THE FIELD BASED PROJECT ON ENTREPRENEUSHIP IN

JYOTHY LABORATORIES LIMITED

Submitted by
BASIL JOHN
REGISTER NO: 15397013

Under the Guidance of

Dr. B. Rajeswari
Assistant Professor
Department of Management Studies

DEPARTMENT OF MANAGEMENT STUDIES

SCHOOL OF MANAGEMENT
PONDICHERRY UNIVERSITY
PUDUCHERRY - 605 014.
1

PONDICHERRY UNIVERSITY
SCHOOL OF MANAGEMENT
DEPARTMENT OF MANAGEMENT STUDIES
R.V NAGAR KALAPET, PUDUCHERRY-605014

BONAFIDE CERTIFICATE

This is to certify that this project work entitled, THE FIELD BASED PROJECT ON

ENTREPRENEUSHIP the bonafide record of work done by

BASIL JOHN
(15397013)
in partial fulfillments of the requirements, for the award of the degree of Master of Business
Administration of PONDICHERRY UNIVERSITY. Certified further, that this work report herein does
not from any other project on the basis of which a degree or award was conferred on an earlier date on this
candidate.

INTERNAL GUIDE

HEAD OF THE DEPARTMENT

Submitted on ..

INTERNAL EXAMINAR

EXTERNAL EXAMINER

ACKNOWLEDGEMENT

I would also like to express my Profound gratitude and deep regards to my guide
Dr. B. Rajeswari for her exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by them time
to time shall carry us a long way in the journey of life on which we are about to embark.
I hereby convey my sincere thanks to Dr. Uma Chandrasekaran for giving me an
opportunity to clearly understand ENTREPRENEUSHIP and feel the activities carried out
in an organization through the FIELD ENTREPRENEUSHIP project.
I am sincerely thankful to Mr. R.Karthikeyan FACTORY MANAGER-JLL & Miss.
S.Sakthi Priya HR MANAGER-JLL, for their help and support in completion of this
project and acceptance of my views and ideas
Last, but not the least, my heartfelt gratitude to my family members and friends for their
constant encouragement, support, help and valuable advice in all aspects to make this
project a success.

TABLE OF CONTENTS

SL.NO

CONTENTS

PAGE NO.

1.

ABSTRACT

2.

PROFILE OF THE INDUSTRY

12

3.

GENERAL INFORMATION OF THE COMPANY

14

4.

DEPARTMENTAL PROFILES

18

5.

SUMMARY AND CONCLUSION

33

6.

BIBLIOGRAPHY

34

1. ABSTRACT

1.1 INTRODUCTION
India is a very young nation just over 67 years of independence setting out on a path of sustained
economic growth for decades to come. We already have over a billion fellow Indians. Within the
next 20 years, we will have 400 million people below the age of 35 years more than the entire
population of United States. Each person in this bold new generation will be in the prime of his
her life, striving for a better tomorrow- creating in the process, new growth opportunities, for
budding entrepreneurs! On the most conservative basis, our domestic consumption, in virtually
any sector, has the potential to a least double, or treble, from current levels- perhaps just to catch
up with a country like china. Then there is entire global opportunity, across diverse sector
internationally, the Made in India tag is now an increasing respected brand, valued for quality,
reliability and competitiveness. Truly, with the economic reforms in the country, with the virtual
removal of all trade barriers, the world is now our market and opportunity. The pursuit of the
opportunity requires an indomitable spirit of entrepreneurship:

Entrepreneurship is often a difficult undertaking as a vast of majority of new business

fail.Entrepenunial activities are substantially different depending upon type of organization that is
being started. It ranges in scale from solo projects (even involving the entrepreneur only part time)
to major undertakings creating many job opportunities. Many high profile entrepreneurial ventures
seek venture capital or angel funding in order to raise capital to build the business. Angel investors
generally seek returns of 20-30% and more extensive involvement in the business.

1.2 SCOPE OF ENTREPRENEURSHIP DEVELOPMENT IN INDIA

In India there is a dearth of quality people in industry, which demands high level of entrepreneurship
development programme throughout the country for the growth of Indian economy. The scope of
entrepreneurship development in country like India is tremendous.

Especially since there is widespread concern that the acceleration in GDP growth in the post reforms period
has not been accompanied by a commensurate expansion in employment. Results of the 57th round of the
National Sample Survey Organization (NSSO) show that unemployment figures in 2003-04 were as high
as8.9 million. Incidentally, one million more Indian joined the rank of the unemployed between 2005-06
& 2007-08. The rising unemployment rate (9.2%2008 est.) in India has resulted in growing frustration
among the youth. In addition there is always problem of underemployment.
As a result, increasing the entrepreneurial activities in the country is the only solace. Incidentally,
both there ports prepared by Planning Commission to generate employment opportunities or 10 crore people
over the next ten years have strongly recommended self-employment as a way-out for teaming unemployed
youth. We have all the requisite technical and knowledge base to take up the entrepreneurial challenge. The
success of Indian entrepreneurs in Silicon Valley is evident as proof. The only thing that is lacking is
confidence and mental preparation. We are more of a reactive kind of a people. We need to get out of the sand
become more proactive. What is more important than the skill and knowledge base is the courage to take the
plunge. Our problem is we do not stretch ourselves. However, it is appreciative that the current generations
of youthdo Not have hang-ups about the previous legacy and are willing to experiment. These are the people
who will bring about entrepreneurship in India.
At present, there are various organizations at the country level & state level offering support to
entrepreneurs in various ways. The Govt. of India & various State Govt.have been implementing various
schemes & programs aimed at nurturing entrepreneurship over last four decades.
For example, MCED in Maharashtra provides systematic training, dissemination of the information
& data regarding all aspects of entrepreneurship & conducting research in entrepreneurship. Then
there are various Govt. sponsored scheme for the budding entrepreneurs. Recognizing the importance of the
entrepreneur development in economic growth & employment generation, Maharashtra Economic
Development Council (MEDC) has identified entrepreneurial development as the one of the focus
area for Council activities two years ago.
Various Chambers of Commerce & apex institutions have started organizing seminars
& workshops to promote entrepreneurship. Incidentally, various management colleges have
incorporated entrepreneurship as part of their curriculum. This is indeed a good development. This
shows the commitment of the Govt. & the various organizations towards developing
entrepreneurial qualities in the individuals.

The SSI (Small Scale Industry) today is immense for the growth of the country. Small scale
industries are the industries which are run with the help of hired labor and which also use some
simple machine and power. The investment scale in this industry varies from 5 lakhs to 1 crore for
the fixed assets. Irrespective to number of workers engaged is called small scale unit.
In India these type of industries are promoted to meet with the problems of excess population and
unemployment so the government of India promotes entrepreneur to step up small scale industries
by aiding him by giving loans, subsidiaries, land, guidance etc. The strategy adopted by the
government is:

1. Public entrepreneurship should remain confirmed only to those industries and sectors
where private enterprise, individual or corporate, is generally not attracted, Existing
public entrepreneurship be improved through better management and by putting
relatively greater emphasis on research and development. There is need to streamline
the R & D wing of public sector enterprises.
2. All possible efforts be made very seriously (not casually) for the development of an
industrial culture. It should be realized that the central core of entrepreneurship is the
motive force since by its very nature, entrepreneurship implies positive action and
initiative, motivated individuals with the right kind of combination of abilities and
attributes can pursuer their goal with unremitting courage and enthusiasm.
3. There is need to develop management education and industrial training.
4. The development of backward regions/areas constitutes a new challenge. Programs for
their development be drawn up and should be effectively implemented.
5. Adequate measures are a must for mobilizing and fostering the entrepreneurial talent
in the country. In this context, it should be realized that entrepreneurs are not the gift
of a particular class.
6. Economic administration by the state should be improved and made more effective so
that economic policies may fully achieve their objectives in the overall interest of the
economy.
7. Financial institutions should provide adequate and timely credit and technical
assistance, especially to the small and medium sized enterprises. They may also impart

knowledge about the needs of the economy and they should file their massive data in
terms of growth of new entrants or entrepreneurs in the field of industry.

1.3 SOME FACTS ABOUT SSI:

Small scale industry provides employment. SSI Sector in India creates largest employment
opportunities for the Indian population. It has been estimated from the research that in the
year 2007-2008 the employment provided by the small scale industry was 322.28 lakh.
However for the six years the graph is shown as below:

Small Scale Industry increases production level in country. The small scale sector has
grown rapidly over the years. The growth rates during the various plan periods have been
very impressive. Form the following graph this can be understood.

Thus the above graph shows production from the small-scale sector from the year 2003-04 to
year 2007-08. The graph shows that there is rapid growth in production from the year 2003 to
2008.
1.4 REASON FOR SELECTING THE COMPANY
The reason for selecting the company is to get practical knowledge of the theory studied,
and also to study about the various functions of the organization. And to know how planning,
organizing, staffing, directing and controlling is done in a company. And also to study the inter
relationship between the different departments.

1.5 SCOPE OF THE STUDY

The following are the scope of the studyo To get an idea of organisational structure in the organisation.
o To understand what strategies are adopted by the company to compete with other
companies.
o To study the inter relationship between different departments.
o To know about the overall working condition in the organization.
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1.6 OBJECTIVES OF THE STUDY

The objective of the study are following:o To understand the working of different departments of the organisation.
o To understand the organizational structure of the company.
o To understand about the various products and services they provide.
o To get familiarized with the working environment of the business organisation
o To have a complete knowledge about the system and the processes that helps to build a
committed workforce and also to be aware of the constraints for each and every process

1.7 DURATION OF THE STUDY

The duration of the study was TWO WEEK From 02-01-2016 to 18-01-2016. The
Entrepreneurship was one such learning where we got to learn it directly from the organization
rather than from books. This project has been a valuable experience for us because; today the
organizations dont compete with each other only in terms of turnover but also in terms of their
innovative practices.

1.8 LIMITATIONS OF THE STUDY

The Organization Study at Jyothy Laboratories Ltd. had the following limitations:
1. The detailed data of other companies related to the same business was not available
in order to conduct a comparative study.
2. Some of the data are treated as very confidential and hence they are not revealed.
3. The time period available for the study is limited.
4. Most of the employees were busy with their jobs and the time for interaction was
limited.
5. It is not possible to visit all the divisions in the organization.

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2. PROFILE OF THE INDUSTRY

2.1 INDUSTRY PROFILE

Products which have a quick turnover, and relatively low cost are known as fast moving
consumer goods (FMCG). FMCG products are those that get replaced within a year. Examples of
FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products.
Detergents, as well as other non-durables such as glass ware, bulbs, batteries, paper
products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper and chocolate bars.
A subset of FMCG is fast moving consumer electronics which include innovative
electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and
laptops. These are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as refrigerators, televisions, music
systems etc.
In 2005, the Rs.48000-crore FMCG segment was one of the fast growing industries in India.
According to the A C Nielsen India study, the industry grew 5.3% in value between 2004 and
2005.

2.2 INDIAN FMCG SECTOR

The Indian FMCG sector is the fourth largest in the economy and as a market size of
US$13.1 billion. Well established distribution networks, as well as intense competition between
the organized segments are the characteristics of this sector. FMCG in India has a strong and
competitive MNC presence across the entire value chain. It has been predicted that the FMCG
market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class
and the rural segments of the Indian population are the most promising market for FMCG, and
give brand makers the opportunity to convert them to branded products. Most of the product
categories like jams, tooth paste, skin care, shampoos etc., in India, have low per capita
12

consumption as well as low penetration level, but the potential for growth in huge. The Indian
economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased
literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According to
the study conducted by AC Nielsen, 62 of the top 100 brands and 27 of these are owned by
Hindustan Lever. Pepsi is at number three followed by Colgate, Nirma.
Coca-Cola and Parle. These are figures the soft drink and cigarette companies have always shied
away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in
FMCG. Between them, they account for 35 of the top 100 brands.

13

3. PROFILE OF THE COMPANY

3.1 COMPANY PROFILE

JYOTHY LABORATARIES LTD is a public limited company registered

company under the companies Act 1956. Though a public limited company private parties hold
most of its shares. Hence, practically no public issue is made there are four Board of Directors and
seven members who are from the family of the C.M.D.
This company has a single organization .In this type of organization structure which is
popularly known as line organization .In this type of organization, the line of authority flows
vertically from the top management to the lowest subordinate throughout the entire organizational
structure. In other words, the directions are issued by the men in charge of the whole organization
and are directly conveyed to the person who executes the work. Thus the flow of the authority is
an unbroken line from the manger to the worker.
The Chief Managing director heads the organization structure of the company followed
by the Board of Directors and Vice-president respectively. There are departmental heads who
heads the various departments of the company .There are separate departments for finance, sale,
R&D, project, HRD and marketing. There are managers, assistant mangers, and other officers
workers under the department heads who will be responsible for carrying out the various activities
of their departments in the organization.
The company is the under the control of the C.M.D Mr. M.P.Ramachandran. Final decisions
and approvals are made by him. The managers execute the policy decisions taken by the Board of
Directors. The company owns 21 manufacturing facilities located in 14 locations Trichur,
Wynad, Roorkee, Pondicherry, Chennai, Hyderabad, Bhubaneshwar, Bankura, Guwahati, Baddi,
Silvassa, Salem, Jammu and Pithampur. The companys manufacturing plants are ISO 9001 and
ISO 1400 certified for its quality manufacturing. It has employee strength of 3,500 people. The
company operates 40 depots to service customer requirements. Jyothy has a team of 1,500
marketing personnel and a marketing network of 2,500 distributors.

14

The company has a pan-India presence with a reach to over 750,000 Indian households. The
company exports its products to 14 countries that include Sri Lanka, Bangladesh, Mauritius,
Malaysia, UAE, Hong Kong and Saudi Arabia.
Today Jyothy Laboratories is a multi-product company owning brands like Ujala,
Maxo, Exo, Jeeva and Maya. The company has diversified its operational in area of fabric care,
household insecticide, incense candles and personal care. Jyothy Laboratories owes its genesis to
an unflinching faith in the power of innovation. This urge to innovate has found expression in
every product category, brand and operation of the organization.
The companys research and development facility focuses in area of new formulations, creating
cost effective processes and new product offering.

Business area
Fabric Care
The Company produces clothes whitening solutions, washing powder and starch solutions. JLL
markets these products under the brand name Ujala.

Household Insecticide
The Company manufactures and markets the products under the brand name Maxo.
JIL also manufactures utensil cleansers and markets it under Exo. The company produces incense
sticks and markets it under Maya. It also into the soap segment and has created a brand -- Jeeva.

Allied businesses
It has formed a joint venture with CCL Products (India) for marketing and distribution of coffee
under the Continental Special brand.
The company has entered into an agreement with Godrej Tea to distribute its Godrej Tea brand in
India. It has also formed a joint venture with Balaji Telebrands to manufacture and market incense
sticks and candles

15

Jyothy Laboratories came into being in 1983, promoted by M P Ramachandran. The

company was listed on the Indian Stock Exchanges in Dec 2007 through an IPO and priced at Rs
690. It started by manufacturing and selling a single product, Ujala Supreme. The company has
also expanded from fabric care to fabric care services segment with Fabric Spa, under its subsidiary
Jyothy Fabricare Services Ltd. The company has also inked a MoU to establish a joint venture in
Bangladesh to manufacture and market Ujala and Maxo.
Jyothy Laboratories Limited has a battery of 21 modern manufacturing units at 14
locations across the country. While, these units have been established at strategic locations, to
capitalize on the facilities offered by the Government, many of these units by virtue of being
located in the hinterland, also offer employment opportunities and a fillip to economic
development in the area. Besides, the micro-economic benefits are excellent logistical advantages,
elimination of rise of labour unrest in any location, regional political unrest, transport strike etc.
and ensuring minimum deployment of working capital. All manufacturing facilities and personnel
are sensitized to ensure minimal wastage, promote environmental conservation and maintain high
quality standards. A large field force with over 1500 sales personnel and a network of over 2500
distributors ensure a direct reach of over 1 million retail outlets and an indirect reach of over 1.5
million retail outlets. Jyothy Laboratories Ltd, one of the fastest growing FMCG companies in the
country began its journey in the world of fabric's health, hygiene and beauty care with the launch
of Fabric Spa. Fabric Spa promises to provide 'World Class Laundry at affordable price at your
doorstep'. Fabric Spa is part of Jyothy Fabricare Services Ltd (JFSL). To cater to general public,
JFSL has opened two Fabric Spa outlets on November 09, 2009 at Indiranagar and Sudashivanagar
in Bangalore. JFSL will soon start its door-to-door operations. The initial investment in Fabric Spa
is about Rs. 35crore. The company plans to open ten collection and delivery centers (CDC) and
two quick service stations (QSS) across the city in a year. Fabric Spa services will be later launched
in cities like Chennai, Hyderabad and Pune. The company has constructed a 60,000-sq-ft Main
Service Station on two acres at the Apparel Park at Bangalore, with a capacity to service 40,000
pieces a day or 10 tones. The laundry will offer customized wash depending on the fabric, ironing
packaging, folded / hanger while value added services will include stain removal, starching (stiff
versus soft), super crease, bleaching, whitening, dyeing, darning etc.

16

3.2 ORGANISATION STRUCTURE

BOARD OF DIRECTORS

CHAIRMAN &
MANAGING DIRECTOR

&
DEPUTY MANAGING
DIRECTOR

SALES

GM NORTH

FINANCE &
ACCOUNTS

MARKETING

CFO & CS

DIRECTOR

OPERATIONS

RESEARCH &
DEVELOPMENT

HUMAN
RESOURCES

VP- R&D

GM WEST
GMOPERATIONS

GM
GM EAST

GM SOUTH

AGM

MGRMARKETING

MGR- HR

GM General Manager

VP Vice President

AGM Assistant General Manager

CFO Chief Financial Officer

MGR Manager

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4. DEPARTMENTAL PROFILES
4.1 INTERNAL STRUCTURE
An organization to perform efficiently goes for the diversion of work. Dividing of work
naturally means identifying of individual activities, which in turns helps in organization goals.
But once the various activities are identified then that has to be grouped on some logical
base so that group can be organized Departmentation refers to process of growing activities
into units for the purpose of administration
Jyothy Laboratories Limited departmentation
1. Finance
2. Marketing
3. Human Resources
4. Research and Development
5. Production
6. Sales
7. Quality Control
Finance Department
Jyothy Lab Limited follows a centralized Accounting system. Its having its own
policies. A part of profit is used as working capital. Chef Financial Officer is the head of this
department. Jyothy Lab maintains proper books of account every year
Planning of funds:
Careful estimation of total funds require by the manager is called planning of funds. It
can be either fixed or current asset or also working capital requirement. The working capital
estimation is made by deep analysis as the BSP which deals with the steel production which
needs more capital.

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Allocation of Funds
Not only planning of funds but also to provide the funds to the proper place at proper time
are also an important task to be done by the financial manager the financial manager first
studies the requirement and then distributes funds. It spends most of the amount for the
improvement of the companys services and also for fixed assets like machinery.
Divident Decision
Dividend is the percentage of profit paid to the shareholders. So dividend decision is the
profit how much should a shareholder get paid. The profit percentage is decided after
considering the profit like market price of shares, tax position of shareholder, profitable use
of funds. This varies from year to year depending upon the factor.
Investment Decisions
The decision on the investment whether it should be of capital or assets comprises the
investment decision. The investment in capital asset is done after a careful study over the
profitability, safety liquidity and solvency factor of that asset.
Recording of Information
All the transactions are recorded in the journal and posted to ledger. Each pin of
transaction is recorded that takes places as it helps in better control and effective supervision
of funds.
Preparation of Financial Statements and Evaluation
The financial department will prepare the year ending financial statement to check the
profit and loss of the dairy of that particular year. It also evaluates the post performance and
the present and takes the corrective messages if required.BSP submits its annual reports to the

19

concerned departments regarding its financial strengths and weakness of the firm by properly
establishing relationship between the items of balance sheets, profit and loss account.

DEPARTMENT STRUCTURE

The department structure of finance department in Jyothy Laboratories Ltd is follows.

4.2

FINANCIAL DEPARTMENT

Board of Directors

CLERKS

Managing Director

Chief Manager Finance

Assistant Manager

Account Officers

Clerks

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4.3 HR AND ADMINISTRATION DEPARTMENT

Jyothy Labs a professionally managed company that has sought to build for itself a
stimulating work culture that empowers people, promotes team building, encourages new ideas
and motivates performance. JLL believe in meritocracy and this policy commences with hiring
individuals with the right experience while ensuring that progress in the organization is not
dependent solely on tenure.
As at July 31, 2007, JLL had over 3,400 employees in India . The number of employees in
each of divisions as of that date is follows:
Sales (All India) 1362 employees;
Production (21 factories) employees;
Machine Designing & Fabrication 90 employees;
Information Technology 15 employees;
Research & Development 14 employees; and
Administration (head office and regional officer) 71 employees.
As at July 31, 2007, approximately 475 of employees at two locations were members of trade
unions and JLL entered into wage settlement agreements with then. JLL have had no recent strikes
or work stoppages and JLL have a good relationship with the workforce.

21

DEPARTMENT STRUCTURE

The departmental structure of hr department are listed below

MANAGING DIRECTOR

H R MANAGER

Personnel officer

Legal Officer

Executives

Dept. Staff

22

4.4 DEPARTMENT STRUCTURE OF SYSTEM DEPARTMENT IN JYOTHY

LABORATARIE Ltd.

HEAD OF THE DEPARTMENT

SENIOR MANAGER

ASSISTANT
MANAGER

HARDWARE

SOFTWARE

SECURITY

EXECUTIVE
& Developer
DEVEOLOPER

23

CONNECTIVITY

4.5 Marketing Department

Marketing means art of selling of a product, marketing activity in Jyothy Laboratories is based
on
Product
Price
Place
Promotion

Functions

Selection of appropriate channel of distribution

Maintain

both customer and dealer satisfaction

Planning and supplementary promotional programme

Build up of brand value and corporate image.

PRODUCT
The various product of Jyothy Laboratories Ltd are

Ujala Washing Powder

Stiff &Shine

Exo Dish Wash Bar

Exo Dish Wash Liquid

24

PRICE

The prices of the products are determined by company heads on the basis of production
cost, transportation cost, packaging cost etc.

PLACE
Two types of distribution activity
Company

Distributer

Company

Dealers

Dealers

Customer

PROMOTION
Wall advertisement
T.V advertisement
Wall paintings
Dealer promotion activity
Gifts with product.

25

Customer

The department structure of marketing .

General Manager
(Marketing)

Chief Manager
Marketing Manager

Product manager

Marketing Intelligent
Assistant

Junior Executive

Junior Marketing
Intelligent Assistant

26

4.6 PRODUCTION DEPARTMENT

The process of transformation of input into output can be termed as production.
Jyothy Laboratories Ltd look into
Productivity
Efficiency
Profitability

They are achieving this through cost minimization and quality improvement.

The raw

material used in production process are Cast iron, steel, copper etc. The primary objective of
production department is quality improvement.
The function of the production department is to produce our products on time, to the required
quality levels, at the defined product cost the major concern to the production manager is monthly
output. In both EEL and DUL production managers have monthly targets which they are expected
to strive to meet or exceed. It is very important to note that Production can only meet its targets if
Sales secure orders. Also production costs are dependent on the price we pay for components and
materials, etc.
Securing sales is outside the direct control of Production, but the relationship between Production
& Sales is intense. If sales are down, production targets cannot be met, on the other hand if
Production fails to meet its target output monthly income is down and customers are likely to
complain about late delivery. There is scope for friction between sales and production personnel.
Component and materials procurement is another factor that strongly influences production,
production targets and delivery. If components cannot be purchased at the target price, profits are
down. If components arrive late at our factory production targets may not be met and customers
may experience late delivery. Purchasing of components and materials is carried out by the
Purchasing section of Production. We shall say more about Purchasing later in this unit.

27

The departmental structure of Production Department are listed below-

General Manager (Operator)

Vice president

DGM

DGM

Assistant manager

Junior Executive)

Chief engineer

Deputy Engineer

Helpers

28

4.7 PURCHASE DEPARTMENT

Material Department

is an important functional

area of any organization. The various raw

materials needed for the production is purchased by this department. If the materials are purchased
at right time at the right quality from the right suppliers it results in production of materials as per
the request of inventory control section
OBJECTIVES OF PURCHASE DEPARTMENT

To provide uninterrupted flow of materials and service for company operations

To find relevant source of supply

To buy at the most economic order quantities

PURCHASING PROCEDURE
A) Evaluation of existing suppliers for raw materials
This is the first step in the purchasing procedure. The evaluation of the suppliers is mainly done
on the basis of rating them. There are mainly three types of rating methods they are;

QUALITY RATING

SUPPLY RATING

DELIVERY RATING

QUALITY RATING
Quality rating is done on the basis of the quality of the raw materials before purchasing it. The raw
materials are tested by the quality control department and make sure that the raw materials are of
best quality and non hazardous

SUPPLY RATING
The supply rating checks the suppliers ability to supply the raw materials at right time. The rating
is done on the basis of a quality technique.

29

DELIVERY RATING
This is calculated on the basis of the correct time of the delivery of the materials

A) Registration assessment of potential suppliers

B) Purchasing order
C) Purchasing
D) Verification of the purchases products

STRUCTURE OF PURCHASE DEPARMENT

Board of Directors

AGM Purchase

Asst Managers

Senior Officers

Officers

30

LEVELS OF MANAGEMENT
The organization has got three levels of management:
TOP LEVEL
It includes board of directors, chairman, managing director and chief general manager and senior
executive come under this level. They are concerned in determining policies, plans and procedures
of the Union
MIDDLE LEVEL
It includes all the department heads, Such as, General Manager for personnel, Financial and
Processing department, marketing department.
LOWER LEVEL
It includes all the clerks and employee working under different department. These clerks and
employees are working under the guidance and control of the departmental heads i.e., of General
Manager.
STRATEGY
Jyothy Lab intends to work toward achieving the vision and to grow business by implementing the
following key strategies.
1. Leverage the dominant Ujala brand with other branded fabric care products, the Ujala Stiff
and Shine and Ujala Washing Powder. JLL believe that the well-known brand eqity of
Ujala and wide distribution reach will help successfully develop Ujala stiff and shine as a
national brand and Ujala washing powder as a strong regional brand.
2. JLL plan to increase the market share and presence of the Maxo products those liquid
vaporizers, aerosol spray and coils.
3. JLL intend to utilize wide distribution network and marketing expertise to attract joint
venture partners with existing branded products as well as new and innovative product
ideas.
31

4. JLL seek to improve efficiencies and cost from the sourcing of the raw materials to the
supply of products to consumers.
5. JLL seek to increase focus on supermarket and hypermarket sales.
6. JLL intend to make acquisitions in the future as part of our growth strategy in India and
intend to target acquisitions which will strengthen market position in key product areas or
manufacturing capabilities.

STAFF
The success of JLL is dependent on the expertise and services of the management team it includes
all employees and staffs in the organization. It has over 3,400 employees in India and the
organization has established a distribution network across India with a sales staff of over 1,500
people serving approximately 2,500 distributers.
The sales force headed by four general managers included 36 state managers, 165barea officers
and 1,165 market intelligence assistants.
All the employees are given PUNCH CARD to use it as a record of their presence. It also owns
a time recording machine for employees.
SHARED VALUES
The basic philosophy of Jyothy Laboratories Limited is to achieve business excellence and to
create and enhance the value for its share holders, Customers, Employees and Business Associates
and thereby to make a significant contribution to the Economy. The company endeavors to achieve
the highest level of transparency, accountability, integrity and responsibility by following the best
practices in Industry.

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5. SUMMARY AND CONCLUSION

The entrepreneur with his vision and ability to bear risk can transform the economic scene
of the country. They play a vital role in initiating and sustaining the process of economic
development of a nation. The overall aim of an entrepreneurial development programme is to
stimulate a person for adopting entrepreneurship as a career and to make him able to identify and
exploit the opportunities successfully for new ventures. Practical and cost effective programs need
to be developed to address their needs because self-employed people will represent important
segment in economic revitalization. Entrepreneurship development is the key factor to fight
against unemployment, poverty and to prepare ourselves for globalization in order to achieve
overall Indian economic-progress.

The study was conducted to understand the working of different departments of Jyothy
Laboratories. Ltd. The study has helped me to understand the day to day business affairs of
the Organization and also the relationship among the functional areas .This study has proved
very beneficial in understanding the Organizational climate and culture. The interpersonal
relationship and the Industrial relation in the organisaton has been revealed through this study
.The company has been successful in maintaining and balancing industrial democracy and peace.
The workers problems are heard and possible steps are taken to mitigate and solve their personal
and professional

worries and complaints. Through this steps, the workers are at peace, And

productivity and quality is assured.

Institutional training in this reputed company turned out to be education and successful.
It helped in understanding various functions of management practically. Learning in college is
just a preliminary training but by their practical exposures, received a wide knowledge about the
various functioning aspects of a business firm.

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6. BIBLIOGRAPHY

BOOKS:
SASHI K GUPTA, ROSY JOSHI ORGANISATION STRUCTURE AND
DYNAMICS KALYANI PUBLISHERS
ENTREPRENEURIAL DEVELOPMENT BY S.S. KHANKA
DYNAMICS OF ENTREPRENEURIAL DEVELOPMENT AND MANAGEMENT
MILLENNIUM EDITION BY VASANT DESAI

JOURNALS
Advertising Express

The ICFAI University Express

Indian Journal of Marketing

Annual Report

WEBSITES
www.jyothylaboratories.com
www.Wikipedia.com
www.google.co.in
http://www.articlesbase.com/entrepreneurship-articles/
http://knowledgeportal.in/
http://dobato.blogspot.com/2006/02/scope-of-entrepreneurship-development.html
http://www.thehindubusinessline.com/
http://papers.ssrn.com/sol3/

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