure, the decision making power is distributedand the departments and divisions have varying degrees of autonomy.An organization chart illustrates the organizational structure5().
FOUR MAIN ORGANISATIONAL STRUCTURES :-
I. Functional Structure :-
Under this structure the employees are grouped under certain divisions. Forexample all engineers are grouped under engineers. This leads efficiencies inthat type of work because there are lots of expertises available to you.
II. Geographical Structure
4 Stephen P. Robbins,Mary Coulter,Management(Pearson Education),Page no. 6
5www.businessdictionary.com/definition/organizational-structure.html. accesed on 7-02-10
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It means that according to the geographical location we divide our work orcompany take for e.g. we divide on the basis of direction: - then we can
have North, East, West, South or according to region Northern region,Eastern region, Western region, and Southern region.
III.Product structure :-
The company divides its work according to the different products theymanufacture like take Tata industries can be divided into Tata tea, Tata salt,Tata nano, Tata steel. Accordingly the whole industries can be dividing.
IV.Matrix Structure
This structure is a combination of both the functional and the productfunction which makes the employee more efficient and also helps them tolearn some management skills. It helps the organization to eradicate thedemerits of both the structure. And make it more efficient.
4. DEPARTMANTALIZATION
It means that certain works which are of similar nature are groupedunder one roof. It means that they form a department of similar function.The organization is divided into certain divisions like finance, HR,Marketing etc are example of department6().
Different types of departmentalization are :-
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Functional departmentalization :-
In this type of departments the persons which have similar types of skillsand knowledge are grouped together. Example those who are good in ITare grouped together.
Product Departmentalization :-
Grouping activities by product line. It means that those product which areof similar nature are grouped under one manager. For Example in
footwear shop their ladies, gents, and children footwear but each areseparately shown.
Customer Departmentalization :-
Grouping activities on the basis of customer like you may divide customerinto frequent customer, upper level customer (richer), middle level
customer.
Geographic Departmentalization :-
Grouping activities on the basis of territory. If an organization's
customers are geographically dispersed, it can group jobs based on
geography. Like, customer more of them are situated in north so you
need to capture them so you may have a small plant there.
Process departmentalization :-
Grouping activities on the basis of product or service or customer flow.
Because each process requires different skills, process
departmentalization allows homogenous activities to be categorized.
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PRODUCTION
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DEFINATION OF PRODUCTION
Production can be defined as process and transformation of raw inputsinto finished good.
1. PLANT LOCATION :-
It is a particular location at which your plant will be set up. This place isdecided after lots of research and finding as once the place is decided andthen to place it somewhere else will leads to lots of loss for the companyor the organization.
There are certain criteria on which an ideal location is set up :-
1. Easy availability of worabour y tion is whic f loss for the companyor the organization.ecided and then to place it somwhere ker andalso cheap.
2. Easy availability of raw material.3. Market should be nearby so less transport charges.4. At least price best product can be made or available to the
customer.
1. PRODUCT PORTFOLIO :-
The variety of products manufactured or supplied by an organization7().
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It means that for a company which have lots of manufacturing products
so in that case than make an portfolio of one product of similar nature
like a stock market a individual have portfolio of stocks of different stocks
of high risk grouped under one and low risk under one.
Importance of having Product Portfolio:-
It becomes easy for the company to reduce the risk.
Having product in different sector make the company to have lots of
profit from different products.
1. PLANT OPERATION :-
It means that how a plant actually performs his work or how actually thedifferent process can be combined, through which a raw material getsconverted into finished goods.
1.2 FIGURE OF GENERAL PLANT OPERATION
2. QUALITY CONTROL :-
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Quality Control (QC) is a system of routine technical activities, to measure
and control the quality of the inventory as it is being developed. The QC
system is designed to:
(i) Provide routine and consistent checks to ensure data integrity,
correctness, and completeness;
(ii) Identify and address errors and omissions;
(iii) Document and archive inventory material and record all QC activities.8()
Quality control is a process employed to ensure a certain level of quality in aproduct or service. The basic goal of quality control is to ensure that theproducts, services, or processes provided meet specific requirements and
are dependable, satisfactory, and fiscally sound.
DIFFERENT TYPES OF ISO (International Organization for
Standardization) are:-
ISO 9004-1: General quality guidelines to implement a quality system.ISO 9004-4: Guidelines for implementing continuous quality improvementwithin the organization, using tools and techniques based on data collection
and analysis.ISO 10005: Guidance on how to prepare quality plans for the control ofspecific projects.ISO 10011-1: Guidelines for auditing a quality system.ISO 10011-2: Guidance on the qualification criteria for quality systemsauditors.ISO 10011-3: Guidelines for managing quality system audit programmes.ISO 10012: Guidelines on calibration systems and statistical controls toensure that measurements are made with the intended accuracy.ISO 10013: Guidelines for developing quality manuals to meet specific
needs.9
()
8http://www.ipcc-nggip.iges.or.jp/public/gp/english/8_QA-QC.pdfAccessed 23-02-11
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MARKETING
DEFINATION OF MARKETING
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Marketing (or advertising) is the process by which companies advertiseproducts or services to potential customers. It is an integrated processthrough which companies create value for customers and build strongcustomer relationships.
So in a simple term we can say that if a company wants to grow in todaysworld they need to have a good marketing concepts in their mind.
1.3 Figure of Marketing Pix
1. 4 Ps of MARKETING
The 4 Ps of marketing are :-
i. Product
ii. Price
iii.Place
iv.Promotion
Product
The product aspects of marketing deal with the specifications of the actualgoods or services, and how it relates to the end-user's needs and wants. Thescope of a product generally includes supporting elements such as
warranties, guarantees, and support.
It also includes that the product you are preparing should have somesuperiority over the goods of your competitor so that your product is verywell recognize by the customer. And if you do not have it than you have tothink about what the competitor product is giving is there something that he
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is not giving than that thing have to be find out and should be included inyour product to make it successful.
Price
It is a very important from the company or industries point of view becausethe profits of a company depends upon it. The pricing of the products shouldbe fare so as to survive in this type of market. Because if you hike the pricesa little bit your competitor will have low prices due to which you will lose thecustomer. And your competitor will gain so it is important to have fair pricesbut say for a particular period of time you may hike the prices to earncertain amount of profit.
Then there are certain discounts or free items you give so as to attract thecustomer due to which you can earn more and your inventory also getcleared quickly. In this way you can increase your customer and also theprofit that you generate will shoot up.
Place
Develop the habit of reviewing and reflecting upon the exact location wherethe customer meets the salesperson. Sometimes a change in place can lead
to a rapid increase in sales.
You can sell your product in many different places. Some companies usedirect selling, sending their salespeople out to personally meet and talk withthe prospect. Some sell by telemarketing. Some sell through catalogs ormail order. Some sell at trade shows or in retail establishments. Some sell injoint ventures with other similar products or services. Some companies use
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manufacturers' representatives or distributors. Many companies use acombination of one or more of these methods.
For selecting the best method you need to see where there are morecustomer and set a place near to them so that you may able to increase
your customer and also the sales and profit for providing these type ofservices.
Promotion
Promotion includes all the ways you tell your customers about your productsor services and how you then market and sell to them. Small changes in theway you promote and sell your products can lead to dramatic changes inyour results. Even small changes in your advertising can lead immediately tohigher sales.
In todays world the companies whether large or small does the promotionwork and also keeps on changing the ways of promotion and try toexperiments with new things as the environment is dynamic certain thingwhich are working good right now may not work good in future due tocertain reasons that you will know but sometime there is no reason but hasnot clicked in the minds of customers. So to increase your sales you have totry or say adapt to new advertisement or ways of promotion.
1. TARGET CUSTOMER
Every organization prepares certain type of things. Which he will sell it to thecustomer but there are certain customer who like the product and willing toby that product regularly. Such type of customer are called the target
customer.
Through this you can know whether the brand has been approved by thecustomer or not from this way you can decide who are your target customer.Sometime you can also decide it by seeing that where your brand is loved inwhich region of Ahmedabad and their you will find your customer or targetcustomer.
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Importance of having target customer are:-
It is essential to become familiar with your target market, their habits,
behaviors, likes, and dislikes.
Markets differ in size, assortment, geographic scale, locality, types of
communities, and in the different types of merchandise sold and
because of the many variations included in a market it is essential,
since you cannot accommodate everyones preferences, to know
exactly who you are marketing to and the specific fondness of that
market.
To better become acquainted with the ins and outs of your designated
target market legend a market analysis must be completed.
A market analysis is a documented examination of a market that is
used to enlighten a businesss preparation activities surrounding
decisions of inventory, purchase, work force expansion/contraction,
facility expansion, purchases of capital equipment, promotional
activities.
1. PLACE :DISTRIBUTION NETWORK
Place, more commonly called distribution , includes the organizations,locations, and processes that support the creation and fulfillment of
customer demand, and provide any required post-purchase service. Effectivedistribution provides customers with convenience in the form of availability,access, and support .
Distribution decisions have both strategic and logistical dimensions:
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Strategic distribution is a competitive advantage that accrues generallyfrom the configuration of a distribution network and, more specifically, fromthe selection of partners who intermediate between the company and thecustomer by performing necessary fulfillment and service activities.
Logistical distribution , which is geared to efficiently supporting thestrategic objectives, refers to the storage and movement of goods,information, and money between the manufacturer and the final customer.Logistics is sometimes inappropriately viewed as an exclusive operations
function. In reality, marketing often has a major role in the day-to-daylogistics process with responsibilities ranging from sales forecasting anddemand management to inventory planning and the allocation of shortsupplies.
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Fig 1.3 GENERAL FLOW OF DISTRIBUTION
2. PRICES
Market value, or agreed exchange value, that will purchase a definite
quantity, weight, or other measure of a good or service. As the consideration
given in exchange for transfer of ownership, price forms the essential basis
of commercial transactions. It may be fixed by a contract, left to be
determined by an agreed upon formula at a future date, or discovered or
negotiated during the course of dealings between the parties involved. In
commerce, it boils down to what
(1) a buyer is willing to pay
(2) a seller is willing to accept, and
(3) the competition is allowing to be charged.
With product, promotion, and place of marketing mix, it is one of the
business variables over which a firm can exercise some degree ofcontrol. Itis a criminal offense to manipulate prices in collusion with other suppliers,
and to give a misleading indication of price such as charging for items that
are reasonably expected to be included in the advertised, list, or quoted
price. Called also sale price and selling price10().
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Different type of Pricing are :-
i. Competition-based pricingii. Cost-plus pricingiii. Creaming or skimming
iv. Limit pricingv. Loss leadervi. Market-oriented pricingvii.Penetration pricingviii.Price discriminationix. Premium pricingx. Predatory pricingxi. Contribution margin-based pricingxii.Psychological pricingxiii.Dynamic pricing
xiv.Price leadershipxv.Target pricingxvi.Absorption pricingxvii.Marginal-cost pricing11()
1. PROMOTION AND ADVERTISMENT CAMPAIGN
Promotion is communicating with the public in an attempt to influence themtoward buying your products and/or services.
Advertising is a form of communication intended to persuade its viewers,readers or listeners to take some action. It usually includes the name of aproduct or service and how that product or service could benefit theconsumer, to persuade potential customers to purchase or to consume thatparticular brand.
Different types of media can be used to deliver these messages, including
traditional media such as newspapers, magazines, television, radio, outdoor
or direct mail. Advertising may be placed by an advertising agency on behalf
of a company or other organization.
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Importnace of Promotion
i.it helps to increase sales in a competitive market and thus, increasesprofits;
ii. it helps to introduce new products in the market by drawing the attentionofpotential customers;
iii. when a new product is introduced or there is a change of fashion or tasteofconsumers, existing stocks can be quickly disposed off;
iv. it stabilizes sales volume by keeping its customers with them. In the ageof competition it isquite much possible that a customer may change his/hermind and try other brands. Various incentives under sales promotionschemes help to retain the customers.
2. COMPETITORS
Any person or entity which is a rival against another. In business, a
company in the same industry or a similar industry which offers a similar
product or service. The presence of one or more competitors can reduce the
prices of goods and services as the companies attempt to gain a larger
market share. Competition also requires companies to become more efficient
in order to reduce costs.
We can know our competitor by a competiton analysis:-
Competitor analysis in marketing and strategic management is an
assessment of the strengths and weaknesses of current and potential
competitors. This analysis provides both an offensive and defensive strategic
context through which to identify opportunities and threats.12()
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3. EXPORTS
These are nothing but, which are the different product that the company isproducing and sending to different countries outside India. In this way they
can earn lots of money or we can say that business will have lots of foreign
money with them.
It generally mean that when you send product of your company outside
India.
FINANCE
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DEFINATION OF FINANACE
It is a very important part for the business because of this the company orindustries cannot operate very well. For performing our day to day work werequire money. Even to perform any business activity we require money.Without money the business cannot run.
1) SOURCES OF FINANCE
A company would choose from among various sources of finance dependingon the amount of capital required and the term for which it is needed. Thereare two ways they can take money
They can issue share or IPO
They can sell their assets
They can take loan or take money on credit
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In the first we can also call it as ownership capital. In this you give yourcompany shares to the people who in return give you money, and you givethem the shares these are of two types :-
Ordinary shares: These are also known as equity shares and give the
owner the right to share the companys profits and vote at the firmsgeneral meetings.
Preference shares: The owners of these shares may be entitled to afixed dividend, but usually do not have the right to vote.
In the second step we have to just sell our assets and at high price. So thatyou can earn enough profit or enough money from that sale.
In the third step, we can also call it as non-ownership capital. Non-ownership capital includes funds raised from lenders, such as banks andcreditors. Companies typically borrow a fixed amount from a bank, at apredetermined interest rate and with a fixed repayment schedule. Certainbank accounts offer overdraft facilities. This is used by companies to meettheir short-term fund requirements, as they usually come at a very highinterest rate.
Sources of Finance: Duration
Depending on the date of maturity, sources of finance can be clubbed intothe following:
Long-term sources of finance: Long-term financing can be raised from thefollowing sources:
Share capital or equity share
Preference shares Debentures/Bonds of different types Loans from financial institutions
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Medium-term sources of finance: Medium-term financing can be raisedfrom the following sources:
Debentures/bonds Public deposits/fixed deposits for duration of three years Commercial banks Lease financing / hire purchase financing
Short term sources of finance: Short-term finances can be raised fromthe following sources :-
Trade credit Commercial banks Fixed deposits for a period of 1 year or less Advances received from customers Various short-term provisions
1) CAPITAL STRUCTURE
A mix of a company's long-term debt, specific short-term debt, common
equity and preferred equity. The capital structure is how a firm finances its
overall operations and growth by using different sources of funds.
Debt comes in the form of bond issues or long-term notes payable, while
equity is classified as common stock, preferred stock or retained earnings.
Short-term debt such as working capital requirements is also considered to
be part of the capital structure.
We can also say it in more different ways
A company's proportion of short and long-term debt is considered whenanalyzing capital structure. When people refer to capital structure they aremost likely referring to a firm's debt-to-equity ratio, which provides insight
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into how risky a company is. Usually a company more heavily financed bydebt poses greater risk, as this firm is relatively highly levered13().
COMPONENTS OF CAPITAL STRUCTURE
Various type of debts
Preference and ordinary shares
Retained earnings
i.e. liability and equity compose the capital structure.
FACTORS AFFECTING CAPITAL STRUCTURE:-
The three effects of leverage: expected ROE tends to increase, thevariability of the ROE increases, and the risk of financial distressincreases.
The major determinants of the firms capital structure decision are itsimpact on profits, risk and cash flows.
Impacts can be assessed by profit planning charts, financial break-evenanalysis and use of standard ratios
Debt creates value because interest on debt is tax-deductible
The tax incentive to use debt is offset by the resulting financial distressand bankruptcy costs
In a dynamic world, firms depart from the static trade-off optimal debtratio over time, then refinance to bring it back in line with the targetdebt ratio.
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Actual capital structures are constantly changing as firms takeadvantage of market conditions.14
1. BASIC RATIOS
These are the ratios which are useful in calculating ratios which will help
in computing the performance of the company. Financial ratios can be
classified into :-
Liquidity ratios
Financial leverage ratios
Profitability ratios
Equity valuation ratio
Personnel
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1. STRENGTH OF PERSONNEL DEVELOPMENT
It plays a very important part of the organization as the industries has
understand that to increase your production you need to make your
employee happy. Also came to know that their most important assets are
their employees. To make them happy you need to understand their goals,
needs. Try to make such organizational goals which in the end matches the
needs of the employee which will motivate them to do work.
These are some of the other strengths:-
Also helps the organization to low their employee turnover.
Will help them to retain more of employees.
To contribute to the employee development.
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On the other hand, challenges do not cease for the HRM. Modernorganizations can survive in the dynamic, competitive environment of todayonly if they capitalize on the full potential of each employee. Unfortunately,many companies have not understood the importance of the human capitalin successful operations.
1. RECRUITMENT POLICY
In todays competitive world we need to have a good recruitment policy. As
it is important to have best people at the best place or we can say that these
people are very talented people. It will also help the organization to recruitthe people at the time when these people are really required. Your objective
of recruitment must be very clear in the mind of the organization and select
the best qualified people.
A recruitment policy of an organisation should be such that:
It should focus on recruiting the best potential people.
To ensure that every applicant and employee is treated equally with
dignity and respect.
Unbiased policy.
To aid and encourage employees in realizing their full potential.
Transparent, task oriented and merit based selection.
Weight age during selection given to factors that suit organization
needs.
Optimization of manpower at the time of selection process.
Defining the competent authority to approve each selection.
Abides by relevant public policy and legislation on hiring and
employment relationship. Integrates employee needs with the organisational needs.
FACTORS AFFECTING RECRUITMENT POLICY
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Organizational objectives
Personnel policies of the organization and its competitors.
Government policies on reservations.
Preferred sources of recruitment.
Need of the organization. Recruitment costs and financial implications.
1. TRAINING AND DEVELOPMENT
TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures
that randomness is reduced and learning or behavioral change takes place instructured format.
TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT
Traditional Approach Most of the organizations before never used to
believe in training. They were holding the traditional view that managers are
born and not made. There were also some views that training is a very
costly affair and not worth.
The modern approach of training and development is that Indian
Organizations have realized the importance of corporate training. Training is
now considered as more of retention tool than a cost. The training system in
Indian Industry has been changed to create a smarter workforce and yield
the best results.
2. REWARD SYSTEM :-
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Employee reward systems refer to programs set up by a company to rewardperformance and motivate employees on individual and/or group levels.They are normally considered separate from salary but may be monetary innature or otherwise have a cost to the company. While previously consideredthe domain of large companies, small businesses have also begun employing
them as a tool to lure top employees in a competitive job market as well asto increase employee performance.
These can be of two types :-
MONETARY:- These are rewards in which you get money as an reward ofyour best work. There can be money or any other incentive but in form ofmoney.
NON-MONITERARY:- These are rewards which are not monetary but can bea incentive in the form of house or any other form of non-monetaryincentive.
SOCIAL
RESPONSIBILITY AND
ENVIRONMENTAL31
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PROTECTION
MEASURES
Social responsibility is an ethical or ideological theory that an entity
whether it is a government, corporation, organization or individual has a
responsibility to society at large. This responsibility can be "negative",
meaning there is exemption from blame or liability, or it can be "positive,"
meaning there is a responsibility to act beneficently (proactive stance)15.
ENVIRONMENTAL PROTECTION MEASURES:-
As the global warming is increasing regularly and as the atmosphere is
degrading so there is need to have some protection measures. So that wecan make a healthy environment for our future generation and also saving
us. So there are certain measures which are taken by the government like
pollution control act in which they have charge according to the pollution
which they create. There are certain things that a industry can do like they
15 www.busunessdictionary.com
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could clean the waste water which they sent directly into the water reservoir
which will save marine life.
AWARDS AND
ACHIEVEMENTS
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AWARDS AND ACHIEVEMENT
Every company has some good things that are very different from the other
industries for which they are been nominate and get some award.
Similarly there are achievements for the organization like for the quality of
goods you make you may be given ISO199 which can be stand for the
achievement for the industries.
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.
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PART(B)
INDEX
Contents
INTRODUCTION OF THE INDUSTRIES........................................................................40
GENERAL..................................................................................................................46
(A)ORGANISATIONL DESIGN.....................................................................................47
(B)PRODUCTION.......................................................................................................53
(C) MARKETING.........................................................................................................73
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(D)FINANCE..............................................................................................................79
(E)PERSONNEL..........................................................................................................89
(F)SOCIAL RESPONSIBILITY AND ENVIRONMENT PROTECTION MEASURE.................93
(G)AWARDS..............................................................................................................95
AND ACHIEVEMENT..................................................................................................95
Bibliography...........................................................................................................100
SOURCES OF INFORMATIONS.................................................................................101
SOURCES OF INFORMATIONS
CONTENT PAGE
SR.NO NAME OF THE TOPIC
1 INTRODUCTION TO THE INDUSTRIES
i. Brief overview of the industries
ii. History of the company
iii. Introduction to the founding members
iv. Objective of the company
2 GENERAL
a ORGANISATIONAL DESIGN
I. top management
II. Hierarchy
III. Organisational Structure and charts
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IV. Departmentalization and its basis
b PRODUCTION
i. Plant Location
ii. Product Portfolio
iii. Plant Operation
iv. Quality Control
c MARKETINGS
I. 4Ps of Marketing
II. Target Customer
III. Place: Distribution network
IV. Price
V. Promotion and Advertising CampaignVI. Competitors
VII. Exports
d FINANCE
i. Sources of Finanace
ii. Capital Structure
iii. Basic Ratios
e PERSONNEL
I. Strength of the Personnel Development
II. Recruitment Policy
III. Training and Development
IV. Reward System
f SOCIAL RESPONSIBILITY AND ENVIRONMENT MEASURE
g ACHIEVEMENT AND REWARDS
h CONCLUSION
i. Objective of the Industrial Visit
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ii. Student perception about the Company
BIBLIOGRAPHY
SOURCES OF INFORMATION
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INTRODUCTION
OF THEINDUSTRIES
(A) BRIEF OVERVIEW OF THE INDUSTRY :-
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PLASTIC INDUSTRY16(Broking, 2008)
Plastic as a product has come up as a strong substitute for commodities likecement, steel & other metals. This has resulted in the possibility of buildingstructures & products which are not only cheaper but are also built in lesser
time compared to those build by conventional method. Demand for thecompany's products is poised to increase with the ongoing capex in
infrastructure-build up happening in India currently. This includes capex onpower transmission and distribution/ utilities (electrical accessories),telecommunication infrastructure (BT shelters), small cars/ componentsmanufacturing (auto accessories), oil drilling (pre-fabricated structures); aswell as government and corporate spend on education/ sanitation/healthcare/ housing etc.
(B) HISTORY OF THE COMPANY17(Broking, 2008):-
1931-74
1931: Incorporated as The Bharat Vijay Mills in June Established composite mill in Kalol, Gujarat
1975-90
Commenced plastic molded polyethylene liquid storage tanksmanufacturing
Introduced new plastic products like doors, windows, frames andpallets
Introduced quality corduroy fabric in India
1991-2000
16 Company, Angel Research
17 Company, Angel Research
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1995: Name changed to Sintex Industries Commenced manufacture of SMC molded products, pultruded
products, resin transfer molded products and injection molded products Modernisation and expansion of its Textile unit
Commenced structured yarn dyed business
2000 - Present
Alliance with European design houses and a UK based textilemarketing company
Commenced production of pre-fabricated structures for classrooms,booths, kiosks
and office rooms Entered Housing sector with monolithic construction
Acquisition of 74% stake in Zeppelin Mobile Systems First international acquisition - acquired 81% stake in Wasaukee
Composites Inc, USA. Acquired 100% stake in Nief Plastic SA, a French company Acquired automotive business division of Bright Brothers Wausaukee acquired 100% stake of its competitor, Nero Plastic Inc.,
USA.
(A)INTRODUCTION TO THE FOUNDING MEMBERS18() :-
Dinesh Patel
Chairman B.Sc From Bombay UniversityMore than 5 Decades of experience
18 Annual Report 2008-09 Accessed on 02-03-10
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Arun P.PatelVice-Chairman B.Sc From Bombay University More than 5 Decades of experience
Rahul A Patel
Managing Director Bachelors degree in Communications. MBA from USA. More than 24 years experience in textile and plastic
Amit D PatelManaging Director Bachelors degree in commerce
MT from USA 18 years of experience in textile, chemical and plastic
S B Dangayach
Managing Director B.Sc (Hons). P.G.D.B.A from IIM Ahmedabad 3 decades of experience in plastics
L.M. Rathod
Group CFO & CS Graduate in commerce and law, MBA and FCS 2 decades of experience in corporate finance, company law and taxation
Sunil KanojiaGroup President Graduate in Engineering and MBA from IIM-A 23 years of domestic and international experience, across industries
Sintex Group companies are managed by independent professionals
David Lisle
President CEOWausaukee Composites Inc., USA. BS and MS degree in Geology and Geophysics respectively and MBA. 18 years of wide and entrepreneurial management experience acrossindustries
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Executive committee member, American composites manufacturersAssociation
Gilles NiefPresident CEONief Plastic SAS, France. Graduate from IAE University, Lyon Managed family business since 1973 President of Regional French Plastic industry
Indru G AdvaniPresident CEOBright AutoPlast.Pvt.Ltd, India.
Mechanical Engineer and Management Graduate Managing Bright Auto Plastic business since 1970
Sandeep HarshCEOZeppelin Mobile System, India. Masters degree in commerce and MBA. Two decadexs of wide experience across construction, building materialand telecom industry
Neelesh JainCEOZeppelin Mobile System India, Digvijay division Bachelor of Engineering in Electronics
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(B) OBJECTIVE OF THE COMPANY19()
Your Company firmly believes that good Corporate Governance practices will
allow your Company to sustain its competitive strength and take a road tohigh performance achievements. Sintex Industries Limited constantly strivesfor overall development of the Company in line with its objective andthereby ensuring the compliance with its corporate governance policieswhich it has adopted over a number of years. The management andemployees of the Company are bound by the code of conduct and businessethics that leads Sintex to an aspiring future. Your Company has alwaysemphasized on high integrity, moral business values and strong businessprinciples. Through this report Sintex grabs an opportunity to allow itsshareholder's to have an understanding about the modus operandi of theCompany.
MOOTO OF THE COMPANY IS
Innovations for a better tomorrow20()
PHILOSOPHY:-
The philosophy of the Company is to make product which are innovative and
also which are not in demand or their demand is less and try to promote
them. That why they Call them the Active Thinkers who always think
before doing any work and also are the innovative thinker.
19 Annual Report 2008-09 Accessed on 02-03-10
20 http://sintex-plastics.com/about%20us.htmAccessed on 02-03-10
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GENERAL
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(A)ORGANISATIO
NL DESIGN
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(I) TOP MANAGEMENT21
Mr. Dinesh B. Patel Chairman
Mr. Arun P. Patel Vice Chairman
Mr. Rahul A. Patel Managing Director
Mr. Amit D. Patel Managing Director
Mr. S.B. Dangayach Managing Director
Mr. L.M. Rathod Group C.F.O. & Company Secretary
Mr. Sunilkumar Kanojia Group President (Corporate)
Mr. Sanjib Roy Senior President SBU-I (Plastic Div.)
Mr. S. Venkatachalam President SBU-II (Plastic Div.)Mr. B.R. Jayswal President Fin. & Acc. (Plastic Div.)
Mr. Rajan Gulabani Vice President Marketing (Plastic Div.
Mr. S.M. Anerao Vice President Marketing (Plastic Div.
Mr. A.C. Saxena Vice President Marketing (Plastic Div.
Mr. Balakumar Rajgopalan Vice President Housing (Plastic Div.)
Mr. Shashidhar B.C President Marketing. (Textile Div.)
Mr. Ashoke Maitra President Opr. (Textile Div.)
Mr. R.A. Sharma President Proc. (Textile Div.)
Mr. Manven Dubey Vice President MIS
Mr. Siddhartha Jha Vice President Tech. (Textile Div.)
Mr. Rajiv Naidu Head - IR & PR
21 Annual Report
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(II) HIERARCHY
They follow the general hierarchy in their organisation. That is :-
Fig the flow of their General Hiererchy22(, 2010)
IMPORTNCE OF HAVING SUCH HIERARCHY :-
1. It serve as a channel of communication. It makes clear to every officer
as to whom he is to deal with.
2. It enable us to fix responsibility at each level and at each post in the
organization.
3. The scale of through proper channel created by the, principal of
hierarchy ensures strict adherence to procedures and avoid short-
cutting.
22 Mr. Sanjib Roy, President SUB-II, class room discussion
49
Mr. DINESH B. PATEL
CHAIRMAN
Mr. ARUN B.PATEL
VICE-CHAIRMAN
Mr. Rahul A. Patel
MANAGING DIRECTOR
Mr. Amit D. Patel
MANAGING DIRECTOR
Mr. S.B. Dangayach
MANAGING DIRECTOR
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4. It lessens, the work at the higher level and decentralizes the decision
making.
BUT THERE ARE CERTAIN THINGS ON WHICH THEY CAN
IMPROVE UPON :-
1. In this direction flows from top to bottom. So, the lower level manager
has to accept the decision of top level management.
2. It is a very rigid structure and it will not properly work in the
dynamic situations.
3. Delay in disposal of work.
(I) ORGANISATIONAL STRUCTURE AND CHARTS :-
Fig the flow of their Organizational Structure23(, 2010)
They have made their own organisational structure which is based on SBU
that is Strategic Business Units, generally every business unit would have
specific criteria. SBU for example must have
23 Mr. Sanjib Roy, President SUB-II, Live discussion
50
Mr. S.B.
Dangayach
MANAGING
Mr. Sanjib Roy
SENIOR
PRESIDENT
Mr.
Venkatachalam
President
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i. Have its own mission, different from the missions of other SBUs.
ii. Have definable group of competitors.
iii. Prepare its own integrative plan.
Advantages of having SBUs :
1. They can differentiate their products from the large product portfolio.
2. They can preserve the energies and attention of manger and staff as
they both have to concentrate on that product.
3. It is a way you can promote entrepreneurship.
(I) DEPARTMANTALIZATION AND ITS BASIS :-
It is both process and product departmentalization as the organization
is divided into (i) SBU that is on process basis
(ii) each SBU has given certain products like:-
SBU I deals in prefabs products
SBUII deals in electrical and industrial products
Advantage of having together are:-
i. As they can specialize in their own product and also will be able to
give the customer what they like.
ii. As they will be dealing with certain products the work load will
reduce.
iii. As both can easily do their customized contract very easily.
But there are certain things were the industries can improve upon:
i. Instead of having both they can have it separate so that the work
load of manager is less.
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ii. If they do this they will require labour and due to which they can
employ more people which will be good for the economy.
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(B)PRODUCTION
I. PLANT LOCATION
Company Name: SINTEX INDUSTRIES LTD
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Business Type: Manufacturer
Product/Service
(We Sell): Water Storage Tanks, Panel Tanks etc.
Brands: Sintex
Number of Employees: 501 - 1000 People
Factory Size (Sq.meters): Above 100,000 square meters
Factory Location: Nr. Seven Garnala, Kalol (NG) 382721
Number of Employees: 501 - 1000 People
BUSINESS UNIT: Plastic Division
Advantage of the location are:-
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1) As the Plant is near to the Railway Station. It becomes easy for the
company for transportation of the raw material and the sending of
Finished goods at cheaper rate of transport.
2) As the Factory is located at the outskirt the labour there will be easily
available and also at cheap rate.
I. PRODUCT PORTFOLIO
The industries deal in lots of products but we have taken only the plastic
section products as we have to do specialization in those products only.
PRODUCTS
BUILDING INTERIORS INDUSTRIAL ELECTRICAL COUNSUMER CUSTOM
MOULDING
A) BUILDINGS AND CONSTRUCTION
I Sintex Water Tanks
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Advantages:
Rust proof
Light weight and durable
Hygienic
Maintenance-free
Tested and approved by leading laboratories, industries andinstitutions
Available in various capacities from 200 litres to 25,000 litres or evenmore
II Reno Water Tanks
Unique Features:
One-piece moulded without seams or joints and hence leak-proof
Hygienic
Maintenance-free
Light weight and hence easy to carry and install
Removable lids with clamping device
Computerised ribbed design for better strength
Versatile
Aesthetically appealing
Optimum design for economy
III Underground Water storage Tanks (SUMPS)
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Unique Features:
One piece moulded without any joints, seams or welds
Impermeable to roots of trees
Rust proof and leak proof
Hygienic and suitable for potable water
Computerized design for excellent strength
Non-porous and does not allow contamination of water kept in thetank
Lightweight and easy to transport
Easy to install
Durable and economical
IV Septic Tanks24()
Unique Features:
Eco-friendly
Rust proof and Leak proof
Durable
Light weight and easy to transport
Easy to install
24 http://sintex-plastics.com/building_construction.htm Accessed on-30-03-10
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Economical than conventional septic system
Excellent performance on reduction of BOD
V FRP Underground Water Stroge Tanks
Unique Features:
Compliance to FDA grades
Impermeable to roots of trees
Rust proof and leak proof
Hygienic and suitable for potable water
Structurally strong Computerized design for excellent strength
Non-porous and does not allow contamination of water kept in thetank
Lightweight and easy to install / transportDurable and Cost effective
VI PVC Pipes
Unique Features:
Non Toxic
Smooth Inside Bore
Low Installation Cost
Chemical Resistance
Non Bio Degradable
Flexible
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VII FMD Doors
Unique Features:
Reinforced with excellent polymeric reinforcement to avoid weathereffects
Suitable for toilet, bathroom and kitchen door
Options of single & multi panel door
Available in all standard shades of SINTEX
VIII Royal Doors
Unique Features:
Extremely Elegant
Beauty with Durability
Perfectly designed for stability & versatility
100% Water Proof & Weather Proof
Rot Proof & Termite Proof
100% Maintenances Free
IX Solidor Doors
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Unique Features:
Made out of 5 mm thick PVC foam sheet
Reinforced with suitable MS tube
Suitable for toilet and bathroom door
A)INTERIORS
i. Sintex Plastic Section
Unique Features:
No painting or varnishing
Light-in-weight
Consistency in quality
Easy to install
Time and labour saving
High durability
Wide colour range
High aesthetic appeal
Reusable
Available with Polyurethane Foam or glasswool for improved thermaland sound insulation properties in selected sizes
i. Reno Plastic Section
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Unique Features:
No painting or varnishing
Light-in-weight
Consistency in quality
Easy to install
Time and labour saving
High durability
Wide colour range
High aesthetic appeal
Reusable
Available with Polyurethane Foam or glasswool for improved thermaland sound insulation properties in selected sizes
A) INDUSTRIAL
I Pallets
Unique Features:
Cost effective
Compatible with all existing lifting systems
Easy to clean & wash Excellent resistance to most chemicals
Maintenance-free
Rot proof
Extensive testing to ensures quality standards
Secure
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Robust design to render long service
Meets all GMP requirements
Hygienic
Water proof
High impact strength and rigidity
II Chemical / Acid Storage Tanks (Cylindrical Vertical)
Unique Features:
Best raw material base
Seamless construction
Reasonable cost
Excellent after-sales-service
Latest manufacturing technique
Immunity to maintenance
Long life
III Injection Moulded Pallets
Unique Features:
Cost effective
Compatible with all existing lifting systems
Easy to clean & wash
Excellent resistance to most chemicals
Maintenance-free
Rot proof
Extensive testing to ensures quality standards
Secure
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Robust design to render long service
Meets all GMP requirements
Hygienic
Water proof
High impact strength and rigidity
A)ELECTRICAL
SMC Meter Boxes
Unique Features:
Single piece moulded without any joints
Concealed metal hinges
Mounting screws fitted from inside
Metal hardware for wire seal
Adequate space for meter and cut-outs
Light weight, yet strong
Wide range for different applications Excellent weatherability
Safe for consumers
Prices matching with conventional meter boxes
SMC Distribution Boxes
Unique Features:
High heat distortion temperature (2000C) as per IS: 10192)
Fire retardant-Class FV as per IS:11731 Part II or V as per UL 94
Non-fusing
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Shock-proof & rust-proof
Rot-proof and termite resistant
100% weatherable-ideal for use both indoors and outdoorsElegant appearance.
SMC Danger Notice Plates
Unique Features: Excellent finish and dimensional consistency
Excellent outdoor weather ability
Rust proof
Withstands solar radiation and heavy rains
Maintenance free: Base material SMC does not corrode. Hence, paintingremains in place for longer duration
Transparent coating over the printed matter is also weather resistant
Pilfer proof: Zero resale value in scrap market No fear of vandalism
A)COUNSUMER
Waste Bins & Containers
Unique Features:
Moulded from special UV stabilized grades of polyethylene
Rust-free and maintenance-free
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Colourful and elegant
Light weight and easy to handle
Hygienic and easy to clean
Strong and durable
Can be provided with fittings for locking bins to posts or walls or otherpermanent members of a building.
Multi Bins
Unique Features:
Made from virgin HMHDPE material
High impact strength
Nestable
With twisting lock lid
Hygienic and easy to clean
Light weight and easy to handle
Colourful and elegant Washable
Specially designed for more versatility
Solar Water Heating System
Unique Features:
Safe & Hygienic
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Low maintenance and operating cost
Easy to install
With improved PUF design
Plastic based materials used hence no problems of corrosion/rust
Top cover of glass not required
Ideal for bungalows, flats, hospitals, hotels, hostels, canteens,industries, govt. Houses.
Floating Type Bio Gas Plants
Unique Features:
Moulded in One Piece
Ready to use, install, dismantle & maintain
Supplied in knock down condition
Easy to assemble at site by the way of bolts
No problems of leakage
Can be used over ground or under ground
No hassle for cleaning
Easy to relocate, if required
Milk Cans
Unique Features:
Manufactured from FDA grade of polyethylene materials hence absolutely non-toxicand odour free
Seamless & smooth inside surface for prevention of bacterial contamination
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Inherent non-stick property prevents from accumulation of fats in the inner surface
Economical alternative to the conventional Milk Cans
Easy to clean.
Road Dividers
Unique Features:
One piece moulded
UV Stabilized
Can be made available in different colors & shapes as per customersdesign
Self supporting
Ideal supplement to conventional dividers as maintenance free,corrosion free & all weather proof
Planters
Unique Features:
No bleeding, flaking or chipping
Does not spoil carpet or floor as available with collecting trays
Available with holes for water drainage
100% simulation of terra cotta finish
A special formulation that does not stunt growth of the plants
Enhances the get-up of the inner decor
Light weight and hence can be shifted easily
Remains elegant for years
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I. PLANT OPERATION
These are the 12 main process that are been performed within a singleplant. And it is Asias most integrated plastic processing industry.
*Rotational Moulding*Extrusion*Compression Moulding*Blow Moulding*Injection Moulding*Pultrusion*Reaction Injection Moulding
*Resin Transfer Moulding*Twin Sheet Thermoforming*Single Sheet Thermoforming*Light RTM And Vacuum Bag Infusion Molding*Liquid Composite Molding
The whole processes is not discussed with us but only on two process we
have some primary dat. They are only two processes on which we are doing
specialization
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PROCESS
ROTO MOULDING EXTRUSION
PRE MOULDING ROCK ANDDEPT ROLL
EXTRUDER CALIBRATION HAWLON PART CUTTER UNIT TILLING
Roto moulding(, 2010)
Raw material is LLDPE- linear low density Poly Ethylene
PRE MOULDING DEPT
It is that department in which the LLDPE is Moulded before sending it to the
Rock and Roll Machine.
There is one rock and roll machine in which this LLDPE is heated with the
help of natural gas. In this Machine the raw material is heated for 9min.
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And then there is cooling station just opposite of rock and roll machine
where it is been cooled. There are 4 tanks in which heating is done and
there are 2 shifts in this process 7 to 4 and 4 to 11.
Extrusion Process(, 2010)
Parts involve in it are:-
1. Extruder
2. Calibrations part
3. Haulon part
4. Cutter unit
5. Tilling or collection unit
Raw material- PVC (polyvaride carbonate)
This is use as a material because the other material like cement and iron can
get effected by the environment like iron get rusted. So as this is of plastic
its durability is more and it does not get rusted also.
1. Extruder
In this part the profile is being heated and various heat stabilizers are being
added to the profile to heat it well then the profile is push ahead in that
machine the whole profile is being shaped properly then again pushed ahead
for next process.
2. Calibration Part:-
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In this the profile is being cooled and the shape of this profile is maintained
and the profile is been cooled with vacuum chillers being installed at the
machine.
3. Haulon part.
The profile is been kept and it is been further cooled and dyes are applied on
the profile.
4. Cutter unit
In this part now the profile is been cut into different length which is been
given by the customer and accordingly that shaped the profile is been
cutted.
5. Collection part
This the part in which the ultimate result is been shown. The output is
65kg/h to 70kg/h. For single door shutter 150kg/h
The extrusion process is a continues process.
The next process is the ahead process after the collection part that is
Lamination department
Raw material is the profile that we collected from the extrusion process
In this we can find profile in glossy finish or in matt finish.
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There are basically 3 parts
i. Rolling- in this rollers are been moved on the profile in which
certain chemical solvent are used.
ii. In the second part the profile is been given either the glossy ormatt finished are been done according to the customer demand.
iii. UV chamber- this is an ultra violet chamber where the profile is
been dried completely.
We can find the glossy finish which can find it with D and M for matt
finish.
I. QUALITY CONROL.
There is in-house quality departments and there are 3rd party which does the
quality checks if they are very technical products. They also have certificate
like ISO 9000 which itself says that the product have that quality with that
product. The other are ISO 9000/9001/9004/19011: 2000
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(C) MARKETING
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I. 4Ps OF MARKETING :
1 Price
They have their own pricing policy. They have set their own policy. They
provide discounts only when the order is very bulky. They are facing lots of
problem in the regional area to fix the prices, as they are facing tough
competition from these regional players.
2 Product :-
They have lots of products in their bank which help them to cover the risk of
the other products and also they are a national player and there is no one
who can touch them as they are pioneer in the plastic tanks of all size. They
have their branch and also which help them to send their product in different
which also help in reducing their risk and make them ahead of the other
player.
3 Place :-
They do not have special place they send to their near branch and the
customer can go and take from that near branch where they have send the
product. They have a station just near to place where they can transfer the
product from one place to another very easily.
4 Promotion :-
They not do so much of advertising as they are pioneer in some of the
product but they have started their new product that is Reno for which
they have done its promotion activity but not on the large scale. They have
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only have hoarding which is more in the Kalol where they have the company
situated.
II TARGET CUSTOMER :-
Our enviable position in the market, client centric approach, quality productsand innovation driven ideas have enabled us to garner a huge client base inEuropean, American, African, and Asian markets including countries likeFrance, Germany and USA. We are proud to have Siemens, Eicher, RelianceEnergy, Reliance Infocomm, Larsen & Toubro, UNICEF, WHO and CARE asour major clients.
Our commitment towards quality, client centric approach and innovationdriven ideas have enabled us to garner a huge client base in European,
American, African, and Asian markets including countries like France,
Germany and USA.
Our major clients in INDIA are:
ABB
Siemens
Eicher Reliance Energy
Reliance Infocomm
Larsen & Toubro
MK Electric
UNICEF
WHO
CARE
Torrent Pharma
Cipla Ranbaxy
GE Motors
III PLACE : DISTRIBUTION NETWORK :-
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This is the way they generally distribute their product to the customer. They
send some of the sale in head office and some they kept with them and
customer can take from any one of them, in the way the customer feel
convenient.
IV PRICE :-
They have normal pricing system that is what the market sets they follow
that price they do not have any pricing strategy. They only change the price
when suddenly the price of the raw material has increased so it may happen
that they will charge so that the profit of the company should not getaffected.
V PROMOTION AND ADVERTISING CAMPAIGN :-
They not do so much of advertising on TV as they have given only one AD
after which they have not given but they do give some AD in paper but not
on regular basis occasionally and also the use less of radio and othermedium of the promotion to increase their sale as they are having little
monopoly in some of the product which so do not required but now they do
will require the promotion so to create awareness for the usage of more of
green-product so that we will be able to see a bright future ahead. So, to
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OFFICE
BRANCH
OFFICE
SALES
SALES
CUSTOME
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see a good sale in their green-products they will have to do some promotion
work, so as to increase the sales.
VI COMPETITORS :-
They have many competitors which do affect the work of industries and they
also sometime have to bear loss because of the competitors. Though they
are a national player. Their major part of income come from the southern
and western region. And in north Delhi is a big market. Some of their
competitors are:
SupremInd VIP Inds Finolex Inds INEOS ABS SRF Polymers Kalpena Inds Wim Plast TPL Plastech
EPC Inds Xpro India-PMS Bright Brothers Mold-tek Packaging
VII EXPORTS
Textile exports that were growing moderately till 2004-05, registered a
sharp growth of 21.7 per cent from USD 14,000 million in 2004-05 to USD
17,000 million in 2005-06 (following the scrapping of quotas) and USD
19,620 million in 2006-07. Currently, India has a 3.5-4% share in global
textile exports and 3% in clothing exports. While Europe continues to be
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India's largest export market with a 22% share in textiles and 43% in
apparels, the US remains the single largest buyer of Indian textiles and
apparels with 10% and 32.6% shares. The other countries on India's export
map include the UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and
Japan.
Readymade garments constituted the largest export segment accounting for
45% of textile exports and 8.2% of India's total exports. This segment
benefited significantly following the termination of the multi-fibre
arrangement in January 2005. The export of readymade garments from
India is expected to touch USD 14,500 million by 2009-10 with a cumulative
annual growth of 18 to 20%, according to the Apparel Export Promotion
Council.
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(D)FINANCE
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I. SOURCES OF FINANCE
Rs. In Crores
SOURCES OF FUNDS 2009 2008
Share Capital 27.10 27.10
Convertible Share
Warrants
- 47.80
Reserve and Surplus 1,667.82 1464.28
Secured Loan 1,052.65 938.16
Unsecured Loan 1,243.77 988.10
FIG Sources of Finance25
25 Annual Report Accessed On 02-03-10
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II. CAPITAL STRUCTURE :-
Non-convertible debentures
On February 18, 2009, the Company issued 11.50% secured redeemablenon-convertible debentures aggregating to Rs. 250 crores to LIC of India on
a private placement basis for financing capital expenditure on existing
operations, general corporate purpose and to meet long term working capital
purpose as well as other expenditures as permitted by the investors.
The debentures would be redeemable in three annual equal installments at
the end of the seventh, eighth and ninth year from the date of allotment.
Preferential warrants allotment
During the last year, the Company allotted 1,32,00,000 warrants at a price
of Rs. 454.74 per warrant (10% of the consideration received upfront) to the
Promoters Group on preferential allotment basis and the warrants are
optionally convertible into equity shares of Rs. 2 each within 18 months of
allotment date.
During the year under review, the promoter group to whom the warrants
were allotted informed the Company of not exercising the balance warrants
of 1,05,12,000 and the Company, thereby, forfeits the 10% upfront amount
of Rs. 47.80 crores as per the SEBI Guidelines and credited the amount to
capital reserve.
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Rs. In Crores
SOURCES OF FUNDS 2009 2008
Share Capital 27.10 27.10
Convertible Share
Warrants
- 47.80
Reserve and Surplus 1,667.82 1464.28
Secured loan 1052.65 938.16
Unsecured Loan 1243.77 988.10
Fig- capital structure26
26 Annual Report Accessed on 02-03-10
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III. BASIC RATIO :-
A. LIQUIDITY RATIO-
i. CURREN RATIO-
Rs. In Crores
2009 2008
Current Assets
2722.58 2628.72
Current Liabilities
934.76 1004.58
CR=CURRENT ASSETS/CURRENT LIABILITIES
2007-08 = 2722.58/934.76= 2.91
2008-09 = 2628.72/1004.58= 2.62
ii. Quick ratio=LIQUID ASSETS/CURRENT LIABILITIES
(Net C.A= TOTAL CURRENT ASSETS-INVENTORIES)
2007-08= 2345.48/934.76= 2.51
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2008-09= 2326.5/1004.58= 2.32
Rs. In Crores
2009 2008
Net Current Assets
2345.48 2326.5
Current Liabilities
934.76 1004.58
A. LEVERAGE RATIO
I. DEBT RATIO-
i. DEBT TO EQUITY RATIO = Debt/equityRs. In Crores
2009 2008
Debt
2,296.42 1,926.26
Equity
1,704.92 1,539.18
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2007-08= 1926.26/1539.18= 1.25:1
2008-09= 2296.42/1704.92= 1.35:1
I. Interest Coverage Ratio:-
INTEREST COVERAGE RATIO=EBIT/INTERST
EBIT=PROFIT BEFOR TAX +INTEREST
Rs. In Crores
2009 2008
EBIT
491.93 366.26
Interest
81.95 64.32
2007-08= 366.26/64.32= 5.69 times
2008-09= 491.93/81.95= 6 times
A. VALUATION RATIO
i. EPS(Earning Per Share)= PAT-PREFERNCE DIVIDEND/
NO of equity share
Rs. In Crores
2009 2008
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Pat-Preference
Dividend 325.12 230.32
No of Equity Share
135495433 117872309
2007-08= 325.12/135495433= 24
2007-08=230.32/117872309= 19.54
ii. DPS(Dividend Per Share)= TOTAL DIVIDEND PAID/NO OF
SHARES
2007-08=13.65/117872309= 1.10
2008-09=15.02/135495433= 1.01
Rs. In Crores
2009 2008
Total Dividend Paid
15.02 13.65
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No of Equity Share
135495433 117872309
A. PROFITABILITY RATIO
i. NET PROFIT RATIO= PAT/NET SALES*100
NET SALES= SALES OF RETURN-EXCISE DUTY
Rs. In
Crores
2009 2008
Profit After Tax(PAT)325.12 230.32
Net Sales
3063.88 2274.23
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2007-08= 230.32/2274.23*100=10.13%
2008-09= 325.12/3063.88*100=10.61%
ii. ROCE RATIO
RETURN ON CAPITAL EMPLOYED= PAT/CAPITAL *100
EMPLOYED
CAPITAL EMPLOYED= (EQUITY CAPITAL+PREF CAPITAL+LONG
TERM DEBT-MISCELLANEOUS EXP)
Rs. In Crores
2009 2008
Profit After Tax(PAT)
325.12 230.32
Capital Employed
4174.47 3584.55
2007-08= 230.32/3584.55*100= 6.43%
2008-09= 325.12/4174.47*100= 7.79%
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(E)PERSONNEL
I. STRENGHT OF PERSONNEL DEVELOPMENT :-
Their strength lies in our people the employees of Sintex group, in India
and abroad, are the organisations greatest assets. In addition to that, we
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cherish the companys values that are ingrained in us.
Their People: Our strength lies in our people the employees of Sintex
group, in India and abroad, is the organizations greatest assets. In addition
to that, we cherish the companys values that are ingrained in us.
Innovation Driven Ideas: The key to Sintex Groups growth is the
continuous innovation. The spirit of Active Thinking drives the organization
on its path. The innovative ideas are not just limited to the products but
they are also implemented in the manufacturing processes, markets and
management policies.
Focus: The groups focus all these years has been to align its businesses
with the growing sectors of economy. Be it health, education or telecom,
Sintex is present in all these growing sectors, hence ensuring growth even in
the hard times.
Global footprint: From a Kalol based Indian company, Sintex has become
a global group with its presence in 9 countries across 4 continents. Sintex
group serves its clients across the globe and most of them are part of the
Fortune 500 Companies list.
Sintex encourages a continuous learning environment, promoting
meritocracy. During the year under review, the Companys employee
strength touched 3,427 people. The Company was actively engaged in
imparting functional and attitudinal training to employees for maximum
productivity; other initiatives comprised a regularized recruitment process as
well as a fair and unbiased performance appraisal system with an inbuilt
feedback system. During the year under review, the Company created a
compensation structure that provided members with tangible and intangible
benefits.
II. RECRUITMENT POLICY:-
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They goes for the placement of new people to different colleges and different
job institutes and select them after they pass the different exam they give
and from the overall criterias and then they will select the best employee.
They do selection in this manner:-
RECRUITMENT
Different colleges Different Job institutes
This way they do the recruitment and then they also take exam of all of
these people and then on the overall criterias they select the best
employees.
III. TRAINING AND DEVELOPMENT :-
They do provide training to the new persons who come to join the firm andalso to the labour who is going to do some technical work these are only for
2-3 months and after they comes to the site and starts working.
IV. REWARD SYSTEM:-
They do provide reward to the in both non-monitery and monitery.
According to their work and the way the person handle the responsibility and
does the work and the end result would be seen and if it is fruitful for the
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company then he would get the inventive. Which could be in money terms
and may not be in money term but in terms of tangible things.
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(F)SOCIAL
RESPONSIBILITY AND
ENVIRONMENT
PROTECTION MEASURE
There lots of work being done in the field of social responsibility as the
chairman of Sintex has itself started a training institute where they will train
the people how the will use the green product efficient. And also for saving
the environment they are the one who have started green products. In this
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the company will manufacture solar cookers, solar water heater, bio-gas
panel etc. These type of work if continued will surely be accepted by any
person and will buy these environmental friendly product for sure and in
future their need would definitely rise.
They are also making houses from the PVC which will be much economical to
buy and also to use them which will not only give you shelter but also want
that every people should have so that there would be no people who do not
have a house to live.
They also have grown lots of trees within their plant and many to get fresh
of air as the people work who work for the whole day and after finishing the
work they will enjoy the beauty of the nature.
So for every industry should try to not provide only environment of working
condition place but also the surrounding areas so that the worker would also
feel more good.
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(G)AWARDS
AND ACHIEVEMENT
I. ACHIEVEMENTS27()
1975
27 http://sintex-plastics.com/about%20us.htmAccesses on 03-02-10
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Moulded Polyethylene Industrial Containers and Tanks of sizes up to 10,000liters
1977
Material Handling Containers for Industries and Institutions
1978
Water Tank
1985
Plastic Sections for Conversion into Partitions, False Ceilings, Wall Panellings,Cabins, Cabinets, Furniture etc.
1988
Plastic Doors, Windows and Frames
1989
Insulated Containers, Sandwich Panels, Agri Containers and Biogas Holders
1990
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SMC and SMC Moulded Products, Pultruded Products, Resin Transfer Moulded(RTM) Products, Blow Moulded Products, Injection Moulded Products etc.
1995
Water Filters cum Purifiers
2000
Solar Water Heaters
2001
Prefabs production was started
2002
Turnkey Blow Moulding & Profile Extrusion Plants
2004
FRP Underground Storage Tanks
2005
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ISO 9001 CertificationMonolithic Concrete Construction Technology
2006
UL Listed for FRP Underground Petroleum Tanks
A. AWARDS
SINTEX now a Superbrands
The name is now a superbrands, as per the second Business Superbrands
series issued by the Superbrands Council of India.
Bright AutoPlast Awarded by Maruti Suzuki
OBJECTIVE OF INDUSTRIAL VISIT
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As we are the future managers of our country and to take our country to the
top position we should have both the practical as well as theoretical
knowledge. As we have studied all the theories so to give us that practical
knowledge was the main objective of the industrial visit.
The objective of industrial visit was to make us feel that how an industries
work and how it is been managed by any person, different things that are
been manufactured and how the company finance such a big plant and the
different way they are worked. How and different way every goods are been
distributed to the consumer, how we recruit the people and also we can say
that what we have studied in theory were been implemented in the industry
but in a innovative way.
MY PERCEPTION ABOUT THE COMPANY
I feel that if I was a chairman of such a big industry I would not be able to
handle such a work with such a responsible way and would not have made
the company to reach such a height. So we should all salute the M.D of this
company Mr. S.B Dangayach. The industry has very bright future if such
types of persons are given jobs. And also though the company had the bad
face of recession as every company does but is now gaining the momentumback and the way they think make them different from any other industry as
they are not only in textiles but are a good player in plastic segment to
specially their GREEN PRODUCT idea is very good and will help the company
to grow more.
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