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CERTIFICATE-
This is to certify that Mr. Shah Virag A has satisfactorily completed the project work entitled
"Consumer Buying Behaviour Regarding Ball Pens" at Todays Writing Products Limited,
under the guidance based on the declaration made by the candidate and my association as
guide for carrying out this work, I recommend this project report for evaluation as a partial
requirement of the MBA Programme of Veer Narmad South Gujarat University, Surat.
This project report is forwarded for the evaluation Vice/Voce Examination to the Veer Narmad
South Gujarat University.
This training was a part of his curriculum. During the above said period, he was exposed to the
working of various departments in our organization.
During his training he was found to be regular in attendance. He applied himself diligently and
industriously towards the training assignment allotted to him.
STUDENT DECLARATION
I, Mr. Shah Virag A, the student of GIDC RAJJU SHROFF ROFEL INSTITUTE OF
MANAGEMENT STUDIES, VAPI, affiliated to Veer Narmad South Gujarat University,Surat
Hereby declare that this project report is a resukt of culmination onf my sincere efforts
.
I declare that this submitted work done solely by me and to the best of my knowledge, no such
work has been submitted by any other person for the award of post graduation Degree or
Diploma.
We also declare that all the information from various secondary sources has been duly
acknowledge in this Project Report.
DATE: ______________________
[SHAH.VIRAG.A]
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ACKNOWLEDGEMENT
A Project Report is never successfully completed without the guidance from appropriate
person.So, Now it I the right time to express my sincere gratitude towards all those, who have
helped me to complete the project.
I would like to thank our Director Dr.R.S.Shah who has given me the opportunity. I am very
much grateful to External Guide Mr.Sushil Sharma and also the Internal Guide Prof Jayshree
Tailor, whose guidance and support helped me to complete this project successfully. Without
their Guidance the work would never been completed.
EXECUTIVE SUMMARY
SYNOPSIS
Today the significance of project work has greater importance in business world.
Practical knowledge is as important as theory so that one thing is said, “Practice makes a
men Perfect “ In order to get acquainted with how theoretical concepts are being followed
at TWPL, I have tried to take an overview of all departments of the company and its
working mechanism.It has given me a chance to learn a lot in the process.
My topic for the study is on “Consumer Buying Behaviour about pens”. Pen is a
product, which is used by each and every person. There are various brand’s of pen in the
market of different types Price, Colour, design, Grip etc .so the pen market is full of
competition where the consumer possesses vast variety of choice to select his brand
which depends on his buying Behaviour .Of course it is very difficult to describe
consumer buying Behaviour about pen; seven though I have tried to find how the
consumer purchases a particular brand
How much he searches for his brand? What factors influence he too buy the preferred
brand?
The technique of data collection is through questionnaire as it is less complex and
easy Three methods (i.e) Graphical method ,percentage ,&average method are used as
tools /techniques of analysis. Statistical tools used by me for analyzing the data are Chi –
Square & ANOVA Analysis.
TABLE OF CONTENT
A CHAPTER (PART I)
1. OBJECTIVES OF PROJECT REPORT 1
5. LOCATION ADVANTAGE 10
2) FINANCE DEPARTMENT 30
3.1 INTRODUCTION 45
4) MARKETING DEPARTMENT 56
4.1 INTRODUCTION 57
5.3 RECCOMENDATION 96 – 97
⇒ To Understand the role of each subsystem (Dept) and its relationship with other
Subsystems for the Business as a System
There has been a need to document through the use of writing instruments since the dawn of
makind.Pens and Pencils continue to be the staples of everyday life and indispensable items for
everyday use.Wriritng Instruments continue to play integral part in the life of particularly every
Business, School, and household. The advent of computers and related technologies has yet to
make writing industry and Instruments Slow Paced and Obsolete. In fact, the writing Instruments
embraces the evolution of technology by incorporating it into new products and using it to
enhance business aspects and client services.
The size of the writing Instruments Industry in India is estimated at about Rs 1800 Crores of
which organized players account for 70% of the market share and the unorganized players for the
rest. The industry Grew by about 15% in 2004-05 and by 13.5% in 2005-06,largely driven by the
growth of organized sector, indicating that consumer are responding favourably to Quality and
Branding. It is expected that promotion, easy availability, and affordability, branded off make
will accelerate and help the organized sector eat into unorganized Presence.
India's Writing Instruments Industry is reserved for the small sector with a statutory limit on the
maximum Investment in Plant and Machinery at Rs 50 Crores.As a result critical pen component
like refills are manufactured in house, while all non critical components are outsourced.
Most Indian companies cater to the "Value for Money"(i.e. High Volume Low Value Strategy)
While International Players cater to Premiums segment operating through exclusive Distributors.
Globally writing Instruments Industry is estimated at Rs 50000 Crores (p.a). China controls
approximately 10% of the global markets while the Indian share had so far been Mini scale. But
given the superior quality perception that "Made In India" pens have over the Chinese, the
buying preference of major retailers has been shifting to Indian Products and Brands.
The following Information regarding the Writing Instruments Industry Has been obtained from
the Public Sources like: Business Line, Economic Times, Financial Express, some Companies
Catalog are Used along with Internet Support.
• The Annual Turnover of the Industry in India is now estimated at Rs 1800 Crores (p.a)
and is expected to Increase annual growth rate by 15-20% (p.a).
• India is Viewed as Quality Supplier, where as China as Cheaper and Lower quality
Products.
• Germany, Japan, Taiwan & Korea were hubs for the Writing Instrument Industry, But due
to cast factor manufactured have started shifting to China and India.
• Previously Switzerland was the manufacturing centre for Ball point Tips, but now India is
emerging as a major Tip Manufacturer satisfying not only Domestic demand but Global
Demand Also.
⇒ REGULATORY REQUIREMNTS
In India as per current law, the manufacturing of writing instruments is reserved or falls under
the category of SSI (Small Scale Industry Sector). Thus there is ceiling on Investment in Plant
and Machinery Manufacturing Process (Max Rs 50 Crores), excluding Mould Making as it is
Highly Capital Intensive part of Manufacturing. Of course any EOU (Export Oriented Unit) does
not fall under this Purview of SSI.
TWPL has a strong, scalable, multi-layered Distribution channel overseen by sales force
covering entire country. With a network that reaches out over 4, 40,000 Retail Outlets Directly
through 1440 Distributors and 57 super distributors.
⇒ BRAND IMAGE
The brand name Today's has achieved a high level of visibility all over theIndianMarket. Having
invested Rs 2000 Lakhs in advertising and approx Rs 2500 in Marketing over a 4 year Period,
Today's has become association with latest technology and Innovativeness. The company Path
breaking campaign was the Zee Khusboowala (Perfumed Pen) Launched in 1995-96. Over the
years, the Brand has consistently launched new ideas in writing Instruments.
⇒ (YEAR 1992)
• Incorporated as Private Limited Company in the name and style of Creative Stationo
Products Pvt Ltd
⇒ (YEAR 1995)
• The Name of the Company changed – Todays Writing Products Ltd
• Various Products in Economy and Premium Range launched and well accepted in the market.
⇒ (YEAR 1996)
• Company went for IPO 25,00,000 Equity shares. And is Listed on 6 Stock Exchanges.
• The blockbuster Brand Khusboowala was Launched that improve the Brand Image
(Domestically & Globally).
⇒ (YEAR 1998)
• A Series of Marketing and Promotional events led to Increase in distribution Network from
50000 Outlets to 3,00,000 outlets It include
• A slogan Created to Encourage the Indian cricket team during the World Cup (Jeetna Hal
Todays).
• Celebrity Endorsement for product and merchandising Various Times. Celebrity used are
Salman Khan, Hrtihik Roshan, Raima Sen etc..
• Sponsorship of Mumbai Cricket Team with Sachin Tendulkar, VInod Kambli Agarkar And
Others.
⇒ (YEAR 2000)
• Ball Pen and Refill production crossed 10 lakhs Pieces Per day
• Merger with Profit Making Todays Writing Instruments Ltd Successfully Completed.
⇒ (YEAR 2001)
⇒ (YEAR 2002)
• ss
• Launch a Gel Pen at Rs 5/- Price Point First time in India as Gel Pen were sold at Minimum
of Rs10/-Per piece
⇒ (YEAR 2003)
• Entered into an Agreement with Pounland with 150 Retail Outlet all Across UK.
⇒ (YEAR 2005)
• Entered into Agreement with JL MORRISON, for marketing their products under the
companies sole Brand Name In Srilanka.
• The company has relationship with Style Asia Inc.of USA for Marketing Purposes of its
Products in USA.
• Company also sells it Products to 150 retail chain In United Kingdom, Pounland.
MARKET PLAYERS
.The following are the major Players in Writing Instruments Industry of India
CELLO
It is the biggest Player In the Industry with Turnover of Rs 350 Crores.As the Present Scenario
Cello is considered to be Market Leader in the Industry.
TODAYS.
It is at number 2 Position in the Market and is considered to be the toughest Competitor of Cello
(Market Leader) and not only the Leader but other followers In organized Sector.
Pen as a product is close to people of all walks of life at different age and of different gender and
the association of it is a life long one.
For some with a good quality pen at finger tips actually elevates their confidence level and
makes them feel good.
According to the 2006 ACNielsen Retail Audit, ball pens forms the biggest chunk of the pen
market in India and accounts for 72 percent of the total pen market followed by gel pen at 28
percent (Refer Table 1). The brand leaders in this market are Cello, Todays,Linc and other
players
Table 1: Ball and Gel Pen - Market Break-Up (Value)
Unorganiz
ed
20%
Organized
80%
25
MARKET SHARE OUT
20
OF 80%
15
10
0
TODAYS
CELLO
ADDGEL
REYNOLDS
OTHERS
COMPANIES
3) INFRASTRUCTURE FACILITIES
The National Highway No.8 is just 15 km away from the plant as well
as Railway Station of Vapi is just 17 km Away from the Plant. This facility helps the
Company to regularly procure raw material from distant places as well as to bring the most
efficient Manpower at Work.
4) AVAILABILITY OF POWER.
The cost of electricity available in this area is almost Half in
Comparison to other Industrial Areas.
CORPORATE PHILOSOPHY
Adding Value
In everything we do;
In the brands we build;
In the products we make;
In the innovations we foster;
To the lives of our customer;
To the business we conduct with our suppliers and associates;
To our every growing family of employee's and shareholders;
To the society we belong to; and ultimately
To the Path we have chosen to follow.
The different Brands Of Ball and Gel pen of the Companare as Under
○ Wonder Gel
○ Pirates
○ Starry
○ Wonder Ball
○ Jotter
○ Lexis
3. Tips and Points : Tips are also Imported and the size , shape of the tip determines the
price of the Tips.
4. Packing Materials: Company uses various Grades of Plastic, Craft Paper and
Cardboards and Corrugated Boxez purchased from local Markets Company also uses
other packing materials like Packaging Jars, Acetate Bottles, Blisters, Tumbler setc.
PRODUCTION PROCESS OR MANUFACTURING
PROCESS OF BALL PEN
The complete Manufacturing of pen is divide in the five main parts they are as mentioned Under
I. INJECTION MOULDING PROCESS
• The different components of pen (i.e.) Body, Cap Nozzle Grip etc are processed and
prepared on the injection Moulding Machine.The different parts/components require
different chemical as well as moulds and Dyes The list is as Under:
Body PST
Cap PP
Body & Crystal Cap SAN
Adapter DELRIN
For Grip HDPE & LDPE.
Here as mentioned above different types of Raw Material are used for different
components of Ball Pen Due to the different qualities and technical requirements of
Products.
• Pens have various plastic parts (i.e) Body, Grip,Nozzle,Capetc for which different types
of moulds are made, which either are procured from domestic markets or Imported and
some of the are In House Made, which are than Mounted on the machines as per the
production process.
• Plastic Granules are heated from 200 to 240 degree Celsiusdepending upon the product
requirement.At this Heat level the mixture melts and get converted into liquid form.
• The liquid form is than moved to Moulds & Dyes in the Injection Moulding Machine.
Where it is cooled by the water which further gives it shapes and get Injects from the
Machine.If Different shades and coloured are required than the plastic Granules are
mixed with Coluur Granules In the Specified Quantity which is also known as Master
Batching the Lot
II REFILLING PROCESSS
• Extruder Machines are used to extrude Refills Tubes. Refill for Ball pen and Gel pen are
manufactured on the extruder.
• The tubes of Polypropylene are manufactured the extrusion Machines and than callibalised
and cut into Standard or required size of the refills without Tapes or Edges.
• Ink used is either Imported or procured from local suppliers from Gujarat or Bombay or is
imported in certain cases.
• Tips (i.e) Point required are Imported from Swiss or other overseas market and than they
are cleaned on ultrasonic Machines. Point of 0.5, 0.6, 0.7, 0.8 & 1mm are used to fix on the
refills nozzles.
• The tubes are than mounted on the Ink refilling Machines of Korea and Indian made and
Ink is filled in the tube and Nozzles are filled on the Automatic Machines. Refills are
stacked in Boxes and kept in the high speed centrifuge machines to remove air gaps
• The refills are than sorted cleaned and collected and packed for saleable quantity and
balance is sent to assembly division for assembling with the Pens.
At this stage the already made pen and refills are to be Labeled (i.e.
Printed with Company Logo Todays writing Products Limited. and with the respective brand of
the pen (i.e.) Starry, Wonder Ball, Wonder Gel. Ink Monitor...Etc.Differnet Machines are used
for the process as mentioned below:
• Foiling Machines
• Plotting Machine
It is used to print the label of the company on Steel caps and other plastic
caps. Here the plating and printing is done on 5 pieces at one shot or at one time
IV ASSEMBLING PROCESS
Once all the Ball pens and Refills of a particular Batch of Production
is labeled this the final stage of Pen Manufacturing here all the labeled and inspects part and
lots are Assembled. Woman workers are use for the purpose who are responsible for
assembling the Caps,refills,Body etc parts of the pen and packet it in the batch of 50.Finally the
Packaged pen is Inspected and made ready for Dispatch to stores Department.
QUALITY CONTROL & INSPECTION
At Todays, a strict quality control is observed which is translated into world Class Quality, and
is reflected in the companies growing International Presence. During the entire Production
Process efforts are made to maintained the quality. The Inspection is done as mentioned below
1. Preliminary Inspection: This is done to check out whether the raw material used is per
the requires standard. Heating of raw material (i.e.) Plastic Granules at certain degree
and the melted mixture is observed if the mixture appears to be reddish it shows that
raw material is not of desired quality and cannot be used for manufacturing process as it
can result into defective pieces. Thus the lot is returned backed to suppliers.
2. Daily Production Process Inspection.: A Quality Control Inspector is appointed with
the team members to continue the inspection process. Inspection of the manufactured
Ball pen parts is done at every 2 hours manually to check out shape, Durability,
Texture, Colour etc.and at the end of the day report is to be submitted to QC
Production.
3. Post Production Inspection: Once the required batch is manufactured, out of that total
batch some random samples of 50 are taken and if defective pieces exceeds size of 5,
than the entire lot is reject's and sent for the Reprocess
4. Final Inspection: Here the same procedure of Inspection for quality is undertaken as
followed during production process, But here the assembled Ball pen are inspected for
the fitting, Cap, Grip Holding tetc.Random sample are taken from the batch to be
dispatched .
The Quality Checking Reports that are Use During different Production Stages are
attached and as Under:
MAINTENANCE ACTIVITY
In simple Maintenance is understood as a set of activities which help keep the plant machinery,
equipment, and other tools and fixtures in operating and running condition to avoid losses and
accidents during the production. It is understood as the function of manufacturing management
that is concerned with day to day problem of keeping the physical plant in good operating
condition.
In a companies like "Todays Writing Products Limited" where the daily production of pen is
approximately accounted to 10 lakhs pieces a breakdown in machine can cause huge financial
and market losses to the company. Company also is known domestically and internationally as a
quality pen supplier and thus for all that effective maintenance is required, Company is also
aware about the same and is having a very competent team of maintenance Engineers to ensure
smooth and efficient functioning of the Plant and continuous Production Process.
MAITENANCE COMMITTEE OF TODYAS WRITING
PRODUCTS LIMITED
Formen
Foremen,repair
Foremen
Mr. Elecrician,
shop
Mr.Sumant
Sunil
Crew
Maint.
Plumbers,
Workers
Agrawal
Singh Fiiters.
GM
Production
Technical .
Dev.
There are mainly two type of maintenance activity carried at Todays Writing Products Limited
they are mentioned as under:
1) Routine Maintenance: It include activities such as periodic Inspection, cleaning,
lubrication and repair of production equipments after their services life. Routine
maintenance are of two type as under:
a) Running Maintenance: At TWPL running maintenance is practiced when the machine
are actually involved and running the production process. Here when Injection Moulding
Machine is processing regularly greasing, lubrication and temperature is maintained for
the effective functioning of the machine.\
b) Shut down Maintenance: At TWPL shut down maintenance is of most important. It is
carried out at each Friday as on that day is holiday due to staggering. Entire maintenance
activities related to all the machines is carried out on this day by the above mentioned
staff.
The detail of machine and Maintenance activities
are a mentioned as under.
• Machine Set UP
• Greasing
• Cooling Tower (Checking the pipes, tds process, tank safety etc)
ABC ANALYSIS (Always Better Control)
The main objective of ABC analysis is to vary the expenses associated with maintaining
appropriate control according to the potential savings associated with a appropriate of
Inventory Level.It is also known as Selective Inventory Control Method.In an organization
there are certain items (High Value) which are less than 10% items but the consumption
value of it will be more than 75% they are known As "A" Category Items.Similarly there
may be large number of items (Low Value) 75% of the items but the consumption value
would be low may be above 10-15% of the total consumption value are known as "C".And
the items whose share 20-30% as well as consumption laue is round the same are "B" Items
The list of ABC analysis of Todays Wrting Products Limited is as under:
• INKS
• COLOURS
A (GRANULES)
60 -7 5%
• PACKAGING MATERIALS
• SPRINGS
• PLASTIC FOILERS
B 20 – 30%
• STEEL FOILERS & PLATES
• ELECTRONICS & SPARE PARTS.
• STATTIONARY MATERIALS
• LUBRICANTS
Financial management is the application of planning and control to the finance function
of a business to ensure that the funds needed are raised and used effectively for its benefits.
Financial management means procurement of funds at minimum cost and its effective use in
order to maximize the wealth of shareholders.
Financial Analysis is the systematic numerical calculation of the relationship between one fact
with the other to measure the profitability, operational efficiency solvency and the growth
potential of the business.
Financial analysis in the way is the purposeful and systematic presentation of financial statement.
These statements are prepared regularly at the end of every accounting year. The analysis serves
the interest of shareholders, debenture holder’s potential investors, creditors, bankers, journalists,
legislators, politicians, researchers, stock exchanges, taxation, authorities and economists.
Financial statements by the process of the re-managing regrouping and calculation of various
ratios the analysis simplifies summaries and systematizes the monotonous figures.
C. INVESTMENT
They are valued at cost
D. INVENTORIES
Stock of raw material, stores and spares and packing materials are being valued at
cost or net realizable value whichever is lower, cost thereof is determined on First In
First Out Basis (FIFO Method).
Stock of Finished Goods is valued at Market Value or Cost whichever is Lower.
Where as stock of Semi Finished Goods are valued at Cost.
E. FORIGN CURRENCY TRANSACTION
Transactions in foreign Currency are recorded by applying the exchange rate at the
date of transaction. Exchange Differences arising out of the above mentioned are
recognized in profit and loss account.
F. RESEARCH & DEVELOPMENT COST.
Research & Development cost are charged as an expense in the year in which they are
incurred and are reflected under the appropriate heads of account. Companies
propose to devote 3% of its total turnover towards research and development.
G. REVENUE RECOGNITION
Revenue in respect of sale of goods/job work is recognized at the point of
Dispatch/Passage of tilted of goods to the customers.
Insurance, Railway and other claims are accounted for an acceptance basis
Export Incentives is accounted on the Basis of Accrual Concept.
H. INCOME TAX
It is charged as per the income tax act,under section 1961 Rate Taxable is 23.56%
Profit Rs
900
800
700
600
Rs (Lakhs)
500
400
300
200
100
0
2005 2004-05 2003-04 2002-03 2001-02
Dec
Year
DISTRIBUTION OF INCOME
Particulars Rate %
Retained Earnings 6
Depreciation 3
Interest Paid 4
Dividend & Tax 2
Corporate Tax 3
Other Overheads 2
Advertisement 1
Selling & Dist Exp 4
Manpower Cost 2
Packing Material Cost 3
Manufacturing Cost 4
Material Cost 66
66%
6%
4% 3%
3% 2% 2% 4%
4% 1% 2% 3%
SHAREHOLDING PATTERN
Distribution of Shareholdings as On 31-03-05
Individual
16%
Promoters
Individual
Banks & FI's
Corporate
Banks & NRI's
FI's
10%
NRI's
13% Corporate
13%
1. Shareholder Fund.
(a) Share Capital [1] 128,133,000 119,785,500
(b) Reserves & Surplus [2] 450,607,729 578,740,729 333,582,430 453,367,930
2.Loan Fund
(a) Secured Loans [3] 223,494,568 236,075,623
Application of Funds
1. Fixed Assets [5]
(a) Gross Block 388,703,193 364,284,586
(b) Less: Depreciation 134,554,842 103,218,986
(c) Net Block 254,148,351 261,065,600
2005 2004
INCOME
Sales 944,588,471 926,854,962
Other Income [12] 2,764,516 5,156,710
947,352,987 932,011,672
EXPENDITURE
Material Cost [13] 628,815,470 574,418,860
APPROPRIATIONS
(a) Proposed Dividend 12,813,000 17,973,000
(b) Dividend Tax 1,797,065 2,520,713
(c) Transfer to Gen Res 5,000,000 5,000,000
RATIO ANALYSIS
Ratio analysis is a widely used tool of financial analysis. It is defined as a systematic use
of ratios to interpret the financial statements so that the strength and weakness of a firm as well
as its historical performance and current financial condition can be determined.
Types of Ratios:
Ratios can be classified into four broad groups:
• Liquidity Ratios
• Capital structure/ Leverage Ratios
• Profitability Ratios
• Activity Ratios
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