This is the detailed project carried during my MBA (10 weeks) on the topic of "Birla Wall Care Putty in Retail Segment" by enduring practical study & research in the Company in the Year 2011 . (Thus, some of the details may have been changed).
The purpose of this upload is for "Students" carrying projects in Cement Industry to have an Overview of it.( I had some issue with "Uprooting the basics" thus sharing it for reference to get an basic understanding & working towards your projects")
This should be used for reference purpose only. Thus,having a basic understanding towards & make your projects accordingly. (Independently!!)
Thus, this report will not be available for downloads...
"Acceptance of Birla Wall Care Putty in Retail Segment"
1. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 1
INDUSTRY PROFILE
India is the world‘s second largest producer of cement. The Indian cement industry has
outpaced the growth rates of other prominent industries in the country on the back of growing
demand from the housing sector, increased activity in infrastructure development and exports
recovery. Recent industry developments and government supportive policies are attracting global
cement giants and industry developments and government supportive policies are attracting global
cement giants and sparking off a spate of mergers and acquisitions to spur growth.
Our report has found that the Indian cement industry sustained its growth rate even in the
tough condition of economic slowdown. Cement production increased 10.8% year-on-year in
2009-10. Almost all cement majors expanded their installed capacity in the backdrop of
government backed construction projects since these projects have created strong demand for
cement in the country. Moreover, it is anticipated that industry players will continue
to increase their annual cement output in coming years and the country‘s total cement production
will grow at a CAGR of around 10.5% during 2010-11-2013-14. On the regional front, Northern
Region (including Uttar Pradesh, Rajasthan, Madhya Pradesh and Haryana) is leading the country
in terms of cement consumption. Sufficient raw material availability of and various incentives
provided by state governments make this region lucrative for investments.
A number of domestic and international cement companies are striving hard to establish their
production base in this region. ―Indian Cement Industry Forecast to 2012‖ provides an extensive
research & objective analysis of the cement industry in India. It thoroughly examines all
prominent emerging trends and drivers fueling growth in the industry.
The report highlights major segments like production, installed capacity, export, import, plant
size & consumption to give clients valuable information of different aspects of cement industry. It
also throws light on the regional on the regional cement demand-supply outlook to help clients
understand the market dynamics and get an insight into the
industry at micro level. Most importantly, the report has also given the industry forecast based on
correlation of past drivers, challenges and opportunities for expansion. In this way, the report
presents a complete and coherent analysis of the Indian cement industry and will prove decisive
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for clients. For the purpose of report, only large plants have been considered in the total
production and installed capacity of the cement industry. The report also gives forecast
for various segments of the Indian cement industry based on feasible cement industry
environment
White Cement has registered growth in production and sale in India in the last few years. The
White Cement sector has been growing at the rate of 11% per year. This has given the Indian
cement industry a major boost.
The production of White Cement requires exact standards and so it is a product which is used
for specialized purposes. White Cement is produced at temperatures that hover around 1450-
1500 degrees Celsius. This temperature is more than what is required by the ordinary grey
cement. As more energy is required during the manufacture of White Cement, it goes to make
it more expensive than the ordinary grey cement. .
The various raw materials required for the production of White Cement are:
Limestone
Sand
Iron Ore
Nickel
Titanium
Chromium
Vanadium
The major companies producing White Cement in India are:
ACC
J K Cement
Gujarat Ambuja Cement Ltd.
India Cement Ltd.
Grasim Industries and Ultra Tech
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The major countries where White Cement is exported from India are:
UAE
Australia
South Africa
Sri Lanka
Doha- Qatar
Bangladesh
Nepal
CEMENT INDUSTRY INCEPTION & SCENRIO
INDUSTRY BACKGROUND
Pre Independence
The first endeavor to manufacture cement dates back to 1889 when a Calcutta based company
endeavored to manufacture cement from Argillaceous (kankar).
But the first endeavor to manufacture cement in an organized way commenced in Madras.
South India Industries Limited began manufacture of Portland cement in 1904.But the effort
did not succeed and the company had to halt production.
Finally it was in 1914 that the first licensed cement manufacturing unit was set up by India
Cement Company Ltd at Porbandar, Gujarat with an available capacity of 10,000 tons and
production of 1000 installed. The First World War gave the impetus to the cement industry
still in its initial stages. The following decade saw tremendous progress in terms of
manufacturing units, installed capacity and production. This phase is also referred to as the
Nascent Stage of Indian Cement Industry.
Post Independence
The growth rate of cement was slow around the period after independence due to various
factors like low prices, slow growth in additional capacity and rising cost. The government
intervened several times to boost the industry, by increasing prices and providing financial
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incentives. But it had little impact on the industry.
In 1956, the price and distribution control system was set up to ensure fair prices for both the
manufacturers and consumers across the country and to reduce regional imbalances and reach
self sufficiency.
CURRENT SCENARIO
The Indian cement industry is the second largest producer of quality cement. Indian Cement
Industry is engaged in the production of several varieties of cement such as Ordinary Portland
Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, Rapid Hardening Portland Cement, Sulphate Resisting Portland
Cement, White Cement, etc. They are produced strictly as per the Bureau of Indian Standards
(BIS) specifications and their quality is comparable with the best in the wor ld.
The Indian cement industry is the second largest in the world. It comprises of 140 large and
more than 365 mini cement plants. The industry's capacity at the beginning of the year 2009-
10 was 217.80 million tonnes. During 2008-09, total cement consumption in India stood at 178
million tonnes while exports of cement and clinker amounted to around 3 million tonnes. The
industry occupies an important place in the national economy because of its strong linkages to
other sectors such as construction, transportation, coal and power. The cement industry is also
one of the major contributors to the exchequer by way of indirect taxes.
Cement production during April to January 2009-10 was 130.67 million tonnes as compared to
115.52 million tonnes during the same period for the year 2008-09. Dispatches were estimated
at 129.97 million tonnes during April to January 2009 -10 whereas during the same period for
the year 2008-09, it stood at 115.07 million tonnes.
The major cost factor in the manufacture of white cement is power and fuel, which account for
approximately 70 per cent of the variable cost and this industry is one of the hardest hit
because of the rise in fuel prices which have sky-rocketed 115 per cent during the last two
years
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Growth in Cement Demand
Table No 1.a: Table showing growth in cement demand
YEAR TONNES GROWTH%
2006-07 122 6
2007-2008 134 6.5
2008-2009 164 12
2009-2010 176 12.5
Figures in Million Tonnes
* Source: Cement Manufacturers Association (CMA), ICRA Research
Key Drivers of Cement Industry
Buoyant real estate market
Increase in infrastructure spending
Various governmental programmes like National Rural Employment Guarantee
Low-cost housing in urban and rural areas under schemes like Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) and Indira Aawas Yojana
COMPANY PROFILE
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2.1 BACKGROUND AND INCEPTION OF THE COMPANY:
BIRLAWHITE is an small unit in Grasim Industries Limited .Grasim Industries Limited,
a flagship company of the Aditya Birla Group, ranks among India's largest private sector
companies, with consolidated net revenue of Rs.202 billion and a consolidated net profit of
Rs.27.6 billion (FY2010).
Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple
fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which
contribute to over 90 per cent of its revenues and operating profits.
The Aditya Birla Group is the world‘s largest producer of VSF, commanding a 24 per cent
global market share. Grasim, with an aggregate capacity of 333,975 Tonnes Per Annum(TPA)
has a global market share of 11 per cent. It is also the second largest producer of caustic soda
(which is used in the production of VSF) in India.
In cement, Grasim along with its subsidiary UltraTech Cement Ltd. has a capacity of 49 million
tpa and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and
management control in UltraTech Cement Limited. One of the largest of its kind in the cement
sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.
The cement business of the Group is being restructured in a phased manner. In the first phase,
Grasim's cement business is being demerged into Samruddhi Cement Limited, a subsidiary of
Grasim. In the second phase, Samruddhi Cement Limited will amalgamate with UltraTech. Upon
completion of restructuring, the cement business will be consolidated in UltraTech, a pure play
cement company. Grasim‘s cement operations today, together with that of UltraTech, span the
length and breadth of India, with 11 composite plants, 11 split grinding units, five bulk terminals
and 69 ready-mix concrete plants.
All the plants are located close to sizeable limestone mines and are fully automated to ensure
consistent quality. All units use state-of-the-art equipment and technology and are certified with
ISO 9001 for quality systems and ISO 14001 for environment management systems.
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Grasim is also the largest producer of white cement in India, with a capacity of 560,000 Tonnes
Per Annum (TPA) as on 30 June 2009. Branded as "BirlaWhite", the white cement division
manufactures world-class white cement in a variety of textures and finishes. It has applications in
floorings and exterior wall finishes, apart from other innovative uses. The division also
manufactures value added products like putty, GRC etc. which are used in wall finishing and
various architectural applications
Grasim was incorporated on 25 August 1947, just 10 days after India became independent,
manufacturing textiles made from imported raw materials. It is now a global leader in viscose
staple fibre (VSF), the country's largest merchant producer of sponge iron and the second-largest
caustic soda maker in India; and poised to be India's largest cement manufacturer.
.
2.2 NATURE OF THE BUSINESS CARRIED
Birla White is India's largest white cement producer with a production capacity of over 550
thousand tonnes annually. Established in 1988 with an initial production capacity of 80 thousand
tonnes, the company has indeed come a long way. Its manufacturing plant is today regarded as
one of the most technologically-advanced white cement plants in the world.
Driven by innovation and excellence, Birla White has consistently been improving its product
quality through technological advancements. Significant efforts have also been made to diversify
its product portfolio. Birla White today boasts of a product portfolio consisting of several surface
finishing options. The company has a strong global presence in the developed European and fast-
growing Asian markets.
2.3 VISION, MISSION AND QUALITY POLICY
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Our Vision
―To be a Globally Benchmarked Organization in White Cement, through our value-added
products with continued focus on Quality and Customer Delight, and to have revenue of
Rs.3000 crores by FY 2015‖
Our Mission
―To deliver superior value to our customers, shareholders, employees and society at large with
increased focus on living by our values.‖
Quality Policy (System)
Birla White understands the importance of setting a high benchmark in quality, and more so,
establishing systems to ensure adherence. Birla White is certified with ISO 9001 QMS system,
ISO 140001, OHSAS 180001 and SA 8000. Its CEM I and CII grade of white cement are CE
Certified confirming its suitability for export to European markets.
Technology
Birla White has always placed a strong emphasis on technological superiority to manufacturing
products of unsurpassed quality. To this end, it has acquired technologies from world leaders in
their domain. Like Vertical Roller Mills and Roller Presses, sourced from Pfeiffer and Koppern
respectively, are used for raw material and cement grinding. Its manufacturing process is entirely
automated and controlled by systems from ABB and Leeds & Northrup, USA. Distributed
Control Systems & Fuzzy Control System for process control and XRF controlled QC systems
are used to ensure superior quality. Birla White was the first to introduce sealed valve bags for
Wallcare Putty packaging, using Roto Seal Packer with Ultrasonic System to curb adulteration.
Eco Drive
Birla White is a conscientious corporate citizen of this country. This has seen the company
proactively adopt significant steps to protect and preserve the environment. It utilizes eco-
friendly technologies to manufacture products, which have a minimum impact on the
environment. Recognizing its green initiatives, Birla White has been awarded the prestigious
IERS Level-5 and ISO 14002 Certification from DNV, Netherlands for the highest levels of
environmental commitment.
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2.4 PRODUCTS /SERVICE PROFILE
1) LEVELPLAST:
Product Information
Give your walls the distinction of a smooth and glossy finish with Birla White Levelplast. This
water-resistant, white cement-based product is perfect for levelling concrete/mortar walls and
ceilings especially when there are major undulations. It fills up the fine pores of concrete/mortar
walls and ceilings to give a white, smooth and dry surface for painting. A superior substitute for
POP and Gypsum, it possesses more adhesive strength and durability, while increasing the life of
your paint. This ensures your walls look freshly painted, even after many years.
Benefits
Superior Bonding: Birla White Levelplast bonds well with the grey-cement plastered
surface, which makes sure the wall finish lasts as long as the grey cement plastered
surface is intact.
Durable: It provides breathability to walls by allowing the entrapped moisture to
evaporate and makes the wall finish highly durable.
User-friendly: Levelplast gives you the convenience of drilling/cutting on the surface
even after the application..
2) GRC (Glass Re-inforced Cement)
Product Information
Birla White GRC opens up a whole new world of possibilities for modern architecture. It's a
versatile and lightweight mouldable finishing material that's perfect for decorative elevations. It's
made from Birla White Cement, high-silica sand, alkali-resistant glass fibres and other mixtures.
Naturally occurring oxide pigments can be added to give it the desired shade of colour. It is one of
the most versatile building materials available to architects and engineers. This makes it the
preferred choice for a wide range of designer applications.
Benefits
Flexibility: Birla White GRC's superior strength gives you the freedom to have greater
length of elements, reduced number of supports and thin sections. It further helps you in
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achieving greater flexibility in design. It is primarily used for making non-structural,
aesthetic-cum-functional elements like columns, capitals, arches, domes, screens,
cornices, planters, acoustic barrier panels, statues, domes and façade e
Durability: Birla White GRC is reinforced with alkali-resistant glass fibres, which
minimizes shrinkage and cracking. It boasts of high density and low porosity, which
arrests leakages and seepages. It can even withstand harsh weather conditions, making it
highly durable.
Safety: Made with glass fibre, Birla White GRC has a tendency to bend but not crack,
which makes it an ideal building material in earthquake prone areas. Its light weight,
fire-resistant and non-combustible properties make sure every structure is a safe to
inhabit.
3) KOOL-N-SEAL
Product Information
Bring home one of the most advanced technologies in construction -
Birla White Kool-n-Seal. It is a revolutionary coating material, which outperforms
every other traditional option. When applied on the roof or exterior walls, its unique
formulation cools the building interiors, reducing the need for air conditioning and
cutting your electricity bills. In addition, Kool-n-Seal also seals minor cracks in the
surface and helps arrest seepage. Unlike other coating materials, it can be easily applied
in the form of slurry with a brush. That's why, it is ideal for roofs, terraces, water tanks,
cracks in parapet walls and water pipes.
Benefits
Protection from heat: Kool-n-Seal is a superior UV resistant coating, which when
applied on the flat-roof surface, reflects the heat and reduces the indoor temperature
by 4-5 centigrade. When applied on water tanks, it prevents excessive heating of
water during summers.
Protection from water-related damages: Kool-n-Seal reflects the heat incident on
the roof, thus preventing the occurrence of cracks due to expansion. This ensures
enhanced durability of the roof surface and RCC slab.
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Best value for your money: Kool-n-Seal brings you two strong benefits in a single
product and that too, at a reasonable price.
4) TEXTURA
Product Information
Birla White Textura, manufactured using state-of-the-art technology, offers a variety of
exquisite textures for your walls.Birla White Textura also offers protection for your walls
from weathering. It's more economical as compared to acrylic based finish, as there's no
need to apply primer. Birla White Textura is available in two varieties - Spray Roller
Finish (RF), which is ideal for interiors, and Trowel Finish (TF), which is best-suited for
external walls.
Benefits
Highly durable textured wall finish
Being white cement based, Birla White Textura is highly compatible with
plastered/concrete wall surfaces. After application, it becomes a part of the wall plaster,
and this strong bonding makes it all the more durable as compared to acrylic textures. It
is also highly UV resistant as compared to acrylic textures, which makes it resistant to
cracks and flaking.
Flexibility to use any paint on the texture
Without scrapping the textured coat, any kind of decorative wall paint can be applied
over it.
Provides the best value for money
Birla White Textura gives you a host of benefits at a very competitive price. When it
comes to decorative wall finishing, it offers you the best value for your money.
5) WALL-CARE PUTTY
Product Information
The elegant décor of your home can easily be marred by the eyesore of flaking, ruining even
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the expensive coat of paint on your walls. Birla White Wallcare Putty offers you total
protection against flaking. Its superior quality makes it the only putty in India to meet global
standards (HDB, Singapore). As a white cement-based putty, it binds strongly with the base
plaster, even if the surface is damp, and forms a protective base..
Benefits
Protection to Expensive Paints
Birla White Wallcare Putty becomes a part of the wall plaster when applied on the
wall. Its water-resistant property ensures that the paint doesn't flake off even if the
walls are damp, ensuring a long life for your expensive paints.
Getting a proper line and level surface
Birla White Wallcare Putty Coarse (Matt Finish - MF) fills up the minor
cracks/crevices in the plastered wall and provides an even leveled surface.
To make the surface absolutely smooth Finish - SF is recommended over the coarse
coat. When the paint is applied on such a leveled wall, the results are obviously
stunning. It also brings out the true tone/shade of the paint as it's made of white
cement.
Best value for money
Birla White Wallcare Putty doesn't need a paint primer for paint application, which
makes it highly economical as compared to conventional putty, POP and acrylic
putty. What's more, it reduces paint consumption by 25-30% being smooth, durable
and less absorbent as compared to conventional options.
WHITE CEMENT
Product Information
Birla White Cement takes artistic expression in architectural design to the next level. A
product of the most advanced technologies and manufacturing processes, it offers a pristine
white canvas for crafting architectural elegance. Its exceedingly high refractive index and
high opacity imparts brilliant lustre and a smooth finish to surfaces, even when blended with
pigments.
2.5 AREA OF OPERATION:
Birla-White is the premiere brand of Grasim industries which has its operations across the
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globe.
It manufactures its products in Rajastan.It has its marketing offices within the country(India)
in the following places:
Mumbai, Pune, Delhi, Nagpur, Ahmedabad, Gurgaon, Chandigarh, Bangalore, Chennai,
Hyderabad, Kolkata, Agra, Cochin, Jaipur, Jodhpur, Indore, Patna, Bhubaneswar etc
Birla white is also exports its products to many countries such as:
UAE, Bangladesh, Nepal, Srilanka, Spain, Australia, Mauritius, Philippines, Singapore,
Bahrain, Oman, Qatar, Kenya, Tanzania, Nigeria, South Africa, Ethiopia, Germany & USA
2.6 OWNERSHIP PATTERN :
Table 2.a: The Ownership Pattern of shares of the Company
*SOURCE: GRASIM INDUSTRIES FY WEB SOURCE
2.7 COMPETETORS INFORMATION
FOR WALL CARE PUTTY THE MAIN COMPETITORS ARE (BIRLA WALL CARE
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PUTTY has an market share of 40%.. (others 6%)
Table 2.b: Table showing information regarding the competitors
COMPETITORS % OF MARKET
SHARE
J.K WHITE 15%
UNBRANDED
PUTTY(CHALK/LIME
STONE)
25%
ASIANPAINTS 10%
BURGER PAINTS 4%
FOR BIRLA WHITE CEMENT(65% MARKET SHARE) there is only one main competitor
than is J.K WHITE(20% MARKET SHARE)
In total for all the brands in general the top 10 competitors present are
J.K WHITE
ASIAN PAINTS
BURGER PAINTS
WALL PLAST
NIPPON
BOSCO
FINE WALL
FINE COAT
ALTEK
SAINT-GLOBIN
2.8 INFRASTRUCTURE FACILITIES
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Birla White in its factory will provide following Infrastructure facilities.
They are:
Safety equipments for proper working
Dressing room
Cold water
Canteen
Medical benefits
2.9 ACHEIVEMENTS/MILESTONES
2009
:: Grasim hives off its sponge iron business by way of slump sale
:: Grasim commissions a green field cement plant at Kotputli (Rajasthan).
:: Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries'
"Social Awareness Award for the year 2008-09".
:: Grasim's plants Vikram Cement (Khor, Madhya Pradesh) and Aditya Cement (Sambhupura,
Rajasthan), have won the TERI (The Energy and Resources Institute) CSR Award for their
sterling work in 37 villages among 12,550 families in the area of healthcare.
2008
:: Grasim commissions brownfield expansion at Aditya Cement at Shambhupura (Rajasthan).
2007
:: Grasim divests Shree Digvijay Cement Company Limited.
:: Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited.
:: Eighteen ready-mix concrete plants commissioned.
Awards and Recognitions
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IMC-Ramakrishna Bajaj National Quality Award under the category of Outstanding
Achievements Trophy 2009 for Business
Golden Peacock Corporate Social Responsibility (CSR) Award 2009
National Energy Conservation Awards 2009 in the category of Certificate of Merit in the
Cement Sector
The Economic Times and Frost and Sullivan IMEA Platinum Award 2009 in Process
category
Brand Leadership Award, a symbol of Excellence and Brand Leadership
Best Employer Excellence Award from Employer Association of Rajasthan 2008
Conferred Consumer Super brand status by the Super brand Council of India
2.10 WORK FLOW MODEL
This chart shows the flow of work or different phrases through which the products
reaches the final consumer/user .
Fig.2.A. Work flow of the organization in an systematic manner
ANALYSIS OF THE COMPANY IN THE MCKINSEY’S 7S FRAME-WORK
Factory facility
x-depot
Stockist Industrial/Business user
Retailer/Dealer
Final user/Consumer
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MC Kinsey & company a leading International consultancy firm developed an approach towards,
the analysis of the company‘s performance. Model developed by McKinsey is called as the ‗7-S
model‘, which is directed towards finding out whether the company is directed by Value Bases
Management.
According to 7-S model of Mckinsey a proper Value Based Management is one where by
the company‘s overall aspirations analytical techniques & management process are aligned to
help the company maximize its value by focusing decision making on key drivers of value.
The values of the company may be:
a) Financial goals like profit maximization, or the shareholders wealth maximization. These
financial goals, generally guide the senior management of the company.
b) Non-financial goals like that of product innovation, customer satisfaction & quality
improvements are meant to motivate the entire organization.
The 7S model have classified with an diagram:-
Fig.3.1: McKinsey 7’S Framework Model
a) STRUCTURE: How people & tasks/work are organized. The way the organization‘s
units relate to each other centralized, ,functional divisions (top-down): decentralized
(the trend in larger organizations):matrix network holding etc
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ORGANISATIONAL STRUCTURE OF BIRLAWHITE
Fig.3.2: Organisational structure of the company
GROUP HEAD:
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The Group Head is the supreme decision maker of the Entire Unit. All the strategic
decisions would be passed only after his/her approval. There will be one Group head for
the entire organization (Grasim industries)
UNIT HEAD:
Unit Head is the supreme decision making authority of the entire unit. He will report to
the group head. There will be one Unit Head for every segment or unit.
CHIEF EXECUTIVE OFFICER:
The CEO is the Head of Operations for the entire Unit & will look out the operations &
reports to the unit head. There will one per unit
FUNCTIONAL HEAD:
The Functional Head is the in-charge of the entire function. There will be one functional
head per function (Marketing, Production, Human Resource and Production)
ZONE HEAD:
The Zone Head will be the head of operations of the entire zone. (South, East, West,
North) & will be reporting to the functional head (eg: Marketing)
VICE-PRESIDENT:
The Vice President makes the decisions after taking the approval from Zone Head & co-
ordinates the operations of the unit. He assigns tasks to officers as well as makes
operational decisions ( retail sales as well as projects) .
OFFICERS:
The officers carry out the operations assigned to them, meet market requirements &
analyze market conditions & assign sales territories & targets to Sales Representatives
There will be 8 officers (both projects/retail) who will operate as per the territories
assigned to them by the VP.
SALES REPRESENTATIVES (OFF-ROLL) :
They operate the functions as assigned to them by the officers. The visit retail stores & its
their responsibility to co-ordinate information of concern to officers of any problems or
requirement. Each sales representative would be assigned with territories to operate.
There are 8 Sales Representatives
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b) STRATEGY: A set of actions that you start with & must maintain. Plans for the
allocations of firm‘s scarce resources, over time, to reach identified goals towards the
Environment, competition, customers etc.
Future plans of Birla White towards the future as follows:
The Production & sales target is 1000MT for the FY 2010-11 which would
later would be for FY 2015 to 3000MT
To add new Value Added services such as to send all the stockists &
managers concerned to the area with simply way of SMS about the states of
sales in their territory
To increase the export from present 5% to 20%
Adding up an one more production unit in M.P which will start its operations
within FY 2014
c) SYSTEMS: It is the formal & the informal procedure that supports the stratergy &
the structure & to a greater extent governs the day-to-day working of the
organization.
The system could also be called the set of internal information system that enables
the smooth functioning of the system. The systems operate as the eyes & ears of the
organization & enable the organization to:
1) Take the decisions
2) Evaluate the performance of the Organization
3) Evaluate the internal working of the organization
4) It enables the organization to set right the deviations that occur in the working
of die organization.
Components of the system (existing in the Birla White):
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1) SPARSH: It is an web controlled system which provides an unique i.d & password
which helps any employee of the organization to track any information which
includes sales targets, retailer present schemes, stockiest schemes, non-trade
information in one site. This is a system which is used to communicate corporate
information‘s, decisions of the company etc
2) ACCUMEN: This is an website which provides or creates & motivates teamwork,
motivation, encouragement purely done to motivate or encourage employees
towards organizational-individual goals. This sends emails to the employees about
motivational stories about successful people & many other subjects thus to
encourage participation & learning.
3) SMS SYSTEM: This is an unique system which is yet to be fully introduced which
saves energy & time for the managers & officers. It provides weekly information‘s
about the sales carried out in their areas v/s their targets to achieve thus help them to
act & respond based on the information
4) STAFF: The Company‘s people resource how they are developed, trained &
motivated. The staff aspect of the 7s model mainly represents the people/human
resource management process used to develop the managers, socialization process
ways of shaping the basic values.
The staff aspect of the Birla White can be studied in the following respects:
1) The human resource in the organization
2) The performance appraisal
3) The training & development followed
1) THE HUMAN RESOURCE IN THE ORGANISTION
There are total of 24 employees working in the organization, they are
divided as:
CADRE POSTS
VICE-PRESIDENT 1
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DEPUTY SR.MANAGER(STATE) 1
SR.OFFICERS 4
OFFICERS 4+2(UP-COUNTRY)
ACCOUNTS 3
PROECTS IN-CHARGE 1
SALES REPRESENTATIVES(OFF
ROLL)
8+ 6(UP-COUNTRY
Table 3.a: Table representing number of employees in the
organization
2) THE PERFORMANCE APPRAISAL :
There is a system of regular appraisal in the company. For every six
months. There will be the performance appraisal in the company under
certain rating systems through which the ratings of the performance of the
employee by the Vice-President. According to these performance appraisal
reports are prepared by the branch & sent to the regd. Office on an half
yearly basis.
Contents of performance appraisal:
a) It contains the details with regards to the job related knowledge
b) The performance appraisal sheets are not only based on the departments
work, but are related to all the departments.
Uses of this Performance Appraisal:
a) It enables the company to decide weather the probation period for the
new employee has to be increased or not
b) It acts as the basis for taking the decisions with regards to the training &
other workshops to be conducted or not
c) It enables the company to take stock of their employee‘s capabilities &
which could influence in the promotions of the employees
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5) SHARED VALUES: Guiding concepts fundamental ideas around which a business
unit is built. These shared values are also called as super ordinate goals usually
stated at the abstract level have a greater meaning inside the organization even
though the outsiders may not see or understand them.
6) SKILL: Distinct Competencies what the company does best ways of expanding or
shifting competencies.
It has been the fore front of innovations , bringing in the new products &
bettering or upgrading the existing ones
The distinct competency is its product line which is novel, which is clearly
evident as they occupy leading position in the Cement Industry with over 45%
market share
The availability of well balanced networks across the country & globe which
helps in proper as well as efficient delivery of goods ―always on time‖
The standard of production & quality have got the company with ISO 9000-
2000 Company
It uses an fuzzy logic system & x-ray analyzer from FLS, Denmark which
ensures consistent quality
7) STYLE : The leadership approach of the company & the companies overall
operating approach of the company.
The leadership style in the company can be termed as participative leadership.
This leadership approach of the company can be understood in three levels:
A) Level one ---- The branch level
B) Level two---- The registered office & between the branch
C) Level three-- The registered office & the top manage
A) Level one ---- The branch level:
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In the branch level the following hierarchical arrangements are found:-
The senior Vice-President
The Sr. Officers
The Officers
The Sales Representatives
The secretarial assistant
The main decisions are taken up in the following format:
a) The senior Vice-President will take the opinions from the sr. officers as well
other officers
b) The officers at any point of time , can directly contact the sr. Vice-President &
could discuss with regards to any of the decisions to be taken up & could give
his opinion about it
c) The participation of the employees in the decision-making is to the maximum
B) Level two--- The registered office & between the branch :
To a greater extent the recommendations made by the branches are being adopted
while drafting the final sanctions.
C ) Level three--- The registered office & the top-management:
The regd. Office gives monthly feedback about the operations of the units & its
performances. Any suggestions for statistical decisions are also sent & only after their approval it
is been implemented.
Any decisions which requires immediate actions are also discussed with the top management &
appropriate measures are been taken
The operating approach of the company can be termed as the bottom up as well as
top down approach as the opinion of the employees are also taken into consideration, while
taking the decision by the top management & it is accepted & are implemented with no deviation
or any changes. The Top management decisions are given top most priority.
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SUSTANIBILITY
“As we grow so does our role
in shaping the world around us”.
Corporate sustainability stands for 'long-term viable business'. It is also conceptualised today as
simultaneous creation of economic, environmental and social value.
Social and environmental practices beyond compliance have been an integral part of Grasim's
philosophy since its inception. These investments were undertaken with an innate sense of
responsibility towards the well-being of society and environment. In recent years, with a view to
cement these relationships, the initiatives have become more structured and have been
seamlessly integrated in our business process.
.
SWOT ANALYSIS OF BIRLA-WHITE
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STRENGTH’S:
1.Goodwill of the brand(Birla)
2.Effective product mix(white cement, wall care putty, textura etc)
3.Early-entry advantage compared to other competitors‘
4.Well experienced & qualified work force or Human resource
5.Effective channels of distribution & network coverage
6.Higher market share
7.Increasing demand for branded products
WEAKNESS:
1.Changing negative image on the minds of the retailers of the company
2.Inability to control some of the Stockist‘s (Distributors) activities
3Exiting of experienced employees from the company
4.Lower returns to the retailers thus reduced interest from the retailers
5.Increasing number of competitors in the market
OPPORTUNITIES:
1. Increase in living standards of the people has created the demand for the products
2. Wide area available to cover up
3. Opportunities available in many other sectors prospecting to growth
4. Large-scale investments in Infrastructure & projects by both private & public sectors
5. Economic prosperity & economic development of the country
6. Availability of effective manpower to face the competitions
7. Branded consumption of the products are just 50%, thus giving road for ample
opportunities for growth.
THREATS:
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1.Economic Risk: Due to opening of World trade markets & diminishing tariff‘s
2.Competitors Risk: Increasing number of competitors entering the markets(J.K cement,
Asian paints) because of elimination of trade barriers & large corporate entering with
inorganic growth strategies‘
Project Execution Risk: It is dependent upon land purchase, project management skills,
timely delivery by the equipment suppliers & adherence to schedule by civic
contractors—any delay will impact revenues & profits.
3.Human Resource risk: Exit of skilled & experienced employees to the competitors
company‘s
4.Foreign exchange Risk: Fluctuating rates in foreign exchange makes the company
versatile in making profits or incurring losses
5.Commodity price Risk: It is the biggest threat of all, the increase in prices of raw
material‘s makes the production cost increase effects : competency, market share as well
as profitability .
ANALYSIS OF FINANCIAL STATEMENTS
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Table No 5.1: Table representing Financial Statements
31-Mar-
10
%BT
31-Mar-
09
%BT
31-Mar-
08
%BT
Equity Capital 916.80 0.98 916.70 0.57 916.70 0.65
Preference Capital 0.00 0.00 0.00 0.00 0.00 0.00
Share Capital 916.80 0.98 916.70 0.57 916.70 0.65
Reserves and Surplus 70441.60 75.60 93754.40 58.54 80441.20 56.97
Loan Funds 10376.20 11.14 33949.50 21.20 32018.70 22.68
Current Liabilities 3023.70 3.24 16869.30 10.53 16039.10 11.36
Provisions 5805.50 6.23 5908.80 3.69 5669.90 4.02
Current Liabilities and Provisions 8829.20 9.48 22778.10 14.22 21709.00 15.37
Total Liabilities and Stockholders
Equity (BT)
93180.70 100.00 160147.10 100.00 141203.50 100.00
Tangible Assets Net 17842.20 19.15 70739.00 44.17 40084.00 28.39
Intangible Assets Net 18.40 0.02 143.80 0.09 151.10 0.11
Net Block 17860.60 19.17 70882.80 44.26 40235.10 28.49
Capital Work In Progress Net 429.80 0.46 12186.40 7.61 30263.10 21.43
Fixed Assets 18290.40 19.63 83077.70 51.88 70539.60 49.96
Investments 63247.90 67.88 46091.00 28.78 40807.90 28.90
Inventories 4172.40 4.48 13782.40 8.61 9784.40 6.93
Accounts Receivable 3450.10 3.70 5599.30 3.50 7119.80 5.04
Cash and Cash Equivalents 159.20 0.17 1133.80 0.71 1274.70 0.90
Other Current Assets 9.50 0.01 4.80 0.00 7.00 0.00
Current Assets 7791.20 8.36 20520.30 12.81 18185.90 12.88
Loans & Advances 3851.20 4.13 10458.10 6.53 11670.10 8.26
Miscellaneous Expenditure Other
Assets
0.00 0.00 0.00 0.00 0.00 0.00
Total Assets (BT) 93180.70 100.00 160147.10 100.00 141203.50 100.00
RATIO ANALYSIS
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Table No 5.2: Table showing Ratio Analysis
As on 31-Mar-10 31-Mar-09 31-Mar-08
Return Related
Return on Total Assets (%) 26.90 15.10 22.80
Return on Networth (%) 24.60 17.40 25.20
Return on Capital Employed (%) 30.70 19.40 36.00
Profitability
Gross Margin (%) 46.50 40.90 46.20
Operating Margin (%) 27.70 19.00 26.40
Net Profit Margin (%) 25.60 15.10 21.60
Adjusted Net Profit Margin (%) 21.50 15.10 19.80
Asset Turnover(x) 0.70 0.80 1.00
Leverage
Debt/Equity ratio (x) 0.10 0.40 0.40
Total Debt/Total Assets (x) 0.10 0.20 0.30
Long term Debt/Networth (x) 0.10 0.30 0.30
Interest Coverage (x) 21.70 17.80 28.70
Liquidity
Current Ratio (x) 0.90 0.90 0.80
Quick Ratio (x) 1.20 0.40 0.50
Cash Ratio (x) 0.10 0.10 0.10
Working Capital
Working Capital to Sales (x) 0.10 -- --
Working Capital Days (days gross sales) 19.60 11.00 6.70
Receivables (days gross sales) 14.20 16.80 22.30
Creditors (days cost of sales) 16.80 70.90 78.10
FG Inventory (days cost of sales) 2.40 8.70 14.20
RM Inventory (days consumption) 49.60 73.60 39.80
Cash Flow Indicator
Operating Cash Flow/Sales (%) 24.70 18.00 20.30
Per Share
Book Value Per Share (Rs) 778.10 1030.90 885.70
Earnings Per Share (Rs) 228.20 179.70 243.50
Dividend Per Share (Rs) 30.00 30.00 30.00
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Growth(%)
Total Operating Income -- 5.41 20.07
EBITDA -- -17.82 30.10
EBIT -- -23.94 33.04
Net Profit -- -26.19 45.37
Total Assets -- 14.96 22.38
Ratio analysis widely used tool of a financial analysis. It can be used to compare risk and the
return relationship of firm of different sizes. It is a systematic use of ratio to interpret the
financial statement so that the strength and weakness of a firm as well as its historical
performance and current condition can be determined.
Liquidity ratio:
Current ratio: Current ratio measures the ability of the firm to meet its current obligation the
ideal current ratio is 2:1. It indicates the liquidity position of the company. The company‘s
current ratio is constant at 0.90 in current year to the previous year and increased from 0.80 from
2008.
Quick ratio: Quick ratio expresses the relationship between quick assets and current liabilities the
ideal quick ratio is 1:1. Company‘s quick ratio or acid ratio increased from 0.40 during the
previous year to 1.20 in the current year.
Cash ratio: This is constant from past three years at 0.10
Turnover ratio:
Asset turnover ratio (total income/total Assets): Company asset turnover ratio has been decreased
from 0.80 during the previous year to 0.70 in the current year.
Sales turnover ratio: company‘s sales turnover ratio for the year 2009 was 18% and in 2010 is
24.70%. it has increased by 6.70 points.
Profitability ratio:
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Gross profit ratio (PBDIT/Total income): This ratio explains the relationship between the gross
profit and net sales the gross profit in 2009 was 40.90% and in 2010 is 46.50% this shows that
gross profit is increasing
Net profit ratio( Net profit / total Income): This ratio explains the relationship between net profit
and sales the net profit and sales the net profit ratio in 2009 was 15.10% and in 2010 is 25.60%
this shows that the net profit is increasing.
Earnings Per Share (EPS): The company‘s basic EPS has increased from 179.70 in 2009 to
228.20 in 2010.
Dividend: The company has proposed a dividend of Rs 30.00 per equity share (constant from last
three years 2010, 2009, 2008)
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LEARNING EXPERIENCE IN BIRLA-WHITE
The learning experience in Birla-White was an enduring, knowledgeful which helped me
analyise the market, study the market & know the actual working in the organization
Some of the factors of the experience are:
Helped me to understand the market from the marketers point of view
Interacted with retailers along with my external guide(Mr.mitchell) to know how the
market is operating, how the sales carried out, problems arising in the market, entry of
new competitors.
Gave me the exposure to analyze & to develop strategies to overcome the problems
Studied the importance of educating the retailers about the products to the retailers about
the benefits they provide compared to that of the competitors as they are the one who
interact with the final customers/consumers
Understood myself about the benefits or advantage of the different products from the
customer point of view & its application Communicated with the stockist‘s deligated by
the company who distribute the products to the retailers & there are 12 stockist‘s in the
entire Bangalore(city& rural)
Stockist‘s are been provided the products at pre-decided price which includes their
margin. Stockist‘s purchase the products by making cash payment immediately & they
use their vehicles & labour(employees) to distribute the products to the retailers &
provide credit facility at their own risk
In-depth study helped me understand that though company suggest an price which the
stockiest should provide to all the retailers equally, but the stockiest provides the product
based on the quantity purchased, mode of payment, place of the retailer(near/far) & than
decides the prices thus there is dis-satisfaction of those retailers who pay more than their
neighbor, thus helped me identify the problem
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The products is also distributed to the projects directly when they make orders of large
quantity & fulfillment of certain conditions:
They should make orders for large quantities
The Officer(for projects) of the company visits the place of project execution &
verifies
The buyer must provide his PAN no, Tax invoice & also should make the
payment in advance
He would be provided with the required on different packing system designed
which would be printed (NOT FOR RE-SALE)
He should compel with the company rules & should not attempt to re-sell, re-
package or use it in other manner other than company specified ways
The products will be brought to the go-down ,from where the buyer must make
arrangements for transport to the project place
Received an opportunity to be an part to develop an marketing strategy ‗PINCODE
ANALYSIS’ which helps the company in many ways:
It helps the company to locate the retailer & the quantities purchased
It helps the management to know how many retailers are been visited regularly
It helps to maintain regular relationship with the retailers thus helps to improve,
maintain as well as increase the market share & profitability
The retailers are been divided into many categories(A+,A,B,C) based on the
quantity purchased thus helps the company to know the capacity as well as
strength of the retailers & also to know which retailers most important to the
company
As it is used based on the quantity purchased it helps management to analyze the
reasons for under-performing of the other retailers & help the retailers to
overcome the problems
It mainly helps to continuous working of the organization & any
employee/officer leaving the organization would not affect much to the company
As the retailers are been categorized, helps the company to further design it into
different sectors/territories & design different strategies to different sectors
It also helps to analyze the competitors movement
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Visited different projects with the Sales Representatives & officers of the company to
know how the non-trade works
Smaller projects are been visited than an sample is provided about the product to the
customers & shown practically the advantages of the product compared to the
competitors products
As sample is provided about the products helps not only to increase sales but also
increase goodwill & also possible Positive Word-of-mouth about the products
Make counter meet or set up counters in different places by the SR‘s (sales rep‘s) to
make the customers know about the product, product information, benefits, application
etc
Constantly conduct painters meet to educate. motivate the painters about the product as
they play an important role who influences the final customer of what to be purchased
Constantly conducts retailers/dealers meet to educate them, provide them information &
the benefits to the customers as well as benefits to the dealers in form of
incentives/commission tradeoff‘s etc
As many builders/contractors are been traditionally using limestone/chalk powder after
plastering, thus helped me make them understand practically the demerits of using the
chalk powder & benefits of using white cement or wall care putty etc
Making the builders or the retailers understand though limestone/chalk powder is cheaper
compared to birla products, but in the longer run the problem faced such as dampness,
water leakages, ugly structures would be avoided & making them understand the
importance of it
Made me aware of how to officially approach, how to communicate to different people
differently, patience, importance of relationship building etc
To consistently develop different schemes to the retailers in order to maintain their
interest & also make more sales (eg: one of the schemes is to sell minimum sell 300bags
of wall-care putty or textura or above & get in addition other benefits 10rs/bag credited
directly to the retailers account)
To not only understand constantly the performance of the company but also to know
competitors information/moves/strategies/market share etc
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Got the opportunity to participate in the Trade Exhibition conducted for 3days by the
company thus gave me immense exposure to different
customers(architects/builders/contractors),other related company‘s & their products
Thus learning in the company made me aware of the practical implication which is been
studied theoretically thus gave me immense knowledge, experience the actual working of
the market.
It helped me to relate my learning‘s to its practical applications.
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GENERAL INTRODUCTION
STATEMENT OF THE PROBLEM:
In India, still major percentage of people who build or renovate their houses, offices or even
commercial flats, residence apartments etc still use traditional methods of building it. During
construction after the plaster is done, traditionally they apply chalk powder or lime wash & apply
primer above which the paints are applied.
Other problems are availability of cheap quality putty which provides low quality finish, as
significant number of builders or customers are not aware about the technical information‘s and
elements which benefits them. These cheaper( quality putty also known as conventional putty
provides higher margins to retailers as well as provide attractive schemes to painters compared to
branded products thus these try to move these products as much as possible to earn higher
commission or profits.
OBJECTIVES OF THE STUDY
The present study is aimed at analyzing acceptance of Birla wall-care Putty in retail segment
The specific objective of the study is the following:
To study the acceptance of Birla wall-care Putty in retail segment:
To study the awareness about the product among the retailers of the area of study
To know if the retailers know the availability of stockist‘s in their area where they can
purchase the product
To study the problems in market causing non-acceptance if any
To know if existing retailers have any concerns towards the quality, quantity, prices,
packaging etc
To know the product knowledge of the retailers
To analyze the competitors‘ presence in the market and their market share
To study about the competitive differences about the competitors‘ compared to the
company products
To study about the quantum of the company products movement in the market and places
of improvement to increase the sales of our products
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To study the area wherein the company has lesser competitive strength and to improve
those areas to gain higher market share.
RESEARCH DESIGN
Research design is a framework or blueprint for conducting the research. It details the
procedures necessary for obtaining the information needed to structure or in analyzing the data.
A research design lays the foundation for conducting the project.
METHODOLOGY OF STUDY
The information‘s or data‘s collected in the study is from the source of primary data.
Primary data: Primary data are the first hand source collected through conducting an sample
survey using an questionnaire and interviewing the retailers in the retail market segment .
The survey is conducted taking an sample of the entire area(Bangalore) of 225 retailers so as to
attain maximum and accurate information as possible. All the questions were related to the Title
of study and meeting the requirements of the objectives of the study
Secondary Data: It was gathered with the help of published sources like Annual reports,
Magazines, Journals, Books, Articles and Literature and websites
LIMITATIONS OF THE STUDY:
The study is been carried out with an sample size of 225 retailers thus information‘s
collected cannot be fully accurate
Response of the retailer may or may not be accurate as some information‘s were based on
assumptions
Study was limited to areas in Bangalore thus the interpretations would not be applicable
on all the places
As questions included certain financial or total sale information‘s as there would be bias
cannot be known
As the area of study is vast not all information‘s would be possible to collect thus there
would be considerable amount of difference for final result.
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SCOPE OF THE STUDY
This project is an attempt to study the Acceptance of Birla wall-care putty in retail segment.
As these are the quality substitutes for traditionally used lime-wash or chalk powder. This study
mainly focuses to know the level of acceptance of the product, reasons for non-acceptance,
competitor‘s market acceptance and their market share. The study is been carried out extensively
in the Bangalore division (Rural &urban) by taking an sample of the entire area and sample is
been chosen from all the parts to get most accurate information‘s. The study consists of the
sample size of 225 retailers which includes those who consistently use the products, those who
used to use but don‘t use now due to many reasons, those who never used as well as those where
the company either was not able to reach them or there was not enough penetration. In the
market by the company.
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ANALYSIS & INTERPRTATION
Analysis and interpretation of data
Table No 2.1: Classification based on total consumption of putty
Classification on the basis of total consumption of Acrylic based putty
(Asian,Burger,Nerolac),cement based putty(JK.cement, Birla white),conventional based
putty(Analyising total market size)
CATEGORY NO. OF RETAILERS
Below 3m tone 4-6m tone 7-10m tone Above 10m
Acrylic based 28 62 61 74
Cement based 70 72 48 35
Conventional based 47 64 71 43
This clearly shows that though cement based putty is having higher strength and more
benefits the Acrylic based putty is most demanded from the consumers or the retailers as acrylic
based putty as those retailers who purchase more than 10m tone annum 32% of the purchases is
acrylic based putty and second highest is conventional based putty which is 20% .Thus Birla
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putty is dominant in cement based putty in overall its acrylic based putty manufacturers mainly
Asian Paints and Berger playing the major role.
Chart No 2.1: Classification based on total consumption of putty
This is the comparison to show total putty market of the entire segment. Though in the cement
based putty Birla is an no.1 brand in the acrylic based putty Asian Paints is the leading
manufacturer. Apart from that the company also faces stiff competition from the local or
conventional manufacturers as their materials are very low-priced and thus many who don‘t
either differentiate the quality or bothered only about prices go for it. And these conventional
putty manufacturers also provide higher commission to the retailers and painters these exploit the
unaware customers and try to push these products as much as possible to earn higher
commission.
0
10
20
30
40
50
60
70
80
NO. OF RETAILERS Below 3m tone
NO. OF RETAILERS 4-6m tone
NO. OF RETAILERS 7-10m tone
NO. OF RETAILERS Above 10m
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Table No 2.2: Comparison between Jk. cement v/s Birla White (cement based putty)
BRAND/COMPANY NO OF RETAILERS PERCENTAGE
J.K.CEMENT PUTTY 53 23.56
BIRLA WALL-CARE PUTTY 172 76.44
TOTAL 225 100
Chart No 2.2: Comparison between Jk. cement v/s Birla White(cement based putty)
In the cement based putty division the company‘s major competitor is J.K cement. Presently
though J.K cement has very little presence of about 23.5% of market share compared to birla
white which has over 75% market share the company considers it would be an potential
competitor and has taken adequate steps to face the competition effectively.
24%
76%
No of Retailers
J.K.CEMENT PUTTY BIRLA WALL-CARE PUTTY
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Table No 2.3: Comparison based on customers/consumers demand for the Brand
Do customers ask for Birla white wall care putty?
YES NO
NO.OF RETAILIERS 90 135
Chart No 2.3: Comparison based on customers/consumers demand for the Brand
As the chart clearly mentions majority of the consumers who come to purchase the putty either
don‘t ask for the Brand, or they ask the competitor‘s brand or are not aware about the product
itself. Though Birla as an whole may have an very good image in the minds of the most of the
people but chances are that consumers are not aware about the existence of the product, or are
not knowing about the products attributes about the product or have an belief that its an
expensive product. This images or knowledge is been well used by the retailers or the painters to
move in those products which gives them higher margins.
0
20
40
60
80
100
120
140
YES NO
Do customers ask for Birla white wall care
putty?
No. of Retailers
NO.OF RETAILIERS
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Table No 2.4: Comparison of major problems faced by retailers who uses Birla wall-care
Putty
COMMON PROBLEMS NO. OF RETAILERS
Packaging 175
Timely Service 100
Gifts 122
Chart No 2.4: Comparison of major problems faced by retailers who uses Birla wall-care
Putty
NO. of Retailers
Packaging
Timely Service
Gifts
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The major problems faced by retailers are:-
Packaging
Timely service(Delivery of products)
Gifts
These problems are either jointly or any one problems faced by the retailers which is spreading
negativity of not only the products but also about the company. As all the problems faced by the
retailers are important but majority of the retailers face problems in packaging which the
company has to look forward as these are elements which makes or breaks the intrests of the
retailers.
Apart from packaging timely delievery of the products is the 2nd
most com-plained off.As these
retailers sometimes loose major contracts when the delievry is been delayed. As the company
doesn‘t sell the products directly and as it moves through the stockiest‘s controlling the
distribution channels is difficult part faced by the company
Gifts though sounds small it also plays an important role, as many retailers do complaint about
gifts never given or hardly given. As cometitor‘s give consistantly and the company donot than
there are room created towards cometitors products to the retailers.
45. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 45
Table No 2.5: Comparison of services of different Stockist’s
Comparison of services of different stockist‘s appointed by the company to cater retail segment
Stockist/service V.poor Poor Average Good V.good
SHILPI SALES 04 07 15 33 30
BHIMA STEELS 02 03 10 27 46
C.R. TRADING 02 16 32 11 12
SURAJ ENTERPRISES 03 01 07 07 03
KARNATAKA CEMENT UDYOG 07 12 23 08 06
GUDUMARANHALLI TRADING CO. 05 03 11 04 10
Chart No 2.5: Comparison of services of different Stockist’s
0
5
10
15
20
25
30
35
40
45
50
Stockist Service
V.poor
Poor
Average
Good
V.good
46. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 46
(NOTE: These are based on sample survey and each retailer on many occasions gets services of
more than one stockiest, these are the views of the retailer point of view thus chances of biases
are there)
There are over 12 stockiests catering to entire Bangalore District (Rural as well as urban).
Thus some of the services of the stockiest are good to those who provide ill services. Services
include not only mere distribution of products, but also other factors such as: Timely delivery,
frequent visits to the retails, Product related information‘s provided, Offering of correct prices to
retailers, hearing to the problems related to packaging or other products related queries.
Out of 12 stockiests the sample included 6 main stockiests market. Some stockiest‘s such as C.R.
Trading Co or Bhima steel are well known for their quality of service. Though company gives
suggested prices to be delivered because of competitions‘ in the market usually all stockiests
under-cutting the prices thus there is less control on prices as this is the one of the main reason
on the basis of retailers as many get at much discounted prices compared to others who get at
high prices.
Table No 2.6: Comparison of types of customers who buys from the Retail counter
TYPE OF CONSUMERS NO. OF CONSUMER VISITS TO RETAIL
Painting contractors 200
IHB 120
Civil engineers 125
Builders 70
(NOTE: As these are or could be individually or in any one or two combinations coming
together, when those retailers suggested all than , all the categories are taken as 1 separately to
each category )
47. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 47
Chart No 2.6: Comparison of types of customers who buys from the Retail counter
As on the basis of comparision it is clear that at most times painting contractors play an keen role
in making the purchases to the customers. Even when IHB (Individual Household ) customer
goes for purchases than he takes along the painters or painting contractors for suggesstions while
deciding upon any product.
Thus the role of Painting contractors are significant as they assist directly or in-directly to
over 90% of all the purchases or carry out the purchases directly. Even while engineers or
builders on most occassions assign the purchasing of products to these painting contractors
expect for those such as architects,engineers who know about the products, different types of
products available etc or large builders.
Builders constitute to roughly 25% who themselves or with painting contractors visit the retail
outlet and many a times they would not be aware about the technical functions and will be
mainly concerned with prices( small and medium scale builders).
0
50
100
150
200
250
Painting
contractors
IHB Civil engineers Builders
No. Of Consumers Visits to Retail
NO. OF CONSUMER VISITS TO
RETAIL
48. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 48
These interpretations are very necessary to understand the purchasing patterns and to study the
influencers to these purchases. This is an situation where retailers try to move conventional putty
or other brands which gives higher commission to retailers and also higher commission or gifts
to painters
Table No 2.7: Comparision of effective methods of quality packing
Comparision on the retailer point of view the most effective method of increasing quality of
packing & Making it more convenient
Weights/
methods
1kgbags 5kg bags 20kg bags 40kg bags
Carry bag type of
packing
200 200 75 00
Double coat
packing
35 120 210 225
Improved quality
of bag
00 00 220 210
49. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 49
Chart No 2.7: Comparision of effective methods of quality packing
Study showed areas where the company has to improve:-
1Kg bags: Over 85% retailers suggested that the carry bags or carry handles to the bags should
be provided. As nor it involves extra cost to the retailer, taking the reason that in 1kg bag the
retailer just gets 2-3rs per bag and the other reasons are that it makes very dusty to carry to the
customers. 15% of these retailers also suggested to have an double-coat packing as to ensure
quality.
5Kg bags: Over 85% retailers suggested to have carry bags in these packaging also as there is
consistent requirement for the same. 60% retailers also suggested that there must be double-coat
packing as many times because of carrying it gets small cuts thus starts to leak out, thus many
customers to purchase the same. It also ensures quality as double coat withstands smaller cuts or
torns
1kgbags 5kg bags 20kg bags 40kg bags
200 200
75
0
35
120
210
225
0 0
220
210
Increasing the quality/making more convenient
methods Carry bag type of packing Double coat packing Improved quality of bag
50. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 50
20Kg bags: Almost all the retailers over 95% ask for double coat packaging as many times it
comes torn to the retailer or it creates dusty, thus doubts the customers to weight loss and asks
for discounts for the same. These problems are on consistent basics. As IHB‘s also carry 20kg
bags about 34% retailers ask for thinner cover outside the packaging for easy carrying of the
bags. Over 97% retailers also complaint that the quality or type of packaging done is also very
low quality and expects the company to make adequate changes as these will directly affect the
image of the company and its brand value as competitors packaging are far better than
ours(Birla).
40kg bags: All the 100% retailers have suggested for double coat packaging and over 95%
retailers also feel that the packaging quality is very inferior which causes lots of losses to the
company.
Table No 2.8: Table showing awareness of retailers of tokens
Comparison based on the awareness of retailers on availability of the token for painter‘s in Birla
wall care Putty bags
Availability in bags Yes No Don‘t know
1kg bags 27 178 20
5kg bags 182 40 03
20kg bags 146 75 04
40kg bags 36 156 33
Chart No 2.8: Chart showing awareness of retailers of tokens
51. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 51
In reality Painters tokens are available in two packings, they are:-
1) In 5kg bags there is an token of 10rs
2) In 20kg bags there is an token of 45rs
How does an painter token look like?
It is an picture taken in an retail shop of how the painters token
looks like. It is one which is received in 20kg packing which
has an face value of Rs. 45, 5kg tokens are available in similar
shape but of yellow colour which bears the face value of Rs. 10
In 5kg packing about 80.8% of the retailers have said that they know that tokens are
available where as 17.77% retailers say that they either have never seen tokens or nor any
painters have given for redemption.
Where as in 20kg packaging about 64% retailers have said they have seen tokens where as
33.33% retailers say that they have never come across tokens available. Chances are they
27
182
146
36
178
40
75
156
20
3 4
33
1kg bags 5kg bags 20kg bags 40kg bags
Availibility of Painter Tokens In putty Bags
Yes No Don’t know
52. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 52
get confused with either it is 20kg packs or 40 kg packing‘s or they don‘t use or sell those
packing‘s.
Overall majority of the retailers are aware about the availability of tokens in Putty bags.
Table No 2.9: Table showing different effective promotion activities
Comparisons based on different effective promotion activities that could be carried to increase
the market share and to recognized or attracted towards the brand from the point of view of the
retailers
DIFFERENT PROMOTIONS NO. OF RETAILERS
Painter training 170
Retailers scheme. 225
Retailers/Dealers meeting. 165
Advertisement. 122
Display contest 74
(NOTE: Retailers have given multiply choices as it was not on the basis of best out of it but on
the point of view of them which all would be more effective ways of promotions which could be
either any one of them or all of them or some of them left to the retailers to decide)
Chart No 2.9: Table showing different effective promotion activities
53. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 53
Promotions act as an very important criteria for making the products mor vulnarable. It if
properly promoted gives good returns to the company. As the company can use these
promotions to attract the customers towards the product, create effective awareness, educate the
potential customers or the retailers about the product, create an goodwill in the market etc.
Over 77% of the retailers have suggested ‗Painters meet‘ as an important tool for promotions.
As most of the purchases are directly or indirectly purchased by these painters, conducting an
painters meet encouarages the painters and as many painters also are un-educated thus they do
not understand the technical informations about the products. These painters meet gives an
platform for the company to make the panters aware about the product, its features, methods of
application etc Here in order to woe the painters the company also arranges lunch/dinner or
entertainment and to attract informations such as painter‘s tokens informations, gifts to painters
etc could be given.
The Retailer Schemes are an effective means of increasing sales, all 100% retailers have shown it
as an effective medium. As all retailers carry out retailing business for profits or returns this
could encourage to make more sales to earn higher returns. Presently, the company has certain
slabs ( Target sales) if the retailer reaches these slabs than the company apart from margins pays
extra commission which varies from 8-10 rs per bag.
Over 73% retailers agreed that when company orgainises dealers meet/Retailers meet they feel sa
170
225
165
122
74
Different Promotions
NO. OF RETAILERS
54. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 54
satisfied and encourages them to make more sales. Dealers meet can be an effective tool of
promotions as dealers can be shown product information‘s, retailers scheme etc and thus the
goodwill of the company can be increased.
Over 55% retailers felt that the company should carry out advertisements in either t.v channels,
newspapers, Using of hoardings etc thus giving information‘s to final retailers about the product.
As there is wide goodwill to the brand ‗Birla‘ thus this would create mass awareness as
customers would prefer this products as they would trust the brand. This will indirectly helps to
increase the sales , thus will create ‗Customer push‘ for the product, hence instead of just asking
for putty they would probably ask specifically ‗Birla wall-care Putty‘.
Over 33% rated Display contest would also be an effective promotional strategy. As customers
when visits retail outlets and when they see the products it would encourage them to enquire
about the products or even make purchase decisions.
Table No 2.10: Comparisons based on product knowledge of the retailers
ATTRIBUTES No. of Retailers
It is water resistant 175
It is anti-fungus 100
It requires 7days of curing 54
It increases paint consumption 70
It reduces dampness 143
It is eco-friendly 200
Chart No 2.10: Comparisons based on product knowledge of the retailers
55. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 55
(NOTE: In the above not all are the attributes of the product some information‘s are been
changed to check how the retailers respond to and what or how much of product information‘s
they know)
The attributes of the Birla putty which distinguishes from other putty are its unique attributes:-
It is water Resistant
It is anti-fungus
It can be applied immediately after plastering
It doesn‘t require curing
It reduces paint consumption
It reduces dampness
It is eco-friendly
It is water resistant
It is anti-fungus
It requires 7days of curing
It increases paint consumption
It reduces dampness
It is eco-friendly
175
100
54
70
143
200
Attributes of Birla wallcare Putty
No. of Retailers
56. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 56
Table No 2.11: Table showing acceptance of Birla wallcare Putty
Comparison based on acceptance of Birla wall-care putty in rural markets (Both cement based as
well as acrylic based putty)
VARIOUS BRANDS AVAILABLE NO OF RETAILERS(out of 20retailers)
Birla wall-care putty 03
J.K putty 01
Asian acrylic putty 10
Rado putty 17
Lenova putty 18
( NOTE : This is been carried out based on observations and retailers had the choice of choosing
all or any of them or some of them)
Chart No 2.11: Table showing acceptance of Birla wallcare Putty
Birla wall-care putty
6%
J.K putty
2%
Asian acrylic putty
20%
Rado putty
35%
Lenova putty
37%
NO OF RETAILERS(out of 20retailers)
57. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 57
Table No 2.12: Comparision done to know the brand demand in rural market
Do customers ask ‗Birla wall-care putty‘
(based on 20retailers)
YES nO
NO OF RETAILERS 02 18
Chart No 2.12: Comparision done to know the brand demand in rural market
It can made out that the market demand of rural market completely varies from that of the
urban. Where in urban ‗Birla has over 70% market share‘ the accptance of the products is bare
minimum of about 6%.
Both Rado putty(35% market share) and Lenova putty(37% market share ) are conventional
putty and are higher performer because of its low prices, higher margins to retailers and higher
commission to painters as well because of the lack of awareness regarding products, its
informations, attributes, differences etc.
Though the market is price elastic the survey also has highlighted that many customers are also
either brand loyals or brand push is high. Asian acrylic putty which is expensive even from Birla
wall-care putty has over 20% market share, thus gives an picture if this market if properly
exploited would be an bigger market for the branded products.
NO OF RETAILERS
2
18
Demand in Rural Areas
Do customers ask ‘Birla wall-care putty’ (based on 20retailers) YES
Do customers ask ‘Birla wall-care putty’ (based on 20retailers) nO
58. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 58
FINDINGS, SUGGESTIONS AND CONCLUSIONS
FINDINGS
Those, majority in the retailers are aware about the Birla products and are either the user
or have used the products.
Though there are some competitor‘s for the product (putty), over 77% of the market share
in the cement based putty is been held by Birla.
It is not highly competitive markets as there is lesser players in the market
Though according to company which claims J.K Cement to be an major competitor when
compared to overall putty market Asian acrylic putty is an major competitor as the total
consumption of this is higher in the market and have recently launched Cement based
putty
Local putty or conventional putty because of cheap availability also has considerable
amount of market share, though these products are very low in quality consumers
purchase because of lack of understanding for using branded products and affordability
The brand ‗Birla‘ as an whole has good acceptance in the market but still much
percentage of market are not aware about ‗Birla wall-care putty‘ and they either ask the
competitor putty or just putty. The consumers who ask for the product is just 36%.
Though there are many problems faced by retailers the major problems usually faced to
use the products are: Packaging for which over 77.77% retailers have shown their
discomfort, where as 54% retailers are demotivated as the company do not give any Gifts
to the retailers and lastly is the timely service by the stockiest which 44.44% retailers
have problems as there is no consistent service on timely delivery of the products.
The stockiest overall service level given to retailers, on the basis of correct information‘s
regarding product, prices, content is fluctuating where as many retailers are satisfied with
some stockiest but are not satisfied and have given very poor ranking to others.
It is been seen that though all types of customers visits the retail store for purchases, the
painters play an crucial role in final purchases, directly or indirectly about 88% sales
happens through them
Though applications of these products requires skill but majority of them are uneducated
but are experienced thus give more importance on those company products which gives
them higher commission or gifts.
It is been observed that many retailers face problems in packaging of the products,
mainly n 1kg and 5 kg packing where over 67% have complained about its packing and
expects immediate actions to be taken for its improvements
59. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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Over 88% retailers also expect hand bags or covers along with products delivered for 1kg
and 5kg bags. As many ask for separate covers to carry it, thus adds up separate cost to
the retailers.
As an part of the promotion and to attract painters towards the product the company gives
tokens in the bags which have to be redeemed in the retail stores, it is seen that only 65%
of retailers are aware in 5kg packing and over 80% are aware in 20kg packing. It is vital
because if they are not aware than they would not pass on to the painters and the main
concept of introducing it will be lost and painters would not be motivated to buy.
As company carries out many promotional activities retailers also expected some sort of
promoting brand, over 75% retailers suggested to increase painters training programmes,
73% indicated dealers/retailers meeting where as all 100% retailers have shown keen
interest on retailers scheme where about 54% have suggested to promote the brand
separately in televisions, newspapers and usage of hoardings.
The company works centralized when in concerns of replacements or reimbursement
issues which delays an single transaction for months to the retailers who in turn borne all
the losses thus the shelf space for the product is very limited and they purchase for an
short duration and limited compared to competitor‘s
The company trades in two forms: Trade and non-trade. Thus those who use non-
trade(purchase in large quantities for final consumption or use in buildings etc)
sometimes issue the surplus to the market in cheap prices thus has lead to change in
perception and image on the minds of the retailers.
The company‘s image has also changed as the company was not fully able to deliver to
all the promises made to the retailers, the main impact is of retailers scheme which has
made many retailers negative about the product and many have stopped selling their
products in retail stores
It is been seen that the services delivered by the stockiest vary from one other, where
some stockiest are considered excellent others are very poor in handling their areas.
The company in other hand builds its brand by demonstrating it. The sales representatives
or the officers visits sites, projects or buildings apply the sample about the products, give
the technical benefits about the product, show practically in their own sites its benefits,
thus an image builds and this also helps in word-of-mouth promotions about the product
as well as demand is been created from the users directly.
As the company consistently do painter‘s meet there is an goodwill about the product, but
painters are not very much interested to purchase if there is no pressure from their client‘s
side because though the company provide painters token to these painters it is far less
than other companies. for example : For 20kg bags painters get 45rs token for using
‗Birla-putty‘ J.k. cement provides 60rs token where as Asian paints provide 55rs in
60. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 60
branded competitor‘s and in local for example : Lenova putty(Conventional putty/local
putty) gives more than 100rs as token to painters so do Rado putty.
The dealer‘s/Retailer‘s are not very much interested in dealing with company products as
margins are very less compared to other companies. Majority of them try to push local
putty as customers are not much aware about differences in quality and dealers higher
margins compared to branded products.
Though there are Sales Representatives assigned to each area and they do constantly
visiting retailers and checking competitors movements but as they are not empowered
with proper powers to take actions couldn‘t solve any problem immediately and as they
act as an ‗Brand‘ as they represent the company their inability is directly viewed as
company‘s inability.
The market as an whole is very price sensitive, though they give considerable amount of
importance to quality and name, majority of those purchases based on the final prices of
the product as these purchases are done by either builders or contractors and they mainly
think of returns or profits(excluding large builders).
The market as an whole has high potentiality because of growth seen in economy,
development etc and there are many areas which is not yet explored (Bangalore alone has
over 5000retailers) of which the company has reach of up to 3000retailers.
Though there are opportunities for growth there is also considerable amount of threat as
potential competitor‘s (Nationally or International) may enter the market and cause
considerable amount of damage.
SUGGESTIONS/RECOMMENDATIONS
Though the company has appointed stockiest‘ based on their credentials, the company
should also control their activities as many stockiest are below in providing service. As
they represent the company to the retailers their business practices also affects the
company reputation and goodwill
The Sales Representatives appointed by the company should be empowered in minor
decision making. This will also ensure quality services and control over the operations as
there is no direct service from the company
From the survey conducted its clear that though consumers/customers know the brand
‗Birla‘ many are not aware of company‘s products like ‗Birla wall-care putty‘, thus the
company should go for advertising in print media, hoardings or even television
advertising and position the ‗Birla White‘ brand image on the consumers side . This
would enable to be more competitive.
61. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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The schemes provided by the company to the retailers must be competitive and should be
made based on the trend. As company presently provides retailers scheme varied by slabs
at 8-12 rupees per bag compared to J.k. cement which gives 30 rupees per bag, this
makes company‘s schemes less attractive
As the complaint handling regarding damages, packaging problems etc has an lengthy
process which takes months to be resolved should be shortened which will create an trust
on part of the retailers towards the product and would motivate the retailer to keep more
stock and make more sales ( The shelf-space compared to competitor‘s is low compared
to competitor‘s which would create an blockage if the competition in the market
increases
The retailers should be given with check list to know – at what prices they should receive
the materials from the stockiest and at what prices they should sell, thus would improve
the par of service and have standardization on prices. As presently different retailers are
been delivered at different prices this has increased the dissatisfaction towards the
company and decreased the image of the company in total.
As painter‘s are an crucial element in the entire cycle of sales of the products as they
influence directly or indirectly over 80% of total sales in the market. Schemes should be
made to make them attracted towards the brand, though presently tokens which are been
given in ‗Birla wall-care putty‘ on 5kg and 20 kg‘ packing it should also be extended to
40kg packing and such token system should be moved to other slow moving products
such as ‗Textura‘, ‗Level-plast‘ etc thus would contribute for total sales
The painter‘s along with tokens should also be given hand-gloves, t-shirts etc. As using
some of the products of the company such as Birla wall-care putty for example is proved
to be creating some reactions on their hands thus making them avoid the brand, thus
giving gloves, t-shirts etc would on one side act as an promotional activity on the other
side creates an goodwill on the minds of the painters as the company ‗cares‘.
Along with promotional activities such as dealers meet, painter‘s meet the company
should give equal importance for architects meet, engineers meet, builders meet , this is
where the company‘s products can be given more value and developing an image and
create an superior value as these play an crucial role in the entire market.
The company should categorize different retailers differently. Those performing higher
sales must be given more schemes thus making them motivated to carry on as well as
increase the sales, thus this can make company clearly areas where sales are high or low
62. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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which will also enable the company to develop strategies‘ and know where more
attention should be given and where moderate.
The company should develop an different strategy to cater to rural segment. As is seen
that performance of the company in rural areas are less and is been capitalized by
conventional (local) putty products. As this segment has lack of awareness, product
information and their benefits requires different marketing strategies to capture the
market. As this is an upcoming market more emphasis should be on projects thus builders
meet, architects meet, dealers meet should be given more importance and this would give
an platform to launch successfully and to establish demand for the products
63. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 63
CONCLUSION
As the topic of the study is ‗Acceptance of Birla wall-care putty in Retail segment‘ and the
study‘s main objective has been satisfied as there is ample acceptance for the product ‗Birla
wall-care putty‘ and all other brands of the organization and also enjoys higher market share of
over 60% market share.
The study, highlighted on all the components and has understood of future opportunities,
possible threats, potential market which could be captured as well as major problems which
requires certain attention.
Though Birla wall-care has well established itself as an major brand and as good market share
and also higher sales it needs to forecast its future operations too, as though its sales is higher
from that of its competitors but its shelf space is very low compared to competitors. The
company should also analyze low shelf space because of ‗Trust on the brand‘ is getting lower
because of very long problem rectification process carried by the company towards retailers have
made them defensive and weakened an area for competitor to exploit or capture the market.
Problems vary from replacement of damaged bags, hardening of white cement, quality concerns
on packaging or retailers scheme which has to rectified to the earliest.
The company on the other side carries out effective promotional activities which gives faster
results of the performance or promotions. It arranges painters meet not only to build relationships
or attract painters but also provides product knowledge, application information‘s etc thus makes
them more aware about the product and develops goodwill of the company. It also does sampling
in buildings, apartments etc and gives practical information‘s by doing an demo to the builders
and shows the company‘s beliefs towards its brands. Thus these to name a few give the company
an upper edge to promote and build its brand effectively.
ANNEXTURE
ENVIRNOMENT CLEARENCE LETTER
64. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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65. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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66. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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67. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
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(Rs. in crore) FY 10 FY 09 FY 08 FY 07 FY 06
Income
Gross sales 8841.79 12097.37 11551.56 9572.71 7638.41
Less: excise duty 669.68 1268.66 1336.51 1,001.00 985.80
Net sales 8172.11 10828.01 10215.05 8571.71 6652.61
Interest and dividend income 223.7 159.04 165.77 113.27 67.53
Other income 152.06 191.41 212.07 168.49 152.41
Increase / (decrease) in stocks -10.98 33.54 130.22 -16.62 -43.48
8536.89 11212.70 10723.11 8836.85 6829.07
Expenditure
Raw materials consumed 2168.07 3085.08 2828.25 2219.14 1822.69
Manufacturing expenses 1700.26 2731.69 2202.47 1841.19 1580.34
Purchases of finished and other products 30.91 65.94 97.40 321.16 240.15
Payments to and provisions for employees 480.93 600.39 550.07 458.51 407.64
Selling, distribution, administration and other
expenses
1195.08 1928.55 1,696.79 1,414.37 1,181.33
Interest 120.39 139.67 107.00 111.84 103.38
Depreciation and amortization 351.14 456.97 353.27 317.91 291.64
6046.78 9008.29 7,835.25 6,684.12 5,627.17
Less: self consumption 10.67 43.43 76.36 36.53 -
6036.11 8964.86 7,758.89 6,647.59 5,627.17
Profit before tax and exceptional items 2500.78 2247.84 2,964.22 2,189.26 1,201.90
Exceptional items - - 45.68 37.10 4.13
Profit before tax from ordinary activities 2500.78 2247.84 3,009.90 2,226.36 1,206.03
Provision for current tax -666.40 -329.40 -940.26 -682.15 -369.82
Deferred tax -103.65 -257.50 -9.62 1.83 27.00
Fringe benefit tax - -12.98 -12.45 -10.23 -
Write back of Excess for Tax/Income Tax
Refund Related To Earlier Years (Net)
25.30 - - - -
Profit after tax from ordinary activities 1756.03 1647.96 2,047.57 1,535.81 863.21
Extra ordinary items:
Profit on transfer of textile units at Bhiwani - - 4.76 - -
Profit on sale of shares of a subsidiary company - - 180.27 - -
Profit on Sale of Sponge Iron Unit 336.07 -
68. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 68
Profit after tax 2092.10 1647.96 2,232.60 1,535.81 863.21
Debenture redemption reserve no longer
required
5.00 - 82.92 38.56 8.62
Investment allowance reserve no longer
required
- - - 0.05 0.25
Balance brought forward from previous year 2180.97 1064.41 965.33 878.37 815.35
Profit available for appropriation 4278.07 2712.37 3,280.85 2,452.79 1,687.43
Appropriations:
Debenture Redemption Reserve - 15.00 - - -
Interim dividend - - 252.10 -
Proposed dividend 275.05 275.02 275.02 - 183.35
Corporate dividend tax 33.95 41.38 41.42 35.36 25.71
General reserve 1750.00 200.00 1,900.00 1,200.00 600.00
Balance carried to balance sheet 2219.07 2180.97 1,064.41 965.33 878.37
4278.07 2712.37 3,280.85 2,452.79 1,687.43
Basic earnings per share before extra
ordinary items (in Rs.)
191.51 179.73 223.32 167.50 94.14
Diluted earnings per share before extra
ordinary items (in Rs.)
191.44 179.73 223.24 167.50 94.14
Basic earnings per share after extra ordinary
items (in Rs.)
228.16 179.73 243.49 167.50 94.14
Diluted earnings per share after extra
ordinary items (in Rs.)
228.08 179.73 243.42 167.50 94.14
69. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 69
(Rs. in crore) FY 10 FY 09 FY 08 FY 07 FY 06
Sources of funds
Shareholders' funds
Share capital 91.70 91.69 91.69 91.69 91.69
Employee stock options outstanding 9.51 10.45 4.90 - -
Reserves and surplus 7044.16 9,375.44 8,044.12 6,138.35 4,890.39
7145.37 9,477.58 8,140.71 6,230.04 4,982.08
Loan funds
Secured loans 764.94 2,205.00 2,350.40 2,291.00 1,386.12
Unsecured loans 272.68 1,189.95 851.47 660.56 593.55
1037.62 3,394.95 3,201.87 2,951.56 1,979.67
Deferred tax liabilities 252.16 864.37 606.87 582.55 584.38
Total 8435.15 13,736.90 11,949.45 9,764.15 7,546.13
Application of funds
Fixed assets
Gross block 3102.16 11,060.82 7,588.40 6,770.97 6,114.12
Less: depreciation and amortization 1316.10 3,972.54 3,564.89 3,380.53 3,109.49
Net block 1786.06 7,088.28 4,023.51 3,390.44 3,004.63
Capital work-in-progress 42.98 1,218.64 3,026.31 1,192.35 293.64
1829.04 8,306.92 7,049.82 4,582.79 3,298.27
Fixed assets held for disposal - 0.85 4.14 14.33 12.76
Investments 6324.79 4,609.10 4,080.79 4,274.70 3,481.71
Current assets, loans and advances
Interest accrued on investments 0.95 0.48 0.70 0.70 1.46
Inventories 417.24 1,378.24 978.44 824.14 750.73
Sundry debtors 345.01 559.93 711.98 576.48 413.45
Cash and bank balances 15.92 113.38 127.47 116.38 155.58
Loans and advances 385.12 1,045.81 1,167.01 824.69 705.54
1164.24 3,097.84 2,985.60 2,342.39 2,026.76
Less: current liabilities and provisions
Liabilities 302.37 1,686.93 1,603.91 1,266.86 969.15
Provisions 580.55 590.88 566.99 183.20 304.22
882.92 2277.81 2,170.90 1,450.06 1,273.37
Net current assets 281.32 820.03 814.70 892.33 753.39
70. ―Acceptance of Birla Wall-Care putty in Retail Segment‖
Alva’s Institute of Engineering & Technology Page 70
Total 8435.15 13,736.90 11,949.45 9,764.15 7,546.13
INCOME STATEMENT
31-Mar-
10(12)
31-Mar-
09(12)
31-Mar-
08(12)
Profit / Loss A/C Rs mn %OI Rs mn %OI Rs mn %OI
Net Sales (OI) 81938.90 100.00 108589.00 100.00 103192.60 100.00
Material Cost 25017.70 30.53 36040.10 33.19 33110.90 32.09
Increase Decrease Inventories 418.90 0.51 324.00 0.30 -328.20 -0.32
Personnel Expenses 4809.30 5.87 6003.90 5.53 5500.70 5.33
Manufacturing Expenses 13558.90 16.55 21693.30 19.98 17196.30 16.66
Gross Profit 38134.10 46.54 44527.70 41.01 47712.90 46.24
Administration Selling and
Distribution Expenses
11950.80 14.59 19285.50 17.76 16967.90 16.44
EBITDA 26183.30 31.95 25242.20 23.25 30745.00 29.79
Depreciation Depletion and
Amortisation
3511.40 4.29 4569.70 4.21 3532.70 3.42
EBIT 22671.90 27.67 20672.50 19.04 27212.30 26.37
Interest Expense 1203.90 1.47 1396.70 1.29 1070.00 1.04
Other Income 3589.80 4.38 3202.60 2.95 3956.20 3.83
Pretax Income 25057.80 30.58 22478.40 20.70 30098.50 29.17
Provision for Tax 7447.50 9.09 5998.80 5.52 9623.30 9.33
Extra Ordinary and Prior Period
Items Net
3360.70 4.10 0.00 0.00 1850.80 1.79
Net Profit 20971.00 25.59 16479.60 15.18 22326.00 21.64
Adjusted Net Profit 17610.30 21.49 16479.60 15.18 20475.70 19.84
Dividend - Preference 0.00 0.00 0.00 0.00 0.00 0.00
Dividend - Equity 2750.50 3.36 2750.20 2.53 2750.20 2.67