Plastic IndustryA plastic is a type of synthetic or man-made polymer; similar in many ways to natural resins found in trees and other plants.Plastics are used because they are:• Attractive• Hard• Soft & Rubbery• Easy to Clean• Flexible• Light weight• Hygienic• Easy to Shape & Color• Economical

Indian Plastics MarketThe Indian plastics market is comprised of

around 25,000 companies and employs 3 million people.

The domestic capacity for polymer production was 5.72m tonnes in 2009.

India is the leading plastics processing hub and accounts for the largest number of plastics manufacturers, with over 5,000 plastics firms.

The growth rate of the Indian plastics industry is one of the highest in the world, with plastics consumption growing at 16% per annum.

Plastic Consumption ( India)

Indiaís plastic exports have increased faster than the world average

India’s Export Destinations (Chapter 39) - 2005

(% Share of India’s exports)

India’s Plastic Exports (Chapter 39) - 2005

(MMT)

Country % Share

USA 13.2%

1.08 China 12.67%

2000 2005

17%

UAE 7.07%

UK 3.96%

Turkey 2.87%

0.50 0.43 Italy 2.38%

13%

0.24

Polymers Processed Plastics

Source: DGFT, CRISIL Analysis

Saudi Arabia 2.34%

Israel 2.25%

Hong Kong 2.20%

Pakistan 2.08%

Source: UN Stats, CRISIL Analysis

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Current Example - Reliance Industries

Reliance Industries, India’s largest private sector

conglomerate company, stated in January that

India’s polyolefins market is expected to grow 12

percent to about 7.5 million metric tons in 2011

with double-digit growth in consumption of both

polypropylene and polyethylene. Polypropelene

will account for the largest growth at 18% (with

consumption growing from 2.2 million metric

tonnes to 2.6 million metric tonnes).

Plastic FurniturePlastic is shaped in furniture through

molding machines. Molding machines melt and inject plastic in moulds and required plastic furniture is made.

It also made with recyclable material because plastic is 100% recyclable material.

Plastic Furniture

Manufacturing Process:1) Initially mixing of color with

plastic Resin. 2) Input the material into the

injection molding the machine.3) Receive chairs and parts of

table as output.4) Assembling and packing.

Plastic Furniture Process

Various Plastic Furniture Industries

Boss

Sonica

Supreme

Nilkamal

SWOT Analysis of BOSS

Strength: Good Brand Image. Pioneer in Plastic chairs. Cover almost 60% of the

total sale of plastic chairs in Pakistan.

Manufacture huge range of plastic products as never other company manufacture.

Quality Products based on the best available raw materials.

A wide range of plastic chairs (main product) and other products.

Qualified and skilled labor in the region.

Adoption of new technology

Weakness :

Weak corporate culture (lack

of communication among the

departments).

Employees are under stress by

the management.

Non participative

management.

Lack of fully functional and

authorized HR department

SWOT Analysis of BOSS

OpportunitiesLarge domestic

markets (lack of customers for Chinese products).

Company has good market image so they can add new product lines

Increasing trend of plastic furniture

ThreatsLow price

competitors are the main threats for the company. (Toyo, Citizen and other local firms)

Threats from Chinese market due to low price products of same range.

SWOT Analysis of Sonica

Strengths Good Relationship with

customers New technology introduce A wide range of plastic

furniture Skilled labor Provide cheaper products

to its customers Increasing Preference of

Plastic furniture Good communication

among the departments Personal relationing with

distributors

Weakness Lack of Research &

Development efforts.

Lack of vision / Planning

Not getting benefits

from support

institutions

SWOT Analysis of Sonica

Opportunities

Increasing Preference

of Plastic furniture

65% middle income

group of whole

population

Competitive rates

Threats Increasing prices

of raw material

Supreme furniture

About SupremeSupreme Furniture Private

Limited, are an ISO 9000 and 14000 certified organization

These products are highly appreciated and accepted in both, national and international market, owing to their high quality, unique designs and latest patterns

The offered products are durable in nature and easy to maintain

Products of SupremeWooden Decorative Furniture, Table Linen, Shaggy, Rugs, Ponchos, Kitchen Items, Hammock, Floor Cushion, Curtain,

Price - SupremeSupreme always believe in

quality products keeping an eye on the usage, taste and budget of the customers.

The new collection is priced between Rs. 300/-to Rs 700 and available across India in a range of pleasing colours that blend well with any contemporary décor

Supreme Furniture Launches New Range of Chairs

Bonus - This range is the best buy for every household owing to its economic value proposition. It has a floral design on the back and moulded in a way to provide maximum comfort.

Glory - This range is ideal for any work place or for office set up. It has net design on the back which reminds of the famous in vogue old traditional net style.

Fiesta - A customer's delight, this range is all time favourite because of its modern design and an ideal choice for everyone's pocket and taste.

Orlando - This premium range has all European style which will definitely bound to woo your senses. Its curvaceous international looks make it trendy and innovative, offering a style statement to everyone.

SWOT Analysis of Supreme Strengths Skilled Labor Force Wood seasoning facility

centre is available Suppliers of raw material

are available Local tools available 350 furniture manufacturing

units 8,000 people (approx.) are

directly and indirectly attached with this occupation

Strong historical background of craftsmen

Weakness High cost of production due to high rate

of raw material Lack of educated, certified and

professionally trained, work force Unavailability of ready to use raw

material

No Designing and R&D facilities available

Unawareness of Social compliance and Environmental issues

Unawareness of any quality control and standards

Unavailability of ready-to use seasoned wood

Fluctuating prices of the raw material.

SWOT Analysis of SupremeOpportunities Technical up

gradation International

exhibitions International

warehouses Networking &

linkages of cluster players/stakeholders

Development of consortiums with specified objectives

Threats Migration of trained

work forces from the sector

Raw material cost increase (shortage in the stock of Sheesham wood at any stagebecause no further plantation as required

Instable political set up of the country.

Nilkamal Plastics is one of the oldest & longest manufactures

of plastics products in India.

It is Asia’s largest plastic processor of moulded products.

A professionally run company with promoters who have a

collective experience of over five decades

One of the first Indian companies to launch stores catering to

home décor retail @home.

NILKAMAL PLASTICS

Diversified product profile across various segments; Wide Customer Base.

Focus on Product Design & Development.

To offer consistent Products and Services with uncompromising quality supported by continuous improvements and innovations thereby exceeding Customer's expectation.

Nilkamal - Strategies

1934 : Shri. Vrajal Parekh start manufactring metal buttons in one machine factory

1950: They buys windsor machine to start plastic processing- calls company “ National Plastic”

1956: First plastic cut glass modeled is made for tea consumption

1964: National plastic fully fledged into household items

1981: Nilkamal plastic is individual venture run by brothers Mr. Vaman & Mr. Sharad Parekh.

1984: Nilkamal start manufactring crates

1990: Nilkamal start manufactring moulded furniture

1991: Nilkamal put plant in Western Maharashtra at Sinnar also Nilkamal goes in public (BSE).

1994: They becomes the official supplier of crates to Coca-cola & Pepsi.

2000: they achieve ISO 9001:2000 certification by TUV: Germany for all its plant

2002: Nilkamal Put plant & joint venture subsidy in Bangladesh.

History & Achievements Of Nilkamal

2005:Nilkamal Inaugurates @home: the

complete home solutions stores with

contemporary readymade knockdown wooden

furniture & home accents.

2006:Nilkamal enter into joint venture with

BITO Largertechnik Bittman Gmbh, Germany to

manufacture storage system in metal in India.

2007: Nilkamal crates & Bin preivate limited &

stackwell marketing services private limited

merges with Nilkamal result in enhanced

financial strength, integrate operations &

efficient management control & efficient use of

infrastructure.

2008: @home division grabs the award “Best

Retailing Division & Visual Merchandising”.

2009:@home division grabs the award- retailer of

the year under the home products & office

improvement category by Asia Retail congress.

2010: the molded plastic furniture business of

Nilkamal awarded “Top Exporter of Plastic

Furniture” for the year 2008-09 by the plastic export

promotion council & it has been accorded the

status of “ Star Export House” by the ministry of

Commerce & Industry.

History & Achievements Of Nilkamal

Product - Nilkamal Products are brand with ISO 9001-14001.

Material handling crates.Plastic molding furnitureHome décor “Lifestyle retail

@home”Specialized items for Automobile,

Pharmacy and hospitality sectors

Marketing Mix

Nilkamal prefer two pricing strategies according to there location such as:-

Price Skimming Strategies- It is assumed that customer of nilkamal are more concerned about obtaining a quality rather than cost of the service.

Target customer- Nilkamal target specific customer for which they made @home service according customer’s budget.

Price

Sell 10 million molded chair per annum apart from other furniture items in India.

@ home Stores across the India

Place

@home – Nilkamal Home Décor Business :Changing Scenarios

PROMOTION

SWOT Analysis of Nilkamal

Strength

Focused on customer segment

Products are durability

Well established marketing and

distribution network

Strong trust on innovation

Committed to quality assurance

Winner of several awards

Weaknes

Nilkamal faces problem because of

recession impact in world

Distribution channel of Nilkamal is

weak in comparison to its competitors.

Nilkamal doesn't provide proper sales

promotion schemes.

Nilkamal crates have high prices as

compared its competitors (Prince &

Supreme).

@home is made for the people of

specific category only, which ultimate

make very difficult for Nilkamal to

attract common man because The

furniture range start from Rs. 15000/- &

maximum is above 1lakh.

SWOT Analysis of Nilkamal

OPPORTUNITY New opportunities are

arising due industrialization and globalization

Diversified Activities ‘One-stop shop’ for

overall home décor. Experienced

Promoters & Management Team

Focus on Product Design & Development

THREATS Nilkamal faced competition

from the many market player like VIP, durians, Supreme, Prince, Cello, Prima.

This market player offering consumer products at budget level, which is big problem for Nilkamal

Small Players available in the markets which attract potential buyer which makes more differences

People in markets are very less aware of creativity & they first look at their budget before entering @home

Comparission with Nilkamal and Supreme

Nilkamal Supreme

Nilkamal is one of the largest manufacturing of plastic and furniture décor.

They manufacture and sell over 1.4 Million plastic moulded chairs in Indian markets only.

All the Nilkamal plants, warehouses and offices are connected to the Head Office in real time by ERP, SAP-R3.

Supreme is one of India's largest manufacturing of crates.

Supreme offer product like PVC fitting & pipes, moulded furniture, crates, packaging films, Industries moulded product etc. overseas from Australia to the Middle East Europe to Africa.

Supreme new product application development PVC-SWR system

IT dept. has spent fair amount of time in updating software & hardware

It affect their investment in energy innovation

Company faced problems like server maintained, software updates, server outages

As the company get globalize in world they facing problems like operations, security arrangements, antivirus applications & firewalls.

Case study - Failure of IT in Nilkamal

Nilkamal tie up with Google, Google apps enabled the company to ramp its staff with out actually making any serious changes in its infrastructure.

Google apps has automatic centralized updates saving technical people from the labor & time, they would spending in checking & installing the updates

Nilkamal collaborated by using different google docs entities, such as google forms & google spreadsheets, to get good effects.

Solution on IT