PART (A)

INDEX NO. 1 2. 3. 4. 5. 5. 6. 7 8 TOPIC ORGANIZATIONAL DESIGN PRODUCTION MARKETING FINANCE PERSSONEL SOCIAL RESPONSABILITY AWARDS AND ACHIVEMENT BIBLIOGRAPHY SOURCES OF INFORMATION PAGE NO. 3 11 16 28 34 39 41 43 44

(A)ORGANIZATIONAL DESIGN

1. TOP MANAGEMENT

Managers at or near the upper levels of the organization structure who are responsible for making organization wide decisions and establishing the goals and plans that affect the entire organization. 1(Stephen P. Robbins, 2008) Highest ranking executives responsible for the entire enterprise. These are those people who are translates the policy into goals, objectives, and shares projects which will make the industries future bright. They are the one who take key steps in every organization. They are the one who are solely responsible for every good and bad thing that organization faces2(). It means that if the company earns profit or loss the top management is the one who are responsible for it. Main Function of Managements:-

1 Stephen P. Robbins, Mary Coulter, Management(Pearson Education),Page no. 7 2 www.businessdictionary.com/definition/top-management.html

Frames policy Decide the goal of the industries Decide future projects Does planning, organizing and other management functions

These are the main steps the top management does.

1. HIERARCHY

DEFINATION OF HIERARCHY A body of officials disposed organically in ranks and orders each subordinate to the one above it; a body of ecclesiastical rulers.3() In simple term we can say that hierarchy is going from lower level to the upper level or from upper level to the lower level within the organization and within the department. IT IS IMPORTANT FOR ORGANIZATION?

It is important because of the following two reasons:i. As there are lots of people within an organization so to control them and make them do their work with unity for achieving the overall objective of the people. ii. The work is divided into small parts so to make it economic part with view to pursuing the ideal of task specialization so essential to managerial policy.

3 http://www.brainyquote.com/words/hi/hierarchy173415.html, accesed 31-03-10

1.1 FIGURE SHOWING GENERAL HIERARCHY IN THE ORGANIZATION4(Stephen P. Robbins, 2008)

1. ORGANISATIONAL STRUCTURE

Formal and informal framework of policies and rules, within which an

organization arranges its lines of authority and communications, and allocates rights and duties. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions.
In a decentralized structure, the decision making power is distributed

and the departments and divisions have varying degrees of autonomy. An organization chart illustrates the organizational structure5().

FOUR MAIN ORGANISATIONAL STRUCTURES :-

I.

Functional Structure :-

Under this structure the employees are grouped under certain divisions. For example all engineers are grouped under engineers. This leads efficiencies in that type of work because there are lots of expertises available to you. II. Geographical Structure
4 Stephen P. Robbins,Mary Coulter,Management(Pearson Education),Page no. 6 5 www.businessdictionary.com/definition/organizational-structure.html. accesed on 7-02-10

It means that according to the geographical location we divide our work or company take for e.g. we divide on the basis of direction: - then we can have North, East, West, South or according to region Northern region, Eastern region, Western region, and Southern region.

III.Product structure :The company divides its work according to the different products they manufacture like take Tata industries can be divided into Tata tea, Tata salt, Tata nano, Tata steel. Accordingly the whole industries can be dividing. IV.Matrix Structure This structure is a combination of both the functional and the product function which makes the employee more efficient and also helps them to learn some management skills. It helps the organization to eradicate the demerits of both the structure. And make it more efficient.

4. DEPARTMANTALIZATION

It means that certain works which are of similar nature are grouped under one roof. It means that they form a department of similar function. The organization is divided into certain divisions like finance, HR, Marketing etc are example of department6(). Different types of departmentalization are :-

6 www.businessdictionary.com/definition/departmentalization.html, Accesed on 7-02-10

 Functional departmentalization :-

In this type of departments the persons which have similar types of skills and knowledge are grouped together. Example those who are good in IT are grouped together. Product Departmentalization :-

Grouping activities by product line. It means that those product which are of similar nature are grouped under one manager. For Example in footwear shop their ladies, gents, and children footwear but each are separately shown. Customer Departmentalization :-

Grouping activities on the basis of customer like you may divide customer into frequent customer, upper level customer (richer), middle level customer. Geographic Departmentalization :-

Grouping activities on the basis of territory. If an organization's customers are geographically dispersed, it can group jobs based on geography. Like, customer more of them are situated in north so you need to capture them so you may have a small plant there. Process departmentalization :-

Grouping activities on the basis of product or service or customer flow. Because each process requires different skills, process departmentalization allows homogenous activities to be categorized.
8

PRODUCTION

DEFINATION OF PRODUCTION Production can be defined as process and transformation of raw inputs into finished good.

1. PLANT LOCATION :-

It is a particular location at which your plant will be set up. This place is decided after lots of research and finding as once the place is decided and then to place it somewhere else will leads to lots of loss for the company or the organization. There are certain criteria on which an ideal location is set up :1. Easy availability of worabour y tion is whic f loss for the company

or the organization.ecided and then to place it somwhere ker and also cheap. 2. Easy availability of raw material. 3. Market should be nearby so less transport charges. 4. At least price best product can be made or available to the customer. 1. PRODUCT PORTFOLIO :The variety of products manufactured or supplied by an organization7().

7 http://dictionary.bnet.com/definition/product+portfolio.html. Accessed on 30-03-10

10

It means that for a company which have lots of manufacturing products so in that case than make an portfolio of one product of similar nature like a stock market a individual have portfolio of stocks of different stocks of high risk grouped under one and low risk under one.

Importance of having Product Portfolio: It becomes easy for the company to reduce the risk.

Having product in different sector make the company to have lots of profit from different products.

1. PLANT OPERATION :-

It means that how a plant actually performs his work or how actually the different process can be combined, through which a raw material gets converted into finished goods.

1.2 FIGURE OF GENERAL PLANT OPERATION

2. QUALITY CONTROL :-

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Quality Control (QC) is a system of routine technical activities, to measure and control the quality of the inventory as it is being developed. The QC system is designed to: (i) Provide routine and consistent correctness, and completeness; checks to ensure data integrity,

(ii) Identify and address errors and omissions; (iii) Document and archive inventory material and record all QC activities.8()

Quality control is a process employed to ensure a certain level of quality in a product or service. The basic goal of quality control is to ensure that the products, services, or processes provided meet specific requirements and are dependable, satisfactory, and fiscally sound.

DIFFERENT TYPES OF Standardization) are:-

ISO

(International

Organization

for

ISO 9004-1: General quality guidelines to implement a quality system. ISO 9004-4: Guidelines for implementing continuous quality improvement within the organization, using tools and techniques based on data collection and analysis. ISO 10005: Guidance on how to prepare quality plans for the control of specific projects. ISO 10011-1: Guidelines for auditing a quality system. ISO 10011-2: Guidance on the qualification criteria for quality systems auditors. ISO 10011-3: Guidelines for managing quality system audit programmes. ISO 10012: Guidelines on calibration systems and statistical controls to ensure that measurements are made with the intended accuracy. ISO 10013: Guidelines for developing quality manuals to meet specific needs.9()

8 http://www.ipcc-nggip.iges.or.jp/public/gp/english/8_QA-QC.pdf Accessed 23-02-11 9 http://www.iso.ch/home/html/ Accesesd 30-03-10

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MARKETING

DEFINATION OF MARKETING

13

Marketing (or advertising) is the process by which companies advertise products or services to potential customers. It is an integrated process through which companies create value for customers and build strong customer relationships. So in a simple term we can say that if a company wants to grow in todays world they need to have a good marketing concepts in their mind.

1.3 Figure of Marketing Pix

1. 4 Ps of MARKETING The 4 Ps of marketing are :i. Product ii. Price iii. Place iv. Promotion

Product

The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support. It also includes that the product you are preparing should have some superiority over the goods of your competitor so that your product is very well recognize by the customer. And if you do not have it than you have to think about what the competitor product is giving is there something that he

14

is not giving than that thing have to be find out and should be included in your product to make it successful.

Price

It is a very important from the company or industries point of view because the profits of a company depends upon it. The pricing of the products should be fare so as to survive in this type of market. Because if you hike the prices a little bit your competitor will have low prices due to which you will lose the customer. And your competitor will gain so it is important to have fair prices but say for a particular period of time you may hike the prices to earn certain amount of profit. Then there are certain discounts or free items you give so as to attract the customer due to which you can earn more and your inventory also get cleared quickly. In this way you can increase your customer and also the profit that you generate will shoot up.

Place

Develop the habit of reviewing and reflecting upon the exact location where the customer meets the salesperson. Sometimes a change in place can lead to a rapid increase in sales. You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Some sell at trade shows or in retail establishments. Some sell in joint ventures with other similar products or services. Some companies use
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manufacturers' representatives or distributors. Many companies use a combination of one or more of these methods. For selecting the best method you need to see where there are more customer and set a place near to them so that you may able to increase your customer and also the sales and profit for providing these type of services.

Promotion Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. In todays world the companies whether large or small does the promotion work and also keeps on changing the ways of promotion and try to experiments with new things as the environment is dynamic certain thing which are working good right now may not work good in future due to certain reasons that you will know but sometime there is no reason but has not clicked in the minds of customers. So to increase your sales you have to try or say adapt to new advertisement or ways of promotion.

1. TARGET CUSTOMER

Every organization prepares certain type of things. Which he will sell it to the customer but there are certain customer who like the product and willing to by that product regularly. Such type of customer are called the target customer. Through this you can know whether the brand has been approved by the customer or not from this way you can decide who are your target customer. Sometime you can also decide it by seeing that where your brand is loved in which region of Ahmedabad and their you will find your customer or target customer.
16

Importance of having target customer are: It is essential to become familiar with your target market, their habits, behaviors, likes, and dislikes. Markets differ in size, assortment, geographic scale, locality, types of communities, and in the different types of merchandise sold and because of the many variations included in a market it is essential, since you cannot accommodate everyones preferences, to know exactly who you are marketing to and the specific fondness of that market. To better become acquainted with the ins and outs of your designated target market legend a market analysis must be completed. A market analysis is a documented examination of a market that is used to enlighten a businesss preparation activities surrounding decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities.

1. PLACE :DISTRIBUTION NETWORK

Place, more commonly called distribution , includes the organizations, locations, and processes that support the creation and fulfillment of customer demand, and provide any required post-purchase service. Effective distribution provides customers with convenience in the form of availability, access, and support . Distribution decisions have both strategic and logistical dimensions:

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Strategic distribution is a competitive advantage that accrues generally from the configuration of a distribution network and, more specifically, from the selection of partners who intermediate between the company and the customer by performing necessary fulfillment and service activities.

Logistical distribution , which is geared to efficiently supporting the strategic objectives, refers to the storage and movement of goods, information, and money between the manufacturer and the final customer. Logistics is sometimes inappropriately viewed as an exclusive operations function. In reality, marketing often has a major role in the day-to-day logistics process with responsibilities ranging from sales forecasting and demand management to inventory planning and the allocation of short supplies.

18

Fig 1.3 GENERAL FLOW OF DISTRIBUTION

2. PRICES

Market value, or agreed exchange value, that will purchase a definite quantity, weight, or other measure of a good or service. As the consideration given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved. In commerce, it boils down to what (1) a buyer is willing to pay (2) a seller is willing to accept, and (3) the competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the business variables over which a firm can exercise some degree of control. It is a criminal offense to manipulate prices in collusion with other suppliers, and to give a misleading indication of price such as charging for items that are reasonably expected to be included in the advertised, list, or quoted price. Called also sale price and selling price10().
10 www.businessdictionary.com/definition/price.html Acessed on 7-02-10

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Different type of Pricing are :i. Competition-based pricing ii. Cost-plus pricing iii. Creaming or skimming iv. Limit pricing v. Loss leader vi. Market-oriented pricing vii.Penetration pricing viii.Price discrimination ix. Premium pricing x. Predatory pricing xi. Contribution margin-based pricing xii.Psychological pricing xiii.Dynamic pricing xiv.Price leadership xv.Target pricing xvi.Absorption pricing xvii.Marginal-cost pricing11()

1.

PROMOTION AND ADVERTISMENT CAMPAIGN

Promotion is communicating with the public in an attempt to influence them toward buying your products and/or services. Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. Different types of media can be used to deliver these messages, including traditional media such as newspapers, magazines, television, radio, outdoor or direct mail. Advertising may be placed by an advertising agency on behalf of a company or other organization.

11 www.wikipedia.com Accessed on 3-03-10

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Importnace of Promotion i.it helps to increase sales in a competitive market and thus, increases profits; ii. it helps to introduce new products in the market by drawing the attention ofpotential customers; iii. when a new product is introduced or there is a change of fashion or taste ofconsumers, existing stocks can be quickly disposed off; iv. it stabilizes sales volume by keeping its customers with them. In the age of competition it isquite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.

2. COMPETITORS

Any person or entity which is a rival against another. In business, a company in the same industry or a similar industry which offers a similar product or service. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share. Competition also requires companies to become more efficient in order to reduce costs. We can know our competitor by a competiton analysis:Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context through which to identify opportunities and threats.12()

12 http://en.wikipedia.org/wiki/Competitor_analysis. Acessed on 11-03-10

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3. EXPORTS

These are nothing but, which are the different product that the company is producing and sending to different countries outside India. In this way they can earn lots of money or we can say that business will have lots of foreign money with them. It generally mean that when you send product of your company outside India.

FINANCE

22

DEFINATION OF FINANACE It is a very important part for the business because of this the company or industries cannot operate very well. For performing our day to day work we require money. Even to perform any business activity we require money. Without money the business cannot run.

1) SOURCES OF FINANCE

A company would choose from among various sources of finance depending on the amount of capital required and the term for which it is needed. There are two ways they can take money They can issue share or IPO They can sell their assets They can take loan or take money on credit

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In the first we can also call it as ownership capital. In this you give your company shares to the people who in return give you money, and you give them the shares these are of two types : Ordinary shares: These are also known as equity shares and give the owner the right to share the companys profits and vote at the firms general meetings. Preference shares: The owners of these shares may be entitled to a fixed dividend, but usually do not have the right to vote.

In the second step we have to just sell our assets and at high price. So that you can earn enough profit or enough money from that sale.

In the third step, we can also call it as non-ownership capital. Nonownership capital includes funds raised from lenders, such as banks and creditors. Companies typically borrow a fixed amount from a bank, at a predetermined interest rate and with a fixed repayment schedule. Certain bank accounts offer overdraft facilities. This is used by companies to meet their short-term fund requirements, as they usually come at a very high interest rate.

Sources of Finance: Duration Depending on the date of maturity, sources of finance can be clubbed into the following: Long-term sources of finance: Long-term financing can be raised from the following sources: Share capital or equity share Preference shares Debentures/Bonds of different types Loans from financial institutions

24

Medium-term sources of finance: Medium-term financing can be raised from the following sources: Debentures/bonds Public deposits/fixed deposits for duration of three years Commercial banks Lease financing / hire purchase financing raised from

Short term sources of finance: Short-term finances can be the following sources : Trade credit Commercial banks Fixed deposits for a period of 1 year or less Advances received from customers Various short-term provisions

1) CAPITAL STRUCTURE

A mix of a company's long-term debt, specific short-term debt, common equity and preferred equity. The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered to be part of the capital structure. We can also say it in more different ways A company's proportion of short and long-term debt is considered when analyzing capital structure. When people refer to capital structure they are most likely referring to a firm's debt-to-equity ratio, which provides insight

25

into how risky a company is. Usually a company more heavily financed by debt poses greater risk, as this firm is relatively highly levered13(). COMPONENTS OF CAPITAL STRUCTURE Various type of debts Preference and ordinary shares Retained earnings

i.e. liability and equity compose the capital structure.

FACTORS AFFECTING CAPITAL STRUCTURE: The three effects of leverage: expected ROE tends to increase, the variability of the ROE increases, and the risk of financial distress increases. The major determinants of the firms capital structure decision are its impact on profits, risk and cash flows. Impacts can be assessed by profit planning charts, financial break-even analysis and use of standard ratios Debt creates value because interest on debt is tax-deductible The tax incentive to use debt is offset by the resulting financial distress and bankruptcy costs In a dynamic world, firms depart from the static trade-off optimal debt ratio over time, then refinance to bring it back in line with the target debt ratio.

13 www.investopedia.com Accessed on 07-02-10

26

Actual capital structures are constantly advantage of market conditions.14

changing

as

firms

take

1. BASIC RATIOS These are the ratios which are useful in calculating ratios which will help in computing the performance of the company. Financial ratios can be classified into : Liquidity ratios Financial leverage ratios Profitability ratios Equity valuation ratio

Personnel
14 foba.lakeheadu.ca/.../Chapter%2021%20-%20Capital%20Structure%20Decisions.ppt. accesed on 11-03-10

27

1. STRENGTH OF PERSONNEL DEVELOPMENT It plays a very important part of the organization as the industries has understand that to increase your production you need to make your employee happy. Also came to know that their most important assets are their employees. To make them happy you need to understand their goals, needs. Try to make such organizational goals which in the end matches the needs of the employee which will motivate them to do work. These are some of the other strengths: Also helps the organization to low their employee turnover. Will help them to retain more of employees. To contribute to the employee development.

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On the other hand, challenges do not cease for the HRM. Modern organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many companies have not understood the importance of the human capital in successful operations.

1. RECRUITMENT POLICY

In todays competitive world we need to have a good recruitment policy. As it is important to have best people at the best place or we can say that these people are very talented people. It will also help the organization to recruit the people at the time when these people are really required. Your objective of recruitment must be very clear in the mind of the organization and select the best qualified people. A recruitment policy of an organisation should be such that:

It should focus on recruiting the best potential people. To ensure that every applicant and employee is treated equally with dignity and respect. Unbiased policy. To aid and encourage employees in realizing their full potential. Transparent, task oriented and merit based selection. Weight age during selection given to factors that suit organization needs. Optimization of manpower at the time of selection process. Defining the competent authority to approve each selection. Abides by relevant public policy and legislation on hiring and employment relationship. Integrates employee needs with the organisational needs.

FACTORS AFFECTING RECRUITMENT POLICY

29

Organizational objectives Personnel policies of the organization and its competitors. Government policies on reservations. Preferred sources of recruitment. Need of the organization. Recruitment costs and financial implications.

1. TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT Traditional Approach Most of the organizations before never used to believe in training. They were holding the traditional view that managers are born and not made. There were also some views that training is a very costly affair and not worth.

The modern approach of training and development is that Indian Organizations have realized the importance of corporate training. Training is now considered as more of retention tool than a cost. The training system in Indian Industry has been changed to create a smarter workforce and yield the best results.

2. REWARD SYSTEM :-

30

Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company. While previously considered the domain of large companies, small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee performance.

These can be of two types :MONETARY:- These are rewards in which you get money as an reward of your best work. There can be money or any other incentive but in form of money. NON-MONITERARY:- These are rewards which are not monetary but can be a incentive in the form of house or any other form of non-monetary incentive.

SOCIAL RESPONSIBILITY AND ENVIRONMENTAL

31

PROTECTION MEASURES

Social responsibility is an ethical or ideological theory that an entity whether it is a government, corporation, organization or individual has a responsibility to society at large. This responsibility can be "negative", meaning there is exemption from blame or liability, or it can be "positive," meaning there is a responsibility to act beneficently (proactive stance)15.

ENVIRONMENTAL PROTECTION MEASURES:-

As the global warming is increasing regularly and as the atmosphere is degrading so there is need to have some protection measures. So that we can make a healthy environment for our future generation and also saving us. So there are certain measures which are taken by the government like pollution control act in which they have charge according to the pollution which they create. There are certain things that a industry can do like they
15 www.busunessdictionary.com

32

could clean the waste water which they sent directly into the water reservoir which will save marine life.

AWARDS AND ACHIEVEMENTS

33

AWARDS AND ACHIEVEMENT Every company has some good things that are very different from the other industries for which they are been nominate and get some award. Similarly there are achievements for the organization like for the quality of goods you make you may be given ISO199 which can be stand for the achievement for the industries.

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35

PART(B)

INDEX Contents
INTRODUCTION OF THE INDUSTRIES........................................................................40 GENERAL..................................................................................................................46 (A)ORGANISATIONL DESIGN.....................................................................................47 (B)PRODUCTION.......................................................................................................53 (C) MARKETING.........................................................................................................73 36

(D)FINANCE..............................................................................................................79 (E)PERSONNEL..........................................................................................................89 (F)SOCIAL RESPONSIBILITY AND ENVIRONMENT PROTECTION MEASURE.................93 (G)AWARDS..............................................................................................................95 AND ACHIEVEMENT..................................................................................................95 Bibliography...........................................................................................................100 SOURCES OF INFORMATIONS.................................................................................101 SOURCES OF INFORMATIONS

CONTENT PAGE
SR.NO 1 NAME OF THE TOPIC INTRODUCTION TO THE INDUSTRIES i. ii. iii. iv. 2 Brief overview of the industries History of the company Introduction to the founding members Objective of the company

GENERAL a ORGANISATIONAL DESIGN I. II.

III.

top management Hierarchy Organisational Structure and charts

37

IV. i. ii. iii. iv. I. II. III. IV. V. VI. VII. d FINANCE
i.

Departmentalization and its basis Plant Location Product Portfolio Plant Operation Quality Control 4Ps of Marketing Target Customer Place: Distribution network Price Promotion and Advertising Campaign Competitors Exports

b PRODUCTION

c MARKETINGS

Sources of Finanace Capital Structure Basic Ratios

ii. iii.

e PERSONNEL I. II. III. IV. Strength of the Personnel Development Recruitment Policy Training and Development Reward System

f SOCIAL RESPONSIBILITY AND ENVIRONMENT MEASURE g ACHIEVEMENT AND REWARDS h CONCLUSION i. Objective of the Industrial Visit

38

ii.

Student perception about the Company

BIBLIOGRAPHY SOURCES OF INFORMATION

39

INTRODUCTION OF THE INDUSTRIES

(A) BRIEF OVERVIEW OF THE INDUSTRY :-

40

PLASTIC INDUSTRY16(Broking, 2008) Plastic as a product has come up as a strong substitute for commodities like cement, steel & other metals. This has resulted in the possibility of building structures & products which are not only cheaper but are also built in lesser time compared to those build by conventional method. Demand for the company's products is poised to increase with the ongoing capex in infrastructure-build up happening in India currently. This includes capex on power transmission and distribution/ utilities (electrical accessories), telecommunication infrastructure (BT shelters), small cars/ components manufacturing (auto accessories), oil drilling (pre-fabricated structures); as well as government and corporate spend on education/ sanitation/ healthcare/ housing etc.

(B)

HISTORY OF THE COMPANY17(Broking, 2008):-

1931-74

1931: Incorporated as The Bharat Vijay Mills in June Established composite mill in Kalol, Gujarat

1975-90 Commenced plastic molded polyethylene liquid storage tanks manufacturing Introduced new plastic products like doors, windows, frames and pallets Introduced quality corduroy fabric in India

1991-2000
16 Company, Angel Research 17 Company, Angel Research

41

1995: Name changed to Sintex Industries Commenced manufacture of SMC molded products, resin transfer molded products and injection molded products Modernisation and expansion of its Textile unit Commenced structured yarn dyed business

products,

pultruded

2000 - Present

Alliance with European design houses and a UK based textile marketing company Commenced production of pre-fabricated structures for classrooms, booths, kiosks and office rooms Entered Housing sector with monolithic construction Acquisition of 74% stake in Zeppelin Mobile Systems First international acquisition - acquired 81% stake in Wasaukee Composites Inc, USA. Acquired 100% stake in Nief Plastic SA, a French company Acquired automotive business division of Bright Brothers Wausaukee acquired 100% stake of its competitor, Nero Plastic Inc., USA.

(A) INTRODUCTION

TO THE FOUNDING MEMBERS18() :-

Dinesh Patel Chairman B.Sc From Bombay University More than 5 Decades of experience

18 Annual Report 2008-09 Accessed on 02-03-10

42

Arun P.Patel Vice-Chairman B.Sc From Bombay University More than 5 Decades of experience

Rahul A Patel Managing Director Bachelors degree in Communications. MBA from USA. More than 24 years experience in textile and plastic Amit D Patel Managing Director Bachelors degree in commerce MT from USA 18 years of experience in textile, chemical and plastic S B Dangayach Managing Director B.Sc (Hons). P.G.D.B.A from IIM Ahmedabad 3 decades of experience in plastics L.M. Rathod Group CFO & CS Graduate in commerce and law, MBA and FCS 2 decades of experience in corporate finance, company law and taxation Sunil Kanojia Group President Graduate in Engineering and MBA from IIM-A 23 years of domestic and international experience, across industries Sintex Group companies are managed by independent professionals David Lisle President CEO Wausaukee Composites Inc., USA. BS and MS degree in Geology and Geophysics respectively and MBA. 18 years of wide and entrepreneurial management experience across industries
43

 Executive committee member, American composites manufacturers Association

Gilles Nief President CEO Nief Plastic SAS, France. Graduate from IAE University, Lyon Managed family business since 1973 President of Regional French Plastic industry Indru G Advani President CEO Bright AutoPlast.Pvt.Ltd, India. Mechanical Engineer and Management Graduate Managing Bright Auto Plastic business since 1970 Sandeep Harsh CEO Zeppelin Mobile System, India. Masters degree in commerce and MBA. Two decadexs of wide experience across construction, building material and telecom industry Neelesh Jain CEO Zeppelin Mobile System India, Digvijay division Bachelor of Engineering in Electronics

44

(B)

OBJECTIVE OF THE COMPANY19()

Your Company firmly believes that good Corporate Governance practices will allow your Company to sustain its competitive strength and take a road to high performance achievements. Sintex Industries Limited constantly strives for overall development of the Company in line with its objective and thereby ensuring the compliance with its corporate governance policies which it has adopted over a number of years. The management and employees of the Company are bound by the code of conduct and business ethics that leads Sintex to an aspiring future. Your Company has always emphasized on high integrity, moral business values and strong business principles. Through this report Sintex grabs an opportunity to allow its shareholder's to have an understanding about the modus operandi of the Company.

MOOTO OF THE COMPANY IS Innovations for a better tomorrow20 () PHILOSOPHY:The philosophy of the Company is to make product which are innovative and also which are not in demand or their demand is less and try to promote them. That why they Call them the Active Thinkers who always think before doing any work and also are the innovative thinker.

19 Annual Report 2008-09 Accessed on 02-03-10 20 http://sintex-plastics.com/about%20us.htm Accessed on 02-03-10

45

GENERAL

46

(A)ORGANISATIO NL DESIGN

47

(I)

TOP MANAGEMENT21
Chairman Vice Chairman Managing Director Managing Director Managing Director C.F.O. & Company Secretary Group President (Corporate) Senior President SBU-I (Plastic Div.) President SBU-II (Plastic Div.) President Fin. & Acc. (Plastic Div.) Vice President Marketing (Plastic Div. Vice President Marketing (Plastic Div. Vice President Marketing (Plastic Div.

Mr. Dinesh B. Patel Mr. Arun P. Patel Mr. Rahul A. Patel Mr. Amit D. Patel Mr. S.B. Dangayach Mr. L.M. Rathod Group Mr. Sunilkumar Kanojia Mr. Sanjib Roy Mr. S. Venkatachalam Mr. B.R. Jayswal Mr. Rajan Gulabani Mr. S.M. Anerao Mr. A.C. Saxena

Mr. Balakumar Rajgopalan Vice President Housing (Plastic Div.) Mr. Shashidhar B.C Mr. Ashoke Maitra Mr. R.A. Sharma Mr. Manven Dubey Mr. Siddhartha Jha Mr. Rajiv Naidu President Marketing. (Textile Div.) President Opr. (Textile Div.) President Proc. (Textile Div.) Vice President MIS Vice President Tech. (Textile Div.) Head - IR & PR

21 Annual Report

48

(II) HIERARCHY
They follow the general hierarchy in their organisation. That is :-

Mr. DINESH B. PATEL CHAIRMAN

Mr. ARUN B.PATEL VICE-CHAIRMAN

Mr. Rahul A. Patel MANAGING DIRECTOR

Mr. Amit D. Patel MANAGING DIRECTOR

Mr. S.B. Dangayach MANAGING DIRECTOR

Fig the flow of their General Hiererchy22(, 2010)

IMPORTNCE OF HAVING SUCH HIERARCHY :-

1. It serve as a channel of communication. It makes clear to every officer

as to whom he is to deal with. 2. It enable us to fix responsibility at each level and at each post in the organization. 3. The scale of through proper channel created by the, principal of hierarchy ensures strict adherence to procedures and avoid shortcutting.
22 Mr. Sanjib Roy, President SUB-II, class room discussion

49

4. It lessens, the work at the higher level and decentralizes the decision

making.

BUT THERE ARE CERTAIN THINGS ON WHICH THEY CAN IMPROVE UPON :-

1. In this direction flows from top to bottom. So, the lower level manager

has to accept the decision of top level management. 2. It is a very rigid structure and it will not properly work in the dynamic situations. 3. Delay in disposal of work.

(I)

ORGANISATIONAL STRUCTURE AND CHARTS :Mr. S.B. Dangayach MANAGING DIRECTOR

Mr. Sanjib Roy SENIOR PRESIDENT (SBU-I)

Mr. Venkatachalam President (SBU-II)

Fig the flow of their Organizational Structure23(, 2010)

They have made their own organisational structure which is based on SBU that is Strategic Business Units, generally every business unit would have specific criteria. SBU for example must have
23 Mr. Sanjib Roy, President SUB-II, Live discussion

50

i. ii.
iii.

Have its own mission, different from the missions of other SBUs. Have definable group of competitors. Prepare its own integrative plan.

Advantages of having SBUs : 1. They can differentiate their products from the large product portfolio. 2. They can preserve the energies and attention of manger and staff as they both have to concentrate on that product. 3. It is a way you can promote entrepreneurship.

(I)

DEPARTMANTALIZATION AND ITS BASIS :-

It is both process and product departmentalization as the organization is divided into (i) SBU that is on process basis (ii) each SBU has given certain products like:SBU I deals in prefabs products SBUII deals in electrical and industrial products

Advantage of having together are:i. As they can specialize in their own product and also will be able to give the customer what they like. ii. As they will be dealing with certain products the work load will reduce. iii. As both can easily do their customized contract very easily. But there are certain things were the industries can improve upon: i. Instead of having both they can have it separate so that the work load of manager is less.

51

ii.

If they do this they will require labour and due to which they can employ more people which will be good for the economy.

52

(B)PRODUCTION

I.

PLANT LOCATION

Company Name:

SINTEX INDUSTRIES LTD

53

Business Type: Product/Service (We Sell): Brands:

Manufacturer

Water Storage Tanks, Panel Tanks etc. Sintex 501 - 1000 People

Number of Employees:

Factory Size (Sq.meters): Above 100,000 square meters Factory Location: Nr. Seven Garnala, Kalol (NG) 382721 501 - 1000 People Plastic Division

Number of Employees: BUSINESS UNIT:

Advantage of the location are:-

54

1) As the Plant is near to the Railway Station. It becomes easy for the

company for transportation of the raw material and the sending of Finished goods at cheaper rate of transport.
2) As the Factory is located at the outskirt the labour there will be easily

available and also at cheap rate.

I.

PRODUCT PORTFOLIO

The industries deal in lots of products but we have taken only the plastic section products as we have to do specialization in those products only.

PRODUCTS

BUILDING

INTERIORS INDUSTRIAL ELECTRICAL COUNSUMER

CUSTOM MOULDING

A) BUILDINGS AND CONSTRUCTION

Sintex Water Tanks

55

Advantages:

Rust proof Light weight and durable Hygienic Maintenance-free Tested and approved by leading laboratories, industries and institutions Available in various capacities from 200 litres to 25,000 litres or even more Reno Water Tanks

II

Unique Features:

One-piece moulded without seams or joints and hence leak-proof Hygienic Maintenance-free Light weight and hence easy to carry and install

Removable lids with clamping device Computerised ribbed design for better strength Versatile Aesthetically appealing Optimum design for economy

III

Underground Water storage Tanks (SUMPS)

56

Unique Features:

One piece moulded without any joints, seams or welds Impermeable to roots of trees Rust proof and leak proof Hygienic and suitable for potable water Computerized design for excellent strength Non-porous and does not allow contamination of water kept in the tank Lightweight and easy to transport Easy to install Durable and economical Septic Tanks24()

IV

Unique Features: Eco-friendly Rust proof and Leak proof Durable Light weight and easy to transport Easy to install

24 http://sintex-plastics.com/building_construction.htm Accessed on-30-03-10

57

Economical than conventional septic system Excellent performance on reduction of BOD FRP Underground Water Stroge Tanks

Unique Features:

Compliance to FDA grades Impermeable to roots of trees Rust proof and leak proof Hygienic and suitable for potable water Structurally strong Computerized design for excellent strength Non-porous and does not allow contamination of water kept in the tank Lightweight and easy to install / transport Durable and Cost effective PVC Pipes

VI

Unique Features: Non Toxic Smooth Inside Bore Low Installation Cost Chemical Resistance Non Bio Degradable Flexible
58

VII

FMD Doors

Unique Features: Reinforced with excellent polymeric reinforcement to avoid weather effects Suitable for toilet, bathroom and kitchen door Options of single & multi panel door Available in all standard shades of SINTEX

VIII

Royal Doors

Unique Features: IX Extremely Elegant Beauty with Durability Perfectly designed for stability & versatility 100% Water Proof & Weather Proof Rot Proof & Termite Proof 100% Maintenances Free Solidor Doors

59

Unique Features: Made out of 5 mm thick PVC foam sheet Reinforced with suitable MS tube Suitable for toilet and bathroom door

A) INTERIORS
i.

Sintex Plastic Section

Unique Features:

No painting or varnishing Light-in-weight Consistency in quality Easy to install Time and labour saving High durability Wide colour range High aesthetic appeal Reusable Available with Polyurethane Foam or glasswool for improved thermal and sound insulation properties in selected sizes i. Reno Plastic Section
60

Unique Features:

No painting or varnishing Light-in-weight Consistency in quality Easy to install Time and labour saving High durability Wide colour range High aesthetic appeal Reusable Available with Polyurethane Foam or glasswool for improved thermal and sound insulation properties in selected sizes

A) INDUSTRIAL

I Pallets Unique Features: Cost effective Compatible with all existing lifting systems Easy to clean & wash Excellent resistance to most chemicals Maintenance-free Rot proof Extensive testing to ensures quality standards Secure
61

Robust design to render long service Meets all GMP requirements Hygienic Water proof High impact strength and rigidity II Chemical / Acid Storage Tanks (Cylindrical Vertical)

Unique Features: Best raw material base Seamless construction Reasonable cost Excellent after-sales-service Latest manufacturing technique Immunity to maintenance Long life III Injection Moulded Pallets

Unique Features: Cost effective Compatible with all existing lifting systems Easy to clean & wash Excellent resistance to most chemicals Maintenance-free Rot proof Extensive testing to ensures quality standards Secure
62

Robust design to render long service Meets all GMP requirements Hygienic Water proof High impact strength and rigidity

A)ELECTRICAL
SMC Meter Boxes

Unique Features:

Single piece moulded without any joints Concealed metal hinges Mounting screws fitted from inside Metal hardware for wire seal Adequate space for meter and cut-outs Light weight, yet strong Wide range for different applications Excellent weatherability Safe for consumers Prices matching with conventional meter boxes SMC Distribution Boxes

Unique Features: High heat distortion temperature (2000C) as per IS: 10192) Fire retardant-Class FV as per IS:11731 Part II or V as per UL 94 Non-fusing
63

Shock-proof & rust-proof Rot-proof and termite resistant 100% weatherable-ideal for use both indoors and outdoors Elegant appearance.

SMC Danger Notice Plates

Unique Features: Excellent finish and dimensional consistency Excellent outdoor weather ability Rust proof Withstands solar radiation and heavy rains

Maintenance free: Base material SMC does not corrode. Hence, painting remains in place for longer duration Transparent coating over the printed matter is also weather resistant No fear of vandalism Pilfer proof: Zero resale value in scrap market

A) COUNSUMER Waste Bins & Containers

Unique Features:

Moulded from special UV stabilized grades of polyethylene Rust-free and maintenance-free

64

Colourful and elegant Light weight and easy to handle Hygienic and easy to clean Strong and durable Can be provided with fittings for locking bins to posts or walls or other permanent members of a building. Multi Bins

Unique Features:

Made from virgin HMHDPE material High impact strength Nestable With twisting lock lid Hygienic and easy to clean Light weight and easy to handle Colourful and elegant Washable Specially designed for more versatility Solar Water Heating System

Unique Features: Safe & Hygienic

65

Low maintenance and operating cost Easy to install With improved PUF design Plastic based materials used hence no problems of corrosion/rust Top cover of glass not required Ideal for bungalows, flats, hospitals, hotels, hostels, canteens, industries, govt. Houses. Floating Type Bio Gas Plants

Unique Features:

Moulded in One Piece Ready to use, install, dismantle & maintain Supplied in knock down condition Easy to assemble at site by the way of bolts No problems of leakage Can be used over ground or under ground No hassle for cleaning Easy to relocate, if required Milk Cans

Unique Features:

Manufactured from FDA grade of polyethylene materials hence absolutely non-toxic and odour free Seamless & smooth inside surface for prevention of bacterial contamination

66

Inherent non-stick property prevents from accumulation of fats in the inner surface Economical alternative to the conventional Milk Cans Easy to clean.

Road Dividers

Unique Features:

One piece moulded UV Stabilized Can be made available in different colors & shapes as per customers design Self supporting Ideal supplement to conventional dividers as maintenance free, corrosion free & all weather proof Planters

Unique Features: No bleeding, flaking or chipping Does not spoil carpet or floor as available with collecting trays Available with holes for water drainage 100% simulation of terra cotta finish A special formulation that does not stunt growth of the plants Enhances the get-up of the inner decor Light weight and hence can be shifted easily Remains elegant for years

67

I.

PLANT OPERATION

These are the 12 main process that are been performed within a single plant. And it is Asias most integrated plastic processing industry. *Rotational Moulding *Extrusion *Compression Moulding *Blow Moulding *Injection Moulding *Pultrusion *Reaction Injection Moulding *Resin Transfer Moulding *Twin Sheet Thermoforming *Single Sheet Thermoforming *Light RTM And Vacuum Bag Infusion Molding *Liquid Composite Molding The whole processes is not discussed with us but only on two process we have some primary dat. They are only two processes on which we are doing specialization

68

PROCESS

ROTO MOULDING

EXTRUSION

PRE MOULDING DEPT

ROCK AND ROLL

EXTRUDER

CALIBRATION

HAWLON PART CUTTER UNIT

TILLING

Roto moulding(, 2010) Raw material is LLDPE- linear low density Poly Ethylene PRE MOULDING DEPT It is that department in which the LLDPE is Moulded before sending it to the Rock and Roll Machine. There is one rock and roll machine in which this LLDPE is heated with the help of natural gas. In this Machine the raw material is heated for 9min.

69

And then there is cooling station just opposite of rock and roll machine where it is been cooled. There are 4 tanks in which heating is done and there are 2 shifts in this process 7 to 4 and 4 to 11.

Extrusion Process(, 2010) Parts involve in it are:1. Extruder 2. Calibrations part 3. Haulon part 4. Cutter unit 5. Tilling or collection unit Raw material- PVC (polyvaride carbonate)

This is use as a material because the other material like cement and iron can get effected by the environment like iron get rusted. So as this is of plastic its durability is more and it does not get rusted also.

1. Extruder In this part the profile is being heated and various heat stabilizers are being added to the profile to heat it well then the profile is push ahead in that machine the whole profile is being shaped properly then again pushed ahead for next process.

2. Calibration Part:-

70

In this the profile is being cooled and the shape of this profile is maintained and the profile is been cooled with vacuum chillers being installed at the machine.

3. Haulon part.

The profile is been kept and it is been further cooled and dyes are applied on the profile.

4. Cutter unit In this part now the profile is been cut into different length which is been given by the customer and accordingly that shaped the profile is been cutted.

5. Collection part This the part in which the ultimate result is been shown. The output is 65kg/h to 70kg/h. For single door shutter 150kg/h The extrusion process is a continues process.

The next process is the ahead process after the collection part that is Lamination department Raw material is the profile that we collected from the extrusion process In this we can find profile in glossy finish or in matt finish.
71

There are basically 3 parts i. ii. iii. Rolling- in this rollers are been moved on the profile in which certain chemical solvent are used. In the second part the profile is been given either the glossy or matt finished are been done according to the customer demand. UV chamber- this is an ultra violet chamber where the profile is been dried completely.

We can find the glossy finish which can find it with D and M for matt finish.

I.

QUALITY CONROL.

There is in-house quality departments and there are 3rd party which does the quality checks if they are very technical products. They also have certificate like ISO 9000 which itself says that the product have that quality with that product. The other are ISO 9000/9001/9004/19011: 2000

72

(C) MARKETING

73

I.
1 Price

4Ps OF MARKETING :

They have their own pricing policy. They have set their own policy. They provide discounts only when the order is very bulky. They are facing lots of problem in the regional area to fix the prices, as they are facing tough competition from these regional players.

2 Product :They have lots of products in their bank which help them to cover the risk of the other products and also they are a national player and there is no one who can touch them as they are pioneer in the plastic tanks of all size. They have their branch and also which help them to send their product in different which also help in reducing their risk and make them ahead of the other player. 3 Place :They do not have special place they send to their near branch and the customer can go and take from that near branch where they have send the product. They have a station just near to place where they can transfer the product from one place to another very easily. 4 Promotion :They not do so much of advertising as they are pioneer in some of the product but they have started their new product that is Reno for which they have done its promotion activity but not on the large scale. They have

74

only have hoarding which is more in the Kalol where they have the company situated.

II TARGET CUSTOMER :Our enviable position in the market, client centric approach, quality products and innovation driven ideas have enabled us to garner a huge client base in European, American, African, and Asian markets including countries like France, Germany and USA. We are proud to have Siemens, Eicher, Reliance Energy, Reliance Infocomm, Larsen & Toubro, UNICEF, WHO and CARE as our major clients. Our commitment towards quality, client centric approach and innovation driven ideas have enabled us to garner a huge client base in European, American, African, and Asian markets including countries like France, Germany and USA. Our major clients in INDIA are:

ABB Siemens Eicher Reliance Energy Reliance Infocomm Larsen & Toubro MK Electric UNICEF WHO CARE Torrent Pharma Cipla Ranbaxy GE Motors

III PLACE : DISTRIBUTION NETWORK :-

75

HEAD OFFICE

SALES

CUSTOME R BRANCH OFFICE SALES

This is the way they generally distribute their product to the customer. They send some of the sale in head office and some they kept with them and customer can take from any one of them, in the way the customer feel convenient.

IV PRICE :They have normal pricing system that is what the market sets they follow that price they do not have any pricing strategy. They only change the price when suddenly the price of the raw material has increased so it may happen that they will charge so that the profit of the company should not get affected.

V PROMOTION AND ADVERTISING CAMPAIGN :They not do so much of advertising on TV as they have given only one AD after which they have not given but they do give some AD in paper but not on regular basis occasionally and also the use less of radio and other medium of the promotion to increase their sale as they are having little monopoly in some of the product which so do not required but now they do will require the promotion so to create awareness for the usage of more of green-product so that we will be able to see a bright future ahead. So, to

76

see a good sale in their green-products they will have to do some promotion work, so as to increase the sales.

VI COMPETITORS :They have many competitors which do affect the work of industries and they also sometime have to bear loss because of the competitors. Though they are a national player. Their major part of income come from the southern and western region. And in north Delhi is a big market. Some of their competitors are: SupremInd VIP Inds Finolex Inds INEOS ABS SRF Polymers Kalpena Inds Wim Plast TPL Plastech EPC Inds Xpro India-PMS Bright Brothers Mold-tek Packaging

VII EXPORTS Textile exports that were growing moderately till 2004-05, registered a sharp growth of 21.7 per cent from USD 14,000 million in 2004-05 to USD 17,000 million in 2005-06 (following the scrapping of quotas) and USD 19,620 million in 2006-07. Currently, India has a 3.5-4% share in global textile exports and 3% in clothing exports. While Europe continues to be
77

India's largest export market with a 22% share in textiles and 43% in apparels, the US remains the single largest buyer of Indian textiles and apparels with 10% and 32.6% shares. The other countries on India's export map include the UAE, Saudi Arabia, Canada, Bangladesh, China, Turkey and Japan. Readymade garments constituted the largest export segment accounting for 45% of textile exports and 8.2% of India's total exports. This segment benefited significantly following the termination of the multi-fibre arrangement in January 2005. The export of readymade garments from India is expected to touch USD 14,500 million by 2009-10 with a cumulative annual growth of 18 to 20%, according to the Apparel Export Promotion Council.

78

(D)FINANCE

79

I.

SOURCES OF FINANCE Rs. In Crores

SOURCES OF FUNDS

2009

2008

Share Capital

27.10

27.10

Convertible Share Warrants

47.80

Reserve and Surplus

1,667.82

1464.28

Secured Loan

1,052.65

938.16

Unsecured Loan

1,243.77

988.10

FIG Sources of Finance25

25 Annual Report Accessed On 02-03-10

80

II.

CAPITAL STRUCTURE :-

Non-convertible debentures
On February 18, 2009, the Company issued 11.50% secured redeemable non-convertible debentures aggregating to Rs. 250 crores to LIC of India on a private placement basis for financing capital expenditure on existing operations, general corporate purpose and to meet long term working capital purpose as well as other expenditures as permitted by the investors. The debentures would be redeemable in three annual equal installments at the end of the seventh, eighth and ninth year from the date of allotment.

Preferential warrants allotment

During the last year, the Company allotted 1,32,00,000 warrants at a price of Rs. 454.74 per warrant (10% of the consideration received upfront) to the Promoters Group on preferential allotment basis and the warrants are optionally convertible into equity shares of Rs. 2 each within 18 months of allotment date. During the year under review, the promoter group to whom the warrants were allotted informed the Company of not exercising the balance warrants of 1,05,12,000 and the Company, thereby, forfeits the 10% upfront amount of Rs. 47.80 crores as per the SEBI Guidelines and credited the amount to capital reserve.

81

Rs. In Crores

SOURCES OF FUNDS

2009

2008

Share Capital

27.10

27.10

Convertible Share Warrants

47.80

Reserve and Surplus

1,667.82

1464.28

Secured loan

1052.65

938.16

Unsecured Loan

1243.77

988.10

Fig- capital structure26

26 Annual Report Accessed on 02-03-10

82

III. BASIC RATIO :-

A. LIQUIDITY RATIOi. CURREN RATIO-

Rs. In Crores

2009

2008

Current Assets 2722.58 2628.72

Current Liabilities 934.76 1004.58

CR=CURRENT ASSETS/CURRENT LIABILITIES 2007-08 = 2722.58/934.76= 2.91 2008-09 = 2628.72/1004.58= 2.62 ii. Quick ratio=LIQUID ASSETS/CURRENT LIABILITIES (Net C.A= TOTAL CURRENT ASSETS-INVENTORIES) 2007-08= 2345.48/934.76= 2.51

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2008-09= 2326.5/1004.58= 2.32

Rs. In Crores

2009

2008

Net Current Assets 2345.48 2326.5

Current Liabilities 934.76 1004.58

A. LEVERAGE RATIO I. DEBT RATIOi.

DEBT TO EQUITY RATIO = Debt/equity

Rs. In Crores
2009 2008

Debt 2,296.42 1,926.26

Equity 1,704.92 1,539.18

84

2007-08= 1926.26/1539.18= 1.25:1 2008-09= 2296.42/1704.92= 1.35:1

I.

Interest Coverage Ratio:INTEREST COVERAGE RATIO=EBIT/INTERST EBIT=PROFIT BEFOR TAX +INTEREST

Rs. In Crores

2009

2008

EBIT 491.93 366.26

Interest 81.95 64.32

2007-08= 366.26/64.32= 5.69 times 2008-09= 491.93/81.95= 6 times A. VALUATION RATIO

i.

EPS(Earning Per Share)= PAT-PREFERNCE DIVIDEND/ NO of equity share

Rs. In Crores

2009

2008

85

Pat-Preference Dividend

325.12

230.32

No of Equity Share 135495433 117872309

2007-08= 325.12/135495433= 24 2007-08=230.32/117872309= 19.54

ii.

DPS(Dividend Per Share)= TOTAL DIVIDEND PAID/NO OF SHARES 2007-08=13.65/117872309= 1.10 2008-09=15.02/135495433= 1.01

Rs. In Crores

2009

2008

Total Dividend Paid 15.02 13.65

86

No of Equity Share 135495433 117872309

A. PROFITABILITY RATIO

i.

NET PROFIT RATIO= PAT/NET SALES*100 NET SALES= SALES OF RETURN-EXCISE DUTY

Rs. In Crores

2009

2008

Profit After Tax(PAT) 325.12 230.32

Net Sales 3063.88 2274.23

87

2007-08= 230.32/2274.23*100=10.13% 2008-09= 325.12/3063.88*100=10.61%

ii.

ROCE RATIO RETURN ON CAPITAL EMPLOYED= PAT/CAPITAL *100 EMPLOYED CAPITAL EMPLOYED= (EQUITY CAPITAL+PREF CAPITAL+LONG TERM DEBT-MISCELLANEOUS EXP)

Rs. In Crores

2009

2008

Profit After Tax(PAT) 325.12 230.32

Capital Employed 4174.47 3584.55

2007-08= 230.32/3584.55*100= 6.43% 2008-09= 325.12/4174.47*100= 7.79%

88

89

(E)PERSONNEL

I.

STRENGHT OF PERSONNEL DEVELOPMENT :-

Their strength lies in our people the employees of Sintex group, in India and abroad, are the organisations greatest assets. In addition to that, we
90

cherish the companys values that are ingrained in us. Their People: Our strength lies in our people the employees of Sintex group, in India and abroad, is the organizations greatest assets. In addition to that, we cherish the companys values that are ingrained in us. Innovation Driven Ideas: The key to Sintex Groups growth is the continuous innovation. The spirit of Active Thinking drives the organization on its path. The innovative ideas are not just limited to the products but they are also implemented in the manufacturing processes, markets and management policies. Focus: The groups focus all these years has been to align its businesses with the growing sectors of economy. Be it health, education or telecom, Sintex is present in all these growing sectors, hence ensuring growth even in the hard times. Global footprint: From a Kalol based Indian company, Sintex has become a global group with its presence in 9 countries across 4 continents. Sintex group serves its clients across the globe and most of them are part of the Fortune 500 Companies list. Sintex encourages a continuous learning environment, promoting meritocracy. During the year under review, the Companys employee strength touched 3,427 people. The Company was actively engaged in imparting functional and attitudinal training to employees for maximum productivity; other initiatives comprised a regularized recruitment process as well as a fair and unbiased performance appraisal system with an inbuilt feedback system. During the year under review, the Company created a compensation structure that provided members with tangible and intangible benefits.

II.

RECRUITMENT POLICY:-

91

They goes for the placement of new people to different colleges and different job institutes and select them after they pass the different exam they give and from the overall criterias and then they will select the best employee. They do selection in this manner:RECRUITMENT

Different colleges

Different Job institutes

This way they do the recruitment and then they also take exam of all of these people and then on the overall criterias they select the best employees.

III.

TRAINING AND DEVELOPMENT :-

They do provide training to the new persons who come to join the firm and also to the labour who is going to do some technical work these are only for 2-3 months and after they comes to the site and starts working.

IV.

REWARD SYSTEM:-

They do provide reward to the in both non-monitery and monitery. According to their work and the way the person handle the responsibility and does the work and the end result would be seen and if it is fruitful for the
92

company then he would get the inventive. Which could be in money terms and may not be in money term but in terms of tangible things.

93

(F)SOCIAL RESPONSIBILITY AND ENVIRONMENT PROTECTION MEASURE

There lots of work being done in the field of social responsibility as the chairman of Sintex has itself started a training institute where they will train the people how the will use the green product efficient. And also for saving the environment they are the one who have started green products. In this
94

the company will manufacture solar cookers, solar water heater, bio-gas panel etc. These type of work if continued will surely be accepted by any person and will buy these environmental friendly product for sure and in future their need would definitely rise. They are also making houses from the PVC which will be much economical to buy and also to use them which will not only give you shelter but also want that every people should have so that there would be no people who do not have a house to live. They also have grown lots of trees within their plant and many to get fresh of air as the people work who work for the whole day and after finishing the work they will enjoy the beauty of the nature. So for every industry should try to not provide only environment of working condition place but also the surrounding areas so that the worker would also feel more good.

95

(G)AWARDS AND ACHIEVEMENT

I.

ACHIEVEMENTS27()

1975

27 http://sintex-plastics.com/about%20us.htm Accesses on 03-02-10

96

Moulded Polyethylene Industrial Containers and Tanks of sizes up to 10,000 liters

1977
Material Handling Containers for Industries and Institutions

1978 Water Tank

1985
Plastic Sections for Conversion into Partitions, False Ceilings, Wall Panellings, Cabins, Cabinets, Furniture etc.

1988
Plastic Doors, Windows and Frames

1989
Insulated Containers, Sandwich Panels, Agri Containers and Biogas Holders

1990
97

SMC and SMC Moulded Products, Pultruded Products, Resin Transfer Moulded (RTM) Products, Blow Moulded Products, Injection Moulded Products etc.

1995
Water Filters cum Purifiers

2000
Solar Water Heaters

2001
Prefabs production was started

2002
Turnkey Blow Moulding & Profile Extrusion Plants

2004
FRP Underground Storage Tanks

2005

98

ISO 9001 Certification Monolithic Concrete Construction Technology

2006
UL Listed for FRP Underground Petroleum Tanks

A. AWARDS

SINTEX now a Superbrands

The name is now a superbrands, as per the second Business Superbrands series issued by the Superbrands Council of India.
Bright AutoPlast Awarded by Maruti Suzuki

OBJECTIVE OF INDUSTRIAL VISIT

99

As we are the future managers of our country and to take our country to the top position we should have both the practical as well as theoretical knowledge. As we have studied all the theories so to give us that practical knowledge was the main objective of the industrial visit. The objective of industrial visit was to make us feel that how an industries work and how it is been managed by any person, different things that are been manufactured and how the company finance such a big plant and the different way they are worked. How and different way every goods are been distributed to the consumer, how we recruit the people and also we can say that what we have studied in theory were been implemented in the industry but in a innovative way.

MY PERCEPTION ABOUT THE COMPANY

I feel that if I was a chairman of such a big industry I would not be able to handle such a work with such a responsible way and would not have made the company to reach such a height. So we should all salute the M.D of this company Mr. S.B Dangayach. The industry has very bright future if such types of persons are given jobs. And also though the company had the bad face of recession as every company does but is now gaining the momentum back and the way they think make them different from any other industry as they are not only in textiles but are a good player in plastic segment to specially their GREEN PRODUCT idea is very good and will help the company to grow more.

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SOURCES OF INFORMATIONS
www.investropedia.com www.businessdictinary.co www.sintex.com www.sintex.in

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