CHAPTER – I

INTRODUCTION

1.1 INTRODUCTION ABOUT THE TRAINING

In plant training is an integral part of MBA program, because it gives us the

practical knowledge of what we have learnt during our study period. But practical
knowledge is also necessary along with the theoretical knowledge.

One can see how the theories and knowledge are being practically implemented. This
report is about a paper company. We prepared this report carried the information about
all department in the organization and necessary information’s of the company.

Training is the process of learning a sequence of programmed behavior. It is an

application of knowledge. It gives people an awareness of the rules and procedures to
guide their behavior.

Development is a related process. It covers not only those activities which

improved job performance, but also those which bring development of their personalities
to help individual’s progress towards the actualization of their potential capabilities.

Education is the understanding and interpretation of knowledge. Education

imparts qualities of mind and character and understanding of basic principles and
develops the capacities of analysis, synthesis and objectives.

As a MBA student, I inspired for studying various department and their

contribution to the successful running of factory.

1
1.2 OBJECTIVES OF THE TRAINING

 To study the socio-economic profile of the owners of sample Sri Muhuntha Paper
Boards.
 To analyze the problems in marketing and the level of problems in the marketing
faced by the respondents in the study area.
 To identify the factors influencing the marketing problems in match industries.
 To explore the marketing strategies adopted by the paper industries under study.
 To examine the factors associated with the level of marketing strategy.

2
1.3 SCOPE OF THE INTERNSHIP TRAINING:

 The study in mainly based on the details collected from each department.

 It provides a better understanding at functional level of each department i.e.

purchase, materials, production, marketing, finance and human resource
management.

 Each and every activities of the company is studied very carefully with the data
available.

 Apart from that, I gained knowledge of the functioning of different departments

and their interrelationship with each other.

3
1.4 LIMITATIONS OF THE INTERNSHIP TRAINING

 Any research study would face certain limitations technical (or) procedure (or)

otherwise.

 The present study has not been and expectation to this rule and had come across

certain limitations. The following are few of such limitations.

 The research study is limited to Day shift employees only.

 The study is conducted by short period so enough data scarcity for demand in the

company.

4
 CHAPTER – II

PROFILE

2.1 INDUSTRY PROFILE

The Indian Paper Industry accounts for about 2.6% of the world's production of
paper. The estimated turnover of the industry is INR 50,000 crore approximately and its
contribution to the exchequer is around INR 4500 crore. The industry provides
employment to more than 0.5 million people directly and 1.5 million people indirectly.
Most of the paper mills are in existence for a long time and hence present technologies
fall in a wide spectrum ranging from oldest to the most modern. The mills use a variety of
raw material viz. wood, bamboo, recycled fibre, bagasse, wheat straw, rice husk, etc.;
approximately 31% are based on chemical pulp, 47% on recycled fibre and 22% on agro-
residues. The geographical spread of the industry as well as market is mainly responsible
for regional balance of production and consumption.

The operating capacity of the industry currently stands at 12.75 million tons.
During 2013-14, domestic production is estimated to be 11.38 million tons. As per
industry guesstimates, over all paper consumption has now touched 13.10 million tons
and per capita consumption is pegged at 10 kg. Demand of paper has been hovering
around 8% for some time. So far, the growth in paper industry has mirrored the growth in
GDP.

India is the fastest growing market for paper globally and it presents an exciting
scenario; paper consumption is poised for a big leap forward in sync with the economic
growth and is estimated to touch 13.95 million tons by 2015-16. The futuristic view is
that growth in paper consumption would be in multiples of GDP and hence an increase in
consumption by one kg per capita would lead to an increase in demand of 1 million tons.

Indian Paper Manufacturers Association (IPMA) as a body represents the

resurgent and organized face of paper sector in India. Large Integrated Paper Mills from
private and public sector with a product mix of all varieties of paper (writing, printing,

5
packaging, specialty, paperboards and newsprint) located in all regions and using
conventional fibred such as wood and bamboo and also unconventional raw materials like
recyclable waste paper, agro-residues, viz. bagasse and wheat straw comprise the
membership of IPMA in a broad spectrum.

IPMA members account for more than one-third of industry's production of paper
and paperboard. IPMA is registered with the Registrar of Societies, Government of NCT
of Delhi.

IPMA Secretariat:

IPMA secretariat is located in the prestigious premises of PHD Chamber of

Commerce & Industry, at New Delhi. The Secretariat is professionally managed and
equipped with office automation. It is fully geared to meet the growing requirements of
paper industry and others, directly and indirectly associated with it. IPMA welcomes
interaction and exchange of information with individuals, agencies and organizations
having interest in paper industry.

As an association of large, dynamic paper manufacturers with global vision,

IPMA presents a broad based platform to project Indian paper industry's views and
articulate its strategy.

The overriding objective of IPMA is to promote the interests of paper industry in

India and help it achieve global competitiveness while striving to be an active participant
in the policy making process.

Interface with government, media, opinion leaders, NGOs and industry

associations so as to present the perspective of paper industry and thereby participate in
the policy making process Promote excellence in paper manufacturing through
presentation of awardsNetworking with international bodies with a view to gain better
visibility for Indian paper industry Coordinate with research institutes and arrange
platforms for industry-research collaboration Convene meetings and discussions to
evaluate policies having direct or indirect bearing on the paper industry and to make

6
suggestions to the policy makers on the issues and concerns of constituent member mills
Sponsor and participate in events, workshops, seminars, exhibitions, delegations and
promotional activities related to paper industry

Growth and Distribution of Paper Industry in India

Paper is one of the core industries and is linked to the basic human needs. Paper is
the pre-requisite for education and literacy and its use is an index of advancement in
these two fields as well as the overall well being of the society.

This is the most important of all the forest based industries. Some people treat it
as a chemical industry due to its manufacturing process and because of certain chemicals
used for its manufacturing.

Still some other people include it in the group of agro-based industries because
some of the agricultural products and residuals are used as raw materials. As large
proportion of the basic raw materials is derived from the forests, it seems logical to treat
it as a forest based industry.

Growth and Development:

Paper manufacturing has been carried on in India since tenth century as a small
cottage industry by the traditional craftsmen called kagzis. They used gunny bags, rags,
ropes, etc. for making paper. This industry could not survive the onslaught of the
machine made paper and declined considerably. However, a part of it has managed to
survive and even today, a large number of small units are producing handmade paper.

The beginning of modern paper industry goes back to 1816 when a factory was
set up near Chennai. This venture proved abortive. Another papermill was set up in 1832
at Serampore on the bank of Hugli in West Bengal. This venture also failed and the first
successful effort was made in 1870 with the setting up of the Royal Bengal Paper mills at
Ballyganj near Kolkata.

7
 This is the principal seat of paper industry even today. Subsequent successful
efforts were made at Lucknow in 1879, Titagarh in 1882, Pune in 1887, Raniganj in
1892, Kaukinra in 1892 and Naihati in 1918. The preferential treatment and tariff
protection helped in solving the initial problems of this industry.

World War II further infused life into this industry. But the progress was rather
sluggish till Independence and it is only in the plan period that the industry has really
made fast progress. In the year 1950-51, there were 17 mills with a total installed
capacity of 1.37 lakh tonnes.

The corresponding figures reached 77 mills and 14.40 lakh tonnes in 1977-78 and
379 mills and 37.78 lakh tonnes in 1995-96. Currently, India has a total installed capacity
of 6.2 million tonnes of paper and paper board. The aggregate installed capacity by 2010
for paper and paperboard is expected to touch 8.3 million tonnes. The production of paper
and paper board has also increased gradually but uninterruptedly from a mere 116
thousand tonnes in 1950-51 to 3,684 thousand tonnes in 2003-04.

8
2.2 COMPANY PROFILE

Established in 2003, Sri Muhuntha Paper Boards is the friendly recovered paper
based paper manufacturing in terms of production capacity. Sri Muhuntha Paper and its
subsidiaries primarily produce linerboard, high performance corrugating medium and
coated duplex board. Its operations enable it to serve as a one-stop shop for a broad range
of high quality packaging paperboard products. The paper product are located at
Manikkampalayam.

Sri Muhuntha Paper Boards always aims to be the leading recycled based paper
manufacturer. We use recovered paper for papermaking, so as to protect the environment
and create a greener and better future for mankind. Our staff at all levels have been
striving diligently to reach this goal, continuing to lead the industry in paper
manufacturing and strive to provide our customers with the most competitive
environmentally friendly products. The Company also continuously puts significant
resources into implementing advanced machineries and technologies, improving product
quality and incubating technical and management personnel to become a premium quality
environmentally friendly recycled-based paper manufacturer that receives the highest
recognition from its employees, customers, shareholders and society. Furthermore, we
adopt advanced management techniques and implement enterprise resource planning
(ERP) system in order to further improve our operation and management.

Our Aim

 Excellent Quality
 Timely Supplies
 Customer Satisfaction.

With the continuous growth in Paper Industry, we had developed our selves to
meet the challenge with continuous improvement in our design, technology and
production capacity but due to sudden increase in export demand in recent past, we could
not cope up with extra demand of Industry due to insufficient manufacturing facilities.
Considering these constraints, we decided to double our capacity.

9
Quality

We strongly believe that “Quality at Competitive Price” is the basic of any

modern business to prosper and you shall expect the same from us during the tenure of
our business association. Regular analysis and physical testing, are conducted on raw
materials. Vendor appraisals and ratings are undertaken periodically to ensure
consistently high quality of material supply.
Quality surveillance during the course of design is carried out with the aid of
modern measuring, testing and checking devices and by continuous training and
upgrading of workmen skills.

Our Goal

To become the largest and the best recycled-based paper manufacturer in the
world and the leader in environmentally friendly recycled-based premium quality paper
manufacturing that receives the highest recognition from its employees, customers,
shareholders and society.

Our Commitment

Based on the management philosophy of "No environmental management, No

papermaking", we lead the industry in green paper manufacturing and strive to provide
our customers with the most competitive environmentally friendly products and one-stop
services, thus accomplishing a long term win-win relationship with them.

Our Mission

The use of recovered paper for papermaking to protect the environment and create
a greener and better future for mankind.

Brand Strategy

Pursuing quality excellence and perpetuating a brand that thrives for a century.

10
Cultural Values

Integrity and honesty, fairness and justice, diligence and strong work ethic, unity
and pragmatism.

Management Principle

Respect and care for our staff, refinement and innovation in management,
perpetuating a brand that thrives for a century and propagating the spirit of diligence.

Future Plans

The paper industry has seen a boom in the past few decades, and more and more
paper manufacturing units in the market. As a result of this, the demand for our products
has also increased manifolds. To meet the ever growing demand of our machines, we are
planning to expand further, and have decided upon doubling our capacity in the coming
future.

We have undertaken the following steps in the course of our expansion:

 Installed a Fabrication cum Machine shop of more than 2000 Sq. yard working
space under the name of Muhuntan Paper boards.
 Planning to set up a high capacity Plate Bending Machine with Hydraulic press of
1500 Tons. This Bending Facility is the first in India, having a capacity to bend
Plates of 75 mm thickness and a face length of 5000 mm
 The use of Submerged Arc Welding (SAW) technology would give us another
technological advantage over other manufacturers.

Quality Assurance
Superior quality, accuracy and durable performance are the hallmark features of
every product offered by Sri Muhuntha Paper boards. We adhere to a rigid quality
management system comprising of strict inspections and testing schedules that ensure
flawless products to our clients.

11
 Each operation is executed under the tight supervision of trained professionals in
accordance with standardized production norms and methods, thus leaving no stone
unturned in ensuring premium quality. Committed towards total consumer satisfaction,
we dispatch our products after expert's inspection and approval.

COMPETITORS
 Saraswati paper products
 TNPL
 SPB
 Kovai Maruthi Paper and Boards Limited

ADDRESS

Sri Muhuntha Paper Boards

No 294, Manikkampalayam,

TIRUCHENGODE - 637202,

Pullagoundampatti. Namakkal

12
 2.3 ORGANIZATION CHART

Board of Directors

Managing Director

Production Manager Marketing Manager Finance Manager Personnel/HR Manager

Assistant Manager Assistant Manager Assistant Manager Assistant Manager

Assistant Manager
Assistant Manager

Supervisors Supervisors Supervisors Supervisors

Employees Employees Employees Employees

13
 CHAPTER – III

FUNCTIONAL DEPARTMENTS

3.1 HUMAN RESOURCE DEPARTMENT

As employees are the key to the organization’s success, the company has shown
its utmost commitment towards its employees by providing facilities like Canteen with
appetizing food, well equipped Lounge and Dedicated Bus Services from the workplace
to home.

Continuous in-house training programmes in various disciplines like TMP, 7QC

Tools, Quality of Life, Positive Mental Attitude, EMS 14000. 4 th Generation
Management etc., help in achieving organizational growth in the right direction. In its
quest for perfection, Sri Muhuntha paper boards ensured that all the key personnel
manning the processing machines are technically qualified and fully trained to operate the
state-of-the –art machinery. A strict 100% inspection system is adopted at all stages of
manufacturing process.

As employees are the key to the organization’s success, the company has shown
its utmost commitment towards its employees by providing facilities like a Canteen with
appetizing food, well equipped Lounge and Dedicated Bus Services from the workplace
to home. Continuous in-house training programmes in various disciplines TPM, 7QC
Tools, Quality of Life, Positive Mental Attitude, EMS 14000. 4 th Generation
Management etc., help in achieving organizational growth in the right direction.

Its strength is its team of highly dedicated and competent professionals, with a
shared vision of delivering only the best, every time. It is firm belief that every
individual’s potential should be constantly upgraded, through a series of well thought out
training programs. It is with this belief that it has every one of its employee trained in
Yoga and Meditation, to uplift them at both the physical and spiritual plane and
importantly, make them better at concentrating towards, total customer satisfaction.

 Human resource involves in all sources in each and every management activities.

14
  It is an utilization of human/manpower all the areas in organization i., supply of
human in all sources.
 First step in human resource department is to maintain “ATTENDENCE” of the
employees/worker/labours of organization.
 The promoters are already well-trained in the labour management. The labour
requirement will be met as under:
 Recruiting labour from villages around the farm,
 Producing labour by buses and vans from nearby villages.
 In-due-course labours are provided cottage to stay in nearby the farm.

FUNCTIONS OF HRD IN SRI MUHUNTHA PAPER BOARDS

 Man power planning, forecasting and scheduling.

 Interviewing, screening, testing and recruiting new hands.
 Personnel appraisal (rating efficiency).
 Arranging and conducting education and training program.
 Assignment of works.
 Wage and salary administration.
 Welfare measures.
 Maintaining statutory records under Labours Act.
 Counseling.
 Disciplinary proceedings.
 Preparing project record.
 Advising the management in work loads, remuneration etc.,

RECRUITMENT PROCEDURE IN SRI MUHUNTHA PAPER BOARDS

Internal sources:

The internal sources refer to present working employees of the company. The
company recruits its own internal people though promotions and transfers. It means when

15
vacancies arise, those who have been already working in the institutions are promoted
thereby filling the vacancies. Some of the internal sources of recruitment include:

 Present permanent employees

 Present temporary or casual employees
 Retrenched or Retired employees
External sources

When the requirements of the recruitment cannot be meet from internal sources then in
such cases external sources can be adopted. Every organization has to tap external source
for various positions. Running organizations have to recruit employees from outside for
filling the position whose specifications cannot be met by the present some of the
external sources of recruitment include:

 Advertisement in Newspapers, Journals, TVs and Radio

 Employment exchanged and Agencies
 Placement cells in colleges, Universities and management institutions
 deputation
 Trade unions
 Casual labour or Applicant
 Unconsolidated Applications
 Employee Referrals

STAFF & WORKERS

Sri Muhuntha paper boards have500 employees totally. Out of which 350 male and 150
female employees are working. It includes skilled employees, unskilled employees,
labourers and technicians. Labour is engaged at contract basis based on seasonal and
demand basis.

WORKING HOURS AND SHIFTS

The Factories Act 1948 established a 48-hour working week; in practice, however,
office employees normally work a five-day week of 37.38 hours. Factory workers have

16
on average a six-day week of 43-48 hours. The Factories Act was amended in 2005 to
allow women to work on night shifts (10 pm-6 pm), as long as employees provide
adequate safeguards for them. The same is followed in Sri Muhuntha paper boards as per
the above.

In most places, any work beyond nine hours per day (up to ten hours, including rest
interval) is counted as overtime, usually paid at double the normal wage. Night and
Sunday work do not command a premium unless they result in overtime. Holiday work
generally requires double pay, although workers may opt for a substitute paid holiday.
Overtime for blue-collar staff is limited to four hours at a stretch.

There are two shifts in the company:

1. 8.30am to 5.00 pm
2. 5.00 pm to 1.00 am

WORKERS LEAVE

The following kinds of leaves are admissible to the employees of this company.

a. Casual Leave (CL)

b. Special Casual Leave (SCL)
c. Special Leave
d. Earned Leave (EL)
e. HALF Pay Leave (HPL)
f. Commuted Leave
g. Leave Not Due (LND)
h. Extra-ordinary Leave (EOL)
i. Maternity Leave
j. Adoption Leave
k. Paternity Leave
l. Hospital Leave
m. Sabbatical Leave
n. Study Leave

17
WELFARE MEASURES

The following welfare measures are provided by Sri Muhuntha paper boards
to its employees:

Statutory welfare schemes

1. Drinking water: At all working places safe hygienic drinking water is provided.
2. First aid appliances: First aid appliances are provided and readily assessable so
that in case of any minor accident initial medication can be provided to the needed
employee.
3. Latrines and Urinals: A sufficient number of latrines and urinals are provided in
the office and factory premises and are also maintained in a neat and clean
condition.
4. Canteen facilities: Cafeteria or canteens are provided by the employer so as to
provide hygienic and nutritious food to the employees.
5. Lighting: Proper and sufficient lights are provided for employees so that they can
work safely during the night shifts.
6. Washing places: Adequate washing places such as bathrooms, wash basins with
tap and tap on the stand pipe are provided in the port area in the vicinity of the
work places.
7. Rest rooms: Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.,
Non statutory schemes

1. Personal Health Care (Regular medical check-ups): some of the companies

provide the facility for extensive health check-up.
2. Employee Assistance Programs: Various assistant programs are arranged like
external counseling service so that employees or members of their immediate
family can get counseling on various matters.
3. Medi-claim Insurance Scheme: This insurance scheme provides adequate
insurance coverage of employees for expenses related to hospitalization due to
illness, disease or injury or pregnancy.

18
Requirement analysis process
Functions
 Administering employee welfare programs
 Organizing employee related functions.
 Formulating and monitoring employee motivation schemes.
 Payroll processing.
 Time office administration.
 Matters concerned with organization chart, placements, career growth, and job
rotation.
 Training of personal.
 Managing Industrial Relations.
 Compensation related issues.
 Monitoring discipline and assisting line management on disciplinary matters.
 Dealing with employee counseling and grievances.

Strength

Each and every year productivity level is increased so the employees' resources
are also increased.
Better analysis leading to more effective decision-making.
 Many career planning and counseling at all levels.

 Improved quality of reports kept for different persons and different departments.
 Better ability to respond to environmental changes.
 Supply data and returns to Government and to the pubic.
 Responsible for the protection of Company's movable immovable properties in
the factory, townships and salt area

19
Weakness

 Less communication in between the groups and individuals.

 Can be expensive in terms of money and manpower requirements.
 Continuous absences will make much burden of work on others.
 If training program is not conducted for a period to new employees it creates
difficult positions.
 Good medical care is not provided to employees while in-need.
 Remuneration is not given in time.
 If any refreshment program are not given to employees.
Opportunity
 New recruitment is done for new employees
 Welfare facilities are available.. Cultural programs are conducted yearly once for
the refreshment of the employees
 Incentives are given to motivate the employees.
 Research persons are available in DCW, which is a very big opportunity to the
Threat
 Leakage of the company secrets to competitors
 Sudden resignation of any well working employee
 Well-qualified employees moving to other competitors for more earnings
 Competitors giving more opportunity to the employees, so that they are attracted
and join the
 If employees benefits are not given to them

20
Implementation suggestions involve two main areas:

 Development of industry specific survey methodologies.

 Establishment of a data collection agency to pursue this project.

The implementation phase can only be executed after a well-tested survey has been
developed for each industrial sub-sector.

The various sub-sectors can be gradually phased in so as to amortize the

development costs over a longer period and so that each implementation learns from the
previous experiences.

Conclusion

The Sri Muhuntha paper is one of the internship training specify with production,
Personnal Management and Promotional Strategy Management. Then the department
analysis with SWOT (Strength, Weakness, Opportunity, Threat) with increase student
knowledge attitude and skills.

The internship study is helped to make a valuable conclusion through the analysis
of different functional departments of the paper boards presently with the prominent
niche in the market.

21
3.2 FINANCE DEPARTMENT

FINANCIAL MANAGER

ASST. FINANCE MANAGER

AUDITOR

ACCOUNTANT

CLERK

Finance management is an integral part of overall management and not a staff

function. It is not only confined to find raising operations but extends beyond is to cover
utilization of funds to monitoring its uses. These functions influence areas of other

22
crucial functional of the firm such as production marketing and personnel. In view of this
overall survival of the influenced by finance operations.

Finance statement is primarily for decision making. It is an organized collection

of data according to logical and consistent accounting procedures. Information provided
in the financial statement are immense use is making decision through analysis and
interpretation of financial analysis is the process of identifying the financial strength and
weakness of the firm by property establishing relationship between the item of balance
sheet and profit and loss account.

Finance is the life blood of an organization. Without finance we can do anything.

Finance is only part which brings together various segments of an organization which
helps to attain organizational goals. Finance manager is the top authority in financial
work he has equal rights and responsibilities in general matters like the managing director
of the company. The finance manager has assistant and system officer under him to
assist in his daily activities. Senior assistant has accountant and office assistant under
him. The account is responsible for the daily financial transaction of the organization and
payroll management.

Structure of Finance Department

Finance Manager

Accountant Auditors Cashier Clerks

Assistant

23
RECORDS / BOOKS MAINTAINED

Inspection

Posting in stock ledger

(Raw materials consumption Book)

Monthly statement – regarding stock

Yearly statement

Functions of finance and accounts Department

 Exercise control over cash.

 Passing and settlement of all miscellaneous advances.
 Performing all works connected with insurance of fixed assets.
 Settlement of telephone and electricity bill.
 Keeping personnel files of employees relating to salary computation and annual
increment.
 Preparation and maintains of accounts and book up-to-date, that are required
under different acts.
 Preparation of Financial Statement.
 Over view of internal and external purchase
 Preparation of profitability trend report and wage analysis
 Preparation of monthly profit and loss account and cash flow statement and
present them monthly to top level managers.

24
Accounting policies

1. Basis of accounting

Financial statement is prepared under the historical cost conversion and on

annual basis.

2. Fixed assets:

Fixed assets are started at their historical and accumulated depreciation their own.
The cost of fixed assets comprises the acquisition cost and any attributable of bringing
the assets comprises those costs that relate that directly to the specific assets and
overheads consistently allocated at predetermined percentage of direct salaries and
wages.

Accounts department

In this department accounts are maintained in the computer systems. All the records
regularizing purchase, sales and expenses are maintained with and of computers.

The following are the books maintained by accounts departments:

Bank-cum daily cash books

This book is maintained so as record all daily cash transactions. There are separate
columns in this book as to identify the expenses of each department. As another side the
over all transaction recorded.

Petty cash book

Smaller expenses are recorded in the petty cash book following are the some of the
items which were found in the petty cash book.

Cotton expenses, stores expenses, mill stipend, live stock expenses, traveling,
printing and stationery, motor car expenses etc.,

25
Debit note and credit note

1. It also maintain a debit note and credit note register

2. The above statements prepared by using computers
3. The financial controller prepares the annual report and submits to the board. If
there is any error found in the book, he is responsible
4. The accounts department of the company is functioning in a good manner; all the
records are verified properly through computer.
Other books maintained by the company

 Day book
 Sundry creditors
 Sundry debtors
 Receipt bill
 Bank payment voucher
 Journal voucher
 Bank reconciliation statement
 Casual labour engagement register
 Salary book
 Purchase book
 Sales book

SWOT ANALYSIS

Financial analysis is a powerful tool to ascertain in strength and weakness in the

operation andfinancial position of an enterprise. The analysis of financial statementis
useful to:
 Management
 Investors
 Creditors
 Bankers

26
 Financial Institutions the financial statement is an organized collection of data
according to logical and consistent accounting procedures. Its purpose is convey and
understanding of same financial aspects of business firm. It may show position at a
movement of time as in either case of the balance sheet or may reveal a serious of
activities over a given period of time as in the case of an income statement.

 Thus the financial statement is generally refers to the basic statement.

 The income statement
 The balance sheet.
 The statement of retained earnings.
 The statement of change in financial position in addition to the above two
statement.

27
3.3 PRODUCTION DEPARTMENT

The function of Production Management depend upon the size of the firm. But the
production planning and control and purchase and stores may be under the control of
Production Management Department. The function is as follow:

i) Materials
The selection of material for the product. Production manager must have sound
knowledge of materials and their properties, sol that he can select appropriate materials
for his product. Research on materials is necessary to find alternatives to satisfy the
changing needs of the design in the product and availability of material resumes.

ii) Methods
Finding the best method for the process, to search for the methods to suit the available
resources, identifying the sequence of process are some of the activities of Production
Management.

iii) Machines and Equipment

Selection of suitable machinery for the process desired, designing the maintenance
policy and design of layout of machines are taken care of by the Production Management
department.

iv) Estimating
To fix up the Production targets and delivery dates and to keep the production costs at
minimum, production management department does a through estimation of production
times and production costs. In competitive situation this will help the management to
decide what should be done in arresting the costs at desired level.

v)Loading and Scheduling

The production Management department has to draw the time table for various
production activities, specifying when to start and when to finish the process required. It
also has to draw the timings of materials movement and plan the activities of manpower.

28
vi) Routing
This is the most important function of Production Management Department. The Routing
consists of fixing the flow lines for various raw materials, components etc., from the
stores to the packing of finished product, so that all concerned knows what exactly is
happening on the shop floor.
vii) Dispatching
The Production Management Department has to prepare various documents such as Job
Cards, Route sheets, Move Cards, Inspection Cards for each and every component of the
product. Activity of releasing the document is known as dispatching.
viii) Expediting or Follow up
Once the documents are dispatched, the management wants to know whether the
activities are being carried out as per the plans or not.
ix) Inspection
Here inspection is generally concerned with the inspection activities during production,
but a separate quality control department does the quality inspection, which is not under
the control of Production Management.
x) Evaluation
The Production Management Department must evaluate itself and its contribution in
fulfilling the corporate objectives and the departmental objectives. This is necessary for
setting up the standards for future.

Beating

The pulp is next put through a pounding and squeezing process called appropriate
enough, beating. Inside a large tub, the pulp is subjected to the effect of machine beaters.
At this point, various filler materials can be added such as chalks, clays of chemicals such
as titanium oxide. These additive will influence the opacity and other qualifies of the
final product. Sizing are also added at this point. Sizing affects the way the paper will
react with various inks. Without any sizing at all, a paper will be too absorbent for most
uses except as a desk blotter.

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 A sizing such as starch makes the paper resistant to water-based ink (inks actually
sit on top of a sheet of paper, rather than sinking in). A variety of sizing, generally rosins
and gums, is available depending on the eventual use of the paper. Paper that will receive
a printed design, such as gift wrapping requires a particular formula of sizing that will
make the paper accept the printing properly.

Paper making process

Raw Materials:

The main source of wood fibre used in the manufacture of paper is harvested from
scientifically grown plantations of either hard, (gum), or softwoods, (pine) for conversion
into a number of varying grades of paper.

No indigenous trees are used and the sitting and planning of plantations takes
cognizance of the fact that they need to co-exist with the indigenous environment with
minimum impact.

Fibre for papermaking is also sourced from sawmills in the form of wood chips
from off-cuts as well as from the recovery of used paper of all types. This “recycled
fibre” ensures that the cellulose content, carbon, remains in a form that postpones
degradation, (and hence carbon dioxide generation), for as long as possible.

In addition to fibre, a number of chemicals are used to convert the raw cellulose
into a form that can be converted into the plethora of paper grades required by the end
user:

Other materials used in the paper making process are listed below:

 Pulping chemicals consisting of sodium hydroxide, sodium sulphate, sodium

carbonate and calcium oxide are the main constituents. The bulk of these
chemicals are recovered in the recovery section of the pulp mill and re-used in the
process.

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  Water – the bulk of the water is used in the paper making process to dilute
cellulose fibre to be formed on the paper machine. Virtually all this water is
recovered and recycled back to the machine

Paper making chemicals – such as starches, dyes, and strengthening and water
proofing agents – impart a number of different and important properties to the sheet of
paper being formed on the machine.

Paper and paper board can be manufactured by using different types of raw
materials. Raw materials account for 45-50 per cent of the total cost of production and
form an important segment of manufacturing paper and paper board. Of the total installed
capacity, 43 per cent is dependent on forest based raw materials, 28 per cent on agro
based raw materials and the remaining 29 per cent on other materials including waste
paper.

Bamboo:

Generally speaking 2.3 to 2.4 tonnes of bamboo is required for producing one
tonne of paper. The paper industry uses bamboo to the extent of 60-70 per cent of the
total requirements of cellulosic raw materials. Bamboo has the advantage of the
possessing long fibre, dense stands and quick regeneration.

It reaches maturity in 2-3 years and provides continuous flow of renewable source
of raw material. However, there is danger of this source of important raw material being
depleted if the rate of exploitation exceeds the rate of regeneration. The total supply of
bamboo at the current rate is estimated at 20-30 lakh tonnes per annum.

Sabai Grass:

This is another important raw material for manufacturing paper. It was the sole
raw material before introduction of bamboo as a significant raw material, but its use has
decreased considerably since then. It now constitutes 7 to 9 per cent of the total cellulosic
raw material in the country.

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 Although sabai grass has long fibre and requires low chemical consumption, it
grows in tufts intermixed with other vegetation and it is often difficult to separate
impurities from it. Moreover, its supplies are much less than those of bamboo.

Bagasse:

It is a fibrous residue of the sugarcane stalk, mainly from the sugar mills, obtained
after sucrose is extracted by crushing the sugarcane. On an average 50-60 lakh tonnes of
bagasse is produced in the country, half of which is used for manufacturing paper.

Other materials:

Paper is also manufactured by using materials other than those mentioned above.
These include waste paper, rags, straw from rice and wheat, jute sticks and soft wood
obtained from eucalyptus, pine-wood, wattle and mulberry trees.

Chemicals:

In addition to the above mentioned cellulosic raw materials, certain chemicals are
also used in the manufacture of pulp, paper and paper board. The important chemicals are
caustic soda, soda ash, sodium sulphate, chlorine, sulphuric acid, sulphur, lime, ferric
alumina, ammonium sulphate, resin and clay.

A variety of sizing and colouring agents are also used. Coal is also an important
input in paper industry. Normally, 3.5 to 4.1 tonnes of coal is required for producing one
tonne of paper. Large quantity of soft water is also needed.

Pulp to paper

In order to finally turn the pulp into paper, the pulp is fed or pumped into giant,
automated machines. One common type is called the Fourdrinier machine, which was
invented in England in 1807. Pulp is fed into the Fourdrinier machine on a moving belt
of fine mesh screening.

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 The pulp is squeezed through a series of rollers, while suction device s a water-
mark, a device called a dandy moves across the sheet of pulp and presses a design into it.
The paper then moves onto the press section of the machine, where it is pressed between
rollers of wool felt. The paper then passes over a series of steam-heated.
Recycling process

Recycling programmes encourage the public to collect as much waste paper as

possible from their homes and neighbor hoods. They take this paper to their nearest
recycling centre where they are paid according to the weight of the paper.

Agents then collect the paper from these recycling centres. Each recycling centre
can provide employment for at least 100 people in the informal sector.

The waste paper is taken to the processing plants where it is sorted and then
compressed into bales that weigh between 550kg and 750kg each. The bales are taken to
the paper mill where they are re-pulped and converted into new paper.

Waste paper is used to produce packaging (e.g. cardboard boxes, egg trays and
wine sleeves), printing and writing paper and tissue paper.

It is difficult to recycle paper once it has reached the Municipal Dump, so the
recycling process has to start with paper being sorted in homes, schools, offices,
supermarkets and factories. Recycling waste paper can not only earn you money but can
also extend the life of our municipal dump sites.

Paper is primarily an organic material which means that as it decomposes it

releases gases like carbon dioxide (C02) and methane (CH4) which contribute
significantly to the green-house effect. By recycling paper we have the ability to retain its
carbon content in solid form and therefore impede the eventual release of these noxious
gases into the atmosphere.

33
 Municipal dumps (landfills) use large areas of land that are being filled with
material that could be used again instead of being thrown away. Paper products make up
approximately 30% of landfill volume.

VARIOUS DEPARTMENT CHART

OPERATIONAL MANAGER

ASSISTANT MANAGER

EXECUTIVES

PRODUCTION OFFICER

OPERATORS

HELPER

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3.4 MARKETING DEPARTMENT

Marketing is a human activity directed at satisfying needs and wants through exchange
process. The effort by which the transfer of ownership in goods between the seller and
buyer is affected emphasis ownership transfer.

Marketing in economic point of view, is defined as the exchange function by

maintaining supply and demand in equilibrium.

It is an important functional area of business management efforts for the flow of

goods and services from the producers to the consumers. Its looks after the marketing
system of the enterprise. It has to plan and develop the product on the basis of known
consumer demand.

Marketing management has to implement marketing strategies, programmes and

campaigns. Its must evaluate effectiveness of each part of marketing mix and introduce
necessary modification to remove discrepancies in the actual execution of plans.

Marketing is the foremost function that gives the management hopes for their
integrated task through making profits. It is a social and managerial process by which
individuals and groups obtain what they need want through creating and exchanging
products and value with others.

A sale is one of the important in every trading and manufacturing company. The
ultimate purpose of production is to them in a high profit besides the primary objective of
any business undertaking is to sell the goods successfully. Secondly the ultimate goal of
the proprietor or business undertaking is to earn optimum profit. It can be achieved by
either by increasing sales or decreasing the overheads to some extends like production,
purchasing, finance etc., Sales are making marketing and it from major portion in these
dynamic economics activities and effect to it. Hence sales plays a vitable part company
well in the competitive market.

35
Objectives of marketing department

Consumer satisfaction

The main aim of there is to satisfy the consumers. They produce accordingly to
their satisfaction.

Pre-planning

The match pre plans its marketing segments i.e., to concentrate on which products
so that would yield more dales.

Marketing server

A market survey is often made by the company so as to find out the willingness
and desire of the consumers in developing the product.

Price fixation

The price of the commodity is fixed by the federation where reasonable price is
fixed according to the quantity which enables all the people to get the product.

Last year sales

The company sold 116598 tonnes, during the year, as against 112970 tonnes, in the
previous year. The company achieved Zero Stock of Finished Goods inventory, as an
end of the financial year, for the seventh time in the last ten years. The turnover had
moved up to Rs. 41800 lakhs, as against Rs. 39124 lakhs, in the previous year, registering
an increase of 7%, over the previous year. The first half of the financial year witnessed
stability in the paper market conditions. However, form third quarter onwards, the
sentiments in the paper market turned subdued. The market witnessed great resistance
for white varieties of paper, like Cream wove. The movement was slow and prices were
under tremendous pressure, due to competitor mills offering hefty discounts to push their
products into the market. The company had to offer price concessions for white varieties
of paper in line with the market sentiments from January 2004 onwards. Because of note
book season, market for Cream wove varieties has improved from last year.

36
MARKETING DEPARTMENT HIERARICHY

MARKETING MANAGER

ASSISTANT MANAGER

OFFICE ASSISTANT

MARKETING DEPARTMENT

General Manager

Deputy General
Deputy Manager

Officer(Personnal) Officer

Administration

37
India Paper Industry Forecast & Opportunities
The paper industry in India has become more promising as the domestic demand
is on the rise. Increasing population and literacy rate, growth in GDP, improvement in
manufacturing sector and lifestyle of individuals are expected to account for the growth
in the paper industry of India. BILT and ITC are among the largest producers of paper
and paperboard in India. Many of the existing players are increasing their capacity to
meet the growing demand. The focus of paper industry is now shifting towards more eco-
friendly products and technology. Government of India has established rules and
regulations to control the population and degradation of forest. These measures taken by
the government has brought the significant changes in the paper industry of India.

Marketing Strategy Research Paper

One of the ways that an organization can improve its return on investment for
marketing is to base its marketing activities on a well-considered, empirically-based
strategy for its unique situation. Among the factors that should be considered in the
development of this strategy are the assets and skills possessed by the organization, the
drivers of the particular market, the nature of the competition, the stage of the life cycle
of the industry or market, and any strategic windows that affect the organization's ability
to successfully compete in the marketplace. Marketing strategies tend to focus on
providing lower cost products or services than or differentiating their offerings from
those of their competition, or by focusing on a market niche.

Factors to Consider when Developing a Marketing Strategy

Each organization needs to develop its own marketing plan based on a number of
factors. Although there is no such thing as a one-size-fits-all marketing strategy, there are
a number of factors that should impact the development of a unique strategy for an
organization or product line and the development of a concomitant strategic marketing
plan.

38
 First, one needs to consider the assets and skills that the organization already
possesses or that it can readily acquire. For example, if an organization has a
significant engineering department, it would be feasible for it to work on new
projects that require engineering skills. However, if these personnel are already
involved in other work and are not free to work on a new engineering project and
the organization cannot afford to hire additional engineers, starting a new
hardware line would be inadvisable at best.
 In addition, one needs to consider the market drivers when developing a
marketing strategy. These are the various political, economic, sociocultural, and
technological forces that may influence the wants and needs of the consumer
base. For example, a technological force that has influenced the way that many
people do business in recent years is information technology. Advances in this
area have led to the need for businesses to be able to handle increasing volumes of
information and data and the widespread use of information technology in many
industries.
 In addition to market drivers, another external factor that one must also take into
account is the nature of the competition in the marketplace so as to determine
whether or not a marketing effort will be successful. Even businesses that start as
innovators in their field soon find themselves with competition.
 Another external factor that impacts how a business can best position oneself in
the marketplace is the stage of the market or the industry life cycle. Some
organizations excel as innovators, for example, being the first on the market with
an innovation or new product. Other organizations excel at taking the innovation
and adapting it to the needs of the marketplace (e.g., lower price, different
features).
 Further, there are often various strategic windows that can affect an organization's
ability to successfully compete in the marketplace. These are limited time periods
during which there is an optimal fit between the needs of the marketplace and the
competencies of the organization. For example, advances in computer technology
have been accompanied by advances in data storage methods; although cassette
tapes for data backup were innovative in their time, that time has passed. A new

39
 type of tape backup for home computers would be unlikely to meet success
because the strategic window for that type of device (and type of home computer)
has passed.

The Changing Market Environment within the Paper Industry

Traditionally paper companies have chosen their suppliers to a great extent on
competitive pricing and service. While pricing and service remain important, the
relationships between paper companies and suppliers have changed. Similar to the
competition in other industriese.g. the situation in the automobile industry during the late
1980s and the early 1990s, today’sbusiness climate in the paper industry brings pressure
for improved profitability, cost reductions and efficiency improvements.
At the same time paper companies have integrated forward by mergers and
acquisitions in order to build up a market position on different markets and product areas
in the local market structure. Due to structural changes and concentration within different
industry’s the paper companies have also come under the pressure from big buyers,
especially from customers selling consumer products.
The research issue in this paper can therefore be emphasised by How can a paper
company adjust its marketing strategy for this new competitive situation. The intention is
to useaqualitative study by interviewing management in a specified number of
companies. The datacollection will also be completed by secondary data from the same
companies.
Key elements of a successful marketing strategy

One of the key elements of a successful marketing strategy is the

acknowledgement that your existing and potential customers will fall into particular
groups or segments, characterized by their "needs". Identifying these groups and their
needs through market research, and then addressing them more successfully than your
competitors, should be the focus of your strategy.

You can then create a marketing strategy that makes the most of your strengths
and matches them to the needs of the customers you want to target. For example, if a
particular group of customers is looking for quality first and foremost, then any

40
marketing activity aimed at them should draw attention to the high quality service you
can provide.

Once this has been completed, decide on the best marketing activity that will
ensure your target market know about the products or services you offer, and why they
meet their needs.

This could be achieved through various forms of advertising, exhibitions, public

relations initiatives, Internet activity and by creating an effective "point of sale" strategy
if you rely on others to actually sell your products. Limit your activities to those methods
you think will work best, avoiding spreading your budget too thinly.

A key element often overlooked is that of monitoring and evaluating how

effective your strategy has been. This control element not only helps you see how the
strategy is performing in practice, it can also help inform your future marketing strategy.
A simple device is to ask each new customer how they heard about your business.

Once you have decided on your marketing strategy, draw up a marketing plan to
set out how you plan to execute and evaluate the success of that strategy. The plan should
be constantly reviewed so it can respond quickly to changes in customer needs and
attitudes in your industry, and in the broader economic climate.

41
 CHAPTER – IV

4.1 OUT COME OF FINDINGS

 The In plant training report finds out the types of area to consume the

Muhuntha papers.

 The finding expresses that customer preference to Muhuntha paper body

work and other products to the customers.

 The finding deals with the customer’s satisfaction fulfill their needs and

wants.

 The Muhuntha paper Industries depend upon the marketing department

with strength and weakness about the areas.

 Department meeting is conducted by them rarely.

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4.2 SWOT ANALYSIS OF PRODUCTION DEPARTMENT
Strengths
 Products manufactured to international standards.
 The company enjoys a technical advantage by the appropriate investment in fixed
assets especially in the complete range of manufacturing, testing and captive-
power infrastructure.
 Flexible manufacturing systems
 Standard quality of the product.
 Abundant Raw Material Availability

Weakness
 There is inadequacy production capacity utilization
 It has to depend on few suppliers of critical raw materials
 Imports of cheap textiles from other Asian neighbors
 Use of outdated manufacturing technology
 Poor supply chain management

Opportunities
 competitor’s product’s quality is considered to be inferior as compared to our
company
 Growing power sector machinery.
 Export potential growing.

Threats
 Competition in Domestic Market
 Ecological and Social Awareness
 Cut throat competition given the demand-supply imbalances in the markets.
 Frequent changes in government policies.
 Some of the critical raw materials to be imported

43
SWOT ANALYSIS OF MARKETING DEPARTMENT

Strength
 Accessibility to customers at all times.
 Number one company in producing chemical products.
 Promptness and responsiveness to customer needs.
 Demand for the products in the market, which increase in supply.
 Prices are normal compared to their competitors.
Weakness
 Delay in goods supply to the customer.
 Damages of goods send will create bad impression on the company.
 If heavy expenses are not made on marketing.
 Promises made by the company must be satisfied.
 Cannot compensate for a poorly trained and ineffective sales force.
Opportunity
 Government of India in general.
 Good quality products of DCW are produced, makes many customers to buy the
products from them.
 Brand name makes many customers not only in home country but also abroad.
 They do direct marketing, which is a major opportunity.
Threats
 Must have an eagle eye on the market and the competitors.
 Other competitors using new and advance technology in making products, this
may create fear in marketing.
 While exporting the products to abroad any natural calamities occurs in
transportation will make major loss.
 Removal of subsidy affects profitability and viability of many industries.

44
SWOT ANALYSIS OF FINANCE DEPARTMENT

Strength

 The company has built up strong, stable management cable of riding through the
vices studies.
 DCW has focused on development of value added and exports oriented products
like upgraded limonite and pigment grade yellow iron oxide.
 Production and sales both are standardized for the whole year, so no loss is
occurred.
Weakness

 Due to Absenteeism more expenses are done on wages and overtime payment,
which is paid in double.
 Machines must be maintained properly; otherwise again a huge amount of
investment must be done on fixed assets.
 Due to chemicals products production, there will be high-level maintenance
expenses must be needed.
Opportunity

 Many Government policies are introduced.

 Foreign orders are many, so products are exported in huge quantity.
 Fewer expenses are made on raw materials.
 The government introduces many new schemes.
 Injured or death or damages can be Insured. Many Insurance policies are available
and can be claimed
Threats

 Company's secrets financial matters must not be leaked out.

 Government increases the Taxation rates on sale of products.
 Foreign orders are reduced, and then exporting will be minimized.
 Fall in price on finished goods will make income less.

45
 CHAPTER –V

5.1 CONCLUSION

The Sri Muhuntha paper is one of the internship training specify with production,
Personal Management and Promotional Strategy Management. Then the department
analysis with SWOT (Strength, Weakness, Opportunity, Threat) with increase student
knowledge attitude and skills.

The internship study is helped to make a valuable conclusion through the analysis
of different functional departments of the paper boards presently with the prominent
niche in the market.

46
 5.2 BIBLIOGRAPHY

1. Ashwatappa.K, Human Resouse and Personnel Management Fourth

Edition2004 - Page no 225 to 269.

2. Richard I Henderson Second Edition 1984 - Performance Appraisal– Page no 1

to 325.

3. Philip Kotler, Marketing Management, Printice Hall of India Pvt.Ltd.,

4. Dr.S.N.Maheswari, Financial Management Principles and Practices, 10 th Edition,

Sultan Chand & sons publishers New Delhi.

Website

www.muhunthapaper.in

www.managmentjournals.com

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