Anda di halaman 1dari 39

Indigo Paints

CHAPTER 3

PROFILE OF THE ORGANISATION

3.1 INTRODUCTION ABOUT THE COMPANY

INDIGO PAINTS

ADDRESS : pottekattu building,

No. IX/688(A), HMT ROAD,

KALAMASSERY, COCHIN-683503

PHONE : 0484-3299907

E-MAIL : cochin@indigopaints.com

WEBSITE : www.indigopaints.com

3.1.1 NATURE OF THE BUSINESS

INDIGO Paints is a young paint manufacturing company, focusing on delivering

& servicing the customers with healthy eco-friendly product match with international

standards

3.1.2 HISTORY OF THE FIRM

Started in the year 2000, Indigo Paints had a modest beginning. It started out with

manufacture of lower-end Cement paints, and gradually expanded its range to cover most

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 19


Indigo Paints

segments of water-based paints like Exterior Emulsions, Interior Emulsions, Distempers,

Primers etc. From an early age, the Company spread its footprints across the country,

with rapid expansion of its reach across India. Today the Company stands out as one of

the strongest contenders in the Indian paint industry, being rated as an innovative paint

manufacturer, which keeps coming out with unique products never before offered in the

country.

The Company’s strategy and approach were very different from other paint

manufacturers from the very outset. The Company pledged to manufacture only eco-

friendly water-based paints, which are not harmful to the health of the customers or the

applicators. The Company eschewed the temptation to manufacture any solvent based

paints, which are extremely harmful to the health of the users, regardless of their profit

contributions.

Over time, the Company found its niche in the paint industry through innovation.

It kept churning out bright new ideas for painting solutions, with alarming regularity.

Gradually, the industry began looking upon the Company as a futuristic thinker and a

storehouse of new product development.

With changing time and trends, Indigo Paints revamped its identity showcasing a

new wave of thinking by the Company. A few years ago it clubbed all its multiple brands

for different product categories into a single umbrella brand “INDIGO”. A new logo for

the brand and the Company was created, which accurately reflected the core philosophy

of the organization. The logo design was extended to all packaging design and other

forms of corporate communication. Going forward Indigo Paints will keep evolving

itself. We plan to come up with innovative products at regular intervals and continue to

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 20


Indigo Paints

surprise our customers. A strong focus on advertising in the years to come will set us

apart from the competitors and help gain considerable market share

3.1.2.1 INDIGO PAINTS KALAMASSERY

Indigo paints Kerala section is headed by indigo paints kochi. The indigo paints

kochi was formerly HI-BUILD Coatings Pvt Ltd, a Kochi-based company, which became

a subsidiary of the Oman-based Sadolin Paints Ltd and expanded its capacity and

operations. The HBC unit has been modernized and expanded to manufacture wood care

products and triggered up its capacity. The products ranged from protector products to

finishing paints. The technology used was from Danish Company, Finn Giese. The unit

situated at the South Kalamassery near Major Industrial Estate was expected to make a

large annual turnover. Of late, there had been a good general demand for wood care

products in Kerala and the annual demand was estimated to be large.

However, it is a highly competitive market with majors such as Asian

Paints,Nerolac, ICI, Berger etc. controlling around 60 per cent of the market. Besides,

Kerala has around 100 hundred small-scale units engaged in manufacturing paints.

Availability of housing loan at low interest rates has activated the house construction

sector and this in turn has accelerated the demand for wood care products and paints.

Added to this, of late, there has been an aesthetic appreciation of wood works done in

residential buildings in Kerala and this phenomenon has increased the use of wood care

products rather than paints in windows, doors etc, And the company hopes that its

products would be absorbed by the Kerala market. With these reasons in mind, indigo

paints planned to spread more of its presence in Kerala, and bought HBC and later in

2016 march hi built coating (HBC) merged with indigo paints. The Kochi indigo paints is

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 21


Indigo Paints

now heading the Kerala area and is the central warehouse in Kerala it too coordinates the

trissur , kollam , Calicut and kochi depots. HBC became indigo paints pvt ltd as per the

high court of Maharashtra and the national company law tribunal order came on

02.03.2017permitting the merger and came to affect on 1st April 2017.

3.1.2.2 The Indigo brand identity

The identity has two parts:

(a) A visual: a zebra with multi-colored stripes, instead of just black and white

ones, to dramatize the ‘unexpected’ nature of the brand’s solutions.

(b) A brand line that succinctly sums up what the brand stands for.

3.1.3 BOARD OF DIRECTORS OF INDIGO PAINTS

MANAGING DIRECTOR: HEMANT JALAN

3.1.3.1 MANAGERS OF INDIGO PAINTS (Kochi)

1) Varghese idikkula (Production)

2) Madhu T.K. (Administration & HR)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 22


Indigo Paints

3) Satish paul and chethan humane(Finance& Accounts )

4) Suresh babu(Marketing)

5) Rajmohan (logistics and dispatch)

6) Sajoy bose c( materials management )

7) Varghese idikkula (QC and R&D)

3.1.4 MISSION

Going forward Indigo Paints will keep evolving itself. We plan to come up with

innovative products at regular intervals and continue to surprise our customers. A strong

focus on advertising in the years to come will set us apart from the competitors and help

gain considerable market share.

3.1.5 VISION

Setting new work strategies, innovative product development and market research

fundamentals, while keeping the spirit of wonderment intact, Indigo Paints has stood out

in a class of its own from its fellow competitors.

The ability to innovate and provide surprising results and never-thought-of approaches

for deeper understanding of market insights has been the key differentiator.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 23


Indigo Paints

3.1.6 PHILOSOPHY OF ORGANISATION

Indigo’s products reflect this philosophy completely:

 India’s first Metallic paint, which gives a unique look to your walls

 India’s first Floor Coat paint, which can withstand any vehicular traffic

 Unique Ceiling Coat paint, for brighter and whiter ceilings

 First-of-its-kind Tile Coat paint for roofs, which gives an excellent glossy look

 Eco-friendly Water-based Enamels with a super glossy finish

. 3.1.7 AREAS OF PRODUCTION

The south Indian production held at Ernakulum. The head office is situated at

pune and the south Indian sector is headed by kalamassery unit. The good quality and

variety shades and properties of products help the company to face the competition. The

company indio paints has 4 depots in Kerala, covering all districts.

3.1.8 CERTIFICATIONS

OHSAS18001:2007

ISO14001:2009

ISO9001:2008

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 24


Indigo Paints

3.1.9 MILESTONES

2016-17 HBC merged with indigo paints

3.2 PRODUCT PROFILE

The paint industry is broadly classified in to two categories:-

1. Industrial paints

2. Decorative paints

Indigo paints deals in decorative paints, the different products produced in

indigo paints factory are shown below:

PRODUCT LINE

Exterior emulsions Interior emulsions Acrylic distempers Enamels

Primers Sleek wood coatings Undercoating’s

Strainers and colorants

Chart 3.1- flow chart of indigo paints product line

(Source: Company Records)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 25


Indigo Paints

3.2.1 PRODUCTS

The products are mainly sold in 500ml, 1lt, 4ltr, 10ltr, 20ltr cans.

a) Exterior emulsions

 Acrylic laminate –platinum series

 Premium XT emulsion-platinum series

 Exterior emulsion- gold series

 Climex plus exterior emulsion

 Climex exterior emulsion

Readymade shades

 Fantasy exterior emulsion

Readymade shades

 Climex plus roof tile coat

 Climex plus tuffloor

 Climex plus leak proof emulsion

b) Interior emulsions

 Luxury interior emulsion –platinum series

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 26


Indigo Paints

 Premium interior emulsion –gold series

 Interior emulsion –silver series

 Interior emulsion-bronze series

 Flair glow premium interior emulsion-slft glow finish

 Flair interior emulsion –rich matt finish

 Fantasy interior emulsion

 Vipco interior emulsion

 Vipco ceiling white emulsion

c) Acrylic distempers

 Acrylic distemper-gold series

 Acrylic distemper-silverseries

 Acrylic distemper(pouch)-silver series

 Fantasy acrylic distemper

d) Enamel

 PUsuper gloss enamel-platinum series

e) Water based Primers

 Sealer primer –platinum series

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 27


Indigo Paints

 Stain block primer – platinum series

 Exterior wall primer-gold series

 Water thinnable cement primer –gold series

 Water thinnable cement prime –silver series

 Water thinnable cement primer-bronze series

 Super prime cement primer

 super prime pro rich zinc chrome primer

 super prime pro single pack eproxy primer

 super prime pro anti efflorescenece primer

 super prime pro damp seal primer

f) Solvent based Primers

 S T red oxide metal primer –gold series

 S T wood primer-gold series

 Zinc chromate primer –gold series

 Climex exterior primer

 Fantasy inex primer

g) Sleek wood coatings

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 28


Indigo Paints

 Sleek single pack PU

 Sleek single pack PU (EXTERIOR)

 Sleek two pack HS melamine

 Sleek NC sanding sealer

 Sleek anti- termite solution

h) Undercoatings

 Acrylic wall putty-gold series(20kg,10kg,5kg,1kg)

 Polymer putty gold series (40,20,5)

 Polymer putty silver series

 Knifing paste filler- silver series

 Primer surfacer

i) Strainers and colourants

 Universal stainer(200,100,50 ml)

 Machine colourant new(1ltr)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 29


Indigo Paints

3.3 ORGANISATIONAL STRUCTURE

Board of directors

M.D (PUNE) EXECUTIVE


DIRECTOR
(KOCHI)

General Manager General Manager Generalmanager


(marketing) (human resource) (finance and
accounts)
General Manager
Sr. manager (technical)
marketing
Manager Manager
Materials accounts finance

Regional manager
manager Sr. manager (production)
Management
Sr. officer logistics representative
s
Developmen
Asst. manager
t manager

Chart 3.2- flow chart of organizational structure

(Source: primary data)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 30


Indigo Paints

3.4 ANALYSIS OF DEPARTMENTS

The analysis of departments of indigo paints at kalamassery kochi Indigo paints

pvt ltd, kochi follows a flat organizational structure where the general manager or

technical manager heads the work at Kerala and under the G.Ms guidance works the

functional departments of the company.

3.5 DEPARTEMTALISATION

The main objective of the organization study is to understand the functions of

various departments of the organization.

There are seven departments in indigo paints are;

a) Marketing Department

b) HR Department

c) Finance and Accounts Department

d) Technical departments

i. materials management

ii. Production Department

iii. Logistics department

iv. QC and R&D

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 31


Indigo Paints

Functional departments

Technical department
MARKETING HR FINANCE
R&D AND QC
LOGISTICS
MATERIALS PRODUCTION

Chart 3.3- flow chart of functional departments

(Source: primary data)

3.5.1 MARKETING DEPARTMENT

The role of marketing department is planning, implementing and control of

marketing activities. Marketing starts with generation of ideas .To objective is to increase

profit and goodwill of the enterprise and to satisfy the needs and wants of the customers.

This department is headed by Marketing Manager. The Marketing Manager is responsible

for all the marketing and sales promotion activities.

There are one marketing managers in indigo paints kalamassery. One for

managing the marketing process inside Kerala, and another is for marketing the product

outside the Kerala. The minimum qualification for the Marketing Manager is an MBA

graduation with minimum 5 years of experience in this field. The Marketing Manager

regularly visits each Sales Officers area and evaluates their performance. He appreciates

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 32


Indigo Paints

the Sales Officers who achieve targets and persuade them to improve their marketing

activities. He also gives suggestions to improve the market share of the product.

3.5.1.1 Selling procedure

The selling procedure is that, the orders are taken by sales executives or is taken

from depots through SAP and is forwarded to the Marketing Manager, after his

inspection, it is transferred to the Accounts Section then to dispatch. Here all the

accounting procedures take place and, prices are fixed and the terms of payment are also

made. Where the bills are prepared and from there the goods are dispatched.

The market is Kerala is segmented and 4 depots are made in order for making

product easily available. Sales support schemes are adopted by the company to increase

the sales volume. Sales forecasting is done on the basis of previous sales. For sales

officers, targets are fixed. If they achieve the targets they get incentives. The products

have a medium shelf life after which the guaranteed quality may not be received. Within

24 hrs the complaint will be acknowledged and within 3 days the complaint will be

handled.

The price of the product differ as per the base colors used the shades of

color opted for the products. The price for products base and shades are fixed for the

products. Product wise analysis is made to know about the movement of the products. If

any difficulty is found they adopt new strategies to improve the movement of the product.

To improve the sales the company participates in programs like exhibitions and sponsor

some events to make the company get noticed in the market. For the same décor club and

painters meet are organized.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 33


Indigo Paints

3.5.1.2 Competitors

Now the main competitors of INDIGO PAINTS are Berger, dulux, Asian, apex.

3.5.1.3 Functions of marketing department

The marketing department starts its work from the idea generation stage to sales

follow up. every department is collaborated with each other whatever may be the work

the marketing department may have to assist the concerned department .the marketing

department of indigo paints has a wide range of functions to be carried on are:

i. sales and marketing

As for the main and very common function of a marketing department is to

improve the sales of the product of the company by use of different techniques to

promote the products .the company uses different scheme and advertisements for

sales promotion and customer attraction.

i. Schemes

There are annual different schemes introduced by the company attract

customers like

 Decor club

The company has also started a point scheme program i.e., decor club (Kerala) or

artist club(rest of India). Painters are registered in to this club; up to know 4000 painters

have been already registered. for every purchase of products from indigo paints the

painter is credited with points in his name .the points have been already set upped for

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 34


Indigo Paints

products .the painters are at painters meet given gifts, gold or trips for the points awarded

to them .of other companies indigo paints have a major strike in this place as the

company provides re.1 for a point whereas other companies only give 45por 25p worth

gifts for 1 point.

 Annual schemes

The annual scheme is provided for the dealers on the basis of their annual

sales of the dealers their annual growth rate and annual turnover. The annual

dealer’s sales scheme is set on the basis of their increase in sales and achieving set

targets for sales. On achieving the targets reward is given. The reward may be

 Foreign trip schemes

The company provides tour schemes to dealers. The dealers are hitched

into the scheme and with achievement of the targets they are given trips as a

reward .the company provides 3 foreign trips and a domestic trip. Foreign trip

may be to Europe, Bangkok or Thailand .the domestic trip may be anywhere in

India which will be pre selected

ii. Advertisement

Advertising is a tool of marketing to influence the customers to buy the product.

Indigo paints uses the following Medias for promoting their products .Advertising

Medias used are,

1) Newspapers and magazines

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 35


Indigo Paints

2) Television ads

3) Exhibitions and fairs

4) Posters

5) Hoardings

For selecting these too there are several factors to be considered like the

vehicle selected for giving ads the release time of the ad which would give more

exposure for the ad(festive season ). Majority of the advertising is done by

company chlorophyll.

ii. Complaint Handling Relation

The marketing departments also have to deal with the complaints from the

ultimate customer, painters and dealers. The company provides toll free number

in order for any complaints to be registered or complaints can be given through

Sales executives .any complaint given will be acknowledged wit 24 hrs time and

will be seen to it that it is closed within a max of 3 days . first on receival of a

complaint the snr manager sees to it and is acknowledged and is check up on with

staffs whether it has to be send to the lab or other step is to be taken .the past 3

batch samples will be retained with the lab which would help to find out if it is

the problem of the batch products .the main problems may be color fading which

may also be due to improper use of machineries or because of presence of

artificial elements and environmental exposure. After checking the results the

company takes on what remedy to be taken.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 36


Indigo Paints

iii. Painters Meet

Indigo paints also organises painters meet. painters above 10 numbers is called

upon or shop meet is done where the high estimates sale painters are brought

together .The gifts for painters in décor club is distributed in painters meet. The

company also hosts polisher workshop during painters meet.

iv. Tinting Machine

Tinting machines are color mixing machines .the marketing dept has to see

to it the tinting machine dealers ,should set up color point managers and service

engineers . Tinting machines is used to provide customers with their preferred

shades with use of base colors’ .the marketing dept also have to prepare the shade

cards in order to give idea for the customers about the colors’ available and they

also have to update the cards with variety and innovative and different colors so

as to attract the customer.

v. Package designing

The marketing dept also has to take on the package designing for the product with

a view to attract the customer with the packaging of the product .indigo paints has

recently changed its packaging designs.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 37


Indigo Paints

3.5.1.4 Marketing objectives

1) To establish a corporate image.

2) To make products visible in the market through the effective market coverage

and penetration.

3) At the shortest period to be covered the entire market and develop brand

image.

4) Design schemes in order to capture the market

General Manager
(marketing)

Snr. Regional sales manager


Manager(ind
Kerala Kerala Kerala Manger color
ustrial sales
Marketing
north central south points

trainee

Marketing
executive Area sales Senior sales
manager executive

Sales
executive,
sales officer
Marketing Service
supp. engineer
executive color points

Chart 3.4- flow chart of structure of marketing department

(Source: company records)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 38


Indigo Paints

3.5.2 FINANCE AND ACCOUNTS DEPARTMENT

The finance department of the indigo paints kochi is headed by sathesh paul .

3.5.2.1 Significant accounting policies

 The financial statements of the company have been prepared in accordance with

generally accepted accounting principles in India (Indian GAAP).

 The financial statements are prepared on accrual basis and under historical

convention.

 Inventories are valued at lower of cost net realizable value.

 Depreciation on tangible fixed assets is provided on straight line method over the

useful lives prescribed in schedule II of the companies act, 2013.

 Investment subsidies grant from state government in the nature of capital

contribution is treated as reserve and credited to capital reserve.

 The company has provided tinting equipment to dealers on an operating lease

basis.

 Company now follows GST and has 28% tax rate .

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 39


Indigo Paints

3.5.2.2 Functions of accounts department

The basic function handled by the this department in the company is

 Banking transactional activities

i. Bank payments

It deals with over view of working capital payments ,payments by

vendors through bank, other expenses transferred through bank,

machinery loans transactions.

ii. bank receipts

the section also looks out for the entries in the banks thatis, receipts for

the company i.e., receipts from customer in for the company term loan

repayments

 cash transactions

the account section also monitors and gets upto date every transaction in

cash .mainly all transactions are through bank and cheque only small

amout are transacted in pure cash. Like freight ,small recipts from

customers , scrap sales receipts

 purchase accounting and purchase return activities

 store material invoice maintenance

 other purchase invoice maintenance

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 40


Indigo Paints

i.e. purchase details on consumable purchases, stationary purchase and

purchase in factory, material inwards freight(frights are mainly accounted and

recorded by the dispatch section)

BOARD OF DIRECTORS

M.D . EXECUTIVE DIRECTOR


( PUNE) (KOCHI)

G.M. – FINANACE G.M. FINANCE

ACCOUNTING FINANCE
section section
Account’ Account’ Maintains
s of s of accounts
SOUTH CENTRAL NORTH
depots Jodhpur at pune
(KOLLAM) (KOCHI) (CALICUIT)
in 28 factory
states
Maintains Maintains
accounts at books of
kochi accounts at
factory pudukottai
factory

Chart 3.5- flow chart of structure of finance and accounts department

(Source: company records)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 41


Indigo Paints

3.5.2.3 GST implementation

with the emergence of GST the tax percentage of the company has shifted from

27 %(i.e. 14%+14%) to 28%(as paint comes under luxury category) . With emergence of

GST it was said there will be decrease in price of product but with increase in tax

percentage the decrease percentage was small .even through with the increase in

percentage the company was able to decrease the price or maintain the price because of

the gst benefit on excise duty. Of which the company was able to give a slight decrease in

price for the product with implementation of GST.

3.5.2.4 Books maintained

 Cash book

 Bank book

 General ledger

 Purchase ratio ,sales ratio

 Debtor ledger

 Creditor ledger

 Inventory register

 Finished goods stock ledger(kept with dispatch section)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 42


Indigo Paints

3.5.3 H.R. DEPARTMENT

In indigo paints kochi there are 203 employees .of which 143are non executives,

42 are line managers with supervisory powers and 24 are managers. In addition to these a

few are also engaged occasionally to meet the business exigencies. There are seven

persons in the house keeping who are engaged through a contractor. Though not engaged

directly as the principal emplyor, company ensures that they are paid salary as per

minimum wage act .

Recruitment at indigo is centralized. Recruitment starts with a position request

from the respective department head . hr manager will review the request from the

respective department head. H r manager will review the request on the basis of

organizational structure. Advertising in the newspaper and recruitment consultancies are

the main recruitment source and reference from employees are also Taken for getting

the right candidate.

employees who are employed in indigo paints are covered by all statutory social

security scheme like ESI and EPF . employees state insurance is applicable to employees

whose fixed component of the salary does not exceed Rs.21000. the scheme which is

administered by the government through a wide net work of hospitals and dispensaries

aims to provides medical, sickeness, maternity and other benefits to employess and their

family member. Towards which every employee will contribute 1.75% of this salary

whereas the employers share is 4.75% of the slary paid. Besides the insured employee

and his family members consisting of his spouse and children, his dependent parents will

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 43


Indigo Paints

also get benefits if monthly income of parents is less than Rs 5000. Similarly , minor

brother or sister wholly dependent upon the earnings of the employees will also get the

benifts provided the employee is unmarried and his or her parents are not.

Employees provided fund which is another social welfare aims to fund the employees

during his retirement life by way of continuous monthly payment of pension. Every

employee contributes 12% of his salary for dearness allowance . the employer contributes

12% on the same together with employees deposit linked insurance (EDLI) at the rate of

.05% and administration charges @0.65%. of the contribution of 12% by the employer ,

8.33% calculated on maximum salary of Rs 1500 goes to pension.

3.5.3.1 Pay processing

Indigo paints had been paying wages to its workmen well above wages fixed by

the government under the minimum wages act even though under the minimum wages

act. Paint industry is not brought in as a scheduled employment . the company follows an

accelerated pay scale with 15pay grades . total pay consists of a basic salary , variable

dearness allowance linked to consumer price index ,fixed dearness allowance as a

percentage of basic pay , house rent allowance , medical allowance and(for higher grade

staff) reimbursement of the telephone and fuel bills subject to certain sum fixed.

Currently pay is processed by the finance department . Salary of all employees except

employees engaged for work of casual or temporary nature and those engaged through

contractor are paid through bank by crediting the employees saving bank accounts

opened in SBI and union bank of India. Salary is usually paid on 1st 0f the month itself.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 44


Indigo Paints

3.5.3.2 Bonus

The employees are being bonus at the rate of 20% of their total salary earned

during the year . bonus is not restricted to those whose salary does not exceed Rs21000

nor is it limited to percentages on Rs 7000 , as per payment of bonus act but it is paid

irrespective of salary and without any qualifying salary to compute it.

3.5.3.3 Gratuity

Gratuity is a superannuation benefit payable by an employer when an employee

leaves the company after rendering a service of at least 5 years. Indigo paints pays a

higher rate of 30days pay for the years in excess of 20 years for those who retire after

rendering a service of more than 20years

3.5.3.4 Leaves and holidays

Indigo paints at Ernakulum follows the Kerala industrial establishments (national

and festival holidays) act for declaring holidays during a year .holidays are fixed for the

year in consultation with employees and the trade union. Accordingly, four national

holidays and 9 festival holidays are declared as closed holidays for the company .

Maternity leave is given to women employees as per the provisions of maternity benefits

act

 casual leave :9 days

 Privilege leave :one day leave per 10 days worked

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 45


Indigo Paints

3.5.3.5 Training

Company gives adequate training to do their job safely and competently. Hr.

department prepares an annual training plan on consultation with HODs which will

include all training needs whether internal on the job or other of the employees of

different departments. Training is usually conducted separately for non executives and

executives.

3.5.3.6 Performance appraisal

The company recognizes employees as its most important resource and the

performance management and development process is one of the way in which people

can be made aware of their value to the organization. Measuring, improving and

rewarding performance is an ongoing process. It included informal and formal review .

All employees undergoes a formal performance review with their immediate line

manager /reporting officer at least two times a year

3.5.3.7 Grievance redressal committee

With a view to redressing the individual grievances of employees a committee has

been formed in line with the provisions of industrial dispute act 1947.

The committee has 6 members of which 3 are representatives of the employees and of

which at least one member is a women. Any employee may submit any grievance to the

committee in writing. And if not satisfied with the decision the person can go for an

appeal against the committee to the MD.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 46


Indigo Paints

3.5.3.8 Terminating of employees

The service of a permanent employee shall be terminated by giving him notice in

writing or paying salary in lieu of notice and a permanent employee can resign frm work

wby giving a notice for a period as per the contract .the salary earned by him shall be

paid after obtaining sanction from the departmental heads

3.5.3.9 Objectives of Performance Management System at indigo paints

• Facilitate organisation-wide performance orientation

• Alignment to organisational goals and objectives

• Help retain talent

• Uphold the value of transparency & fairness

• Motivating through Differentiation

3.5.3.10 Responsibilities of H R manager

 Annual human resource planning

 Sourcing manpower through HR service providers

 Maintain database of potential candidates

 Communicate company policies to employees

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 47


Indigo Paints

 Motivating employees to perform and improve

 Maintaining harmonious industrial relation.

 Interacting with personals for resolve issues.

 Facilitating annual performance appraisal.

 Conduct exit interviews and use the information for improving company policies.

3.5.3.11 Authority

 Authorising appointment orders for employees below the level of sr. managers.

 Authorize routine communications relating to recruitment activities.

 Recommend disciplinary actions.

3.5.4 TECHNICAL DEPARTMENTS

3.5.4.1 MATERIALS DEPARTMENT

The material management department deals mainly with the procurement of

materials needed for the company .the materials order may be placed on the basis of the

annual plans made by the company as per the budget for the year set .the budget for the

current year is set as per the previous years sales with an extra 50-60% extra sales

estimates .

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 48


Indigo Paints

Paint business is a seasonal business so the company manages the budget as per the

requirement of the products. In Kerala the e peak season is from January to may and

diwali time in all India. Based on the annual plans monthly ands extra 50 -60% growth is

estimated on previous year’s sales

Production plan is setup on the bases of the sales plans. for the production plan

the 50 day plan is set up 20th of every month plan is made as known the estimated sales

may not always be as per estimation except for fast moving items (fmcg).sales plan

contains inventory valuation , sales requirement estimated and the stock with the

company . considering all this the company sets the production plan and considering this

the material need is estimated and orders are placed ,the raw material for the company

are imported from Germany ,Italy ,Vietnam and also from Bombay and Chennai for the

procurement to there is planning needed ,for a raw material to be approved the vendor

should be an certified vendor or the products samples should be approved by the labs in

order for placing the order for the product . the company also negotiates with the vendors

for the price of the product the company welcomes quotations from different company

and after the sample approval the company selects a vendor which satisfies the plan laid

down .the selected vendors are to place quotations for the materials and from which the

company selects the lowest quotation or as per the predetermined rules ,within 30days

the company pays the price payment is done through on line. The delivery of the raw

materials is done straight to the plant or to a warehouse from there the company

transports the materials to the factory. For the transportation there are dedicated

transporters and inbound logistics transportation companies like ARC,KRS, ATC etc .

the factory provide a GRN(goods recieval note) on recieval of the foods at the factory.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 49


Indigo Paints

The stock is then valued and the receipt inspection is done to compare with the invoice.

Critical materials are first tested from the lab before loading in to the factory if it is not as

per quality but within limits it may be considered or else necessary actions may be taken.

There are atotal of 6 staff in materials department 2 purchase officers and 4 stock keepers

headed by a materials manager.

3.5.4.2 PRODUCTION DEPARTMENT

The production is set as per the annual plans and from the derived monthly plans

.the production plan is set as per the sales estimation done and based on which the

company makes the plan for production . The production plan for the company is

extracted as monthly plans from the annual plan and also company sets daily plans on the

basis of monthly plans set. The kalamassery production unit of the indigo paints

produces both solvent and water based paints . the main components of a Pint are resin,

pigments, extentors and liquid content for the paint . the pigments and extetors changes

as per products and shades . batch cards are made for every batch which specifies the

details about the batch .the production departments functions involves the production and

packaging . the batch sheet is made at qc dept where the batch card and 1 ltr sample is

send to the qc dept for examination and only after the approval from the dept. the

product is sent in for packing .the stamped approval is given from the qc dept .

The factory now produces both solvent and water based products but will sooner

concentrate on water based products and the other production center at pudukottai will

focus on solvent based products . There are 2 main functions carried on in the factory the

production and the packaging both are machine based .there are currently 3 working

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 50


Indigo Paints

machines for paint production in the factory . Disperser is suitable for liquid, mixing,

dispersing, dissolving evacuation of all range of product viscosities. Efficient machine for

dispersion of powder into liquid used for mixing in batches in easy to change tank .it is

provided with fix speed, to speeds or variable speed drive. a hydraulic lifting column can

be used for adjusting height of dispersion disk inside the tank as well as changing the

tank. The company uses

i. A twin tank shaft disperser

Twin shaft disperser contains two impellers on each shaft. It has single motor

between 15 to 60 hp. Variable speed shafts, the twin shaft are for higher viscosities or

larger batches and for easier loading with less dust .

ii. Shaft disperser

Tank mounted disperser, simple in design and operation. It has a advantage of low

cost but less flexibility of operation. It occupies less space compared to other models.

This can be provided with impeller operating in fixed position or vertically

adjustable with electro-hydraulic lifting. The company also uses a continuous transfer

dispersement system i.e., ystral inline high speed dispersing machine.

The paint product made is then directed to packaging machine the filling

machine , where the machinery is automated where the details on packaging is to be

given the quantity to be released in every bucket etc these are then caped and stored on

pallets and is then transported to company warehouse at kalamassery and is distributed as

per order.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 51


Indigo Paints

The company also has to follow certain rules and laws normacleacure there are

certain mandatory laws implemented by the govt to be followed while packaging the

company is to show the batch no , m.f.d, m.r.p , company address etc on the packet

(bucket) . the batch samples are retained with lab for 2 yrs for any future reference for

any consumer redressel .the quantity of the paint packed in every pack is set by first

calculating the vapour liter of the product as the packaging is done in liters but the filling

machine does it in kg so in order to transfer kg into liters calculating the vapor liter of the

product.

The company also makes solvent based paints in a small circle and also makes

putty which will be wholely shifted to pudukottai plant and kalamassery unit will only

concentrate on water based paints. The solvent based machinery also uses the same

components as the water based but doesn’t use water for blending slurry is added in here

there are beeding present in machinery which help in dispensing of the components.

3.5.4.2.1 Waste treatment

As per the pollution board it is specified there is a specified waste disposal

restriction for which the company treats the waste water with chemicals and the treated

waer is used for pupose like gardeniong and other uses it is not safe for drinking purpose.

3.5.4.2.2 Safety measures

 Gloves

 Goggles

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 52


Indigo Paints

 Mask

 Shoes

3.5.5 QUALITY CONTROL, RESEARCH AND DEVELOPMENT

DEPARTMENT

This department both departments is functioning in indigo paints under the

control of the technical manager.

3.5.5.1 Function of a QC dept

 Check the viscosity of the paint

 Calculate the ph and contrast ratios

 Check the dilution of the paint

 Weight per litre ,colour difference bases etc are also checked by qc dept

The comptrollers use group field viscometers, flockups, wieghtperliter cups and

spectrophotometer etc. for quality control.

3.5.5.2 Functions of R&D

 New product development

 Competitor evaluation

 Developed sample evaluation

 Shade development

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 53


Indigo Paints

For developing a new product they first set the properties that the product GOT

to have and the desired extenders is added as per scales .the company saves different

shades of color ratios after formulation thus for future use .the company also uses the

competitors product as a reference (benchmark) which will be improved new touch is

given and released. The formations and specifications thus made is transferred to the QC

department. A market trail is done on the new product to know the acceptance by the

consumer and based on this feedback the product is launched in to the market.

3.5.6 DISPATCH AND LOGISTICS DEPARTMENT

This department not only does the name sake job of distribution but also carries

out various other duties .it to works collaborated with other departments of the company

hand in hand .dispatch and Logistics Department is headed by rajmohan ,logistics

Manager. In indigo paints, there are 3 staffs in logistics department. The logistics

manager, Asst. manager and a management trainee. The department also handles various

non permanent low floor workers.

3.5.6.1 FUNCTION OF THE DEPARTMENT

This department carries on the following functions

1. material management

2. sales and distribution

3. logistics execution

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 54


Indigo Paints

4. production

5. production process

6. plant maintenance

7. customer service

8. quality management

9. logistics controlling

10. project system

The central warehouse of indigo paints Kerala is at cochin, kalamassery. The

products are transported from production house to warehouse and it is then distributed to

various deports in Kerala. The Kerala circle is divided into 4 area kochi, trissur, Calicut

and kollam. The head office of Kerala is at kochi. In south India the indigo paints factory

is at cochin (Kerala) and pudukote (tamilnadu).

Earlier the production took place at jodhpur factory and all the products where

distributed to different depots from there ,now items for Kerala are made at kochi facility

and distributed in Kerala thus is able to decrease the fright charges.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 55


Indigo Paints

Factory (kochi)

Warehouse (kochi)

Kochi depot Calicut depot Kollam depot Trissur depot

(sales executives)

Retailers, painters

Chart 3.6- flow chart of Distribution channel of indigo paints

(Source: company records)

The company deals with SAP therefore the logistics department gets the order

information with out the placement of order .company from here itself calculates the

order based on previous orders and takes other specific orders (as per specific instruction

of customers). The company uses first in first out method (FIFO) so it should be seen to it

that all products are properly ordered in the warehouse and properly layouted

3.5.6.2 Responsibility of the key personal

The duties of a logistics manageger is a combination of fuction mentioned

above and which is achieved with ombined effort of logicticd dept along with other

departments.

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 56


Indigo Paints

 Fixing an apt storage lay out

 Maintain a tidy storage space

 Immediate dispercement of orders

 Complete material layout

 Timely procurement of materials

TECHNICAL MANAGER

Sr. officer
logistics Sr. manager
Manager
(manufacturing)
materials

Asst.
manager
Purchase
Asst. Development
officer
manager manager

Management
trainee Technical R&D chemist
RM officer
store in-
Store charge
supervisor
QC CHEMISTs Applicators

Gen workers

Chart 3.7- flow chart of Technical department structure

(Source: company records)

Vimal Jyothi Institute of Management & Research Chemperi, Kannur Page | 57