Title of Project Report

FINDING THE POTENTIAL OF THE ITW CONSUMABLES IN THE NORTH INDIA WHERE ITW EQUIPMENTS ARE INSTALLED AND ALSO WHERE ITW EQUIPMENTS ARE NOT INSTALLED.

I declare (a)That the work presented for assessment in this Summer Internship Report is my own, that it has not previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged. (b)That the work conforms to the guidelines for presentation and style set out in the relevant documentation. Date: Abhinav Chugh A0102211070 MBA M&S Class of 2013

CERTIFICATE

I, R.R. GHATAK , hereby certify that Abhinav Chugh , student of Masters of Business Administration Marketing & Sales at Amity Business School, Amity University Uttar Pradesh has completed the Project Report on FINDING THE POTENTIAL OF THE ITW CONSUMABLES IN THE NORTH INDIA WHERE ITW EQUIPMENTS ARE INSTALLED AND ALSO WHERE ITW EQUIPMENTS ARE NOT INSTALLED, under my guidance.

Dr. R.R. GHATAK Assistant Professor Department of Marketing

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. ANUJ AYRI for his guidance regarding the project & also for his support in completing the project. I would like to express my gratitude towards my faculty guide Dr. R.R. GHATAK for his guidance and encouragement which helped me in completion of this project. I would like to express my special gratitude and thanks to industry person, for constant supervision as well as for providing necessary information and giving me such attention and time. My thanks and appreciations also go to my friends, parents and people in the market who have willingly helped me out with their abilities in developing the project.

(ABHINAV CHUGH)

ABSTRACT

Topic of the Report FINDING THE POTENTIAL OF THE ITW CONSUMABLES IN THE NORTH INDIA WHERE ITW EQUIPMENTS ARE INSTALLED AND ALSO WHERE ITW EQUIPMENTS ARE NOT INSTALLED. Project Objective 1. To find identify and minimize the gap between consumption of ITW consumables and equipment.
2. To find out the consumables' potential in the industry where the company's equipment is

already installed and potential customers. 3. To increase ITW's market shares in the consumables in northern sector in India. Methodology to be adopted 1. SPIN - SITUATION, PROBLEM, IMPLICATION, NEED PAY-OFF. 2. APPLICATION SURVEY DOCUMENT ( questionnaire) Brief Summary of the project ITW deals with both consumables and equipment.ITW Signodes comprehensive packaging solutions include products and services. Product offering encompasses strapping, wrapping, taping, and protective packaging consumables, tools and equipment to apply the consumables, and parts. A wide range of services include on - site packaging, on - site maintenance, preventive maintenance, AMCs, field engineering, package testing and packaging design, audit and consultancy. This project basically deals with finding out the Consumables Potential in the North Areas/Industry where the Company's Equipment is installed and with Potential Customers with the
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help of SPIN methodology (SPIN - SITUATION, PROBLEM, IMPLICATION, NEED PAYOFF) and Application Survey Document (questionnaire). My project is to identify the areas and the industry (Customers) where ITW equipments are being used but ITW consumables are not being consumed. Why there is a gap and why are the customer not buying ITW consumables and how can we reduce this gap and increase ITWs market shares in the consumables sector in India i.e. to increase or start the consumption of ITW consumables in the areas or industry where ITW equipments are installed.

CHAPTER 1
5

COMPANY PROFILE

ITW Signode India was incorporated as a private limited company in 1979. With active financial and technical collaboration, the then Nagarjuna Signode started operations in 1984. In 1986, Signode Corporation was acquired by Illinois Tool Works (ITW, US), a Fortune-500 company. ITW being the main collaborator and largest shareholder, its name was changed to ITW Signode India in 1992. Presently ITW holds 51% stake in the company. Today, ITW Signode India is a multi-product, multi-location / market-oriented and profit-making company, gaining a reputation for delivering world-class products in the areas of packaging machinery, equipment, systems and consumables, engineered polymers, quality assurance products, electronic and mechanical systems and components, industrial lubricants and specialty chemicals. It serves the key and core sectors like aerospace, ship-building and repair, defence and electronics, apart from engineering, food processing, fertilizers, petrochemicals, textiles, distilleries and breweries, consumer durables and non durables and a host of other industries. The company set up an edge board manufacturing unit at Silvassa in Sep.'95, which was part financed through a rights issue in Nov.1995. During 199899, the formalities of the merger of Allied Coatings and Compounds (100% subsidiary) with the company have been completed as per scheme of merger approved by honourable high court of Andhra Pradesh. During 1999-2000, the company has decided to withdraw from its Haldia project; due to review from international benchmarking identifying that incremental market requirement can be satisfied by productivity and operational improvements of existing manufacturing facility. Further restructuring programme implemented has begun to provide significant benefits and enabled the company to achieve debt-free status and improve profitability. Recently Illinois Tool Works Inc, US, has made an offer to acquire 11,209,354 fully paid-up shares of Rs. 10 each for Rs. 80 per share in cash. With this offer the parent company stake in the Indian subsidiary, ITW Signode India, will stand increased from the current 51% to 100%. The Company is planning to
6

set up a PET Strapping manufacturing unit and Palletizing/Unitizing Polypropylene Strapping production line unit at Silvassa. The trial productions have already commenced and commercial production is expected to commence shortly.

1) Economic Industry Analysis

One industry that plays and a unique role by way of both creation of wealth through wide range of manufacturing activities and also by way of preserving the wealth or value created by many other industries is the Packaging Industry. Apart from the huge value addition and employment involved in these activities, packaging has served the Indian economy by helping preservation of the quality and lengthening the shelf life of innumerable products - ranging from milk and biscuits, to drugs and medicines, processed and semi-processed foods, fruits and vegetables, edible oils, electronic goods etc., besides domestic appliances and industrial machinery and other hardware needing transportation. Packaging, as distinct from mere packing, plays its most visible and catalytic role in a modern economy with the widespread adoption of branding of products and development of consumer preferences. To the extent that any consumer product is packaged in a manner that meets the criteria of safety, convenience and attractiveness, it gains market share. In the aggregate, packaging as a sect oral activity boosts consumption and economic growth. The packaging industrys growth has led to greater specialization and sophistication from the point of view of health (in the case of packaged foods and medicines) and environment Friendliness of packing material. The demands on the packaging industry are challenging, given the increasing environmental awareness among communities.

1.1) Packaging Industry: India

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Total demand for flexible packaging in Indias two-tiered flexible market in 2010 approached US$3 billion, representing 5% of world flexible packaging sales. Overall flexible packaging demand in India has grown by an average of 22% per annum in the five years to 2010, with the organized sector seeing significant growth stimulated by recent investments by a number of multi-national food processors and retailers. Over 1.1 million tons of substrates were used in 2010 with paper, PE, BOPET and TQPP films accounting for 75% of total volume. The converting industry in India has a few large players with modern technology servicing the organized sector, a vast number of less technically advanced smaller converters servicing the unorganized sector and a few backward-integrated plants owned by major food groups. In the last ten years the technical capability of the Indian converting industry has advanced significantly with the latest technology from Europe, Japan and the US now in use, alongside domestically made printing and laminating presses. India export trade in converted flexible packaging has been growing, with customers in Africa, the Middle East, USA and Europe all recognizing the quality available from some of the larger converters. Imports of converted flexible packaging remain small and largely very low cost products or specialist high-value retort packaging materials. Chewing tobacco packaging accounts for 25 30% of all laminate volume used in the Indian market. Confectionery, snacks and health and beauty products are also significant areas of use. Environmental concerns and government legislators are increasingly guiding flexible packaging choices. One recent decree by the Supreme Court banned the use of plastic (BOPET) film in chewing tobacco laminates in a joint attack on littering and the cancer causing tobacco products. Encouraged by strong economic growth, stimulation in processed food production and retailing and the growing personal disposable incomes of the 350 million middle-income earners in India, will drive growth in the flexible packaging industry over the next five years averaging 15% per annum through to 2015.

Classifications ~ Packing Industry in India:

8

1) Functions of Packages:-

2) Classification of packaging:-

Byshape:-

By methods:9

By contents:-

Indian Packaging Industry Market:10

Demand for packaging of various different types continued to rise in India during 2010. This upswing in demand was driven by high growth in volume sales of the majority of consumer goods categories. The result of the launch of several new consumer goods in categories such as soft drink, alcoholic drinks, dairy, home care products etc and the increase in volume sales of packaged goods at the expense of unpackaged goods helped the overall packaging volume to go up in Indian market. Growth in more organised and modern retailing channels such as supermarkets and hypermarkets was the main driver of this shift towards packaged goods. As these modern retail outlets are better equipped to showcase packaged products compared to Indias traditional retail outlets, the role of packaging in influencing purchasing decisions in-store is greatly increasing and this has made packaging an even more important marketing tool than ever before. The Packaging Industry is valued at INR 846 bn in 2010. In volume terms, the organized sector accounts for the majority of the industry. The report begins with an introduction which gives a brief overview about the types of packaging (by material). This is followed by the market overview section which discusses the market size and the growth as well as market segmentation. The section also includes a portion on the flexible packaging industry, its segmented consumption both in terms of volume and value. It includes information regarding the EXIM market in value and volume terms. An analysis of the drivers influencing the industry growth includes rising income levels, growth in the food and beverage industry, growth in the pharma industry, rise in the FMCG sector, underpenetrated market and marketing trends. The key challenges identified include lack of packaging machinery and rising paper prices.The competition section provides a comprehensive picture about the competitive landscape of the industry. It includes brief profile of the major players which incorporates their business overview, product overview and financials.

Flexible packaging sees wider applications

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Flexible packaging types are being widely adopted across several different product categories such as beverages, home care, beauty and personal care, pet care and various other consumer goods categories. With the use of packaged goods products trickling down from Indias large cities into small towns and villages, the use of sachets and other small flexible packaging types has seen very rapid growth as these tend to carry low unit prices and are affordable to Indias rural masses. Metal packaging grows, driven by urban consumption In India, metal packaging is perceived as a premium and modern global packaging type, especially the metal beverage cans widely used in carbonates. This is because of the higher price of metal packaging compared to other packaging materials. The rising awareness of urban Indian consumers of Western packaging formats, coupled with the increasing affordability of premium packaging types is pushing growth in metal packaging. Both two-piece and three- piece metal cans increased in unit volume in India during the review period, driven by rising demand in key categories such as carbonates, alcoholic beverages, mainly beer, juices, dairy products, beauty and personal care, home care and canned/preserved food. Glass packaging stagnated during 2010 and was fast replaced by other packaging types such as flexible plastic and rigid plastic, demand for glass packaging remained strong in categories such as alcoholic drinks, hot drinks and beauty and personal care. For alcoholic drinks, glass packaging has traditionally been preferred and hence the rapid volume growth in categories such as beer led to increases in glass packaging over the review period. Glass offers excellent moisture resistance and this helped it to remain strong in hot drinks categories. Beauty and personal care manufacturers also continued to adopt glass packaging over the review period as glass has high aesthetic value which lends products a premium image. The rise in competition among consumer goods brand manufacturers and the increasing focus on providing end consumers with the most convenient closures were among the key drivers for this growth. Different packaged food categories such as sauces, dressings and condiments adopted dispensable closures, a positive development from the usual plastic and metal screw closures which were previously popular.

1.3) Demand drivers of packaging industry in India:12

Containment: Most products must be contained before they can be moved from one place to another. To function successfully, the package must contain the product. This containment function of packaging makes a huge contribution to protecting the environment. Faulty packaging (or under packaging) can lead to spillages and result in major losses and serious damage.

Protection and Preservation: Packaging plays a vital role in protecting products as they go from the manufacturer to the consumer. Packaging is designed to ensure that the product reaches the consumer in good condition. The product is protected during transport and Distribution; from climatic effects (heat and cold, moisture, vapour, drying atmospheres); from hazardous substances and contaminants; from infestation.

Supplementary

Product

Protection:

Packaging

can

also

provide

supplementary product protection. This may be achieved by forms of cushioning such as shredded papers, sheets of corrugated paperboard, foamed 13

plastic or wrappings. Packaging therefore contributes to food safety, quality and nutrition. Packaging technology has made major contributions to advancing food science and food safety and reduction of food spoilage. Communication: A package must protect what it sells and sell what it protects. Modern methods of consumer marketing would fail were it not for the messages communicated on the package. The information provided on packaging allows the consumer to make informed decisions on the products purchase and use. Convenience: Packaging plays an important role in allowing products to respond to the Demands and needs of modern consumers. Frozen food packs, microwavable containers, wine cardboard casks, easy-open beverage and food cans and aseptic cartons are good examples of convenience packaging. These types of packaging reflect the demand for convenience and quick food preparation in a way that guarantees freshness. Environmental Aspects: Packaging reduces the amount of waste going to landfill. Without The benefit of packaging to preserve food, a higher proportion of food would become spoiled and consequently consigned to garbage collection for land disposal. Reduction of Pilferage: Packaging of a wide variety of products sold from self-service Counters is designed to reduce stealing. The product may be sold in a blister package sealed to a large paperboard backing. The large card makes the package more difficult to conceal and steal. Marketing Trends: Marketing trends are placing increasing emphasis on the look, sales appeal and quality of retail packaging. Packaging helps sell products by providing product differentiation and presentation, greater brand awareness and convenience. The continuously changing demands of consumers will require higher quality graphics and promotional links between graphics and advertising to support brand identities 14

1.4) Critical success factors of Packaging Industry in India:-

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Urbanization Modern technology is now an integral part of nation's society today with high-end package Usage increasing rapidly. As consumerism is rising, rural India is also slowly changing into An urban society. The liberalization of the Indian economy, coupled with globalisation and the influx of the multi-nationals, has improved the quality of all types of primary and secondary packaging. Increasing Health Consciousness As people are becoming more health conscious, there is a growing trend towards well packed, branded products rather than the loose and unpackaged formats. Today even a common man is conscious about the food intake he consumes in day-to-day life.

Low Purchasing Power resulting in Purchase of Small Packets India being a growing country, purchasing power capacity of Indian consumers is lower; the
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Consumer goods come in small, affordable packages. Apart from the normal products packed in flexible packaging, the use of flexible in India includes some novel applications not usually seen in the developed world. A typical example of such applications is tobacco and betel nut-based intoxicants and mouth fresheners catering to unique Indian taste. Indian Economy Experiencing Good Growth Prospects The Indian economy is growing at a promising rate, with growth of outputs in agriculture, Industry and tertiary sectors. Overall economic growth has proved to be beneficial for the Consumer goods market, with more and more products becoming affordable to a larger section of the population. Increased Global &Rural Marketing Pushing Demand India comprises of a big rural market and there has been growing focus on rural marketing, Low priced Sachets have proved to be extremely popular in smaller towns and villages, where people do not prefer to buy larger packs due to financial constraints. The global market is very volatile and the expectations of the buyers from the west are quite high so as to withstand that demand Indian companies invest a huge amount of their revenue in the packaging solutions. A world-class packaging solution also adds value to the overall product and gives a competitive advantage.

Growth prospects of packaging industry:17

Global plastic packaging materials and products market to reach US$262.6 billion by 2015, according to Global Industry Analysts, Inc. demand for plastic packaging rebounded due to the rising demand from the food and beverage and consumer retail products sector. Plastic materials are fast becoming the preferred choice of manufacturers for packaging new products. With the development of stronger and cost-effective materials with improved barrier protection, and aesthetic qualities, plastic is expected to further encroach into the territories dominated by metal, glass and paper packaging materials The global plastic packaging market is a steadily growing market which is expected to follow a modest growth rate in mature markets and a progressive above average growth rate in emerging markets. The global plastic packaging market will reach US$196.42 billion in 2012. The emerging economies, which in total maintained positive growth during the crisis, will continue to register strong growth, driving demand for sustainable, lightweight, user-friendly and enhanced plastic packaging products in the coming decade. Plastics have increasingly replaced traditional materials in the packaging industry because of their lightweight and superior functionality. The global packaging industry will swell to almost US$820 billion by 2016 predicts Pira International. Driven mainly by increasing demand for packaging in emerging and transitional economies, a 3% pa growth rate will focus on board products and rigid plastics, with US$40 billion and US$33 billion in cumulative predicted growth respectively to 2016. This growth is being driven by a number of broad trends such as growing urbanisation, investment in housing and construction, a burgeoning healthcare sector and the rapid development still evident in the emerging economies, including China, India, Brazil and some eastern European countries.

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According to a research the US was the largest consumer for packaging in 2010 with a demand of US$137 billion; China was close behind at US$80 billion. China is anticipated to surpass the US by 2017, and India will enter the top ten packaging countries with its demand set to almost double in the next five years to US$24 billion. Technological developments in packaging are seeing an upswing in the consumption of bio-polymers in both rigid and flexible applications, improved value adding in products with functional and barrier coatings, as well as enhanced graphics, resource reduction by way of continuous light weighting across all materials, and other developments. . Cosmetics packaging should grow 4.2% per year to reach US$24 billion.

2.1.7) Global Packaging Industry:Global packaging industry is worth US$ 424 billion and out of this Europe has US$127 billion, Asia has US$114 billion, North America has US$ 118 billion, Latin America has US$ 30 billion, and other countries have $US 30 billion. In terms of global market percentage, the following countries are the leaders. This is primarily due to the investments by the industries in these countries is much higher than that off the other countries like India, Australia Etc. these countries are also the major customers for the packaging solutions

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According to the materials used in packaging industry throughout the globe, paper shares the most, 36%, metal is 17%, plastic takes 34%, glass takes 10% and other occupies 3%. According to the type of packaged products, the following pie chart shows distribution of overall packaging industry. Global market value on food packaging is 161 US$ billion, beverage packaging is 76 US$ billion, Pharmaceutical packaging is 21 US$ billion, cosmetic packaging is 13.3 US$ billion and other is 153 US$ billion.

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The prime market driving this growth will be the Asia Pacific region with the likes of India and China making swift progress in the medium to long-term period. The factors influencing this growth are development of new age plastics, emergence of new applications, and the focus on green chemistry due to legislative and environmental requirements. Besides growing demand from the automobile, mining, chemical, construction and agricultural industries, the Asia-Pacific market is propelled by trends such as globalization, demand for durable products and urbanization. With rapid urbanization taking place in the region and globalization happening because of the lucrative opportunities that the APAC market offers, packaging sector is sure to grow by leaps and bounds in the times ahead.

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Major players
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Parksons Packaging System ITC Limited Tata Tinplate Company of India Hindalco Moldtek Technologies Limited Gujarat Glass Ltd Advance Packaging AMAC Plastic Packaging E C Packaging Pvt. Ltd The Paper Products Limited Essel Propack Limited Bliss Group Ltd Deluxe Printing Machinery LindPlast Super Packer System Twenty First Century Printers Ltd Spick Global Eden Hi Tech Films Vacmet Packaging (India) Pvt Ltd Sharda Packaging Industries

Company Analysis
22

Organization Structure

23

24

3.1.1) HR Hierarchy Tree of ITW

25

About the company

ITW Signode: Industrial Packaging Solutions
ITW Signode in India is a division of ITW India Limited, a subsidiary of Illinois Tool Works Inc., USA (ITW). Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturing company with nearly 100 years of history delivering specialized expertise, innovative thinking and value-added products to meet critical customer needs in a variety of industries. ITW has 875 decentralized business units in 54 countries that employ approximately 65,000 women and men. These talented individuals, many of whom have specialized engineering or scientific expertise, contribute to our global leadership in patents. Our current number of patents and patent applications exceeds 21,000.

ITWs Business

26

Signode, a business unit of ITW, is a multinational manufacturer of packaging products with a firm commitment to R&D and an enviable reputation of working with customers to save millions in material and labor. The Company offers customer specific packaging solutions and dedicated service support in diverse sectors that range from metals, automotive, consumer goods, appliances, paper, engineering, building materials, textiles, fibre, pharmaceuticals and other manufacturing industries.ITWSignode in India is the leading Industrial Packaging solutions provider with manufacturing facilities at Rudraram-Andhra Pradesh, Surangi-UT of Dadra & Nagar Haveli, Pune Maharashtra and Rudrapur - Uttarakhand.

ITW Signodes comprehensive packaging solutions include products and services. Product offering encompasses strapping, wrapping, taping, and protective packaging consumable, tools and equipment to apply the consumables, and parts. A wide range of services include on site packaging, on - site maintenance, preventive maintenance, AMCs, field engineering, package testing and packaging design, audit and consultancy. ITW Signode has partnered the Indian industry for over two decades to continuously upgrade pack styles and packaging processes to international standards. The Company offers customer specific packaging solutions and dedicated service support in diverse sectors that range from metals, automobiles, FMCG, white goods, paper, engineering, building materials, textiles, fiber, engineering and pharmaceuticals. Signode, a business unit of ITW, is a multinational manufacturer of packaging products with a firm commitment to R&D and an enviable reputation of working with customers to save millions in material and labor.

27

PRODUCT SERVICES AND OFFERINGS

ITW Signode offers total packaging solutions to the Steel and Metals Industry. This includes hot and cold mills, rod and bar applications, metal service centers, aluminum and other non-ferrous Metals.ITWSignodes product offering includes steel and plastic strapping, protective packaging materials, and a full range of packing films and papers offerings corrosion protection. Container, rail and ship lashing solutions ensure safe transit.

Products of ITW Signode

ITW Signode designs manufactures and suppliers strapping tools and semi-automatic and fully automatic packaging machines to apply these packaging materials. A highly focused parts and service group offers customized service helping to lower your total cost of ownership. To meet industrys growing needs; we also offer printing & labeling systems and integrated warehouse management solutions.

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Services:ITW Signode's pre and post sales services include Contract Packaging, Field Engineering, Machines & Tools Service, Maintenance Contracts, Training, Integrated Tracking and Logistics Management Services and Returnable Transit Packaging Systems.

ITW Signode, offers contract packaging to Key Customers. Contract Packaging can include packing labor, total materials supply, equipment and administration, best practices. This enables customers to focus on core activities, whilst at the same time benefiting from process simplification, single point of contact, and zero packaging inventories. The array of services provided by ITW is with par with industry specified standards. They have different solutions for all the customers requires like Field engineering services sourcing segment specific knowledge to value engineering

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Locations in India

30

Work force distribution

Location AURANGABAD Auto, Engineering and Paper BALARSHAH Auto, Engineering and Paper BANGALORE Accounts & Finance Auto, Engineering and Paper Customer Care Distribution Field Engineering SIHO WINTEK BARODA Automation Group Customer Care Distribution Industrial Metals and Glass BELPAHAR Employee Number 2 2 1 1 14 1 4 1 1 1 1 5 8 2 2 2 2 1

The work force distributions of important locations are mentioned here. The grand total of the number of employees of ITW is 671 people distributed in different locations.

Application Survey Document

31

o o

Material Flow Layout Block Diagram Product Details: a. Dimensions: Min, Max, Average b. Weight: Min, Max, average c. Photograph

Productivity Details: a. Customer UOM b. Capacity c. Peak Output/Hour

Manpower Details a. No of People Involved in Packaging Operation

Packaging: a. Flowchart of Packaging Operation Sequence Wise b. Photographs of Packaging c. Current Packaging Consumables being Used Specifications d. BOM of Packaging Quantity/Consumption per Unit e. Current Equipment/Tools being Used

Additional Details for Palletization: a. Final Pack Size b. No of Units/Pallet c. Gross Weight per Pallet d. Productivity: No of Pallets/Hour & Average Pallets per Month e. Packaging Operations - Flowchart f. BOM of Packing

o o

Existing Material Handling: Forklift/Pallet Truck/Manual Storage/Warehousing: 32

a. Maximum Stacking b. Use of Racks o Truck Loading/Dispatch: a. Stacking during transportation b. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) c. Does the customer Export? If yes, then how many containers per month? o Competitor Details: a. Consumable Supplied & Name of Competitor b. Equipment/tools supplied & Name of Competitor o Operator/User Feedback a. Issues in Existing Packaging/Operations b. Bottlenecks c. Their Ideas on Improvement

SAMPLES OF APPLICATION SURVEY DOCUMENT

33

1. Aaj Enterprises 09/05/12

Application Survey Document o Material Flow Layout Block Diagram

34

o Product Details: Books packed in cartons

a. Dimensions: Min, Max, Average carton size 285 x 285 x 300 mm

b. Weight: Min, Max, average AVG = 15 kg to 20 kg c. Photograph

o Productivity Details: a. Customer UOM : SKU

b. Capacity: 16 lakh units of Inward & Outward movement of stocks per month

and maintaining a stock of 20,000 SKUs.

c. Peak Output/Hour -varies a lot

35

Company details: Inbound Logistics: Receipt of stocks, Checking & Inspection of the stocks, Stacking in Storage racks. Warehousing of Stocks: Warehousing of the stocks in storage racks and preserving them in good condition. Picking: Picking stocks from respective storage racks based on the Pick slips or instructions from customers Cross-Check: Checking out the stocks picked with the pick slip before packing activity Packing: Packing of the stocks picked. Invoicing Experience of handling complete invoicing procedure for clients. Depending on the needs and systems of the clients this facility is made customized and made optional. Pan India Distribution: Distribution of stocks anywhere in India. Owned transport facilities are available 24X7 for local distribution. For outstation deliveries : tie ups with transporters. Reverse Logistics: Checking, inspecting the goods received in the warehouse from the customer. Reconciling the stocks received with the customer statement (Dr. Note). Promotion and non saleable material handling Such as brochures, journals or stock for exhibitions.
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Man power The following man power is provided for manning the above activities Warehouse Manager Supervisor cum data entry operator Picker Packer Security staff for Day & Night Warehouse maintenance staff o Manpower Details

a. No of People Involved in Packaging Operation = Max 3 & Min 2 o Packaging: a. Flowchart of Packaging Operation Sequence Wise

37

b. Current Packaging Consumables being Used Specification Pp strap 1260 S BOM of Packaging Quantity/Consumption per Unit = 2 rolls per day
c. Current Equipment/Tools being Used : MB2 machine

o Additional Details for Palletization:

a. Final Pack Size : 26 inch

b. No of Units/Pallet: 20 to 30 cartons per pallet c. Placement Matrix on Pallet

d. Gross Weight per Pallet: max 500 kg

e. Productivity: No of Pallets/Hour & Average Pallets per Month : o BOM of Packing :

o

Existing Material Handling: Forklift &Manual

o Storage/Warehousing:
a. Maximum Stacking :yes b. Use of Racks : yes

o Truck Loading/Dispatch:
a. Stacking during transportation : yes b. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) : No

c. Does the customer Export? If yes, then how many containers per month? Yes .not disclosed. o Competitor Details: a. Consumable Supplied & Name of Competitor Bopp :
i.

Seal n peal tape 1.5 inch width

38

b. Equipment/tools supplied & Name of Competitor : stretch wrap machine

( lantech) o Operator/User Feedback a. Issues in Existing Packaging/Operations: cost of pp strap & problem in one MB-2 machnine. b. Bottlenecks
c. Their Ideas on Improvement : new project , response awaited

Gupta Metals 15/05/12 Application Survey Document o Material Flow Layout Block Diagram

39

o Product Details: Copper and brass coils a. Dimensions: Min, Max, Average ID = 4 inch to 16 inch OD = 10 inch to 30 inch AVG ID = 8 inch to 12 inch AVG OD = 16 inch to 26 inch Thickness = 8mm to 15o mm b. Weight: Min, Max, average 20 kg to 40 kg AVG = 25 kg to 40 kg c. Photograph

40

o Productivity Details:
a. Customer UOM : tons b. Capacity : 40 to 80 ton per month / min 1000 coils / 650 800 ton per year c. Peak Output/Hour -varies a lot

o Manpower Details a. No of People Involved in Packaging Operation =

41

25 lower level employees + 5 (superior) o Packaging: a. Flowchart of Packaging Operation Sequence Wise

b. Current Packaging Consumables being Used Specification Pp strap, Tenax 1716 (.52 mm thickness), Apex 1215(.38 mm thickness),strapping seal c. BOM of Packaging Quantity/Consumption per Unit i. ii.
iii. iv.

14 pallets in 1 coil of Tanex or 28 metre Tanex strap per pallet 1 complete bopp roll per pallet Almost more than 1 metre pp strap per coil. LDP 30 75 kg 20 metre corrugated paper per pallet
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v.

d. Current Equipment/Tools being Used : tensioner , sealer , cutter , mst

o Additional Details for Palletization:

a. Final Pack Size : 28 inch b. No of Units/Pallet: 12 to 15 coils per pallet depending upon weight

c. Placement Matrix on Pallet

d. Gross Weight per Pallet: 1 ton e. Productivity: No of Pallets/Hour & Average Pallets per Month : 25 pallets per

weak/ 80 pallets per month

f. BOM of Packing : (2+4) 28 m tanex per pallet and o

Existing Material Handling: Forklift &Manual

o Storage/Warehousing:
a. Maximum Stacking :3 layer , yes (3days) b. Use of Racks : No

o Truck Loading/Dispatch:
a. Stacking during transportation : yes b. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) : No

c. Does the customer Export? If yes, then how many containers per month? LOCAL (Mumbai, Gurgaon, Chennai, Delhi) o Competitor Details: a. Consumable Supplied & Name of Competitor Bopp :
i.

wonder tape 2 inch width LDP, corrugated paper and stretch film local company YBICO ( pp strap)

ii. iii.

b. Equipment/tools supplied & Name of Competitor o Operator/User Feedback

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a. Issues in Existing Packaging/Operations: mst table top strength. b. Bottlenecks c. Their Ideas on Improvement : happy with current products

KRBL
Application Survey Document o Material Flow Layout Block Diagram

44

o Product Details: Rice(basmati) in packings of 1kg and 2kg in carton of 20 kg each or sacks of 5kg, 10kg, 20kg, 25kg, 45kg a. Dimensions: Min, Max, Average Avg carton size : 285 x285 x330 mm (HxWxL) b. Weight: Min, Max, average Avg weight: 20 kg per carton and 1 ton per pallet, SACK weights mentioned above c. Photographs o Productivity Details:
a. Customer UOM : tons b. Capacity : 200 300 ton per day c. Peak Output/Hour 1.5 ton per hour ( as one pallet is ready in 40 mins) 45

o Manpower Details a. No of People Involved in Packaging Operation = 10 to 12

o Packaging: a. Flowchart of Packaging Operation Sequence Wise

b. Current Packaging Consumables being Used Specification i. None ( all competitor)

c. BOM of Packaging Quantity/Consumption per Unit

d. Current Equipment/Tools being Used :

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o Additional Details for Palletization:

a. Final Pack Size : 1000x1200x1000 (H x L X W) b. No of Units/Pallet: 50 cartons of 20 kg each per pallet , in case of sacks it varies

on weight of each sack c. Placement Matrix on Pallet

d. Gross Weight per Pallet: 1 ton to 1.2 ton e. Productivity: No of Pallets/Hour & Average Pallets per Month : 250 - 300 pallets

per day/ 9000 pallets per month f. BOM of Packing : 22 meter pp strap per pallet , 22 meter corrugated paper per pallet and

Existing Material Handling: Forklift trucks & automatic cranes

o Storage/Warehousing:
a. Maximum Stacking :3 layer , yes (3days) b. Use of Racks : NO

o Truck Loading/Dispatch:
a. Stacking during transportation : yes b. Do they use any lashing/bracing material (Wire Rope, Strap, Wood, Air Bags) : No

c. Does the customer Export? If yes, then how many containers per month? Yes . details not given o Competitor Details: a. Consumable Supplied & Name of Competitor Bopp : i. ii. iii. 22 meter pp strap per pallet .57 meter per carton / 24000 meters per day/ 6000 meters or 2 rolls per machine per day. Stretch film 25 sq mt per pallet
47

iv. v. vi.

1 bopp roll per pallet Mahastrap 9mm width, Hindustan edisel bopp 1.5 inch ,

b. Equipment/tools supplied & Name of Competitor : Lantech stretch wrap

machine ( semi automatic) turntable, o Operator/User Feedback a. Issues in Existing Packaging/Operations: b. Bottlenecks c. Their Ideas on Improvement : scope for mimalite and pp strap tools and pp strap ( 100 rs diff ) from mahastrap

NAMES OF ORGANIZATIONS/ COMPANIES VISITED

S.No 1 2 3 4 5 6 7 NAME OF THE ORANIZATION / COMPANY AAJ ENTERPRISES , GREATER NOIDA NEEL METALS (JBM GROUP) GUPTA METALS ARCOTECH DENSO BEST KUKI GROZ 48 ITW EXISTING CLIENTS YES YES YES NO NO YES NO

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

UFLEX (NOIDA) HMD NEW ALLENBERRY WORKS KRBL (DOMESTIC LINE) CHW KRBL (INTERNATIONAL EXPORT LINE) KANODIA TECHNOPLAST SUNBEAM AUTO WORKS WRITER LTD OMAXE TILDA RICE SONA KAYO SUNNY EXPORTS RD TEXTILES SHIV COTEX SHEENA EXPORTS N.A.N WOLLEN EXPORTS SUNSTAR LT OVERSEAS BUSH FOODS ASIAN PAINTS HARISON AND HARILAL MEDLEY PHARMA CADILA PHARMA IND SWIFT GULATI OIL MILL DABUR (BARIBRAHMANA KASHMEER WALNUT J.K. OIL MILLS CHENNAB TEXTILES SUMIL CHEMICALS GARA CHEMICALS RECKITT BENKISER (SAMBA) JIARP UFLEX (BARIBRAHMANA) COROMANDAL VARDHMAAN MAX FILMS SONALIKA (INTERNATIONAL TRACTORS) CADBURY PHILIPS 49

OLD , NOT NOW YES YES YES OLD , NOT NOW YES YES NO NO YES YES NO NO NO YES OLD , NOT NOW NO YES YES NO OLD , NOT NOW OLD , NOT NOW YES YES NO NO NO YES YES YES YES YES NO NO YES NO NO NO YES YES YES

49 HAWKINS 50 EMCURE PHARMA

NO YES

ANALYSIS

50

EXISTING CLIENTS 25

NEW CLIENTS/POTENTIAL CLIENTS

OLD CLIENTS AND NOT NOW 20 5

POTENTIAL OF VARIOUS ITW CONSUMABLES

51

1. MIMALITE (STRETCH FILM) 2. PP strap

3. BOPP TAPE &CSM ( CARTON SEALING MACHINE)

4. MB series 5. MST (MACHINE STRAPPING TOOL) 6. TENAX

(A). UNDER EXISTING CLIENTS (SAMPLE SIZE 25 (a) Potential for MIMALITE

52

NO POTENTIAL 11

POTENTIAL FOR MIMALITE 14

(b) Potential for PP Strap

NO POTENTIAL 4

POTENTIAL FOR PP Strap 21

(c) Potential for BOPP TAPE AND CSM (FTM 550)

53

NO POTENTIAL

POTENTIAL FOR CSM & BOPP TAPE 8 17

(d) Potential for MB series (MB-1 & MB-2)

NO POTENTIAL 4

POTENTIAL FOR MB SERIES 21

54

(e) Potential for MST

NO POTENTIAL 15

POTENTIAL FOR MST 10

(f) Potential for TENAX

NO POTENTIAL

POTENTIAL FOR TENAX 55

20

BIBLIOGRAPHY Electronic resources:1) The Indo-Italian Chamber Of Commerce, 2008. Report On Packaging Industry In India.

West Bengal.
2) Madras Consultancy Group, 2001. The packaging industry in India. Chennai 3) Economy Watch, 2010, Packaging Industry Growth. India

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