INTRODUCTION

Indian rubber is about hundred years old and has become third largest
industry of the nation after steel and textile industry. Rubber is Keralas primary
and prestigious crop. About 90% of the total rubber production in India is
accounted by the state of Kerala. It is cultivated in about 8, 90,000 hectares in the
state and nearly 67% of the total used is covered by rubbers plantation crops.
Natural rubber or natural CSI poly isoprene is produced from rubber tree
HeveaBrasilienis. The tree is also known as courthouse, a name given by Native
Americans, which means weeping tree.
Natural rubber is collected as a milky tapping rubber tree. The most
common method of tapping is cutting of thin portion of the bark in the shape of a
half spiral using a special tapping knife. The milky sap commonly called latex is
a colloidal dispersion in aqueous medium.
The rubber is separated from latex by coagulation. The common coagulant
is acid, preferable formic or acetic acid. The coagulant is separated and the
absorbed water removed by the passing through the pressure rollers.
Subsequently the sheet is passed through corrugated rolls to increase the surface
area by rubbing. These facilities are fast drying. These sheets are then dried in
smoke house at a temperature not exceeding 60 degree Celsius using hot smoke
of burning wood. The creosote compounds in the smoke provide a mild
protection to the rubber.
Hanani Rubbers is one of the leaders in producing rubber mats in India. The
present study is an attempt to examine the organisational performance of the
organisation.

1.1 Scope of the Study

Hanani Rubbers is functioning with 7 departments such as administrative,
finance, purchase, production, sales, marketing and human resource. The scope of
the study covers the examination of the structure of the organisation, evaluation
of function of different departments and collecting information about its products
and assesses the potential for expanding its activities.

1.2 Significance of the Study

An organisation is a social entity that has a collective goal and is linked to an
external environment. By planning, organising, coordinating and cooperation
from various individuals, the organization is able to solve tasks that lie beyond
the abilities of a single individual. The present study on the organisational
performance of Hanani Rubbers is helpful to assess the gap if any in the
application of well accepted principles of management in day to day management
and administration of the company. The study is also helpful for the academicians
to explore new ideas in management and business managers for taking
managerial decisions.

1.3 Objectives of the Study

The following objectives have been set for the study:
1. To acquire knowledge about the progress of rubber industry in India.
2. To study the management practices adopted in Hanani Rubbers
3. To study the functions of different departments and to assess the degree of
coordination in the departments.
4. To identify and examine the market potential of the products of the
company.
5. To identify the strength, weakness, opportunities and threats of the company.
2

1.4 Methodology
The study has been conducted by collecting both primary and secondary data.
Primary data were collected with discussion with managers of different
departments and personal interviews with the employees and labourers of the
company. The method of observation is also adopted with a view to assess the
relationship between different departments, communication system in the
organisation etc.
Secondary data were collected from annual accounts and reports of the company,
reports of rubber board and official website of the company.

Data Collection
Primary Data
1. Discussion: with managers of different departments
2. Data collected from employees through personal interview
3. Observation: by observing the functions of various departments

Secondary Data
Secondary data collected from various books includes:
1. Annual accounts and reports of the company
2. Company web site and general web site
3. Reports of Rubber Board

Reference Period
Secondary data were collected for the period of 5 years from 2007-08, 2008-09,
2009-10, 2010-11 and 2011-12.
3

1.5 Limitations of the Study

The limitations of the study are as follows:
1. The busy schedule of the employees might have resulted in not
incorporating in every aspects of the company.
2. As the confidential information was not supplied, the findings of the study
are arrived with a handicap of such information.
3. An extensive survey is not conducted in collecting primary data

Global Scenario
The production of rubber and rubber products is a large and diverse industry.
Natural rubber, obtained from plantations in Africa and Asia, accounts for only
about 25% of the rubber used in industry. Synthetic alternatives, developed
during World War II, are the primary sources of raw materials today.The world
production of rubber was considered to be very unstable during the last few years.
The latest rubber statistical bulletin and rubber industry report published by the
International Rubber Study Group for October-December 2011 states that,
"Annualized global rubber consumption reached 25.8 million metric tons by the
end of the third quarter of 2011, 6 percent higher than at the same point in 2010,
reflecting a decelerating increase in the demand for vehicles and tires. Global
synthetic rubber production was 7.5 percent higher than at the end of the third
quarter of 2010, in line with the relatively strong growth seen in the consumption
supported by competitive prices, while the global natural rubber supply was 4.1
percent higher than at the end of the third quarter of 2010.

Indian Scenario
Rubber producing regions in India are divided into two zones traditional and
non-traditional.
Traditional zone include Kanyakumari district in Tamil Nadu and all districts of
Kerala.
Non Traditional zone includes coastal regions of Karnataka state, Goa, State of
Andhra Pradesh, some areas of Maharashtra, North-eastern states (mainly
Tripura) and Andaman and Nicobar Islands.
The Rubber industry in India has been growing. This is the result of India's
burgeoning role in the global economy. India is the world's largest producers and
third largest consumer of natural rubber. The high growth of automobile
production and the presence of large and medium industries have led to the
growth of rubber industry in India.
5

Indias production varies from 6 and 7 lakhs tons annually which amount to Rs.
3000 crores. Seventy percent of the total rubber production in India is in the form
of Ribbed Smoked Sheets (RSS). This is also imported by India accounting for
45% of the total import of rubber. The Indian rubber industry has a turnover of Rs
12000 crores. Most of the rubber production is consumed by the tyre industry
which is almost 52% of the total production of India. Among the states, Kerala is
the leading consumer of rubber, followed by Punjab and Maharashtra. The
exports of Indian natural rubber have increased tremendously over the years and
have reached 76000 tons in 2003-04.Though, India is one of the leading
producers of rubber but it still imports rubber from other countries. At present,
India is importing around 50000 tons of rubber annually. There are about 6000
unit comprising 30 large scale, 300 medium scale and around 5600 small scale
and tiny sector units. These units are manufacturing more than 35000 rubber
products, employing 400 hundred thousand people, which also includes 22000
technically qualified support personnel, contributing Rs. 40 billions to the
National Exchequer through taxes, duties and other levies. The Indian Rubber
Industry plays a vital role in the Indian national economy. The rubber plantation
sector in India produces over 630 hundred thousand tonnes of natural rubber and
there is a projected production of more than one million tonnes in near future.
This has helped in the radical and rapid growth of the Indian rubber industry. This
prospect of growth is further enhanced by a boom in the vehicle industry,
improved living standards of the people and rapid over-all industrialization. The
per capita consumption of rubber in India is only 800 grams compared to 12 to 14
kilos in Japan, USA and Europe. So far as consumption of rubber products is
concerned, India is far from attaining any saturation level.
This is another factor leading to tremendous growth prospects of the industry in
the years to come.

Kerala Scenario
Kerala contributes 90% of Indias total production of natural rubber. Also, Kerala
and Tamil Nadu together occupy 86% of the growing area of natural rubber.
Natural rubber is an elastomeric derived from latex of plants. The source of
6

natural rubber in Kerala is from the species Heveabrasiliensis. Actually rubber

plant is not a native

plant of Kerala. Dutch colonialists brought rubber plant to Kerala. But at present
Rubber is an important source of Income for good number of Keralites. Kerala
accounts for 90% out of the total area under rubber cultivation in India. In Kerala
rubber is generally grown in the midlands and high lands including Kottayam,
Pathanamthitta, Kollam and Idukki. In 2009 the production of Rubber in Kerala
increased to 783,000 tonnes. Kottayam grows rubber in over 109,582 hectares
and produces 120,946 tonnes of rubber per annum. Kottayam, the fourth largest
rubber grower in India, produces almost nine percent of the worlds rubber. High
price of rubber has really warmed the Rubber planters in Kerala. But acute labour
shortage is affecting Rubber cultivation in Kerala.

A PROFILE OF HANANI RUBBERS

Hanani Rubbers was incorporated in the year 1981. After its incorporation Hanani
Rubber Industries has been a technological leader in manufacturing, supplying,
and trading high quality rubber products. Hanani Rubber Industries today offers a
diverse range of rubber products from the land of latex, Kottayam, South India.
Made exclusively out of pure natural rubber, straight from its own plantations,
Hanani products find demand in overseas market, worldwide.
Hanani Rubbers is proud to reveal that the products are widely distributed in
world class chain stores-Metro Cash & Carry, Auchan, OBI, Real, Leroy Merlen,
Castorama, Victoria, Hyperglobus, Carrefour, Home Centre through our buyers.
Hanani Rubber Industries an ISO 9001:2008 certified company a works towards
achieving total customer satisfaction. It is committed to give clients product and
service excellence by providing in time delivery and consistent products. It has a
highly skilled, competent, and experienced management team and manufacturing
staff with over 30 years of manufacturing experience. Hence, clients are
guaranteed that they receive only the best products and quality service.
All products pass through quality testing at every step of the production process
starting from the selection of raw materials and mixing of rubber compounds to
completion of the final product. Thus it ensures that each and every unit that goes
out of the production is the best quality.

Vision and Mission of Hanani Rubbers

"The vision is to be recognized as one of the leading manufacturers and suppliers
of molded rubber products. The mission is to ensure total customer satisfaction

and cost effectiveness by providing quality rubber products and delivering them
to the clients promptly."

Objective of Hanani Rubbers

The company aims not just to be considered as a leading supplier of quality
materials but also to develop partnership with its clients, suppliers and
manufacturers.

Organisational Structure
An organizational structure consists of activities such as task allocation,
coordination and supervision, which are directed towards the achievement of
organizational aims. It can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment. An
organization can be structured in many different ways, depending on their
objectives. The structure of an organization will determine the modes in which it
operates and performs.
Organizational structure allows the expressed allocation of responsibilities for
different

functions

and

processes

to

different

entities

such

as

the branch, department, workgroup and individual.

Organizational structure affects organizational action in two big ways. First, it
provides the foundation on which standard operating procedures and routines rest.
Second, it determines which individuals get to participate in which decisionmaking processes, and thus to what extent their views shape the organizations
actions.
Fig. 1 explains the organisational structure of Hanani Rubbers. The top most
authority is the Managing Director followed by the Administrative Department
9

which controls all the other departments. The Purchase Manager, the Human
Resource Manager, the Production Manager, the Sales Manager, the Marketing
Manager, the Finance manager is assistant by their respective assistant under
each department. The middle level management comprising of assistants and
supervisors are supported by the workers comprising the lower level management
in their respective departments.

Chart

10

WORKING RESULTS
The working results of the company during the period from 2007-08 to 2011-12
are given below:

Operating Profit
The operating profit ratio of Hanani Rubbers is given in Table 3.1.
Table 3.1
Operating Profit Ratio of Hanani Rubbers from 2007-08 to 2010-11

(Rs. in Crores)
Operating
Profit (Rs.)

Sales
(Rs.)

Operating
profit ratio
(%)

2007-08

39.66

44.70

.89

2008-09

85.71

272.12

.31

2009-10

222.59

616.11

.36

2010-11

158.85

542.27

.29

2011-12

246.85

665.99

.37

Year

Source: Audited Financial Statements for the period from 2007-08 to 2011-12

11

The Table shows that the operating profit of the company has increased Rs.39.66
crores in 2007-08 to Rs.246.85 crores in 2011-12. The operating profit ratio has
decreased 0.89 per cent in 2007-08 to 0.29 per cent in 2011-12. In 2011-12 the
ratio is 037 per cent.

The trend in the operating profit ratio is present in Fig.2

Trend in Operating Ratio

12

Chart Title
1
0.89

0.9
0.8
0.7
0.6
0.5
0.4

0.37

0.36
0.31

0.29

0.3
0.2
0.1
0
2007

2008

2009

2010

2011

Fig.2

Net Profit
The net profit ratio of Hanani Rubbers is given in Table 3.2.
Table 3.2
Net Profit Ratio of Hanani Rubbers from 2007-08 to 2010-11

(Rs. in Crores)
Year

Net Profit
(Rs.)
13

Sales
(Rs.)

Net profit
ratio (%)

2007-08

26.47

44.70

.59

2008-09

52.12

272.12

.19

2009-10

157.73

616.11

.26

2010-11

105.83

542.27

.20

2011-12

152.02

665.99

.23

Source: Audited Financial Statements for the period from 2007-08 to 2011-12

The Table shows that the net profit has increased from Rs.26.47 crores in 2007-08
to Rs.157.73 crores in 2009-10. However it decreased to Rs.105.83 in 2010-11.
Again it increased to Rs.152.02 crores in 2011-12. The table also reveals that the
volume of sales has increased from Rs.44.70 crores in 2007-08 to Rs.665.99
crores in 2011-12, recording an increase of 1389.92 per cent. The net profit ratio
also shows a decrease of 0.59 per cent in 2007-08 to 0.23 percent in 2011-12.

The trend in the ratio of net profit to sales is presented in Fig.3

Trend in Net Profit Ratio

14

Chart Title
0.7
0.6

0.59

0.5
0.4
0.3

0.26
0.2

0.19

0.2

0.23

0.1
0
2007

2008

2009

2010

2011

Fig.3

The present chapter discusses major characteristics of the products produced by

the company.

4.1. Ring Mat

This multipurpose heavy-duty mat can be used both indoors and outdoors as an
entrance mat, bath mat, laundry mat, snow mat, scraper mat or garden mat under
all weather conditions. They are durable, washable and can be used effectively on
both sides. Ring Mats are of modular design and can be joined to cover large
floor areas by using joiners.
15

PRODUCT SPECIFICATIONS:
Size in cm: 40x50, 40x70, 60x75, 50x100, 80x110, 100x150 approx
Thickness: 2.2 cm approx
Colour: True Black

4.2. Stud Mats

Stud Mats are covered with hundreds of flexible rubber studs/ fingers/
bristles which act as an effective cleaning medium. This mat offers cushioning to
the feet and helps minimize foot fatigue for jobs that involve prolonged standing.
It has an acupressure effect on bare feet.
PRODUCT SPECIFICATIONS:
Size in cm: 46x80, 60x100, 90x 140 approx
Thickness: 1 cm
Colour: True Black

4.3. Wiper Mat

Thin flexible wiper having ribs on the surface wipe away and remove sand and
grit. It is heavy duty cleaning mat. It is all weather resistant and very durable.
Traps dirt in design and prevents tracking. It prevents slipping on ramp ways.
PRODUCT SPECIFICATIONS:
Size in cm: 46x70, 60x100, 90x150 approx
16

Thickness: 1 cm
Colour: True Black

4.4. Radiator Mat

Soft rubber inter-woven plates form a unique design with great cleaning
efficiency and good anti-fatigue properties. Traps grit and sand within design and
does not allow tracking.

PRODUCT SPECIFICATIONS:
Size in cm: 45x75, 60x100, 75x90
Thickness: 1cm
Colour: True Black

4.5. Square Mat

The square mat is a symmetrical designer class mat for use both indoors
and outdoors in all weather conditions. The mat is highly durable and its unique
square print design blends form with function. The differential level flexible stud
ensures proper cleaning and compliments any decor.
PRODUCT SPECIFICATIONS:
17

Size in cm: 40X60, 60x100 approx

Thickness: 1cm
Colour: True Black

4.6. Shoe Mat

Shoe mat is a durable, all-weather rubber mat suitable for indoor and outdoor
use. The unique foot print design with dual level flexible studs makes this mat
very effective in scrapping and collecting dust, sand and slush.

PRODUCT SPECIFICATIONS:
Size in cm: 40x60, 60x100 approx
Thickness: 1cm
Colour: True Black

4.7. Stud Mat-Half Round

Another product catering to the increasing demand is for the popular half
round design. Sturdy studs, bevelled borders anti slip underside combined with all
weather capability make this product unique.

18

PRODUCT SPECIFICATIONS:
Size in cm: 45 x 75 approx
Thickness: 1cm
Colour: True Black

4.8. Honeycomb Mat

General purpose entrance mats. Attractive honeycomb design and

holes in mat trap dust and snow. Bevelled borders prevent tripping. These mats
are very durable and frequent washes do not affect life of the mats.

PRODUCT SPECIFICATIONS:
Size in cm: 40 x 70 approx
Thickness; 1 cm
Colour: True Black

This chapter shows the functional department of Hanani Rubbers. There are seven
departments in the company. The functions of these departments are given below:

5.1. ADMINISTRATIVE DEPARTMENT

This department may coordinate all other department in the organization their
functions are
1. Coordinate the activities of other department.
2. To provide proper guidelines to various departments
19

3. Inform the policy to other department.

4. To communicate the policies of the company to other department
The structure of administrative department is given in fig. 4

Structure of Administrative Department

ADMINISTRATIVE DEPARTMENT

PRODUCTI
ON
DEPARTME
NT

PURCHASE
DEPARTME
NT

SALES
DEPARTME
NT

HR
DEPARTME
NT

FINANCE
DEPARTME
NT

MARKETIN
G
DEPARTME
NT

Fig. 4

5.2. PRODUCTION DEPARTMENT

Production denotes the conversion of the raw materials to semi-finished or

finished product, with the help of certain production process. The main aim of
any production system is to produce economically the goods and services
required by the customer. Production is the process of transferring input into
output. It is the core of every business activities.
20

The structure of production department is given in fig 5

Structure of Production Department

Director
Factory
Manager

Accounts Manager

Admin Manager

Production Manager

Shift
Engineer
Loading Supervisor

Shift Supervisor

Workers

Fig. 5

21

Fig.5 describes the structure of production department of Hanani Rubbers. The

supreme power vests in the hands of the Director. The Factory Manager comes
below the Director. The Accounts Manager, the Administrative Manager and the
Production Manager come under the Factory Manager. A Shift Engineer assists
the Production Manager. Two supervisors viz. Loading Supervisor and Shift
Supervisor fall below the Shift Engineer. Workers come below the Shift
Supervisor.

Raw Materials
The main raw materials are:
a)
b)
c)
d)
e)
f)
g)

Natural Rubber
Synthetic Rubber
Process Oil
Zinc Oxide
Anti-oxidants
Sulphur
Accelerations

Shift
The company adopts 3 shifts. These are:
First Shift - 8.30 AM TO 4.30 PM
Second Shift - 4.30 AM TO 12.30 PM
Third Shift - 12.30 PM TO 8.30 AM
In these shift100 workers are divided and work is assigned to them.

Average Daily Production

Rubber Mat

- 1 ton

22

Machines Used
The details of the machines used in production are given below:
1. K-4MK3 Intermix Accessories

-2

2. Air Compressor

-1

3. Mixing Mill with Accessories

-5

4. Extender with Accessories

-1

5. Calendaring Machine with Accessories

-1

6. 725 Kva Generator

-2

7. Dust Collector & Chimney

-1

8. Overhead Crane

-1

9. Electric Good Lift

-1

10. Hand/Mechanical Pallet Trunk

-4

11. Weight Bridge 30mt Capacity

-1

12. Electric Weighting Machines

-1

13. Industrial Vacuum Cleaner

-1

Quality Control
The word quality refers to the degree of excellence of a product. The
compensation today is cutthroat and every producer tries of to improve the
quality of the product to lure the customer. The Quality control is a systematic
control of those variables which affect the excellence of the ultimate product.
The company uses all types of production oriented quality control, Q1, Q2, Q3,
Q4, Q5, & Q6. The factory manager and the production manager are assigned for
quality control. The absolute quality controls are properly checked in the research
and development groups located at Kottayam.

23

Production Sequence
It is the process of arranging the machines in to one line depending upon the
sequence of operation. Materials are fed in to the first machine and finished
product comes through the last machine. This process is called product layout or
known as straight line layout.

Input Output Process

Stage I - Input of Raw Materials
Stage II Work-in-progress
Stage III - Output
Stage IV - Storage
Stage V - Despatch

Process of Manufacturing
The important steps involved in the manufacture of procured tread are described
below:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Mastication and Mixing

Maturation
Pre-warming
Extrusion
Cooling
Weighting
Moulding
Polishing
Inspection and packing

5.3 FINANCE DEPARTMENT

24

Finance is the life blood of the business. For every activities related to business
finance

is

required.

Finance is

the

study

of

how investors allocate

their assets over time under conditions of certainty and uncertainty. Finance is a
simple task of providing the necessary funds (money) required by the business of
entities like companies, firms, individuals and others on the terms that are most
favourable to achieve their economic objectives. A key point in finance, which
affects decisions, is the time value of money, which states that a unit of currency
today is worth more than the same unit of currency tomorrow. Finance aims to
price assets based on their risk level, and expected rate of return.

Maintenance of Accounts
Accounts in Hanani Rubbers are maintained as per the double entry principles.
The company maintain detailed account of its asset and liabilities, income and
expenditure. At the end of the year accounts are finalized and annual accounts are
prepared. They are properly audited.

The structure of finance department is given in fig. 6

Structure of Finance Department

Director

Data Entry
Operator

GM
Administration

Finance Manager
Cashier

Fig. 6

25

Fig. 6 shows the structure of the finance department of Hanani Rubbers. The
Director is the supreme power. Director is assisted by the General Administrator.
The Finance Manager falls below the General Manager Administration. Data
Entry Operator and Cashier come below the Finance Manager.

The main function of finance department includes:

1. Preparation, submission and filing of Income tax return
2. Maintenance of relationship with banks
3. Identifying the sources of finance
4. Making arrangement for finance with different agencies
5. Financial analysis, planning and control
6. Management of the firms asset structure
7. Management of the firms financial structure
8. Assessing the financial performance and condition of the company
9. Estimating the financial needs of the firm
10. Forecasting and planning the financial future of the firm
11. Cash Management
12. Credit Administration
13. Management Account &Control
14. Internal Auditing
15. Funds Management
16. Preparation of Financial Report
17. Expense Analysis
18. Prepare profitability trend reports and wage analysis

5.4 PURCHASE DEPARTMENT

The company purchase of raw materials from approved suppliers only. The
approved given on the basis of quality text of raw materials price negotiations and
delivery. The company does make forecasting on purchase. The major purchase
26

raw materials like carbon, natural rubber are bought based on the principles of
purchase. The company adopt mainly just in time purchase.

The structure of purchase department is given in fig. 7

Structure of Purchase Department

Director

Purchase
Manager

Office
Supdt

Office
Assistant

Fig. 7

Fig. 7 explains the structure of purchase department. It comprises of the director

at the top level followed by the Director. The Purchase Manager falls below the
Director. The Office Superintendent and Office Assistant assists the Purchase
Manager.

Functions of Purchase Department

1.
2.
3.
4.
5.

Raw Material Study

Market Intelligence Report Analysis
Purchase Policy
Turnover Analysis
Negotiation
27

6. Turnover Analysis
7. Purchase Order
8. Follow Up
9. Rating Under Supplies
10. Vendor rating
11. Purchase Monitoring Invoice Checking etc

Credit Pattern
Hanani Rubbers purchases are of bulk nature and payment is made on cash
payment basis. There is 0% credit against cash purchase. For certain raw
materials like rubber chemicals, the company does take a credit time of 15 to 30
days. The company also provide advance payment for reputed suppliers.

Just in Time Purchase

The company adopts just in time purchase policies. Purchase is made at
the right time. The raw material like rubber is bought into production plant, in one
day advance of the production.

Purchase Pattern
The purchase pattern of Hanani Rubbers is shown in Fig. 8
A
B
C

Right Quality Material

Right Price
Right Delivery
Fig. 8
28

The figure shows the purchase pattern of the company. The company purchases
right quality material at right price and also makes sure it receives the materials at
the proper destination.

5.5 MARKETING DEPARTMENT

Marketing concept was born out of the awareness that a business to start with the
determination of consumer wants and ends the satisfaction of those who wants.
Marketing is the economic process by which goods and services are exchanged
and their value is determined in terms of money.

The structure of marketing department is shown in Fig. 9

Structure of Marketing Department

29

Director

GM
Marketin
g
Dispatch Manager
Sales Officers

HO Sales
Executives

Service Manager

Depot
Manager

Service Men

Depot Sales
Executive

Fig. 9

In the figure the Managing director is the top most authority. The General
Manager of Marketing falls below the Managing Partner. Dispatch Manager Sales
Officers and Service Manager come below the General Manager. Head of Sales
Executive and Depot Manager come below Dispatch Manager Sales Officers and
Depot Sales Executive below Depot Manager. Service men fall below the Service
Executive.

The Fig. 10 explains the marketing process of Hanani Rubbers.

Marketing Technique Adopted by Hanani Rubbers

Product

Depot
Dealers
C &F
Agents
Corporation

Despatch

Fig. 10

Marketing Strategy
30

Customer

Strategic thinking is the key to evolution of successful marketing. The strategies

of Hanani Rubbers involve the following analyses:
1. Understanding Markets: Strategic perspective of the market requires
skilful analysis of the trend and how they affect the market size and
demand for the firms product.
2. Finding market niches: Price, service, convenience and technology are
some of the niches in Indian Market.
3. Product and service planning: Analysis of the customers image of the
brand, both of the firm and competitors and analysis of the situation in
which the customer uses the product.
4. Distribution: Structural changes in inventory management, mobile
distribution process in the Indian market.
5. Managing for result: With pressure on costs, prices, and margins,
marketers will have to make effective utilization of every rupee spent in
marketing.

Market opportunity:
Identification of market opportunity is critical before the management of
affirm a decision to launch or diversify in any product area. This involves
analysis of the size of the market.

Size of the market

Marketing strategies and the extent and quality of services rendered by other
firm in the industry determines the size of the market.
Identification of key success factors in an industry and linking them to a firms
strengthens Hanani Rubbers. How Hanani Rubbers serves the market is
explained in the below Fig 5.8
The Process of Seeking Market Opportunities by Hanani Rubbers

31

Market
segment
analysis

Competition
analysis

Industry
analysis

Trade
analysis
Demand
Conditions

Market Opportunity

Fig. 11

5.6 SALES DEPARTMENT

The concept of sales is that the company has to promote and push. Their products
are aggressively sold in the market. It cannot expect the product to get picked up
automatically by the customer.

Techniques for Improving the Sales

Heavy Advertising
Personal selling
Large scale Sales Promotion
The structure of sales Department is given Fig. 12

Structure of Sales Department

32

Director

Sales
Manager

Department
Manager

Stock Assistant

Accounts Assistant

Computer
Assistant

General
Workers
Asst

Fig. 12
The Fig.12 explains the structure of Sales Department of Hanani Rubbers. The
supreme power vests in the hands of the Managing Partner. Below the Managing
Partner falls the Director, followed by the Sales Manager. The Department
Manager comes below the Sales Manager. Stock Assistant, Accounts Assistant,
Computer Assistant and General Workers Assistant come below the Sales
Manager.

Function
The sale of Hanani Rubber products is based on the following sales policies and
norms:
1. Sales department receives the order from agents, dealers, contractors, etc
and passes the order to the factory for production.
2. Then the product is moved to the dispatch manager and is sold to the
customers as per the order.
3. Order receiving and dispatch are the major function of the sales
department.

33

Distribution Channel

1.
2.
3.
4.

Direct Dealers
C & F Agents
Licensed Parties
Exporters

The company sells its products through the above distribution channels. Hanani
Rubbers has dealers in all states. The company do supply its product based on
agreement.
The Fig. 13 explains the sales technique of Hanani Rubbers.

Sales Technique Adopted by Hanani Rubbers

Sales Order
Finished Product
Despatch The Product
Customers
Fig. 13
34

In the figure the sales technique of the company is shown. After placing the order
for the product, the raw material is converted into finished products. On
completion of the product, the product is being despatch according to the orders
from the customers.

Sales Forecasting
Major forecasting is done at production meeting held at every month. The
members include production engineers, factory managers, supervisors, sales
personnels etc. The company products are seasonal in nature. So seasonal
forecasting is also conducted along with the meeting. Forecasting is conducted in
monthly, quarterly, yearly, basis.
Sales Promotion Policies
1. Right quality product, right price, right time deliver
2. The executives makes periodical visit to the dealers and agents on their
arrival to the head office.
3. Meetings and seminar are conducted occasionally and proper sales
analysis is made for promotion.
4. The company safeguards the customers interest and keeps a very strong
relationship with them.
5. The sales executives make a visit to the agents and people, to provide all
kind of assistance.

5.7 HUMAN RESOURCE DEPARTMENT

Human Resource management is the function performed in organizations that
facilitates the most effective use of people (employees) to achieve organizational
and individual goals. Human Resource management encompasses those activities
designed to provide for and coordinate the human resources of an organisation.
Personnel management is the specialized branch of management that deals with
people in any organization, and it is directly concerned with the companys
welfare and performance of persons who are a part of the operation. When an
individual or a team of individuals takes on this task of setting of programs and
policies that impact everyone associated with the company, they are engaged in
35

the process of personnel management, sometimes referred to as human resources

management.
The function of a personnel manager usually begins with the staffing process.
Someone has to focus on screening and interviewing persons, with an eye to
placing individuals with the right skill sets in the right position within the
company. Along with placement, the HR manager also oversee or at least be
involved in the creation of entry level training programs, as the company continue
education opportunities for existing employees.
Determining company policies and procedures as they relate to personnel is
another important aspect of the personnel management process. HR functions
often include drafting vacation, sick leave, and bereavement policies that apply to
all employees of the company. The personnel management team often is also
responsible for managing the health care program provided to the employees in
the company.
The structure of human resource department is given in Fig. 14

Structure of Human Resource Department

36

Director

Manager
Personnel
In-charge

Factory
Manager

Manager Accounts &

Administration

Fig. 14
Fig. 14 explains the structure of the Human Resource Department. The Managing
Partner heads the Human Resource Department. The Managing Partner is
followed by the Director. Manager Personnel In-charge assists the Director. The
Factory Manager comes below the Manager Personnel In-charge and Manager
Accounts & Administration below the Factory Manager.

Functions of Personnel Department

1.
2.
3.
4.
5.
6.
7.
8.
9.

Recruitment
Maintenance of personnel files
Time keeping
Selection
Management development
Organisation change & organisation development
Job analysis
Human resources planning
Wages and salaries administration

10. Training
11. Introduction & orientation
12. Performance appraisal
13. Career planning & development
14. Develop a maintain quality of work life

Wages
37

Daily wages are given to the workers. They are provided according to rules
framed Board of Directors. Wages is provided by adding basic pay with dearness
allowance.

Other Benefits
The other benefits provide by the company are as follows:
1.
2.
3.
4.
5.
6.
7.

Medical aids
Loans
Night Bata
Overtime allowances
Production incentives
Insurance
Medical allowance leave with wages& Provident fund

Time and Attendance

Strict policy is followed by Hanani Rubbers regarding the attendance and timing.
1. Attendance card
- it is meant for the workers.
2. Attendance register - it is maintained for the office staff.

Health and Safety

Following are the safety measures done by the company as per safety precaution
act
1.
2.
3.
4.
5.
6.
7.

All type of safety cover for rotations pasts

Break system for machinery
Safety belt for above three meters
Pressure vessels safety certificate given by the factory inspector
Fire fighting equipment
Environment safety
All kind of electrical safety

38

Job Rotation & Job Schedule

The rotation and job schedule are favourably done for the both office staff and
workers. Factory manager does job rotation and job schedule for the workers.

Trade Union
The trade union is operating in the company is CITU, INTUC, BMS. Agreement
is made between Hanani Rubbers and the union members. It includes bonus
wages and other allowances.

To analyse the functional performance of Hanani Rubbers, Porters Five Force

Analysis and SWOT analysis is made.

Porters Five Force Analysis

Porter's Five Forces is a framework for industry analysis and business strategy
development formed by Michael E. Porter. It draws upon Industrial Organization
(IO) economics to derive five forces that determine the competitive intensity and
therefore attractiveness of a market. Attractiveness in this context refers to the
overall industry profitability. Three of Porter's five forces refer to competition
from external sources. The remainder is internal threats.

39

Porter's five forces include - three forces from 'horizontal' competition: threat of
substitute products, the threat of established rivals, and the threat of new entrants;
and two forces from 'vertical' competition: the bargaining power of suppliers and
the bargaining power of customers.
(1) Threat of New Entrants
A growing industry often faces threat of new entrants that can alter the
competitive environment. There may however be a number of barriers to entry.
Potential competition tends to be high if the industry is profitable or critical.
In case of Hanani Rubbers, all the retail shops are the customers. Besides this, the
products are also exported to Sri Lanka, U.A.E, Netherlands, Germany and other
Middle East countries.
(2) Threat of Substitutes
The threat of substitution in an industry affects the competitive environment for
the firms in that industry and influences those firms ability to achieve
profitability. The availability of a substitution threat affects the profitability of an
industry because consumers can choose to purchase the substitute instead of the
industrys product. The availability of close substitute products can make an
industry more competitive and decrease profit potential for the firms in the
industry. In case of Hanani Rubbers, the substitute product is synthetic rubber.
Apart from the production of mats, they also concentrate on the production of
sandals in small scale.

(3) Bargaining Power of Suppliers

If there are few suppliers and many buyers supplier bargaining power is high. In
case of Hanani Rubbers, as there are many buyers and it is being exported, the
bargaining power of suppliers is very high.
(4) Bargaining Power of Buyers
The bargaining power of buyers of customers determines how much customer can
impose pressure on margins and volumes .Bargaining power of customers likely
to be high when the gaining power of the buyer is very high.
In case of Hanani Rubbers, the bargaining power of buyers is low.
40

(5) Rivalry Amoung Existing Competitors

Rivalry tends to intensify as the number of competitors increases and as they
firms become more equal in size and capability.

Market rivalry is usually

stronger when demand for the product is growing slowly. The intensity of rivalry
between competitors in rubber industry is high and Hanani Rubbers has
limitations for price fixing. The main competitors of the company are Rubco
Rubbers. Essgee Rubbers & Melbin Enterprises, Vikas rubbers, Angel Rubbers,
Dolphin Rubbers, T.J.P Rubbers and Sharon Rubbers .

Swot Analysis
Setting the objective should be done after the SWOT analysis has been
performed. This would allow achievable goals or objectives to be set for the
organization.

Strengths: characteristics of the business, or project team that give it an

advantage over others

Weaknesses (or Limitations): are characteristics that place the team at a

disadvantage relative to others

Opportunities: external chances to improve performance (e.g. make

greater profits) in the environment

Threats: external elements in the environment that could cause trouble for
the business or project

Identification of SWOTs is essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the
SWOTs.

Strength
The strength of the company includes the following:
1. Good brand image
2. Production of Quality products
3. Fully automated production system
4. Well planned and controlled distribution network
5. Availability of skilled workers
6. Highly satisfied customers
41

7. Availability of highly qualified Employees

8. Good labour relations

Weakness
The weakness of the company includes the following:
1.
2.
3.
4.
5.

Heavy work load for employees and labours

Insufficient promotion activities
Lack of delegation of authority
Lack of support from the government agencies
High amount of wastage

Opportunities
The following opportunities were identified for the company:
1.
2.
3.
4.
5.

Opportunity in increasing production by fully utilizing plant capacity.

Scope for producing diverse products
Potential for setting branch network
Potential for widening the market both national and international
Scope for tie-ups with other firms

Threats
The following are threats of the company:
1. Acute competition in the market
2. Large scale turnover of labourers
3. Rise in price of raw materials
4. Price of Artificial rubber is less than the Natural Rubber

42

43

Findings
The following are the findings derived from the study:
1. 90% of the total rubber production in India is accounted by the state of
Kerala.
2.

Shortage of skilled labours is a major problem of rubber cultivators in

Kerala.

3. Annualized global rubber consumption reached 25.8 million metric tons

by the end of the third quarter of 2011, 6 percent higher than at the same
point in 2010.
4. The Indian rubber industry has a turnover of Rs 12000 crores.
5. India is importing around 50,000 tons of rubber annually.
6. The net profit ratio of the company has shown a decrease of 0.59 percent
in 2007-08 to 0.23 percent in 2011-2012.
7. Seventy percent of the total rubber production in India is in the form of
Ribbed Smoked Sheets (RSS).
8. Indias production varies from 6 and 7 lakhs tons annually which amount
to Rs. 3000 crores.
9. The rubber plantation sector in India produces over 630 hundred thousand
tonnes of natural rubber.
10. The per capita consumption of rubber in India is only 800 grams
compared to 12 to 14 kilos in Japan, USA and Europe.

11. There are 7 major departments of the company comprising of

Administrative Department, Production Department, Finance Department,
Purchase Department, Marketing Department, Sales Department and
Human Resource Department.
44

12. Good brand image, production of Quality products, availability of highly

qualified Employees etc. are the strength of the company.
13. Heavy work load for employees and labours, insufficient promotion
activities, lack of delegation of authority etc. are the weaknesses of the
company.
14. Opportunity in increasing production by fully utilizing plant capacity,
scope for producing diverse products, potential for widening the market
both national and international etc. are the opportunities of the company.
15. Acute competition in the market, large scale turnover of labourers, price
of artificial rubber is less than the Natural Rubber etc. are threats of the
company.

Conclusion

Hanani Rubbers started as a small rubber mat unit in Poovanthuruthu,

Kottayam district in 1981 has now expanded its activities and became one of the
major leaders in the rubber market. Maintaining the consistency in quality and
services is the main aim of the company. Hanani Rubbers is now Indias popular
brand of rubber mat having more than 400 tonnes of sales per year. The dynamic
45

leadership and innovative ideas made Hanani Rubbers as one of the leading
manufacturers of rubber mat products in India.
Hanani Rubbers, ISO 9001: 2008 certified company is having all the plant
facilities and a number of permanent satisfied clients over a period of time. The
company is competent enough because of its product quality and timely dispatch
to the requirement.
The study came to the conclusion that there exist a good system of
management and administration in the company, the employer employee
relationship is better, the products has good market potential and the company has
good potential for widening its activities so as to satisfy the requirements of
national and international markets.

46

Suggestions

1. Steps may be taken by the management to control the waste in the

production process.
2.

Policies decisions may be taken by the management to organize

orientation and refresher training programmes for the employees at
periodical intervals.

3. Initiatives may be taken by the management to institute aggressive sales

promotional activities.
4. Policies initiatives may be taken by the management to institute
collaboration agreements with international market leaders.
5. Discussion may be made with trade union leaders & frame policies
regarding workload, safety arrangements, recreation facilities etc for the
employees and labourers.

47

BIBLIOGRAPHY
REPORTS:

Annual Accounts and Reports of the company

Reports of Rubber Board

BOOKS:

Evertte E Adam and Ronald J Ebert, Production and Operation

Management, Konar Publications Pvt Ltd, Delhi,
2008

K Aswathappa, Human Resource Management, Tata McGraw Hill

Publications, New Delhi, 2010

Philip Kotler, Marketing Management, Prentice Hall, Delhi, 1999

Prasana Chandra, Fundamentals of Financial Management, Tata

McGraw Hill Publications, New Delhi, 2005

Suri. R K, Verma Sanjiv, Organizational Behavior- Text and Cases, .

.

Wisdom publications, Delhi, 2005

Chhabra T. N, Human Resource Management Concepts and Issues,

Dhanpat Rai & Co, Delhi, 2008

V.S.Ramaswamy and S.Namakumary, Marketing Management,

Macmillan

Business Books-2004

JOURNALS & MAGAZINES:

Rubber International Magazine, Vol 14, No. 11

Rubber Asia, Vol 9, No. 7

WEBSITE

www.hananirubbers.com

48