A Study On DISTRIBUTION CHANNEL With Reference to

Delta paper mill, vendra

Report submitted to JNTU-K University, KAKINADA in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Submitted by:-O.VENKANNA BABU MBA (FINAL) Regd. No: 108Z1E00G6 Under the esteemed Guidance of D.RAMAKRISHNA FACULTY IN MANAGEMENT

DEPARTMENT OF MANAGEMENT STUDIES RAJIV GANDHI INSTITUTE OF MANAGEMENT & SCIENCES R.C.No.124, Thimmapuram Village KAKINADA 533 005 (Affiliated to JNTU-KAKINADA) (2010-2012)

DECLARATION

I hereby declare that this project work entitled A Study DISTRIBUTION CHANNEL Submitted by me to the JNT University, Kakinada in partial fulfillment for the award of Degree of MBA is entirely based on my own study is being submitted for the first time and it has not been submitted to any other university or institution for any degree or diploma

(Mr. O.Venkanna babu)

SRAJIV GANDHI INSTITUTE OF MANAGEMENT & SCIENCES Thimmapuram Village KAKINADA 533005

R.C.No.124,

(Affiliated JNT University Kakinada) ______________________________________________________________________________

CERTIFICATE

This is to certify that the project report titled A Study on DISTRIBUTION CHANNEL in DELTA PAPER MILL Ltd is being submitted by Mr. O.VENKANNA BABU in partial fulfillment for the award of the Degree of MBA has been carried out by her under my guidance and supervises.

(Mr. D.RAMAKRISHNA) Project Guide Dept. of MBA. RIMS, KAKINADA.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Mrs. D.RAMAKRISHNA for his valuable guidance and cooperation throughout the project work. I am also thankful to our Head of the

Department Mr. K. SANJAY KUMAR and all other faculty members who helped me directly and indirectly for the successful completion of my project work. I also express my gratitude and heartfelt thanks to my company guide GOPALA RAJU (M.D) of DELTA PAPER MILL (VENDRA). Who extended their cooperation and timely support and providing necessary data for early completion of my project work. Finally I would like to express my gratitude and thanks my parents and friends whose unremarkable encouragement had helped me throughout my educational endeavor and to do this project work.

(Mr.O.venkanna babu)

INDEX

CHAPTERS

CONTENTS

PAGE.NO

CHAPTER-I INTRODUCTION NEED FOR STUDY COMPANY DETAIL OBJECTIVES OF STUDY SOURCES OF STUDY

1-5 1 2 3 4 5 6-25

CHAPTER-II INDUSTRY PROFILE CHAPTER-III COMPANY PROFILE CHAPTER-IV

26-39

40-73

THEORETICAL FRAME WORK OF DISTRIBUTION CHANNEL CHAPTER-V DATA ANALYSIS AND INTERPRETATION OF THE PROJECT WORK CHAPTER-VI CONCLUSION FINDINGS SUGGESTIONS QUESTIONNAIRE AND BIBLOGRAPHY 91-97 74-90

CHAPTER-I
INTRODUCTION NEED FOR THE STUDY SCOPE OF THE STUDYs OBJECTIVES OF THE STUDY METHODOLOGY LIMITATIONS OF THE STUDY

Introduction
Marketing deals with identifying and meeting human and social needs. Marketing is typically seen as that task of creating, promoting and delivering goods and services to consumers and sending the feedback to the producers. So marketing is one of the most important pillars of an organization. Marketing boosts a rich array of concepts and tools. Marketing channels are one of those important concepts. Marketing channel to reach a target market, that marketer uses three kinds of marketing channels. They are communication channels, distribution channels, and service channels. That marketer use distribution channels to display sell of deliver that physical product or services to that buyer or user. The organization uses direct and indirect distribution marketing. They include distribution, whole sellers, retailers and agents. Production is made to satisfy the needs of that customer. So it must reach to that ultimate customer. The way through which goods move from producer to those customers is know a DISTRIBUTION CHANNEL. A distribution channel consist of the set of people and firms involved in the flow of title to product as it moves from producer to ultimate consumer or Industrial users. A channel of distribution always includes both the producer and the final customer for the product is its present from as well as any middlemen. When I decided to do my project work in THE DELTA PAPERMILL LIMITED company, there are is lot of topics in my mind. But the topic distribution channel is a topic, which has got lot of scope to study, because THE DELTA PAPERMILL LIMITED, is one of the most valuable company in our country. this company is focusing on reaching out to the customer at the right place at the right time. It believes in venturing into the new markets with the support of an expanded distribution network. So I have decided to take this survey of dealers is sophisticated for my project work.

NEED FOR THE STUDY

The purpose of the study is to know the role played by the manufacturer and intermediates To find out the services rendered by delta paper mill Ltd. To study about retailer and dealers and their handling of paper products and also to know the dealers perception towards paper products. The need for the study also how required margin to retailer and dealers To enquire dealers preferences.

SCOPE OF THE STUDY

The study has been undertake to aware about the role of dealers wholesalers retailers in present day market scenario to accomplish the objective i have chosen distribution channel of delta paper mill vendra zonal office and its territory. The study is concentrated on marketing channels of the company i.e dealing of dealers company channels and intermediaries. All types of transporter, outsider and dealers transportation also location into consideration. Dealer in some cases their executive opinion is taken into consideration for the study. All the dealer retailers and wholesalers opinion is also considered. The outcome of the study will not applications for any other similar of distribution channel.

OBJECTIVES OF THE STUDY

Identify the distribution channel of delta paper mill Ltd To identify the order raising schedule To discuss the various marketing activities in relations with dealers of the delta paper mill Ltd To identify the various problem related to marketing activities and provide suggestions for improvement. To identify the payment terms of delta paper mill Ltd. To identify the factors effecting in section of a channel.sss

LIMITATIONS

As the time span of the study is only eight weeks gathering the total information is taken to this limited period only. Previous year reports taken into consideration There is a chance of error in collection and compilation of the data. All the data and information collected under the instructions norms and conditions of delta paper mill Ltd. All the information and recommendation will be made on the faced back obtained from survey

METHODOLOGY
Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of information has been done by.

1. PRIMARY DATA 2. SECONDARY DATA

PRIMARY DATA:
the primary data are those which are collected and for the first time and thus happen to be original in character. This data has been collected form a structured questionnaire focused on dealers perception of delta paper mill Ltd.

SECONDARY DATA:
it is the information-collected form already published sources. The sources that has been collect are annual reports, magazine text books on marketing and paper industry.

SAMPLE SIZE:
A random sample method is used for the collection of data and survey has been done on (50) by taking 50 dealers of delta paper.

RESEARCH:
Research design is a specification of methods and procedure for enquiring the information needed to structure to solve the problem the research design focused in the present study is objections research design.

SAMPLING TYPES:

Type of sampling chosen is stratified sampling as the population is divided into different segments on the basis of certain common characteristics and then selection of items randomly from them to constitute the samples

Research tool:
Direct method of research is followed for the purpose of the study; all the retailers are approached personally and individually with a structured questionnaire .

Contact method
s.

Research analysis
Various statistical tools like percentage, average and bar charts. The information gathered is pictured into tabular forms so that the interpretation would be precise.

Period of the study

The total period of study is 42 days i.e., 19 th july, 2011 to 28th aug 2011

CHAPTER- II

INDUSTRY PROFILE

INTRODUCTION
A countrys civilization is mostly dependent upon its paper consumption, so we have to know in brief about the introduction and establishment of paper industry in the world and its entrance into India. It is also important to know about the development and progress of paper industry in our country. The word Paper derives from the Greek term for the ancient Egyptian writing material called PAPYRUS , which was formed from beaten strips of papyrus plants. The first paper sheet was created by TSAI LUNO CHIN in China in 105 A.D by using mulberry tree, rags and other waste fibers. In 751 A.D Arabs imported the knowledge of paper making from Chinese prisoners. Paper making is considered to be one of the four great inventions of Ancient china, since the first pulp paper making process was developed in china during the early second century A.D by the HAN COURT EUNUCH CAI LUN. In 1844, both Canadian inventor CHARLES FENERTY and German inventor F.G.KELLER had invented the machine and process for pulping wood for nearly 2000 years use of pulped rags and start a new year of the production of news print and eventually all paper out of pulped wood.

Definition of paper
Matted or felted sheet, usually made of cellulose fibres, formed on a wire screen from water suspension. Source materials include wood pulp, rags, and recycled paper. The fibres are separated (by processes that may be mechanical, chemical, or both) and wetted to produce paper pulp, or stock. The pulp is filtered on a woven screen to form a sheet of fibre, which is pressed and compacted to squeeze out most of the water. The remaining water is removed by evaporation, and the dry sheet is further compressed and often (depending on the intended use) coated or infused with other substances. Types of paper in common use include bond paper, book paper, bristol (or bristol board), groundwood and newsprint, kraft paper, paperboard, and sanitary paper (for towels, napkins, etc.). See also calendering; Fourdrinier machine; kraft process.

PAPER INDUSTRY IN INDIA: The art of paper making reached India through Arabs who initially learnt from the Chinese prisoners. As the needed for writing surface increased in India, attention was paid to master the techniques of using metals such as led, copper and bronze for the purpose of written communication. WILLIAM CAREY started a paper mill in 1812 at Serampore, West Bengal. He introduced a steam engine in 1820. Indian government had given preferential treatment to the indigenous paper production in 1880 to encourage and establishment of paper mills. Over the years, paper industry had been transformed into one of the major and key industries of the country. Government has completely deli censed the paper industry with effect from 17th July, 1997. The Indian paper industry among the top 15 global players today, with an output of more than 6 million tons annually with an estimated turnover of rupees 150,000 millions. The Indian economy is progressing well and targeting 8% + growth, there are, at present about 515 units engaged in the manufacture of paper and paper boards and newsprints in India

HISTORY OF PAPER INDUSTRIES:

Paper is the thin material mainly used for writing upon, printing upon or packing. It is produced by the amalgamation of fibers, typically vegetables fibers composed of cellulose,which are subsequently held together by hydrogen bonding. While the fibers are usually naturalin origin, a wide variety of synthetic fibers, such as polypropylene and polyethylene, may beincorporated paper into as a way of imparting desirable physical properties. The most commonsource of these kinds of fibers is wood pulp from pulpwood trees. Vegetable fiber materials suchas cotton, hemp, linen and rice are also used

HISTORY OF PAPER
Paper making is one of the inventions by Chinese. 105 A.D. is often cited as the year in which papermaking was invented. In that year, historical records show that the invention of paper was reported to the Eastern Han Emperor Ho-di by Ts'ai Lun, an official of the Imperial Court. Recent archaeological investigations, however, place the actual invention of papermaking some 200 years earlier. Ts'ai Lun broke the bark of a mulberry tree into fibres and pounded them into a sheet. Later it was discovered that the quality of paper could be much improved with the addition of rags hemp and old fish nets to the pulp. The paper was soon widely used in China and spread to the rest of world through the Silk Road. An official history written some centuries later explained: In ancient times writing was generally on bamboo or on pieces of silk, which were then called ji. But silk being expensive and bamboo heavy, these twoich materials were not conveninet. Then Tsai Lun thought of using tree bark,n hemp, rags, and fish nets. In 105 he made a report to the emperor on the process of paper making, and received high praise for his ability. From this time paper has been in use everywhere and is called the "paper of Marquis Tsai." In few years, the Chinese began to use paper for writing. Around 600 A.D. woodblock printing was invented and by 740 A.D., The first printed newspaper was seen in China. To the east, papermaking moved to Korea, where production of paper began as early as the 6th century AD. Pulp was prepared from the fibers of hemp, rattan, mulberry, bamboo, rice straw, and seaweed. According to tradition, a Korean monk named Don-cho brought papermaking to Japan by sharing his knowledge at the Imperial Palace in approximately AD 610, sixty years after Buddhism was introduced in Japan.

Along the Silk Road, we learned that paper was introduced to Xinjiang area very early according to the archaeological records. The paper found at Kaochang, Loulan, Kusha, Kotan, and Dunhuang sites dated as early as the 2nd. century. The technique eventaully reached Tibet around 650 A.D. and then to India after 645 A.D. By the time Hsuan Tsang from China arrived to India in 671 A.D., paper was already widely used there. For a long time the Chinese closely guarded the secret of paper manufacture and tried to eliminate other Oriental centers of production to ensure a monopoly. However in 751 A.D. the T'ang army was defeated by the Ottoman Turks at a mighty battle at the Talas River. Some Chinese soldiers and paper makers were captured and brought to Samarkand. The Arabs learned the paper making from the Chinese prisoners and built the first paper industry in Baghdad in 793 A.D. They, too, kept it a secret, and Europeans did not learn how to make paper until several centuries later. The Egyptians learned the paper making from the Arabs during the early 10th century. Around 1100 A.D. paper arrived in Northern Africa and by 1150 A.D. it arrived to Spain as a result of the crusades and established the first paper industry in Europe. In 1453 A.D. Johann Gutenberg invents the printing press. The first paper industry in the North America was built in Philadelphia in 1690.

Indian Paper Industry

The Indian Paper Industry is a booming industry and is expected to grow in the years to come. The usage of paper cannot be ignored and this awareness is bound to bring about changes in the paper industry for the better. It is a well known fact that the use of plastic is being objected to these days. The reason being, there are few plastics which do not possess the property of being degradable, as such, use of plastic is being discouraged. Excessive use of non degradable plastics upsets the ecological equilibrium

Development of Paper Industry in India

Paper industry has large significance to man. The industry has assumed greater importance in India with the growth of literacy. SPaper is required for books, magazines, periodicals, news-papers, writing and for various other purposes. In fact, paper is indispensable to man in the present day world. Paper is made from a variety of materials like rags, cereal strains, jute, hemp, bamboo, bagasse, bhaber grass, sabai grass, esparto grass and wood pulp. Presently, of all the raw materials wood pulp and bamboo predominate. The art of making paper was known to the Chinese as far back as 105 A.D. In India, it was started during the Mughal period. Paper making on modern lines is of a recent origin. Production of machine made paper was started by the bally mills, set up near Kolkata in 1870. By the end of the 19th century, Titaghar paper mill (1884), Deccan paper mill (1888) and Bengal paper mill (1891) had started production of paper. In 1925, the Government granted protection to the industry. Paper industry in India had a big leap during 1939-45, when a number of mills were set up and the production of paper touched about one lakh tonne mark. The number of mills rose to fifteen.

The real development of paper manufacturing occurred after 1950. Presently, there are 55 paper mills with an installed capacity of 26-0 lakh tonnes. The production of paper and paper board was to the tune of 15 lakh tonnes as against 1-1 lakh tonnes in 1951. The industry depends upon the following factors for its location: (i) Availability of raw material. (ii) Abundant supplies of clean and soft water for bleaching and washing purposes. (iii) Cheap and efficient means of transportation for carrying raw materials to the mill sites and for distributing paper for marketing in the consuming centres. (iv) Nearness to markets. (v) Adequate supply of cheap labour. (vi) Nearness to source of power. (vii) Facilities for disposal of waste. (viii) Availability of chemicals like caustic soda, acid and china clay. (ix) Availability of capital. (x) Availability of water. Like cotton mill industry, paper industry also has two distinct phases of its geographical distribution. In the earlier stage of its growth, the industry was mainly localized in the Hoogly basin of West Bengal, whereas in the second stage, there had been a dispersal of the industry to many other parts of the country. For many years, the paper industry was concentrated in the Hoogly basin; however, presently the industry has been set up in many other parts of the country. The state of West Bengal has leadership in respect of paper manufacturing. Paper mills have come up on both sides of the Hoogly River at Naihati, Kankinara, Alambazar and Tribeni near Kolkata. A paper mill has also been set up at Raniganj. The most important factors attributing to the development of paper industry in this region are:

(i) Availability of coal from Raniganj and Jharia coal fields and hydro-electricity from the Damodar Valley Corporation. (ii) Bamboo-the raw material is brought from Bihar and Orissa and rags and waste paper is collected from the urban population of Kolkata and other centres. Sabai grass is obtained from Madhya Pradesh and bagasse from U.P and Bihar. (iii) Kolkata serves as the largest market for paper, being the leading industrial, commercial and educational centre. (iv) The Hoogly river provides clean water. (v) Kolkata provides port facilities. (vi) The region is served by rail, road and water transportation. Paper industry has been set up in many other states of India. It is because of : (i) Use of hydro-electricity as a source of power. (ii) Growth of urban centres in different states serving as markets for paper because of development of industries, educational facilities, banking and financial institutions etc. Paper mills are located in U.P, Bihar, Orissa, Haryana, Maharashtra, Madhya Pradesh, Andhra Pradesh, Karnataka and Kerala. In U.P paper mills are at Saharanpur, Lucknow and Kanpur. The mills use sabai grass which grows in the foot hills of the Himalayas. Bagasse for the mills is obtained from local sugar mills. Rags, waste paper, hemp and jute waste are used for making coarse paper. Coal is brought from Raniganj and Jharia coalfields. There is plenty of market for paper in the state and elsewhere in the country. Labour is locally available because of dense population in the state. In Bihar, paper mills have come up in the centres of Dalmianagar and Darbhanga. Dalmianagar is one of the most important paper making centres of India. Bihar mills depend upon local sources of coal, labour and raw material. In Orissa paper mills are at Brijrajnagar and Koraput has been exported in 1999-2000 mainly to the neighbouring countries.

sComponents of paper demand

Component s

Cultural paper

Industrial paper

Speciality paper

s
WEP quested Kraft paper Paper board Multipurpos e

Other

Electrical

grease

Security type

Paper & Paper Boards

It is projected that Indian demand for paper would rise to around 20 million tonnes by 2020. on the basis of the use of raw material. The industry is classified into three segments: wood and bamboo (40%). Bagasse and agri residues (30%); and waste paper (30%), India is the only country using so many varieties of fibers in paper manufacturing. We export to over 300 large to medium scale converters and traders in more than 40 countries in the Indian Sub-Continent, Far East Africa and Europe. Our focus has always been to expand the business in products manufactured from fibre with an objective to preserve the greenery and forest land for a healthy living and a better future in the light of Global Warming

Paper and paper board products are available in rolls or sheets and are used for writing, printing, packaging, and many other applications.

Paper
Hi-Brite Recycled Writing & Printing Papers W/F Writing & Printing Paper W/F Offset Printing Papers Copier Paper Colour Printing Paper Paper Boards Coated Duplex and Triplex Board Cup Stock Board [1 Side & 2 Side P/E coated] Manila Boards Coloured Boards File Boards Fluorescent Paper and Boards Drawing Sheets All kinds of Packaging Boards Newsprint MG Cover Paper Kraft Papers Bible Papers Wide range of Coloured & Fancy Papers

We export customised paper stationery for schools and offices.

Cost minimization theory suggests national demand equations for paper and paperboard in which demand is a negative function of the price of paper and paperboard, and a positive function of gross national product. A dynamic version of this model was estimated with data from European Union countries, for newsprint, printing and writing paper, and other paper and paperboard. Country-by-country equations proved unstable. Pooling the data across countries, with dummy variables to account for fixed country effects, led to well defined short-term and long-term elasticities with respect to price and gross national product. The hypothesis that income and price

elasticities were the same across the European Union countries could not be rejected at the 1% significance level, for the three product groups. From 1969 to 1995, most of the growth in demand had been due to the growth in national product, while price increases had only a small negative effect.

Paper consumption

(India) Consumption of paper in India is set to double from the current 7 million tonnes per annum in the next eight years, according to Indian Paper Manufacturers Association (IPMA).

The industry growth, pegged now at 7-8 percent annually, will double thanks to socio-economic development, increasing literacy rates and increased government spending on education.

"The growth in paper is inevitable and is likely to contribute significantly to the government's target of achieving an overall growth of 12 percent in manufacturing. Unfortunately, the rising cost of raw materials, primarily wood and wood products, are a big challenge facing the industry," Narayan Moorthy, secretary general, IPMA said in a statement

PAPER INDUSTRY IN ANDHRA PRADESH:

In Andhra Pradesh there are 15 mills with a total install capacity 3,70,550 metric tons. Out of which, major mills will produced 2,50,600 metric tons. In A.P 15 mills out of 21 mills, which are remaining has been exception of work excellence, as there remained close these days. The Andhra Pradesh paper mills limited, at Rajahmundry, is having the highest installed capacity of 9,250

metric tons, third place goes to Bhadrachalam paper board limited with a capacity of 50,000 metric tons, Rayalaseema paper mills get fourth place with a capacity of 42,000 metric tons. In Andhra Pradesh there are 15 mills located and the occupied sixth place in India paper production. The list of paper mills in Andhra Pradesh are as follows. Out of the 15 mills more than half of the mills wound due to financial and other labor problems any few companies are sustained, these are Andhra Pradesh paper mills limited, Bhadrachalam paper board limited, Delta paper mills limited, Sirpur paper mills limited, Surya Chandra paper mills limited and vamsadhara paper mills limited. The percentage of wound up companies is mostly medium scale paper mills. And these

will use more than 75% unconvential raw materials

Table-1: Installed capacity of the paper industries (Mills);

Installed S.no 1 2 Name of the paper Mill Andhra Pradesh Paper Mills Limited Location Capacity(M.T) Rajahmundry 92,500 50,000

Bhadrachalam Paper & Paper boards Bhadrachalam Limited

3 4 5 6 7 8 9 10 11 12

Charminar Paper Mills Limited Corcar Paper Mills Limited Costal Paper Mills Limited Delta Paper Mills Limited Collier Paper Mills Limited Narguna Paper Mills Limited Penna Paper Mills Limited Ryalaseema Paper Mills Limited Siripur Paper Mills Limited

Medak district Nellore Kadiam Vendra Bommuluru Pattancherevu Cuddapah Kurnool Khagaznagar

3,000 10,000 10,000 42,000 7,500 7,500 4,950 42,000 66,100 10,000

Srilakshmi Saraswathi Paper Mills Mizamabad Limited

13 14 15

Suryachandra Paper Mills Limited Telangana Paper Mills Limited Vamsadhara Paper Mills Limited

Mandapet Khammam Srikakulam Total

7,500 10,000 7,500 3,70,550

Paper industry in West Godavari District:

In the early 1970s when country was faced with a paper famine, the government adopted a policies of encouraging small paper mills because of short generating period the use of cheap and second hand machinery readily available in foreign countries. Today there are three units exists in the district. 1. M/s Delta Paper Mills Limited

2. M/s Rolex Paper Mills Limited 3. M/s Gowripatnam Paper Mills Limited. All these units are agro based industries. More over these units are incorporated as small paper mills with an installed capacity of about 10 to 20 tonnes per annum.

Table-2: Paper production in Andhra Pradesh

Year 2005-06 2006-07 2007-08 2008-09 2009-10

Production(in lakh tonnes) 79.00 113.50 284.70 434.12 623.40

PRODUCT PROFILE:
Etymologically, paper is derived from Latin word PAPYRUS and French word PAPIER, a web composed of vegetable fibers, roughly oriented and matted together to from sheets. Paper denotes a deposit of vegetable fiber prepare from an aqueous suspension. Paper can be defined as a sheet or continuous web of material formed by the deposition of vegetable, minerals, animals are synthetic fiber or pictures with or without the addition of other substances into liquid vapour or gas in such a way that the fibres are intermeshed together.

The word paper derives from the Greek term for the ancient Egyptain writing material called PAPYRUS, which was formed from beaten strips of papyrus plants. Paper is one of the significant discoveries that turned the history of the world around. From the time immemorial, paper has played a key role in the evolution of our civilization. It is a basisc medium of communication and dissemination of information kids to kings, all human beings are using paper either directly or indirectly. It is very difficult to imagine modern life without paper. Paper is thus recognized almost as a touchstone of growth in the developing countries. Application of paper: The piece of paper becomes a document, this may be for keeping a record and for communication. Paper can be produced with a wide variety of properties, depending on its intended use. To represent a value: paper money, bank note, cheque, security, voucher and ticket. For entertainment: book, magazine, newspaper, art, zine.

For packaging: corrugated box, paper bag, envelope, wrapping tissue and wallpaper. For cleaning: toilet paper, hand kerchiefs, paper towels, facial tissue and cat litter. For construction: paper-mache, origami, quiling, paper honeycomb, used as a core material in composite materials, paper engineering, construction paper and clothing.
Other uses: Emery paper, sand paper, blotting paper, litmus paper, universal indicator paper, paper chromatography and capacitor dielectrics and filter paper. Paper making: The microscopic structure of paper: Micrograph of paper auto fluorescing under ultraviolet illumination. The individual fibres in this sample are around 10m in diameter. In the paper making process there are 6 steps. They are

Chemical pulping : The purpose of a chemical pulping process is to break down the chemical structure of lignin and render is soluble in the cooking liquor, so that it may be washed from the cellulose fibers. The pulp can also be bleached to produce white paper for printing, painting and writing. Paper made from chemical pulps is also known as wood-free papers. Chemical pulps tend to cost more than mechanical pulps.

MECHANICAL PULPING:
There are two major mechanical pulps, Thermo Mechanical Pulp(TMP) and Ground Wood Pulp(GWP). In the TMP process, wood is chipped and then fed into large steam-heated refiners where the chips are squeezed and fibreized between two steel discs. In the groundwood process, debarked logs are fed into grinders where they are pressed against rotating stones and fibreized.

DEINKED PULP:
Paper recycling processes can use either chemical or mechanical pulp. By mixing with water and applying mechanical action the hydrogen bonds in the paper can be broken and fibres separated again. Most recycled paper contains a proportion of virgin fibre in the interests of quality. Generally deinked pulp is of the same quality or lower than the collected paper it was made from recycled papers can be made from 100% recycled materials or blended with virgin pulp.

ADDITIVES:
Besides the fibres pulps may contain fillers such as chalk or china clay, which improve the characteristics of the paper for printing or writing. Additives for sizing purposes may be mixed into the pulp and applied to the paper web later in the manufacturing process.

PRODUCING PAPER:

The pulp is feed to a paper machine where it is formed as a paper web and the water is removed from it by pressing and drying pressing the sheet removes the water by force. Once the water is forced from the sheet felt is used to collect the water. In the earliest days of papermaking this was done by hanging the paper sheets like laundry. In more modern times, various forms of healed drying mechanisms are used.

FINISHING:
Paper at this point is uncoated coated paper has a thin layer of material such as calcium carbonate or china clay applied to one or both sided in order to create a surface more suitable for high-resolution halftone screens coated or uncoated papers may have their surfaces polished by calendaring. RAW MATERIALS: A availability of adequate raw materials is one of the major constrains for the development of paper industry. The rapidly changing economic, technological and regulatory environment has affected the progress of Indian paper industry due to the poor availability of cellulose raw materials. Amongst the cellulosic raw materials, baggase, straw and waste paper have inherent drawbacks of limited and scattered availability of suitable technology for conversion into higher-grade pulp. Large integrated pulp and paper mills use, bamboo hardwoods, softwoods.

TYPES OF PAPER; There are different types of papers. They are Bank paper Bond paper Book paper Wall paper Waterproof paper Cotton paper Past & present scenario:

1. PAST SCENARIO:
The Indian paper industry is accorded core sector status since paper is categorized as an essential commodity by the government. The growth of machine made paper industry can be divided into two phased such as pre-planning period, and post-planning period. Pre-planning period: Indias production of paper at the beginning of the twentieth country was estimated at 19,000 tones. In 1911, the production was at 27,200 tones. Their production levels reached to 40,000 tonnes in 1931 and to 1,10,100 tonnes by 1945. All types of paper and paperboard were made during this period. The raw materials in common use were sabai grass, hemp, rags, jute and imported spruce and wood pulp.

Production of paper in India (1911-1950) Year 1911 1921 1931 1941 1945 1950
PERIOD: The Indian paper industry in spite of several difficulties, in the early years, made significant strides in post independent period. Organized growth of paper industry commenced only in the planning era from 1951 onwards with the setting of new mills and modernization of and expansion of existing mills, under the various five year plans, the paper industry has showed an impressive development. The targets and achievements under the various five-year plan/annual plans.

Production(in tonnes) 27,000 24,700 40,000 95,000 1,10,100 1,09,300

Growth rates (%) 0 -0.091 0.619 1.375 0.022 0.030

POSTPLANNING

Plan periods

Production (in lakh tones) Target Achievement 1.09 3.50 5.58 6.58 8.25 Surplus -0.94 -0.06 -1.53 0.23 -0.25

1st plan 2nd plan 3rd plan Annual plan 4th plan

2.03 3.56 7.11 6.35 8.50

5th plan 6th plan 7th plan 8th plan 9th plan

9.50 12.50 18.00 32.00 32.00

9.00 12.36 18.08 34.80 0

-0.50 -0.14 0.08 0.08 0

PRESENT SCENARIO:
The paper industry has a vital role to play in socio-economic development of a country. The Indian paper industry, which is century old, has made steady progress and presently has an installed capacity of 9.18 million tones, generating 286 billion rupees in 2007. The paper industry employees 1.5 million people and contributes Rs.30,000 million to the government of India. The paper industry is ranked among countrys 35 high priority economic sectors

Table-3: Production growth rate of paper and paper board sector. year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 Production(in million tones) 4.8 4.9 5.2 5.5 5.7 5.8 6.1 6.3 Growth rate(units) 5.2 6.1 6.2 5.6 5.0 5.5 5.2 0

FUTURE PERSPECTIVES:
The paper industry has traditionally sought fibruous resources from trees, wood residues and waste paper. Emphasis is shifting back to waste paper after 30 year of relative decline in recycling. Management of fiber resources by major timber holding companies is being expanded to include waste paper. In the next decade the structure of the paper industry will reflect residuals based process technology relating to both city and forest. Recovery of waste paper can be feasible with source separation or dry separation technology. The outlook for recycling more old newspapers, old corrugated containers and mixed papers from office buildings is very good. Waste paper use in the U.S.A will double between 1972 and 1985 form 13 million tones to 26 million tones. By 1990 about 50% of the waste paper generated will be usefully recovered about 30% will be recycled, or exported and 20% will be burned for its energy content.

THE FUTURE OF PAPER:

Some manufacturers have started using a new, significantly more environmentally friendly alternative to expanded plastic packaging made out of paper, known commercially as paper form. The packaging has very similar mechanical properties to some expanded plastic packaging, but is biodegradable and can also be recycled with ordinary paper.

With increasing environmental concerns about synthetic coatings and the higher prices of hydrocarbon based petrochemicals, there is a focus on zein as a coating for paper in high grease applications such as popcorn bags.

DEMAND SCENARIO AND FUTURE PERSPECTIVES:

Traditionally, the demand for paper was dictated by factors like literacy levels, per capita income level and pace of economic activity. Normally, calculation of demand is based on different factors viz. the importance of paper as a tool for national growth needs no special emphasis. The per capita consumption of paper in India is very low when compared to other developing countries.

Demand and supply of paper and paper board (in lakh tones)
year Projected demand Likely production Shortfall from indigenous Compound growth rate(in percentage) 2000-01 2005-06 2010-11 2015-16 49.50 67.00 85.50 91.50 32.58 41.61 49.10 53.12 16.92 25.39 36.40 41.52 7.8 6.5 5.5 4.5

Demand and possible production may be much larger i.e. 16.92 lakh tones for the year 2000-2001, 25.39 lakh tones for 2005-2006, growing to 36.40 lakh tones by the year 2010-2011. Government policies:

Helps to establish new paper mills in the country. Making effective measures to develop the paper production. Giving subsidiaries to the paper mills. Delicensed the small scale paper industry. Reducing duty on raw material importing. Providing facilities to the paper mills to enhance its capacity.

TECHNICAL DEVELOPMENT:
It you join the pulp and paper industry, you can work with some of the most advanced production and information systems in the world. Modern paper manufacturing facilities use stateof-the-art automation and intelligent systems that offer a safe and exciting environment for engineers and skilled technicians to apply their expertise and education. Whether you like chemistry, physics, computer science or just solving problems, each area of the mill can put your skills to the test on a daily basis. Not only are the mill systems and equipment cutting edge, so are the paper products themselves. The paper industry offers the opportunity to work with advanced products and technologies, such as nanoscience, bioreactive papers that detect and kill bacteria, recyclable paper cell phones and much more. Innovative new products that exploit papers unique benefits are created each day. Its also easy to be green in the paper industry. In fact, many technical students are drawn to the pulp and paper industry by the opportunity to create 100% renewable, wood-fiber based products. In addition, the industry provides a chance to work with renewable, non-petroleum based energy sources for use both in and outside of the mill. The turning-point in the development which brought about a change in Finlands economy from one based upon agriculture to one based upon industrial production came about one hundred

years ago. One on the reasons for this was discovery at that time that the traditional raw materials for papermaking, linen and rags, could be replaced by wood fibers. The exploitation of this new source of raw material opened up new opportunities for utilization of the extensive forest resources of Finland, not just for the traditional export of timber, but also for the production of more highly priced fiber products. The evaluation which started a century ago has made Finland one of the leading nations in the field of pulp and paper. Of course, the growth of this industry has not been steady and smooth, but has been influenced by the dramatic historical and economic events of the past hundred years.

GROSS DOMESTIC PRODUCT (GDP):

Paper industry growth rate in India GDP has been impressive in the last few years. The activates over the years. This has given a major boost to the Indian economy. India gross domestic product means the market value of all the services and goods that are manufactured within the territory of the nation during the specified period of time. The Indian economy is the twelfth biggest in the world for it has the GDP of US $1.09 trillion in 2007. The country has the second fasts major growing economy in the whole world for it has the GDP rate of 9.4% in 2006-2007. The contribution of the industrial sector in India GDP. The industrial sector is one of the main sectors that contribute to the Indian GDP. The country ranks fourteenth in the factory output in the world. The industrial sector is made up of manufacturing, mining and quarrying, and electricity, water supply, and gas sectors. The industrial sector accounts for around 27.6% of the India GDP and it employees over India GDP came to around 5.2% in 2002-2003. In this year, within the India GDP, the mining and quarrying sector contributed 4.4%, the electricity, water supply, and gas sector contributed 2.8%, and the manufacturing sector contributed around 5.7%. The growth rate of the paper industry in India GDP came to around 6.6% in 2003-2004 and in this year, the electricity, water supply, and gas sector contributed 4.8%, the mining and quarrying sector contributed 5.3% and the manufacturing sector contributed 7.1% in India GDP. Paper industry growth rate in India GDP came to 7.4% in 2004-2005, with the manufacturing sector contributing 8.1%, the mining and quarrying sector contributing 5.8%, and the water supply, electricity, and gas sector contributing 4.3% in India GDP.

Paper industry growth rate in India GDP came to 7.6% in 2005-2006. In this year, the mining and quarrying sector contributed 0.9%, the manufacturing sector contributed 9.0%, and the water supply, gas, and electricity sector contributed 4.3%. The growth
rate of the industrial sector finally came to 9.8% in 2006-2007. This shows that industry growth rate in India GDP has been on the rise over the last few years. The reasons for the rise of industry growth rate in India GDP.

year 2002-03 2003-04 2004-05 2005-06 2006-07

GDP Growth rate (%) 5.2 6.6 7.4 7.6 9.8

The reasons for the increase of industry growth rate in India GDP are that huge amounts of investments are being made in this sector and this has helped the industries to grow. Further the reasons for the rise of the growth rate of the industrial sector in India are that the consumption of the industrial goods has increased a great deal in the country, which in its turn has boosted the industrial sector. Also the reasons for the increase of paper industry growth rate in India GDP are that the industrial goods are being exported in huge quantities from the country. The Indian government must boost the paper industry. Industry growth rate in India GDP thus has been registering steady growth over the past few years. This has given a major boost to the Indian economy. The government of India thus must continue to mask efforts to boost the industrial sector in the country. For this will in turn help to grow the countrys economy

EMPLOYMENT:
Paper industry provides ample employment opportunities to the populace. The paper industry employees 1.5 million people and contributes Rs.30,000 million to the government of India. The problem of manpower planning is an important ingredient at each step of paper industry planning. All such aspects of the paper industry with particular reference to its employment potential and training of personnel have been examined in this paper. Human labor has always been a creative force in the world. There are wide differences of opinion in respect of the number of unemployed laborers in India. The census of India conducted in 1971 put the population figures of the country at 548 million, comprising 284 million males and 264 million females of the total population, the working force comprises 180 million divided into 148 million males and 32 million females, viz 82.2 per cent and 17.8 per cent respectively. This would mean that during the period from 1971 to 1985 there will be an increase of about 51 million people in the work force in the country.

EXPORTS AND IMPORTS

EXPORTS: The Indian handmade paper industry produces a variety of paper and paper products mainly by using waste materials such as cotton rags, tailor cuttings, hosiery cuttings and small quantities of waste paper. Certain materials are blended with them for mottling effects and to produce special varieties of paper. Availability of raw materials and existing infrastructural facilities offer good scope for development of special varieties of handmade paper in the north east. It also has an added advantage to earn from world market. Due to increased literacy, industrialization, modernization and development by 2000 A.D, the per capita consumption of paper in India may increase from the existing level of 3kg to 4.5kg. The demand for paper is expected to increase from existing 21lakh tones (1991-92) to 37.9 lakh tones by 2000A.D, while supply will reach only 27.7 lakh tones. IMPORTS:

Imports are almost stable with an increase in the import of wastepaper. Imports of paper and paper products were growing over the years. However, it has increased during 2001-02 after a fall in 2000-01. Actual import was 2.71 lakh tones in 1998-99, 2.02 lakh tones in 1999-2000, 1.39 lakh tones in 2000-01, 1.67 lakh tones in 2001-02 and 1.23 lakh tones upto November, 2002. About 1, 40,000 tons of paper was exported in 2000-01 mainly to the neighboring countries.

Imports and exports of paper (in million tons): year imports exports Import growth Export growth rate (%) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 0.1 0.2 0.13 0.21 0.18 0.26 0.35 0.45 0.15 0.17 0.2 0.2 0.25 0.28 0.33 0.3 -10 -0.9 -0.3 15 5 20 35 50 rate (%) 0 5 10 11 20 25 30 30

CHAPTER- III

COMPANY PROFILE

BRIEF HISTORY OF THE COMPANY:

The Delta Paper Mills Limited was established as public limited company on 23rd May 1975 and certificate of commencement of business was obtained on 26th February 1976.The Delta Paper Mills Limited was promoted by late Sri Bh. Vijay Kumar raju and Andhra Pradesh Industrial Development Corporation (APIDC) on 18th September 1975. The company started its production on 7th April 1977. The plant was located at Vendra, village of Palakaderu mandal, W.G.Dt. because of availability of raw material in surrounding areas, water facility, and drainage facility for disposal of effluents and is approximately to the broad gauge railway line connecting madras and Calcutta. In 1976 ICICI along with IDBI, IFCI, LIC and UTI assisted the company for selling up the product. Delta Paper Mills Limited commissioned the paper machine for commercial production from July 1978 and pulp mill by November 1978. It earned its profit in the second and third year of operations. Around 2000 families are getting their livelihood from this company. Besides, all famers in and around the Vendra village and benefited selling their paddy straw to the company. The company manufactures writing and printing papers of different cultural varieties such as creamwove, white printing, azurewove, azurelaid, duplicating etc. the company uses unconventional raw materials like paddy straw and baggase. The main objective of this establishment was to use agro residues and cater to the needs of the farmers. It is the first company to utilize natural gas supplied by oil & natural gas corporation in entire south India. To keep the environmental balances, the compny has taken up plantation of trees in and around the mill premises. It has got full-fledged effluent treatment plant. The company has developed superior quality of paper called SUPER DELUX CREAMWOVE and penetrated into the market with good results. It has a strong marketing network. The majority of sales comprises to the government department viz., government text book corporation of Andhra Pradesh, maharastra, Madhya Pradesh, tamilnadu, kerala, and other central/state government agencies through DGS & D rate contract. The company injoys patronage of private market distributors and also having a brand name and image. Its Delta Hasti Duplicating Paper and Note Books are very popular. The company has alos installed a 9.9MW

power plant. In entire south India out of agrobased paper mills, the company is the only mill installed chemical recovery plant for abating the pollution. With all these developments, the company is now producing at the rate of 51,100MT per annum of quality writing and printing papers.

Reasons for selecting the location:

For bringing reputation to the native place of the founder. For creating employment to the rural youth. The availability of raw material in surrounding areas, water facility, drainage for disposal of effluents and its proximity to the broad gauge railway line connecting Chennai and Kolkata.

PRODUCT LINE: Types of the products of the company: Cream wove: This type of paper is used for typing notebooks, office books and for government etc. Azurlaid: This type of paper is used for making charts, cards etc. Azurwove: This type of paper is used for typing office work, used usually for rough work. Duplicating paper:

This type of paper is used for stencil work cyclostyling etc. It is used very much for rough works, colour paper, vouchers etc. Colour wove: This type of paper is used for packing bundles, packing and covers manufacturing. Sack kraft: This type of paper is used for packing bundles, packing, and covers manufacturing. Delta hasthi: Brand name of the books this of paper is used for note books.

CAPACITY:
In 1978 the initial production capacity was 30 tonnes per day. In 1986, Delta Paper Mills Limited under taken an expansion project to double its capacity to 60 tonnes per day. Now the capacity of the plant is 115 tonnes per day. Turn over: The initial turnover of the company is 9,000 MT. The company has taken expansion in the year 1986 to add another 9,000MT per annum. Now the total turnover of the company is 18,000 MT. The company has installed 3rd paper machine and required plant & machinery and increased the capacity the capacity to 42,000MT per annum and commissioned the same during December 2004. The mill development has been successfully completed and the company is now capable of producing 51,100MT per annum of quality writing and printing papers.

Nature of activity:

Delta Paper Mills Limited specialities in making paper alone, and produce primarily only three types of paper. Printing Writing Craft paper

Raw material:
The following types of raw materials are being used in manufacturing of paper in this company. They are mainly. Paddy straw Waste paper Cotton linters Rag pulp Wood pulp Bagasse and kakkisa Gunny and juite waste Bleached pulp Hosiery cutting pulp and otherCoal-singarence

Statement showing the personnel details of the Delta Paper Mills Limited

No. of workers:

Unskilled Semiskilled

131 246

No. of supervisors: Staff Assistants Sr.Assistants Supervisors/Shift in Changes Officers Assistant officers Officers Managers Assistant managers/Deputy Managers Managers Sr. managers Management Executive General managers Chief executive Managing director Contract labour: Daily wage employees: per day per day 1 1 400 40 27 9 1 1 1 90 9 15 23 17

MANPOWER PARTICULARS:
The Delta Paper Mills Limited has the credit of having a total member of 525 employees , which includes 11 office boys. The manpower was divided into two categories:

1. Staff 2. Workmen 1. Staff:

Staffs arranged into 1 to 10 grades of which 1 to 7 grades includes technical (supervision) and non-technical which has strengths of 134 members. 8 to 10 grades include managaerial categories, which has strength of 42 members.

2. Workmen:
The permanent and temporary workers are divided into 3 caategories. Permanent workers Workers on daily wages Apprentices

FINANCIAL PERFORMANCE:
The performance of the company during the year is satisfactory in terms of production and sales during the year under review; the company has taken up modernization of plant with the assistance of bank finance. The financial result of the company for the year ended March 31, 2010 in comparison with preceding financial year ended as on March 30, 2009 are summarized below. (Rs. In Lakhs)

particulars Sales of income Other income

2006 3730.12 77.89

2007 8838.55 51.29 875.33

2008 10489.55 63.48 1132.37

2009 11828.00 75.06 1271.42

2010 13237.17 45.30 1891.09

Profit before depreciation 501.73 and interest Less: depreciation interest Profit for the year Provision for tax Profit (loss) after tax Prior period of adjustments Profit available 474.01 27.76 2.13 26.50 45.78

570.57 304.76 47.52 257.24 45.62 302.86

601.25 531.12 144.17 386.95 291.36 678.31

501.95 501.95 734.71 232.76 621.56 388.80

481.44 481.44 112.91 368.53 299.79 7.59

for 0.77

appreciation Earning per share 3.40 4.94 11.70 7.93 8.34

Management:
Dr. G. Gangaraju Mr. G.V.K. Ranga Raju Mr. G. Rama Raju Mr. G.V. Narasimha Raju Mrs. Bh. K.K. Kasturi Mr. Ananda Varma Mr. M. Subba Raju Mr. A. Narasimha Rao Mr. G. Panduranga Raju Chairman Managing Director Executive Director Director Director Director Director Director Director

Objectives of the company:

To carry on the business of manufacturing and dealing in all kinds and classes of paper. To manufacture and deal in all material and substances used in the manufactured production or treatment of all kinds and classes of paper. To buy, sell, import, export, process chemically or otherwise treat and to workout for special purpose of all kinds and classes of paper. To plant, cultivate, produce, raise, manufacture, purchase, sell, export or otherwise handle or deal in grass timbered, bamboo, straw or other forest products. To carry on the business as stationers, printers, publishers, lithographers, office printer stereo types photographic printers etc.,

VISION:
Delta Paper Mills Limited, Vendra is committed to satisfy our customers, for the products we develop and supply with an emphasis on Customer requirement at competitive prices Use of Eco friendly systems to the extent possible Continuous process of improvement for betterment in quality Continuous interaction between the mills, suppliers, dealers and customers

MISSION:
Delta Paper Mills Limited is committed to actively promote the safety, health and well being of all its personnel. Delta Paper Mills Ltd will ensure that these aspects are inbuilt and become integral part of its operations and strategic planning. Delta Paper Mills Ltd also is committed to make available necessary funds, resources and any such means required to implement the occupational health, safety and welfare ( OHS & W) policy and commits to ensure: A safe work culture that minimizes the risk of injury or illness toits personnel Adequate facilities at work places Regular training, instructions ana information to all its OHS & W. To meet these provisions Delta Paper Mills LTD is commited to: Meet its Responsibility of care and well being of all persons in Delta Paper Mills LTD work places including visitors, contract workmen, casual workmen and trainees. Comply with relevant OHS & W legislation, code of practices and standard . Implement an effective hazard management policy. The right of employees to demand for safe working environment and shall strive to provide the same. Have effective two-way communication with all its employees for a better and safe work culture.

Price list with effect from 25 th may. 2010 within Andhra Pradesh s.no Variety/product Gsm Mill price for Per mt for reels rs. Ps. 40600.00

sheet rs. Ps. 1 Superior maplitho 2 3 4 5 6 7 8 9 10 11 Maplitho s.s. Maolithon.s.s -do-doCream wove -do-do-do-doCream rough 12 13 14 15 16 17 18 19 20 21 Duplicating Azurelaid Azurewove -do-do-do-doCover paper Colourwove Duplicating 60&above 60&above 58&above 56 54 52 50 90-150 47 60 38400.00 37500.00 36700.00 37100.00 37500.00 3800.00 38600 35700.00 40700.00 40100.00 58 & above 58 & above 56 54 58 & above 56 54 52 50 wove 60&above 40400.00 40000.00 40200.00 40400.00 35800.00 36200.00 36600.00 37000.00 37700.00 58 & above 41200.00

39800.00 37400.00 39600.00 39800.00 35200.00 35600.00 36000.00 36400.00 37100.00 37800.00

37800.00 36900.00 36100.00 36500.00 36900.00 37400.00 38000.00 35100.00 40100.00 -

(PACKET RATE)

(2.2 KG)

88-25

ORGANISATIONAL STRUCTURE OF DELTA PAPRE MILL LTD

The Delta Paper Mills Limited Enterprise is broadly divided into two divisions. Mills Division Administrative Division

Mills Division divided into ten departments. Production Dept. Electrical Dept. Mechanical Dept Paper Machine-Process Dept Utilities Dept. Civil Dept. Stores Dept. Quality Dept. Finishing House and Paper Godown Dept.

The administration division is divided into 5 departments. Administration Dept. Accounts Dept. Marketing Dept. Purchases Dept. Welfare and Time Office Dept.

Capital sources:

The initial capital of the Delta Paper Mills Limited was 1, 50, 00,000/-. The Delta Paper Mills Limited getting the financial support from the banks. Those banks are UCO bank, Canara bank, Andhra bank and Indian overseas bank. Term loans availed from canara bank, Andhra bank and Indian overseas bank are secured by way of equitable mortgage by deposit of title deeds of the companys immovable properties both present and future and by way of first charge of all fixed assets of the company as a primary security and hypothecation of movable properties of the company ranking pari passu with the term loan lender banks and further secured by a second charge on the current assets of the company consisting of raw materials, stock in process, finished goods, stores and spares and book debts both present and future. The following tables are shows the details of last four years of capital sources to the Delta Paper Mills Limited.

SWOT ANALYSIS:

STRENGTHS: The Delta Paper Mills Limited is using the updated technology i.e. using hydrogen peroxide bleaching system The company market share value is also in good position The management of Delta Paper Mills Limited is very strong in production activities and decision making The Delta Paper Mills Limited has skilled labour Fulfilled pollution abatement plans both for water as well as air meeting the stringent standards of APPCB Consistency in the quality of the product irrespective of the market conditions etc

OPPORTUNITIES: There is an opportunity to use new technology i.e. oxygen bleaching system Optimum utilization of company resources and human skills and capacity Expanding the company product line like as A4 sheets, paper roles, Delta note books Expanding into new geographic markets and product segments such as Hyderabad, Vijayawada, Calcutta and pune In holds high market share. It has occupied 25% of sales in the market

CHAPTER- IV THEORITICAL-FRAME THE STUDY MARKETING ACTIVES DISTRIBUTION OF DELTA PAPER MILL WORK OF

MARKETING ACTIVES

Marketing occupies an important place in the organization: of a business unit. Marketing is the performance of business activity in that director the flow of goods; and services from prodeucer to; consumer .Philip kotler defines as marketing; is analysis, organization,

planning & contracting of ; the firms customer; impinging resource policies, activities, with a view trod; satisfying the needs and wants of chosen customer groups at a profit. The prime objectives of the modern marketing is the satisfaction of the; customer needs. The marketing function of buying and selling but also includes a ll functions which satisfies of the customer such as financing storage risk baring, after sales services etc. marketing is related to the needs of buyer according to ; Cardiff and still marketing is the business process by which products are matched with markets and through which transfers of ownership are effected. Marketing activities are concerned with the demand stimulating and demand fulfilling efforts of the enterprise marketing activities are concerned with the demand stimulating and demand fulfilling efforts of the enterprise marketing is the unique function of the business. Channels of distribution are often; called as marketing channels or trade channels. Most of the producers do not sell there goods directly to the final use , the producer work with intermediaries to smooth the flow of goods are services. The marketing intermediaries bear a variety of names such as marketers, distributors, wholesalers, retailers; and jobbers. The marketing intermediaries made up a marketing channel. The decisions regarding the marketing channels are one of the most critical decisions faced by the management the companys channels decisions involve long-term commitments to other firms. Marketing occupies an important place in the organization of a business unit. Marketing is the performance of business; activity which directs the flow of goods and service from producer to consumer. Philip kilter defines as marketing is analysisorganzing, planning and controlling of ;

the firms customer impinging; resources, policies, activities, with a view to satisfying the needs and wants of ; chosen customer groups at a profit . The marketing function of buying and selling but also include all functions which satisfies the customers such as financing such as financing storage risk bearing, after sales services etc. Marketing is related to the needs of; the buyer. According to Cardiff and still marketing ; is the business process by which products are matched with marketing activities; are concerned with the demand efforts of the enterprise. Marketing is the unique function of the business.

Theoretical concept
What is distribution channel?
A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A distribution channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary receives the item at one pricing point and moves it to the next higher pricing point until it reaches the final buyer. Also called channel of distribution

The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

Designing of distribution channels

Delineating the role of distribution:
A channel strategy should be designed with in the contest of an entire marketing mix. First the firms, marketing objectives are reviewed. Next the roles assigned to product, price, and promotion own delineated each eliminate may have a district role, or two elements may share an assignment.

Selecting the type of channel:

Once distributions role in the overall marketing program has been agreed on the most suitable type of channel for the companys sequence, a firm needs to decide whether middlemen will be used in its channel and it so, which types of middlemen .

Determining intensity of distribution:

The next decision relate to intensity to distribution, or the number of middlemen. Used at the wholesaler and retail in a particular territory. The target markets buying behavior and the products nature have a direct bearing on the decision.

Choosing specific channel members:

The last decision is the selection of specific firms or brands middlemen to distribute the product for each type of institution there are usually numerous specific companies form which to choose

MAJOR CHANNELS OF DISTRIBUTION

Distribution of consumer goods:
Distribution channel may broadly classified into different categories as follows:

PRODUCER

CONSUMER

The shortest, simplest distribution channels for consumer goods involve middlemen. the producer may sell from door to door or by mail. For instance, south western company uses college students to market its books know as to house basis.

PRODUCER

RETAILER

CONSUMER

Many large retailers buy directly from manufacturers and agricultural producers.

PRODUCER

WHOLESALER

RETAILER

CONSUMER If there is a 4 traditional channel for consumer goods, this is, small retailers and manufactures by the thousand final this channel the any economically feasible choice. PRODUCER AGENT WHOLESALER

RETAILER Instead of using wholesalers many producers prefer to use agent middlemen to reach the retail market especially large-scale retailers.

PRODUCER

AGENT

Wholesaler

RETAILER

CONSUMER

To reach small retailers, the producers often use agent middlemen who in turn call on wholesalers that sell to small stores.

Objectives of channels of distribution:

1. The nature and importance of middlemen. 2. What is a distribution channel is 3. Multiple channels of distribution 4. Factors effecting the selection of a channel 5. The choice of individual middlemen.

CONSUMER MARKETING CHANNELS

0level 1level 2level 3level

MANUFACTURES

MANUFACTURE S

MANUFACTURES

MANUFACTURES

MANUFACTURES

MANUFACTURES

JOBBER

RETAILER

RETAILER

RETAILER

CONSUMER

CONSUMER

CONSUMER

CONSUMER

Various types of channels of distribution

Channels of distribution

AGENTS BROKERS DEALERS DISTRIBUTIORS JOBBERS RESIDENT BUYER WHOLESALERS COMMISSION HOUSES RETAILERS CONSUMERS INDUSTRIAL STORE

PHYSICAL DISTRIBUTION

TRANSPORT STORAGE WAREHOUSING

DISTRIBUTION CHANNELS IN DELTA PAPER MILL

Delta paper mill is redefining its distribution; focusing on reaching out to the customer at the right place and at the right time. It believes in venturing into the new markets with the support of an expanded distribution network.

In the domestic market, the sale of the products it channeled through a network of dealers. The company reaches out to the markets through 81 dealers located in 27 cities and towns. Over the years ends with enhanced focus on reaching out directly to the customer, the company today markets59 percent of its products directly to customers through its distribution network. The target is to ensure that more than 75% of the products are marketed directly to customers rather than to retailers and trader.

The company provides training to dealers and sales people to handle issues / queries of end users related to technology, complaints, etc. these trainings enhance the capabilities of the dealers and their sales force and help improve the efficacy of the distribution channel. The company generally uses indirect channel for bringing all its products to consumers. Because, in indirect channel it receives purchase order in bulk quantity.

It is easy to monitor and control order processing, payments and the dealers are the part of their management team. In indirect channel the goods reach the consumer in the following ways.

MANUFACTURE

RETAILER

CONSUMER

MANUFACTURE

WHOLESALER

retailer

CONSUMER

MANUFACTURE

WHOLESALER

SEMI-WHOLESALER

RETAILER

CONSUMER

When the company receives bulk indents form consumers, the company disposes off its products by way of direct channel
Manufacture Consumer

Delta paper mill cant produce goods directly to customers. Because, in indirect channel it receives purchase order in bulk quantity. For example 5tons or 2tons cant sell to customers, delta paper mill will receive huge order only. Now a days delta paper mill was selling goods in 20 tons or 40 tons per month to local area small dealer also.

CHAPTER-V ANALYSIS OF THE DATA INTERPRETATION OF DATA GRAPHS THE

Analysis and interpretations: 1) special brands preference by consumer at distribution 2) dealers opinion over facilities proceeded by delta papers ltd

Analysis and inrepatation 1) Circulation of various brands in west godavari district.

Total circulation Delta paper mill Costal paper mill Surya mill -

Percentage 68% 49% 38%

chandra -

From the above it is evident that delta paper mill limited is holding the lions share in the paper products market of west godavari district with 68% followed by the costal paper mill with 49% and surya chandra paper mill 28%.

Sales

1st Qtr 2nd Qtr 3rd Qtr

Delta paper mill =68% Costal paper mill=49% Curya Chandra mill=38%

2 delta paper mill circulations in west Godavari district for the last five years 31117.0 2007 2008 2009 2010 37297.0 40166.0 42422.0 44177.0

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2006 2007 2008 2009 2010 Series 1 Series 2

INTERPRETATION: From the above table it is evident that delta paper mill is holding the lions. Share in the paper product market of west Godavari districts. Because of drastic changes in prices.

3. Specific brand performance by consumer at distributors Prefereance of distribution Delta Costal Surya 53 34 23 Percentage 68% 49% 38%

60

50

40 prefereance of distribution percentage 20

30

10

0 delta paper costal paper surya

Interpretation: Majorities of distribution share presences delta papers. From the above table 68% of the distribution prefers. D.T. followed by costal with 49% and surya Chandra mill with 38%.

4. Dealers opinion over facilities produced by delta papers ltd No. of respondents Time delivery Transportation packaging 35 25 10 Percentages 50% 35.7% 14.3%

Interpretation: From the above the table it is clear that 50% of the respondents are satisfied with the timely delivery followed by 35.7% with transportation facilities and 14.3% with packaging facilities.
40 35 30 25 no.of respondents 20 15 10 5 0 delta coatal surya percenrage Column1

1. Opinion on a company providing margins and targets

Achievement of targets by section Easy Satisfied To be reduced To be increased Cant says 0 0 0 0 2 5 8 0 4 0 Difficult 0 0 Achievable 5 0 Cant says 0 0

Company offering and margins Graph: Findings: increased.

1 2 3 4

40% increased that achievement of targets is possible when demand is more and margins are

25% says satisfied with margins and easy to achieve the targets. 25% says difficult to achieve the targets.

Inference: Most of the retailers said, that to achieve the target given by the company is possible when margin increased. 2. Opinion on penalties for performance improvement penalties for delay of stock listing and experience of retailers in %.

Experience of retailer Penalties for delay o f stock lifting Graph: >80% Yes no Some times Cant says 0 0 5 0 >60% 0 0 10 >40% 0 0 5 0 >40% 0 0 0 0

12 10 8 6 4 2 0 1 2 3 4

Series1

Findings: 50% says that penalties must be applied in some times 25% retailers says 80% must not be applied 25% retailers say sometimes penalties applied

Inference: Most of the retailers says that penalties for delay of stock lifting in applied sometimes according to them performance. 3. Opinion on flexibility of retailers policy opinion on margins

Flexibility of retailers policy compared to competitor Opinion on margins Yes Satisfied To reduced To be 4 0 2 No 0 0 0 Still require 5 0 9 Cant says 0 0 0

increased Cant says 0 0 0 0

Graph:
16 14 12 10 8 6 4 2 0 1 2 3 4 Series2 Series1

Findings: 45% says that flexibility require in policy regarding margins. 25% says that enough flexibility require 20% of the retailers satisfied their giving

Inference: Most of the retailers say that company providing margins to be increased and flexibility of retailer policy still required when compared to the competitors. 4. Opinion on margins and setting margins

Opinion on margins Satisfied Market driven Setting margins Graph:

12 10 8 6 4 2 0 1 2 3 4 Series1

To be reduced 0 0

To be increased 11 0

Can says 0 0

9 0

Always higher then market Always lower then market

Findings: The company giving the prices according to market condition, so 55% retailers demanding to increase the margins 45% of the retailers are satisfied with company providing margins.

Inference: Most of the retailers said that, company providing margins to be increased and setting margins according to be market driven.

5. Opinion on delivery of products in time encouragement to retailers

Delivering the production in time Encouragement to retailers. Graph:

14 12 10 8 6 4 2 0 1 2 3 4 Series1 Series2 Series3

Yes Yes No Based on demand Cant says 6 6 0 0

No 0 0 0 0

Some times 0 0 12 0

Cant says 0 0 0 0

Findings:

60% retailers said that, DPM delivering products in time and giving encouragement to retailers. 30% retailers said that, based on the demand they are delivering products in time. 10% retailers said that, DPM not delivering products in time

Inference:

Most of the retailers said that, delivering the products in time and sometimes giving enough encouragement to the retailers.

6. Opinion on margin and delivering time opinion on margins delivering the products in time

Delivering the product in time Opinion on margins Graph: Yes Satisfied To be reduced To be increased Cant says 4 0 2 0 No 0 0 0 0 Still require 5 0 9 0 Cant says 0 0 0 0

16 14 12 10 8 6 4 2 0 1 2 3 4 Series2 Series1

Findings: Retailers say that DPM delivering products sometimes and they are asking to increase the margins. 45% of the retailers are satisfied with delivery of products in time 20% retailers said that, products are delivered in time but they are demanded increase the margins. Inference: Number of retailers says that company providing margins to be increasing and still required to delivering the products in time. 7. Opinion on operator

Successful implementing the retailer policy Encouragement flexibility 80% Yes No Still required 10 0 0 >60% 5 0 0 >40% 0 0 0 >40% 0 0 0

exists

Cant says

Graph:
12 10 8 6 4 2 0 1 2 3 4 Series1

Findings: 50% of the retailers said that, flexibility exists and successful implementing the retailer policy. 25% of the retailers said that, >6% successful implementing the retailers policy when enough flexibility exists 25% of the retailers said that, 80% of successful implementing the retailers policy when enough flexibility in still required

Inference: No of retailers said that, 80% only successful implementing the retailers policy when the products have enough flexibility exists. 8. Opinion on operator

Successful implementing the retailer policy

Mar

enti

pot

ket

al

Easy

Difficult

Achievable only if demand is more

Cant says

Yes No Still required Cant says

2 0 0 0

2 2 0 0

10 0 0 0

0 2 2 0

Graph:

12 10 8 6 4 2 0 1 2 3 4 Series3 Series2 Series1

Findings: 10% of the retailers said that, market potential increasing rapidly easy achievable. 10% of the retailers said that, market potential increasing slowly difficult achievable. 50% of the retailers said that, performance is achievable when market potential is decreasing rapidly. 10% of the retailers said that, difficult achievable when the market potential is increasing slowly.

Inference:

The product having the market potential and achieving the targets when possible only if demand in more.

9. Competitor:

Competitor retail policy with respect of incentives and margins Delivering the product in time Graph:
30 25 20 15 10 5 0 1 2 3 4 Series3 Series2 Series1

Agree Yes No Some times Cant says 12 0 12 0

Disagree 0 0 0 0

Scope to improve 0 0 0 0

Cant says 0 0 0 2

Findings: 60% of the retailers say that agree with respect of incentive and margins when competitors retail policy and delivering the production time.

20% of the retailers says that delivery the products sometimes and competitors retail policy with respect of incentives and margins. 10% of the retailers says that sometimes delivering the products in time and agree with the competitors retail policy with respect of incentives and margins. 10% of the retailers cant says about the delivering the product incentives and margins.

Inference: Most of the retailers says that delivering the product in time and also agree with the competitors retail policy with respect to incentives and margins. 10. Competitors:

Competitors retail policy with respect of incentives and margins Enough encouragement to the Agree Yes No Based on demand Cant say 7 0 7 0 Disagree 0 0 0 0 Scope to improve 0 0 4 0 Cant says 0 0 0 2

Graph:

retailers

16 14 12 10 8 6 4 2 0 1 2 3 4 Series3 Series2 Series1

Findings: 35% of the retailers agree with competitors retail policy with respect of incentives and margins with enough encouragement to the retailers 10% of the retailers says that scope to improve competitor retailer policy with respect of incentives and margins and based on demand 50% of the retailers say that scope to improve the competitors retail policy with respect of incentives and margins and enough encouragement based on the demand

Inference: Based on the demand only the competitors are agreeing with the retail policy with respect of incentives and margins.

Price list with effect from 25 th may. 2010 within Andhra Pradesh s.no Variety/product Gsm Mill price for Per mt for reels rs. Ps. 40600.00

sheet rs. Ps. 1 Superior maplitho 2 3 4 5 6 7 8 9 10 11 Maplitho s.s. Maolithon.s.s -do-doCream wove -do-do-do-doCream rough 12 13 14 15 16 17 18 19 20 21 Duplicating Azurelaid Azurewove -do-do-do-doCover paper Colourwove Duplicating 60&above 60&above 58&above 56 54 52 50 90-150 47 60 38400.00 37500.00 36700.00 37100.00 37500.00 3800.00 38600 35700.00 40700.00 40100.00 58 & above 58 & above 56 54 58 & above 56 54 52 50 wove 60&above 40400.00 40000.00 40200.00 40400.00 35800.00 36200.00 36600.00 37000.00 37700.00 58 & above 41200.00

39800.00 37400.00 39600.00 39800.00 35200.00 35600.00 36000.00 36400.00 37100.00 37800.00

37800.00 36900.00 36100.00 36500.00 36900.00 37400.00 38000.00 35100.00 40100.00 -

(PACKET RATE)

(2.2 KG)

88-25

DATA INTERPRETATION AND ANALYSIS

Parameter 1: Margins Over all inference

According to the DPM, now, the margins provided by the company are in the satisfied manner when compares to the other competitors. But still they want to get more margins from the company.
Reasons:

1. It is good for the company for this situation the company provides to the retailers is good when compared to the other competition. 2. Company fixing the prices according to met condition for better performance margins must be increased. Strategy: 1 1. About margins company has to maintain a good relationship with the retailers and provide future also reasonable margins to the retailers. Advantages: 1. Maintain good relationship with retailers. 2. With this reasonable margin retailers can retain for long in our organization. 3. Company will get good sales and also get profits. Disadvantages: 1. Give enough margins has retailer want that leads to losses. 2. Competitors may provide has we providing.

Strategy: 2 By providing the incentives for better performed retailers by comparing with the other competitors will give good results. Advantages 1. Channel members hold vital position in the distribution operation. 2. To persuade and influence the prospective buyers. 3. To participate actively in the creation establishment of the new product. Disadvantages 1. By providing incentives to the retailers company may get losses.

Plan of implementation Operation feasibility: To implement this strategy company has to provide reasonable margins to the retailers long time. Financial feasibility: 1. It might expensive even the company will get good results. 2. Retailers may satisfy with these margins that implies they may get interest to increase the sales, which leads to company will get profits. Time bound: 1. According to the time and demand company has to increase or decrease the margin. 2. If we maintain a reasonable margins for long time which leads to increase the sales.

Paramenter2: Coverage Over all inference: People are not getting satisfied with the delivering system of the company because the company not delivering the products in time so the retailer demanding for increasing margins. Reasons: 1. While transporting paper roles some of paper roles get damaged. 2. Sometimes retailers do not receive the paper rolls on time. Strategy 1: Maintain good quality products with neat package. Advantages: 1. Company will have increasing sales. 2. Company and retailer will meet the demand and supply the products accordingly on demand. 3. The retailers receive the products in time. 4. The relationship between company and retailers will be increase. Disadvantages: 1. Cost increases regarding the transportation. 2. Cost of production increases. 3. Lot of time to take to fulfill this activity. Strategy 2:

Logistics management should be effective with deliver the products on time and coverage. Advantages: 1. Logistics management should be effective with coverage. 2. The retailers receive the products in time. 3. Retailers and company will meet the demand and supply of products according to the demand. Disadvantages: 1. Cost increases regarding the transportation. 2. The company recruit the extra employees. Strategy: 3 The DPM channel requires some promotional activities and maintaining relationship between retailer and the dealer give good result to the company. Advantages: 1. Company and retailers will meet the demand and supply and products according to the s demand. 2. The retailers receive the products in time Disadvantages: 1. Cost increases the regarding transportation 2. Lot of time to take to full fill this activity Best solutions: Logistics management should be effective with coverage and deliver the products in time.

Plan of implementation:

Operation feasibility: To implement this strategy company should have more area to cover.

Financial feasibility: 1. Making availability of products to the retailers company should maintain good number of transport vehicles. 2. Company should spend money on vehicles Technical feasibility: To implement this strategy we have to find out whether there are special sources like drivers and technical staff. Time bound: As this strategy helps to maintain effective logistic management, company has to use logistic management according to the demand.

Parameter3: Operations Over all inference: Operations are successfully implemented by the company to create the best product accordance to with the existing one. For operations they are using old technology. Reasons: 1. Most of the customers are attracted by the changes because every customer have their own needs and the wants. If you meet their needs and wants they will satisfied. 2. It will be achieved by continuous change in a product. Strategy:1 1. If possible to providing a quality products then the company having a department workers continuously effective through the product development.

Advantages: 1. Sales increases. 2. Maintain a good quality product. 3. Continuous production will be available. Disadvantages: 1. More invest we need. 2. Technology might fail. Strategy: 2 Company establishing new technology instead of old technology. Advantages: 1. It saves time

2. Maintain a good quality products Disadvantages: 1. Company need extra employees and educate them 2. More money invest on new machinery.

Strategy: 3 Logistics operations should be effective through the coverage area. Advantages: 1. Covering more area 2. Company will produce the paper roles in time to the retailers Disadvantages: 1. Company needs extra vehicles and skilled labor 2. Sometimes technology might fail.

Best solution: Company establishing a new technology instead of old machinery. Plan of implementation: Operation feasibility: 1. This strategy should be implemented by replacing the new technology in the place of old technology. 2. Company should have updated knowledge about their market. Financial feasibility:

1. Implementation of this strategy does cost expensive. Even though it is more expensive we can produce the products with low cost by using new technology. 2. Company can compete with competitors. Technical feasibility: Employee should be made aware of the new equipments or company has to recruit a technical person who knows knowledge of the new technology. Time bound: 1. As the strategy helps to produce product with low cost. 2. Company can have competitive advantage. 3. It should be implemented and updated according to the competitors.

Parameter4: Targets Over all inference Even the retailers are reaching their targets but it is not sufficient even through there is a reasonable profit margin provided by the DPM. Reasons: 1. The retailers are put their efforts on the margins towards the company. 2. And also the company provided the enough encouragement like incentives to the retailer policy. 3. Targets are not so easy to fulfill unless margins are increased. Strategy: 1 To apprise the retailers the work done by him, it increases productivity its may be incentives and gifts and also take their opinions into consideration.

Advantages: 1. Other retailers get motivation through the retailer who get performance appraisal it leads to sales increases. Disadvantages: 1. Retailers may leave the organization who is not getting satisfied. Strategy: 2 Instead of those who retailers are not reaching the targets take new retailers for the company. Advantages: 1. For new retailers have some energy to increase the sales towards profit orientation. 2. They might have new innovative ideas to increase the sales 3. Loyal customers will stay, new customers will get in. Disadvantages: 1. Getting new retailing is hard some times 2. They might not have sound knowledge.

Strategy: 3 Give decision making for the retailers. Advantages: 1. So they have knowledge about customer requirements and needs. 2. They might have innovative ideas how to design the product according to customer requirements. Disadvantages:

1. They may tell impossible decisions to take by the company some times 2. So many alternatives given by the retailers 3. Decision making process is difficult. Strategy: 4 Company sets the achievable targets. Advantages: 1. The retailers are agree with the reasonable targets. 2. Retailers are showing interest towards the sales. Disadvantages: 1. Company sometimes may getting loses. 2. The company will not get the good name.

Strategy: 5 Company put outlets like direct marketing Advantages: 1. Not giving any margins to the retailers. 2. Customers get the product low cost. 3. Companies will get increase in sales. Disadvantages: 1. At a time company not concentrate on both manufacturing and marketing. 2. Customers are thinking about our product is cheap so that they get in the outlets of market.

Best solution: Give decision making for the retailers. Planning implementation: Operation feasibility: 1. To implement this strategy company should involve retailers in decision making. 2. It helps to know the actual problems placed by the retailers and overcome the problems to get profits. Technical feasibility: To implement this strategy we have to find out capable retailers to take in decision making. Time bound: As this strategy helps to know the problems faced by the retailers based on company has to change the retailers to take decision making.

Parameter5: Communication The communication between the company and dealers seems to be poor due to there is not enough support from the company. Reasons: 1. Maintaining good relation with dealers is very important to run the channel effectively without any disturbances. 2. Most of the consumers are satisfied by the company products. 3. In order to increase the retailing company has to maintain quality products. Strategy: 1 Based on the demand the company supplying the products in time. Company has to produce the products on time to met the demand, logistics management has to effective and production also meet the market demand. Advantages: 1. The retailers will meet the demand 2. Increase in sales that leads to profits 3. Company will get good name from the customers and retailers also will satisfy Disadvantages: 1. More money invest on logistics department 2. More costs to the organization Strategy: 2 Giving more importance to the retailers Advantages: 1. The retailers will give importance towards the company

2. Sales will increase because retailers push our products on their interest 3. The retailers are more attract towards our product. Disadvantages: 1. Giving more importance to the retailers leads to they work less 2. Wastage of time and more cost to the organizations by conducting meetings Strategy: 3 The company has to maintain communication with retailers towards their performance and effective continuity,

Advantages:
1. Retailers are more involved in work 2. Retailers are improved their performance. Disadvantages: 1. Some retailers leave the organization due to lack of communication 2. They feel u comfortable towards company because of communication Strategy: 4 Manufacturer using advertisement and promotion to persuade consumers to ask intermediaries for the product thus in during the intermediaries to order it. Advantages: 1. Product became high brand loyalty 2. When they people perceive difference between brands choose the brand before they go to store 3. It leads to people can understand easily. Disadvantages:

1. To improve quality and your product you have invest more money on your product 2. The additional margin of product cannot be earned through intermediaries by the company 3. Sometimes people wrongly understand on your product when give advertising on your product. Best solution: Company has to produce the products on time to meet the demand and logistics management has to effective and production should meet demand. Plan of implementation: Operation feasibility: 1. To implement this strategy company should maintain good repo with retailers. 2. Company has to conduct meeting to know the performance of the retailer and problems faced by them. 3. It helps to overcome those problems. Financial feasibility: 1. To maintain good relationship with retailer company has to conduct meetings. 2. To conduct such meetings company might have more money. 3. It helps to understand the feelings of the retailers. Technical feasibility: If company needs any person to conduct the meeting company should recruit or management persons can directly deal with retailers. Time bound: Based on the time availability of management and retailers company has to conduct the meetings. These meetings help to communicate with the retailers and maintain good relationship .

CHAPTER VI

FINDINGS SUGGESTIONS QUERTIONAIRY BIBLIOGRAPHY

FINDINGS

1) Majority for the consumers, nearly 50% were satisfied the timely delivery of delta paper mill ltd. 2) Delta paper mill sores the largest production in west Godavari. 3) Majority of the distribution were satisfied with timely delivery and transportation facilities in delta paper mills. 4) Most of the transportation of paper roles is being done by the hired vehicles

OBSERVATION &SUGGESTIONS

1) It has been observed that the cost of production is high. Necessary steps to be taken to reduce the cost of production. Proper inventory management, efficient utilization of resource, including manpower can achieve this paper industry is competitive both in terms of quality and price. So both elements depend upon the production. 2) The Company producing paper it causes more pollution to its surrounding. 3) The research and development with in delta paper mill is lacking proper support from the management. 4) The rewards and incentive in the company are limited. To maintain good relationship between employees and management the company should increase the incentive program. The electronic apparatus and new technology machines were lacking. The company has to implement electronic apparatus and new. Technology, not only to increase its production but also control air population. It is observed that there is a lot of wastage of paper during production process. It is observed that there is no effective inter personal relation between departments. There are limited safety measures for workers working on machines.

DISTRIBUTIONS SURVEY ON DELTA PAPER MILL

1. name--------------------------------------address-----------------------------------2. what are the different brand of paper products involved in your distribution ?

a) delta paper b) costal paper c) surya paper 3. order of preference for the timely delivery of various brands ? does the market potential for delta papers ?

a) increasing rapidly b) increasing slowly c) decreasing rapidly d) decreasing slowly

CONSUMER ATTITUDE SURVEY

1 Name----------------------------------------Address-------------------------------------2 occupation? A) Student d) Business b) employee e) other c) professional

3 which of the following companys do you prefer? a) Delta paper mill ltd. b) Costal paper mill. c) Surya Chandra pvt ltd. 4 What you prefer the above brand?

1)Name :

Address:

2)Occupation:

A) student

B) employee

C) professional D) business

E) others

3) which of the following companys do you prefer?

A) delta paper mills limited

B) costal paper mill

C) surya Chandra pvt limited

4) what you prefer the above brand?

A) brand

B) timely delivery

C) others

5) Are you satisfied with the quality and the price of the brand you prefer?

6) what is your opinion on delta papers?

7) what changes do you suggest for delta products?

Questionnaire for Retailers

Name of the dealer:

Address

Retailer grade:

1. From how many years have you been dealing with DPM?

A) 1-3

B) 4-6

C) 7-10 D) above 10 years

2. What is the different brad of paper involved in your distribution?

A) delta paper

B) coastal paper

C) surya Chandra

D) AP paper board

3. Order of preference for the timely delivery of various brands?

A) Yes

B) No

4. Which mark the factors that enable you to be the dealers of delta paper mills

A) company relationship B) quality

C) brand image

D) high image

5. Does the market potential for delta papers?

A) increasing rapidly

B) increasing slowly

C) decreasing rapidly

D) decreasing slowly

6. How do you rate the pricing of delta paper mills to compare the other brands?

A) market driven B) always higher than market C) always lower than market

7. A margin of each long note book in Rs.3 is allowed for the paper industries. Are you satisfied (or) any changes occurred? A) occurred B) to be reduced C) to be increased D)cant say

8. Fulfillment conditions like 30% in 6 months and 75% annually are available or not? A) easy B) difficult C) achievable only if demand is more D) cant say

9. Do you feel that enough flexibility exists in the present retailer policy in terms of operational issues and features? A) yes B) No C) still require D) cant say

10. If comparision to other competitors retailer policy of DPM is attractive in respect of incentives and margins. Do you agree with that? A) agree B) disagree C) scope to improve D) cant say