1

"A Report On Market Research On

Ceramic Tiles Industry of Morbi And

Market Analysis Of Favourite Plus

Ceramic PVT. LTD."

Prepared By

Darshan M. Patadia B. B. A. LL.B. II’nd semester

Roll No. 07

Academic Year

2012-2013

Submitted To

Department of law

Saurashtra University Rajkot

Guided By

Prof. Kruti K. Mehta

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DECLARATION

I, the undersigned MR. DARSHAN M. PATADIA, student of Second

Semester B.B.A, LL.B hereby declare that the project work presented in this report

is my own work and has been carried out under the supervision of Kruti K. Mehta

professor of Saurastra University Law Department, Rajkot.

This work has not b een s ubmitted previo us ly to any other

univers ity for examinatio n or any other purpose.

Date:

Place: Rajkot

-----------------------

(Darshan M. Patad ia)

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PREFACE

Today, in almost all fields, management has become an integral

part. We need to manage over daily routine. BBA LLB, the stream o f

management teaches us and helps us to app ly it practic ally.

In this pro ject work, I have carried all the areas of management

like marketing, production, personnel, and finance. One needs to keep

equally balanced all the d epartments to run the entire company

smoothly. I have thus tried to prepare this pro jec t taking into

consideratio n all the areas and aspects of the company.

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ACKNOWLEDGEMENT

First I would like to thank Saurastra University Law Department for providing

me an opportunity to flourish my knowledge apart from theory. I would also thank

Professor Kruti K. Mehta, who has constantly guided me for the project.

I am thankful to owner of “Favorite Plus Ceramic Wall Tiles Pvt. Ltd.” Vijay

Becharbhai Rangpariya for granting me permission to prepare a report on their firm

and also for their excellent guidance with complete interest. I am also thankful to

the owners, whole staff of this industry for their valued co-operation and helped me

to complete this project on the industrial visit. I am also thankful to my elder sister

for guiding me for this project.

Date:

Place: Rajkot

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(Darshan M. Patad ia)

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INDEX

Chap no.

Particulars Page No.

1 Collage Certificate 2 Company Certificate 3 Declaration 2.

4 Preface 3.

5 Aknoowledgement 4.

6 Introduction ( Ceramics) 6.

7 General Information 7.

8 Production Department 15.

9 Marketing Department 26.

10 Analysis 37.

11 Future Plane 39.

12 Suggestions 41.

13 Conclusion 43.

14 Bibliography 45.

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INTRODUCTION

HISTORY OF CERAMIC

The word "Ceramic" has originated from the Greek word, "Keramos", which

means pottery. It also relates to an ancient Sanskrit word whose root meaning is “to

burn,” but it is predominantly used to indicate "burnt stuff". Almost 10,000 years

later, with the establishment of settled communities, tiles were manufactured in

Mesopotamia and India. The first instance of functional pottery vessels being used

for storing water and food is thought to be around 9,000 or 10,000 BC. Clay bricks

were also made around the same time.

The ceramics industry in India came into existence about a century ago and

has matured over time to form a industrial base. From traditional pottery making, the

industry has evolved to find its place in the market for sophisticated insulators,

electronic and electrical items. Over the years, the industry has been modernising

through new innovations in product profile, quality and design to emerge as a

modern, world-class industry, ready to take on global competition.

Though there are a number of large companies in the ceramics sector, small

and medium enterprises (SMEs) account for more than 50 per cent of the total

market in India, offering a wide range of articles including crockery, art ware,

sanitary ware, ceramic tiles, refractory and stoneware pipes among others. Most of

the players are grouped together in clusters.

Over the last two decades, the technical ceramics segment has recorded an

impressive growth propelled by the demand for high-alumina ceramics, cuttings

tools and structural ceramics from the industry. Overall, the Indian ceramics industry

has emerged as a major manufacturer and supplier in the global market.

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GENERAL

INFORMATION

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Project At Glance

Name of the Firm Favourite Plus Ceramics Pvt.

Ltd.

Year of Estab lishment 2008-2009

Form of Organisatio n Private Limited

Size o f Organis ation Med iumScale, Large Scale

Locatio n of Offic e 8-ANatio nal Highway,Sartanpar Dhuva(Gujarat)Ind ia.

Locatio n of F actory 8-ANatio nal Highway,Sartanpar Dhuva(Gujarat)Ind ia.

Phone Number Office +91-2828-295262

Phone Number Factory +91-2828-295263

Fax Numb er +91-2828-295264

E-Mail info@favouritetiles.com

Web S ite www.favo uritetiles.com

Regis tered Certific ate No. U-26933GJ2009PTC057500

Sales Tax No. 24092201344

CST No. 24592201344

Exc is e Regis tratio n No. AABCF 2034RXMOO

Product WALL T iles

No. of Emp lo yees 76

Bankers Bank of Ind ia,Morb i

Aud itors Bank of Ind ia,Morb i

Name of Pro moters Shri.Becharb hai Rangpariya Shri Rajeshb hai Bavarva

Shri Vijayb hai Rangpariya Shri Hiteshb hai Shirvi

Board of Directors Mr. Vijayb hai Rangpariya Mr. Hiteshb hai Shirvi

Mr. Manis hbhai Aghara

Investment Approx 12 c rs.

Area Covered 4 Ac res.

Market Natio nal and Internatio nal

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HISTORY & DEVELOPMENT OF

ORGANISATION

The F avo urite gro up is a private limited company which produces

different kinds of things. Each and every unit has got other industries

of its town. It contained when the firm was incorporated, who were the

rais e, what way its purpose, what are the products manufactured by

them, etc.

This gro up all p romoters are mostly from the Dhuva, whic h comes

und er the Dis tric t Rajkot. They incorporated to cultivatio n and they

have good business of cotton and other p roducts in Villag e Dhuva. It is

estab lished in 1984. They started a unit of manufacturing of roofing

tiles under name and style M/s. Sunshine T iles and potteries at Morb i.

They have s ecured mill fro m Bank of Ind ia Main Branch, Mo rb i.

In 1987, they have organis ed another roofing ti les unit at Lilap ur

Road, Morb i under the name and style of M/s. Jaystar Industries.The

workers are very familiar to work in this ind ustry.

In 1991, they have organised another unit of manufacture of nuts

and bo lts of MS and SS at Morb i GIDC und er the name and style o f

Sunshine F asteners.

In 1994, they have started the other products. They manufacture

of ceramic glazed wall t iles und er the name and style of M/s. Favourite

Ceramics.

In 1998, they have also s tarted another industry, und er the na me

and style of M/s. Jayson Ceramics.Looking to the demand of ceramic

floor t iles experienc e in this line is most important and the gro up has

more than 60 dealers network, whic h is necessary to bus iness. So, they

have also started ano ther ind ustry, under the name and style of M/s.

Sunhill Ceramics Pvt. Ltd.

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In 2009, they have also s tarted another industry, und er the name

and style of M/s. Favourite P lus Pvt. Ltd. This industry‟s product is to

manufacture vitrified t iles only.

It is good for them that they don‟t have to find another young

team because it is alread y well equipped with the family members.

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ORGANISATION CHART

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SIZE OF THE FIRM

According to the definit io n given by Government of Ind ia, the s i ze

of the ind ustry can be d ivid ed into three main types.

Small Scale Organisation

Medium Scale Organisation

Large Scale Organisation

If company‟s investment in p lant and machinery is more than 3

crores, it is called large scale o rganisatio n.

The investment o f “Favourite P lus Pvt. Ltd.” in fixed assets is of

Rs. 12,00,00,000.Therefo re, it is coming und er the category o f large

scale organis ation. It also uses manpower, electronic mac hinery and

having more than 76 workers.Its also New Digital Machine.

FORM OF ORGANISATION

According to the form of o rganisatio n, the organis atio n c an b e

divid ed as fo llows :

Private sec tor unit

Pub lic sector unit

Jo int secto r unit

In this firm, it is a Priva te Limited firm.

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LOCATION AND

SITE PREFERENCE

The s ite of this unit is located at 8/A – National Highway, at

Dhuva, whic h is only 18 Kms. away from Morb i C ity. It is in ceramic

zone with numb ers of other c eramic units. It is a main and most

important part of ind ustry has chosen very s imp le and suitab le locatio n.

It p lays a vital ro le for locatio n.

I. Land:-

In Dhuva at Morb i, land and labour are found very cheap, so,

Favourite Wall t iles started at this p lac e.

II. Labour:-

In b ig c ity labo ur cost is very high, b ut in Dhuva at Mo rb i pro vid e

cheap and educ ated skilled labour bec ause of the ceramic zone is

situated.

III. Transport: -

In Dhuva at Morb i is s ituated in ceramic zone, so transportatio n

fac ilit ies are also availab le.

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TIME KEEPING SYSTEM

Time keep ing system is very important as all the workers should

arrive at reporting t ime and start their work immed iately. If they are

irregular than there would b e less outcome and expected target will no t

be ac hieved. Therefore, the wo rkers are given cards in which their

arrival and departure t ime is writ ten regularly and therefo re punctuality

is maintained.

Industry:-

This indus try is running for continuous process i. e. 24 hours. It is

working in 3 s hifts. The timing of the shifts are as under.

08:00 AM to 04:00 P M

04:00 P M to 12:00 Mid night

12:00 Mid night to 08:00 AM

Office :-

Offic e ho urs fo r industry are as under.

08:00 AM to 12:00 Noon

02:00 P M to 06:00 P M

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PRODUCTION

DEPARTMENT

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CONTAINS

1. Introduc tion

2. Raw Mate ria l Availability

3. Raw Mate ria l Use d

4. Inspec tion of raw mate ria l

5. Types of mac hine s

6. Process of produc tion

7. About products

8. Quality Manage me nt

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1. INTRODUCTION

The productio n of a firm is concerned with the creation of a

product or services required to satis fy custo mer needs. In any bus iness,

suppliers are need ed for product or service, it is quite obvious that

activit ies of produc tion system must b e related to the c ustomer demand

or reflected in the continuous flow o f order.

It is the most important department amo ngst the other departments

of an organizatio n. Personnel dep artment, finance d epartment,

marketing dep artment are very much d epended on p roductio n

department.

2. RAW MATERIAL AVALABILITY

Raw materials are the bas ic req uirement for any industry. Raw

materials are converted into finis hed goods after vario us processes on

it.

Raw materials are availab le with help of road ways if purchased

fro m the country. If the materials are purchased from other countries

than it is availab le with help of railways.

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3. RAW MATERIAL USED

List o f raw materials used for pro duc tio n of wa ll ti les

Raw Material Place where it is

obtained

Pots feldspar Rajasthan

Soda feldspar Rajasthan

Quartz Rajasthan

Ball C lay Rajasthan

Ashapura C lay Kutch

Kad appa C lay And hra Pradesh

China C lay Gujarat

Ukraine C lay Import from Europe

STPP Import from China

Body Stain Import from Italy

Solub le S alts Import from China

LPG Madhya Prades h Gujarat

Zircon Import from Australia

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4. RAW MATERIAL USED

List o f raw materials used for pro duc tio n of wall ti les

Raw Material Place where it is

obtained

Pots feldspar Rajasthan

Soda feldspar Rajasthan

Quartz Rajasthan

Ball C lay Rajasthan

Ashapura C lay Kutch

Kad appa C lay And hra Pradesh

China C lay Gujarat

Ukraine C lay Import from Europe

STPP Import from China

Body Stain Import from Italy

Solub le S alts Import from China

LPG Madhya Prades h Gujarat

Zircon Import from Australia

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5. INSPECTION OF RAW MATERIAL

Raw materials are inspected and checked before they are sent to

production dep artment. It is maintained in Favourite P lus as per

guidelines of ISO-9001:2008.

Vario us steps for inspec tion o f raw material c an b e showed as fo llo ws.

Samp ling fro m truck

MC% content

Grind ing

Drying

Powder preparatio n

MC% add itio n

Press ing

Drying

Firing

Loss on ignitio n

Fired co lour

Water absorption

6. TYPES OF MACHINES

90% o f mac hineries used in F avo urite P lus Wall T iles are

imported fro m Japan.

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List of Machineries :-

Weighing hopper

Conveyor

Wader

Ball mill

Stirrer

Bungler

Spray drier

Slip p ump

Silos

Vib rator with magnet

Elevator

Hyd raulic press (h600 mt)

Chilling p lant

Load ing machine

Horizo ntal dryer coo ler box

Glaze line

Unload ing mac hine

Screen printing machine

Compens ator

Head po lishing line

Fast s ingle layer ro ller kiln

Chamfering line

Souring line

Plastic strapp ing machine

Fork lift

Air compressor

Vertical dr ier

Generato rs

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7. PROCESS OF PRODUCTION

Production p rocess is very important p rocess as the produc t

manufactured in the co mpany should satis fy the need of the customer.

The q uality is also to b e maintained and the given target s hould b e

achieved in the given time p eriod. The fo llo wing are the main

production stages.

Proce ssing o f raw mate ria l:-

The first and foremost step to manufacture Wall t iles is batc hing i. e.

feed ing the box with different typ es of clay accord ing to the perc entage

decid ed. Batc hing inc ludes fo llo wing typ es of c lay.

Ukraine C lay 16%

Ball C lay 5%

China C lay 20%

Soda Feldspar 19%

Potash Feldspar 35%

Quartz 5%

Formation of t ile body and dry ing: -

The powd er is taken fro m the s ilos and after s ieving on a vibrato r

fitted with a magnet, it is fed into hoppers of the hydraulic press where

the powder is pressed in the shape of a t ile of spec ific s ize as per the

cavity of the d ie. Green tiles coming o ut of the press are s ent to the

horizontal ro ller d ryer where they are heated to a spec ified temperature

to remo ve the mo isture.

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Pre paration o f de signs and sc ree n printing of t iles: -

In the glaze line and printing sec tion, various typ es of

designs are prepared and printed on the dried t iles b y app lying

colours on the screen printing mac hine.

Firing:-

The tiles thereafter are fed into the fast s ingle layer ro ller kiln in

which the t iles are fired. The kiln has d ifferent temp eratures ranging

fro m 5000C to 1500

0C in d ifferent zones.

Polishing:-

The baked tiles are sub jected to polis h ing by us ing 32 head

polis hing line. The tiles are also s ide c hamfered. Multi finish t iles do

not need polis hing operatio n.

Sorting and Packing:-

The po lis hed tiles are sub jected to quality checking and sorting,

where an operatio n marks out t iles with d efects and d ifferent grades

quality. Different grad es of finis hed tiles are then p acked into d ifferent

types of p acking box whic h are marked accordingly.

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8. ABOUT PRODUCTS

Favourite Plus Wall T iles are manufacturing vitrified t iles having

vario us categories and sizes. They manufacture t iles of different p lain

colours like:

Terry cotto n

Mushroo m

Ruby p ink

Jais almer

Dove gray

Ivory

Jet b lack

White

Aqua marina, etc.

In marb le series, they are having fo llo wing range.

Vogue

Venic e

Valerie

Vixen

Vo lcano

Virgin

Vital

Allun

Arktic,Venus Etc.

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9. QUALITY MANAGEMENT

Quality contro l means checking the q uality, s ize, s hape, capac ity

and usefulness of some o f the samp les selected fro m lo t of the finished

product. If any variatio ns are there than they are to b e corrected or that

useless product is send to scrap yard. A well defined quality

management system satisfying ISO 9001 -2008 quality stand ard and

continual improved.

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MARKETING DEPARTMENT

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CONTAINS

I. Introduction

II. Organization Chart

III. Market Size

IV. Market Segmentation

V. Pricing

VI. Advertisement

VII. Channel of Distribution

VIII. Market Research

IX. Credit Facility

X. Sales Promotion

XI. Export potential

XII. Competitors

XIII. Consumer problem handling

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I. INTRODUCTION

Market is the p lac e where buying and selling is carri ed out by

buyers and sellers i. e. trad ing activity are carried out.

Marketing is a social and management process that invo lves

id entifying unsatisfied needs or wants of the consumers, produc ing

goods or services to satis fy those needs or wants, determinin g

appropriate price, pro motio n and d istributing and maintaining relatio n

with the market.

In today‟s modern area each and every firm gives prio rity to have

a d ifferent marketing department. Marketing invo lves the activit ies

such as advertis ing, pub lis hing, market research, d istrib ution aspect,

sales pro motio n, etc.

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II. ORGANISATION CHART

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III. MARKET SIZE

As per S AKET INDUSTRIAL DIGEST, JUNE 1996, s ize of Wall

t iles is as und er.

The Wall t iles market s ize is estab lis hed at Rs. 525 Crores, where

as floor t i les segment is Rs. 300 Crores. The demand for this t ile is

gro wing at pace of 30%. The productio n capac ity is expected to b ulge

by nearly 5.35 Lacs tones by 1997-98.

IV. MARKET SEGMENTATION

Market segmentation is based upon the market oriented strategies

and p hilosophy segmentation gives spec ial emphas is on the demand s ize

of the market.

“Market segmentation is a method of ac hieving maximum market

response fro m limited marketing resourc es” by the markets for to

id entify the target custo mer. Generally, there are two types of market

segmentatio n.

People oriented appro ach

Consumer d emand or product oriented approach.

In case of Favourite P lus, there is no need for market segmentatio n.

Their market is fixed, so they think that there is no need of market

segmentatio n. They p roduce the item according to ord ers they rec eive.

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V. PRICING

Price is the amount charged for the product or service inc lud ing

any warranties or guarantees, delivery, d iscounts, servic es or other

items that are paid of the cond itio ns of sale and are no t paid fo r

separately. To the buyer pric e is a p ackage or exp ectatio ns and

satisfactio ns.

Pric ing is an important dec is ion that every comp any has to take

high pric e or low pric e may create a bad reputatio n of co mpany. The

price of a product is a cruc ial dec is io n.

In F avo urite P lus Ceramics, pric ing po lic y is cost + profit.

Whatever expenses have inc urred during the manufacturing of produc t

is cons idered + profit is too inc luded. Competitors pric e are also

considered, their prices are higher than their competitors.

VI. ADVERTISEMENT

Now a day, marketing p lays an important ro le for the entire

organis ation. Marketing is very much necessary for all the produc ts as

without marketing the cons umer will have lac k of informatio n about the

products. Thus, to make the consumers aware of the prod uct, marketing

is done.

Favourite P lus advertise their prod ucts on very large scale. They

advertise their products on televis io n and also do wall paintings all over

Ind ia. They also dis trib ute pamp hlets fo r t he s ame.

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VII. CHANNEL OF DISTRIBUTION

The wo rd “Channel” has its origin to the French wo rd used for

“Canal”. Thus, channel is route through whic h goods passes from one

end to another. In other words, the route through whic h goods move

fro m the p lace of p roductio n to the p lace of consumptio n is called

“Channel Dis trib ution”.Channel of d istrib utio n is the pathway o r route

through which goods are transferred fro m the hands of producer to the

consumers or fro m the seller to the buyer.

According to one author, “ A channel of d istributio n for a produc t

is the ro ute taken by the t it le to the goods as they mo ve fro m the

producer to ult imate consumer.”

In this industry, the d is trib ution c hannel is

There are about 300 dealers in all s tates of country.

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VIII. MARKET RESEARCH

Market res earch is the systematic and intell igent investigatio n o r

study of the “who, what, where, when, why and how of actual and

potential b uyers.”

It is the s ystematic gathering reward ing and analyzing of data

about p roblems connected with the market p lac e. It is the scientific and

contro lled process of gathering of non routine marketing informatio n

help ing management to so lve marketing prob lems. It ac ts as the

inves tigative aims o f marketing manager and management tool in

planning contro l c yc le.

In this industry, first of all they stud y about custo mers

req uirements. They try to introduce good fac il it ies every t ime, they

have a marketing research team whic h go es all over country.

IX. CREDIT FACILITY

To run the bus iness smoothly and regular c ash flo w, company

gives some cred it fac ility to the buyers.

Favourite P lus also does the same thing. They sell those products

in the market o n cash and cred it bas is. They give 3 cro res cred it

fac ility to the buyers.

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X. SALES PROMOTION

Sales pro motio n cons ists of short term inc entives to encourage

purchase or sales of a produc t or service. It is demand stimulating

devic es des igned to supp lement advertis ing and fac il itate personal

selling. It is a d irect ind ucement which offers an extra value and

incentive for the p roduct to and sales force d is trib utors to ult imate

customers.

In this ind ustry, they do no t adopt any techniq ue because o f

potential marketing and potential c ustomers.

XI. EXPORT POTENTIAL

With majo r market operating up and gap of techno logic al

advanc ement in the manufacturing being narrowed the market fo r

products will grow. However, in mainly depend upon the conformity to

develop countries strict s tandards shall d etermine gro wth. The

increased productio n c apac ities shall see the companies mo ving towards

developed export market. Ind ian ceramic ind ustry in sp ite o f

advantages accord ing out of lo w labo ur costs is wrought with the

problem of quality and des ign comp anies are fortifying their R&D

designs.

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XII. COMPETITORS

It is rightly s aid that, “W itho ut comp etito rs market does not s urvive.”

Favourite P lus Ceramic is also starving in to sale its produc ts in

the competit ive market by continuous develop ment of a product find ing

new areas of consump tio n.

Their comp etitors are,

Kajaria

Bell

H R Jo hnson

Varmora

Lexus

Vrundavan

Sun-Heart

Lorenzo

Exc el, Etc.

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XIII. CONSUMER PROBLEM

HANDLING

“Customer is the king” of the market, is a very attractive s logan.

Consumers generally never face any prob lem for F avo urite P lus but in

spite o f this, if any prob lem arises than fo llo wing hierarchies o f

problem hand ling is fo llo wed.

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ANALYSIS

1. Market Analysis

This pie chart shows market analysis of favourite ceramics wall tiles

from year 2008 -2011. In 2008 , 2009, 2010 and 2011 marketing of the

company is respectively 16%, 22%, 27% and 35%. In 2011 company had

achieved maximum marketing of their products.

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2. SWOT ANALYSIS

„

SWOT Analys is means the analys is o f

S Strength

W Weakness

O Opportunity

T Threat

Stre ngth :-

Favourite Plus ceramic Pvt. Ltd. is giving emp lo yment aro und 100

emp lo yees.

Strong market presenc e

Develop rural area to reach at the global posit io n.

Weakness :-

Irregularity in t ime cost.

Favourite P lus ind ustry entered late in the market.

Oppo rtunity :-

Rap id ly and continuo us growth in the market, so company will

think about expans io n.

Threat :-

Highly comp etit ive market agains t imported Wall t iles partic ularly

the Chinese manufacturer with their aggress ive lo w cost

manufacturing advantage.

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FUTURE PLANE

FUTURE PLANE

40

Future Plane of Favourite Plus Ceramic is to become leading compines in the

vitrified tiles all over the world.

They will be installing new latest machines for increasing productions and various

designs and ranges to meet the upcoming market needs. Also they wanted to try

servicing those services.

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SUGGESTIONS

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SUGGESTIVE STRATEGIES

Some of the Suggestions stratergies to the marketing problems of Favourite Plus

Ceramic can be under.

(1) FREQUENT ADVERTISEMENTS

One of the best solutions to it marketing problems in frequent advertisement

of product of FAVOURITE PLUS CERAMIC in different TV programmers. It

should specially select prime time to seek attention of major target audiences. There

should be High only through television but also other media like cell

phone,radio,print media,outdoor media etc.due to high frequency of adopt the

effects of carry over will also reduse to great extent.

(2) BUILD STRONG BRAND IMAGE

Previously the brand image of FAVOURITE PLUS CERAMIC was very

strong due to Lower frequency of advertisements the consumers brand recall ration

reduced & as a result the brand image also become some what weaker. So frequent

advertising & thus remarking of its products will help FAVOURITE PLUS

CERAMIC to build up a stronger brand image.

Thus, there are some of my suggestive strategies to the marketing problems

fuad by FAVOURITE PLUS CERAMIC.

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CONCLUSION

I have visited “FAVOURITE PLUS CERAMIC” and got an experience will

definitely help in my future.

The co-operation of the employee is good. The management is also effective

and efficient. All the departments are also handled by the authorized person who

have great experience and it is one of the response of sues of the firm.

So, I wish the Company makes more and more profit,fulfill to future plans and

get good global market.

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46

BIBILIOGRAPHY

Marketing management

Varma &. Agrawal

Financial Management

Varma & Agrawal

Financial Management

K. Aswasthapa.

Marketing Management

Philip Kottler

Web-Site

www.favouritetiles.com