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

    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

    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

    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

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

    4 Precious

    Fragrance

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

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

    5 Precious

    Lavender

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

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

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

    7 Precious Three in

    One

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

    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

    20 Sticks Hexagonal 1 Unit - 12 Packets 100 Units 30.000 49 x 62 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