"A Report On Market Research On Ceramic Tiles Industry of Morbi And Market Analysis Of Favourite Plus Ceramic PVT.

LTD."
Prepared By Darshan M. Patadia B. B. A. LL.B. IInd semester Roll No. 07 Academic Year 2012-2013 Submitted To
Department of law Saurashtra University Rajkot

Guided By Prof. Kruti K. Mehta

DECLARATION

I, the undersigned MR. DARSHAN M. PATADIA, student of Second Semester B.B.A, LL.B hereby declare that the project work presented in this report is my own work and has been carried out under the supervision of Kruti K. Mehta professor of Saurastra University Law Department, Rajkot.

This work has not b een s ubmitted previo us ly to any other univers ity for examinatio n or any other purpose.

Date: Place: Rajkot ----------------------(Darshan M. Patad ia)

PREFACE
Today, in almost all fields, management has become an integral part. W e need to manage over daily routine. BBA LLB, the stream o f management teaches us and helps us to app ly it practic ally. In this pro ject work, I have carried all the areas of management like marketing, production, personnel, and finance. One needs to keep equally balanced all the d epartments to run the entire company smoothly. I have thus tried to prepare this pro jec t taking into consideratio n all the areas and aspects of the company.

ACKNOWLEDGEMENT
First I would like to thank Saurastra University Law Department for providing me an opportunity to flourish my knowledge apart from theory. I would also thank Professor Kruti K. Mehta, who has constantly guided me for the project.

I am thankful to owner of Favorite Plus Ceramic Wall Tiles Pvt. Ltd. Vijay Becharbhai Rangpariya for granting me permission to prepare a report on their firm and also for their excellent guidance with complete interest. I am also thankful to the owners, whole staff of this industry for their valued co-operation and helped me to complete this project on the industrial visit. I am also thankful to my elder sister for guiding me for this project.

Date: Place: Rajkot ----------------------(Darshan M. Patad ia)

INDEX
Chap no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Particulars Collage Certificate Company Certificate Declaration Preface Aknoowledgement Introduction ( Ceramics) General Information Production Department Marketing Department Analysis Future Plane Suggestions Conclusion Bibliography 2. 3. 4. 6. 7. 15. 26. 37. 39. 41. 43. 45. Page No.

INTRODUCTION
HISTORY OF CERAMIC
The word "Ceramic" has originated from the Greek word, " Keramos", which means pottery. It also relates to an ancient Sanskrit word whose root meaning is to burn, but it is predominantly used to indicate "burnt stuff". Almost 10,000 years later, with the establishment of settled communities, tiles were manufactured in Mesopotamia and India. The first instance of functional pottery vessels being used for storing water and food is thought to be around 9,000 or 10,000 BC. Clay bricks were also made around the same time. The ceramics industry in India came into existence about a century ago and has matured over time to form a industrial base. From traditional pottery making, the industry has evolved to find its place in the market for sophisticated insulators, electronic and electrical items. Over the years, the industry has been modernising through new innovations in product profile, quality and design to emerge as a modern, world-class industry, ready to take on global competition. Though there are a number of large companies in the ceramics sector, small and medium enterprises (SMEs) account for more than 50 per cent of the total market in India, offering a wide range of articles including crockery, art ware, sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of the players are grouped together in clusters. Over the last two decades, the technical ceramics segment has recorded an impressive growth propelled by the demand for high-alumina ceramics, cuttings tools and structural ceramics from the industry. Overall, the Indian ceramics industry has emerged as a major manufacturer and supplier in the global market.

GENERAL INFORMATION

Project At Glance
Name of the Firm Year of Estab lishment Form of Organisatio n Size o f Organis ation Locatio n of O ffic e Locatio n of F actory Phone Number Office Phone Number Factory Fax Numb er E-Mail Web S ite Regis tered Certific ate No. Sales Tax No. CST No. Exc is e Regis tratio n No. Product No. of Emp lo yees Bankers Aud itors Name of Pro moters Favourite Plus Ceramics Pvt. Ltd. 2008-2009 Private Limited Med iumScale, Large Scale 8-ANatio nal Highway,Sartanpar Dhuva(G ujarat)Ind ia. 8-ANatio nal Highway,Sartanpar Dhuva(G ujarat)Ind ia. +91-2828-295262 +91-2828-295263 +91-2828-295264 info@favouritetiles.com www. favo uritetiles.com U-26933GJ2009PTC057500 24092201344 24592201344 AABCF 2034RXMOO WALL T iles 76 Bank of Ind ia, Morb i Bank of Ind ia, Morb i Shri. Becharb hai Rangpariya Shri R ajeshb hai Bavarva Shri Vijayb hai R angpariya Shri Hiteshb hai Shirvi Mr. Vijayb hai R angpariya Mr. Hiteshb hai Shirvi Mr. Manis hbhai Aghara Approx 12 c rs. 4 Ac res. Natio nal and Internatio nal

Board of Directors

Investment Area Covered Market

HISTORY & DEVELOPMENT OF ORGANISATION

The F avo urite gro up is a private lim ited company which produces different kinds of things. Each and every unit has got other industries of its town. It contained when the firm was incorporated, who were the rais e, what way its purpose, what are the products manufactured by them, etc. This gro up all p romoters are mostly from the Dhuva, whic h comes und er the Dis tric t Rajkot. T hey incorporated to cultivatio n and they have good business of cotton and other p roducts in Villag e Dhuva. It is estab lished in 1984. They started a unit of manufacturing of roofing

tiles under name and style M/s. Sunshine T iles and potteries at Morb i. They have s ecured mill fro m Bank of Ind ia Main Branch, Mo rb i. In 1987, they have organis ed another roofing tiles unit at Lilap ur Road, Morb i under the name and style of M/s. Jaystar Industries.The workers are very familiar to work in this ind ustry. In 1991, they have organised another unit of manufacture of nuts and bo lts of MS and SS at Morb i G IDC und er the name and style o f Sunshine F asteners. In 1994, they have started the other products. They manufacture of ceramic glazed wall tiles und er the name and style of M/s. Favourite Ceramics. In 1998, they have also s tarted another industry, und er the na me and style of M/s. Jayson Ceramics.Looking to the demand of ceramic floor tiles experienc e in this line is most important and the gro up has more than 60 dealers network, whic h is necessary to bus iness. So, they have also started ano ther ind ustry, under the name and style of M/s. Sunhill C eramics Pvt. Ltd.
9

In 2009, they have also s tarted another industry, und er the name and style of M/s. Favourite P lus Pvt. Ltd. This industrys product is to manufacture vitrified tiles only. It is good for them that they dont have to find another young team because it is alread y well equipped with the family members.

10

ORGANISATION CHART

11

SIZE OF THE FIRM

According to the definitio n given by Government of Ind ia, the s i ze of the ind ustry can be d ivid ed into three main types. Small Scale Organisation Medium Scale Organisation Large Scale Organisation If companys investment in p lant and machinery is more than 3 crores, it is called large scale o rganisatio n. The investme nt o f Favourite P lus Pvt. Ltd. in fixed assets is of Rs. 12, 00, 00,000.Therefo re, it is coming und er the category o f large scale organis ation. It also uses manpower, electronic mac hinery and having more than 76 workers.Its also New Digital Machine.

FORM OF ORGANISATION
According to the form of o rganisatio n, the organis atio n c an b e divid ed as fo llows : Private sec tor unit Pub lic sector unit Jo int secto r unit

In this firm, it is a Priva te Limited firm .

12

LOCATION AND SITE PREFERENCE

The s ite of this unit is located at 8/A National Highway, at Dhuva, whic h is only 18 Kms. away from Morb i C ity. It is in ceramic zone with numb ers of other c eramic units. It is a main and most

important part of ind ustry has chosen very s imp le and suitab le locatio n. It p lays a vital ro le for locatio n.

I.

La nd:In Dhuva at Morb i, land and labour are found very cheap, so,

Favourite Wall tiles started at this p lac e.

II.

La bo ur: In b ig c ity labo ur cost is very high, b ut in Dhuva at Mo rb i pro vid e

cheap and educ ated skilled labour bec ause of the ceramic zone is situated.

III.

Tra nspo rt: In Dhuva at Morb i is s ituated in ceramic zone, so transportatio n

fac ilities are also availab le.

13

TIME KEEPING SYSTEM

Time keep ing system is very important as all the workers should arrive at reporting time and start their work immed iately. be ac hieved. If they are irregular than there would b e less outcome and expected target will no t T herefore, the wo rkers are given cards in which their

arrival and departure time is written regularly and therefo re punctuality is maintained. Industry:This indus try is running for continuous process i. e. 24 hours. It is working in 3 s hifts. The timing of the shifts are as under. 08:00 AM to 04:00 P M 04:00 P M to 12:00 Mid night 12:00 Mid night to 08:00 AM

Office :Offic e ho urs fo r industry are as under. 08:00 AM to 12:00 Noon 02:00 P M to 06:00 P M

14

PRODUCTION DEPARTMENT

15

CONTAINS

1. Intro duc tio n 2. Ra w Mate ria l Ava ila bility 3. Ra w Mate ria l Use d 4. Inspec tio n of ra w ma te ria l 5. Types of mac hine s 6. P rocess of pro duc tio n 7. Abo ut pro ducts 8. Qua lity Ma nage me nt

16

1.

INTRODUCTION

The productio n of a firm is concerned with the creation of a product or services required to satis fy custo mer needs. In any bus iness, suppliers are need ed for product or service, it is quite obvious that activities of produc tion system must b e related to the c ustomer demand or reflected in the continuous flow o f order. It is the most important department amo ngst the other departments of an organizatio n. marketing department. dep artment Personnel dep artment, are very much finance d epartment, on p roductio n d epended

2.

RAW MATERIAL AVALABILITY

Raw materials are the bas ic req uirement for any industry.

R aw

materials are converted into finis hed goods after vario us processes on it. Raw materials are availab le with help of road ways if purchased fro m the country. If the materials are purchased from other countries than it is availab le with help of railways.

17

3.

RAW MATERIAL USED

List o f raw materials used for pro duc tio n of wa ll tiles

Raw Material Pots feldspar Soda feldspar Quartz Ball C lay Ashapura C lay Kad appa C lay China C lay Ukraine C lay STPP Body Stain Solub le S alts LPG Zircon

Place where it is obtained Rajasthan Rajasthan Rajasthan Rajasthan Kutch And hra Pradesh Gujarat Import from Europe Import from C hina Import from Italy Import from C hina Madhya Prades h Gujarat Import from Australia

18

4.

RAW MATERIAL USED

List o f raw materials used for pro duc tio n of wall tiles

Raw Material Pots feldspar Soda feldspar Quartz Ball C lay Ashapura C lay Kad appa C lay China C lay Ukraine C lay STPP Body Stain Solub le S alts LPG Zircon

Place where it is obtained Rajasthan Rajasthan Rajasthan Rajasthan Kutch And hra Pradesh Gujarat Import from Europe Import from C hina Import from Italy Import from C hina Madhya Prades h Gujarat Import from Australia

19

5.

INSPECTION OF RAW MATERIAL

It is maintained in Favourite P lus as per

Raw materials are inspected and checked before they are sent to production dep artment.

guidelines of ISO-9001:2008. Vario us steps for inspec tion o f raw material c an b e showed as fo llo ws. Samp ling fro m truck MC% content Grind ing Drying Powder preparatio n MC% add itio n Press ing Drying Firing Loss on ignitio n Fired co lour Water absorption

6.

TYPES OF MACHINES

90% o f mac hineries used in F avo urite P lus Wall T iles are imported fro m Japan.

20

L ist of Machineries : Weighing hopper Conveyor Wader Ball mill Stirrer Bungler Spray drier Slip p ump Silos Vib rator with magnet Elevator Hyd raulic press (h600 mt) Chilling p lant Load ing machine Horizo ntal dryer coo ler box Glaze line Unload ing mac hine Screen printing machine Compens ator Head po lishing line Fast s ingle layer ro ller kiln Chamfering line Souring line Plastic strapp ing machine Fork lift Air compressor Vertical dr ier Generato rs

21

7.

PROCESS OF PRODUCTION

Production p rocess is very important p rocess as the produc t manufactured in the co mpany should satis fy the need of the customer. The q uality is also to b e maintained and the given target s hould b e achieved in the given time p eriod. production stages. The fo llo wing are the main

P roce ssing o f

ra w mate ria l:-

The first and foremost step to manufacture W all tiles is batc hing i. e. feed ing the box with different typ es of clay accord ing to the perc entage decid ed. Batc hing inc ludes fo llo wing typ es of c lay. Ukraine C lay 16% Ball C lay 5% China C lay 20% Soda Feldspar 19% Potash Feldspar 35% Quartz 5%

F o rmatio n of tile bo dy a nd dry ing: The powd er is taken fro m the s ilos and after s ieving on a vibrato r fitted with a magnet, it is fed into hoppers of the hydraulic press where the powder is pressed in the shape of a tile of spec ific s ize as per the cavity of the d ie. Green tiles coming o ut of the press are s ent to the horizontal ro ller d ryer where they are heated to a spec ified temperature to remo ve the mo isture.

22

P re pa ratio n o f de sig ns a nd sc ree n printing of tiles: In the glaze line and printing sec tion, various typ es of designs are prepared and printed on the dried tiles b y app lying colours on the screen printing mac hine.

F iri ng:The tiles thereafter are fed into the fast s ingle layer ro ller kiln in which the tiles are fired. The kiln has d ifferent temp eratures ranging fro m 500 0 C to 1500 0 C in d ifferent zones.

P olishing: The baked tiles are sub jected to polis h ing by us ing 32 head polis hing line. T he tiles are also s ide c hamfered. Multi finish tiles do not need polis hing operatio n.

S orting and Packing:The po lis hed tiles are sub jected to quality checking and sorting, where an operatio n marks out tiles with d efects and d ifferent grades quality. Different grad es of finis hed tiles are then p acked into d ifferent types of p acking box whic h are marked accordingly.

23

8.

ABOUT PRODUCTS

Favourite Plus Wall T iles are manufacturing vitrified tiles having vario us cate gories and sizes. They manufacture tiles of different p lain colours like: Terry cotto n Mushroo m Ruby p ink Jais almer Dove gray Ivory Jet b lack White Aqua marina, etc. In marb le series, they are having fo llo wing range. Vogue Venic e Valerie Vixen Vo lcano Virgin Vital Allun Arktic, Venus Etc.

24

9.

QUALITY MANAGEMENT

Quality contro l means checking the q uality, s ize, s hape, capac ity and usefulness of some o f the samp les selected fro m lo t of the finished product. If any variatio ns are there than they are to b e corrected or that useless product is send to scrap yard. A well defined quality management system satisfying ISO 9001 -2008 quality stand ard and continual improved.

25

MARKETING DEPARTMENT

26

CONTAINS

I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII.

Introduction Organization Chart Market Size Market Segmentation Pricing Advertisement Channel of Distribution Market Research Credit Facility Sales Promotion Export potential Competitors Consumer problem handling

27

I. INTRODUCTION

Market

is the p lac e where buying and selling is carri ed out by

buyers and sellers i. e. trad ing activity are carried out. Marketing is a social and management process that invo lves id entifying unsatisfied needs or wants of the consumers, produc ing goods or services to satis fy those needs or wants, determinin g appropriate price, pro motio n and d istributing and maintaining relatio n with the market. In todays modern area each and every firm gives prio rity to have a d ifferent marketing department. sales pro motio n, etc. Marketing invo lves the activities such as advertis ing, pub lis hin g, market research, d istrib ution aspect,

28

II. ORGANISATION CHART

29

III. MARKET SIZE

As per S AKET INDUSTRIAL DIG EST, JUNE 1996, s ize of W all tiles is as und er. The W all tiles market s ize is estab lis hed at Rs. 525 Crores, where as floor tiles segment is Rs. 300 C rores. The demand for this tile is

gro wing at pace of 30%. T he productio n capac ity is expected to b ulge by nearly 5.35 Lacs tones by 1997-98.

IV. MARKET SEGMENTATION

Market segmentation is based upon the market oriented strategies and p hilosophy segmentation gives spec ial emphas is on the demand s ize of the market. Market segmentation is a method of ac hieving maximum market response fro m limited marketing resourc es by the markets for to id entify the target custo mer. Generally, ther e are two types of market segmentatio n. People oriented appro ach Consumer d emand or product oriented approach. In case of Favourite P lus, there is no need for market segmentatio n. Their market is fixed, so they think that there is no need of market segmentatio n. They p roduce the item according to ord ers they rec eive.

30

V. PRICING
Price is the amount charged for the product or service inc lud ing any warranties or guarantees, delivery, d iscounts, servic es or other items that are paid of the cond itio ns of sale and are no t paid fo r separately. satisfactio ns. To the buyer pric e is a p ackage or exp ectatio ns and

Pric ing is an important dec is ion that every comp any has to take high pric e or low pric e may create a bad reputatio n of co mpany. The price of a product is a cruc ial dec is io n. In F avo urite P lus Ceramics, pric ing po lic y is cost + profit. Whatever expenses have inc urred during the manufacturing of produc t is cons idered + profit is too inc luded. Competitors pric e are also considered, their prices are higher than their competitors.

VI. ADVERTISEMENT

Now a day, marketing p lays an important ro le for the entire organis ation. Marketing is very much necessary for all the produc ts as without marketing the cons umer will have lac k of informatio n about the products. Thus, to make the consumers aware of the prod uct, marketing is done. Favourite P lus advertise their prod ucts on very large scale. They advertise their products on televis io n and also do wall paintings all over Ind ia. They also dis trib ute pamp hlets fo r t he s ame.

31

VII. CHANNEL OF DISTRIBUTION

The wo rd Channel has its origin to the French wo rd used for Canal. Thus, channel is route through whic h goods passes from one end to another. In other words, the route through whic h goods move

fro m the p lace of p rod uctio n to the p lace of consumptio n is called Channel Dis trib ution.C hannel of d istrib utio n is the pathway o r route through which goods are transferred fro m the hands of producer to the consumers or fro m the seller to the buyer. According to one author, A channel of d istributio n for a produc t is the ro ute taken by the title to the goods as they mo ve fro m the producer to ultimate consumer. In this industry, the d is trib ution c hannel is

There are about 300 dealers in all s tates of country .

32

VIII. MARKET RESEARCH

Market res earch is the systematic and intelligent investigatio n o r study of the who, what, where, when, why and how of actual and potential b uyers. It is the s ystematic gathering reward ing and analyzing of data about p roblems connected with the market p lac e. It is the scientific and contro lled process of gathering of non routine marketing informatio n help ing management to so lve marketing prob lems. planning contro l c yc le. In this industry, first of all they stud y about custo mers It ac ts as the

inves tigative aims o f marketing manager and management tool in

req uirements.

They try to introduce good fac ilities every time, they

have a marketing research team whic h go es all over country.

IX. CREDIT FACILITY

To run the bus iness smoothly and regular c ash flo w, company gives some cred it fac ility to the buyers. Favourite P lus also does the same thing. They sell those products in the market o n cash and cred it bas is. fac ility to the buyers. They give 3 cro res cred it

33

X. SALES PROMOTION
Sales pro motio n cons ists of short term inc entives to encourage purchase or sales of a produc t or service. selling. It is demand stimulating

devic es des igned to supp lement advertis ing and fac ilitate personal It is a d irect ind ucement which offers an extra value and incentive for the p roduct to and sales force d is trib utors to ultimate customers.

In this ind ustry, they do no t adopt any techniq ue because o f potential marketing and potential c ustomers.

XI. EXPORT POTENTIAL

With majo r market operating up and gap of techno logic al advanc ement in the manufacturing being narrowed the market fo r products will grow. However, in mainly depend upon the conformity to develop countries strict s tandards shall d etermine gro wth. developed export market. Ind ian ceramic The increased productio n c apac ities shall see the companies mo ving towards ind ustry in sp ite o f advantages accord ing out of lo w labo ur costs is wrought with the problem of quality and des ign comp anies are fortifying their R& D designs.

34

XII. COMPETITORS
It is rightly s aid that, W itho ut comp etito rs market does not s urvive.

Favourite P lus Ceramic is also starving in to sale its produc ts in the competitive market by continuous develop ment of a product find ing new areas of consump tio n.

Their comp etitors are, Kajaria Bell H R Jo hnson Varmora Lexus Vrundavan Sun-Heart Lorenzo Exc el, Etc.

35

XIII. CONSUMER PROBLEM HANDLING

Customer is the king of the market, is a very attractive s logan. Consumers generally never face any prob lem for F avo urite P lus but in spite o f this, if any pro b lem arises than fo llo wing hierarchies o f problem hand ling is fo llo wed.

36

ANALYSIS
1. Market Analysis

This pie chart shows market analysis of favourite ceramics wall tiles from year 2008 -2011. In 2008 , 2009, 2010 and 2011 marketing of the company is respectively 16%, 22%, 27% and 35%. In 2011 company had achieved maximum marketing of their products.

37

2.

SWOT ANALYSIS

SWOT Analys is means the analys is o f S W O T Strength Weakness Opportunity Threat

S tre ngth : Favourite Plus ceramic Pvt. Ltd. is giving emp lo yment aro und 100 emp lo yees. Strong market presenc e Develop rural area to reach at the global positio n.

Weakness : Irregularity in time cost. Favourite P lus ind ustry entered late in the market.

O ppo rtunity : Rap id ly and continuo us growth in the market, so company will think about expans io n.

T hreat : Highly comp etitive market agains t imported W all tiles partic ularly the Chinese manufacturer with their aggress ive lo w cost

manufacturing advantage.

38

FUTURE PLANE

FUTURE PLANE
39

Future Plane of Favourite Plus Ceramic is to become leading compines in the vitrified tiles all over the world. They will be installing new latest machines for increasing productions and various designs and ranges to meet the upcoming market needs. Also they wanted to try servicing those services.

40

SUGGESTIONS

41

SUGGESTIVE STRATEGIES
Some of the Suggestions stratergies to the marketing problems of Favourite Plus Ceramic can be under.

(1)

FREQUENT ADVERTISEMENTS

One of the best solutions to it marketing problems in frequent advertisement of product of FAVOURITE PLUS CERAMIC in different TV programmers. It should specially select prime time to seek attention of major target audiences. There should be High only through television but also other media like cell phone,radio,print media,outdoor media etc.due to high frequency of effects of carry over will also reduse to great extent. adopt the

(2)

BUILD STRONG BRAND IMAGE

Previously the brand image of FAVOURITE PLUS CERAMIC was very strong due to Lower frequency of advertisements the consumers brand recall ration reduced & as a result the brand image also become some what weaker. So frequent advertising & thus remarking of its products will help FAVOURITE CERAMIC to build up a stronger brand image. PLUS

Thus, there are some of my suggestive strategies to the marketing problems fuad by FAVOURITE PLUS CERAMIC.

42

43

CONCLUSION
I have visited FAVOURITE PLUS CERAMIC and got an experience will definitely help in my future.

The co-operation of the employee is good. The management is also effective and efficient. All the departments are also handled by the authorized person who have great experience and it is one of the response of sues of the firm. So, I wish the Company makes more and more profit,fulfill to future plans and get good global market.

44

45

BIBILIOGRAPHY

Marketing management Varma &. Agrawal Financial Management Varma & Agrawal Financial Management K. Aswasthapa. Marketing Management Philip Kottler Web-Site www.favouritetiles.com

46