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I, Makwana Nirav P., the student of LAXMI INSTITUTE OF COMMERCE, SARIGAM, hereby declare that the information presented in this report is correct to the best of my knowledge and has been prepared on the basis of information gained, collected and processed for utilizing my learning in the class of BBA. This report is an original work and has not been presented anywhere before. I have used secondary data in the report, but have provided proper references at suitable places. I undertake the responsibility that in case of any issues relating to plagiarism issue being raised, I would be liable to consequent action by the management.

Date: ______________________ Place: ______________________

___________________________ (Makwana



A Project Report is never successfully completed without the guidance from appropriate person. So now its the right time to express my sincere gratitude towards all those, who have helped me to complete the project. I am thankful to the coordinator Mr. Patel Keyur, distinguished professor of LAXMI INSTITUTE OF COMMERCE for giving me the opportunity to work on this project. It was a great learning experience for me and I could actually put in practice, the learning acquired in the classroom. Also, this project helped me in understanding the overall functioning of the industry. I am also thankful to External Guide Mr. Nimesh Hindocha, A.G.M (Commercial) of UNIFLEX CABLES LIMITED. And also the Internal Guide Mr. Patel Piyush, for giving me valuable suggestions throughout the course of the project. I am also thankful to entire faculty of the institute and staff members of Uniflex Cables Ltd. for the advice and suggestions, without which this project would not be a successful one. Last but not the least I would like to appreciate my parents who have always motivated me directly and indirectly to do my work with utmost dedication.


Every time and for everybody it is not possible to read the whole report but if a person wants to have a quick view but at the same time not a superficial look, executive summary serves the purpose. Executive summary as the name suggest truly summaries the whole report so that the person can have an idea just by reading this part that should he go ahead, whether this is of any importance to him or only a certain part. This report is about the Inventory Management of the Uniflex Cables Ltd the report begins with the introduction of the Power cable Industry, the company overview, its products and its offerings and brief departmental study. The next comes the very essential part that is the research methodology, here how was the research progressed in the entire report is given. Starting with the title of the study. Problem Statement, the objective as to why this study has been carried, the research design applied, where data was collected from, the analysis and the structure of the report. The next is the most important and the core part of the study, that is the Data Analysis, which is the heart of report as to whether calculation done to get the desired solution is shown here. In the detail format step by step progress of the study is shown so that the reader gets the complete idea on the way the final solution is arrived at here interpretation is also given as to what is the result of the calculation. The next is findings of the study, after the thorough efforts put down by the researcher, what findings come out. This can be beneficial to the reader. The later part consists of the suggestions, which is useful for the company to improve their inventory management system. The next part is the Bibliography where all the sources from where various data are collected. Including books, internal datas of the firm and websites are enlisted.


3. 4. 5.

6. 7. 8.

Industrial overview


Indian Cable Production US$ 2.2 billion: The Indian cable production in 2011 was US$ 2.2 billion. This means that the Indian production is comparable to that of France or Mexico, for example. Chinas cable production in 2011 is estimated to be US$ 17 billion, nearly 8 times higher than India. This ratio is much higher than the ratio of Chinas GDP to Indias, as (a) China has many manufacturing industries that are very intensive in their consumption of cable, and (b) China is going through a sustained boom in infrastructure development. Very Large Number of Cable Producers: The Indian cable industry is highly fragmented with a very large number of cable producers many hundreds of companies a larger total than can be found in any other country in the world except China. Many of these Indian companies are small-scale cable producers, the smallest of which are family-run operations with only the most basic of production equipment. Larger Indian Cable Producers: At the other end of the scale in the Indian industry are some relatively large cable producers, but even amongst these larger players there are only a small number whose annual sales of insulated wire & cable approach or exceed US$ 100 million. The larger Indian cable producers include Finolex Cables, the Birla Group (including Universal Cables, Vindhya Telelinks and Birla Ericsson Optical), Sterlite Optical Technologies, Havells India, Nicco Corp. and KEI Industries. These are all listed companies. Polycab is a large privately owned Cable producer, while Hindustan Cables is a state-owned manufacturer of telecom cables. Very Limited Consolidation: The Finolex group, accounts for only 5% of total Indian cable production. In mature markets it would be more usual to find that the largest cable producer had 15% to 20% (and sometimes a much higher percentage) share. There has been only very limited consolidation amongst the major players in the Indian cable industry. The tendency of Indian cable companies to grow organically, rather than by acquisition of competitors, means that no clearly dominant groups have emerged in the Indian cable industry. Many Major Listed Cable Companies: Most of the major cable companies in India are listed companies or are part of large industrial groups that are themselves listed companies. This bias in India towards listed companies contrasts with many other developing regions of the world where listed cable companies are not so widespread as they are in India. In China, for example, only a few of the large cable companies are

listed, as most of the others have developed from state owned enterprises or have been newly established by private entrepreneurs.

Counterfeit Cables an Issue: In mature markets, such as Western Europe, products such as building wire are generally regarded as commodities, with lowest price and availability being the key criteria for purchasers. Quality is a secondary consideration in mature markets, as purchasers usually assume that all cables that have the appropriate product approvals meet the required performance specifications. In India, however, the market situation is different: domestic consumers (e.g. for building wire used in residential construction) are likely to be quality conscious, aware of brands of cable that have a reputation for quality and wary of buying poor quality products.

Foreign Investment in JVs: There are a number of cable-making joint ventures in India involving foreign groups, but there has not been a big movement by foreign investors into Indian cable manufacturing. The track record for foreign investors in the Indian cable industry is generally poor. There are several examples of foreign companies that in the past have established joint ventures in India but which have eventually withdrawn, either due to market conditions remaining poor over a number of years or to consistently weak performance by the joint venture. Cable businesses in India that are wholly owned (or nearly so) by foreign groups are rare. It is interesting that some of the leading global cable groups have no presence in India, except via trading Finolex joint venture with Essar Group Inc., USA. India is not a major cable exporter: India has not traditionally been a major exporter of wire & cable. Total Indian exports reported in the countrys trade statistics for 2011 were US$ 148 million. This compares to 2011 exports from China under the same code of US$ 4.8 billion! The Chinese figure is particularly high, as exports in this trade category include cable assemblies which have been growing very strongly in recent years. But Indian exports Are Growing: Though Indian exports of wire & cable are small compared to many other Asian countries, they have been growing in recent years. Increasing from US$ 38 million in 2005 to US$ 148 million in 2011. One of the main elements of this growth has been cable exports from India to the UAE, up from US$ 8 million in 2005 to US$ 32 million in 2011, including US$ 19 million of winding wire. Part of this growth in trade will be due to booming cable consumption in the UAE, but Dubai is also an important trading centre, so some of the wire & cable imports from India are likely to be reexported.

So Indian cable industries are in developing & competitive mode & will defeat China or Asian industries on the bases of production & export.


1) KEI Industries 2) Birla Ericsson Optical Ltd 3) Aksh Optifibre Ltd 4) CCI Cables Ltd 5) Delton Cables 6) Icon Cables 7) Reliance Cables 8) Aerolex Cables Pvt. Ltd 9) Bhawal Insulation And Engineering Ltd 10) Bright Cable 11) Cable Corporation of India 12) Cords Cable 13) Daksha Cables Pvt Ltd 14) Famcom Rubber Products India Pvt Ltd 15) Finolex Cables Limited 16) Garg Associates Ltd 17) Gemscab Industries Ltd 18) Havells India Ltd 19) Karnataka Cable And Metal Industries 20) KMA Electricals (p) Ltd 21) LC Premium Cables 22) National Cables 23) Nolex Cables 24) Paradise Cables Limited 25) Polycab 26) Uniflex cables Limited 27) Universal Cables

Company overview

Company Performa:
NAME OF THE UNIT YEAR OF ESTABLISHMENT ADDRESS REGISTERED OFFICE UNIFLEX CABLES LIMITED 1981 Apar House, Bldg. No. 5, Corporate Park, Sion-Trombay Road, Chembur, Mumbai 400 071 Tel. : (022) 25263400 / 67800400 Fax : (022) 25246326 Plot No. 158 to 163 and 153, GIDC, Umbergaon 396171 Distt. Valsad (Gujarat) Tel. : (0260) 2562412 Fax : (0260) 2562950 Public Limited Company Indian Bank Syndicate Bank Dr. Narendra D. Desai (Chairman) Shri Kushal N. Desai (Director)



Shri Chaitnya N. Desai (Director) Mr. Vishesh Bhatia (G.M)

Mr. Vijay Kumar Bajaj (COO) AUDITORS REGISTRAR & TRANSFER AGENTS M/s Rashmi Zaveri & Co. Chartered Accountants M/s Karvy Computershare Pvt. Ltd. (Madhapur, Hyderabad 500 081)



Uniflex Cables Ltd. is a state-of-the-art cable manufacturing Company, which has come a long way from being a partnership firm in 1981 to one of the top rated cable Company today. The Company is in a unique position to serve both the segments of cable industries i.e. Power as well as Telecom. The Company has one of the most modern manufacturing facilities at its works at Umbergaon, Gujarat which is 140 kms. from Mumbai (Bombay). Uniflex cables limited, a publicly listed (BSE) entity one of the largest and leading Cable Company in India serving its customers since 1981 with its wide range of cables by its well known Trade name UNICAB & UNIFLEX.

The Company markets its cables under its brand name "UNICAB" which is well known brand in the industry today. The Company has a very wide and varied client profile which not only includes The State Electricity Boards and Department of Telecommunications (DoT) but also The Defense, Nuclear Power Corporation, Directorate General of Mines Safety, Railways and Navy. The Company has imported the state-of-the-art technology from Royale Systems, USA for manufacturing of XLPE Cables and in the Telecom cables for Optical Fibre Cable (OFC) the Company has imported all the major items of Plant and machinery from Swisscab, Switzerland and for Jelly Filled Telecommunication (JFTC) cables from Nokia Maillefer which are again the leading suppliers of these kind of machines in the world. The Company has another advantage that all its plants are strategically located at one site only which not only gives its flexibility of operations but also provide the economics of scale. The Company has achieved an ISO 9001 certification for the quality system related to its Optical Fibre, XLPE, PVC and JFTC cable manufacturing. This certification has been received from NV Kema, a member of the European Network for Quality Assessment and Certification EQNET ". This speaks volume for Company's consciousness towards quality products at affordable prices for its clients. On successful completion of the open offer of its equity share in July 08, by Apar Industries Ltd (AIL) a profit making and dividend paying and listed entity, the Company has 1) become the subsidiary of AIL 2) AIL has become Promoter of the Company and acquired the control and management of the Company. NEW PROMOTER & CHANGE IN MANAGEMENT Apar Industries Ltd (AIL) a listed (BSE & NSE), profit making and consistent dividend paying Company, acquired substantial equity shares with voting rights of the Company from Baid family members, the then promoter group of the Company resulting in change in control and management of the Company.

AIL now holds 65.47% of the paid up Equity share Capital of the Company and has (i) become the Promoter of the Company (ii) acquired control and Management of the Company and (iii) the Company has become subsidiary of AIL. Currently, AIL has two business divisions; (i) Transformer and specialty oils (ii) Conductor each of which has significant market share position in its segment. AIL Conductor business is similar to that of Company and its operations are complimentary to the Companys business. VISION: To become globally recognized by 2015 as an Indian cable manufacturer that provides best quality product at competitive price. MISSION: To build a strong brand through business ethics, Technological expertise, long term relationship with our esteemed customers and maintain superior quality product for customers satisfaction.

Chairman Director Director Director Director Director Name of General Manager of Marketing Manager & Chief Operating Officer Dr. Narendra. D. Desai Mr. Kushal N. Desai Mr. Chaitanya N. Desai Mr. F. B. Virani Dr. N.K.Thingalaya Mr. H. N. Shah Mr. Vishvesh Bhatia Mr. Vijay Kumar Bajaj


Uniflex Cables Ltd. act upon the rules & regulations of the Companies Act, 1948. The company have well defined structure. It has the following departments:

1. HR/ Personnel department 2. Accounts & COSTING departments 3. Purchase departments 4. Store department 5. Production department 6. Quality department 7. Sales & Excise department

Organization Chart:

At UNIFLEX, We believe in the Total Quality Management philosophy as a means for continuous improvement, total employee participation in quality improvement and customer satisfaction. Its concept of quality addresses people, processes and products.


Uniflex believes in offering best quality products to customers at most competitive price The Technical Dept is manned by several engineers having rich experience who design the cable before making a technical offer and issue technical manufacturing design for production on receipt of order

A centralized laboratory has been set up to support Incoming raw material testing, inprocess testing and finished goods internal & external inspection Senior and middle level engineer managers are responsible to ensure technical compliance and quality Cables are periodically Type Tested in-house & at Independent laboratories for design compliance In-house manufacture of PVC and Elastomeric compounds give a competitive edge to ensure product quality The company lays emphasis on investing in latest test and measuring equipments and training its personnel.


1. We will conduct ourselves or business with the highest standards of honesty, integrity and

professionalism. 2. We will recognize the positive contribution that individuals & our team members to produce business successfully. 3. We will encourage a learning environment where people can constantly grow, develop & contribute. 4. We will strive for excellence and seek continuous improve in everything. 5. We will respect all stockholders including employees, customers and suppliers & still them with a passion to deliver the highest quality goods services.



Certificates & Credentials:

ISO 9001:2000 (KEMA) Bureau of Indian Standards (BIS) Bharat Sanchar Nigam Limited (BSNL-1) Bharat Sanchar Nigam Limited (BSNL-2) Bharat Sanchar Nigam Limited (BSNL-3) Bharat Sanchar Nigam Limited (BSNL-4) Department of Telecommunication (DOT-1) Department of Telecommunication (DOT-2) Department of Telecommunication (DOT-3) Ministry of Defence (Indian Navy) National Thermal Power Corporation Limited (NTPC) Research Designs & Standards Organization (RDSO) Telecommunication Engineering Centre (TEC1-1) Telecommunication Engineering Centre (TEC1-2) Telecommunication Engineering Centre (TEC1-3) Telecommunication Engineering Centre (TEC1-4) Telecommunication Engineering Centre (TEC2) Telecommunication Engineering Centre (TEC3) Telecommunication Engineering Centre (TEC4) Telecommunication Engineering Centre (TEC5)

Product Range: ELECTRICAL CABLES: HT & LT Power & Electric Cables:





ERP - Enterprise Resource Planning:

Short for enterprise resource planning, ERP is business management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including development, manufacturing, sales and marketing.

ERP Modules
ERP software consists of many enterprise software modules that an enterprise would purchase, based on what best meets its specific needs and technical capabilities. Each ERP module is focused on one area of business processes, such as product development or marketing. Some of the more common ERP modules include those for product planning, material purchasing, inventory control, distribution, accounting, marketing, finance and HR.

As the ERP methodology has become more popular, software applications have emerged to help business managers implement ERP in other business activities and may also incorporate modules such as CRM and business intelligence and present them as a single unified package. The basic goal is provide one central repository for all information that is shared by all the various ERP facets in order to smooth the flow of data across the organization.

Function of planning department:

The main function of planning department is to take the order report from the top management & study it properly & make planning on it as in specific period they have to complete this task.

On that collected order report they study deeply & make PDS (Production Data Sheet) from that with the help of ERP (Enterprise Resource Planning) system.

PDS contains whole technical specification of the particular order report.

After making PDS they will check in the ERP system as required raw-materials & equipments etc is available on that quantity or not, if it is adequate then ok, & if it is inadequate then they will make PI (i.e. Purchase Indent).

P.I. is a sheet which contains the list of required raw-material & spare parts which will useful in completion of the task.

Then they will submit it to the top management who will study on it & will pass the P.I. to the purchase department for purchase these items in a specific period of time.

Then the planning department will make the monthly plan (schedule) as per the delivery date of the customer.

Then they will inform in a written form to the production department as prepared schedule they have to produce these quantity in a particular time.

After that they will prepare M.I.S. (Monthly Information Summary) report in detail as quantity of the raw-material consumed & quantity of the goods produced in a month & it will submitted to the H.O.D. (Head Of Department).

So these all process is done & maintain in E.R.P. system.

2) Purchase Department:

Function of purchase department:

The main function of the purchase department is that as they will receive the P.I. (Purchase Indent) from the planning department & they will find the suppliers (3 & 4) suppliers who can provide the goods and services as per their requirements and as far as possible.

After finding the suppliers they will send the P.I. to them & after that they will send the quotation to the company with their price.

After the collection of the quotation from the suppliers they will submit to the management who will decide from which supplier they will purchase goods and services.

After selection of the supplier purchase department will make P.O. (i.e. Purchase Order) with the help of E.R.P. system & send it to that selected supplier.

So these all process is done & maintain in E.R.P. system.

3) Store Department:

Function of Store Department:

In Uniflex Cables Ltd, Umbergaon store department is divided into two parts i.e. Engineering Store & Raw-material Store department.

Engineering Store Department:

Engineering store have two divisions i.e. Mechanical & Electrical, in which

mechanical store keeps few items in the store such as,

- Air regulator - Alan key set - Araldite box

- Welding rods - Screws - Pipes

- Nut & bolts - Ball bearings - Connectors - Dies

- Oil seals - Water pumps - Welding glass - Drills

And Electrical store keeps few items such as,

- Aluminum pin type lugs - Aluminum ring type lugs - Bulbs - Bulb holders - Capacitors - Ceramic band heater - Chocks - CFL lamp - Copper pin type lugs

- Digital temperature controller - Emergency stop push button - Efficient light - Hoist push button - Switches - Tube lights - Tube lights side holders - Mica band heater - Copper ring type lugs

Raw-material store keep few materials such as,

1. Aluminum tape 2. S.S. (Stainless Steel) wire 3. Copper tape

4. Aluminum wire rode 5. Copper wire rode 6. Polyester tape & water blocking tape 7. G.I. (Galvanize Iron) wire & strip (For Armoring) 8. Polyethylene master batch (for colour insulation) 9. P.V.C. (Poly Vinyl Chloride) compound. 10. X.L.P.E. (Cross-linked Polyethylene) compound

Photos of raw materials:

Aluminum tape:

S.S. (Stainless Steel)wire:

Copper tape:

Aluminum wire rode:

Copper wire rode:

Polyester tape & water blocking tape:

G.I. (Galvanize Iron) wire & strip (For Armoring):

Polyethylene master batch (for color insulation):

The main purpose of this engineering store is to store those spare parts & equipments which are very useful & easily available at the time of breakdown, so company dont have to wait more time for solution of breakdown of machine, so the company can run efficiently.

In the store department they are using E.R.P. system for keeping & maintaining records. The function is as follows.

1. When goods come from the supplier at factory gate, they will check the collected goods with the invoice & challan, & if it is proper then they will collect it & keep in the inspection place where user will come & inspect the materials.

2. After that they will prepare R.I.R. (i.e. Receiving Inspection Record) & send it to the user.

3. After that user will come & check that collected materials, if it is ok then accepted & keep it in store in proper way & if it will not ok then rejected & those rejected materials send to the supplier for replacement.

4. After accepting they will prepare a G.R.N. (Goods Receipt Note) through the E.R.P. system, in that they will fill all the details have ion the invoice such as, suppliers name and address, material name, quantity & quality, rate, challan & invoice number, challan & invoice date, transporter, vehicle number, inward date, gate entry number, etc.

5. So, all this details are filled in G.R.N. (in E.R.P. system) & take printout in triplicate form, from which one copy will keep in store, one will send to purchase department & one will send along with original invoice to the account department.

6. After preparing and submitting the G.R.N. to the account department than only company will do payment to the suppliers.

7. After preparing G.R.N. they have to prepare I.O.M. (Inter Office Memo), in which they have to fill those G.R.N. which are cleared, & after that they have to submit & mail it to the head of department & A.G.M (Commercial) etc, so they can get the clear record of the goods are received & stored in the company warehouse.

8. In store they are also preparing Gate pass through the E.R.P. system. The gate pass is useful when company wants to send some goods, raw-materials, spare parts etc outside the company.

9. Store department issue the goods by receiving the Store Requisition Cum Issue Slip, in which user have to write product or materials names & their size, quantity as per their requirements.

10. After that only store holder will give the products or materials to the user.

11. After that requisition slip will be entry on the E.R.P. system for maintaining the actual stock.

12. After that store holders will take the stock physically in a monthly basis & then again that figures will be entry on the E.R.P. system so they will get the actual stock.

13. So, in store they maintain their whole record in E.R.P. system & run their business efficiently.

4) Production Department:
Manufacturing Process of H.T. & L.T. Power Cables: The manufacturing process of cable includes eight main stages they are as follows:

Flow Chart:

Conducting (Conductor)

Core / Insulation

Laying up / Tapping

Inner-sheathing (Inner Coating)


Outer-sheathing (Outer Coating)



The explanations of the manufacturing process are as follows: 1) Conducting (Conductor):

The conductor is made from high purity copper or aluminum rods. These rods are drawn to specific diameter wire with excellent smoothness.

Aluminum wire rods are using in more quantity because it cheaper, light in weight, easily available & easily processable.

Copper wire rode conductors are the best conductor but it is costly. Customers first requirement is copper but for cheaper rate they manage in aluminum conductors.

Copper wire rods come in 7 mm form.

Aluminum wire rods come in 9 mm form.

A) Wire Drawing / Rode breakdown machine (RBDM):

The main function of the RBDM machine is to drawing the copper & aluminum wire rods into customers required size or we can say as per customers requirements.

The wire drawing process is quite simple in concept. The wire is prepared by shrinking, so that it will fit through the die, the wire is then pulled through the die. As the wire is pulled through die, its volume remains the same, so as the diameter decreases. E.g. 7 mm to 5 mm & 9 mm to 4 mm.

Lubrication: lubrication in the drawing process is essential for maintaining good surface finish & long die life.

Wet drawing: the dies and wire or rode are completely immersed in lubricant.

Dry drawing: the wire or rod passes through a container of lubricant which coats the surface of the wire or rod.

For lubrication they are using oil.

B) Stranding Machine:

The main function of stranding machine is to prepare conductor as per customer requirement. They can make single conductor from 7 to 91 bobbins as per customer requirements.

2) Core / Insulation:

Core means insulated conductors, we can say insulation done on the conductor is called core. This process is done on the extruder machine.

For insulation they are using P.V.C. (Poly Vinyl Chloride) & X.L.P.E. (Crosslinked Polyethylene) as a material & these both are called as polymers.

For insulation on the conductor they have to add some portion of polyethylene (Colour) master batch.

These Polyethylene (Colour) master batches have in many colours such as, natural, red, blue, black, yellow, & many.

They are using colour master batches as per the conductors and also as per customer requirements.

Insulation for single conductor they are using natural or as per customer requirements.

Insulation for two conductors they are using red and black.

Insulation for three conductor they are using red, yellow, blue.

Insulation for three & half (3.5) conductor they are using red, yellow, blue, black.

Insulation for four conductor they are using red, yellow, blue, black.

If conductor is insulated with X.L.P.E. material, so they must have to do curing process on that insulated conductor.

Curing means one type of heat treatment in which they keep insulated conductors in 90 degree hot water for 3 to 8 hours.

So this is called insulation of the conductors.

3) Laying up / Tapping:

The laying up or tapping is done on the laying machine. The function of the laying up is to bunch the required number of cores through the tapping. Company using copper tape, aluminum tape, polyester tape, water blocking tape etc as a tapping material.

4) Inner-sheathing ( Inner Coating ):

This process is done on the Extruder machine.

Inner-sheath is done on the laid up core.

They use P.V.C. as a material for inner-sheathing.

We can say it is a one type of coating or insulation.

The basic purpose of laid up core sheathing is to protect & prevent the core from moisture, water, chemicals to reach the core during the process, so the main motto is to protect the core.

5) Armoring:

Armoring is done on the armoring machine.

Company is using G.I. (Galvanized Iron) strip & wire & aluminum strip & wire as a material for armoring.

The main purpose of the armoring is to protect insulated cores, & to provide mechanical strength to cable, 7 as a earthing.

For single core cable company uses aluminum strips & wire for armoring.

According to the capacity of the machine, it can hold up to certain number of bobbins, e.g. armoring machine can hold up to 24, 36, 48, & 72 bobbins.

6) Outer-sheathing ( outer coating ):

Outer-sheathing is also called as jacketing or final coating.

For outer-sheathing company are using P.V.C. as a material.

Company are using three types of P.V.C. materials as per customers requirements.

Few customers want simple P.V.C. coating i.e. first type.

Few customers want that type of P.V.C. materials which contains the quality of fire resistance (F.R.) contents.

Few customers want that type of P.V.C. materials which contains the quality of fire resistance & low smoke (F.R.L.S) contents.

So company outer-sheathing as per the customer requirements.

7) Embossing:

Embossing means emboss (make design) on the outer-sheathed cable.

This process is done with the outer-sheathing as embossing equipment is fitted or adjusted with the extruder machine, so it will embossing on the cable.

Embossing equipment contains the companys brand name such as unicab or uniflex, voltage grade, electric, & manufacturing year & can also emboss the customers brand name as per the customer requirements.

8) Testing:

After the outer-sheathing & embossing product will go for the testing.

There are three tests which company has to do compulsorily, i.e. (a) High Voltage (H.V.) test.

(b) Conductor Resistance (C.R.) test. (c) Volume Resistance (V.R.) test.

After all these tests they will send Quality Measure Report (Q.M.R.) to the customer & then they will declare these goods as a finished goods & then go for the packing & dispatching.

So, this is the manufacturing process of the power cables at Uniflex Cables Ltd, Umbergaon.

5) Dispatch Department:

The function of Dispatch Department

The function of the dispatch department is to collect the finished goods from the production & quality checking department with one sheet of paper which contains the customers name, quantity, size, etc from which they have to pack those finished goods and do arrangements for dispatching it through the truck, ship, or through airways as per condition.

After all these they will make report on dispatched goods in detail & submit it to the head of department & higher authority of the company.

So these all process is done & maintain on the E.R.P. system very efficiently.


Uniflex Cables Ltd is a leading manufacturer of Telecom & Power Cables in India. After serving the domestic market for more than 20 years, Uniflex entered the International Market last year. Today, the cables are being exported to more than 25 countries in Middle East, South East Asia, Africa, Australia, Russia and Europe. Backed by its dedicated Export Department & its representatives in various countries, Uniflex Cables has, the ability to dispatch material and & ensure that the immediate & ongoing needs of the clients are met- WORLD WIDE.




Our Esteemed Customers: Industry sector



Inventories constitute the most significant part of current assets of a large majority of companies in India. On an average, inventories are approximately 60% of current assets in public limited companies in India. Because of the large size of inventories maintained by firms. It is therefore, absolutely imperative to manage inventories efficiently in order to avoid unnecessary investment. It is possible for a company to reduce its levels of inventories to a considerable degree e.g. 10 to 20 percent, without any adverse effect on production and sales, by using simple inventory planning and control techniques. The reduction in excessive inventory carries a favorable impact on a companys profitability.

MEANING OF INVENTORY:Inventory is the physical stoke of goods maintained in an organization for its smooth running. In accounting language it may mean stock of finished goods only. In a manufacturing concern, it may includes raw materials, work-in-progress and stores etc. In the form of materials or supplies to be consumed in the production process or in the rendering of services. In brief, Inventory is unconsumed or unsold goods purchased or manufactured.

NATURE OF INVENTORIES:Inventories are stock of the product a company is manufacturing for sale and components that make up the product. The various forms in which inventory exist in a manufacturing company are raw materials, work in progress and finished goods.

RAW MATERIALS:Raw materials are those inputs that are converted into finished product though the manufacturing process. Raw materials inventories are those units which have been purchased and stored for future productions.

WORK IN PROGRESS:These inventories are semi manufactured products. They represent products that need more work before they become finished products for sales.

FINISHED GOODS:Finished goods inventories are those completely manufactured products which are ready for sale. Stock of raw materials and work in progress facilitate production. While stock of finished goods is required for smooth marketing operation. Thus, inventories serve as a link between the production and consumption of goods. The level of three kinds of inventories for a firm depends on the nature of its business. A manufacturing firm will have substantially high levels of all three kinds of inventories, while a retail or wholesale firm will have a very high and no raw material and work in progress inventories. Within manufacturing firms, there will be differences. Large heavy engineering companies produce long production cycle products, therefore they carry large inventories. On the other hand, inventories of a consumer product company will not be large, because of short production cycle and fast turn over. Firms also maintain a fourth kind of inventory, supplies or stores and spares.

It includes office and plant cleaning materials like XLPE & PVC compound, S.S. & G.I wires aluminum, copper etc. These materials do not directly enter production, but are necessary for production process. Usually, these supplies are small part of the total inventory and do not involve significant investment. Therefore, a sophisticated system of inventory control may not be maintained for them.

Inventories constitute the principal item in the working capital of the majority of trading and industrial companies. In inventory, we include raw materials, finished goods, work-in-progress, supplies and other accessories. To maintain the continuity in the operations of business enterprise, a minimum stock of inventory required. However, the physical control of inventory is the operating responsibility of stores superintendent and financial personnel have nothing to do about it but the financial control of these inventories in all lines of activity in which they comprise a substantial part of the current assets is a frequent problem in the management of working capital. Management of inventory is designed to regulate the volume of investment in goods on hand, the types of goods carried in stock to meet the needs of production, and sales while at the same time, the investment in them is to be kept at a reasonable level.


The term inventory management is used in two ways- unit control and value control. Production and purchase officials use this word in term unit control whereas in accounting this word is used in term of value control. As investment in inventory represents in many cases, one of the largest asset items of business enterprises particularly those engaged in manufacturing, wholesale trade and retail trade. Sometimes the cost of material used in production surpasses the wages and production overheads. Hence, the proper management and control of capital invested in the inventory should be the prime responsibility of accounting department because resources invested in inventory are not earning a return for the company. Rather, on the other hand, they are costing the firm money both in terms of capital costs being incurred and loss of opportunity income that is being foregone.


The basic managerial objectives of inventory control are two-fold; first, the avoidance overinvestment or under-investment in inventories; and second, to provide the right quantity of standard raw material to the production department at the right time. In brief, the objectives of inventory control may be summarized as follows:

A. Operating Objectives:

1) Ensuring Availability of Materials: There should be a continuous availability of all types

of raw materials in the factory so that the production may not be help up wants of any material. A minimum quantity of each material should be held in store to permit production to move on schedule.

2) Avoidance

of Abnormal Wastage: There should be minimum possible wastage of

materials while these are being stored in the godawns or used in the factory by the workers. Wastage should be allowed up to a certain level known as normal wastage. To avoid any abnormal wastage, strict control over the inventory should be exercised. Leakage, theft, embezzlements of raw material and spoilage of material due to rust, bust should be avoided.

3) Promotion of Manufacturing Efficiency: If the right type of raw material is available to

the manufacturing departments at the right time, their manufacturing efficiency is also increased. Their motivation level rises and morale is improved.

4) Avoidance of Out of Stock Danger: Information about

availability of materials should

be made continuously available to the management so that they can do planning for procurement of raw material. It maintains the inventories at the optimum level keeping in view the operational requirements. It also avoids the out of stock danger.

5) Better Service to Customers: Sufficient stock of finished goods must be maintained to

match reasonable demand of the customers for prompt execution of their orders. 6) Highlighting slow moving and obsolete items of materials.

B. Financial Objectives:

1) Economy

in purchasing: A proper inventory control brings certain advantages and

economies in purchasing also. Every attempt has to make to effect economy in purchasing through quantity and taking advantage to favorable markets.

2) Reasonable Price: While purchasing materials, it is to be seen that right quality of material
is purchased at reasonably low price. Quality is not to be sacrificed at the cost of lower price. The material purchased should be of the quality alone which is needed.

3) Optimum Investing and Efficient Use of capital: The basic aim of inventory control from
the financial point of view is the optimum level of investment in inventories. There should be no excessive investment in stock, etc. Investment in inventories must not tie up funds that could be used in other activities. The determination of maximum and minimum level of stock attempt in this direction.


The importance or necessity of inventory control is well explained in the terms of the objects of inventory control, which are obtained through it. A proper inventory control lowers down the cost of production and improves profitability of enterprise.


1) Reduction in investment in inventory. 2) Proper and efficient use of raw materials. 3) No bottleneck in production. 4) Improvement in production and sales. 5) Efficient and optimum use of physical as well as financial resources. 6) Ordering cost can be reduced if a firm places a few large orders in place of numerous small orders. 7) Maintenance of adequate inventories reduces the set-up cost associated with each production run.

Risk and cost Associated with Inventories:

Holding of Inventories expose the firm to a number of risks and costs.

Major risks are:

1) Price decline: They may be due to increase in market supply of the product, introduction of
a new competitive product, price-cut by the competitors etc.

2) Product

deterioration: This may due to holding a product for too long a period or

improper storage conditions.

3) Obsolescence: This

may due to change in customers taste, new production technique,

improvements in product design, specifications etc.

The Costs of holding inventories are as follows:

1) Material Cost: This include the cost of purchasing the goods, transportation and handling
charges less any discount allowed by the supplier of goods.

2) Ordering Cost: This includes the variables cost associated with placing an order for the
goods. The fewer the orders, the lower will be the ordering costs for the firm.

3) Carrying

Cost: This includes the expenses for storing and

handling the goods. It

comprises storage costs, insurance costs, spoilage costs, cost of funds tied up in inventories




To know the company plan and business operations. To study the way to ensure uninterrupted supply of materials for continuous operations. How to achieve the target production by using various techniques of inventory control. To know how management concepts applied in practical field. How the company plan and control the operations with the help of inventory techniques by applying inventory management techniques in practical scenario. Here, I attempted to know how the company is functioning and how systematic formats maintain internally and externally and which communication network works effectively & how the records are been maintained and also the new technology that has been introduced in current area.


In Uniflex Cables Ltd, Umbergaon the inventory management is good but in some cases I found the problems regarding the inventory management are as follows

Company is using the ERP system, it is good but in that System Company is not maintaining the ID of all the goods with their size & codes, so in that case they are facing problems.

Company is not maintaining the minimum & maximum level of the stock. In engineering store department company is not keeping the one or two supervisors for night shift, so for that they face problems sometimes.

Company is not maintaining the ordering cost, purchasing cost & carrying cost, so they cant calculate the EOQ.

Company is using the ERP system for inventory management, its good but according to me they have to use the SAP (System Analysis & Program Development) system, so they can maintain all type of data in that SAP Inventory Management System.

So, these are the problems I found during my project work on the company.



The study begun with the basic learning of companys working & personal interview with my companys guidance Mr. Nimesh Hindocha. My session started with the construction of the format of the study & with learning of the production department. The study was descriptive as I had study the project which was suggested by them.



Primary source of data: Primary source of data are the information which are first hand information collected on personal level. - Through external guidance. (Mr. Nimesh Hindocha, AGM, Uniflex Cables Ltd) - Through talking with company employees. (Store, Purchase, Production, Planning)

Secondary sources of data: Secondary sources of data are information already prevailing and had to be recovered from it. Having also referred financial statement of the company and also search on online etc for the

preparation of the project report. Online search was the main reference to the study of whole cable industry. (Firms 21st annual report,

5) Duration of the project:

I have done my project work on the topic of Inventory Management in Uniflex Cables Ltd, Umbergaon, Gujarat from 10th December, 2011 to 10th march, 2012.

Limitation of the study:

Staff of the company was very co-operative as well as understanding. I must specify that Uniflex culture I heard was well maintained there but then too certain limitation had to be faced such as.

Due to certain information being confidential on the companys behalf they couldnt disclose it. (suppliers name)

In some departments I have to face some problems for collecting or understanding data.


In analysis of inventory of Uniflex Cables Ltd, We collect the data by the different sources. We collect the primary and secondary data. SECONDARY DATA: The secondary data are those data the already in presence for specific purpose we use the secondary data about inventory to looks old records of the company. For the daily information about the items I see the daily issue slip of materials and other documentary evidence used for the findings.

In the analysis of inventory the secondary data are not sufficient then we collect primary data. PRIMARY DATA: Primary data are those data that are originated very first time or fresh data with the help of primary data formulated the research objectives. Primary data are the accurate attainable reliable and useful data. Inventory control techniques used by the company Inventory systems as perpetual and periodic systems. Stock levels etc.

1) 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 an 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 is round the same are "B" Items The list of ABC analysis of Uniflex Cables Limited is as under:


Items Included
1) Copper 2) Aluminum wire rode 3) P.V.C. 4) X.L.P.E. 5) Steel 1) Copper tape 2) Aluminum tape 3) Polyester tape 4) Polyethylene master batch 1) packing material 2) Drum 3) Stores & Spares

% Value out of Total Inventory

70 %

20 %

10 %

We study ABC Analysis in Production Management, in which we calculating ABC Analysis in both value & quantity wise. Company is using ABC Analysis but they are calculating only value wise. So, I suggest them to calculate ABC Analysis in both value & quantity wise, so they can know how much value & how much quantity in A, B, & C category. I found that value wise percentage is different but the quantity is almost same in A & B category. So, they have to clarify that & calculate that data in both value & quantity wise.



Definition and Explanation: Economic order quantity (EOQ) is that size of the order which gives maximum economy in purchasing any material and ultimately contributes towards maintaining the materials at the optimum level and at the minimum cost. In other words, the economic order quantity (EOQ) is the amount of inventory to be ordered at one time for purposes of minimizing annual inventory cost.

A = Annual Demand Q = Quantity Ordered O = Cost Per Order C = Carrying Costs Per Unit

Given the above assumptions & symbols, the total costs of ordering & carrying inventories are equal to

TC = QC / 2 + AO / Q

In the equation, the first term on the right hand side is the carrying cost, obtained as the product of average value of inventory holding & the carrying cost per unit. The second term on the right hand side is the ordering cost, obtained as the product of the number of order. The total cost of ordering & carrying is minimized when,




A = Annual Demand / usage of oil seal = 2000 O = Ordering cost per order = 200 C = Carrying cost per unit = 25% of inventory value P = Purchase price / unit = Rs. 8 Here, carrying cost / unit is = Rs 8 * 25% = Rs. 2

Q = 2*2000*200 2 = 632 units

Graphic approach:
The economic order quantity can also be found out graphically. Figure illustrates the EOQ function. In the figure, costs-carrying, ordering and total- are plotted on vertical axis and horizontal axis is used to represent the order size. We note that total carrying costs increase as the order size increases, because, on an average, a larger inventory level will be maintained, and ordering costs decline with increase in order size means less number of orders. The behavior of total cost line is noticeable since it is a sum of two types of cost which behave differently with order size. The total costs decline in the first instance, but they start rising when the decrease in average ordering cost is more than offset by the increase in carrying costs. The economic order quantity occurs at the point Q* where the total cost is minimum. Thus, the firms operating profit is maximized at point Q*.

Minimum total cost

Carrying cost Costs Ordering cost


order quantity (Q)

The EOQ occurs at the point Q* where the total cost is minimum. Thus the firms operating profit is maximized at point Q*. it should be noted that the total cost of inventory are fairly intensive to moderate changes in order size. It may be appropriate to say, therefore that there is an economic order range, not a point. To determine this range, the order size may be changed by some percentage & the impact on total cost may be studied. If the total cost do not change very significantly, the firm can change EOQ within the range without any loss.

3) FSN Analysis:

It is categorizing the items into fast moving F, slow moving S, & non-moving N categories on the basis of consumption pattern of the items under consideration.
Fast moving: They are actively purchased & actively consumed items. Slow moving: They are those items consumed occasionally but rate of consumption is very

slow. For e.g. Stock is total 800 kgs, & monthly average consumption is only 20 kgs. (up to 1 year)
Non-moving items: They are those items which are found in stock but they are not at all

consumed or used by any one. (more than 1 year)

Reasons of accumulation of non-moving inventories:

When old machines are sold, care is not taken to sell old spare parts laying in store. These spares become non moving items.

When new raw material or packing material is introduce care is not taken to consume old material stock.

The finished product is suddenly discontinued by marketing department & hence all raw materials meant for that finished products becomes non moving items.

How to dispose non moving items?

Give it back to supplier at discounted rate. If he is your active supplier & if he is your active supplier & if he knows other users, he will co-operate.

Directly try to contact other users.

Sell to employees if the item has a domestic application. Purify or sort out good pieces if items are non moving because of quality problems. Set it as scrap. Destroy them.


SLOW MOVING GOODS: XLPE Spare parts Screws

NON MOVING GOODS: Old machine spare parts Some of the raw materials

Companys fast moving goods are those which are used in day to day production, & slow moving goods are those goods which are used within one year, & non moving goods are those goods which are not useful for the company so they will dispose these materials as per situation.



Average inventories & sales onwards 2008-2009

year 2008-2009 2009-2010 2010-2011

Average Inventory in Rs. (in corers) 16,07,00,000 26,45,00,000 47,50,00,000

total sales in Rs. (in corers) 90,00,00,000 150,00,00,000 275,00,00,000

Total sales

Inventory turnover ratio =

Average Inventory

Year 2010-2011

The sale of Uniflex cables ltd in year 2010-2011 is 275,00,00,000 & its Average inventory is 47,50,00,000.

Then, = 5.79: 1 Year 2009-2010

Inventory turnover ratio = 275,00,00,000 / 47,50,00,000

Inventory turn in year 2009-2010

Total sales in 2009-2010 = 150,00,00,000 Average inventory = 26,45,00,000

Turnover ratio = 150,00,00,000 / 26,45,00,000 = 5.67:1

Year 2008-2009
Inventory turnover in year 2008-2009

Total sales in 2009 Average inventory

= 90,00,00,000 = 16,07,00,000

Turnover ratio = 90,00,00,000/ 16,07,00,000 = 5.60: 1

Generally, a high inventory ratio means that the company is efficiently managing & selling its inventory. When company investing their fund in inventories their sales also increases. Every year companys inventory increases so their sales also increases, so company is in good position.

Duration: - 3 DAYS Aluminum: 1760 KG X.L.P.E.:- 300KG Inner-sheath P.V.C.:- 130 KG Outer-sheath P.V.C.:- 430 KG G.I. Strip: - 480 KG


Duration: - 3 DAYS Aluminum: - 1520 KG X.L.P.E.:- 600 KG Copper: - 70 KG Inner-sheath P.V.C:- 190 KG Outer-sheath P.V.C:- 600 KG G.I. Strip:-600 KG

Dispatch Department:
Sales: 90,00,00,000 Domestic (44 %): 39,60,00,000 Export (56 %): 50,40,00,000

India U.K south Africa Nigeria Zimbabwe Kenya Iraq Spain

44% 15% 10% 8% 8% 7% 6% 2%

Sales: 150,00,00,000 Domestic (40%): 60,00,00,000 Export (60%): 90,00,00,000

India U.K South Africa Nigeria Zimbabwe Kenya Iraq Syria Spain

40% 17% 8% 7% 7% 8% 7% 3% 3%

2010-2011 Sales: 275,00,00,000 Domestic (30%): 82,50,00,000 Export (70%): 192,50,00,000

India U.K south Africa Nigeria Zimbabwe Kenya Iraq Syria Spain

30% 20% 10% 9% 8% 8% 7% 4% 4%

As per the above detail we can know that companys sales increases year by year because of their performance & their quality consciousness & preparation of goods & services as per customers requirements & wants. And also I found one thing is that their export ratio is also increases year by year, so it is good for the company.



1) Inventory management in uniflex is up to the mark so there less chances to stoppage of production due to inventories.

2) Company find problems regarding suppliers sometimes at the time of shortage & the suppliers are far from the factory.

3) Uniflex meets the demand of the customer due proper maintain of inventory.

4) The firm uses ABC & FSN control techniques to control inventories but they are not

maintaining ABC Analysis in quantity wise.

5) This helped the company to categorize its inventories in order of its priority.

6) Company has kept their non moving goods in store up till now.

7) ERP is also followed in the firm, as it is computerized system the firm can effectively maintain its inventory.

8) The company is facing shortage of manpower in engineering store department.

9) Company is not maintaining the carrying & ordering cost so they are not using EOQ technique.



1) The company should search for any new & close suppliers who can give them rawmaterials at low price with good quality & service. 2) The storage room, where the most of the scrap, wastages, & obsolete items are being stored, it is necessary for them to reduce the disposable items & should make cash out of it as soon as possible. 3) Company has to recruit one or two supervisors for engineering store department so they can reduce their cost. 4) Company has to maintain their minimum level & maximum level stock. 5) Company has to recruit experienced employees in store & production department for maintaining the inventory in proper way. 6) Company has to make ID of all the goods with their full detail i.e. name, size etc in ERP system.

7) Company have to maintain their the carrying & ordering cost so with that they can use EOQ technique. 8) Company should use the SAP program for their inventory management & also they have to train their employees for How to use & maintain all the record in the SAP.



Firms 21st Annual Report Production Management