Name of the Student PRATEEK RAKESH SINGH

Program MBA(M&S)

Class Roll Number C-39

Enrollment Number A0102215059

Name of Faculty Dr. ANU PRASHAANT

Guide

Case Study Title Growel Chemical Division (Indirect sales) v/s Paint
Division (Direct sales)

Student Declaration

I declare (a) That the work presented for assessment is my own, that it has not previously been
presented for another assessment and that my debts (for words, data, arguments and ideas) have
been appropriately acknowledged (b) That the work conforms to the guidelines for presentation
and style set out in the relevant documentation. (c) The Plagiarism as taken by Turnitin is
________ %.

Date : Student Signature

(Faculty guide name & Signature)

Designation & Department
 GROWEL CHEMICAL DIVISION (INDIRECT SALES)
V/S
PAINT DIVISION (DIRECT SALES)

ABSTRACT

India has been major hub for most of the selling companies in the world and is going to be one of
the biggest markets in the world as population is one of the major factors for the growth of the
industry. Without doubt, India has the greatest potential for sales in the world whether it is direct
selling or indirect selling. This case study shows that Grauer & Weil (India) Limited has two
division i.e. Chemical and Paint division and company uses two models for selling their products to
customer. In Chemical division sales is done through dealers and Paint division has incorporated
direct sales to customers. This case study aims to study the impact of both direct selling and indirect
selling of companies. This study also focused on determining the satisfaction index level of dealers
which will company to increase its sales. This study focuses on problems being faced by company
and providing genuine solutions to those problems. This study is focused on the present and
upcoming marketing trends of the selling of company products all over India. This study also
focused on which method should Growel incorporate with suggestion to gain competitive
advantage, customers and long term market share.
Keywords: Direct sales, Dealers, Calibrations, Dealer satisfaction index
Introduction

The chemical industry of India is one of the most established sectors of India which plays a very
important role in countrys economic development. The chemical industry of India is also one of the
oldest and encompasses both large and small scale units. The chemical industry is also one of the
most diversified industries which include basic chemicals and its products, fertilizers, gases,
pharmaceuticals etc. The Indian chemical industry classified into two segments i.e. organic and
inorganic chemicals. The organic segment includes petrochemicals, drugs, cosmetics etc. The
inorganic segment includes alkalis, dyes and dyestuff into basic, especially and fine chemicals.
The Indian paint industry has completed 100yrs of manufacturing. The manufacturing of Indian
paint started around 1920 when Shalimar paint set up its factory in Kolkata. The Indian paint
industry is only industry whose growth rate is doubled in last 5 years. The large scale sectors are
dominated by four players in paint sector such as Asian paints, Nerolac, Berger, and Dulux. The
Indian paint industry is classified as decorative and industrial paints. The Indian paint industry is
classified as decorative and industrial paints. In domestic market, decorative segment account for
70% and industrial segment for remaining 30% of paints. The top 5 companies make up more than
80% sales of the organized market. The geographical distributions of paint industry are Mumbai,
Ahmedabad, New Delhi, Kolkata, Noida, Pune, Karachi etc. The paint is defined as a coating
material (liquid or solid) which when spread over surface of the product forms a film on surface of
the product in order to protect and decorate the surface.
Today Companies must construct and maintain a gradually evolving complex channel system and
value network. Marketing channels are parts of organizations which participate in the process of
making a product or service available to end users.
A marketing channel moves finished goods from producers to end users. A manufacturer sales a
physical products and services which require three channels: a sales channel, a delivery channel,
and a service channel.
A zero-level channel, also known as a direct marketing channel, in which manufacturer selling their
finished goods directly to the end users. The figure shows the channels which commonly used in
B2B marketing. An industrial-goods manufacturer can sell their finished goods directly to industrial
customers; or it can sell to industrial dealers/distributors who then sell to industrial customers; or it
can sell through its own sales branches/depot directly to industrial customers. Zero, one and third-
level marketing channels are quite common in manufacturing industries.
Overview

The Growel Dadra Plant is located in the UT of Dadra & Nagar Haveli approximately 175 kms to
the North of Mumbai. It is a one of the manufacturing plant which has two divisions one is
chemical division and another is paint division. The plants manufacture the entire range of
electroplating chemicals used in the Surface Finishing industry and plant is also ISO 9001:2008,
ISO 14001: 2004 and BS OHSAS 18001:2007 certified. The Paint Plant manufactures various types
of coatings for all segments across the Paint Industry. The Plant is ISO 9001:2008 & ISO
14001:2004 certified. The Growel company has same objectives for their both plants division. The
objectives of the company are as follows:-
Value added products and services
Continual innovation
Process rejection internal quality control-needs to be zero(to reduce rework)
Timely delivery
Total customer satisfaction

Chemical division Paint division

The sales and distribution network of Grauer & Weil for both the division in sales and distribution
happening through dealers is for chemical and sales and distribution happening through depot is for
paint division. In sales through dealers finished goods is dispatch from the company to dealers
through proper documentation in order to have traceability of the products and then finished goods
is sell to customer from dealers. Whereas in direct sales company has direct contacts with the
customers and as per demand finished goods is sell to the customer.
This case study shows that Grauer & Weil (India) Limited has two division i.e. Chemical and
Paint division and company uses two models for selling their products to customer. In
Chemical division sales is done through dealers and Paint division has incorporated direct
sales to customers. As company uses two modes of selling products which method is best for
the company is to be decided and what problem being faced by company during
manufacturing to dispatch of products to end users? While doing my case study in the Growel
I found company is facing few problems and improvement should be done by company in that
regards in order to gain competitive advantages.
The various problems being examined during performing study are as follows:
Not good quality materials received from suppliers.
Calibration recalls notice.
Wrong labeling of products.
Customer requirement changes.
From dealers side: - vehicle not having proper papers, not getting C-forms from
the dealers timely.
Finished goods materials recall.
Not receiving LR copy on time.
These problems are related to various parameters such as materials being produced my
company is reactive materials which are highly reactive and can change its colors and
composition when come in contact with oxygen, instruments being used for testing the quality
of products are kept at far location which need monthly calibrations, human factors while
filling of materials and fixing wrong label to the drums of finished products, customers
requirements of finished goods changes etc.
The various limitations to the situations are respondents were too busy to give exact answer to all
questions; some working section has only authorized entry so I was unable to collect data from this
section; there are chances of sample error; the finding of the study may not be applicable to other
places except Dadra Unit.

Status Report

As these problems being noticed and information is send to the higher level i.e. to HODs of
concerned departments in order to have proper functioning of organization process. As
problem related to calibration of instrument is being handled by QAD (Quality assurance
department) department, wrong labeling of material is being handled by PRD (Production
department), looking of LR copy of vehicle is being handled by Dispatch department. And
various other problems are being tackled by the HODs of concerned department properly.

CASE Problems
CASE problems 1:- Not good quality materials received from suppliers.
As purchase orders of raw materials being placed by the RMS (Raw material section) by over
viewing their stock level in their warehouse. As it is a chemical and paint industries, material
being used for manufacturing the electroplating chemicals are highly reactive when exposed
to air it changes its color. As materials being received at loading point of the company
immediately samples of raw materials is taken for quality check by QAD department. After
testing of raw material if material is OK it is labeled with green color and if material is not
OK then it is marked with red color and materials is send backed to suppliers.
Action to problems: - Suppliers are being asked to use the containers which are air tight as
materials are highly reactive.
CASE problems 2:- Calibration recalls notice.
The instruments which are being used for testing the quality of materials by Quality assurance
department at time of receiving the raw material and manufacturing of finished goods. The
instrument need to be calibrated frequently and placing of materials from instrument is quite
far. So it impossible to bring raw material and finished goods for testing as it will be time
consuming.
Action to problems: - Training of employees how to calibrate the instrument anf providing
master instrument at each inspection department.
CASE problems 3:- Wrong labeling of products.
This problem arises in the filling and packaging section of the finished goods. The main
reason of this problem is that as there is lot of finished goods to be packed at same time on the
packaging floor. Another reason is the literacy rate as the labour working on floor are not so
educated and sometime they fix wrong label of finished goods on different material.
Action to problems: - To handle this problem Management review board has told to have
multiple inspections of the finished goods at packaging section and as well during dispatch
also.
CASE problems 4:- Customer requirement changes.
This problem occurs from customer sides during placing the sales order. In this suppose
customer place order of 5L chemical products and suddenly he ask for 1L same chemical
product and not require 5L product.
Action to problems: - To tackle this problem MRB has taken decision that order limit will be
5L only. The order below 5L will not be accepted.
CASE problems 5:- From dealers side: - vehicle not having proper papers, not getting C-
forms from the dealers timely.
This problem occurs from dealer side when they send their vehicle to take the orders from
company. As per govt. rules and company safety policy all loading vehicles entering the
company premises has to come with proper papers such as dealers order list, PUC etc. If any
of the papers is missing the vehicle will not be allowed to enter the company premises.
Because of this problem when vehicle is sent back it takes time to the driver to return back
with proper papers and this lead to time consuming and the finished goods remain on the
loading bay blocking the other materials which is to be loaded into the vehicles.
Action to problems: - In order to tackle this problem company ask dealers to send the scan
copy of the original papers of required documents through e-mail so that during arrival of
vehicles material is loaded in the vehicle on time and the material is send to end users on time.
CASE problems 6:- Not receiving LR copy on time.
LR copy is lorry receipt copy which means from which lorry the consignment is send to the
dealers or distributors. This problem occurs when sometime vehicle on which finished goods
of the company is loaded not reached on time to concerned dealers. So in order to have
transparency where the lorry is reached dealers or distributors require this LR copy.
Action to problems: - To handle this problem company decided to send the LR copy to
dealers or distributors through e-mail also. This also helps company to increase the dealers
satisfaction level.

Appendices

Sr. Name of the dealer Destination % of dealer Reason for disagree

No satisfaction
level.
1 Shreenath sales Nasik 86%
corporation
2. Bombay polishing Madurai 82.50% 1. No Technical support in this area.
Metal-
2. Trichy chemist is working for Trichy dealer
only. Is he approved to satisfy trichy dealer only.
We need separate technical person for Madurai.
3 Krishma Distributers New Delhi 82%
4. Naveen Rassayan Gurgaon. 86%
5 Udyogic rassayan Ghaziabad 98%
6 Naveen Sales Faridabad. 70%
7 Resources India Trichy 76 % Huge loss due to technical complaint in Grow
 clear Theta.

8 Shri Balaji Chemicals Coimbatore 76 % We need some chemicals packing lit instead of
kg (E.g. Surfix Zn 602, Trichrome Hb 1701,
Trichrome Hb 2203 C)
9 Amit Chemical Ahmadabad 94% 1.Some products packing in bags are not
properly specially proper packing products

2. We are not getting hard copy of o.c. & price

list which is required most important us. When
create problem for us formerly in were getting
the same
10 Dynachem Baroda 90%
11 Krish Chem Vapi 96%
12 B. N. Shreekant & Bangalore 74 % Care to be taken for in producing packing of
son cartoon Box. Sometimes we receive in open
condition.
13 Plating Chemicals Chennai 96%
14 Resources India Chennai 70% 1. Passivation problem Zinc fix Olive 952 &
Trichrome Hb 1720 in 5 ltr packing.

2. Document delivered late by courier &

sometimes bills send to other dealer.
15 Gomati Agencies Madurai 90%
16 Veekay sales Mumbai 98%
17 K.Bharatkumar & Malad 88 %
com
18 Mahalakshmi Chennai 88 %
chemical agencies
19 Grow Star sale Pune 94 %
20 Munny Metal Works Chandigarh 98 %
21 Shree Medical store Varanasi 78 % Against full advance payment. If the material are
executed then all the relevant documents must
be forwarded directly dealer & not through
regional offices.
22 Chemical House Chandigarh 100%
23 Shah sales Mumbai 100 % Our pending dispatches- Balance, small quantity
corporation to not dispatch or send incorporate other ocs.
24 Krish Chem Vapi 90 %
25 Girish Pune 66 % 1. Passivation products problem
Trading company. Trichrome 1000, & Trichrome hb 1720.
2. Document delivered late by Professional
courier.
3. Lr copies not received within time.
26 Growtech agencies Malad 70 % 1. Not receiving the L.R Xerox copy enclosed
with bills.

2. Test certificate not received.-we have to

phone & remind to mail for Q.C.

3. We have to phone and ask for Xerox copy

where LR is attached. (CC attached.)
We are very happy with the system of finding
email from system. It is just like online. We are
easily complete the requirement of sale tax
dept. for 303/303 in future.
27 Krish Chem Vapi 94.94%
28 Dyna Chem Baroda 86.00% Remark: - Kindly arrange to dispatch the
material as per our urgent requirement. I am
suffering important item (as per our)
requirement not in stock when our urgent
requirement for our loyal Part.
29 Science sales Sonepat 100.00%
30 Growtech Agencies Malad 72.00 % 1. Due to mail of GP every day the system have
improved more than required. Every day we are
getting the G.P as soon as material id
dispatched.
2. Till you do not get L.R copy from us. Which
receive from transport. Till we do not get our
documents.

31 Munny Metal works chandigargh 80.00%

32 Reena sales Mumbai 98.00 %

33 Shreenath sales Malad 84.00 %
34 Gandhi traders Pune 80.00%

Sum of % total Of dealer satisfaction 2931%

level
Sum of % total of dealer satisfaction Dealer satisfaction Index
level
Total No. of Dealers
2193 86.2188
34

References

http://www.growel.com
http://www.grauerandweil.com/about-us.html
http://www.essentialchemicalindustry.org/the-chemical-industry/the-chemical-industry.html
http://www.coatingsworld.com/issues/2007-10/view_features/the-indian-paint-industry
http://www.paint.org/about-our-industry/history-of-paint/