JLL

INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) are products that are sold quickly at relatively
low cost. Though the absolute profit made on FMCG products is relatively small, they
generally sell in large quantities, so the cumulative profit on such products can be large.
FMCG Products are generally replaced of fully used up over a short period of days weeks, or
months, and within one year. This contrasts with durable goods or major appliances such as
kitchen appliances, which are generally replaced over a period of several years.
FMCG industry provides a wide range of consumables and accordingly the amount of
money circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing. The industry has a good market potentiality because of low operating cost and
strong distribution networks. Population growth is another factor which is responsible behind
the success of this industry. It creates a wide range of job opportunities. This industry is a
stable, diverse, challenging and high profile industry providing a wide range of job categories
like sales, supply chain, finance, marketing, operations, purchasing, human resources,
product development and general management.
FMCG industry is characterized as, a defensive sector with relative inelastic demand,
time –lag between expansion of income and impact on industry, low technological barriers in
terms of technology or investments, imagery and price premium central to FMCG marketing,
new customer acquisition through smaller-sized packaging and low unit prices, high
competition at various price points especially at the regional levels, enhanced bribing of
customers through freebies, focus on increasing reach.
Household care products are a major segment of the FMCG industry. Household care
comprises household cleaners, laundry care, toilet cleaners, air fresheners, insecticides,
Mosquito repellents, polishes and other products related to household care.

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INDIAN OVERVIEW
The Indian FMCG sector is the fourth largest in the economy in globally. As per The
Federation of Indian Chambers of Commerce and Industry (FICCI) the estimated market size
of the FMCG segment in India is Rs 113,000-crore. Industry projections estimate growth at
30% in 2009-10. The industry recorded 17-18% volume growth in the last financial year. The
FMCG industry in India was worth around US$ 16.03 billion in August 2008.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, toothpaste, skin care, shampoos, etc, in India, have low per
capita consumption as well as low penetration level, but the potential for growth is huge.
The Indian FMCG industry is divided into five primary segments – personal care
products, household care products, packaged food products, branded spirit and tobacco
products as well as health care products.
GLOBAL OVERVIEW
Even as the Indian FMCG is governed by local, regional and national undercurrents, it
worked as a subset of the global FMCG industry as well. The global FMCG market was
valued at USD 230 billion. Almost 70% of the global FMCG market was accounted for by
developed geographies like the USA, Europe and Australia.

Western Europe 31%

Africa/Middle East 4%
Australia 2%
Asia Pacific 25%
Latin America 10%
North America 22%
Eastern Europe 6%

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COMPANY PROFILE
Jyothy Laboratories Limited (JLL) is a fast moving consumer goods (FMCG)
company and caters to the fabric care, household insecticide, surface cleaning, personal and
air care segments of the Indian market. JLL’s products include fabric whitener, mosquito
repellent, dishwashing, bath and incense products. With 21 manufacturing units in 14
locations across India, JLL has a distribution sales network of over 1,500 people catering to
approximately 2,500 distributors. Its flagship brand, ‘Ujala’ a fabric whitener has a dominant
market share of 73.50 % and it had a growth of 13% in the last financial year 2008-09(March
ending). The other major brands Maxo and Exo had a growth of 30.8% and 98.7 respectively
in the FY 2008-09.
The Company’s future plans include, launching of Exo Round Dish Shine Bar,
increasing Ujala Stiff and Shine’s market presence, entering into joint ventures for sales and
marketing of branded products, pursuing selective acquisitions and concentrating on
supermarket and hypermarket sales.

a. BACKGROUND AND INCEPTION OF THE COMPANMY

Jyothy Laboratories Limited (JLL) was established in 1983 by M.P. Ramachandran, a
sole proprietorship firm in Kerala which was involved in the business of manufacturing and
selling fabric whitener under the name “Ujala”. It started by manufacturing and selling a
single product, Ujala. As of now, they are into fabric care, household insecticide, surface
cleaning, personal care and air care segments. Key brands include Ujala, Maxo, Exo, Jeeva
and Maya. Jyothy Laboratories limited engaged across the complete FMCG product cycle
management, research, manufacture, marketing and branding. It concentrated in marketing a
range of daily household and personal care products. It headquartered in Mumbai with a
nationwide distribution network.
The Company incorporated as Jyothi Laboratories Private Limited on January 15,
1992. It became a public limited company further the name was changed as Jyothy
Laboratories Limited on October 6, 1995. Further the name changed to Jyothy Laboratories
Limited on August 12, 1996. And the Registered Office was moved from Kerala to Mumbai
on July 7, 2000.

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Jyothy Laboratories Limited was listed on Indian Stock Exchanges in 28th June 1996
through an IPO with price band of 620-690. It issued 44,30,260 equity shares at Rs 5.00 each.
History
Year Events

1983 Mr. M. P. Ramachandran starts Jyothy Laboratories concern

in Kerala. Ujala is launched.
1984 Ujala is sold house to house through a team of six sales people
in several districts of Kerala.
1986 Jyothy Laboratories releases its first print advertisement in the
Kerala based Mathrubhoomi newspaper.
1987 Jyothy Laboratories starts advertisements on radio.
Jyothy Laboratories graduates to a formal distribution system.
Jyothy Laboratories ventures out of Kerala to the neighboring
State of Tamil Nadu.
1992 Chennai factory is commissioned to make Ujala.
Company was incorporated.
1994 Commission the Pondicherry plant, first in backward area
utilizing
Government incentives.
1995 Launch Nebula, an oil based antibacterial washing shop in
Kerala.
1997 Launch Ujala all over India.
2000 Launch Maxo (mosquito repellent) in the state of West Bengal.
Exo , an antibacterial dish wah bar, is launched in Kerala and
Later Lanched across Karnataka, Tamil Nadu and Andhra
Pradesh.
2001 Launch Vanamala washing soap in Kerala.
Launch Maya incense sticks in selected states.
Acwuire the detergents plant at Pithampur, Madhya Pradesh
From Tata Chemicals Limited.
2002 Acquire subsidiary, Sri Sai Homecare private Limited, which

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has Mosquito coil production facility in Hyderabad.

Launched Jeeva Ayurvedic Soap.

2003 Maxo is awarded the “AAA Brand Performance Award” by

the All India Advertisers Assosiation.
2005 Exo Liquid and Ujala Stiff & Shine launched in south India.
2007 Acquires trademark and copyright for the More Light and Ruby
Brands.
Got listed in NSE/BSE
2008 Launched Ujala Stiff and Shine all over India.
Moves its registered office to its own building ‘UJALA
HOUSE’ in Mumbai
2009 Celebrated the 25th Anniversary of Jyothy Laboratores.
Forays into service sector through new venture ‘ Jyothy
Fabricare Services Limited’ to provide worldclass laundry at
affordable price at consumer doorstep.

b. NATURE OF THE BUSINESS CARRIED

Jyothy Laboratories Limited is the company which have great market share in the
field of FMCG products in India. It carrying the business of household FMCG, fabric cares,
insecticide, personal cares etc. The key brands are Ujala, Maxo, Exo, Maya, and Jeeva.

Jyothy Laboratories Limited (JLL) is a fast moving consumer goods (FMCG)

company and caters to the fabric care, household insecticide, surface cleaning, personal and
air care segments of the Indian market. JLL’s products include fabric whitener, mosquito
repellent, dishwashing, bath and incense products. With 21 manufacturing units in 14
locations across India, JLL has a distribution sales network of over 1,500 people catering to
approximately 2,500 distributors.

c. MISSION,VISION AND QUALITY POLICY

MISSION
Provide brands that denote superior quality, to touch and positively impact the daily
lives of consumers. To ensure that our brands, business operations and corporate policies

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translate the core philosophy of offering value for the money spent to experience our
products. Ensure that our people, processes and products reflect the ideals of integrity, ethics
and professionalism.

VISION
Develop innovative brands, tap high growth categories, reach untapped markets and
explore untapped segments to meet the day-to-day requirements of every Indian household.

QUALITY POLICY
The Company adhered strictly to R&D-defined quality norms for superior products.
The vendors’ site and raw materials were checked to match desired quality. In-process quality
checks monitored process effectiveness. End products were checked for proper packaging
and leakages. The Company’s strong quality discipline resulted in ISO 9001 and ISO 14001
certifications across most of its manufacturing units.

d. PRODUCT PROFILE
The entire production activities of the company having places under the production
department, JLL has a well-established production planning and control
system. The products are,

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1. Ujala Supreme
Ujala is synonymous with the genesis of Jyothy
Laboratories Limited and has created history in more ways than
one. Ujala - the flagship brand of Jyothy Laboratories Limited
marked the beginning of endeavor to offer innovative and value
for money products to the Indian consumer.
The product category for a liquid fabric whitener was literally non-existent prior to
the advent of Ujala. While the “HAVE YOU CHANGED
OVER TO
UJALA”
punch
phrase
captured the
imagination
of people throughout the country, Ujala ushered in a revolution, with consumers shifting from
powder blue to liquid blue. Positioned on the platform of whiteness and brightness, Ujala is a
market leader in its category - the growing market share is a testimony to the brand’s
popularity.

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Ujala Supreme - used as a post-wash application for brightening white clothes has an
instant whitening system that assures uniform and consistent results.
Ujala Supreme is available in 9ml, 30ml, 75ml ,125ml and 250 ml bottles.

2. Ujala Washing Powder

Ujala Super Washing Powder – launched with an innovative formula is a reflection of
the constant endeavour of the R&D centre at Jyothy Laboratories Limited. Ujala Super
Washing Powder, with its advanced cleaning power ensures superior cleaning at a reasonable
cost.
While its special action penetrates deep into clothes to dislodge stubborn dirt, oil and
stains, Ujala Super Washing Powder has pleasant fragrance, leaving clothes fresh and clean.
Absolutely soft and safe on hands, Ujala Super Washing Powder is tough on grime and
provides superior cleaning at an affordable cost.
Ujala Super Washing Powder is available in 25gm, 500gm and 1kg packs.

3. Ujala Stiff & Shine

Ujala Stiff & Shine is a shining example of the product development initiatives of the
R & D division at Jyothy Laboratories Limited. Positioned uniquely to address the need to
keep ensure that clothes retain the crisp feel and a sparkling appeal, Ujala Stiff & Shine is

specially formulated to maintain clothes at their crisp and shining best. It is suitable for
clothes of all fabric type and colours.
A post-wash liquid fabric enhancer, Ujala Stiff & Shine helps provide the stiffness for
that crisp look without the white patches and bad odour commonly associated with starch.
What’s more, unlike the inconvenient and messy experience of using starch, Ujala Stiff &
Shine is handy and easy to use. Ujala Stiff & Shine gives that special sheen to clothes,
making them as good as new - offering premium quality and utmost care for your laundry.
Ujala Stiff & Shine is available in 20gm sachets, 100ml and 200ml bottles.

4. Maxo Aerosal
Maxo Aerosol is a must have in your household kit – to ward off pesky pests. Fully
loaded with a potent combination to ward off cockroaches, ants, houseflies, lizards etc. Maxo

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Aerosol is formulated to hunt out these pests from their hideouts and eliminate them.
Maxo Aerosol is presented in handy containers of 150ml and 300 ml.

5. Maxo Cyclothrin Coil

Maxo – the offering in the Household Insecticide segment from Jyothy Laboratories
Limited took the mosquito repellant market by storm.
Maxo Cyclothrin coils have been developed to offer total protection from mosquitoes.
While other mosquito coils tackle mosquitoes only when they come in proximity to the coil,
the unique action of Maxo Cylothrin coil smokes out mosquitoes from their hideouts and
destroys them - providing corner to corner protection and a peaceful sleep all through the
night. Besides having a pleasing fragrance, Maxo is specially designed to avoid breakage
while separating the coils from the packaging.
Maxo Cylothrin coils are available in Regular, XL and Giant sizes and provide
protection for 8, 10 and 12 hours respectively.

6. Maxo Cyclothrin Liquid

Maxo Cyclothrin Liquid in a handy liquid vaporizer format offers complete and cost
effective protection for 45 and 60 nights. Formulated with active ingredients, this vaporizer
provides a potent and convenient solution to counter mosquitoes and constitutes the first line
of defence against potential diseases and health hazards.
Maxo vaporizer is available in bottles of 30ml for 45 nights and 45ml for 60 nights.

7. Exo Dish Wash Bar

Exo Dish wash is yet another offering that draws on the wealth of experience of our R
& D division. The product is not meant to just clean utensils, but also provide protection form
bacteria and harmful germs.
Fortified with powerful anti-bacterial agents, Exo Dish wash bar fights and kills
disease causing bacteria that enter food through contamination of utensils. The powerful
formula removes sticky oil stains, grime and stubborn burnt food residues from utensils and
makes them safe and sparkling.
Exo Dish Wash Bar is available in 190gms and 380gms packs.

8. Exo Dish Wash Liquid

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Exo Dish Wash liquid presents all the potent qualities of the innovative Exo
formulation in a convenient to use liquid variant. Exo Dish Wash Liquid is the only anti
bacterial dish wash liquid with Cyclozan as the active ingredient. Convenient and handy, this
is ideal for stainless steel, crockery, cutlery and non-stick kitchen ware. Exo Dish Wash
Liquid ensures streak less glasses, gleaming cutlery and sparkling dishes while disinfecting
them.
Exo Dish Wash liquid is presented in elegantly designed 500ml bottles & 125ml bottles.

9. Jeeva Naturals
Jeeva Naturals is yet another special offering from Jyothy Laboratories Limited’s
Personal Care portfolio. This specially formulated beauty soap range is packed with hand
picked ingredients from nature to enhance the experience for the discerning consumer. Jeeva
Naturals is a range of soaps that encapsulates the goodness of coconut milk. Coconut milk is
nature`s treasure trove of minerals, vitamins, essential oils and proteins. This is further
enriched with other natural ingredients like Kasturi Manjal, Milk protein and Jasmine,
renowned for their skin nourishing benefits. Jeeva Naturals is available in three variants -
Coconut Milk with Milk Protein, Coconut Milk with Jasmine and Coconut Milk with Kasturi
Manjal, and is presented in 75gm packs.

10. Maya
Maya is a fragrant offering from Jyothy Laboratories Limited comprising of a wide
range – an ideal fragrance for every occasion in the form of agarbathis (incense sticks).
Inspired by nature, the enchanting array of incense sticks provides the perfect ambience and
enhances the experience to match every mood.
Carefully selected, each fragrance from the exotic collection is formulated to spread
faster and linger longer. The Maya bouquet comprises of a wide range of floral, traditional
and aromatic fragrances like Rose, Jasmine, Sandal, Sarvasugandhi, Magic, Milan, Prarthana
and Raaga 4-in-1, with many more varieties collection.
The Maya range is presented in attractive pouches and cartons containing 8, 15, 20, 40 and
100 sticks.

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e. AREA OF OPERATION
Jyothy Laboratories Limited is operating in the FMCG industry in India. It has a well
established distribution network and very skilled manufacturing units across in India. It
manufactures the products through manufacturing facilities in 14 locations across India, eight
of which are tax efficient units. Tax efficient facilities are set up to take advantage of certain
tax breaks offered by the central and state governments. Manufacturing facilities located in
these geographical locations are granted the following
• Exemptions from income tax on profits made from these facilities.
• Exemptions and refunds of excise duty on products manufactured at those
units.
• Exemptions from payment of VAT on sales of products of these units within
specified areas by concerned state governments.
Jyothy laboratories esatablished a distribution network across india with a sales staff
of over 1500 people servicing approximately 2500 distributers, Ujala fabric whitener was
available in approximately 2.80 million outlets in india as June 30, 2007.

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Manufacturing Facilities across India

f. OWNERSHIP PATTERN
Jyothy Laboratories Limited incorporated as Jyothi Laboratories Private Limited on January
15, 1992. It became a public limited company further the name was changed as Jyothy
Laboratories Limited on October 6, 1995. Further the name changed to Jyothy Laboratories
Limited on August 12, 1996. Now the copmany is operating as a public limited company in
the industry. The initial authorised capital of company was Rs. 2,000,000 comprising 400
equity shares with a face value of Rs. 5000 each.
Board of Directors
Mr. M. P. Ramachandran……………Executive Director (Chairman and Managing Director)
Mr. K. Ullas Kamath………………...Executive Director ( Deputy Managing Director)
Ms. M. R. Jyothy…………………….Executive Director
Mr. Nilesh B. Mehta…………………Non-executive independent Director
Mr. K. P. Padmakumar………………Non-executive independent Director
Mr. Bipin R. Shah………………....Non-executive independent Director

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g. COMPETITORS INFORMATION
• Hindustan Unilever Limited
• Procter & Gamble
• Godrej Group
• Cholayil pvt ltd

h. INFRASTRUCTURAL FACILITIES
Medical Facilities
• First aid appliances
• Ambulance
• Doctors
Well furnished office buildings
• Sitting arrangements
• Lunch room
• Ventilation/lighting
• Toilet
• Lighting
• Drinking water facilities
• Seminar hall
• Lifts
• Racks
• Telephone facilities

Well furnished Plant and Technology

• 21 manufacturing plants across India

• ISO 9001 and ISO 14001 certified plants
• Vacuum Dryer
• Lighting
• Mixer Machines

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• Generator arrangements
• Bottling machine

Storage

• Packing Department
• Warehouse

Safety and Security

• Fire extinguish
• Emergency Exit
• Security Guards and cameras
• Transportation facilities

i. ACHIVEMENTS AND AWARDS

ACHIEVEMENTS

1. Jyothy Laboratories releases its first print advertisement in the Kerala- based
Mathrubhoomi newspaper in 1986.
2. Ujala becomes a INR 100 crore Brand in1999.
3. Diversified into the household insecticide and untensil care segments with
the launch of Maxo and Exo new brands.
4. Acquires trademark and copyright for the More Light and Ruby brands.

5. Moves its registered office to its own building ‘UJALA HOUSE’ in Mumbai at
2008.

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6. Forays into service sector through new venture ‘ Jyothy Fabricare Services Limited’
to provide worldclass laundry at affordable price at consumer doorstep.

AWARDS

1. Awarded the ‘AAA Brand Performance Award’ for Maxo by the All India
Advertisers Association in 2003.
2. Company was awarded the ISO-14001 Certificate and a ISO 9001 certification for
all of its manufacturing facilities & R & D Centre.

j. WORK FLOW MODEL

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k. FUTURE GROWTHS AND PROSPECTS

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MCKENSEY’S 7S FRAME WORK

The 7-s framework of MCKENSY ‘S is a value based management (VAM) model that
describes how one can effectively organize the company. Together these factors determine
the way in which a corporation operates.

Origin of the 7-S Framework

The 7-S framework was first mention in the art of Japanese management by the Richard and
Antony Athens in 1981. They had been investigation how Japanese industry had been so
successful. At around the same time that Tom Peters and Robert Waterman where exploring
what made a company excellent.

The seven S model was born at a meeting of these four authors in 1978 it appeared also in
research in search of excellent by Peter Sand Waterman, and was taken up as a basic tool by
the global management consultancy since then it is known as 7-S model.

The Meaning Of the 7-S

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SOFT Ss

The 4s across the bottom of the model are less tangible, more cultural in nature, and were
termed soft ‘Soft Ss’ by McKensy.
Skills: The capabilities and competencies that exist within the company.

Shared values: The values and beliefs of the company. Ultimately they guide the employees
towards ‘valued’ behavior.

Staff: The Company’s people resources and how they are developed, trained and motivated.

Style: The leadership approach of top management and the company’s overall operating
approach.

HARD Ss’
The 3 Ss across the top of the model are described as ‘Hard Ss’.

Strategy: The direction and scope of the company over the long term.

Structure: The basic organization of the company, its departments, reporting lines, areas of
expertise and responsibility (and how they inter relate).

System: Formal and informal procedures that govern everyday activity, covering everything
from management information systems, through to the systems at the point of contact with
the customer (retail systems, call centre systems, online systems, etc)

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STRUCTURE

BOARD OF DIRECTORS

CHAIRMAN &
MANAGING DIRECTOR

DEPUTY MANAGING
DIRECTOR

RESEARCH & HUMAN

FINANCE &
SALES MARKETING OPERATIONS DEVELOPMENT RESOURCES
ACCOUNTS

GM -
NORTH Rajiv GandhiCFO
Institute
& CS Of Technology, Bangalore
DIRECTOR VP- R&D 20
 JLL

GM -
WEST
GM-
GM OPERATIONS
GM -
EAST

MGR-
GM - AGM MARKETING MGR- HR
SOUTH

GM – General Manager VP – Vice President

AGM – Assistant General Manager MGR - Manager

CFO – Chief Financial Officer

CS – Company Secretary

DEPARTMENTS

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

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7. Quality Control

FINANCE DEPARTMENT STRUCTURE

DEPUTY MANAGING DIRECTOR

CHIEF FINANCIAL OFFICER

GENERAL MANAGER FINANCE

ASSISTANT GENERAL
MANAGER FINANCE

ACCOUNTS OFFICERS
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Jyothy Lab Limited follows a centralized Accounting system. It’s 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

1) 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.

2)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 company’s services and
also for fixed assets like machinery.

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4. DIVIDEND 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. The dividend issued by Komul is up 255 of its profits. This varies from
year to year depending upon the factor.

3) 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.

4) 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.

5) 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 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.

MARKETING DEPARTMENT STRUCTURE

MANAGING DIRECTOR

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DIRECTOR OF MARKETING

MARKETING MANAGER

MARKETING OFFICER

MARKETING FIELD OFFICER

Jyothy Lab’s marketing is a key factor in developing brand awareness and

stimulating consumer demand.Over a period of time Jyothy Lab have build substantial
brand equity for the products and services as a result of the effort of marketing system.

Jyothy Lab invest in advertisements aand salespromotion (SAP) to build awareness

and loyalty for brands in the minds of consumers. During the financiall year ended June 30,
2006, ASP expenditure constituted 9.08% of the consolidated total income and during the
financial year ended June 30, 2007, it was 9.09% of the consolidated total income. ASP is
incurred both on strengthening established brands and nurturing new ones. JLL use various
media such as television, radio, press, outdoor hoardings, and the internet to communicate
with consumers. It also focus on marketing to retailers ti increase brand awareness and
generate positive placement of out products in retail outlets.

HUMAN RESOURCES DEPARTMENT STRUCTURE

MANAGING DIRECTOR

H R MANAGER

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Personnel officer Legal Officer

Executives

Dept. Staff

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 belive in meritocracy and this policy commeneces
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 ndia . 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.

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PRODUCTION DEPARTMENT STRCTURE

GENERAL MANAGER OPERATIONS

MANAGER PRODUCTION

ASSISTANT MANAGER PRODUCTION

TECHNICAL OFFICER

PLANT SUPERVISORS

ADMINISTATIVE ASSISTANT

TECHNICIANS

PLANT OPERATIONS

HELPERS

Production refers to the transformation of various raw materials inputs into physical outputs
or finished products.

Among all the functional area of management production is considered to be crucial in any
industrial organization. All other activities revolve around this activity. The end product. Of
the production activity is the creation of goods and services for the satisfaction of human
wants. Production activity is the step-by-step process by which raw material and other
inputs are converted into finished goods or products.

RAWMATERIALS: Across the products that JLL makes, some of the major raw
materials include HDPE, acid slurry, synthetic organic dye, Koylene, LABSA,
Esbiothrin and brown saw dust. High Density polyethylene (HDPE) is used for
packaging purposes and it is the largest raw material consumed by the
company. Brown saw dust, required for the mosquito repellent coils is a

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seasonal commodity and is stock piled to ensure year round production of

coils.

JLL is a large consumer of plastics. The costs of this packaging material are
directly linked to global crude oil prices. A spurt in the same could lead to
reduced margins.

SKILL

Jyothy laboratories belives that employee base is a key compitative advantage. The senior
management team has a breadth of experience in the FMCG industry. The skills and
diversity of employees gives the flexibility to respond to the needs of our customers and
customers. The company dedicated to development of expertise and know-how of the
employees and continue to invest in them through training and skills.

JLL’s well-qualified and experienced management team has played a key role in the
development of good corporate governce, effective internal controls and accounting
policies, strong employee relation s, and stable supply chain relationships. The
organization provides different types of training for the employees in the different
jobs. They are

INTERNAL TRAINING:-

 Training needs of various departments are provided by the human resource/

Administration department, based on the course planner.
 Periodical training is given to the marketing executives.
 Both on job and off job training is provided to the technical and clerical staff.

EXTERNAL TRAINING:-

 Specialized training to technical and quality control staff

 Seminars, convention, conference and workshops.
 Customer awareness
 In plant training will be given to the employees and students.

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STYLE

The organization has a Top down style of management. It also has a Participative
style of management where the orders flow from the superior to the subordinate. It
has a two-way communication from both the direction in the organization. The
management gives more importance to the employee’s views while the decision is to
be taken it also considers the farmers views while taking some decision as it is a co-
operative society.

Top down Decisions

• Fixing the targets to the employee and the workers who are working in the
organization.
• Reducing or increasing the price of the product
• Policy issues

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

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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.

4. JLL seek to improve effeciencies 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.

SYSTEM

INFORMATION TECHNOLOGY SYSTEM

Information technology systems are important to the business. JLL is heavily reliant on
information technology system in connection with

• Order booking

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• Procurement of raw material

• Accounting

• Production

• Distribution

• Disaster recovery systems

Information technology system is a very efficient system which helps JLL to work more
effectively and faster as much accurate in the operations, quality control, finance, marketing
and all in the business activities. Information technology system is very sensible so any
failure in IT systems could result in business interruption, adversely impacting the reputation
and weakening if our competitive position and could have a material adverse effect on the
financial condition and results of operation but JLL have many experienced employees to
maintain the information technology systems very smoothly, so the information technology
system is very effectively applicable in JLL.

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

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endeavors to achieve the highest level of transparency, accountability, integrity and

responsibility by following the best practices in Industry.

SWOT ANALYSIS

After a keen observation over the organization and the various departments of Komul,
the following strength, weakness, opportunities and threats are known

Strengths
• Good reputation among customers.
• Well-established distribution network extending to rural areas.
• Strong brands in the FMCG sector.
• Low cost operations.
• Quality

Weaknesses
• Low export levels.
• Small scale sector reservations limit ability to invest in technology and achieve
economies of scale.
• Several ‘me-too’ products.
• Advertisement spending etc is limited.

Opportunities
• Large domestic market.
• Export potential.
• Increasing income levels will result in faster revenue growth.
• Mid class buying behavior

Threats
• Imports
• Tax and regulatory structure.
• Slowdown in rural demand.
• Emergence of new competitors.

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SUMMARY OF LATEST ANNUAL REPORT

• The “Sales” of the company registered a growth of 28.65% which is increased to

117.86 crores in 2007-08.
• The Loan funds had decreased from Rs 6.37% crores in the year 2006-07 to Rs 86.9
crores.
• The reserves and surplus has been decreased 3.99% compare to the previous year.
• Profit and loss a/c has been increased in present year of 07 to 55.03%
• The fixed asset of the company has decreased in 2007 compared to the previous year
of 2006.
• The current asset of the company had been decreased compared to the previous year
2.74%
• The current liabilities of the company as decreased to 6.13% compared to the previous
year.

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LEARNING EXPERIENCE
The in-plant training at Jyothy laboratories limited was very much useful for me for
knowing about organizational structure and formations and it’s working. It helped me gain
practical knowledge about different functions of various departments of the company. All the
staff in the company was very much cooperative and very keen to explain each and every
aspect. Thus through training I was able to make a thorough study of the company’s activities
in each section and was able to acquire practical knowledge in this field. This study was of
great benefit for me to my future career.

Four weeks in-plant training at Steel complex limited gave me an opportunity to

know about the industrial world. In the company I learned about how the management
theories and concept applied in an organization. I saw how few managers managed a large
number of employees and machines to run the company in a profitable way. More over the
in-plant training was a good exposure for me to the working conditions of the organization.
Another important aspect which I noticed in the company was regarding the discipline
followed in the office. The employees were very friendly and co-operative.

The great thing about the company is that they were really making use of the
motivational theories to motivate the people in the organization. They concentrate on
motivating the people towards the organizational goals. They motivating and managing the
people without any conflict. Since the company is a government enterprise, they follow
autocratic style of leadership. Then also they take feedbacks from the employees and consider
those aspects in decision making process. In the nearby future the company is going to be a
joint venture. All the employees of the organisation are well trained to adapt any changes
made by the organisation.

I came across some departments in the organization. They are:

Finance department

Human resources department

Production department

Quality control department

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Each department plays an important role for the success of the organization. Even one
department not functioning properly definitely the working efficiency will come down of that
company.

Also in today’s competitive world all company should follow the Integrated
Marketing i.e. all the departments must be tightly integrated keeping the market as pivotal in
order to beat the competition..

To conclude it was a great experience for me for the entire four weeks in the Jyothy
Laboratories Ltd. The practical experience gained by me during my in-plant training is a lot.
It is entirely different from the theory what one learns in the class room. The situations read
and explained theoretically are fully different when it comes to the practical. The practical
situation broad in nature and they are entirely different from one situation to another. I felt it
as a golden opportunity to inter link what I have learned in the class room with practical
functions of an organization.

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