hem agarbatties

7/28/2019 Hem Agarbatties

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A PROJECT REPORT ON

MANAGEMENT OF SMALL-SCALE INDUSTRY

NAME: MIHIR H. GOGRI

CLASS: S.Y.BMS

ROLL NO.: 13

SUBJECT: MANAGEMENT OF SMALL-SCALE INDUSTRY

SUBMITTED TO: PROF. MR. J.C. SABOO

DATE OF SUBMISSION: 31ST JANUARY, 2004


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SYNOPSIS

This project is an attempt to analyze and summarize the Industrial Visit i.e., what

all I came to know about the industry visited, how do they function and as a

management student what all I have learnt from the industrial visit specially in

relation to management of small scale industries and other subjects.

Before coming to the actual matter from the Industrial Visit, I have first introduced

the Industry visited, in brief in order to know what these learnings have made

the company achieve.


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ACKNOWLEDGEMENT

We would like to gain advantage of this opportunity and show gratitude

towards Prof. Mrs. Chitra Madam for her direction and assistance ateach and every point of our project.

We would also like to express our gratitude towards those who provided

us information in completing this project. We express our deep sense of

gratitude towards them for sharing there valuable thoughts with us and

providing us a path on which we could make our project.


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INDEX

Sr.

No. Particulars

Pages

From To

1. General Information

2. Production Management

3. Product Range

4. Marketing Management

5. Financial Management

6. Human Resource Management

7. Learnings


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General Information

Name of the SSI: - HEM CORPORATION

Office address: -G-5, Riddhi siddhi Apartments, Mithagar

"X" Road, Mulund-E, Mumbai - 400081

Factory Office

Phone 91-22-5673676 91-22-5611063

Fax 91-22-5624246 911-22-5649415

E-mail Nil [email protected].

Name of the promoter: - Mr. Uday shah.

Status: - proprietor.

Educational qualification: - B.com.

Date of birth: - 25/8/1958.

Age at which, he started the business: 23 years

Experience before starting the business: - He used to help his father their

family business.


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Family background: - Business sole trader.

About the Company:

Hem manufacturers of Precious Chandan and a very special range of

incense sticks welcome you to experience bliss of a spiritual order. Each and every

product is indeed a summary of the great tradition that includes self control and

makes all your meditative and spiritual trips smooth.

Hem Corporation was established in 1981, with a large capacity

manufacturing set up in Mumbai (Bombay) & Bangalore India.

Today we are not only in a position to service existing demands but also

geared to meet new requirements and customize products. Besides the company

has a well-knit distribution network that ensures that all our products and

variations reach national and international markets on time in good condition.

Today we have a over 50 different fragrances and processes to add on new ones, as

well as to meet customized demands. Hem Corporation employs meticulous non-

mechanized hand-rolled method to consistently produce high quality incense

sticks.

About the product:

From times unknown agarbattis, also called incense sticks / prayer sticks are known to

elevate moods. These sticks are reputed to aid meditation. However agarbattis are mainly

associated with providing peace tranquility and of course freshness as it imbibes the essence of

many traditional ingredients known to provide a soul soothing effect.


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Activities of the SSI in brief:

1. Manufacturers of Precious Chandan and a very special range of incense

stick and perfumes which are used in day to day life. At HEM

CORPORATION incense sticks are hand rolled, they employ strict

quality control checks to ensure high quality of our products and

packaging both in technical and design appeal.

Registered as an SSI: - yes.

Avg. in first 3 yrs. Current

No. of Employees 9-10 40-50

Turn-over in Lakhs 55-60 90-100

Return on Investment 15% 15-20%

Role of promoter in business: -

Mr. Uday Shah himself is the promoter of HEM CORPORATION. He

looks after each and every aspect of management. All the marketing and finance

related matters are looked after by him.

Strengths before 1991:-

1. No intense competition2. Good incentives from government

3. Cost competitive advantage


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Challenges faced after 1991:-

1. Intense competition found in the market

2. Lesser subsidies from government

Strategies to cope up with the challenges:-

1. Forming various chains & links to spread out in the domestic &

international market.

2. Increase selling activity by advertisement, etc.

Future prospects of the business:-

1. To manufacture perfume soaps & others along with incense sticks &

perfumes.

2. Increasing trend of the product in the market & future prospects are

brighter in the particular range.


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Production management

Raw materials which require are: -

a. raw sticks,

b. chemicals,

c. essential oils,

d. Resinoids etc.

Sources of raw materials:-

1. Sticks are basically imported from Karnataka.

2. Chemicals are usually local or imported.

Production process:-

Firstly Raw materials are brought to the factory, and then the sticks are

examined, and chemicals are tested for quality assurance in the lab. Perfumes

are then prepared in the lab & the raw sticks are dipped in to the perfume of

different flavors as per requirement. After then, the sticks are kept for drying

and after they get dried up they are then sent to the packing department for

packing and they are packed in to various packing. Then they are packed into

bigger boxes are taken to the store house. And finally from there they are ready

to dispatch in the market.

Random inspection is carried out in the production process.

List of Machinery:-

1. Electronic Weighing scales which are required for weighing of incense

sticks & perfumes.

2. Dryers for drying of incense sticks.


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Packing materials:-

1. Corrogated boxes

2. gelatin

3. Velvet papers.

R & D Process

A trained workforce led by equally competent management along with stringent

quality control checks like raw materials selection, raw agarbatti checking, burning

checks, stick selection and so on ensure that high quality standards are the

hallmark of every single Hem product. Commitment to quality, on-time shipments

and customer service rendered by our qualified and experienced export division

add value to our brands.

At Hem Research and Development is an on going process. Since our incense

sticks are hand rolled, we employ strict quality control checks to ensure high

quality of our products and packaging both in technical and design .


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Product Range

Sr.

No.

Brand Name No. of

Sticks /

Weight

Packing Unit Units Per

Carton

Weight

Aprox.

Gross

Carton Size In

Centimeters

1 Precious

Chandan

25 Gms Velvet Roll 1 Unit - 12 Rolls 50 Units 22.000 42.5 x 32.5 x 45

08 Sticks Square 1 Unit - 25 Packets 50 Units 21.000 54 x 43 x 43

18 Sticks Regular 1 Unit - 12 Packets 50 Units 19.000 63 x 48 x 40

20 Sticks Hexagonal 1 Unit - 6 Packets 100 Units 30.000 49 x 62 x 53

100 Sticks Economy 1 Unit - 12 Packets 20 Units 30.000 52.5 x 47.5 x 40

2 Precious Gulab 25 Gms Velvet Roll 1 Unit - 12 Rolls 50 Units 22.000 42.5 x 32.5 x 45




80 Gms Economy 1 Unit - 12 Packets 20 Units 27.000 52.5 x 47.5 x 40

3 Precious Mogra 08 Sticks Square 1 Unit - 25 Packets 50 Units 17.000 45.5 x 45.5 x 45.5



80 Gms Economy 1 Unit - 12 Packets 20 Units 27.000 52.5 x 47.5 x 40

4 Precious

Fragrance



5 Precious

Lavender



6 Diwali Special 20 Sticks Hexagonal 1 Unit - 6 Packets 100 Units 30.000 49 x 62 x 53

7 Precious Three in

One


8 Ornamental 20 Sticks Hexagonal 1 Unit - 6 Packets 100 Units 30.000 49 x 62 x 53

9 Precious Mogra

Special

25 Gms Velvet Roll 1 Unit - 12 Rolls 50 Units 22.000 44.5 x 33.75 x 48.25


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10 Precious Lily 25 Gms Velvet Roll 1 Unit - 12 Rolls 50 Units 22.000 42.5 x 32.5 x 45

11 Hem Champa

Masala

Hem Champa

10 Sticks Small Box 1 Unit - 12 Packets 50 Units 20.000 62 x 47 x 53


12 Diwali Spl.

Masala

08 Sticks Pouch 1 Unit - 25 Packets 50 Units 23.000 48.5 x 34 x 49.5

13 Rosemary 08 Sticks Square 1 Unit - 25 Packets 50 Units 21,000 54 x 43 x 43

14 Benzoin 08 Sticks Square 1 Unit - 25 Packets 50 Units 21,000 54 x 43 x 43

15 Nutmeg 08 Sticks Square 1 Unit - 25 Packets 50 Units 21,000 54 x 43 x 43

16 Patchouli 08 Sticks Square 1 Unit - 25 Packets 50 Units 21,000 54 x 43 x 43

17 The Sun 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 54 x 43 x 43

18 The Moon 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

19 Holistic 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

20 Frank Incense 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

21 Forest 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

22 Myrrh 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

23 Cinnamon 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 23,000 48.5 x 34 x 49.5

24 Clove 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 23,000 48.5 x 34 x 49.5

25 Tangerine 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

26 Strawberry 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

27 Green Apple 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

28 Pineapple 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

29 Melon 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

30 Rasberry 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

31 Coconut 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

32 Peach 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5

33 Mango 08 Sticks Pouch 1 Unit - 25 Packets 50 Units 21,000 48.5 x 34 x 49.5


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RegularPack

SquarePack

HexaPack

VelvetRoll

EconomyPack

TallBox
http://www.hemincense.com/Noble1.htmhttp://www.hemincense.com/Floral1-Aradhana.htmhttp://www.hemincense.com/Aura1.htmhttp://www.hemincense.com/Precious.htm


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Pouch

Pack

A heady

blend ofwoody and

mossy

scents, this

incense

recreates

natures

leafy

freshness Hexa

Pack

Sums upDiwali. The

festival of

lights, setting

your life a

glow with

festive

splendor.

Pouch

Pack

Reputed for its

aroma-

therapeutic

properties, this

incense

imbibes

unparalleled

healing power.


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Pouch

Pack

Experience

the spiritualsolemnity

through this

fabled biblical

incense.

Pouch

Pack

Prana means life.That is why; this

incense recharges

your mind with

life and energy.

Pouch

Pack

Get enchanted

by the aura ofits sublime

divinity.

Square Pack

Enrich yourself with unsurpassed rosy fragrances of hand-picked blood red roses.

Square Pack

An idea that is filled with the essence of Lavender that has never failed to refresh.

Square Pack

Add some tang to life with this presentation created from painstakingly extracted

oil of the lemon scented Verbena.


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Square Pack

A derivative of twigs and leaves, its strong incense that is warm and alluring.

Square Pack

Feel the mystical richness of acclaimed Patchouli incense. It is a must for all

special occasions.

Square Pack

An idea thats high on spice, it is also rich in tropical mysticism.

Square Pack

Enticing Almiscar is sure to take you in its stride with its mellow and smooth

aroma.

Square Pack

Indulge in the aroma of biblical times and invigorate your senses with delight


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Valued medicinal

properties of this

spice can be imbibed

as incense thats pure

and precious.

In its renewed

form, this

treasured eastern

spice is crafted to

pep you up.

Pouch Pack Pouch Pack

Pouch Pack

Light up your life with

the universal energy

source captured in this

incense and recharge

yourself.

Pouch Pack

Experience cool

swirls of enchantment

of another world,

authentic only to the

moon the symbol of

blissful tranquility.


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Submit yourself to thetranquil fragrance of

luscious juicy

strawberries.

Experience the

tingling

freshness ofgolden

tangerine move

you into

ecstasy.

Pouch Pack Pouch Pack

Let the velvet embrace

of this peach incense

overwhelm you.

The juiciest fruit of

the tropics creates the

riot of soul soothing

aroma.


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Treat yourself to the

refreshing fragrance of

hand-picked melons.

Invade the realms

of passion with the

fulfilling aroma of

the king of fruits.

Evoke peace in you

with the heavenly

incense made of the

most aromatic Green

Apples.

Allow its full

bodied sweet scents

to you on a trail of

bliss.


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Fruit of life as

coconuts are better

known, this incense

captures its spirit

taking you on

different high.

Relive the

happiness over and

over again with the

delicious sweetness

of this Vanilla

incense.

Marketing Management

Marketing is one of the most important activities of any enterprise which

involves production. It refers to a series of activities such as planning of products,

its physical distribution through trade channels, advertisement and public relations

etc. It is regarded as a system that facilitates satisfaction of customers needs.

Product must have a potential market in the sense that they must be adapted to the

market.

The basic marketing strategy of HEM CORPORATION comprises of

product planning, promotions, pricing and distribution. Depending upon the

product, the market and the environment conditions, the intensity of usage of

the activities differs.


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Marketing manager does the Marketing of the product & along with his team

of persons does the Marketing of the product, a newspaper adds, hoardings,

participation in exhibition, incentives to sellers, customers & consumers.

Geographical coverage: Hem products are immensely popular in India and

several countries like USA, Canada, South American Countries, Europe, Australia,

and ASEAN countries, Japan, Middle East and African Countries.

Reasons for the popularity of their brands are many. They have a wide range of

fragrances and the ability to develop customized once.

Commitment to quality, on-time shipments and customer service rendered by their

qualified and experienced export division add value to our brands.

Product planning consists of the decision to which variety of product is to be

exported to which country. Since there is a range of products, it is essential to

know the demand for those products is more. Product planning is done with the

consideration of the preferences of customers abroad.

Promotions:-the companys promotions basically take place in the trade fairs,

exhibitions.

Pricing Strategies: the cost of transportation, tariffs is added to the factory price

of the product. Because of the cost escalation varies from country to country. They

use a standard mark-up of its cost everywhere.

Distribution Channels adopted are:-

1. Manufacturers - consumers.


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2. Manufactures stockists retailers - consumer.

3. Manufactures retailers - consumer.

1. Manufacturers consumers: company sometimes sells its products through

direct selling. That proves to be beneficial as it earns more because of it does not

have to spend upon the transportation.

2. Manufactures stockists retailers consumer: the company has its proper

chain of distribution.

3. Manufactures retailers consumer: the company has its own Retail outlet

shop from which they directly supply their finished products to the consumers.

Product Differentiation:

The company has been able to maintain the high quality of products. They

procure the raw materials from the domestic suppliers. It is the user of the domestic

supplies as well as foreign supplies. The company procures the raw materials from

the overseas suppliers which results in better demand by foreign customers. The

company is also targeting to provide the customers with range of products with

various flavours, fragrances etc

Price Discount Strategy:

To face the attack by the competitors, the company sometimes, sells the

product at lower prices. However, while doing that, it sees that the price not get too

low, in order to avoid the losses.

Superior-goods strategy:


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Company often follows this strategy. Under this basic strategy it imports the

raw materials from the foreign markets which are of the superior quality.

Since HEM CORPORATION is an exporting unit, it has to face lot of competition,

not only at the domestic level but also at the international level.

FINANCIAL MANAGEMENT

Financial management is a very important part of any organization. The

neglecting towards it may cost very badly for an organization.

The sources of short-term finance include:

a. Sundry creditors

b. Borrowings from banks

c. Borrowings from informal sources

d. Advances received from customers

The sources of long-term finance include:


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Owners capital and deposit

HUMAN RESOURCES MANAGEMENT

Every organization whether large or small is composed of people- the human

resource who come from different walks of life and who are different in their

outlook and understanding. Human resources are vital to the success of any

organization. Various initiatives have been taken to upgrade competence and skills.

Development of human resources is needed by any organization if it wants to

succeed in the fast changing business environment. Organization can prosper and

progress only through the creative efforts and competencies of their human

resources.

HEM CORPORATION gives lot of importance to its dedicated employees.

Following are the different practices regarding human resource planning followed

by the HEM CORPORATION.

Recruitment:


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This enterprise follows the informal system of recruitment for the workers.

The workers required in the factory premises are not interviewed at all. Since the

enterprise is not only engaged in manufacturing but also in exporting, the staff

level employees are interviewed.

Basis of selection:

As far as the factory premise is concerned, not only male but female

workers are also recruited. As far as the factory premise is concerned the female

workers are preferred more. Following are the required qualifications and other

elements which are considered for selection:

Worker: Nil

Supervisor: Graduation

Administrative assistant: Graduation

Export Executive: Exports knowledge

Accountant: B.com

Placement:

Since there is no special knowledge required form the workers side the

placement system is absent.

Training and Development:

When new worker is recruited he is not given any sort of training.

Supervisor is responsible for observing whether the work is properly going on or

not.

Remuneration:

The workers are paid wages on daily basis. Whereas staff level employees

are paid on salary basis. Following are the wage rates for employees:


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Worker Rs.70/day

Staff level employee: Rs. 2500-5000/Month

Motivation:

Most of the times money is used as motivating element. Workers are

rewarded in terms of cash and kind.

Communication:

There is good communication amongst the workers. The communication

between staff members and is also good. No special channel of communication is

used. Face to face communication is there between the workers and the supervisors

as supervisors spend lot of their time near the working place. There is proper

coordination between all the members of the enterprise. Overall there is a proper

communication system as both upward and downward communication is there.

Safety and Health:

All the measures ensuring the health of the workers are present. There are no

harmful operations in the factory premise as very few machines are used. All the

facilities regarding drinking water, lighting, humidification, urinals, latrines,

spittoons are there in the factory.

Medical services


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Learnings from the visit

After this visit I think that managing a small-scale industry is not an easy

task. One very important thing which I learned is that in this modern world I

have to be proactive in all aspects if I want to survive with the best. This

funda applies to all parts of life. I learned that planning means planning

each and every thing in connection to my organization i.e., planning the

strategies of business, than the finance / my money power and not to forget

my man power and others.

I have also learned that for organizing any organization well, I have to

organize the individuals in the organization well, for which I have to first of


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all have the right individuals in my organization and place the right one at

the right place.

G-5, Riddhi siddhi Apartments, Mithagar

"X" Road, Mulund-E, Mumbai 400081

Tel 91-22-5611063, Fax: 911-22-5649415

Date: 15/01/2004

To Whomsoever It May Concern


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This is to certify that, Mr. Mihir H. Gogri, the student of 2 nd year-B.M.S. from

Ramniranjan Jhunjhunwala College; Ghatkopar has visited our establishment on

07/01/2004.

During the visit he took the keen interest in our manufacturing process, our export

activities and management of our establishment. We found him sincere, honest and

hardworking.

We wish him all the best in all his future assignments.

For HEM CORPORATION

Mr. Uday Shah

Proprietor

hem agarbatties

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