MIA Report On Gurucharan Industries

Submitted by Sandesh Shetty K 4NY12MBA36 Sunil Kumar 4NY12MBA67 Internal Guide Sandhya Rao K P Assistant Professor JKSHIM, Nitte External Guide Jayakar Shettigar Proprietor Gurucharan Industries Sidhartan P V 4NY12MBA59

Submitted in Partial Fulfillment of MBA Course to Justices K.S. Hegde Institute of Management (An Autonomous Institute under Visvesvaraya Technological University)

Department of Business Administration Justices K.S. Hegde Institute of Management NMAMIT, Nitte October 2013

CERTIFICATE BY THE INSTITUTION

This is to certify that Mr Sandesh Shetty, Mr Siddarthan P V and Mr Sunil Kumar are bonafide students of Master of Business Administration Course of our Institute affiliated to Visvesvaraya Technological University, Belgaum. The Management in Action report stated, Gurucharan Industries is prepared by then under the guidance of Sandhya Rao K P, Assistant Professor, Justice K. S. Hegde Institute of Management in partial fulfilment of requirement for the award of the degree of Master of Business Administration of Visvesvaraya Technological University.

Place: Nitte Date:

Head of the Department Business Administration

Place: Nitte Date: Principal

Valued by Sl. NO 1. 2. Name of the Examiner Signature Date

CERTIFICATION BY THE ORGANISATION

CERTIFICATE BY THE GUIDE

This is to certify that Mr Sandesh Shetty, Mr Siddarthan P V and Mr Sunil Kumar students of 2nd year have successfully completed their MIA report on Gurucharan Industries. Prepared their project under my guidance for the partial fulfilment of Master of Business Administration. I declare that the MIA report is not submitted to any other university for award of diploma or fellowship and also not published in any article as per my knowledge.

Place: Nitte Date:

Sandhya Rao K P Assistant Professor (Internal Guide) JKSHIM, Nitte

DECLARATION
We hereby declare that this Management in Action report is prepared by us, under the guidance of our internal guide Sandhya Rao K.P, Assistant Professor, Justice K.S. Hegde Institute of Management, Nitte, in partial fulfilment of the requirement for the award of Master of Business Administration program.

Place: Nitte Date: 25th September 2013

ACKNOWLEDGEMENT
We take this opportunity to express our profound gratitude and deep regards to our guide Sandhya Rao K P for her exemplary guidance, monitoring and constant encouragement throughout the study. This project wouldnt have been completed without the support of Mr Jayakar Shettigar, Proprietor, Gurucharan Industries. The guidance given by him from time to time was very effective in completion of our report. We also take this opportunity to express a deep sense of gratitude to the Director of our institute, Dr.K Sankaran for giving us an opportunity to explore the real working of the business and apply the theoretical framework into practicality.

Place: Nitte Date: 25th September 2013

Mr.Sandesh Shetty Mr.Siddarthan P V Mr.Sunil Kumar

TABLE OF CONTENTS

CONTENTS

PAGE NUMBER

EXCECUTIVE SUMMARY

INDUSTRY ANALYSIS

INTRODUCTION

OWNERS PROFILE

MARKETING

DISTRIBUTION

FINDINGS AND SUGGESTION

APPENDIX

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BIBILIOGRAPHY

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EXECUTIVE SUMMARY
Plastic processing machinery industry is a growing sector with the world demand for packaging machinery being expected to reach $41.8 billion in 2017 and the demand in the Asia-Pacific region is to expand up to 5.7% annually. Gurucharan Industries is one of the successful plastic processing machinery manufacturer operating for more than 15 years in the industrial area of Mangalore. Since the start up till today they have been relentlessly conducting product research and have come out with new and efficient machineries, which are being used by plastic processors in India as well as foreign countries. The firm has been participating in various industrial exhibitions where they have been able to showcase their innovative machineries to industrial customers and have been successful in making sales. They have a team of hardworking employees who have contributed to the growth of the firm. In the course of the study which involved a detailed observation of the operations and functions of the firm. Our team of consultants noticed that the company follows a system of starting production of machineries only after they receive the orders as the firm do not have warehousing facility. It was also noticed that the safety of workers were not properly addressed as they were not provided with basic safety equipments also safety signs were not put up near the work area furthermore firm had no personnel department to address the employees issues. It has only one person looking after the marketing activities it was evident that it was insufficient in expanding that market. Research team recommendations to Gurucharan industries are to pre manufacture the structures and spare parts of the machineries and to store it by constructing an in house warehouse so that they can produce and deliver the machineries faster. Also workers are inconvenient in performing their work due to the lack of safety equipments the firm must raise the safety standards by providing them at least the basic safety equipments and we recommended to conduct an industrial safety training programme to the employees regarding various hazards. In addition to this firm should put up safety signs which helps workers to take necessary precaution while they work and they are free from danger.

INDUSTRY ANALYSIS
Manufacturing industry is the industry which includes production of goods for use or sale using labour and machines, tools, chemical and biological processing or formulation. This mainly refers to a range of human activity from handicraft work to high technologies, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Manufacturing industries are into the production of different products. Before the Industrial Revolution, most manufacturing occurred in rural areas, but now the scenario has changed it has spread all over the place. Most of the Indian companies are also engaged in the work of manufacturing as well as exporting of machines and spare parts. Manufacturing and exporting of plastic process machine and its spare parts is also very important business under this category. The Indian plastic industry has taken great strides in the last few decades, the industry has grown to the status of a leading sector in the country with a sizable base. The material is gaining notable importance in different spheres of activity. Most of the cases companies which are into this business are operating on a large scale and therefore they have more of industrial customers. These companies are used to producing the machines and spare parts depending on their consumer needs or industry needs. The cost involved in the production and distribution of these kinds of machines are very high compared to others. Also it is a highly competitive market, it demands a strong attention to product quality therefore product quality and consistency are important with that the quality of a firm's personnel and their commitment to success is crucial to sustain a competitive advantage. Hence due to increased competition among the companies there is a shift towards the technology concentrating on exact design, configuration, raw materials and applications according to product demand. To survive the competition, plastic manufacturers will need to adopt radically new methods and approaches to reduce costs, improve market and customer service and management of performance. Plastic manufacturing industry should have social responsibility therefore it must continuously identify and responds to the changing demands in order to sustain itself.

INTRODUCTION
Gurucharan Industries was promoted by Mr Jaykar Shettigar in the year 1996 to manufacture the following: 1. Plastic processing machineries. 2. Allied Machineries. 3. Spare parts and components of plastic processing and allied machineries. To undertake vast research in extrusion of films Gurucharan Industries has started the manufacturing of single screw HMDPE/LDPE/LLDPE Blow Film Plant and PP brown film plant at the initial stage. Gradually developing the same to Twin die, four die and rotating Die Blow Film Plants in HMHDPE/LDPE/LLDPE and twin die Film Plant in PP. It also developed single colour Flexo Printing Machine, Pepsi Plant etc along with HMHDPE/LDPE/LLDPE Blow Film Plant with rotating Die and online Printing attachment. Further ii has developed other Allied Machineries Such as Scrap crusher, Twin Chamber air Cooled reprocessing Plant, Water cooler reprocessing plant, Gusseting Machine, hopper Dyer, Mixing Machine, Pneumatic punching Machine etc to save time and labour in colour printing. They have recently developed a HMHDPE two Colour Film extrusion with two colour Flexo printing and first showcased in Plast India 2009 Exhibition at New Delhi. It was appreciated by visitors as well as the Organiser of exhibition. This new addition is Two Layer HMHDPE/LDPE/LLDPE Blow film plant. The unit has got latest and the state of the art special purpose Facilities for in house machining. The unit manufacturers critical component of extruder machines like screws, barrels, dies, spirals, helical gear box, housing etc. The machineries are sturdy and robust built, a unique quality of power, labour and space saving devices which have been introduced to global market. They possess an experienced technical team to cater the needs of their valued customers and troubleshooting will be attended promptly whenever required.

Salient Features of the machines: Low power consumption with high output. Compact design-space saving device. In-house control panels. Automatic filling systems for bubbles. Knurling roller attachments. Temperature controllers. AC variable frequency drives. Auto roll weight change siren.

Restless and continuous research and development is the backbone of the industrys success within a short period of 15 years they have an annual turnover of 5 crores. Supported with reliable after sales service backed with 38 years of experience in operating, maintenance and manufacture of plastic extrusion machineries Gurucharan Industries entered the global market. Since 2001, the unit is exporting its products to Mauritius, Uganda, Ghana, Oman, UAE, Congo, Angola, K.S.A etc. Most of the overseas customers have encouraged them with their repeated orders.

OWNERS PROFILE
Mr Jayakar shettigar is from Muniyal from Udupi district. After completing his basic school education he started working at a very young age of 12 and worked as a machine operator. He has 38 years of experience in the industrial field, in the year 1996 he set up a small scale plastic machineries manufacturing unit in Bikampady industrial area, where he first developed the compact mode of the machine and continued to add more variants and models to his product line down the years. Today the plant is one of the well know industry in Dakshina Kannada district. With the growing business he is supported by his son Gurucharan shettigar who is a graduate of mechanical diploma from ETTC.

MARKETING
Being a manufacturer of industrial machineries Gurucharan Industries doesnt follow the traditional marketing process. Instead it has participated in several exhibitions over the years to demonstrate the power and efficiency of its products. This demonstration has worked for the benefit of Gurucharan Industries with new and diverse client portfolio, Some of the exhibitions participated by them are Plasti Vision India (2001 Mumbai), Plast Asia (2004 Bangalore), Plasti Vision India (2004 Mumbai), Iplex (2005 Chennai), Plast Asia (2006 New Delhi), Plast Asia (2007 Bangalore), Iplex (2007 Hyderabad), Plast Vision India (2007 Mumbai), Plastec (2008 Chennai), Plast India(2009 New Delhi), IPEX (2009 Chennai), Plast Asia (2010 Bangalore), Plast India (2011 Mumbai), Plast India (2012 New Delhi). Company has a marketing manager who scopes for upcoming exhibitions where their machineries can be showcased. They have also subscribed to industrial yellow pages through which their advertisements can reach prospective industrial customers. Some of their Existing clients are plastic processing units from Delhi, Rajasthan, Madhya Pradesh, Assam, Gujarat, Daman, Maharashtra, Andhra Pradesh, Pondicherry, Goa, Tamil Nadu, and Kerala.

EMPLOYEE STRUCTURE
Gurucharan Industries consist of 58 employees which includes: 48 floor workers, 2 Technicians, 1 Marketing manager, 1 manager, 2 supervisors, 3 accountants, 1 cashier.

DISTRIBUTION
Gurucharan Industries delivers its products to their Indian customers through private lorry transport services, and for foreign delivery the machinery is carried to Cochin shipping port through trucks from there they are shipped to their destination countries.

Main Problems Found

From the study the consultant team found out some of significant problems. The main problems are: Issue regarding the warehousing facility. Problem regarding their workers safety. Restrictions from the part of government on their clients. Problems concerned to shipping of equipment. Absence of a personnel manager.

Summary of Findings
It is very important for every Company to treat their employees well. The approach which the management is showing is little disappointing as employees are the real valuable asset for any organization in order to survive and expand. Even though the workers are into the production of heavy machinery parts which is effortful where it includes tough works like welding, drilling, cutting etc. The management has not followed some of the main safety measures as they have not been provided with the requirements like shoes, gloves and helmets etc for workers safety. Furthermore they havent put sign boards to indicate about the safety.

Even though the Company is doing very well over the years, because of the recent restriction put by the government on their clients, they are not receiving additional orders as their clients are not willing to expand fearing further restrictions and even prospective industrial people who were initially interested in entering plastic processing industry are refraining from doing so, hence it is becoming hard for Gurucharan Industries to get new clients.

The Company has good number of energetic workers to work, but the management is not able to take the best out of them because of the warehouse problem. The system which the Company follows is that they only start the production of any machinery or spare parts after they receive the order from customers.

It has a workforce with potential of producing more number of machines because of the lack of warehousing facility sometimes they are not able to meet the customers expectation in delivering products on time and it is making their operation slow.

The other major problem which the Company is facing is that of its transportation (mainly shipping) of their export products abroad. On an average they export 2 to 3 machineries a month which are transported via ships through containers. The Company has already marked its presence in the global market. The Company tagline says Name for Quality and Reliability. They are mainly focused on quality rather than cost cutting that is why they have good number of customers inside and outside India. The problem of transportation is mainly that of shipping, as if they want to export any machinery from their warehouse, they have to take machinery to Cochin sea port of Kerala. This is also one of the reasons which make the company deliver late to their customers.

Recommendations
As they follow a system where the production of a customers order is only started after the customers place the order which results in a long waiting period for the production to be completed and to be delivered. Our suggestion to Gurucharan Industries is that they must build the basic structure of the machines and its spare parts in advance which can be stored in a warehouse and can be used immediately when the order is placed resulting in faster production time and delivery.

Gurucharan Industries has a large complex where the back portion of the ground floor is underutilized by using it as a dumping space of excess steel and other materials, which instead can be used effectively as an in-house warehouse which can be easily accessed by the employees to procure the necessary parts needed in production. The space is ideally large but its open so they must build a wall ideally made of sheets which will be cost effective costing 1 lakh rupees separating the workspace from the warehouse and the floor of the warehouse needs to be tiled and necessary compartments for different parts are to be made which can be built within 2-3 lakhs.
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The space can accommodate 6 large processing machineries. The time required to construct the warehouse will be approximately 3 weeks. From the study it is clearly understood that workers are not fully satisfied with the safety measures which is offered by management. In order to protect the interest and safety of workers, Research team have suggested the Company to organize a one day safety programme which includes various aids of ensuring safety. This safety programme should be conducted in organization with using experts in the field. The Company can take the help of external agencies which offers training programme. There are different local and international agencies which offer these programmes. One of the well-known training agencies in Mangalore is Usha Fire Safety equipments (p) Ltd. They offer various in-house training courses, out of which three are suitable for Gurucharan they are:

Basic Fire Safety and on Site Emergency Preparedness

Objective This programme removes the fear of fire and gives confidence to their people in handling fire emergencies in the initial stage before it is spreading. Scope of the Programme 1. Case Studies of Fire Accidents. 2 On-site Emergency Plan. 3 Chemistry and Classification of Fire. 4 Practical use of Fire Extinguishers on Live Fire. 5 Fighting Fire without Extinguishers. 6 Tips on Evacuation. 7 First Aid for Fire Burns and Life Saving Techniques. 8 Climax - Saving a person on Fire.

Cost and Duration Cost of this programme will be 20,000 rupees and time duration required is 3-4 hours. One set of course material will be given in advance.

Programme on First Aid and Lifesaving Skill

Objectives Life can be saved within the first 3 to 4 minutes by giving First Aid at the accident spot, Preserving Precious Life, Preventing situation becoming worst, Promoting recovery and saving life are the main objectives of the programme. Scope of the Programme 1. Ten Commandments of First Aider. 2. ABC - Airway clearance, Artificial Respiration, Chest Compression (Cardiac Massage). 3. CPR (Cardio Pulmonary Resuscitation). 4. Applications of Splints, Slings and Dressings. 5. Managing Wounds, Fractures, Bleeding, First Aid to Electrocution. 6. Treatment for Burns, Heart Attack, Cardiac Arrest, Fainting Shock, Snake Bite, Heat Stroke, Epilepsy, Frost Bite, Poisonous Gas Inhalation etc. 7. First Aid Kit, Resuscitator and Life Oxygen Pack usage. 8. Transporting causalities, various types of lifts, Rope Technique for Rescue, Stretchers, Earthquake Preparedness, before and after Earthquake and Recovery position. Cost and Duration Cost of this programme will be 18,000 rupees and time duration required is 3-4 hours. One set of course material will be given in advance.

Evacuation / Mock drill (on site emergency Preparedness)

Objective 1. Educating and Training the employees to react for any unforeseen emergency situations like Fire, Earthquake, and Bomb Threat etc. 2. Mock Exercises and Evacuation to build up courage and confidence in employees. 3. To teach Life Saving and rescue techniques to employees and to make them Life Savers. 4. To bring awareness to each and every employee in your organisation in one stretch by bringing them out of the building. Scope of the Programme 1. Survey of the facility/plant by the experts and furnishing guidelines about the requirement such as Escape route planning, Emergency Exits, Identifying Safe Assembly Point, Checking Fire Alarm and Public Addressing System/Siren. 2. Conducting Co-ordination meeting with CRT (Crisis Response Team) members such as Evacuation, Fire Fighting, First Aid, Salvage, Communication and Rescue Team Members. This meeting will be conducted on the same day of the Evacuation Drill for a duration of 1 hour. 3. Conducting Evacuation/ Mock Drill and giving highly motivational and emotional awareness talk to the assembled people. Showing various simple rescue techniques and First Aid ideas by using volunteers out of the assembled crowd. This will be for a duration of 30 to 45 minutes. 4. Basic Do's and Don'ts about Evacuation. 5. Familiarising CRM (Crisis Response Manual) to the Assembled people. 6. Submitting report and certificate as a proof for having conducted the Evacuation Drill. Cost and Duration Cost of this programme will be 20,000 rupees and time duration required is 3-4 hours. One set of course material will be given in advance.

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About the Trainers Experienced and qualified trainers will be coming from Chennai who are fluent in the following languages: English, Hindi, Tamil, Kannada and Telugu. By conducting these programmes the company can reduce the damages and injuries in workplace. On the job training is more effective and beneficial than compared to off the job training. It will make sure that the workers are aware of all the measures which is taken care of while working. Investing in training programme has several advantages to the company.it will benefit the company one or other way. Having trained employees is useful for the

company in improving their work efficiency and it will make all the employees competitive and effective in their work. Need of Personnel Department Company has 58 employees there is need of personnel department because it would be helpful in knowing what employees think about company as there may be complaints in respect of wages, condition of work, allowances or other key areas like work assignment, seniority overtime, leave. Personal department is essential as workplace consist of employee with different personality, work style, background, and levels of experience among employee hence it is required to identify and resolve conflicts and maintain positive relationship in the Company. Personnel department is required to maintain the records as they provide evidence what is going on in the organization. They supply the necessary information to the management to check the policies developed by them also up to date records facilitate management to take right decision about promotion selection transfer etc. Personnel department can help to reveal the causes of good and poor performance it can estimate the individual employee productivity contributing to the overall productivity. If there is a poor employee performance it can organize the training programs so as to overcome weakness and improve their capability and achieve desired performance. If there are any discontent or dissatisfaction in any of the issues it may be lead to decreased productivity of the employees which may in turn affect the overall efficiency of company, therefore personnel department can play a vital role in gauging employee thoughts and solving grievances if any.

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Wage incentive plan stimulates greater output at lower cost and will improve the profit of the company. It also helps in to decrease the gap between management and workers and bring them close together with common goals and targets. With increasing government restrictions the plastic processing and manufacturing industry is lagging behind compared to other industry, hence they should collaborate with other manufacturers and come up with a campaign which can grab the attention of the government and demand them to make the necessary changes which would help to protect the industry and the employees associated with it.

Company has only one marketing personnel looking after all marketing activities. It would be feasible for them to appoint one or more marketing personnels which would help them in recognizing more industrial exhibitions in India and showcase their products. This would enable them to get more clients from potential untapped markets in India

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APPENDIX

Single Die blow film

Twin die blow film

four die blow film

Slitting machine

Water cooled reprocessing plant

Air Force Mixing Machine

Rotate Gazetting Machine

Scrap crusher

Air cooled represso

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BIBILOGRAPHY
www.freedoniagroup.com Freedonia tudyIndex.aspx. en.wikipedia.org/wiki/Plastics engineering. www.ushafire.com/training.html. www.marketresearch.com/Heavy-Industry-c1595/Manufacturing-Constructionc86/Plastic-Manufacturing.

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