A PROJECT REPORT ON ANALYSIS ON
GODOWN MANAGMENT AT BALLARPUR INDUSTRIES LTD.
1
CONTENT ACKNOWLEDGEMENT PREFACE COMPANY PROFILE: HISTORY & BACKGROUND INTRODUCTION LOCATION OF BILT UNIT SHREE GOPAL PAPER MAKING PROCESS BRAND QUALITY REPORT VARIOUS DEPARTMENT AT UNIT SHREE GOPAL STRUCTURE OF THE MARKETING DEPARTMENT POLICIES OF ORGANISATION VISION AND MISSION OF BILT SWOT ANALAYSIS OBJECTIVES MERGERS & ACQUISITIONS RESEARCH METHODOLOGY DATA COLLECTION ASSUMPTION OF THE STUDY INTRODUCTION TO GODOWN MAMAGMENT FINDINGS & ANALYSIS LIMITATION OF THE STUDY SUGGESTION CONCLUSION BIBILOGRAPHY
2
ACKNOWLEDGEMENT Perseverance, inspiration and motivation have always played a great role in the success of any venture. At this level of understanding it is often difficult to understand the wide spectrum of knowledge without proper guidance and advice. This report conveys my heartiest thanks to Mr.XYZ (DY.Manager ) and all the Officers and Staff Members of Marketing and Service Department and I am also thank full to all the team of this Unit. Who have given me their full cooperation and devoted their valuable time for rendering me their needy services and guidelines during the training period. With those sincere and precious efforts, I have been able to complete my practical training successfully. Again I wish to express my sincere gratitude to Mr. XTZ ( DY.Manager ) Marketing & service department for providing me the training facilities. WITH SINCERE THANKS
3
PREFACE Practical training is an important part of the theoretical studies. It is of an immense importance in the field of management. It offers the student to explore the valuable treasure of experience and an exposure to real work culture followed by the industries and there by helping the students to bridge gap between the theories explained in the books and their practical implementations. Training plays an important role in future building of an individual so that he/she can better understand the real world in which he has to work in future. The theory greatly enhance our knowledge and provide opportunities to blend theoretical with the practical knowledge where trainees get familiar with certain aspects of industries, like shop floor management, production process and industrial relations. I feel proud to get myself trained at Ballarpur Industry Limited (Unit Shree Gopal), Yamuna Nagar. Ballarpur Industry Limited is the leading paper manufacturing Company in India. I have taken up training in Marketing & Service Department and have studied and explained the need for Dispatch MANAGMENT as well as its management and financing. I availed this opportunity in a very satisfactory manner and have tried to cover each and every aspect that. I came across during my training period. 4
HISTORY AND BACKGROUND Shree Gopal Unit of Ballarpur industries Ltd was originally established by The English companies known as “Foundation Company of England” in 1925. As the time of its establishment its name was “Punjab pulp and paper mills” and its production capacity was 15-20 tones of paper per day. This was based on grass and street collected rags as a basic raw material. Since there was no electricity in the area those days, it had its turbine and generator. Financial position of the company was not sound; so all these factors forced the mill to shut down. The mill remained shut for nearly 11 year. Despite of the sporadic efforts by the management, the mill could not be restored and was ultimately brought under liquidation. The mill was auctioned in 1936 and purchased by Lala Karam Chand Thapar, In 1951, the group of Madhya Pardesh, on the recommendation of shroff committee, offered in 1988 Himachal Pradesh, Boilers and Power plant and TG Turbine was installed. The production of electricity was raised to 18mw. In 1991, the ABL recovery boilers started functioning and pollution was controlled. Today, this unit has got 6 paper machines and 1 coating plants & a sophisticated specialty plant. It has also taken first step for environment protection with the installation of electrostatics precipitator for pollution control.
5
INTODUCTION BALLARPUR INDUSTRIES LIMITED, popularly known as BILT is ‘efficiently managed, ‘financially sound’, and ‘self sufficient and ‘self made company’ with paper as its core business and also having interest in chemicals, foods and IT. BALLARPUR INDUSTRIES LIMITED.(BILT) pomoted by L.M Thapar is the leader in Indian paper industry with and annual production capacity of 480000 MT spread over in five manufacturing facilities produces ordinary and superior varieties of writing, printing, and specialty papers etc. BILT, which is originally incorporated in 1945 as Ballarpur straw Board Mills, has changed its name in march 1946 to Ballarpur paper and straw board mills and again it was changed to the present name in October 1975.since then the company has grown to be a leader in paper industry by continuous expansion and modernization of its capacity and plant and strategic acquisition expansion and modernization of its capacity and plant and strategic acquisition. In 1969 the company has merged Shree Gopal paper mills with itself and the company which has acquired the sinar mass pulp and paper (India) Ltd. (BGPL) which has state of the art 145000TPA paper plant and a market leader in the high end coated art paper and art paper board segment in India is planning to bring the paper unit of BGPL into its fold and consolidating its paper operation under one umbrella. The company which was one of the most diversified companies in the preliberalization era of industrial licensing with interests 6
in paper, chemicals (phosphoric Acid, STPP, Chlor, Alkalies), Vanaspati &Edible oils and glass has decided to focus on its core competence that is paper and exit form non-core business,. First major steps on these lines were initiated in the year 1994-1995 with having off glass business, therefore the company sold its vananspati and edible oils business in 1996-97 and is 1998, the chemical division of the company with its plant at Karwar, karnatka . To complement its restructuring and to enable it to emerge as a stronger and more competitive organization, the company is implementing a project involving modernization and expansion of capacity at its unit in Shree Gopal, Ballarpur and sewa by 105000 TPA is planned over a two – year period from 200001to2000-03 for Unit Sewa and Shree Gopal, In the second phase, 42000TPA of capacity is expected to come on stream at Unit Sewa resulting in increasing in capacity by 37 tones from the earlier 125 tones of unbleached pulp per day. The company has also completed installation of a 2.4 meter wide blade coater at Unit Shree Gopal in FY 2001-02.BILTenterd into strategic alliance with IIansol of South korea to provide world class blade coated paper to the Indian customer. It is the first company in the world to commercially exploit the fractionation of bamboo and has applied for the world patent for this process. It has also entered dint o direct retail distribution with the launch of A4 size 100-sheet pack of Royal Executive Board. Mr.Gautam Thapar, Chairman of BILT, has been associated with Bilt since 1986 when joined the company as shop floor management apprentice –paper mills and was instrumental in turning around BILT in the late 1990s. 1) Ballarpur Unit, Distt. Chanderpur , Maharashtra 2) Shree Gopal Uint, Yamunanagar, Haryana 7
3) Sewa Unit, Orissa 4) Unit Ashti in maharastra From the Beginning in paper, BALLARPUR INDUSTRIES LIMITED is now a multifaceted enterprise with interest allied to as well as remarkably varied from paper. The operations of the company traverse products divisions as well as international boundaries, making it today the core BILT GROUP of the and forming together with subsidiary and associates companies a group in itself with its center of operations at its head office New Delhi.
8
LOCATION OF BILT Unit Shree Gopal is situated in the heart of Yamuna Nagar city, The Unit is spread over an area of 3sq. Km and also has modern residential colony for its employees with all modern amenities like-hospital, school, club, playground, community hall etc. The Unit is situated in the midway to the railway station and the bus stand. It has got its own residential colony. There is no problem of waste disposal. The unit has its own railway line running inside so that transportation of raw material is facilitated. BILT is a small town itself with all facilities available.
9
UNIT SHREE GOPAL YAMUNA NAGAAR YAMUNA NAGAAR is 230km .away from Delhi & 90km from chandigarh. The city is well connected with chandigarh, Delhi and Saharanpur by Rail & road. Unit Shree Gopal is at Yamunanagar in Haryana which is contributing 22% towards total production of paper by BILT. This mill was taken by thapar’s in 1937, over years with the process of rebuilding, expansion and diversification. The unit employee 2064 and manufactures the wide variety of paper like writing, printing and coated paper. The unit has 6 paper and machines with the capacity of producing 225 tones of paper per day. The unit also has two paper coating machines with capacity of producing 90tones per day of coated paper. In the recent years market demand for the paper quality is becoming more & more stringent. High speed of printing machine requires paper high strength, brightness and uniform quality. With the liberalization the competition has become even stiffer. In the view of this new pulp mill has been installed with the targeted brightness level of 88 degree ISO. PRODUCT: 1. Our product range largely includes. 2. Coated wood free paper. 3. Business stationery-- Royal Executive Bond and Sunlit Bond. 4. Packaging Boards. 5. Specialty & fine paper. 6. Uncoated Hi-bright paper (BILT CLASSIC). 7. Copier paper. 8. Packaging Paper.
10
PLANT CAPACITY At present this unit is running 6 machines plus specialty coating plant unit Shree Gopal is the most integrated pulp and paper mill with state of art technology- specialty & coating plant. Daily Pulp Production of this plant is 210-220 tones. This unit is supported by: 6 paper machines 1 coating plant 3 finishing house 1 power house 1 Pulp mill RAW MATERIAL Unit Shree Gopal consumes 650 tones of raw material every day. This includes around 180 tones of wood, 83 tones veneer waste, 36 tones of bamboo. Wood in the form of popular trees &veneer waste we are getting from the local farmers and surrounding plywood in the industries. Rest the bamboos comes from Eastern U.P MANPOWER Total manpower of the plant is around 2064, among them 238 are in the management /officer grade clerical staff is 140 skilled employees are 1150, semi skilled are 236 & unskilled are300. MARKET BILT follows the centralized marketing policy with its head office at Gurgaon and 4 Znoal offices at Kolkata, Chennai, and Mumbai & Delhi. We sell our products through the dealers appointed by the company. We are the market leader in the segment of high quality papers (specialty paper) with a market share of around 34 percent. Our market growth rate is round 14 percent There are two recognized trade unions at unit Shree Gopal Shree Gopal Labour union Shree Gopal kamgar union
11
PROCESS OF PAPER MAKING
MAINLY PAPER IS CLASSIFIED IN TO THREE GRADES A Grade B Grade A Grade paper is manufactured from Wood Pulp B Grade paper is manufactured from Local waster paper or low quality of wood pulp To remove dust & sand before these Raw Materials are being Fed into rotary Batch digesters through belt Conveyor Only strong and log fibre is used in making paper washing of material is dine at wet cleaning plant. Then washed material is fed into digestion section (digestor House) in continuos digestor, where caustic soda & steam are fed in continuos digestor to cook the material Material is cooked in continuos digestor under controlled condition of steam pressure & temperature. Then the homogeneously cooked material is fed in refilling plant. There is a different section & pulp is overflow in different sections. Then pulp is fed in the washer, there chemical are washed so that to make the pulp chemical free. Still the pulp color is brown. This brown pulp is bleached in bleaching section to make the pulp plant so that to remove residual chemical. Fibre pulps are used to give strength in paper & these are fed into stock preparation plant. Here colours are also added to make colored paper. This ready stuff is now fed in paper machine. The stuff is feeded at wire through head box so pulp is formed into sheet At wire section water in pulp is removing by gravity & by suction boxes.
12
The formed sheet is then fed into press part the sheet is pressed in between rolls to remove water. Then the paper is rotated in dryers section in dryers section. To remover further moisture in web/paper and then fed into calendar part to get smoothness. Finally sheet is rewinded on a iron sheet roll (Rewinder) These paper rolls are fed into finishing & converting house where paper sheet is converted into sheet size (At cutter ) & in reels. As per market demand. These bundles &reels properly marked in excise & dispatch goodwn Paper manufactured is used for mainly printing, copy manufacturing, computer stationary, photocopy, typing, book printing, cover paper etc. Paper is basically measure in G.S.M-higher the G.S.M thicker is the paper.
13
QUALITY POLICY We are the manufactures and supplies of various grades of paper and coated paper and board. It will our endeavor to continuously improve the quality and service of our products for better customer satisfaction. Every individual in the unit shall stand committed and focused to this stage objective by adopting total quality management (TQM) metrology aimed at continuous improving our system, practices and preference. Thus constantly reducing cost through minimizing wastage. We shall be committed to comply with the requirements is international standards on quality management system and continually improve its effectiveness in its true sprite through involvement of employees and training.
14
TQM DR. N. EDWARDS DENINGS 14 POINTS Create constancy of purpose toward improvement Adopt the new philosophy Cease dependence on inspection to achieve quality. Minimize total cost. Improve constantly. Institute training. Institute leadership. Drive out fear. Break down barriers b/w department. Eliminate slogan, target and exhortation for the workforce. 1. Eliminate works standard. 2. Eliminate management by objective Right to pride of workmanship. Program of education and selfimprovement. Put everybody in company to work.
15
ENVIRONMENT POLICY The Environment policy our commitment and will serve as a guideline for all our manufacturing sites. We reaffirm our commitment to prevention of pollution by minimizing the adverse impact of our activities and operations on the environment. Pursuant to this goal, we shall: Continually improve the environmental performance by setting sound environmental objectives and targets of the manufacturing unit and reviewing at the top management level as essential elements of corporate management. Install, maintain and operate control facilities to comply with all applicable environmental laws and other regulations pertaining to the unit. Promote form forestry for sustainable availability of fibrous raw material. Conserve natural resources and energy by constant endeavor to reduce consumption and wastage. Introduce cleaner and energy efficient process in a phased manner to replace pollution – prone process. Create awareness amongst all employees to work in a manner to ensure protection of the environment. 16
Make available the policy to the concerned and agencies demand
Environment and Safety The Unit is committed to preserve its environment and safety of its employees. As company is very conscious about the environment and safety in the factory, the latest environmental protection system with respect to air, water, noise and solid waste pollutants have been provided and these aspects are given top priority by the management. The company has installed full-fledged Effluent Treatment Plant and State Pollution Board well below those specifies norms achieved. BILT also have installed Electrostatic Precipitator on our 3 no. High Pressure Coal Fired Boilers, One no. Medium Pressure Boiler and 2 no. Chemical Recovery Boiler. During the year 2003-04 we have successfully commissioned Lime Sludge burning Kiln along with ESP at an investment of Rs. 300.00 Lacs, which will reduce quantity of solid waste to be disposed from 100 TPD to 10 TPD only. During the year 2004-05, following are lined up for commissioning. a. New Electroststic Precipitator from Thermax at a cost of Rs. 150.00 Lacs for ABL Recovery Boiler to
17
bring down air emission from 150 mg/NM3 to 100 mg/NM3. 1 b. Up gradation of JMW Recovery Boiler ESP to bring down air emission to 150 mg/ NM3 in first phase and to 100 mg/NM3 in second phase. Above three amply illustrates commitment towards environment by minimizing solid, liquid and gaseous wastages. SGU has separate environmental cell of qualified engineers and scientists. Environmental Management System under ISO 14001 has been initiated and process of ISO14001 certification is under implementation stage. Company has also full-fledged safety department to look after the safety of plants and the employees. To ensure participation from all quarters regular training programmes, slogan and sketches competition are conducted, safety day is celebrated with great enthusiasm. Safety commete meeting conducted every month. For ensuring safety company has a committee which takes following measures on regular basis: 1 �Safety Audit. �Health checks of employees. �Monitoring of Work Permit System �On site emergency plans. �Drill and demonstrations. �House keeping and safety.
18
Safety meetings are held once a fortnight with members covering all process & engineering functions taking active parts. Safety concerns are discussed and all efforts made to take corrective action before next meeting. Shutting of 2nos.KVM900 vac. Pumps at PM4Installed capacity of vacuum pumpsPump Design Pump Capacity Pump RunningMotorMotorModelVolumeHeadRPMRPMKWRPMAM P.cu.mtr / hr.mmKVM - 18001026040033032088002501000305 KVM - 1800102604003302808460200750280 KVM 900480040045043646001321500170KVM 9004800400450428455093750164Available Vac.Vacuum requirement at m/cFormula forVolume required = 900 cu. Mtr / hr X length of box (mtrs) per 4" box width. Vacuum BoxVacuum requiredWidthLengthVolumeHeadinch.mtr.. Mtr / hr.mmSuction Couch73.45355400Suction Press3.53.42677400Uhle Box13.5788250 (Two No Vacuum Pump Setup April –04 (Before action) Vacuum Pump Setup May –04 after shutdown of KVM-900 Pump -I Savings After Action I :-99 KWH Net saving :-33 KWH / Ton of PaperSuction BoxesSuction CouchSuction PressUhle BoxesMX - 91KVM- 1800KVM900KVM-1800KVM-900Suction BoxesSuction CouchSuction PressUhle BoxesMX - 91KVM- 1800KVM-900KVM1800KVM-900Shutting of 2nos.KVM900 vac. Pumps atVacuum Pump Setup June –04 after shutdown of KVM-900 Pump -II Savings after Action II :98 KWH 19
Vacuum Pump Setup May –04 after shutdown of KVM-900 Pump -ISuction BoxesSuction CouchSuction PressUhle BoxesMX - 91KVM- 1800KVM-900KVM1800KVM-900Suction BoxesSuction CouchSuction PressUhle BoxesMX - 91KVM- 1800KVM-900KVM1800KVM-900Net saving: -26.66 KWH / Ton of PaperLoad increase in KVM-1800 :-18 KWHShutting of 2nos.KVM900 vac. Pumps at PM4
20
CORPORATE SOCIAL RESPONSIBILITY While BILT is responsible to its shareholders for fair returns on their investment, it is also committed to its other stakeholders to conduct its business in a responsible manner that creates a positive and long – term impact on society. For BILT, being a socially responsible corporate will mean: Using Eco-friendly in production for sustaining and preserving the environment that support us. Promoting the well being and development of employees and their families through and inspiring corporate culture that engenders good values. Building active and long term partnership with the communities in which we operate and foster well being of the most disadvantaged amongst them. Employing good business practices with our stakeholders, business partner’s suppliers and contractors.
CORE VALUE
HONESTY: We will be principled, straight – forward and fair in all our dealing. INTEGREITY: We will maintain the highest standards of professionalism. FLEXIBILITY: We will adopt our selves to always stay a step ahead of change. RESPECT FOR INDIVIDUALS: We will give each person room to contribute and grow. RESPECT FOR KNOWLEDGE: we shall acquire and apply leading edge expresses in all aspects of our business. TEAM PERFORMANCE: The team comes first none of us is as good as all of us.
VISION Our aspiration is to become a leading creator of shareholder value in the paper industry. To achieve this, we will use the ENERGY of our people, develop and implement LEADING EDGE technologies and draw on both to deliver EFFECTIVE world-class solutions to our customers. As per the beading company in BILT: Maximize shareholders value by the speed and quality of their response to market forces and business opportunities. Be market leader in their core business. Achieve and sustain global competitiveness in all their business. Be the preferred supplier by providing their customer products and service that always exceeds their requirements. Grow as institution of strength of their people. Be industry leaders in their commitment to safety and the environment.
MISSION To consistently out perform expectations and deliver superior value to both our customers and stakeholders. To achieve this, we will ENERGISE our people with a positive culture that rewards INNOVATION, breeds INITIATIVE and encourages INTELLIGENT risk taking.
SWOT ANALYSIS STRENGTHS: Maximum variety of paper and high quality. New pulp mill. Good employer –employee relationship. Efficient management. Totally computerized. Team building. Fulfilling social responsibility by keeping environment clean. OPPROTUNITIES: BILT has 34%share in paper business in Hibrite Segment in India. BILT has reached in growth stage. Weakness Large structure of organization Old machines Fixed cost THREATS: Import of paper. Raw material availability Government policies. Increasing competitive market.
BRIEF PROCESS FLOW DIAGRAM OF UNIT SHREE GOPAL YAMUNA NAGAR PURCHASING OF RAW MATERIAL
PULPING
STOCK PREPARED
PAPER MACHINES
PAPER CUTTING
PAPER FINISHING
STICKING IN GO DOWN
DISPATCHED TO CUSTOMERS
BRAND MASTER REPORT
BRAND NAME 1
BRAND NAME 2
SUNSHINE
SUNSHINE SUPER PRINTING
SUNLIT
SUNLIT ACCOUNT BOOK PAPER
RISING SUN
RISING SUN DUPLICATING
ROYAL
ROYAL EXECUTIVE BOND
SUPER
SUPER SKY ART BOARD
LUCKY PRINTING
VARIOUS DEPARTMAENTS AT UNIT SHREE GOPAL ADMINISTRATIVE DEPARTMENT 1. HR – Human Resource :- This department is primarily concerned with the training, selection recruitment, promotion, demotion, labour welfare, retirement , work culture and awareness. 2. Accounts Department:- the function of this department is to maintain record detail and record of all the transaction covered by different department 3. General Store department: - these people are concerned with procurement and storage of process material. 4. Marketing & Sales department:-Production Planning , Logistics & Inventory Management being the main activity. 5. Raw material department:- each and every product required for paper making is arranged /purchased by this department 6. Traffic department: - this department includes wing section, raw material section, transport section etc.
PROCESS DEPARTMENT: 1. PULP MILL:-its function includes manufacturing of pulp and stock preparation. 2. MACHINE HOUSE:-it controls the working of various paper machines and prepares the paper o required quantity. 3. COATING PLANT: - primary function of this department concern with coating of paper as per requirements.
ENGINEERING DEPARTMENTS:1. Electrical engineering:- This department attaches itself with the maintenance of installation of electrical machine, distribution and generation of electrical energy and various other electrical installations at the unit. 2. Civil engineering:- All the construction work like – building of roads sanitary, waste disposal , water supply etc. are under their control. 3. Instrumentation engineering:-maintenance of all the electrical controls of the machines is carried out ender the expert guidance. 4. Power house:- Having the total installed capacity of 25MW and maintain by two power house , old and new , this department backup’s the total power demand of the unit efficiently and effectively.
RGANISTION STRUCTURE CHAIRMAN
M.D
V.P
PEOPLE DEVELOPMENT & COMMUNICATION
R&D
PAPER PRODUCTIO N
CHIEF GENERAL MANAGER
ENGG. SERVICES
MEDICAL DEP
COMMERCIAL & RAW MATERIAL
TRAFIC DEP
SAFETY DEP
I.T DEP
A/C DEP
POLICIES OF OBTAINING LEADERSHIP THROUGH QUALITY BILT aims to be a world – class organization with a clear head way in terms of consistent quality, low cost, on time Delivery. We will focus on adding value at all point of intersection with of our customers – internal and external. For this, we will redefine standards in responsiveness, excellence in performance and application of world class technology that ensure zero defect output. Quality improvement is the job of every BILT employee.
OBJECTIVE
OBJECTIVE OF THE STUDY As it has been said truly that practical knowledge makes the person more capable, comprehensive and helps to enhance his/her creativity along with the theoretical data the exposure of practical life situation existing in the corporate is very much needed. The objective of my study was also to develop some practical experience in the training period. I learned a lot about marketing working in the organization that helps a lot in the efficient achievement of the goals. The main objective was divided into some sub objectives so as to draw clear conclusion. These sub objectives are given below: 1. To study the company profile of BILT. 2. To study the working of MSD (marketing & services department). 3. Market Analysis of retail products. 4. To study the problems of BILT
Financial Daily from THE HINDU group of publications Tuesday, Jun 06, 2008
Mergers & Acquisitions New Delhi, June 5 (2008) Ballarpur Industries Ltd (BILT) on Monday said that it was looking to acquire a majority stake in a Malaysian-based paper and pulp company, Sabah Forest Industries SDN BHD (SFI), jointly with JP Morgan for $ 261 million. For the acquisition, BILT has entered into a conditional share purchase agreement with JP Morgan, which will hold a 20 per cent stake in SFI. SFI, which is a part of Malaysia's Lion Forest Industries, has a paper capacity of 1,44,000 million tonne per annum (mtpa) and pulp capacity of 120,000 mtpa. The company would provide BILT access to around 2,89,000 hectares of forest land, which would be utilised for plantation purposes. SFI also operates a timber and plywood mill, a jetty and power and steam generation plant facility. "We will begin the due diligence exercise for SFI, which would be completed in the next 120 days," said Mr. Gautam Thapar, BILT Chairman. He said that with this acquisition, BILT would be able to produce one million tonne of paper and pulp by 2010. "While the 3,50,000 mtpa domestic expansion at the Bhigwan unit is on, the acquisition in Malaysia gives us an additional 1,40,000 mtpa of paper, all of which would raise our capacity to one million tonne per annum by June 2010," Mr Thapar said.
Ballarpur, apart from benefiting from SFI's mill and forest lands, may consider setting up a 5,00,000-tonne capacity pulp mill in Malaysia at an estimated cost of $500 million, which may become operational by 2012, Mr Thapar said. "Besides providing access to integrated pulp and paper capacity of SFI, the acquisition will help secure future availability of fibre for the company," Mr Thapar said. The acquisition in Malaysia would help cut costs for BILT. According to Mr R.R. Vederah, Joint Managing Director of BILT, "Costs in Malaysia are nearly half of that in India, which is a big advantage for us." Meanwhile, BILT's profit and revenue are likely to grow by "double-digit" each year over the next 10 years due to a continued surge in demand for paper in the country. "Paper demand grew 10 per cent last year. We should be able to maintain the growth this year as well," Mr Thapar said. Further, BILT said the company may go in for an across-the-board two per cent increase in paper prices from July this year due to higher input prices and increased demand. BILT witnessed a 0.97 per cent increase in its share price at the Bombay Stock Exchange to close at Rs 120 on Monday June 5(2006). Related Stories: BILT records 26.8 pc rise in Q3 net profit
MAJOR MARKETING CHANNELS OF BILT Wholesalers Retailers Depots BILT also caters to a variety of customers directly or indirectly. It indirectly feed the customers and consumers through its wide zonal network of wholesalers and dealers and depots spread over the map of India. It also caters to the demand of many industrial buyers who are the direct purchasers, the list include many multi nationals etc. BILT has sub-divided its distribution network into four zones. Each zone has to look after their respective dealers and wholesalers. This is based on to geographical placement of zones. BILT has setup its own depots in the country. It has engaged many transporters to provide trucks for the delivery of paper to its destination in the right time and in reasonable costs. At some extent, the company deals in writing and printing paper, is used for printing the books for colleges and schools and writing paper is used for making exercise book, registers, Bill books, ledgers, greeting cards, and business stationary, promotional materials etc. In this case the following channel is to be made as: Sales manager Authorized Distributor Wholesalers Retailers
Consumers
COMPETITORS OF BILT 1. ITC Bhadrachadran (Gujarat) 2. JK papers 3. TAMIL NADU PAPERS LTD. (Tamil Nadu) 4. STAR PAPER MILL(saharanpur) 5. RISHUBM PAPER MILL(Panjab) 6. KHANNA PAPER(AMRITSAR) Out of these major competitors is ITC Bhadrachadran, JK Papers. BILT took over these firms by its efficient management & strategies. BILT took over ITC Bhadrachadran (Gujarat) by improving its quality by increasing paper smoothness & brightness. JK papers introduced Executive bond. BILT out show JK papers by Introducing ROYAL executive bond paper. BILT is the leading paper manufacturer.
ORGANISATIONAL STRUCTURE OF MSD MANAGER
ASSISTANT MANAGER
EXECUTIVE MSD
OFFICERS
CLERICAL STAFF
WORKERS
Marketing Services Department The main function of the marketing services department is Production Planning, get finished paper from the mills and to dispatch it timely to its destination. Mainly the marketing of BILT, as well as of the Unit Shree opal depends upon the Head Office at GURGAON. Apart from that BILT is also having zonal offices in all the four zones of India. North zone: New Rajasthan, U.P.
Delhi,
Punjab,
H.P,
Haryana,
J&K
,
South zone: Kerela, Tamilnadu, Andhra Pardesh, Karnataka. West zone: Maharashtra, Goa, Gujarat, M.P, Daman. East zone: West Bengal, Assam, Manipur, Nagaland, Tripura. All the major marketing decision regarding price, product, physical distribution, promotion and packaging are initiated at the head office. The most important information is taken from history or to say from the past experience and performance. It is on the basis of the past performance that current decisions are taken and for this, previous year’s actual performances help the marketing services department of Shree Gopal Unit and also the zonal office is taken one by one. On the basis of previous years’ actual performance, the personnel at marketing services Department estimate the actual production rate is for the coming year. The production rate is calculated item wise and also machine wise. Along with that the actual machine down and the proposed shut down days are also calculated. This estimate is done month
wise i.e., starting form the month of January till December. After this , final programmed is made and the targets are fixed by calculating for the coming year, the machine down , shut down days and the expected production rate (each of it, machine wise and item wise) of the approaching period. On the other hand, previous year’s actual performance helps the zonal office to know about the sales of the product and in estimating the demand. Also on the basis of previous year’s actual performance, decisions relation to the addition of the new product in the existing product line are also taken into consideration (there are some products whose demand rises in particular seasons)also in all these decisions, experience and past records also play a vital role. On the basis of this head office, after taking into account all the factors fixes an annual sales target for the different zones (quality wise). For instance, in the coming year, 400 metric tones per month of Royal executive Bond Parent Size will be produced and will be sold and hence, will distribute this 400MT under the four zones and in this way fixes their target. North Zone: 180 MT West Zone: 120MT East Zone: 40MT South Zone: 60MT Once the targets have been fixed for the coming year, a Budget is prepared at the unit and this budget as than divide into different months and with this a rough monthly budget is prepared.
FUNTION OF MSD ORDER PROCESSING FLOW
ORDER
PRODUCTION
EXECUTION OF ORDER
TCC MILL
ORACLE
RETAILERS
CONSUMERS
PROJECT
Dispatch Program MSD perform certain regular functions related to daily dispatch. Every morning 5 copies of dispatch program are circulated among: Loading clerk (Main paper and specialty Godown) Excise Seat for issue of Excise Gate Pass Godown attendant (Main paper and specialty Godown)Bailing clerk (Main paper and specialty Godown) The finish reams receive from the finishing house then packed in bundle with weight of 60 to 70 kg and stencil marking is done as per the DPC providing following information. Name of the quality Weight of contents in a bundle. Destination
MSD also maintains a Party Master, which a report is giving details of the customer. It is a computer- generated report including certain specified information such as: Party code Party name (short) Party name (long) Address Rate of excise duty Amount (including of excise duty) Trade discount (zonal) Additional discount
Quality Invoice number Delivery order number and date Particulars of variety of paper Rate @ per metric tone There are two godowns in the organization. These are helping to dispatch the material form certain locations,it’s a part of dispatch management saction;These are: Main godown Speciality godown These godowns follow a systematic set of activities reporting to MSD. It has the delivery order and the report from finishing house. The actual stock is then physically scrutinized and recorded in the register at the finishing house line. After obtaining stock from finishing house, the status of stock is maintained and bailing and staching etc. is done for dispatch.
Loading: It is the part of Godown Management,the bailed material is loaded into trucks of respective destinations for which the dispatch programmed is given to the godown, godown people. It is the physical movement of the product from the mill to the godown, godonwn to cutting center to depots.
The trucks capacity is 9 tons for short distance & 18 tons for long distance. Suppose a party from Mumbai place an order of 7 tonne of one kind of paper &3 tons another kind of paper & another party of Mumbai place an order of 9 tons kind of paper. In this case the clubbing of destination will be done in such a way so that the load of 18 tonns on one truck will be ready in one time. In this way the truck will be loaded at its full capacity. And this will help to reduce the transportation cost. Another major function of MSD is the Invoice Management. Load I.D is the main source for invoicing. On the basis of this Load I.D vehicles has been shipped and invoice generated. The following information is present into the invoice: INVOICE NUMBER DATE OF INVOICE NAME & ADDRESS OF BUYERS DOCUMENTS THROUGH CATEGORY DELLIVERY AT PARTY CODE CUTOMER ID TRANSPORTER TRUCK NUMBER PRODUCT CODE DESCRIPTION GSM SIZE (CMS) NUMBER OF UNITS QUANTITY (KGS) TAX AMOUNT ASSESSABLE RATE /MT
TOTAL ASSESSABLE VALUE BED AMOUNT CESS. AMOUNT EDUCESS LST/CST INSURANCE TURN OVER TAX After generating the invoice the department distributes it in three ways: Original invoice for buyers Duplicate for transporters Triplicate/access for office One copy of the invoice is also handed over to the transporter for the preparation of goods receipt, which is further given to the truck driver with the copy of G.R note. Two copies of G.R. note are prepared: One for consignor One for consignee are taken form transporter The consignor maintains the consignor’s copy. One copy of invoice is attached to the consignor copy G.R and is sent to the wholesaler/zonal officer for the collection of funds. These are sent with a covering letter. These invoices are attached with excise gate pass and these invoices are of 3 different department: White /Grey invoice: Accounts department Red invoice: Transport department Green invoice: marketing service department
For the confirmation of the receipt of the consignments at the depot, the MSD started sending 2 copies of forwarding letters and one copy of the letter then the depot give the receipt of the consignment.
Market quality information (MQI) MQI is related to the complaints of the customers. The problem of the customer may be related to the defects in the material these defects may be visual as well as practical ones: Visual defects like: Bloch’s on paper Torn sheets Stamping Specks on sheets etc. Practical defects like: During packing and bundling of sheets, some sheets are left out or some of them are replaced.The next main problem is variation in the sheet, to solve these problems. A document is made which is known as CTQ. It is made for each quality of the product. CTQ stands for CRITICAL TO QUALITY.The main motive for making CTQ is to observe the visual as well as practical defects in the product. The CTQ is made by the mill and cutting center and later by the customer. For the customer complaints there is customer service cell of BILT.
The customer service cell has its personnel’s in every zonal office and the head of it sits in the head office. MQI is a very fast service to satisfy the customer complaints. It takes hardly 10 days to the maximum to solve one problem on an average.It is a printed form, which is to be filled by various persons at different stages.
CUSTOMER COMPLAINT: normally when a customer gets any complaint then he directly complaint to the zonal office under which he comes. After receiving the complaint the RSM fix the date of visit of the personnel of the customer service cell to check for the defective material. VISIT REPORT : on the fixed date the personnel of the customer service cell goes to the complaint is not so matter can be solved there only or not ? Means if the complaint is not so serious than he will try to convince the party. But on the other hand if the complaint is unavoidable than the employee will make his visit report and will write what ever he analyzes. MQI TO UNIT: After filling the MQI the csc employee will send it to the unit where the defective material is manufactured. All the details about the reel/ream are available on the label and this helps so much to the unit to locate the product is manufactured on which date/machine/lot no./ batch no. THROUGH CHECK :after receiving the MQI and after the study of the visit report the unit chief sends it to the R&D center where a thorough check of the defective material is
done and after that he writes his findings in the MQI and sends it to the production unit, where the same process is done reasons for the defect in the MQI and sends it to the R&D center, csc personnel and of the production unit and gives his comments and after this the unit chief studies this all and send the MQI to the head office. MQI TO HEAD OFFICE :when the head office receives the MQI which is filled by the heads of the csc /R&D / production / MSD then after complete analysis they contact with the customer settle the case by negotiating with him. CUSTOMER SATISFACTION: after all this process the customer gets satisfied with the settlement of the case by the head office. Study was aimed at research analysis of RDWs, so the study was in improvement in retail products sale. A survey was conducted for 34RDWs of Northern region with help of telephone.
Sampling Methods:
The method of random probability sampling was adopted for selecting the sample. The sample was selected such that clear & efficient results can be drawn to draw conclusions. The sample was selected according to the convenience.
Data Collection Tools:
Both primary as well as secondary is used for the study. The secondary data was collected through the literature catalogues & experience survey. For conducting an experience survey the method of informal investigation was collected from knowledgeable persons & official records. Primary data was collection of data was 44 people out of which 34 were redistribution whole sellers & 10 were company’s officials.
Data Analysis Tools: An attempt was made tabulate and summaries data in order to relate critical; points with study objectives the reliability of the summaries data was tested with the help of data analysis tool like percentage, average, standard deviation and variance.
Limitation Of The Study: Maximum care was taken while conducting the survey and collecting the secondary data. But there are the chances that the result may not match the realities due to some sort of errors. The reason nay is limited area to conduct the survey, time, and money constraint, small sample size etc. So the study does not claim to provide final and absolute results. But it surely narrow down the area whose judgment will finally operate. Data Analysis & Interpretations: The data collected from the survey as well as collected from the company personnel have been analyzed & interpreted carefully. So as fulfill all the objectives of the study. Various statistical tools of data analysis have been employed as & where required. The primary data & secondary data have been combined, together to draw inferences. The following section shows the classification tabulation & interpretation of data. NAME OF TETAIL BRANDS OF PAPER SOLD BY 34 RDWs 1. 2. 3. 4. 5. 6. 7. 8.
Mr. SUNIL JAIN (DELHI) : REB, Mr. ATUL GARG(DELHI) : REB,COPIER Mr. GIRDHA AGGARWAL(FAIZABAD): REB Mr. NARENDER (FARIDABAD) : REB, Mr. CHAMAN GOYAL(GHAZIABAD) : REB, Mr. MAHESH JAIN (GURGAON) : REB, COPIER Mr. MAHENDER KUMAR JAIN(JAIPUR) : REB, COPIER Mr. ARUN MAHAJAN (JALANDHAR) : REB,
9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.
Mr. DINESH GUPTA (JAMMU) : REB Mr. MANISH KHANDELWAL(KANPUR) : REB, Mr. NARENDER LODHA(KOTA) : REB,IMAGE Mr. ASHOK JAIN (LUCKNOW) : REB, Mr. MANOJ (MEERUT) : REB, Mr. SHILENDER GUPTA (MORADABAD): REB Mr. DEEPAK (NOIDA) : REB Mr. SURESH SURI(RISHIKESH) : REB, Mr. PRAN PAPNEJA (SAHARANPUR): REB,COPIER Mr. MAHESH GAUTUM(SHIMLA) : REB,COPIER Mr. ZAHOOR AHMED(SHRNAGAR) : REB Mr. ALOK BHARGAVA(VARANASHI) : REB, Mr. VINEET NARANG(SIRSA) : REB,COPIER Mr. MAHESH KUMAR(HISSAR) : REB Mr. SANJEEV(KARNAL) : REB Mr. MUKESH (LUDHIANA) : REB Mr. KUDJIT (PATIALA) : REB, COPIER Mr. ASHISH GOYAL (CHANDIGARH) : REB Mr. RAM PRAKASH(AMBALA) : REB,COPIER Mr. RAJESH (PANCHKUKLA) : REB Mr. G.L MANGAL (AJMER) : REB Mr. RAHUL GUPTA(AGRA) : REB Mr. NARESH TULI(AMRITSAR) : REB,IMAGE Mr. SUBASH (ALLAHABAD) : REB Mr. ARUN KUMAR(GAREILLY) : REB Mr. LOKESH : REB
It is found that these RDWs sell the REB paper maximum. Image paper the least. The contribution made by the 34 RDWs in the northern region towards the sale of retail products of BILT is as: 100%RDWs sell REB 20.58RDWs sell COPIER 17.64RDWs sell IMAGE
Monthly retail sale of 34 RDWs (TONNES) BILT’S (Share)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
JAIN PAPER (DELHI) : 1.5 TRUEMAN STATIONARY Mfg.CO.Ltd(DELHI): 5.0 GANESH BOOK DEPOT (FAIZABAD) : 5.0 HARYANA TRADERS (FARIDABAD) : 1.0 CHAMAN ENTERPRISES(GAHAZIABAD) : 1.2 VARDHMAN ENTERPRISES(GURGAON) : 1.6 RAJ PANCHAYAT PRAKASHSHAN(JAIPUR): 1.5 PARTAP STY MART (JALANDHAR) : 5.0 GUPTA STY MART (JAMMU) : 0.5 SAURABH ENERPRISES(KANPUR) :5.0 SHREE LODHA SONS(KOTA) :0.7 JAIN BROTHERS(LUCKNOW) :1.0 MANOJ STATIONARS(MEERUT) :1.0 HARISH & CO. (MORADABAD) :1.0 KARAN PAPER MART(NOIDA) :1.4 GENERAL SUPPLY AGENCY* (RISHIKESH) :1.6 SOHAN LAL PRAN NATH (SAHARANPUR) :1.2 HARI DAS & CO.(SHIMLA) :1.0 BEECO BUSINESS SYSTEMS(SHRINAGAR) :0.5 ABHISHEK PAPER&STATIONARY(VARANASI):0.8 NARANG CARD GALLARY(SIRSA) :0.3 SHRI BALAJI PAPER MART(HISSAR) :0.3 SANJEEV CARDS&STATIONARS(KARNAL) :0.6 PARKASH ENTERPRISES(LUDHIANA) :4.5 AS TRADERS(PATIALA) :0.7 ASHIS AGENCIES (CHANDIGARH) :5.0 RAJEEV SANJEEV ENTERPRISES(AMBALA):0.4 ASHOK COY HOUSE (PANCHKULA) :1.0 HIND PAPER MART (AJMER) :0.3 KRISHNA TRADERS(AGRA) :5.0
TOTAL
2.90 6.75 6.00 1.50 2.00 2.00 2.20 7.00 0.75 7.00 1.00 1.3 1.5 1.2 1.9 2.0 1.5 1.6 0.95 1.0 0.5 0.6 1.0 6.0 1.25 7.5 0.7 1.75 0.8 6.57
BILT%
78.9 74.0 83.33 66.66 60 80 68.18 71.42 66.66 71.42 70 76.92 66.66 83.33 73.68 80 80 62.5 5.55 80 60 50 60 75 8.83 66.66 57.14 57.14 37.5 6.92
31. 32. 33. 34.
RATTAN STORES (AMRITSAR) SUBHASH STATIONARY (ALLAHABAD) MAHESHVARI PAPERS Pvt Ltd(BAREILLY) MAHAVIR PAPER STATIONARY(UDAIPUR)
:1.5 2.5 :1.5 2.0 :0.4 0.5 :1.0 1.7 TOTAL SHARE
So from the above data it can be calculated that: Average monthly sale of 34RDWs = 1.775 tones Maximum monthly sale = 5 tones Minimum monthly sale = 0.3 tones
List of RDWs giving maximum sale: 1. 2. 3. 4. 5. 6. 7.
TRUMAN STATIONARY Mfg. Co.Ltd(DELHI) GANESH BOOK DEPOT(FAIZABAD) PAARTAP STY MART(JALANDHAR) SAUPABH ENTERPRISES(KANPUR) PARKASH ENTERPRISES(LUDHIANA) ASHISH AGENCIES(CAHNDIGARH) KRISHNA TRADERS(AGRA)
List of RDWs giving minimum monthly sale: 1. 2. 3. 4. 5. 6. 7.
GUPTA STY MART(JAMMU) SHREE LODHA SONS(KOTA) BEECO BUSINESS SYSTEMS(SHRINAGAR) NARANG CARD GALLARY(SIRSA) SHRI BALAJI PAPER MART(HISSAR) HIND PAPER MART (AJMER) MAHESHVARI PAPERS Pvt Ltd(BAREILLY)
Percentage of RDWs giving maximum sale = 20.58 Percentage of RDWs giving minimum sale = 20.58 Percentage of RDWs giving intermediate sale = 20.58 Percentage of BILT’s average share = 65.55%
60 75 80 58.82 60
RDWS VIEWS ABOUT CUSTOMERS JAIN PAPER (DELHI) : Photostat, Offices ,Printers, Advertising agencies TRUEMAN STATIONARY Mfg.CO.Ltd(DELHI): Students, Advertising agencies, Label manufacture GANESH BOOK DEPOT (FAIZABAD): Offices, Printers, Students, Publishers HARYANA TRADERS (FARIDABAD): Advertising agencies, Publishers, Offices. CHAMAN ENTERPRISES(GAHAZIABAD): Printers, Photostat, Publishers VARDHMAN ENTERPRISES(GURGAON): Printers, Students, Publishers RAJ PANCHAYAT PRAKASHSHAN(JAIPUR): Photostat, Offices, Students PARTAP STY MART (JALANDHAR):Offices, Printers, Publishers GUPTA STY MART (JAMMU): Students SAURABH ENERPRISES(KANPUR): Printers, Students ,Printers, Publishers SHREE LODHA SONS(KOTA): Printers, Students JAIN BROTHERS(LUCKNOW):Printers, Offices, Stationers MANOJ STATIONARS(MEERUT): Students, Publishers HARISH & CO. (MORADABAD): Students
KARAN PAPER MART(NOIDA): Publishers GENERAL SUPPLY AGENCY* (RISHIKESH): Stationers, Printers, Photostat SOHAN LAL PRAN NATH (SAHARANPUR): Printers, Offices HARI DAS & CO.(SHIMLA): Offices, Advertising agencies, BEECO BUSINESS SYSTEMS(SHRINAGAR): Students ABHISHEK PAPER&STATIONARY(VARANASI): Stationers, Advertising agencies NARANG CARD GALLARY(SIRSA): Offices, Students SHRI BALAJI PAPER MART(HISSAR): Stationers, Students SANJEEV CARDS&STATIONARS(KARNAL): Students, Publishers PARKASH ENTERPRISES(LUDHIANA): Advertising agencies, Publishers, Offices, Students AS TRADERS (PATIALA): Publishers, Offices. ASHIS AGENCIES (CHANDIGARH) : Stationers, Students ,Offices, Advertising agencies, Printers, Publishers RAJEEV SANJEEV ENTERPRISES(AMBALA): Students ,Offices, Printers ASHOK COY HOUSE (PANCHKULA): Publishers, Offices HIND PAPER MART (AJMER): Printers, Students KRISHNA TRADERS(AGRA): Students, Advertising agencies, Printers, Publishers
RATTAN STORES (AMRITSAR): Students, Advertising agencies, Printers, Publishers, Offices SUBHASH STATIONARY (ALLAHABAD): Photostat ,Printers, Stationers MAHESHVARI PAPERS Pvt Ltd(BAREILLY): Stationers MAHAVIR PAPER STATIONARY(UDAIPUR): Students
FROM THE ABOVE DATA IT IS CLEAR THAT Number of RDWs out of 34 RDWs selling retail product to stationers Number of RDWs out of 34 RDWs selling retail product to student Number of RDWs out of 34 RDWs selling retail product to Advertising agencies Number of RDWs out of 34 RDWs selling retail product to Label manufacture
=6 =20 =8 =2
Number of RDWs out of 34 RDWs selling retail product to Photostat =5 Number of RDWs out of 34 RDWs selling retail product to Offices =15 Number of RDWs out of 34 RDWs selling retail product to Printers =17 Percentage of RDWs out of 34 RDWs selling retail product to Stationers =17.64 Percentage of RDWs out of 34 RDWs selling retail product to student =58.82 Percentage of RDWs out of 34 RDWs selling retail product to Advertising agencies =23.52 Percentage of RDWs out of 34 RDWs selling retail product to Label manufacture =5.88 Percentage of RDWs out of 34 RDWs selling retail product to Photostat =14.70 Percentage of RDWs out of 34 RDWs selling retail product to Offices =44.11 Percentage of RDWs out of 34 RDWs selling retail product to Printers =50
RDWs VIEWS ABOUT MAIN COMPETITORS
JAIN PAPER (DELHI) : JK, ORIENT TRUEMAN STATIONARY Mfg.CO.Ltd(DELHI) : JK, MODI GANESH BOOK DEPOT (FAIZABAD) : JK HARYANA TRADERS (FARIDABAD) : MODI CHAMAN ENTERPRISES(GAHAZIABAD) : JK VARDHMAN ENTERPRISES(GURGAON) : JK RAJ PANCHAYAT PRAKASHSHAN(JAIPUR) : JK PARTAP STY MART (JALANDHAR) : JK, MODI GUPTA STY MART (JAMMU) :GODREJ, ORIENT SAURABH ENERPRISES(KANPUR) : JK, ORIENT SHREE LODHA SONS(KOTA) : JK, CENTURY JAIN BROTHERS(LUCKNOW) : JK MANOJ STATIONARS(MEERUT) : JK HARISH & CO. (MORADABAD) :ORIENT KARAN PAPER MART(NOIDA) : JK, CENTURY GENERAL SUPPLY AGENCY* (RISHIKESH) : GODREJ, ORIENT SOHAN LAL PRAN NATH (SAHARANPUR) : JK, MODI HARI DAS & CO.(SHIMLA) : JK BEECO BUSINESS SYSTEMS(SHRINAGAR) :GODREJ, MODI ABHISHEK PAPER&STATIONARY(VARANASI): JK, ORIENT NARANG CARD GALLARY(SIRSA) : JK SHRI BALAJI PAPER MART(HISSAR) : JK SANJEEV CARDS&STATIONARS(KARNAL) : MODI, ORIENT PARKASH ENTERPRISES(LUDHIANA) : GODREJ, JK AS TRADERS(PATIALA) : MODI , CENTURY ASHIS AGENCIES (CHANDIGARH) : GODREJ, JK RAJEEV SANJEEV ENTERPRISES(AMBALA) : JK, MODI ASHOK COY HOUSE (PANCHKULA) : GODREJ,CENTURY HIND PAPER MART (AJMER) : JK & ORIENT KRISHNA TRADERS(AGRA) : JK, MODI & ORIENT RATTAN STORES (AMRITSAR) : JK, CENTURY & MODI
SUBHASH STATIONARY (ALLAHABAD) MAHESHVARI PAPERS Pvt Ltd(BAREILLY) MAHAVIR PAPER STATIONARY(UDAIPUR)
: GODREJ,CENTURY : CENTURY & MODI : JK, CENTURY , MODI
FROM THE ABOVE DATA IT IS CLEAR THAT Number of RDWs favoring that JK is the competitor of BILT Number of RDWs favoring that MODI is the competitor of BILT Number of RDWs favoring that ORIENT is the competitor of BILT Number of RDWs favoring that CENTURY is the competitor of BILT Number of RDWs favoring that GODREJ is the competitor of BILT
=22 =12 =9 =9 =7
Percentage of RDWs favoring that JK is the competitor of BILT =64.7 Percentage of RDWs favoring that MODI is the competitor of BILT =35.29 Percentage of RDWs favoring that ORIENT is the competitor of BILT =26.47 Percentage of RDWs favoring that CENTURY is the competitor of BILT =26.47 Percentage of RDWs favoring that GODREJ is the competitor of BILT =20.58 This data clearly shows that BILT is facing competition mainly from the side of JK. BILT is facing the least competition from GODREJ.
RDWs VIWES ABOUT BILT’s PRICE
JAIN PAPER (DELHI) TRUEMAN STATIONARY Mfg.CO.Ltd(DELHI) GANESH BOOK DEPOT (FAIZABAD) HARYANA TRADERS (FARIDABAD) CHAMAN ENTERPRISES(GAHAZIABAD) VARDHMAN ENTERPRISES(GURGAON) RAJ PANCHAYAT PRAKASHSHAN(JAIPUR) PARTAP STY MART (JALANDHAR) GUPTA STY MART (JAMMU) SAURABH ENERPRISES(KANPUR) SHREE LODHA SONS(KOTA) JAIN BROTHERS(LUCKNOW) MANOJ STATIONARS(MEERUT) HARISH & CO. (MORADABAD) KARAN PAPER MART(NOIDA) GENERAL SUPPLY AGENCY* (RISHIKESH) SOHAN LAL PRAN NATH (SAHARANPUR) HARI DAS & CO.(SHIMLA) BEECO BUSINESS SYSTEMS(SHRINAGAR) ABHISHEK PAPER&STATIONARY(VARANASI) NARANG CARD GALLARY(SIRSA) SHRI BALAJI PAPER MART(HISSAR) SANJEEV CARDS&STATIONARS(KARNAL) PARKASH ENTERPRISES(LUDHIANA) AS TRADERS(PATIALA) ASHIS AGENCIES (CHANDIGARH) RAJEEV SANJEEV ENTERPRISES(AMBALA) ASHOK COY HOUSE (PANCHKULA) HIND PAPER MART (AJMER) KRISHNA TRADERS(AGRA) RATTAN STORES (AMRITSAR) SUBHASH STATIONARY (ALLAHABAD)
: Accurate : High : High : Accurate : Accurate : High : Accurate : High : Accurate : Accurate : High : Accurate : Accurate : Accurate : High : High : Accurate : High : Accurate : Accurate : High : Accurate : High : Accurate : Accurate : Accurate : High : High : High : Accurate : High : Accurate
MAHESHVARI PAPERS Pvt Ltd(BAREILLY) MAHAVIR PAPER STATIONARY(UDAIPUR)
: Accurate : Accurate
FROM THE ABOVE DATA IT IS CLEAR THAT 20 OUT OF 34 RDWs ARE SATISFIED WITH BILT’s PRICE & 14 OUT OF 34 RDWs ARE NOT SATISFIED WITH BILT’S PRICE. So percentage of price satisfaction Percentage of price dissatisfaction is
= =
58.82 41.17
RDWs VIEWS ABOUT MODIFICATION JAIN PAPER (DELHI) TRUEMAN STATIONARY Mfg.CO.Ltd(DELHI) improved GANESH BOOK DEPOT (FAIZABAD) improved HARYANA TRADERS (FARIDABAD) CHAMAN ENTERPRISES(GAHAZIABAD) VARDHMAN ENTERPRISES(GURGAON) be there on the packs RAJ PANCHAYAT PRAKASHSHAN(JAIPUR) PARTAP STY MART (JALANDHAR) should be there on the packs GUPTA STY MART (JAMMU) improved SAURABH ENERPRISES(KANPUR) SHREE LODHA SONS(KOTA) JAIN BROTHERS(LUCKNOW) MANOJ STATIONARS(MEERUT) improved HARISH & CO. (MORADABAD) KARAN PAPER MART(NOIDA) should be there
: No need : packing should be : packing should be : No need : No need : bar coding should : No need : color identification : packing should be : No need : No need : No need :packing should be : No need :timely
service
GENERAL SUPPLY AGENCY* (RISHIKESH) SOHAN LAL PRAN NATH (SAHARANPUR) HARI DAS & CO.(SHIMLA) BEECO BUSINESS SYSTEMS (SHRINAGAR) improved. ABHISHEK PAPER&STATIONARY(VARANASI) NARANG CARD GALLARY(SIRSA) SHRI BALAJI PAPER MART(HISSAR) SANJEEV CARDS&STATIONARS(KARNAL) PARKASH ENTERPRISES(LUDHIANA) be introduce AS TRADERS(PATIALA) ASHIS AGENCIES (CHANDIGARH) RAJEEV SANJEEV ENTERPRISES(AMBALA) be there ASHOK COY HOUSE (PANCHKULA) HIND PAPER MART (AJMER) KRISHNA TRADERS(AGRA) RATTAN STORES (AMRITSAR) be there SUBHASH STATIONARY (ALLAHABAD) MAHESHVARI PAPERS Pvt Ltd(BAREILLY) be introduced MAHAVIR PAPER STATIONARY(UDAIPUR)
: No need : No need : No need : quality should be : No need : No need : No need : No need : bar coding should : No need : No need : time service should : No need : No need : No need : time service should : No need :bar voiding should : No need
FORM THE DATA ABOVE IT CAN BE CALCULATION THAT: Percentage of RDWs who want improvement in packing =11.76 Percentage of RDWs who want improvement in Quality =2.94 Percentage of RDWs who want improvement in service =8.82 Percentage of RDWs who want introduction of bar- coding the packs =8.82 Percentage of RDWs who want color identification of the packs =2.94 So total percentage of RDWs who want modifications Percentage of RDWs who want don’t want any modification
=35.28 =64.72
Limitations of the study: The limitations need to be considered during the research work are as following: Due to certain norms and regulations followed by the management of unit, all the subjects could not be studied intensively. As such the report is subjected to a particular time frame since it is quite possible that the inferences may differ in different periods . Although the staff of Ballarpur Industries Ltd was very efficient and highly cooperative and they devoted enough of their valuable time with their employees.
Findings & conclusions: Findings & conclusions: On the basis of data collected from the RDWs & BILT’s staff, the following results are obtained. BRANDS: REB & MATRIX is the retail product from Unit Shree Gopal, which is maximum in sale. TOTAL RETAIL SALE: Total retail sale from the RDWs is 300 to 350tonnes per month. Average retail sale of RDWs is 1.76 tones. Maximum sale is 5 tonnes & minimum sale is 0.3 tones. Percentage from the RDWs giving intermediate sale is maximum. Average BILT’s share for the sale of retail products according to the data provided by RDWs is 65.66%. But actually this share is 76% CUSTOMERS: the primary customers of BILT’s retail products are photostaters, offices, printers, stationers, students, and advertising agencies, Label manufacturers. The maximum consumption of these products is that of students & academic institutions & the minimum consumption of it is by the label manufacturers. COMPETITORS OF RETAIL PRODUCTS: main competitors of BILT’s retail products are JK, MODI, ORIENT, CENTURY GODREJ etc. According to the data provided by RDWs it is calculated that BILT faces maximum competition from the side of JK &minimum competition from the side of ORIENT & CENTURY paper mills.
BILT’s POSITION AS A BRAND: Remarks given by customers to BILT according to RDWs are excellent, good, fine, and ok, most of the customers according to RDWs have remarked BILT as very good & fine brand. According to RDWs BILT is the leading paper manufacturer. However there are some customers according to RDWs who have no knowledge about BILT due to very less advertising of BILT products. BILT’s SEASONALITY: After studying seasonality in sales of different RDWs it has been calculated that maximum sale of BILT’s retail products occur in the month of May & June. Minimum sale occur in the month of December. BILT’s PRICE: From the data it is calculate that 41.17% RDWs are not satisfied with BILT’s price & 58.87% RDWs are satisfied with BILT’s price instead of that the BILT’s paper is working in the market on the basis of his quality where BILT never compromise. MODIFICATION: From the data calculated from 34 RDWs, it is calculated that only 35.28% want modification in packing, quality, service, color identification, etc. 64.72% RDWs do not want any modification which shows that BILT has established a very good position in the market. MARKET SHARE: the market share of BILT in northeast westa & south is 24% 7% 30%&15%. Market share of BILT’s REB is 60%. EB of JK makes 30% & others make 10%. Market share of BILT’s retail products in all directions are:
NORTH SOUTH WEST EAST
=18% =25% =27% =6%
REASONS OF BILT’S SUCCESS 1. Set up of own pulp mill to lower the pulp cost. 2. Total quality management (TQM) 3. Taking over multinationals like sinar mass. 4. Introduction of superior quality of premium vendors. 5. Fast market quality information at head office, Gurgaon where Buyers are invited to report about any complaint & when they report, immediate action is taken. Goodwill in the market is created. 6. Better resource planning.
THE MAJOR FINDINGS OF THE STUDY ARE: Paper is a cyclical industry. This states that the prices of paper fluctuate twice or thrice in a year. BILT holds a major chunk of market share in the paper industry. BILT enjoys market leadership in coated paper range due to its unmatched quality and production. Shree Gopal Unit holds sufficient space but still it requires more land for the implementation plans in respect to future expansion prospects. Sustained availability of good quality of raw materials (forest based). Unit Shree Gopal insisted upon adequate modernization of the manufacturing assets. It also takes into consideration of improvement of the infrastructure. The unit carries effective environmental management. Unit Shree Gopal continuously persisted on quality improvements and reduction in cost of production. Some areas of the unit such as; godowns are under utilized which must be managed properly. The company is facing the shortage of power supply due to electricity cuts. Heavy reliance on outside transporters for shipping of goods and materials.
CONCLUSION Paper industry is of cyclical nature and the global paper industry is on come back trail. Indian paper industry has also started looking up. India’s per capita consumption of paper is around 4.00kg, which is one of the lowest in the world with the expected increase in literacy rate and growth of the economy, an increase in the per capita consumption of paper is expected. The demand for upstream market of paper, medical grade coated paper, tea bags, and filter paper, light weight online coated paper, medical grade coated paper, and etc. is growing up. These developments are expected to give fillip to the industry. The total capacity of the paper industry is about 1.5 million tones and it is growing at the rate of 6%. Here again there is a big gap between demand and supply. Demand is growing at 6% and supply at 3%-4%. There might be a fall of prices because of fall in global prices. It is more of a psychological fall than a demand-supply mismatch. The senior officials are quite sure that demand will soon out ship supply. BILT always look for good assets to add value to the operations. It has the best distribution system in the country. The operating performance speaks for itself. In the sense virtually they are operating every year at 100% capacity utilization and selling the product. If we look at the other
best players in the industry they would never exceed 90% in good years and in bad years, they go down to as low as 70% In India the maximum growth in writing and printing has come from copier paper, the reason being the increase in photocopying. BILT is also witnessing growth from coated paper. The ratio between coated and uncoated paper is highly skewed towards uncoated paper is the cheapest. But with the developed countries. The economy, the consumption of coated paper is also increasing. The things have started looking better for the paper industry as a result of the revival in the Indian economy. Even globally the paper prices have started moving up. This will reduce the incidence of low cost imports. The market share of BILT is around 22% and is expected to come up to 30% with in a year or so. The paper market is growing by 6%, and coated paper market is growing around 10% and copier around 12% Now the aim is to grow at higher percentage than these and for this BILT should realize that they have to do it by combination of both field expansion and looking at the possibility of future acquisition in the paper industry for this for future consolidation. BILT should look at the domestic market and there are lots of companies in the block, which we feel have a synergy with it.
RECOMMENDATIONS & SUGGESTIONS The main of the study was to get knowledge about working in the marketing field in an organization & to analyze the retail sale with help of data (BILT’s retail products, BILT’s main customers, competitors, BILT’s position, BILT’s services etc) collected from RDWs. On the basis of study & findings various recommendations were made which are given below: 1. It was found from the study, that retail product IMAGE COPIER is maximum in sale so company should increase the production of IMAGE COPIER. It is found from the study that maximum monthly sale is of 5 tones, which is shown by some the RDWs, which give maximum sale to BILT, are given incentives, which is a very good characteristic of BILT for Business. There should also be increases in supply to these RDWs. Some of the RDWs give minimum sale. Their performance in the past should be examined & then accordingly supply of retail products should be increased or decreased. 2. Major consumers of BILT’s retail products are students. So BILT should pose more emphasis on satisfying the demands of the students. 3. it is found from the study that sale increases from march to September & decreases form oct. to feb. Maximum sale occur in the months of May & June. Minimum sale occur in dec. so BILT
4. 5. 6. 7. 8.
should plan its production & supply according to demand for the market. Upgraded technology should be introduced in order to meet market specifications. Unit marketing should attend more complaints. There should be better coordination between marketing & process. There should be more flexibility in manufacturing of specific orders. There had never been proper launching & advertising of specific products. BILT should start advertising it products, which can increase its sale & increase its market share from 76%to100%. After conducting the research, various relevant findings revealed the true picture of the paper industry. After studying about Unit Shree Gopal, the conclusions drawn with some recommendations for improvements: BILT have their own USP focusing on quality. The recommendations relate to continue same strategies along with diversion in the attributes like pricing, promotion etc. Unit Shree Gopal is recommended to consider upon the transportation facility. The unit is heavily relying upon the outdoor transporters who play their discretion the transportation, which may prove hassles in the smooth flow of goods to the destination. Hence, bring scar to the brand name of BILT. BILT has built up a name of its own. Almost whole of the country is familiar to the generic term for paper. Thereby, BILT is recommended to utilize this brand popularity as a positioning strategy to cater new unexplored markets.
Unit Shree Gopal, though a reputed, well – known and active subsidiary of BILT have least concentration on various active marketing activates. Their main emphasis is on passive marketing. In these modern times, it is said that marketing is the backbone of any business. Although the name is very popular but it is recommended to go in for improvement of their promotional mix by following professional approaches like: brand positioning, media advertising and other sales promotion techniques. Unit Shree Gopal is highly recommended to improve the quality of work life provided to the workers engaged in the production process. The newly installed machinery is highly sophisticated but the older machines have poor quality of work life (in case of pollution, poor lighting, poor ventilation, cleanliness etc.) These must be improved.
BIBLIOGRAPHY KOTLER, PHILIP: PRINCIPAL OF MARKETING MANAGEMENT SHARMA, D.D: MARKETING RSEARCH – PRINCIPLES, APPLICATION & CASES BOWERSOK, DON J: LOGISTICAL MANAGEMENT: MACMAILLAN COMPANY’S CATALOGUE. BILT WEBSITE ( WWW.BILT.COM ) ( WWW.GOOGLE.COM )
THANKS