Indian rubber is about hundred years old and has become third largest
industry of the nation after steel and textile industry. Rubber is Keralas primary
and prestigious crop. About 90% of the total rubber production in India is
accounted by the state of Kerala. It is cultivated in about 8, 90,000 hectares in the
state and nearly 67% of the total used is covered by rubbers plantation crops.
Natural rubber or natural CSI poly isoprene is produced from rubber tree
HeveaBrasilienis. The tree is also known as courthouse, a name given by Native
Americans, which means weeping tree.
Natural rubber is collected as a milky tapping rubber tree. The most
common method of tapping is cutting of thin portion of the bark in the shape of a
half spiral using a special tapping knife. The milky sap commonly called latex is
a colloidal dispersion in aqueous medium.
The rubber is separated from latex by coagulation. The common coagulant
is acid, preferable formic or acetic acid. The coagulant is separated and the
absorbed water removed by the passing through the pressure rollers.
Subsequently the sheet is passed through corrugated rolls to increase the surface
area by rubbing. These facilities are fast drying. These sheets are then dried in
smoke house at a temperature not exceeding 60 degree Celsius using hot smoke
of burning wood. The creosote compounds in the smoke provide a mild
protection to the rubber.
Hanani Rubbers is one of the leaders in producing rubber mats in India. The
present study is an attempt to examine the organisational performance of the
organisation.
1.4 Methodology
The study has been conducted by collecting both primary and secondary data.
Primary data were collected with discussion with managers of different
departments and personal interviews with the employees and labourers of the
company. The method of observation is also adopted with a view to assess the
relationship between different departments, communication system in the
organisation etc.
Secondary data were collected from annual accounts and reports of the company,
reports of rubber board and official website of the company.
Data Collection
Primary Data
1. Discussion: with managers of different departments
2. Data collected from employees through personal interview
3. Observation: by observing the functions of various departments
Secondary Data
Secondary data collected from various books includes:
1. Annual accounts and reports of the company
2. Company web site and general web site
3. Reports of Rubber Board
Reference Period
Secondary data were collected for the period of 5 years from 2007-08, 2008-09,
2009-10, 2010-11 and 2011-12.
3
Global Scenario
The production of rubber and rubber products is a large and diverse industry.
Natural rubber, obtained from plantations in Africa and Asia, accounts for only
about 25% of the rubber used in industry. Synthetic alternatives, developed
during World War II, are the primary sources of raw materials today.The world
production of rubber was considered to be very unstable during the last few years.
The latest rubber statistical bulletin and rubber industry report published by the
International Rubber Study Group for October-December 2011 states that,
"Annualized global rubber consumption reached 25.8 million metric tons by the
end of the third quarter of 2011, 6 percent higher than at the same point in 2010,
reflecting a decelerating increase in the demand for vehicles and tires. Global
synthetic rubber production was 7.5 percent higher than at the end of the third
quarter of 2010, in line with the relatively strong growth seen in the consumption
supported by competitive prices, while the global natural rubber supply was 4.1
percent higher than at the end of the third quarter of 2010.
Indian Scenario
Rubber producing regions in India are divided into two zones traditional and
non-traditional.
Traditional zone include Kanyakumari district in Tamil Nadu and all districts of
Kerala.
Non Traditional zone includes coastal regions of Karnataka state, Goa, State of
Andhra Pradesh, some areas of Maharashtra, North-eastern states (mainly
Tripura) and Andaman and Nicobar Islands.
The Rubber industry in India has been growing. This is the result of India's
burgeoning role in the global economy. India is the world's largest producers and
third largest consumer of natural rubber. The high growth of automobile
production and the presence of large and medium industries have led to the
growth of rubber industry in India.
5
Indias production varies from 6 and 7 lakhs tons annually which amount to Rs.
3000 crores. Seventy percent of the total rubber production in India is in the form
of Ribbed Smoked Sheets (RSS). This is also imported by India accounting for
45% of the total import of rubber. The Indian rubber industry has a turnover of Rs
12000 crores. Most of the rubber production is consumed by the tyre industry
which is almost 52% of the total production of India. Among the states, Kerala is
the leading consumer of rubber, followed by Punjab and Maharashtra. The
exports of Indian natural rubber have increased tremendously over the years and
have reached 76000 tons in 2003-04.Though, India is one of the leading
producers of rubber but it still imports rubber from other countries. At present,
India is importing around 50000 tons of rubber annually. There are about 6000
unit comprising 30 large scale, 300 medium scale and around 5600 small scale
and tiny sector units. These units are manufacturing more than 35000 rubber
products, employing 400 hundred thousand people, which also includes 22000
technically qualified support personnel, contributing Rs. 40 billions to the
National Exchequer through taxes, duties and other levies. The Indian Rubber
Industry plays a vital role in the Indian national economy. The rubber plantation
sector in India produces over 630 hundred thousand tonnes of natural rubber and
there is a projected production of more than one million tonnes in near future.
This has helped in the radical and rapid growth of the Indian rubber industry. This
prospect of growth is further enhanced by a boom in the vehicle industry,
improved living standards of the people and rapid over-all industrialization. The
per capita consumption of rubber in India is only 800 grams compared to 12 to 14
kilos in Japan, USA and Europe. So far as consumption of rubber products is
concerned, India is far from attaining any saturation level.
This is another factor leading to tremendous growth prospects of the industry in
the years to come.
Kerala Scenario
Kerala contributes 90% of Indias total production of natural rubber. Also, Kerala
and Tamil Nadu together occupy 86% of the growing area of natural rubber.
Natural rubber is an elastomeric derived from latex of plants. The source of
6
plant of Kerala. Dutch colonialists brought rubber plant to Kerala. But at present
Rubber is an important source of Income for good number of Keralites. Kerala
accounts for 90% out of the total area under rubber cultivation in India. In Kerala
rubber is generally grown in the midlands and high lands including Kottayam,
Pathanamthitta, Kollam and Idukki. In 2009 the production of Rubber in Kerala
increased to 783,000 tonnes. Kottayam grows rubber in over 109,582 hectares
and produces 120,946 tonnes of rubber per annum. Kottayam, the fourth largest
rubber grower in India, produces almost nine percent of the worlds rubber. High
price of rubber has really warmed the Rubber planters in Kerala. But acute labour
shortage is affecting Rubber cultivation in Kerala.
and cost effectiveness by providing quality rubber products and delivering them
to the clients promptly."
Organisational Structure
An organizational structure consists of activities such as task allocation,
coordination and supervision, which are directed towards the achievement of
organizational aims. It can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment. An
organization can be structured in many different ways, depending on their
objectives. The structure of an organization will determine the modes in which it
operates and performs.
Organizational structure allows the expressed allocation of responsibilities for
different
functions
and
processes
to
different
entities
such
as
which controls all the other departments. The Purchase Manager, the Human
Resource Manager, the Production Manager, the Sales Manager, the Marketing
Manager, the Finance manager is assistant by their respective assistant under
each department. The middle level management comprising of assistants and
supervisors are supported by the workers comprising the lower level management
in their respective departments.
Chart
10
WORKING RESULTS
The working results of the company during the period from 2007-08 to 2011-12
are given below:
Operating Profit
The operating profit ratio of Hanani Rubbers is given in Table 3.1.
Table 3.1
Operating Profit Ratio of Hanani Rubbers from 2007-08 to 2010-11
(Rs. in Crores)
Operating
Profit (Rs.)
Sales
(Rs.)
Operating
profit ratio
(%)
2007-08
39.66
44.70
.89
2008-09
85.71
272.12
.31
2009-10
222.59
616.11
.36
2010-11
158.85
542.27
.29
2011-12
246.85
665.99
.37
Year
Source: Audited Financial Statements for the period from 2007-08 to 2011-12
11
The Table shows that the operating profit of the company has increased Rs.39.66
crores in 2007-08 to Rs.246.85 crores in 2011-12. The operating profit ratio has
decreased 0.89 per cent in 2007-08 to 0.29 per cent in 2011-12. In 2011-12 the
ratio is 037 per cent.
12
Chart Title
1
0.89
0.9
0.8
0.7
0.6
0.5
0.4
0.37
0.36
0.31
0.29
0.3
0.2
0.1
0
2007
2008
2009
2010
2011
Fig.2
Net Profit
The net profit ratio of Hanani Rubbers is given in Table 3.2.
Table 3.2
Net Profit Ratio of Hanani Rubbers from 2007-08 to 2010-11
(Rs. in Crores)
Year
Net Profit
(Rs.)
13
Sales
(Rs.)
Net profit
ratio (%)
2007-08
26.47
44.70
.59
2008-09
52.12
272.12
.19
2009-10
157.73
616.11
.26
2010-11
105.83
542.27
.20
2011-12
152.02
665.99
.23
Source: Audited Financial Statements for the period from 2007-08 to 2011-12
The Table shows that the net profit has increased from Rs.26.47 crores in 2007-08
to Rs.157.73 crores in 2009-10. However it decreased to Rs.105.83 in 2010-11.
Again it increased to Rs.152.02 crores in 2011-12. The table also reveals that the
volume of sales has increased from Rs.44.70 crores in 2007-08 to Rs.665.99
crores in 2011-12, recording an increase of 1389.92 per cent. The net profit ratio
also shows a decrease of 0.59 per cent in 2007-08 to 0.23 percent in 2011-12.
14
Chart Title
0.7
0.6
0.59
0.5
0.4
0.3
0.26
0.2
0.19
0.2
0.23
0.1
0
2007
2008
2009
2010
2011
Fig.3
PRODUCT SPECIFICATIONS:
Size in cm: 40x50, 40x70, 60x75, 50x100, 80x110, 100x150 approx
Thickness: 2.2 cm approx
Colour: True Black
Thin flexible wiper having ribs on the surface wipe away and remove sand and
grit. It is heavy duty cleaning mat. It is all weather resistant and very durable.
Traps dirt in design and prevents tracking. It prevents slipping on ramp ways.
PRODUCT SPECIFICATIONS:
Size in cm: 46x70, 60x100, 90x150 approx
16
Thickness: 1 cm
Colour: True Black
Soft rubber inter-woven plates form a unique design with great cleaning
efficiency and good anti-fatigue properties. Traps grit and sand within design and
does not allow tracking.
PRODUCT SPECIFICATIONS:
Size in cm: 45x75, 60x100, 75x90
Thickness: 1cm
Colour: True Black
The square mat is a symmetrical designer class mat for use both indoors
and outdoors in all weather conditions. The mat is highly durable and its unique
square print design blends form with function. The differential level flexible stud
ensures proper cleaning and compliments any decor.
PRODUCT SPECIFICATIONS:
17
Shoe mat is a durable, all-weather rubber mat suitable for indoor and outdoor
use. The unique foot print design with dual level flexible studs makes this mat
very effective in scrapping and collecting dust, sand and slush.
PRODUCT SPECIFICATIONS:
Size in cm: 40x60, 60x100 approx
Thickness: 1cm
Colour: True Black
Another product catering to the increasing demand is for the popular half
round design. Sturdy studs, bevelled borders anti slip underside combined with all
weather capability make this product unique.
18
PRODUCT SPECIFICATIONS:
Size in cm: 45 x 75 approx
Thickness: 1cm
Colour: True Black
PRODUCT SPECIFICATIONS:
Size in cm: 40 x 70 approx
Thickness; 1 cm
Colour: True Black
This chapter shows the functional department of Hanani Rubbers. There are seven
departments in the company. The functions of these departments are given below:
ADMINISTRATIVE DEPARTMENT
PRODUCTI
ON
DEPARTME
NT
PURCHASE
DEPARTME
NT
SALES
DEPARTME
NT
HR
DEPARTME
NT
FINANCE
DEPARTME
NT
MARKETIN
G
DEPARTME
NT
Fig. 4
Director
Factory
Manager
Accounts Manager
Admin Manager
Production Manager
Shift
Engineer
Loading Supervisor
Shift Supervisor
Workers
Fig. 5
21
Raw Materials
The main raw materials are:
a)
b)
c)
d)
e)
f)
g)
Natural Rubber
Synthetic Rubber
Process Oil
Zinc Oxide
Anti-oxidants
Sulphur
Accelerations
Shift
The company adopts 3 shifts. These are:
First Shift - 8.30 AM TO 4.30 PM
Second Shift - 4.30 AM TO 12.30 PM
Third Shift - 12.30 PM TO 8.30 AM
In these shift100 workers are divided and work is assigned to them.
- 1 ton
22
Machines Used
The details of the machines used in production are given below:
1. K-4MK3 Intermix Accessories
-2
2. Air Compressor
-1
-5
-1
-1
-2
-1
8. Overhead Crane
-1
-1
-4
-1
-1
-1
Quality Control
The word quality refers to the degree of excellence of a product. The
compensation today is cutthroat and every producer tries of to improve the
quality of the product to lure the customer. The Quality control is a systematic
control of those variables which affect the excellence of the ultimate product.
The company uses all types of production oriented quality control, Q1, Q2, Q3,
Q4, Q5, & Q6. The factory manager and the production manager are assigned for
quality control. The absolute quality controls are properly checked in the research
and development groups located at Kottayam.
23
Production Sequence
It is the process of arranging the machines in to one line depending upon the
sequence of operation. Materials are fed in to the first machine and finished
product comes through the last machine. This process is called product layout or
known as straight line layout.
Process of Manufacturing
The important steps involved in the manufacture of procured tread are described
below:
1.
2.
3.
4.
5.
6.
7.
8.
9.
24
Finance is the life blood of the business. For every activities related to business
finance
is
required.
Finance is
the
study
of
their assets over time under conditions of certainty and uncertainty. Finance is a
simple task of providing the necessary funds (money) required by the business of
entities like companies, firms, individuals and others on the terms that are most
favourable to achieve their economic objectives. A key point in finance, which
affects decisions, is the time value of money, which states that a unit of currency
today is worth more than the same unit of currency tomorrow. Finance aims to
price assets based on their risk level, and expected rate of return.
Maintenance of Accounts
Accounts in Hanani Rubbers are maintained as per the double entry principles.
The company maintain detailed account of its asset and liabilities, income and
expenditure. At the end of the year accounts are finalized and annual accounts are
prepared. They are properly audited.
Director
Data Entry
Operator
GM
Administration
Finance Manager
Cashier
Fig. 6
25
Fig. 6 shows the structure of the finance department of Hanani Rubbers. The
Director is the supreme power. Director is assisted by the General Administrator.
The Finance Manager falls below the General Manager Administration. Data
Entry Operator and Cashier come below the Finance Manager.
The company purchase of raw materials from approved suppliers only. The
approved given on the basis of quality text of raw materials price negotiations and
delivery. The company does make forecasting on purchase. The major purchase
26
raw materials like carbon, natural rubber are bought based on the principles of
purchase. The company adopt mainly just in time purchase.
Director
Purchase
Manager
Office
Supdt
Office
Assistant
Fig. 7
6. Turnover Analysis
7. Purchase Order
8. Follow Up
9. Rating Under Supplies
10. Vendor rating
11. Purchase Monitoring Invoice Checking etc
Credit Pattern
Hanani Rubbers purchases are of bulk nature and payment is made on cash
payment basis. There is 0% credit against cash purchase. For certain raw
materials like rubber chemicals, the company does take a credit time of 15 to 30
days. The company also provide advance payment for reputed suppliers.
Purchase Pattern
The purchase pattern of Hanani Rubbers is shown in Fig. 8
A
B
C
The figure shows the purchase pattern of the company. The company purchases
right quality material at right price and also makes sure it receives the materials at
the proper destination.
Marketing concept was born out of the awareness that a business to start with the
determination of consumer wants and ends the satisfaction of those who wants.
Marketing is the economic process by which goods and services are exchanged
and their value is determined in terms of money.
Director
GM
Marketin
g
Dispatch Manager
Sales Officers
HO Sales
Executives
Service Manager
Depot
Manager
Service Men
Depot Sales
Executive
Fig. 9
In the figure the Managing director is the top most authority. The General
Manager of Marketing falls below the Managing Partner. Dispatch Manager Sales
Officers and Service Manager come below the General Manager. Head of Sales
Executive and Depot Manager come below Dispatch Manager Sales Officers and
Depot Sales Executive below Depot Manager. Service men fall below the Service
Executive.
Product
Depot
Dealers
C &F
Agents
Corporation
Despatch
Fig. 10
Marketing Strategy
30
Customer
Market opportunity:
Identification of market opportunity is critical before the management of
affirm a decision to launch or diversify in any product area. This involves
analysis of the size of the market.
31
Market
segment
analysis
Competition
analysis
Industry
analysis
Trade
analysis
Demand
Conditions
Market Opportunity
Fig. 11
32
Director
Sales
Manager
Department
Manager
Stock Assistant
Accounts Assistant
Computer
Assistant
General
Workers
Asst
Fig. 12
The Fig.12 explains the structure of Sales Department of Hanani Rubbers. The
supreme power vests in the hands of the Managing Partner. Below the Managing
Partner falls the Director, followed by the Sales Manager. The Department
Manager comes below the Sales Manager. Stock Assistant, Accounts Assistant,
Computer Assistant and General Workers Assistant come below the Sales
Manager.
Function
The sale of Hanani Rubber products is based on the following sales policies and
norms:
1. Sales department receives the order from agents, dealers, contractors, etc
and passes the order to the factory for production.
2. Then the product is moved to the dispatch manager and is sold to the
customers as per the order.
3. Order receiving and dispatch are the major function of the sales
department.
33
Distribution Channel
1.
2.
3.
4.
Direct Dealers
C & F Agents
Licensed Parties
Exporters
The company sells its products through the above distribution channels. Hanani
Rubbers has dealers in all states. The company do supply its product based on
agreement.
The Fig. 13 explains the sales technique of Hanani Rubbers.
Sales Order
Finished Product
Despatch The Product
Customers
Fig. 13
34
In the figure the sales technique of the company is shown. After placing the order
for the product, the raw material is converted into finished products. On
completion of the product, the product is being despatch according to the orders
from the customers.
Sales Forecasting
Major forecasting is done at production meeting held at every month. The
members include production engineers, factory managers, supervisors, sales
personnels etc. The company products are seasonal in nature. So seasonal
forecasting is also conducted along with the meeting. Forecasting is conducted in
monthly, quarterly, yearly, basis.
Sales Promotion Policies
1. Right quality product, right price, right time deliver
2. The executives makes periodical visit to the dealers and agents on their
arrival to the head office.
3. Meetings and seminar are conducted occasionally and proper sales
analysis is made for promotion.
4. The company safeguards the customers interest and keeps a very strong
relationship with them.
5. The sales executives make a visit to the agents and people, to provide all
kind of assistance.
36
Director
Manager
Personnel
In-charge
Factory
Manager
Fig. 14
Fig. 14 explains the structure of the Human Resource Department. The Managing
Partner heads the Human Resource Department. The Managing Partner is
followed by the Director. Manager Personnel In-charge assists the Director. The
Factory Manager comes below the Manager Personnel In-charge and Manager
Accounts & Administration below the Factory Manager.
Recruitment
Maintenance of personnel files
Time keeping
Selection
Management development
Organisation change & organisation development
Job analysis
Human resources planning
Wages and salaries administration
10. Training
11. Introduction & orientation
12. Performance appraisal
13. Career planning & development
14. Develop a maintain quality of work life
Wages
37
Daily wages are given to the workers. They are provided according to rules
framed Board of Directors. Wages is provided by adding basic pay with dearness
allowance.
Other Benefits
The other benefits provide by the company are as follows:
1.
2.
3.
4.
5.
6.
7.
Medical aids
Loans
Night Bata
Overtime allowances
Production incentives
Insurance
Medical allowance leave with wages& Provident fund
38
Trade Union
The trade union is operating in the company is CITU, INTUC, BMS. Agreement
is made between Hanani Rubbers and the union members. It includes bonus
wages and other allowances.
39
Porter's five forces include - three forces from 'horizontal' competition: threat of
substitute products, the threat of established rivals, and the threat of new entrants;
and two forces from 'vertical' competition: the bargaining power of suppliers and
the bargaining power of customers.
(1) Threat of New Entrants
A growing industry often faces threat of new entrants that can alter the
competitive environment. There may however be a number of barriers to entry.
Potential competition tends to be high if the industry is profitable or critical.
In case of Hanani Rubbers, all the retail shops are the customers. Besides this, the
products are also exported to Sri Lanka, U.A.E, Netherlands, Germany and other
Middle East countries.
(2) Threat of Substitutes
The threat of substitution in an industry affects the competitive environment for
the firms in that industry and influences those firms ability to achieve
profitability. The availability of a substitution threat affects the profitability of an
industry because consumers can choose to purchase the substitute instead of the
industrys product. The availability of close substitute products can make an
industry more competitive and decrease profit potential for the firms in the
industry. In case of Hanani Rubbers, the substitute product is synthetic rubber.
Apart from the production of mats, they also concentrate on the production of
sandals in small scale.
stronger when demand for the product is growing slowly. The intensity of rivalry
between competitors in rubber industry is high and Hanani Rubbers has
limitations for price fixing. The main competitors of the company are Rubco
Rubbers. Essgee Rubbers & Melbin Enterprises, Vikas rubbers, Angel Rubbers,
Dolphin Rubbers, T.J.P Rubbers and Sharon Rubbers .
Swot Analysis
Setting the objective should be done after the SWOT analysis has been
performed. This would allow achievable goals or objectives to be set for the
organization.
Threats: external elements in the environment that could cause trouble for
the business or project
Strength
The strength of the company includes the following:
1. Good brand image
2. Production of Quality products
3. Fully automated production system
4. Well planned and controlled distribution network
5. Availability of skilled workers
6. Highly satisfied customers
41
Weakness
The weakness of the company includes the following:
1.
2.
3.
4.
5.
Opportunities
The following opportunities were identified for the company:
1.
2.
3.
4.
5.
Threats
The following are threats of the company:
1. Acute competition in the market
2. Large scale turnover of labourers
3. Rise in price of raw materials
4. Price of Artificial rubber is less than the Natural Rubber
42
43
Findings
The following are the findings derived from the study:
1. 90% of the total rubber production in India is accounted by the state of
Kerala.
2.
Conclusion
leadership and innovative ideas made Hanani Rubbers as one of the leading
manufacturers of rubber mat products in India.
Hanani Rubbers, ISO 9001: 2008 certified company is having all the plant
facilities and a number of permanent satisfied clients over a period of time. The
company is competent enough because of its product quality and timely dispatch
to the requirement.
The study came to the conclusion that there exist a good system of
management and administration in the company, the employer employee
relationship is better, the products has good market potential and the company has
good potential for widening its activities so as to satisfy the requirements of
national and international markets.
46
Suggestions
47
BIBLIOGRAPHY
REPORTS:
BOOKS:
Business Books-2004
WEBSITE
www.hananirubbers.com
48