BALCO

AN ORGANIZATIONAL STUDY AT BALCO

TABLE OF CONTENTS

Sl No: Chapter Contents Page No:

1 EXECUTIVE SUMMARY

2 CHAPTER-1 INTRODUCTION INTRODUCTION

OBJECTIVES OF STUDYSCOPE OF STUDYMETHODOLOGY OF STUDYDURATION OF STUDYLIMITATION OF STUDY

122333

3 CHAPTER-2 PROFILESINDUSTRY PROFILECOMPANY PROFILEPRODUCT PROFILEORGANISATIONAL CHART

491823

4 CHAPTER-3 DEPARTMENTAL STUDYFINANCE DEPARTMENTHUMAN RESOURCE DEPARTMENTMARKETING DEPARTMENTPURCHASE DEPARTMENT

PRODUCTION DEPARTMENT

2530374245

5 CHAPTER-4 ANALYSIS AND INTERPRETATION

SWOT ANALYSIS 49

6 CHAPTER-5 FINDINGS AND SUGGESTIONS

FINDINGS

SUGGESTIONS

55

56

7 CONCLUSION

BIBLOGRAPHY

58

59

MOUNT ZION COLLEGE OF ENGINEERING, KADAMMANITTA 1


1.1 INTRODUCTION

The advent of globalization has brought with itself many changes.

Corporations across the globe are finding this kind of business environment tough

to operate. However as there is a saying ‘every change is got to have a two side

effect’, the same happens with globalizations too. It has brought in enormous

opportunity. As a result companies are always willing to bring in efforts to become

the leaders and thus enjoying their high market share.

After the arrival of IT companies on the global scenario, now the

manufacturing companies are following the same suit and are growing globally at

a fast rate. Quality is now one of the prime fields of attention for the

manufacturing companies. They believe in giving the maximum possible quality

and thus earning a sound profit.

To study about an organization- its working, structure, human resource,

etc. Thus holds a great significance as it helps one to clearly understand how

complicated an organization work so as to have an optimum use of resource

available.

My one month Organization Study in Solve Plastic Products Pvt. Ltd gave

me lot of valuable experiences, which really will help me in my future ventures. I

had a clear study on the various departments namely; Production dept, HR dept,

marketing dept, Finance dept, and purchase depts. I understood how effectively

these departments carry out their and go in support to other department.

The products of Solve Plastic Pvt. Ltd. i.e. BALCO pipes is having the

major market share. It is just simple as to explain how they became the market

leader i.e. the quality of their products. The company never compromise in quality

and they know that good products is always going to have customers. Thus, it is

doubtless in saying that the company will touch new heights.



1.2 OBJECTIVES OF THE STUDY

The main objectives of carrying out this organization study are as follows;

To know about the pipe industry and its future.

To learn about the history of the company and how it

made its debut into the pipe business.

To understand the functioning of the company in terms of

the departments.

To analyze the strengths, weakness, threats and

opportunities concerning the company.

.

1.3 SCOPE OF THE STUDY

The organization study comprises of the entire functioning of the

organization, which includes the nature of business it involved in, the current

competition scenario, the departmental segregation created for the implementation

of plans and procedures, the current branches that it controls and future expansion

plans which includes both the national and international markets.

At Solve Plastic Products Pvt. Ltd., it begins when the need for high

quality pipes at reasonable prices was felt in the southern state of India, Kerala.

Powered by the success of providing pipes at unbeatable price and quality in the

home market, it gradually spread its business to the remaining regions in the

southern zone, there by gaining a substantial market share in pipe business.



1.4 METHODOLOGY

Primary Data

Primary data were collected through direct observation of various functions

in the organization and through interaction with various departmental heads and

other employees of the organization.

Secondary Data

Secondary data were collected from official documents like their annual

report, financial records, various other organization manuals, company etc. and

from their website.

1.5 DURATION OF THE STUDY

The duration of the study was 30 days from 3rd May to 31th May 2010

1.6 LIMITATIONS OF THE STUDY

There were some limitations present in the study conducted during

the period. Some of them are as follows;

Since there were time constraints, all detailed information cannot be

included.

The study mainly depends on the secondary data.

Limited information in terms of financial data, due to tight work

schedule of finance personals.

Even there was sufficient support from the staff of the company; a tight

work schedule prevented them from giving additional information.

As the company is in the manufacturing industry, it was very difficult

to collect and analyze some complicated technical details.



2.1 INDUSTRY PROFILE

The pipe industry in India had its history dating back to late 1960’s. In

Kerala the PVC pipe industry marked its presence from 1970’s. At that time, it

was really a tough job to market the concept of this new product. The pipe

industry also faced the shortage of raw materials, as there were only few

companies like Chemplast, PRC were manufacturing PVC resin which is the

important ingredient in pipe manufacturing.

Above all, scarcity of pipe fittings in the market had created a great concern. So

while selling pipes it was the liability of the company to provide market with the

proportionate volumes of PVC fittings.

In spite of all these challenges, PVC pipes has established its own position in

the market due to its- durability, affordable price, ease in handling and hygienic

nature. Over the period, many other varieties of pipes like Polypropylenes,

Polyethylene, ACC, Steel, and FRP were introduced in market. But they were not

good enough to replace PVC pipes.

The PVC pipe industry in India had grown more than 3000 times since its

introduction. As India is growing the average percapita consumption for PVC in

India about 0.85 kg/head. However, our neighboring developing countries, the

consumption is much more. For example in China, the precipitate consumption

would go up to 4kg/head. Since India is also growing at a fast rate, we can expect

that the consumption would go up and the net outcome will be a prosperous future

to the PVC pipes industry in the coming years. Initially in pipe industry, the

general manufacturing concept was producing single pipe with single die. Since

the maximum output offered by machineries at that time was as low as 20-30 kg

per hour, the concept did work. As demand increased, more and more technologies

came up. Their came the idea of two die technology in the year 1997. This was

indeed a huge bonus for the companies as they could save power, low capacity

utilization, space, installation of many machines, labor, etc.



The number of plastic manufactures has declaimed in recent years, as a

result of the spiraling number of mergers and acquisition. Acceleration

consolidation amongst plstic manufacturing is generally greater bargaining.

Power of parties the replacement of traditional material is continued

product developed in the market forward. Assessing what all happen in 2009

considering that the U.S. economy it believes that the most critical power of

international crisis is over that the U.S economy is already showing signs of

recovery, present P.V.C consumer indication of recovery in the 1st quarter of 2009.

U.S P.V.C economy has shown positive result in the second half of the year.

Western Europe became the driving force behind the implementation

of plastics in pipe systems in pipe after the second world war. The availability of

low cost ‘Thermoplastics’ combined with an enormous need for infrastructure

replacement, led to huge increase in the use of polymers.

The Balco had also several other technological advancements which

altered the full property of the PVC pipes. One of such technology is the Mirror

Finished Technology (MFT), in which both the outer as well as the inner surface

will be smooth. In the conventional pipes, the inner surface used to be rough. This

technology helps in reducing the friction, gives more hardness, etc.

As said in the beginning the pipe industry has now grown to manifold

heights and is still foreseeing a good future. As we learned in Economics – no

business is going to enjoy its monopoly for a long period. If people find one

business is earning a high profit, they tend to invest in that until the industry is

saturated.

We have now number of PVC pipe companies in the scenario other than Solve

Plastic Pvt. Ltd. in India



Indian Scenario

Poly Vinyl chloride is the most important of all the commodity plastic

consumed in the country. Used in a variety of application subsisting traditional

materials such as steel, glass etc. There is a predicted substantial growth in India’s

petrochemicals production capacity by 2014-15 from 2008 production figures.

Polyvinyl Chloride (PVC) is forecast to increase to 1.78 mln tpa and 920,000 tpa

respectively.

While this may be keeping with the rising global oil and polymer pieces,

plastic process came up with duty on imports. Petrochemicals are hydrocarbons

derivatives and are usually obtained from crude oil and natural gas. The product

crude oil refining is preferred feedstock because of their lower cost availability and

process ability.

The excess capacity of about 1000 players in the PVC sector and very low

value also caused problems of qualities and business of non-standard products.

Some of the states have therefore initialized an action of demanding purchase from

only those players who have acquired ISO 9000 CERTIFICATION. On the other

hand, plastic market for several small sized players spread all over the country

having almost 40% share of business are aggressively pushing products purely

based on cost without adherence only about 10 players with in the sales volume

beyond 50-100 kt of pipes. The major players are:-

State Scenario

There are many PVC pipe producers in Kerala. Today the PVC pipe industry

holds a key role among the small scale industries. About twenty P.V.C pipes

manufacturing companies are functioning in Kerala. So there is stiff competition in

the realm of PVC manufacturing, some well known branches are available in the

market are BALCO, HYCOUNT, SAKTHIMAN, KELACHANDRA, SUPREME,



PEARL BLACK, GOOD WILL etc. There are two types of PVC pipes water pipes

and electrical conduits. PVC pipes are more durable than cast iron pipes.

RBI had reduced the interest rate of housing loans through HDFC. So the

construction field will increase so that there will be a huge demand of PVC pipes.

The State Government with Japanese Technology for drinking water and

development of wells in rural areas (Japanese Project) will increase the demand of

PVC pipes.

The problem faced today is that most of the tenders of Kerala Government

were received by the producers of outside Kerala. Because of the price of the

product outside Kerala is less than that of State.

The major companies are:

Hycount Pipes:

Hycount pipe is one of the leading brands in Kerala. This company was

commissioned two decades ago at Kollam and late Prof.M.K.V Hameed generated

the idea. The company is having an installed capacity over 12000 Metric tons per

annum.

Wellworth Polymers:

This company is well known for the technical advancement they bring in.

They are regarded as the first company in the world to make four pipes of the

same quality as prescribed by BIS from a single extruder with 4 DIES

technologies. They are also the first one in India to adopt the 2 DIES technologies.

Their product ranges consists of PVC pipes, fittings, flexible hoses and are into

making of machineries for extrusion and Dies, tools, etc.

Supreme Plastics:

Supreme offers the widest and the most comprehensive range of U- PVC



pipes and fittings in India.

The other companies include:

1. Kelachandra

2. Shakthiman Super

3. Vajra plastics

4. Prestige Plastics

5. Pearlblack

6. Goodwill

The problem faced by Kerala today is that most of the tenders of the

Government were received by the producers of outside Kerala. Because of the

price of the product outside Kerala is less than that of State. PVC pipes are more

durable than cast iron pipes and asbestos pipes that is the reason why the PVC

pipes are commonly used. In Kerala most of the water supply units are supplying

water through PVC pipes.

The water authority is also converting asbestos pipes into PVC pipes in step

by step. The price of PVC pipes was increased to average of 7% recently. The

replacement of asbestos pipes into PVC pipes by the water authority is good for

the growth of PVC pipes market in Kerala. So PV C pipes industries have a bright

future.



2.2 COMPANY PROFILE

SOLVE PLASTIC PVT. LTD. has turned out to be one of the best

companies in this industry through its remarkable efforts. The main factory and

the corporate offices are located at in Punalur and the second unit is at Edamon.

Company philosophy:

They believe in the highest standards of integrity and transparency in its

operations. Company ensures maintaining a high morale in the staff and the

marketing network. The various units of the company provides an equitable

working atmosphere without hierarchies what result in excellence of the highest

order and the marketing team is professional in time keeping and delivery.

History:

SOLVE PLASTIC PRODUCTS PVT. LTD. was a sole proprietary concern

started at Punalur in 1989. Solve Plastic Products, the first company of BALCO

Group started production in 1991. Then it was registered as a small scale industry

in 1995.The Company produces high quality water pipes and electric conduits

with ISI mark. Balco conduits received ISI registration soon after and with no

time the product became the market leader.

Solve Plastic Products are marketed under the brand name ‘BALCO’.

They are the leading manufacturers of PVC pipes and conduits in Kerala and

owing the best marketing network in Tamil nadu and Karnataka.

The company due to its immense efforts, made it possible to receive the

approval of BIS with in a short period of time. It is doubtless in telling that the

success has been a result due to its commitments towards quality and consistency.



The process control and R&D department have the expertise and most modern

sophisticated technology for the process inspection and testing of conduits water

pipes. The first commercial production had started in the financial year 1995-1996

with an average production capacity of 55 tons in a month. Fitted with an extruder

52/188v made by kolsite, Dama in association with Kabra Extrusion Technique,

Germany. This unit is capable of making electric conduits as well as PVC water

pipes having both ISI and non – ISI standards. The company also got ISO

9001/2000 Certification from JAS- ANZ through Phoenix Progressive

Certification India Limited.

Under the same management another unit Solve Plastic Products PVT.

Ltd. Was incorporated in the year 1994 with an objective of tapping the abundant

opportunities prevailing in the PVC Water Pipe Sector. Cashing on the need for

high quality Pipes for potable water Balco created a segment of its own based on

its unmatched quality and strength. With virgin raw materials and

uncompromising quality standards the PVC water Pipes and the unit has trigged

predictable growth. The first commercial production had started in the Financial

Year 1995-96 with an average capacity of 55 Tones in a month. Fitted with an

Extruder 52/18 V made by Kolsite, Daman in association with Kabra Extrusion

Technik, Germany, this unit is capable of making Electric Conduit as well as PVC

Water Pipes having both ISr and Non ISI standards. The company could get ISO

9001/2000 certification from JAS-ANZ through Phenoix Progressive

Certification.

During the final year the group had accelerated production capacity by the

inclusion of a hi-tech extrusion machine 52/25v extruder of kolsite. This

machine having 170 kg/hr installed capacity is with Twin Die Head and

downstream technology, which in turn helps to produce two pipes at a time. The

range of products was also targeted in meeting the diverse needs of the building

sector. The Balco products have the unique advantages in quality, strength, color,



and flexibility.

Balco brand of Solvent Cement was launched in 2006 and is now

catching up with the other leading products of Balco. The company is having a

well-structured marketing network, which ensures precision timing and quick

delivery.

In 2002-2003 Balco group get tied up with Reliance Communications

and Balco Communications was launched as the franchisee for the Reliance Cell

Phones in the area code 0475. Reliance Communication now has a total

connection strength of 1000 plus and the Reliance Web World is now a major

venture.

In 2006 Balco group ventured in to finance sector and tied up with

Reliance Life Insurance, Reliance General Insurance, and Reliance Money. The

group is now the representatives of the respective companies nationally leading

company in financial services Reliance. Life and General Insurance, Mutual

Funds and a variety of products are being promoted.

The Balco group is presently diversifying in to organic foods, with

framing of fruits and vegetables and organic food processing. Together the group

has a turnover of more than Rs.10 core annually. The core companies have kept

climbing since inception.

At present Balco brand of conduits is the largest manufactures of the

product in Kerala and was the first to have adopted frontier technology like twin

screw twin dye downstream process of batten field.

The Balco Group

SOLE PLASTIC PRODUCTS PVT. LTD. BALCO COMMUNICATION BALCO INVESTMENTS



BALCO CHARITIES

KALLADA ORGANIC FOODS.



Solve Plastic Products Pvt. Ltd.

Solve Plastic Products, the Flagship Company of Balco Group started

production in 1991 with assistance of Kerala Financial Corporation,

Thiruvananthapuram and the State Bank of Travancore. The Balco brand of

electric conduits was launched and meticulous care was taken to maintain the

highest standards of quality. Balco conduits received ISI registration soon after

and the product was soon market leader. With the enthusiasm of the team the

unit had the privilege to become the first unit in Kerala to get IST for Electric

Conduits. More specifically its success has been aroused from its commitments

towards quality and consistency in business relations. These factors geared it up

later to get the approval of BIS with in a short span of time.

Under the same management another unit Solve Plastic Products Pvt.

Ltd. was incorporated in the year 1994 with an objective of tapping the abundant

opportunities prevailing in the PVC Water Pipe Sector. Cashing in on the need

for high quality Pipes for potable water Balco created a segment of its own

based on its unmatched quality and strength. With virgin raw materials and

uncompromising quality standards the PVC water Pipes and the unit has

triggered predictable growth. The first commercial production had started in the

Financial Year 1995-96 with an average production capacity of 55 tones in a

month. Fitted with an Extruder 55/18V made by Kolsite, daman in association

with Kabra Extrusion Technik, Germany, this unit is capable of making Electric

Conduit as well as PVC Water Pipes having both ISr and Non ISI standards. The

Company could get ISO 9001/2000 certification from JAS-ANZ through

Pheonix Progressive Certification India Limited.



During The Financial Year 2002-03 the group had accelerated

production capacity by the inclusion of the hi-technology extrusion machine

52/25 V Extruder of Kolsite make our production line. This machine having 170

Kg/Hr installed Capacity is with Twin Die Head and Downstream Technology,

which in turn helps to produce two pipes at a time. The range of products was

also augmented to meet the diverse needs of the building sector. The Balco

products have unique advantages in quality, strength, colour and flexibility

which cater to the specific needs of the building sector.

Balco brand Solvent Cement was launched in 2006 and is now catching

up with the other leading products of Balco. The statewide marketing network of

Balco ensures precision timing and prompt delivery.

In 2002-2003 Balco Group get tied up with M/s Reliance

Communications and Balco Communications was launched as the franchisee for

the Reliance Cell Phones in the area code 0475. Reliance Communications now

has a total connection strength of 1000 plus and the Reliance Web world is now

a major venture of Balco Group.

Balco Communication

Balco is the franchisee for Reliance Communications and owns the Web

World express in Punaloor catering to the eastern regions of Kollam district.

Presently all the numbers that start with the code 0475 of Reliance

Communications is created to by Balco Web World.

Expected to have a wider reach soon with the eastern areas of the

district covered through more towers installed, it now has a client strength of

more than 300 subscribers.



In 2006 Balco Group ventured in to Finance sector and tied up with M/s

Reliance Life Insurance, Reliance General Insurance and Reliance Money. The

group now the representatives of the respective companies of the nationally

leading company in financial services Reliance Life and General Insurance,

Mutual Funds and a variety of products are being promoted.

Balco Investments

Balco Investments was launched in 2006 as a felt need for taking care

of the investment portfolio.

This is a primarily to cater to the growing investment needs in the state

and it has already teamed up with Reliance Capital of the Anil Dhirubhai

Ambani Group and is presently the Business Associate of Reliance Life

Insurance, Reliance General Insurance and Reliance Money.

A part from being a financial hub with insurance, mutual funds and

stock trading windows Balco Investments shall soon be facilitating a spectrum

of products in the sector.

The Balco Group is presently diversifying in to Organic Foods and

initial work for the Project is underway. This Project is likely to be launched in

2007, with farming of fruits and vegetables and organic food processing.

Together the group has a turnover of Rs. 10 crore annually as on 2006

December. The crore companies have consistently kept their growth and the

annual turnovers have kept climbing since inception. What has made it possible

for the company to keep the payments of dividends steady for the shareholders.



Market Share of the Company

Balco is the Kerala’s first ISI, ISO 9001/ 2000 conduit manufacturer.

Currently the market share of electrical conduits is 75% and the share of water

pipes is 35%. Solvent Cement and PVC bends are booming. These two are the

new products of the company.

Future of the company

The company is planning to increase the production capacity by purchasing

of new and high capacity machines to meet their demands. The company is

planning to start production units for solvent mixing and filling and also they are

planning to produce PVC fittings like elbow, reducers, tee, couplings etc. for all

size of pipes.

Competitors of the Company

Hycount

V- guard

Kelachandra

Finolex

Shakthimankjh

Thomson

Plumber’s choice

Pearl black

Supreme

Star

Goodwill



Products of the Company

PVC electric conduits (Electric Pipes)

PVC water pipes

Solvent Cement

PVC bends

Objectives of the Company

To maintain an effective quality management system with active involvement of

employees.

To ensure timely delivery of products in required quantity.

To solve for continual involvement of quality.

To grow as a socially responsible organization.

Quality policy:

Balco believe in the concept of serving the society by offering quality

products and this principle is very much adhered to by the group. They are

committed to quality of the highest standards.

The leading Balco brand of PVC products come out with high quality

checks. The in-house and R&D laboratories are equipped with the most modern

instruments for testing of raw materials and the end products to ensure the quality.

Constant up gradation of standards keep the line of production keep

abreast of the international specifications in the fields. Balco products conform to

the stipulated IS/WHO standards and has the IS/ISO 9001/2000 certification to its

credit.



The company produces and supply of Poly Vinyl Chloride (PVC) electric

conduit pipes and unplasticised PVC water pipes in conformity with the

customers’ requirements. We ensure utmost customer satisfaction through field

feedback and incorporating the responses in the production and supply lines. The

company has a professional quality management system in place with the best

expertise in the sector.

Quality objectives

To maintain an effective quality management system with the active

involvement of all employees within an increase in sales by 5% in a year and

customer satisfaction level is not less than 80% in the financial year 2008-

2009.

To ensure timely delivery of materials in required quantity with maximum

permissible delay of 2 days.

To strive for a continual improvement of quality with a rejection of final

stage will not be more than 0.5% and customers’ complaints will not be

more than 2% per year.



2.3 PRODUCT PROFILE

Balco offers a wide range of eco friendly PVC products. The product

range consists of;

1) Balco PVC water pipes

Balco PVC pipes with ISI mark vary in sizes of 20mm to 110mm with

pressure 2.5 kg/cm2, 4kg/cm2, 6kg/cm2, 8kg/cm2, 10kg/cm2,12.5kg/cm2 and for

plumping pipes of 20mm to50mm.

Features of Balco PVC water pipes

Balco PVC water pipes are met with all the requirements as per ISO 4985-

2000.

Manufactured from virgin raw materials.

Offers entire range of plain and socket end class 1,2,3,4,5,6 and plumbing

pipes.

No bacterial growth inside the pipe due to presence of light.

Balco PVC Pipes have been have been proved to maintain the natural purity of

the lead content of these pipes is much less than the limit prescribed by the

Bureau of Indian Standards.

Resistance of corrosion.

High impact strength at normal temperature and at low temperature.

High thermal stability.

High strength to weight ratio.

Excellent Tensile strength.



Field of Application

Portable water suppliers, agriculture, telecom cable ducting, drainage etc.

Advantages of UPVC pipes over others

Conventionally, materials used in pipes are Galvanized Iron (GI), Cast

Iron (CI), Steel, Asbestos, and cement concrete. These materials suffer from

effects of corrosion, health hazards, loss due to transportation breakage, and short

as well as uncertain life span. Besides, day by day, they are becoming expensive

and scarce.

PVC pipes on the other hand are corrosion resistant, easy to transport,

install and maintain compared to metal pipes, PVC pipes 1/16th in weight, require

1/5th energy and have only 3/5th frictional losses. They have excellent resistance to

salt solution, mineral acids and alkalis. The established life of PVC pipes is much

more than that of GI&CI pipes. It has been reported that in a span of 75 years, PVC

pipes require no replacement but GI&CI pipes have to replaced twice and four times

respective. Thus, PVC pipes score over conventional material in all respects.

In PVC pipes 85 to 90% is Poly Vinyl Chloride (PVC). The other

chemicals like TBLS, DBLS are used as stabilizers and LS, CS Stearic Acid etc.

are lubricants CaCo3 is filler and TiO2 and carbon are used as colorants. In these

TBLS and DBLS are components of Lead. Traces of lead in drinking water are

harmful and low quality PVC water pipes are thus harmful to health in the long

term

To reduce cost many manufacturers use more of fillers, which require

more stabilizers, what lead to more trace metal poisoning. Balco brand of PVC

water pipes do not compromise on cost and use virgin PVC also undergoes

stringent quality checks and adheres to the Indian Bureau of Standards

specifications.



This is a reason for the acceptance of Balco pipes in the market, where those

informed insist on Balco where drinking water is in focus the Balco team makes

no compromises. And this is the reason for the building industry to call Balco

pipes eco friendly pipes.

2) Balco PVC conduits

Balco PVC conduits, the first of its kind having both ISI and ISO

certification in Kerala, have been approved by PWD, CPWD, Railway, BSNL etc.

Features of Balco conduits

Highly durable, light weight, monotonic and non corrosive.

Easy installation and the long lasting nature of PVC conduits avoid

periodical maintenance.

Can bend at any angle thus to avoid expense for the fittings like bends, elbows

etc.

Manufactured from high impact resistant PVC which is specially formulated

to meet superior standards.

Hot stamping on every meter length so as to avoid duplication.

Field of Application.

BALCO conduits are recommended for use in all places where safety

and protection of people and building are considered to be important viz. factories,

industrial complexes, power stations, oil refineries, trains, street tunnels, railway

stations, airports, hospitals, schools, hotels, department stores, museums,

telephone exchanges, conference halls, kalyanamandapams, military installations,

civil defense shelters, households etc.



3) Balco Solvent Cements and Bends

Balco solvent cement is the most effective solution for joining of

UPVC pipes, conduits, and fittings. It is a fast and easy to use and ensures water

tight joints.

The total absence of dissolved particles, lumps, or other foreign matter

helps it give high joint strength. Balco solvent cement offers the minimum

hydrostatic bursting strength of 2.8 mpa after 2 hrs curing time. Balco solvent

cement is packed in specially designed and eco friendly tin containers of 100 ml

and 250 ml sizes.

Future plan:

The company is planning to increase the production capacity. In this

they are planning to purchase one or more machine of high standard and capacity.

The machine is called extruder. The company introduces new system for better

availability of products in all over Kerala.

BALCO PVC Pipes with ISI Mark vary in sizes of 20 mm to 110 mm with pressure

class 2.5 kg/cm2, 4kg/cm2, 6 kg/cm2, 8 kg/cm2, 10 kg/cm2, 12.5 kg/cm2 and for

plumping pipes of 20 mm to 50 mm



Those interested in business association at various levels write to:

[email protected] , [email protected]

For those aiming at procuring our PVC products, related enquiries or complaints write

to : [email protected] , [email protected]

Investments and Insurance through our principals in the sector M/s Reliance Money,

Reliance Life Insurance and Reliance General Insurance write to:

[email protected],[email protected], [email protected]

Cell phone related matters through our principals M/s Reliance Communications write

to: [email protected]


mailto:[email protected]









2.4 ORGANIZATION CHART


CHAIRMAN

DIRECTOR

MANAGING DIRECTOR

GENERAL MANAGER

PEON

QUALITY CONTROLLER

SECURITY

LAB ASSISTANT

SUPERVISOR

PRODUCTION MANAGER

FINANCE MANAGER

HR MANAGER

MARKETING MANAGER

SUPERVISORASST. MKTG.

MANAGERCHIEF

ACCOUNTANT

DEALERS

CLERKS

COMPUTER OPERATOR

MARKETING EXECUTIVES

CLERKS


DEPARTMENTS OR FUNCTIONAL AREAS

The organization is made up of various departments. Departmentalization

is the grouping together of similar or logically related activities. There are several

bases of departmentalization. This departmentalization is shown on an

organization chart. Different forms of departmentalization are departmentalization

by functions, by products, by region, by process or combination of any of them.

DEPARTMENTS OF THE COMPANY

The main departments in Solve Plastic Pvt. Ltd. are the following.

Finance and Administrative department

Human Resource department

Marketing department

Purchase department

Production and Quality control department



3.1 FINANCE DEPARTMENT

STRUCTURE OF FINANCE DEPARTMENT

The Finance Manager who directly controls both the senior accountant and the

security heads the department. Under the senior accountant come the receptionist,

computer operator, clerk, and the cashier.

Finance is an important function of any business as money is

required to meet various activities of it. Finance is considered to be the life-blood

of any business. It is defined as the provision of money at the time it is wantedThe

finance department is in charge of preparing statements and carrying out analysis.

This department controls all the financial activities. It includes rising and allotting

of funds for various activities like paying of salary, keeping the sales details,

verifying it etc.


FINANCE MANAGER

SENIOR ACCOUNTANT

RECEPTIONIST COMPUTER OPERAPTOR

CLERK CASHIER


Main functions of finance department

Determination of financial objectives

Designing the capital structure

Determining source of fund

Maintaining liquidity

Forecasting and estimating of short term and long term capital requirements

Maintaining relation with banks and financial institution.

CAPITAL STRUCTURE OF THE COMPANY

Authorized capital 70 lakhs

Working capital 1 core from SBT Punalur

Long term borrowing 75 lakhs from KFC

REVENUES

Sales turnover of Rs 8 crores

Sale of electric conduits Rs 4.5 crores

Sale of water pipes Rs 3.5 crores

EXPENCES

Major raw materials

Resin

Lubricant

Stabilizers

Calcium carbonate

Tetra hydro furan



Sales and distribution

Goods are sold through retail outlets of dealers all over Kerala, and Tamil

nadu and Karnataka. For efficient distribution of goods, the company has its own

delivery van to distribute pipes to the retail outlets. Dealers and marketing

executives who cover the target will give commission along with salary.

Working capital

For the smooth functioning of business the company has a good

working capital management. The company allow credit period of one month for

credit sales. The companies operating cycle involves cash, raw materials, work in

progress, finished goods, sales, bills receivables, debtors again cash. For obtaining

raw materials the company purchase goods from venders who give more credit

period. Major suppliers of the company are Reliance, DCW, and Chemplast.

Budgeting

Company prepare budget based on previous year’s sales and industrial

growth. It is an estimation of future income and expenditure based on some

calculations and forecasting.

Functions of the Finance Manager

Estimating capital requirements – capital requirements can be classified

as long term and short term capital needs. The Finance Manager is

expected to make decision on the basis of such needs.

Determining the composition of capital – the finance manager should try

to make a balance between the owners fund and creditors funds.

Determining the source of fund- the finance manger should determine the

suitable sources from which fund’s can be raised



Disposal of fund – the finance manager must concentrate on preventing

misuse of funds, pay leakages and should try to meet the creditors dues.

Disposal of funds – the financial manager should ensure proper disposal

of surplus earned in a very careful and thoughtful manner.

Management of cash – the finance manager should ensure proper disposal

of surplus earned in a very careful and thoughtful manner.

Management of cash – the finance manager should see to it that adequate

cash / liquidity is maintained at all times to pay wages, salaries and dues

to creditors.

Finance Control – the finance manager should have a proper control over

corporate funds, financial forecasts and profit planning.

Tax payments – According to the companies’ sales and income tax acts,

the company is required to pay such taxes on an annual basis

Preparing budgets – budget can be defined as a comprehensive and

coordinated plan expressed in financial terms for the operations of an

enterprise for some specified period in the future.

At Solve Plastic Products Pvt. Ltd. the company prepares annual

budget for forecasting its financial position. The budget is calculated on

the basis of actual data of the previous 3 years. According to a recent

analysis, the company forecasts 30% growth target in the coming years.

Other financial insights about Solve Plastic Products Pvt. Ltd.

The functioning of the finance department is handled by the Finance

Manger.

Solve Plastic Products Pvt. Ltd. fund its sources of finance through

banks, by issuing shares and other financial institutions. Solve Plastic Products

Pvt. Ltd. relies on the financial services of State Bank of Travancore.



The company’s financial policy includes:

Low cost operations of funds

Outside funds acceleration

Inflow of funds acceleration.

The company calculates the depreciation by .Diminishing Method’

Accounts Department

Accounting functions is a necessary input for the finance function, that

is, accounting is a sub function of finance. Accounting generates information /

data relating to the operations / activities of the firm. The end product (s) of

accounting consists of financial statements like Balance Sheet, Income

Statement, Sources / uses of funds statement and Cash flow statement.

Objectives of the accounts department

Provide the information needed for planning, control and decision

making.

To prepare suitable budget for increasing the profits of the firm.

To prepare proper records of all transactions in the company.

To support the long term and short term decisions made by the

company.

To provide protection for business properties from unjustified and

unwarranted use.

To help ascertain the net profit earned or net loss incurred from carrying

out the business.

To help in ascertaining the financial position of the business.



3.2 HUMAN RESOURCE DEPARTMENT

STRUCTURE OF HUMAN RESOURCE DEPARTMENT


HR MANAGER

SUPERVISOR

CLERKS

EMPLOYEES

PEONS AND SECURITIES


Human Resource Management (HRM) is a broad discipline of management.

It is concerned with managing the human factor in the organization.

This chart shows the administrative setup of human resource department.

HR manager heads the department. He is responsible for the personnel and

administrative function of the company. Under the HR manager, there are

supervisor, clerks, employees, peons, and securities.

Human resource is regarded as the only dynamic factor of production;

other factor of production remains dormant without involvement of human factor.

It is broad discipline of management. Recruitment, selection development,

utilization, and accommodation of human resources are handled by this

department.

Human factor is largely the most important factor in any organization. It is

very important that the persons employed in an organization may be developed

and utilized in an efficient manner. So as to minimize wasting and increase

productivity. This department is responsible for ensuring the maximum utilization

of human resources in the company. This department is responsible for ensuring

the maximum utilization of human resources in the company and thus achieves the

organizational objectives.

At SOLVE PLASTIC PRODUCTS PVT. LTD., human relations are warm

and cordial in nature. The employer and employees share a good mix of both

formal and informal relations. The company implements various incentive

schemes for the benefit of the employees, thereby increasing their productivity

manifold. There are 80 employees working in the factory with 3 shifts. In

addition, marketing staffs include 38 employees are working in the company. The

personnel at various functional levels affecting the product quality are having

adequate competencies, these personnel having a number of years of experience

and skills. Main objective of HR department is procurement and proper utilization

of workforce to achieve the overall objective of the company.



Objectives of HR department at Solve Plastic Pvt. Ltd.

To recruit the right persons for the right job.

To determine the training program required for each and every employee of the organization there by helping them to achieve their individual and organizational goals.

To implement activities that will motivate the employees to increase their overall effectiveness and to bring out their potential.

To maintain the departments’ contribution, at a level appropriate to the organizational needs.

To maintain cordial relations with employees.

FUNCTIONS OF HR DEPARTMENT

Human resource planning

The BOD, MD, General Manager, and HR manager will decide the number

of employees required, their qualification, post method of recruitment,

remuneration etc.

Qualification for lower level employees is plus two, ITI for helpers and

mixers and experience in the field and for marketing executives, degree is

compulsory.

Recruitment and Placement

Manager/ head of each department or factory to furnish intents work force

recruitments if any of respective department to HR departments with details of

manpower specification. The HR department take action for filling up vacancies

that are normally arises on the organization. Recruitment is made through news

paper advertisement followed by scrutiny and interview.



Company publishes advertisements in leading newspaper with job

details, requirements of candidates. After application scrutiny and interview,

eligible candidates will be selected. The selected candidates are placed as right

man for the right job.

Training

Induction training will be given to the new employees in order to acquaint

with new situation and employment. Training is given according to the training

need of each employee. It is an evaluation of employees’ skills competencies,

abilities attitudes, morale etc. the personnel have been given adequate training.

Training needs of employees are discussed during management review meeting;

training is organized internally and externally depending on the nature of training

required. ISO training is given to employees at Chennai. Records of training will

be maintained. Performance of personnel is evaluated periodically. The personnel

are made aware of their roles in achieving the quality policy.

Performance Appraisal

The HR department makes performance appraisal of employees. It is the

evaluation of employee’s skills and capabilities and actual performance with

standard performance with stated standards. If there is any deviation corrective

measures are taken. Criteria or attributes for performance appraisal are; job

knowledge, productivity, attendance, integrity, commitment, cooperation etc.

Wages and Salary Administration.

HR department is responsible for preparing payroll/work sheet for

calculating the amount of wages payable to the workers. For factory workers the

salary is given based on time rate. For marketing executives remuneration is as

given in salary plus commission. Over time wages is double of actual wages.

Everyone get an increment in wages depending upon the profitability and their

experience every year.



Health and Safety measures

Management of the company has provided necessary infrastructure to

achieve the recruitments of products in terms of building work space associated

utilities, process equipments, and supporting services. The infrastructure provided

is adequate to ensure safety of the employees. The infrastructure provided is

adequate to ensure safety of the employees. Appropriate work environment has

been provided necessary to achieve product conformance and safe working

conditions for the employees. Employee State Insurance and also accident

compensation is provided by the company.

Welfare Measures

A meditation program called Jeevanam Art of Living is conducting regularly

in the company. A self help group is functioning in the company to help

themselves. Sports and games are conducting in festival seasons like onam.

Workers Participation

All employees are divided into different groups and they will meet regularly in

every week. Then they will give their suggestions regarding work schedules,

working hours, and decisions relating to their job to the top management.

Employee Grievance Cell

The important grievance faced by the company is that workers are not got

better working environment and safety. I.e.; the air coming from production plant

is injurious to health, especially eyes. Weekly meeting within groups and

complaint cells also functioning in the company. HR personnel are responsible for

handling the complaints, disputes within the group and with top management.

Employees can directly give complaints to the top management or put their

complaints in the complaint boxes.



Other Benefits

Provident Fund (PF)

The employees are provided with the benefit of Provident Fund.

Employees State Insurance (ESI)

All the employees who earn of Rs. 7500 automatically come under the

ESI Scheme. The employee’s contribution for ESI is 1.75% of salary and

employer’s contribution is 4.75% of salary.

Employees who are under the ESI scheme are entitled for other

benefits like:

1. Sickness benefit.

2. Temporary disablement benefit.

3. Permanent disablement benefit.

4. Dependents disablement benefit.

5. Maternity benefit.

The obligations of the ESI are:

Restriction of employees (form 1)

Recovery of ESI contribution and remittance

Every 6 months the return of contribution (form 6)



Should be submitted to the employer.

Accident (Form 16)

Maintain register of employees (Form 7)

Legal Officer

The Legal officer looks after all the legal activities of the company

if any case is filed against the company or if a company has filed a case

against any person. It is the legal officer who looks into it. The legal officer

approaches lawyers before appearing the court on behalf of the company.

It tries integrate the company policies with human efforts.

The department follows an open door policy in setting

grievances.

Personnel Records and Audits

It includes:

Maintenance of personnel records

Seniority list of employees

Wage and salary of employees

Attendance management and leave administration

Other related functions



3.3 MARKETING DEPARTMENT

STRUCTURE OF MARKETING DEPARTMENT

This department is headed by the marketing manager, and then comes

the assistant marketing manager. From the assistant manager the authority will be

given to the sales officers, junior marketing executives and the salesman.

BALCO is having its own customer base and high loyalty, the marketing

efforts becomes slightly easy. The marketing department organizes weekly

meeting to review the progress and to discuss about the product movement.

The sales strategy of BALCO pipes is entirely different from others. Here the

production and supply of PVC electric conduits and unplasticised PVC in

accordance with the customer requirements. Marketing department also ensures

the customer satisfaction through field feedback and incorporating the response in

the production and supply line. The sales promotion activities of BALCO are

differ from other competing firms. Their product has got a place in the minds of

consumers, so they don’t have any need to make big advertisement. With the help

of the quality of their product, they get the direct personnel advertisement.


MARKETING MANAGER

ASSISTANT MARKETING MANAGER

SALES OFFICERS

JUNIOR MARKETING EXECUTIVES

SALESMAN


Marketing Research

The marketing department of the company is always in touch with

market trends, new demand of customers, methods to attract new customers, retain

the customers.

Targeting and Positioning

Balco pipes are recommended or targeted for all places where safety

and protection of people and buildings are considered to be important.VIZ,

houses, factories, industrial complexes, street tunnels, railway stations, airport

museum, telephone exchanges, hospitals, schools, defense shelters etc.

Distribution Strategy

Water pipes and electric conduits are distributed to the dealers of

electric shops and plumbing shops. To market their products, the company has

marketing executives to collect orders from different dealers and supply the goods

on demand. Company has two units, one at Cochin and other at Kozhikode.

Branches are used to distribute pipes and conduits to market products at northern,

central, and southern districts of Kerala.

Segmentation

Balco pipes are positioned to a premium and high quality segment. So

the price of the pipes is comparatively high than other brand. Quality oriented

customers are the real customers of the company.

Objectives of Marketing Department

To create new customers and make the existing ones satisfied

To build the goodwill of the business through image building activities.



To focus on the four P’s of marketing, ie., place, price, product and

promotion.

To be the first to feel the pulse of the customers and produce goods which

will satisfy their requirements.

To maintain customer loyalty through after sales services, promotional

offers, etc.

The head of the department, manages the marketing activities of the

firm. He regularly keeps a check on the dealings of the various branches

that he is entitled to manage. Based on the branch reports, the marketing

manager can take decision based on:

Sales forecasting

Sales proceeds follow-up

Complaint handling

Promotion decisions.

Promotion Policies:

(1) In the case of products:

Sales promotions, a key ingredient in marketing campaigns, consists

of a diverse collection of incentive tools, mostly short term, designed to

stimulate quiker.

In the case of dealers

The company provides incentives to the dealers and also provides

discounts at the time of purchase.



Based on the nature of the product, after sales service is provided to the

dealers.

The company offers replacement facilities after checking the products.

It provides credit sales to dealers for a period of 15 years.

Clients

Amrutha Institute of Medical Science, Ernakulam.

Amrutha Institute of Science & Technology, Coimbatore.

Gokulam Medical College, Venjaramoodu SP Hotel Project.

Bharath Sanchar Nigam Ltd (BSNL)

Public Works Department, Govt. of Kerala.

Central Public Works Department.

Muslim educational Society.

Indian Railways – Integral Coach Factory.

ISRO

Technopark.

…. And more

Pricing Strategy

Price policy of the company set as a premium. It is because of high quality products.

Therefore, its price is considerably higher than others price.

Price of electric conduits ranging from Rs 15 to 50

Price of water pipes ranging from Rs 15 to 380



Sizes of electric conduits are the following;

16mm, 20mm, 25mm, 32mm, 40mm, 50mm, 63mm.

Sizes of water pipes are the following;

16mm, 20mm, 25mm, 32mm, 40mm, 50mm, 63mm, 75mm, 90mm, 110mm

Price of solvent cement is the following;

For 100 ml Rs 36.50

For 250 ml Rs 67.00

All payments will be drawn in favor of Solve Plastic Products Pvt. Ltd. by

DD or account payee cheque payable at Punalur. Credit period allowed for

transaction is one month.

Product Strategy

Company has different products for plumbing and electric conduits

pipes ranging from 16mm to 110mm size for small household to big industrial

concern. Company can give their products in different colors as the customer

demands. Different colors are yellow, black, brown, green etc.

New Product Strategy

Company’s products are PVC pipes, conduits, bends, and solvent

cement. Among these, the company’s new products are PVC bends and solvent

cement. These are produced due to the increasing demand for bends and solvent

cement.



3.4 PURCHASE DEPARTMENT

STRUCTURE OF PURCHASE DEPARTMENT

The purchase manager heads the purchase department and he leads

the assistant purchase manager. Under the assistant purchase manager, there is a

quality controller and lab assistant.

The production department’s personnel control the purchase

department. Purchasing is a managerial activity, which goes beyond the simple act

of buying and includes the planning and policy activities covering a wide range of

related and complementary activities. This includes research and development

strategies required for the proper selection of source from which those materials

may be bought, the follow up to ensure proper delivery, the development of proper

procedures, methods and forms to enable the purchase department to carry out the

established policies, etc.


PURCHASE MANAGER

ASSISTANT PURCHASE MANAGER

QUALITY CONTROLLER

LAB ASSISTANT CLERK


The purchase department of Solve Plastic Products Pvt. Ltd. acts

according to the needs of the production department and in consultation with the

accounts department for the release of funds.

Objectives of purchase department

To pay reasonably low prices for the best products obtainable.

To keep inventories low i.e. it should be maintained at a level consistent to that

of production requirements.

To develop satisfactory sources of supply and maintain good supply with

them.

To secure good vendor performance including proper deliveries and

acceptable quality.

To locate new material sources for smooth production.

To achieve high degree of co-operation and co-ordination with the other

departments in the organization

The purchase department is divided in to 3 parts

Raw materials stores

Engineering stores (electrical suppliers)

Finished goods stores

As and when the materials are exhausted, the production department

intimates the same to the purchase department.



The accounting used in the purchase department is material cost accounting.

It deals with the cost of materials used in manufacturing activities. This kind of

accounting procedures ensures; Necessary records are maintained to provide

information relating to ascertainment of material cost and its control.

Materials are purchased at competitive prices.

Investment made in materials kept at minimum.

Materials are available for production with minimum interruptions.

Material losses are properly accounted

The company purchases its materials with the selected suppliers and finalize

upon a price after negotiation. This price is termed as basic purchase price on

additions and deductions are made to arrive at the material cost.

Once the requisite materials are received, storing, which is also an important

function has to be looked upon. For this, proper stores management is necessary

so as to handle the materials effectively and efficiently.

Since the company is ISO certified, the raw materials used should have

the required quality. Inventory control and warehousing are the major functions of

the production department. Plant has 100% utilization of resource. The demand

exceeds supply due to lack of funds, Balco is notable for plant expansion.



3.5 PRODUCTION DEPARTMENT

STRUCTURE OF PRODUCTION DEPARTMENT

Under this structure, production manager heads the production

department. He is assisted by quality controller, supervisor, lab assistant etc. Raw

materials used for the production of PVC pipes are PVC resins, stabilizers,

colors, lubricants, calcium carbonate etc. Raw materials for solvent cement are

PVC resin cyclo hexatone, tetra hydro furan etc. The main suppliers of the raw

materials are Reliance, Chemplast, and Finolex etc.

This department is the back bone of the company and more number of

employees work in this department. Production is the process by which raw

materials and other inputs are converted in to finished products. Production refers

to the creation of tangible as well as intangible goods. Production management

refers to the application of management principles to the production function in a

factory. In other words production management involves application of planning,


PRODUCTION MANAGER

QUALITY CONTROLLER

SUPERVISOR LAB ASSISTANT

OPERATORELECTRICIAN


organizing, directing, and controlling of production process. The proper

implement of these management functions in production process will implement

continuous flow of production. Solve Plastic Products Pvt. Ltd’s production unit

produces high quality products, which undergo various stringent quality control

tests. They used advanced technology for producing goods.

Objectives

Production is an organized activity in a manufacturing organization. Solve

Plastic Products Pvt. Ltd’s production department sets certain important objectives

as follows.

Maximum production with high quality and quantity.

To maintain an effective quality management systems with the

active environment of all employees with an increasing sales by 5%

in a year and customer satisfaction level with not be less than 80%

in the FY2008-2009.

Ensure timely delivery of products.

To strive for continual improvement.

Ensure proper implementation of manufacturing process.

Records of Production Department

Log sheet

Processing parameter

In process inspection.



PRODUCTION PROCESS


MIXING

COOLING

SEWING

HOPPER

BARREL

DYE AND MANTLE

WATER TANK

CATER PILLAR

CUTTER

STENCILING


The production process of PVC pipes is called Extrusion, the process is fully

automated. The first process of extrusion is mixing. It includes mixing of PVC

resins, and other ingredients are heated at 110 degree Celsius and mixed in the

mixing unit. Particles. Sewed compound is send to hopper and then to barrel.

Then the compound is moved through die and mantle to make the shape of the

pipes of different sizes. Then the pipe is dipped in water tank cool and then it is

vacuum sizing to create the pressure balance.’

Caterpillar is used to increase or decrease the speed of the output. If

increase the speed of the caterpillar production speed also increase. Cutter is used

to cut the length of pipe as 3 meter in the case of conduits and 5 meter in the case

of water pipes. Stenciling, it is the process of putting brand name and logo of

pipes to avoid duplication. Pipes are packed in bundles of 30 pipes for 63mm

pipes and to 300 pipes for 20mm pipes.

Production capacity

Production capacity of the factory is 135 tons per day. But they can able to

produce only 120-125 tons per day.

Inventory management

Raw materials are purchased from reliable vendors. Before production, the

quality control department checks products. For purchasing, the company

evaluates the suppliers based on quality, price, credit period, promptness of

supply. Inventory involves raw materials, work in progress and finished goods.

Raw materials purchased are stored in the company warehouse to avoid damages.



SWOT ANALYSIS OF THE COMPANY

A company and its performance can be analyzed in many aspects. One

of the best possible ways is the method of SWOT analysis. In this we list out the

Strength, Weakness, Opportunity, and Threats of the company. Moreover the

saying is like to build on your strengths, to reduce your weakness, utilize your

opportunity and workout on your threats.

The aim of conducting a SWOT analysis is to isolate the key issue

which would be important in the future for the organization. Every successful

firm’s success lies how it implements the outcomes of SWOT analysis. The

SWOT analysis of Solve Plastic Products Pvt. Ltd. is as follows.

4.1 STRENGTHS

The goodwill of the company

Goodwill is an intangible asset and a non cash asset also. A high

goodwill always brings in benefit to the company in form of mouth publicity and

customer loyalty. Balco holds a high goodwill among people.

High brand value

The supreme quality of Balco pipes has turned it into a product with high

brand value.

Largest manufactures

Balco are the largest manufactures of the electrical conduits in Kerala.



The product

The products made from resin are eco-friendly product. As the products are eco-

friendly product the company has a good image. In the market, there is high demand for

these products. The biodegradability of the product makes a distinction from other floor

coverings.

BIS, ISI, and other various certifications

These certifications are having manifold effects for the company. They

help in giving out a good image of the company, and act as a psychological factor

for the customers in selecting the product. It is seen tendencies that people have

willing to pay for a product having such certifications.

Clients’ base

Many of the well-distinguished organizations have satisfied with the use of

the Balco products. This gives the company to get more clients from different

parts of the country. The clients include Amrita Institute of Medical Science,

BSNL, SP Hotel Projects, Southern railway etc.

Other factors

The Solve Plastics Products Put. Ltd, in the pipe industry is more. So the

company has a good public relation. The company is certified by ISO 9000-2001

so the customers have a good image about the company. The company has

adequate facility to meet the demand for all pipe products.



4.2 WEAKNESS

Storage

At present, the company is having a less storage facility of both the raw

materials and the products. PVC Resin, which is the major ingredient for the pipe

manufacturing, can be purchased and stored in very at times when the price

decreases.

Research and Development

The company at present does not have a well efficient research and

development department. They require a constant up gradation in the products to

maintain the pulse.

Employees Satisfaction

This is mainly due the inefficient treatment of the workers. Manpower is

the most valuable asset of a firm. So the management must maintain good relation

with employees and help to reduce their problems. The company’s HR department

should look after the human resource.

Labour turnover

The company is facing a shortage of workers in the factory and

their attrition rate is high.

Quality control requires a huge investment in time and man power, this

involves a considerable lead time before the products are approved for

marketing.



4.3 OPPORTUNITIES

Development of the Economy

As mentioned early if Indian economy develops faster it can result in

improving the sales figures. In China the per head use pipes is four times than that

of India. As we know, India is now developing with same rate of China, they can

hope for more sales. In addition, the concept of nuclear family has now leaded to

the more buildings and flats, which in turn is an advantage to the company.

Educated Society

Kerala is a state famous for its 100% literacy. People are now becoming more

conscious about the products they purchase. They now look for brand and quality.

Balco thus has more scope in coming years. There is also a shift from the concept

of a more quality product rather than buying a low cost product.

Spreading out the Network

The company is spreading its business into other undetached areas of Kerala

by improving the sales network.

Products Diversification

As the name Balco has already created a brand image, the company can go for

more products diversification in the electrical segment under the name Balco.

International market

Now in the International market the demand for floor PVC pipes is

increasing. The company is now setting up a new factory at Encase in Tamil Nadu

with the aim of catering the increasing demand for PVC pipes.



4.4 THREATS

Price rise of fuels

The continuous rise in the price of fuel is a great concern for the

company. As we know the whole, production and distribution can take place only

with enormous transportation. Price rise of fuels affect the company in two ways:

The price of raw materials increase and

The transportation of finished goods also becomes costly.

Inflation

Inflation is always going to have a bad effect on the sales figure of the

company. As we know during inflation, there will be a temporary hold.

Shortage of skilled workers

The company is facing shortage of skilled workers in the factory. The

situation may get worse as they are able to find jobs abroad.

Competition

As we know, more and more companies are coming into this field and

they are trying different strategies for placing their product. For Balco in the

conduit segment it is of less worry but in the case of water pipe segment, it is a

matter of concern



The existing competitors and forthcoming competitors

The profit margin of the company is also reasonably good. This would

also attract new companies into this field.

The major competitors of the company are V-Guard, Hycount,

Kelachandra, Finolex, Shakthiman etc.

Summary

Through this study, the entire history and the present position of

Solve Plastic Products Pvt. Ltd. is covered in – deapth. The functioning of the

company in terms of the organizational herarchy, the departments, the products

its produces, etc is given great importance.

Finally the SWOT analysis gives an overall view of the strengths,

weakness, opportunities and threats of the company. It also emphasizes on how

threats can be transformed into potential opportunities.



5.1 FINDINGS

Quality is the main objective of Solve Plastics Products Pvt. Ltd.

Management of the company includes well-experienced persons.

There exist a good relation between society, management and employee.

Workers fear of loss of jobs and hence resist modernization of plant.

Wage system is fair in the company.

Workers are not satisfied with the safety measures of the company.

Production capacity of the present plant is limited.

The company has a better waste management and recycling system.

Western Europe became the driving force behind the implementation of plastic pipes after the Second World War.

The pipe industry is booming.

Due to successes in local market, its brand image will help it to acquire the international market.

It tries to integrate the company policies with human efforts.

Inventory control and warehousing are the major functions of the production

Department.

By all means, they are in a position to go ahead with the expansion plans.

Since the company is ISO certified, the raw materials used should have the required quality.



5.2 SUGGESTIONS

Research and Development Department

An effective team dedicated for the research and development

can bring in unexpected growth to the company. It is highly required to keep in

watch the change in market pulse, technical up gradations, bring in new marketing

strategies, developing in new products, etc.

Expansion of Factory to Different Districts

At present, the factory has taken one more factory in

Edamon other than Punalur. It will be beneficial for the company if they expand

their factories into other districts, say Alappuzha or Eranakulam. Since the

production from that place can be dispatched to Trissure, Kannur, etc.

Product Caption

The brand Balco will be more effective if it is promoted with

a constant caption.

Introducing New Technology

The company is adopting a new machine with new

technology. It leads to effective production without waste. If the printing process

is automated, it will reduce labor cost.



Training Program to Employees

The company should providing proper training to their

employees in accordance with latest technologies. The company should conduct

attitude and morale surveys in order to check the performance or the employee turn over,

absenteeism etc.

Recreational Facilities

The company should try to improve the recreational facility

such as canteen services.

Personnel Research Program

The company should improve personnel research

programmes to keep good human relations and labour management relations.



CONCLUSION

The one-month organization study in Solve Plastic Products Pvt. Ltd. has

helped me in several areas like understanding the various levels of an

organization, understanding its work culture, difficulties in maintaining of the

business etc. This one month had added immense knowledge and it was amazing

to be in a prestigious organization like Solve Plastic Pvt. Ltd.

The various departments function in a coordinated manner there by

making the internal functioning move at its best. Also the employees are quite

satisfied with the work environment they are provided with. Today the company is

aims at being Rs.100 core businesses, keeping the customer, and quality in mind.

It is doubtless that the quality and the immense effort followed by the

company will definitely take this brand into new heights. In few years, we can

hope that the name Balco will be a nationally admired brand.



BIBLIOGRAPHY

Book Resources

Potty L.R: ‘Research Methodology’, Yamuna Publications, Seventh

edition.

Kotler Philip & Armstrong Garg, Principles of Marketing, Eighth

edition.

Kotler Philip, Keller Lane Kevin, Marketing Management, Twelfth

edition published by Hall of India Pvt Ltd 2006.

Office Resources

Office documents & financial reports

Web Resources

Www. balcogroup.com


Documents

BALCO